Neteller Bounces Back

Despite the United States' ban on online gambling companies, and the subsequent fallout from the leader of the free world's latest prohibition, the business of gambling keeps marching on. And no better organisation can attest to the cash cow the 15.5 billion dollar industry is, than Neteller.


The world's leading online payment processor became front-page news soon after the US passed the Unlawful Internet Gambling Enforcement Act (UIGEA) in late 2006. The results from the investigation found Neteller guilty - dealing the company a near-fatal blow.


Neteller admitted to having transferred billions of dollars to and from Internet gaming Web sites. After agreeing to a settlement with the US Department of Justice, the organisation was forced to pay a $136 million fine. In addition, trading of the company's shares was suspended for a six-month period afterwards. Neteller sold off its Calgary head office for 33.5 million dollars and swiftly established itself on the Isle of Man, cutting its payroll from 1100 to 425 staff members.


Neteller announced losses of $185 million for 2007. The slide was attributed to restructuring efforts as well as other costs connected with the investigation.


Similar to a number of other high-profile online payment processors and gaming firms, including online casinos and poker rooms, the American gambling law sparked an immediate shift among marketers, in the direction of greener pastures, primarily throughout Asia and Europe.

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