More misery for NETeller

NETeller, the online payments processor specialising in the online casino and poker industry, has issued a profits warning after announcing it will no longer provide its services for use with online gambling for customers in Canada and Turkey.

Following the arrest of its Canadian founders earlier his year, Stephen Lawrence and John Lefebvre, NETeller are taking no chances if there appears to be any uncertainty over their presence in some countries. The company will stop gambling-related transactions in Turkey this week and on April 9 in Canada.

"Recent actions by regulators, payment processors, and online gaming operators have increased the uncertainty around certain activities related to online gambling in some jurisdictions," NETeller explained in a statement yesterday.

"The risk to the group's ongoing business in Canada and Turkey has increased in the light of such developments. The board has therefore concluded that the group will no longer process transfers related to online gambling sites on behalf of Canada or Turkey resident customers."

However, NETeller will continue to offer their service for Canadian and Turkish residents for non-gambling related websites.

Nevertheless, the withdrawal will still hit NETeller hard as the company derives much of its revenue from gambling related services, with the move away from Canada especially “likely to have a material negative impact on the group's results”, the company admitted.

Following last months announcement that NETeller would cut 250 jobs in the UK and Canada, the company added that it "does not anticipate making further significant reductions in staff."

Furthermore, after U.S authorities seized $55 million worth of funds belonging to its U.S customers as part of evidence against Lawrence and Lefebvre, NETeller added that it still cannot specify a date when this money will be returned.

Last week, we revealed that it expects to outline plans to pay back those customers within 75 days.

Editor, - 2007-03-27 11:00:14

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