The U.S. online gaming community received a rude shock when NETeller publicized, referring to the U.S. legislative changes and events that have taken place in the recent past, it has decided to stop its U.S. Internet Gambling Services on Jan 18.
It is believed that this decision could wipe out 65% of its business. Some attribute this decision to the fact that two of the group's founders were arrested this week. Stephen Lawrence and John Lefebvre have been charged with managing billions of dollars in unlawful gambling earnings.
NETeller has told that since the U.S. has passed out its legislation, its growth has seen a downward trend. NETeller has always taken a ‘wait and see’ stance, but it suspended its shares as soon as its two founders were arrested on Tuesday, Jan 16.
"Today's withdrawal from the U.S. market by NETeller is the culmination of months of careful planning," NETeller said in its announcement on Thursday, Jan 18. The U.S. prosecutors said NETeller processed more than $7.3 billion in transactions in 2005 and more than 95% of its revenue from transfers implicated Internet gambling.
NETeller has said that its U.S. members are not required to close their accounts and can still use for non-gambling activities. No charges have been levied against NETeller and not letting U.S. residents to open new accounts.
Non-U.S. residents can avail their services for all regular products and services. This could have a major effect on the other companies, which operate in the same fashion. Online Poker can suffer unless an effective alternative approach is explored.
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