Neteller Vows to Stay in the U.S.
DOW JONES NEWSWIRES
October 11, 2006 12:31 p.m.
A Neteller PLC executive said the British company, which handles payments for online gambling companies and others, will continue to operate in the U.S., despite the recent passage of antigambling legislation.
"We are staying in the U.S.," said Bruce Elliott, Neteller's executive vice president, marketing and sales, told a online gambling conference in Barcelona. "I don't think we have a very big problem."
The remarks come despite the surprise passage of legislation in Congress late last month that would forbid Internet casino companies from accepting U.S. financial transactions. The legislation is designed to prohibit U.S. banks and credit card companies from processing payments for illegal online gambling. President Bush is expected to sign the legislation Friday.
Neteller, which had 2.3 million customers at the end of 2005, generates around 85% of its earnings in the U.S. and Canada, with the remainder coming from Europe and Asia. Neteller said Oct. 2 that it was studying the impact of the law.
Some British Internet gambling companies, including PartyGaming PLC -- the world's largest online gambling group by market capitalization, which generates 76% of its revenue from the U.S. -- and 888 Holdings PLC said they planned to stop taking bets from U.S. customers if the bill becomes law.
Many online gambling sites don't deal directly with U.S. consumers, but instead work through online intermediaries like Neteller, which transfers money from bank accounts to online businesses for a fee. For example, when a U.S. gambler sets up an account, the money is first sent to Neteller, which in turn deals with the gambling site.
