Neteller down $200... over 50% (YAHOO BAD QUOTE, NEVERMIND)

[Uglyowl]

I searched real quick, but am at work. Anyone have time to dig into this?

Just dropped $125 in the past hour.. news?

[Overdrive]

From Forbes online: 7/19/06

"Certainly, the House bill, should it become law, would be a boon to Paypal, because it essentially eliminates all other online payment service competitiors from the U.S. market. That would include Neteller, a U.K. based online payment service, whose stock was down 15% on the London Stock exchange...and Firepay, owned by FireOneGroup whose stock was off nearly 20 percent...Both of these companies would have to give up their online gaming site customers if they wanted to do business in the US."

So the thinking seems to be that if the legislation is passed Netteller and Firepay will no longer be able to make any transfers to any gaming sites.

[Nate tha\\\' Great]

I don't know. But, other gaming stocks have done quite well today.

[Uglyowl]

Yahoo! Finance error on this guy, they temporarily had a bad quote out there.

[Hince]

[ QUOTE ]
From Forbes online: 7/19/06

"Certainly, the House bill, should it become law, would be a boon to Paypal, because it essentially eliminates all other online payment service competitiors from the U.S. market. That would include Neteller, a U.K. based online payment service, whose stock was down 15% on the London Stock exchange...and Firepay, owned by FireOneGroup whose stock was off nearly 20 percent...Both of these companies would have to give up their online gaming site customers if they wanted to do business in the US."

So the thinking seems to be that if the legislation is passed Netteller and Firepay will no longer be able to make any transfers to any gaming sites.

[/ QUOTE ]

I don't understand this... Poker money transfers are legal in other countries and Netteller can be used for non-gambling related transfers, ect.

Is this saying that if you have an international company, you have to abide US laws with your non-US clients? In other words, is Neteller expected to cancel Canadian or UK poker accounts in order to do business in the US??

[agencia1]

[ QUOTE ]
From Forbes online: 7/19/06

"Certainly, the House bill, should it become law, would be a boon to Paypal, because it essentially eliminates all other online payment service competitiors from the U.S. market. That would include Neteller, a U.K. based online payment service, whose stock was down 15% on the London Stock exchange...and Firepay, owned by FireOneGroup whose stock was off nearly 20 percent...Both of these companies would have to give up their online gaming site customers if they wanted to do business in the US."

So the thinking seems to be that if the legislation is passed Netteller and Firepay will no longer be able to make any transfers to any gaming sites.

[/ QUOTE ]

so how will they be able to prevent these companies (firepay, neteller) from allowing transfers? if that happens that will kill off a LOt of soft money on the tables. im worried.

[meleader2]

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[ QUOTE ]
From Forbes online: 7/19/06

"Certainly, the House bill, should it become law, would be a boon to Paypal, because it essentially eliminates all other online payment service competitiors from the U.S. market. That would include Neteller, a U.K. based online payment service, whose stock was down 15% on the London Stock exchange...and Firepay, owned by FireOneGroup whose stock was off nearly 20 percent...Both of these companies would have to give up their online gaming site customers if they wanted to do business in the US."

So the thinking seems to be that if the legislation is passed Netteller and Firepay will no longer be able to make any transfers to any gaming sites.

[/ QUOTE ]

so how will they be able to prevent these companies (firepay, neteller) from allowing transfers? if that happens that will kill off a LOt of soft money on the tables. im worried.

[/ QUOTE ]


you see, this makes NO SENSE because the bill that the house passed is claiming it doesn't want banks to process crap like wire transfers and checks DIRECTLY from the gaming sites.

HOWEVER, if neteller and firepay are like paypal (WHICH THEY ARE) then the US has no right to deny the bank from processing these payments to your bank account.

THEY ARE JUST TRYING TO SCARE YOU. unfortunetly it is probably scaring the fish.

[Zele]

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HOWEVER, if neteller and firepay are like paypal (WHICH THEY ARE) then the US has no right to deny the bank from processing these payments to your bank account

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This would be nice if it were true, but it's not. Neteller and Firepay are definitely in the crosshairs. This bill will give the feds the right.

[meleader2]

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HOWEVER, if neteller and firepay are like paypal (WHICH THEY ARE) then the US has no right to deny the bank from processing these payments to your bank account

[/ QUOTE ]

This would be nice if it were true, but it's not. Neteller and Firepay are definitely in the crosshairs. This bill will give the feds the right.

[/ QUOTE ]

not everyone uses neteller and firepay for poker business. and these are banks located off US territory, explain to me how this works?

[cowboy.up]

I might be going out on a limb here...but Neteller's primary business is online gambling sites. Thus the US government can lump it in with the 'offenders' and ban ACH transactions and checks from them. Otherwise, Neteller can severe all connections with the online gambling sites, and then I'm sure the US will allow transactions from them again. I remember seeing Neteller listed by name somewhere as being targeted.

[*TT*]

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I don't know. But, other gaming stocks have done quite well today.

[/ QUOTE ]

There was a rumor that BetOnSports had cut a deal with the DOJ driving up casino stocks, obviously that rumor was later found to be false after the session ended because BOS just shut down their operations - Link with the bad news (http://business.timesonline.co.uk/article/0,,9070-2277661,00.html)

TT /images/graemlins/club.gif

[Nate tha\\\' Great]

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I don't know. But, other gaming stocks have done quite well today.

[/ QUOTE ]

There was a rumor that BetOnSports had cut a deal with the DOJ driving up casino stocks, obviously that rumor was later found to be false after the session ended because BOS just shut down their operations - Link with the bad news (http://business.timesonline.co.uk/article/0,,9070-2277661,00.html)

TT /images/graemlins/club.gif

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If you follow what happened a bit more closely:

1. Gaming stocks went way up on rumors that an immediate settlement had been reached with BoS.

2. Gaming stocks went back down to about their previous levels after BoS issued a statement denying that a deal had been reached.

3. Gaming stocks went back up again anyway.

Why exactly #3 happened, I don't know. However, the fact that BoS looks like it's going to be a good boy, go to the corner of the room, and put its dunce cap on probably helps. The last thing a company like PartyGaming wants is a long and drawn out process that keeps this issue in the news, generalizes the issue (as opposed to it being specifically about BoS), potentially expands judicial precedent, and leaves a lot of uncertainty hanging in the air. The mere fact that BoS suspended its website was probably interpreted as helpful by the market.

To reiterate, both the rumor and the denial of the rumor took place while British markets were open today. The news on the WTO broke after market close, which might further help gaming stocks tomorrow.