PayPal got out of the sports betting game under legal duress about the time that Ebay bought them. If I'm not mistaken they've dipped their toe back in gambling but only at European facing books. That notwithstanding, you're not going to find a US facing book that accepts PayPal.
Here's the story about PayPal getting out of the gambling biz--at least for US players.
usatoday30.usatoday.com/.../2002-08-21-paypal-gambling_x.htm