You will find it very hard to find a sports book that accepts paypal as a form of deposit method.
As Paypal will only work with very good sports bet companies you really only have two options.
You can bet online using Paypal at Ladbrokes Sports Book www.ladbrookes.com
or
Bwin accepts pay pal as a way to fund your player account www.bwin.com
The major thing to know is that you will get great service from these two as after all they are trusted by Pay Pal.