Neteller Update...

[Sniper]

This morning Neteller released their 3rd Qtr financial information , their press release contained the following statement from Ron Martin, President & CEO (emphasis mine)...

“NETELLER has performed well during the third quarter of 2006, continuing to grow its business both geographically and extend its reach to new customers and merchants. However, the impact of the recently passed Unlawful Internet Gambling Enforcement Act in the US is likely to change the future direction and nature of our business fundamentally. While we have continued to see strong sign ups and fees during October, NETELLER is constantly re-examining its position with regard to the US market and its provision of services to that market is currently under review. As previously stated, NETELLER, a company registered outside the US, will comply with the Act and its related regulations as if it were subject to the Act’s jurisdiction. We will keep our shareholders, merchants, customers and employees informed of any developments during this challenging period.”

This is not really new news to those closely following other statements, but it does further reinforce that Neteller is likely to pull out of the US market in the not too distant future.

[MagCFO]

yeah, I'm not sure why people think Neteller is going to be around. 2 problems, 1) it would be very easy for the US Government to demand banks not do business with neteller, and 2) THEY HAVE SAID THEY WILL COMPLY WITH THE LAW.

[4_2_it]

I guess I should use my points to enter those drawings soon.

[PoorLawyer]

[ QUOTE ]
NETELLER is constantly re-examining its position with regard to the US market and its provision of services to that market is currently under review.[/b]

it does further reinforce that Neteller is likely to pull out of the US market in the not too distant future.

[/ QUOTE ]


under review sounds to me like they are keeping their options open and not necessarily pulling out soon.

[Beavis68]

I woudnt be surprised if they dump Barclays and find a bank in Antigua or some such place and relocate.

[I_C_ALL]

Too optimistic. If they are disclosing this to investors, its basically a heads up. I'm not in the "sky is falling" camp... Just in the prudent, make other arrangements in case of worst case scenario camp.

My opinion, they would not post negative "possible" news to investors after what happened to poker stocks' shares after pulling out of the U.S. unless it was a serious consideration. Probably not a done deal, but I'm leaning closer to pulling out than not. ;-) Have a backup.

[scscoach]

Suggestions for a backup?

[MiltonFriedman]

You over-estimate the abilities and capacities of the Banks in Antigua.

A more likely scenario is a spin-off of the US facing business, operated through a Banking facility in the Mediterranean ..... Ironic how this "anti-terrorism" Act is driving cashflows closer to a Middle Eastern sphere of influence.

[Jerry D]

Will they let me use Neteller for the gaming sites that are ALLOWED under the legislation? For instance why wouldn't Neteller (or Firepay which left the US) let me use them to fund Horse Racing, Lotteries or Fantasy Sports? I can legally bet on these in the US so why won't Neteller (or Firepay) let me use them to fund these gaming sites that are allowed under the legislation?

[I_C_ALL]

Foreign bank. Search my previous posts. There was a thread on this I referred to. Someone with a foreign bank account responded to me. I remember there being some "problem" using a canadian bank, but can't remember where I read that. I could be wrong, but the islands are closer to me anyway. As long as you disclose to the treasury and report taxes, there shouldn't be a problem.

Of course, the USA could come after you if they deem you are gambling and decide to prosecute, but I believe someone else stated your tax return could not be used against you due to self incrimination and there has not been any attempts at the government prosecuting "Joe Gambler". I could be wrong with everything, so do your own research...

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