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.

[greg nice]

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

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just used all 5m of mine last week and for month of oct

[4_2_it]

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

[/ QUOTE ]

just used all 5m of mine last week and for month of oct

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Guess I'll wait until November [img]/images/graemlins/grin.gif[/img]

[Suigin406]

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

[/ QUOTE ]

just used all 5m of mine last week and for month of oct

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Guess I'll wait until November [img]/images/graemlins/grin.gif[/img]

[/ QUOTE ]

thx for the heads up...i will too now...

[Hock_]

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THEY HAVE SAID THEY WILL COMPLY WITH THE LAW.

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Nobody knows what THE LAW is going to be or what it's going to require.

So much misinformation . . .

[BluffTHIS!]

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THEY HAVE SAID THEY WILL COMPLY WITH THE LAW.

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Nobody knows what THE LAW is going to be or what it's going to require.

So much misinformation . . .

[/ QUOTE ]


Hock,

Here's the thing to me although this is a non-lawyer's opinion. Either RIGHT NOW THIS VERY MINUTE the law makes Neteller facilitating transactions to the sites remaining in the US market illegal or it does not. It isn't the regs that define what is legal, but how the law can be enforced. So whether or not the regs are effective in carrying out the legal intent of the law or not doesn't matter as far as just the question of legality. Even if Neteller were to exit the US market later, they would still have broken the law right now. Just like a bank robber who stopped robbing banks and later says since he stopped he shouldn't be considered a robber right now. And ditto for the sites still in the US market who might withdraw later.

Neteller has a good reputation for honesty and security, and if they don't want to have their business gutted or undergo the risk of the DoJ having a contrary legal interpreation than them pre or post regs, then they should be seeking to change their coporate domicile to a friendlier place, and probably as well to take themselves private again. Otherwise some other concern will rise up to fill the void and take that business.

[Hock_]

[ QUOTE ]
Here's the thing to me although this is a non-lawyer's opinion. Either RIGHT NOW THIS VERY MINUTE the law makes Neteller facilitating transactions to the sites remaining in the US market illegal or it does not. It isn't the regs that define what is legal, but how the law can be enforced. So whether or not the regs are effective in carrying out the legal intent of the law or not doesn't matter as far as just the question of legality. Even if Neteller were to exit the US market later, they would still have broken the law right now. Just like a bank robber who stopped robbing banks and later says since he stopped he shouldn't be considered a robber right now. And ditto for the sites still in the US market who might withdraw later.

Neteller has a good reputation for honesty and security, and if they don't want to have their business gutted or undergo the risk of the DoJ having a contrary legal interpreation than them pre or post regs, then they should be seeking to change their coporate domicile to a friendlier place, and probably as well to take themselves private again. Otherwise some other concern will rise up to fill the void and take that business.

[/ QUOTE ]

That's not how this statute works, actually. The part about sites accepting unlawful internet wagers was effective immediately upon the signing of the legislation. That's why Party and the others pulled out right away. But the part about screening and blocking transactions is not -- all the statute says is that the Fed must draft regulations directing financial institutions about what they must do. Again, nothing in the statute requiring financial institutions to do anything, only directing the Fed to draft regs, which will then define the financial institutions' obligations. The statute also says that financial institutions can't be held liable as long as they follow those regs and provides the Fed with an out to exempt categories of transactions that the Fed deems to be "impractical" to screen or block. So right now financial institutions not only have no obligation to screen and block, they can actually be held liable if they do screen and block (a non-unlawful internet gambling transaction by mistake).

[permafrost]

[ QUOTE ]
all the statute says is that the Fed must draft regulations

[/ QUOTE ]

Actually, the Treasury Dept. Secretary, the Federal reserve, and the Attorney General will prescribe regulations.

Those regulations would not apply to Neteller (or a US bank's dealings with Neteller) unless Neteller volunteers to follow them, which they say will happen (worried about aiding and abetting?). I don't think the regulations of 5364 can be written to prevent anything more than a 'restricted' transaction.