Neteller, which provides gambling accounts to online customers, had been growing in popularity as credit card companies became increasingly stringent about accepting payments to internet gambling sites. The company has announced, however, that, as a result of restrictive legislation and uncertainties about regulations, it will now focus on its operations in Europe and Asia.
Although both of the accused co-founders no longer work for the company, they were arrested and charged in the US on the grounds that they had knowingly established a company that facilitates illegal gambling and has been siphoning off billions of dollars of illegal gambling proceeds into overseas gambling operations.
Although Neteller acknowledged the arrests of its co-founders, who both now face 20 years in jail, the company commented that its decision to cease US operations reflects the culmination of a series of deliberations and steps the group has taken since the passing of the UIGEA (Unlawful Internet Gambling Enforcement Act) in October 2006.
The group also commented that, while it had been successful in the US, which it estimated accounted for approximately 65% of the company’s total revenues, its prosperity had declined in recent months due to the US authorities’ crackdown on online gambling, which culminated in the passing of the UIGEA.
Since this bill was introduced, a number of UK online gambling outfits, including PartyGaming and Sportingbet, have been forced to cease their US operations.
Eight US states have laws prohibiting internet gambling and the Associated Press has quoted Mark Mershon, assistant director of the FBI, as saying that the multibillion-dollar online gambling industry is a colossal criminal enterprise masquerading as legitimate business.
