NETeller Exits U.S. Market

Writing here yesterday of the arrest of the founders of Internet-gambling-payment processing company NETeller, I asked what would happen to the company. NETeller announced that it is dropping its U.S. Internet gambling services, “wiping out over 65 percent of its business” according to this Reuters story. NETeller’s explosive growth slowed after the U.S. passed the Unlawful Internet Gambling Enforcement Act (UIGEA) last October 13. NETeller issued a statement saying its “withdrawal from the U.S. market . . . is the culmination of months of careful planning” spurred by concerns about the regulatory environment in the U.S. See here and here for posts about the UIGEA and its effect on the market.
My understanding is that NETeller maintains accounts for Internet gamblers. Has NETeller started returning that money to its owners? Does anyone know?

2 Replies to “NETeller Exits U.S. Market”

  1. Daniel K

    I’m not too sure about ATM online and eWALLET online, but coming from an online poker veteran, I’ve had my share of experience with cashing into poker sites through websites such as Netteller and ePassporte (which was just as big as Netteller, if not bigger). I noticed Netteller declining US transactions a while ago, and details on the new law were posted as the reasoning. Click 2 Pay, however, is also not accepting US transfers to online gaming sites. I know it is listed as a source of deposit but towards the last few steps it does not work. So I’m not too sure on how big of a market share they can attain.

    I knew it was only a matter of time before these online poker sites would lose US business, it just sucks that it ended so soon. What I don’t understand is why the actual poker sites such as Bodog and Party Poker are still advertising in the US. I believe Western Union is going to be the next big supplier for these poker sites.

  2. akshaytandon

    Its quite simple actually. Netteller has closed all of the accounts of members that have no pending transactions (Credit or Debit). And the accounts of those members that do have pending transactions, Neteller is urging them to either withdraw their funds or give Neteller whatever money they owe them.

    Poker sites and gambling sites have already started to send out emails to members telling them about alternative ways to deposit money. ATM online, eWALLET online, and Click 2 Pay are just some of the new players that are hoping to capture the huge market that Neteller has left behind.

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