NETELLER Announces Service Changes to Canadian and Turkish Market

[StarnetGypsy]

Monday, 26 March 2007 – The NETELLER Plc Group (“NETELLER” or the “Group”) (LSE: NLR), the leading global independent online money transfer business, today announced several significant changes to its services in a number of markets.

The Group continually assesses the risk profile and status of the markets its serves. 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 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 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.

Reduced Service to 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.

· 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.

Reduced Service to Turkey

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· Withdrawal of local bank funding options: Local bank deposit options for Turkey-resident customers were withdrawn on Friday 9 March 2007.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

Group Business Impact

The Canadian business of the NETELLER Group would likely have contributed significantly to the Group’s revenue and profitability during 2007 and the loss of this business is now likely to have a material negative impact on the Group’s 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.

The Group does not anticipate making further significant reductions 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.

Other Updates

The Group’s 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.

The Company is working towards the finalisation of its audited annual results for the year ended 31 December 2006 and will announce the date on which these will be published to the market in due course.

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.

Further information is available on the Group’s website in the form of updated FAQs at

NETELLER Group: Media FAQs.

[StarnetGypsy]

You Canucks best make them withdrawals PDQ.

And it looks like you wont be able to have a sportsbook/pokerroom deposit into your account to withdraw from them, effective now.

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

[Juice]

News Flash. Neteller announces its going out of buisness. It wont be long.

[he scores]

Originally Posted by Juice

News Flash. Neteller announces its going out of buisness. It wont be long.

Does Solidpay accept Canadians? Anyone know?

[he scores]

I'm not sure I trust Neteller. Do you think I should leave anything in Neteller or even attempt an EFT withdrawal from them?

[he scores]

Originally Posted by he scores

I'm not sure I trust Neteller. Do you think I should leave anything in Neteller or even attempt an EFT withdrawal from them?

I'm Canadian by the way.

[Uncle B]

Originally Posted by he scores

I'm Canadian by the way.

i wouldn't leave a cent there, regardless of where i lived.


if i had to make a transfer through them, i'd try to make it in/out of their hands as quickly as possible.

[The Major]

get your money out.

[clevfan]

Mon Mar 26, 2007 9:13 AM BST

NETeller drops Canada, Turkey online gaming work



LONDON, March 26 (Reuters) - British online payment processor NETeller <NLR.L> said it would no longer process online gaming transfers from Canadian or Turkish residents after the two countries tightened gambling regulations.

"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 on Monday.

"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 added that pulling out of Canada would have a material negative impact on its results for the full year ending 31 December 2007.

Analysts estimate that Canadian customers were bringing in around 30 percent of the revenues from its remaining non-U.S. operations.

The move is the latest blow to the firm, which abandoned 65 percent of its business in January when it quit the United States after authorities there arrested its two founders.

NETeller added that it still did not know when it would be able to release $55 million of customers money seized by U.S. prosecutors in February as part of the crackdown on online gaming.

Last week the firm, whose shares are currently suspended as a result of the U.S. problems, said it would outline its plans to pay back customers within 75 days. (Additional reporting by Mark Potter)

[StarnetGypsy]

Originally Posted by he scores

I'm not sure I trust Neteller. Do you think I should leave anything in Neteller or even attempt an EFT withdrawal from them?

Did you take your money out yet?

Sometimes, when there's a run on a bank, the last ones trying to take their money out, can't ...

[beenscrewed]

im gonna cash out mortgage and hope, but my balance is too much to risk on one eft. Anyone have experience cashing in poker rooms using alternative methods, if so which ones and was it painless?

[Highwayman]

Originally Posted by clevfan

Mon Mar 26, 2007 9:13 AM BST

NETeller drops Canada, Turkey online gaming work



LONDON, March 26 (Reuters) - British online payment processor NETeller <NLR.L> said it would no longer process online gaming transfers from Canadian or Turkish residents after the two countries tightened gambling regulations.

"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 on Monday.

"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 added that pulling out of Canada would have a material negative impact on its results for the full year ending 31 December 2007.

Analysts estimate that Canadian customers were bringing in around 30 percent of the revenues from its remaining non-U.S. operations.

The move is the latest blow to the firm, which abandoned 65 percent of its business in January when it quit the United States after authorities there arrested its two founders.

NETeller added that it still did not know when it would be able to release $55 million of customers money seized by U.S. prosecutors in February as part of the crackdown on online gaming.

Last week the firm, whose shares are currently suspended as a result of the U.S. problems, said it would outline its plans to pay back customers within 75 days. (Additional reporting by Mark Potter)

Analysts estimate that Canadian customers were bringing in around 30 percent of the revenues from its remaining non-U.S. operations.

The move is the latest blow to the firm, which abandoned 65 percent of its business in January when it quit the United States after authorities there arrested its two founders.

65% (American) + ~30% (Canadian) = 95% abandonment of revenues!? OUCH!

That leaves ~5% which likely includes gaming merchants of the Caribbean as their source of remaining revenue.

Could be wrong but I am not aware of any business which can remain solvent by voluntarily giving up +95% of its revenues, while establishing such a massive mistrust to their shareholders who are locked out of trading and clients whose private information is being shared with authorities without authorization while their funds are held hostage.

Will the Asians and Europeans be stupid enough to patronize Neteller based upon their recent actions?

Will Americans continue to participate in offshore gaming markets where financial processors are being persecuted leaving their funds and personal information at risk to Government seizure?

Can Neteller remain solvent long enough to return their clients funds currently held hostage absent of Government interference/intervention?

One may get the impression that the UIGEA effect upon North American offshore gaming-markets has already been more financially crippling than that from any terrorist organization bring to question who and where the real terrorists of our world reside...not to mention the seemingly criminal manner by which they launched such devastating legislation.




.

[he scores]

Originally Posted by StarnetGypsy

Did you take your money out yet?

Sometimes, when there's a run on a bank, the last ones trying to take their money out, can't ...

I still have couple of K in EFT pending mode from Neteller to my bank account before their f***ing announcment today. F*** I'm worried as hell. Might have to join Americans in their class action lawsuit against Neteller if they screw with me.

Still have a couple of K with some merchants. Trust them more than Neteller.

[drunkguy]

Originally Posted by Highwayman

Could be wrong but I am not aware of any business which can remain solvent by voluntarily giving up +95% of its revenues, while establishing such a massive mistrust to their shareholders who are locked out of trading and clients whose private information is being shared with authorities without authorization while their funds are held hostage.

pretty scary, isn't it?

[Dominator]

Neteller is done.. Can't be many customers left, since they never really been that big in Europe anyway..

[drunkguy]

i'm surprised the turkish aren't making more of a stink over this

[Highwayman]

Originally Posted by drunkguy

pretty scary, isn't it?

Seems inevitable that there will be numerous Caribbean based offshore gaming entities which will simply disappear in the not too distant future…along with their client’s funds.

Escalading operating costs, legal liabilities, delays and risks associated with financial processing along with dramatic reductions in available liquidity and a shrinking customer base unfortunately spells disaster for many Caribbean gaming entities as well as those depending upon them.



.

[BettingProphets]

unfuckingreal

[cecil]

I was a big fan of neteller before all this started. I wouldn't use them now if I lived on the moon...