Casino Neteller Online
 

HOME

CASINOS

REVIEWS

BONUSES

NEWS

PAYOUT %

 

 

 

 

 

 

 

Neteller Goes Cold On Turkey...And Canada!

Isle of Man e-wallet announces new online gambling geographic bans due to "regulatory risks"

Canadian and Turkish online gamblers will have to find alternative e-wallets to process their action following an announcement Monday that the Isle of Man based Neteller third party cash processor is imposing a ban on these regions.

Reuters reports that the British online payment processor will no longer process transfers related to online gambling sites for Canadian or Turkish residents due to regulatory risks.

"Recent actions by regulators, payment processors, and online gaming operators have increased the uncertainty around certain activities related to online gambling in some jurisdictions," the firm said in a statement.

"The risk to the group's ongoing business in Canada and Turkey has increased in the light of such developments. The board has therefore concluded that the group will no longer process transfers related to online gambling sites on behalf of Canada or Turkey resident customers."

Neteller is currently in the throes of negotiations with US Department of Justice officials who arrested two of the e-wallet's founders in January whilst they were on U.S. soil. The subjugation of Neteller is being hailed in enforcement circles as an important success for the application of the Unlawful Internet Gambling Enforcement Act enacted late last year by the US Congress and targeted on disrupting financial channels for online gambling sites.

The company froze all Neteller US accounts, withholding money from many thousands of US players, a situation that persists to this day.

Neteller's press release contains more detailed information, and is likely to be criticised for its short notice to players. It announces:

"The Board of Directors of the company reached a decision, on 25 March 2007, that the risk to the group's ongoing business in Canada and Turkey has increased in the light of such [legal and regulatory] developments. The Board has therefore concluded that the group will no longer process transfers related to online gambling sites on behalf of Canada or Turkey resident customers.

Canada

"Cessation of Canadian transfers to gambling merchants: the group will cease processing online gambling related transactions for Canada-resident customers with effect from 12.01 AM MST Monday 9 April 2007.

"Suspension of InstaCASH transactions: As of today Monday 26 March 2007, at 12:01 AM MST, Canada-resident customers were no longer able to deposit funds using Neteller's instaCASH service either directly or from any online gambling site.

"Non-gambling services continue: Canada-resident customers will continue to be able to use their e-wallet accounts for non-gambling transactions, including peer-to-peer and pre-paid debit transactions. (Editorial comment: it is understood that these represent a very small percentage of Neteller's business.)

Customer funds

"Available customer funds: Customer funds, including those of Canadian residents, are held in a pooled, segregated trust account and will be available for withdrawal by customers, on demand. Canadian customers continue to be able to use their e-wallet accounts for non-gambling transactions.

Turkey excluded

"In light of recent legislation passed in Turkey on 28 February 2007, which prohibits certain forms of online gambling to be offered by any "unauthorised" domestic or foreign company to citizens in Turkey, Neteller has decided to implement a voluntary phased withdrawal of the payment services related to online gambling that it offers customers to the Turkish market.

"Withdrawal of local bank funding options: Local bank deposit options for Turkey-resident customers were withdrawn on Friday 9 March 2007.

"Cessation of Turkish transfers to and from online gambling merchants: The Group has ceased processing online gambling related transactions for Turkey-resident customers with effect from 6.01 AM GMT Monday 26 March 2007.

"Non-gambling related services continue: Turkey-resident customers will be able to continue to use their Neteller e-wallet account for any non-gambling related money transfers and withdrawals. Customers located in other parts of the world are not affected by this change, and Neteller continues to service these customers in the normal manner."

Financial impact and staff situation

Clearly anticipating some disappointing financial news for investors, Neteller, who's shares remain suspended, says that the Canadian business of the Neteller Group would likely have contributed significantly to its revenue and profitability during 2007 and the loss of this business is now likely to have a material negative impact on group results for the full year ending 31 December 2007.

"The Turkish business of the Group does not represent a material proportion of the Group's overall customer base, revenue or profitability," it adds.

The e-wallet, which has already made significant staff reductions as a result of the US situation, does not anticipate making further "significant" cuts in staff as a result of these service changes as the Board believes that its Calgary-based operations are appropriately sized to handle the remaining non-North American business of the Group.

"The Group will continue to focus on the growth markets of Europe and Asia," the announcement says, but its shares will continue to be suspended from trading on AIM "...in view of the continuing uncertainties the Group faces. Further announcements will be made as appropriate."

Clarification on US player funds

The announcement ends rather ominously with a clarification of an earlier release US players that it would soon announce a plan for the payout of their frozen funds:

"The company would, in light of recent press comment concerning its announcement of 21 March 2007, like to make clear that the 75 day period referred to in that announcement was for agreement of a plan of distribution with the United States Attorney's Office. It would remain to be determined, as part of that plan, the precise timing of the distribution of funds to US customers." This is cold comfort to US players, who's monies have been frozen since January.

Posted: March 27, 2007
 


    SITE MAP | What is NETELLER? | About NETELLER | Online Gambling Resources | 1 | 2 | 3 | 4 |
NETELLER is an online payment processor

Listings of casinos that accept NETELLER as a payment processor