NETeller stiffing Players and Operators

The dust is beginning to settle in the online gambling industry from the aftermath of the arrests of NETeller founders and the company’s subsequent exit of the US market. Several other e-wallet’s including Citadel Commerce pulled out of the US market as well following NETeller’s move. Reports from players and operators indicate that NETeller is having a major run on the bank with funds expected to be returned to both groups as late as the end of February 2007.

Here is a exert from an email correspondence the company sent out to it’s US members on January 25th, 2007:

US member NETELLER accounts will NOT be closed. Your funds will continue to be securely held, and you will remain having full access to the funds held by NETELLER. Currently NETELLER is experiencing unprecedented volumes through our withdrawals department. Due to this volume, there may be delays of up to four (4) to six (6) weeks for an EFT withdrawal to your bank account, and six (6) to eight (8) weeks for a check withdrawal.

One irate reader of Point-Spreads.com, Robert B****** emailed us to say, “These mother fu**ers are holding on to my PAYCHECK from another NETeller member, I don’t even gamble online! I emailed NETeller and am waiting for their response. I will forward to you so you can alert your readers of this STIFF JOB by NETeller!”

Last Updated ( Saturday, 27 January 2007 )

Written by Thomas Jensen

Sunday, 21 January 2007

British investment bankers have been asked to hand over details of their dealings with internet gambling companies by the US Department of Justice. Subpoenas have already been issued by the Southern District Court of New York to several investment banks including: Credit Suisse, Deutsche Bank, HSBC & Dresdner Kleinwort. It has been revealed that the first subpoenas date back to October 2006. Shortly after US President George W. Bush signed a bill banning online gambling financial transactions.

The official demand is looking for email correspondence, telephone records and other documents. Many internet gambling industry experts believe the DOJ is on a fishing expedition.

London was a hot bed for internet gambling companies that were looking for capital to grow their burgeoning internet operations. Such companies as Party Gaming, 888.com and NETeller all used the London Stock Exchange (AIM) for their IPO.

With all that has transpired in the last several months, we could not think of a better time to speak with an industry expert, so we reached out to Christopher Costigan, the CEO of Costigan Media LLC, which runs Gambling911.com. Gambling911.com is the most read website among internet gambling professionals worldwide.

Last Updated ( Sunday, 21 January 2007 )

Written by Thomas Jensen

Saturday, 20 January 2007

NETeller Founder Stephen Lawrence Free on Bail

NETeller Founder Stephen Lawrence posted bail in the Virgin Islands and was released into the custody of FBI agents which escort him to New York City. The United State Department of Justice has charged the Canadian businessman with money laundering and tax evasion while he served as director of NETeller, an online payment transfer company.

Prosecutors said that Lawrence had posted $4 million in bail, $2.5 million in cash and a $1.5 million Manhattan Condo was used as collateral.

Gambling911.com broke the news that Lawrence and John Lefebvre were arrested last Monday after an unsealed complaint claimed the two were guilty ofconspiracy to transfer funds with the intent to promote illegal gambling. Lefebvre was arrested on Monday in Malibu, California.

While in New York court, Assistant U.S. Attorney Timothy Treanor argued that Lawrence was a "flight risk" because he owned a private jet and had founded a business in which the "entire premise" was to "stay outside the jurisdiction of U.S. law enforcement."

Treanor said "It would be difficult for us to ever get him back again."

Last Updated ( Saturday, 20 January 2007 )

Written by Thomas Jensen

Wednesday, 17 January 2007

Citadel Commerce Exits US Market with NETeller

The recent arrests of the NETeller founders were enough to send Citadel Commerce packing from the US market. In an announcement released by Citadel Commerce, they online gambling payment processor has stated they are leaving to comply with UIGEA (Unlawful Internet Gambling Enforcement Act of 2006). Citadel operated the MyCitadel e-wallet which competed with NETeller’s e-wallet solution.

Earlier today, Point-Spreads.com broke the news that NETeller would leave the market as early as midnight. That proved to be longer than anticipated, NETeller has issued a statement that they are in fact, leaving the US Market as well.

Here is the official statement from NETeller:

US member update Effective Immediately

Due to recent US legislative changes and events, effective immediately, US members are no longer able to transfer funds to or from any online gambling sites.

All US members will continue to be able to use their NETELLER e-wallet account to safely transfer funds to and from non-gambling merchants and are not required to close their account or withdraw their funds.

Please note that we are experiencing higher than normal support volumes and recommend that you read the FAQ’s for more information.

Here is the official press release from Citadel Commerce:

Last Updated ( Wednesday, 17 January 2007 )

Written by Thomas Jensen

Wednesday, 17 January 2007