This makes me angry.
Like most people, I use Paypal (but limit my use to things I cannot purchase any other way). I know how much of a pain in the ass they can be. I didn't, however, expect them to pull this sort of crap...especially not when the raffle is in support of soldiers.
Bad move, Paypal. Bad move. I don't care if you're anti-gun...apparently you're also anti-military. I've seen suggestions that Paypal is just following the laws of California, but that's a load of bullshit. eBay is equally anti-gun, and it makes sense that eBay's politics would filter down to Paypal, since the former owns the latter.
As a sidenote - I had already been debating getting a ticket or two, and this clinches it. I'm glad Paypal won't be making money off these ticket sales...and once payday hits, I'll be picking up a ticket or three.
EDITED TO ADD: apparently, in response to a lot of complaints about Paypal, gunpal now exists for your gun trading needs.