February 18, 2007 8:09 AM PST

Neteller blames job cuts on U.S. gambling crackdown

Neteller, the online payment processing group, will trim about 250 jobs at sites in Canada and the U.K.

Around 220 jobs will be cut at the group's contact center and security operations in Calgary, Alberta. Another 30 jobs will be lost in Britain when Neteller operations move from Gatwick to Cambridge in March.

Neteller said in a statement the job losses were the result of a "reorganization and restructuring of its operations."

The company's services were used extensively for payments made to online gambling sites before a change in U.S. law last year made that type of transaction illegal.

Since then there has been a mass withdrawal of online gambling companies from the U.S., prompting Neteller to follow suit.

A Neteller spokesman said the job losses are a direct result of the recent changes in U.S. online gambling laws.

Since Neteller stopped processing payments for U.S. residents, transfer volume and customer enquiries have "decreased substantially."

"The company is looking to expand in Europe and in Asia in particular," a Neteller said of plans to grow the business following the withdrawal from the U.S.

The group will continue with its current business and has "plenty of product areas (it) can expand into," he added.

Tim Ferguson of Silicon.com reported from London.

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28 comments

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Oh boo hoo
Give me a break. Yes, the U.S. banned them from serving its residents but it is really the fault of the executives. They should have known that what they were doing was illegal.
Posted by thenet411 (415 comments )
Reply Link Flag
let's point the finger..
where it really belongs- scumbags (Frist being the prime example) pandering the 'religious right'. Frist thought that he was going to be president (yeah, right) and pushed this lousy piece of legislation (and if it wasn't so lousy, why was it tacked onto a port security bill) to pander to 'the base'. Then he finally figured out that he is unelectable and retired from politics after pushing and passing this crap.
Posted by blkmagik98 (33 comments )
Link Flag
Illegal?
I'm still not sure how the United States can play "World Police." Is it illegal for us to establish foreign bank accounts? Oh, only if its for "gambling". Yeah, funny how that law excludes betting on horse racing. We even have a cable channel that runs races 24 hours a day. The only reason the U.S. did this is because 1) they want a cut in taxes and 2) they want to protect domestic interests (read: Caesars, etc.) who will no doubt, open their own online gambling sites and poker rooms shortly and court people to physical casinos...
Posted by ScottProdigy (15 comments )
Link Flag
Here's an idea
Capitalize on it and tax it. Turning it away and banning is only going to focus pressure on going underground.
Posted by fcekuahd (244 comments )
Reply Link Flag
netteller
They are quick to take your money(with a high fee). But they won't let you make a withdrawal!!!
I've been trying to get $40 out of them for over a month. they will not reply to emails and they shut off thier live chat. another rip-off. this is why the US has to stop these sites.....
Posted by randy1402 (2 comments )
Reply Link Flag
Not entirely Neteller's fault
Neteller probably should have planned better for this. However, the FBI has seized over $55 million in cash and according to them most of the people won't get paid. Be happy it's only $40. Some people have thousands tied up. The US is causing most of the problems attacking licensed operations in other countries. This company has operated for years without problems up until this witch hunt by the US DA office.
Posted by farookh20000 (8 comments )
Link Flag
This company uses fraud to make money...
I work at a credit union, and one of our members had Neteller pulling out of his account over and over again. He had no idea what was going on. When I called their toll free number to try to find out why this was happening, they said they would look into it, but they also kept saying something about how their operations were being shut down on that very day. It all sounded very weird and suspicious so I don't really view them as the type of company with legitimate business practices. They probably should be officially shut down. This all happened about a month ago.
Posted by mrc77 (30 comments )
Reply Link Flag
"He had no idea what was going on."
"He had no idea what was going on." Uh huh, sure. How did Neteller get his account number? More likely he knew exactly what was going on and just didn't feel like paying for his gambling debts.
Posted by solrosenberg (124 comments )
Link Flag
Unlikely
I doubt very much this person was completely innocent. He probably had bounced EFT transfers. Also, if you want to blame anyone blame the US. The FBI seized over $55 million in cash from them. They have no way to pay out right now because of the US seizures. Regulation is the only way to go here. People are going to gamble regardless. Cracking down on the entire industry just makes criminal enterprises easier to operate and gives them the monopoly.
Posted by farookh20000 (8 comments )
Link Flag
I have no objection to stupid taxes.
I have no objection to taxes that only target the stupid, but why should we allow con men do as they wish. If we let online gambling sites operate, should we also let the "Nigerian billionaires" rip off the 98 year old AOL users as well?
Posted by ralfthedog (1589 comments )
Reply Link Flag
As someone who has actually played poker online . . .
I can tell you that it is not a rip-off. I played off and on for four years and I lost and won several thousand dollars over that time. At no time did I feel cheated by the gambling site or any of the money processors. The availability, knowledge, and politeness of their customer service puts any other industry to shame.

The only time I feel ripped off is when I go to a brick and mortar casino and pay their exorbitant fees.

The bottom line is that this law was a gift from Bill Frist to his friends on the religious right. It was attached at the very last hour to a bill that had to be passed (Port Security) at a time that was too late for the bill to be read or further amended. Most congressmen knew the law had been added to an unrelated bill, but there was nothing they could do about it.

I suggest you do a little more reading on the subject before spewing more inanity. I hate to be rude, but it is frustrating that the truth has been so effectively hidden.
Posted by dubyahdee (3 comments )
Link Flag
wrong
How about phrasing it this way: "should we let people take personal responsibility for their own actions of lack thereof?"

I have no need for the Govt. telling me what games my kids can play, what programs I can watch, what profanity enters my ears, which drugs/alcohol I can use, whether I can beleive in jesus or the flying spaghetti monster. Controlling these things is not nor has ever been the role of government. its sheep like some of the posters here who so readily give things up feeling that the Govt. ALWAYS has their best interests in mind.

Give people credit for knowing what they're doing. The online gambling industry did not have a gun to anyones head, people knew what they got into and enjoyed it, including myself. Whats next, porn? How about dissenting voices in how things are run in the US? How about controversial medical treatment that may save the life of your family member? Do you want the government making those kinds of decisions as well? Guess what, they already are.
Posted by Wickedashtray (44 comments )
Link Flag
So what -- this was never a legitimate business
This whole business was built on exploiting a loophole created when the U.S. passed a bill making it illegal for banks and credit card firms to process payments to internet gambling groups. Everybody should have known this wouldn't last forever.
Posted by Hardrada (359 comments )
Reply Link Flag
Casinos only legit when Goverment can dip their hands into it
It is a very hipocritical attitude of the USA. Land Casinos and River
casinos, JUST AS BAD, remain legal ... why? Because government
can make a profit on them.

Online casinos are considered competition to traditional
government sponsored casinos. It is like saying, "it is ok to kill as
long as you use US built firearms"

It is a dirty world at ALL levels.
Posted by Sabroson (88 comments )
Reply Link Flag
give me a break
As far as i can see it a lot of American people want to gamble online so why does their government want them not to? all i can see is another sad episode of the American govenment flexing it's will on the rest of the world as this does not only affect America it affects the world. We fought to get rid of dictatorships in two world wars so why should the world submit to another.
my last point is what happened to the almighty constitution that the government is by the people and for the people, does not seem that way to me. US Government sucks.
Posted by ITJohn (1 comment )
Reply Link Flag
Crazy country
You cant put a bet on but you can walk into any shop and buy a gun - give yourselves a shake usa
Posted by hawaysafc (1 comment )
Reply Link Flag
 

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