Wednesday, January 24, 2007
Prosecution of payment company to enforce online gaming ban

The US’ authorities have taken another step towards enforcing the recently adopted anti-online gaming law. After instructing national credit card companies Mastercard and VISA to stop taking transactions between gambling merchants and US citizen (Amex and Diners already had a ban on online transactions for years), the authorities are now looking to stop other ways of electronic payments for online gambling services.

Earlier this month, two executives of e-purse company Neteller were arrested on charges of money laundering and facilitating online gaming payments from US citizen. Both executives are now released on multi-million dollar bails and prepare their defense.

Neteller, a company established only 2000, is believed to transfer over 7 billions of dollars a year on gambling transactions between bettors and off-shore online casinos. It totals 80 percent of worldwide payment services in online gambling.

The market value of the company, based on the Isle of Man in the UK and listed on the London Stock Exchange, has lost 65% since the introduction of the new US online gaming ban last September and the arrests will most likely hit the company’s market value even more.