I wasn't sure if you meant to ask if there are affiliate programs who pay commissions through PayPal or if you were wondering about gaming sites that accept PayPal deposits/withdrawals. Here is information for both:
Affiliate Programs paying commissions with PayPal
Three GPWA sponsor affiliate programs offer PayPal as an option for receiving affiliate commissions:
Euro Partners
BetFred
Income Access
GPWA offers an affiliate program search tool to compare sponsor brands based on a number of criteria. One of the criteria is the ewallets available for processing commission payments. (Other options include countries they accept players from, site language, language the affiliate managers speak, types of games offered, software used, and some additional choices.)
Current results from a search for PayPal as a method of paying commissions are available
here.
Gaming Sites accepting PayPal
Almost all skill gaming sites accept PayPal. Based on traffic to the sites that offer it as a payment option, PayPal actually ranks third in popularity of gaming payment processors, below Visa and MasterCard. Of course, this is based on the fact that the largest skill-gaming sites are attracting many more site visitors than the largest casinos, so even though it is more total exposure is it a smaller number of sites (55 gaming sites in total accepting PayPal according to current Casino City payment processor data).
But, as Rick points out, PayPal has a reputation for being very serious in protecting their logo and brand name to avoid confusion regarding their no gambling policy. The exception is really simply that betting on games of skill is not excluded by that policy.