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 Neteller
is the leading online fund transfer company for the Internet gaming industry. While not a gambling site itself,
Neteller's fortunes closely parallel that of the online gaming industry.
Headquartered in the Isle of Man (with offices in England, Costa Rica, Canada and Hong Kong), the company was
founded in 1999. Late in 2005 Neteller's market cap stood at one and a half billion dollars. After passage of the
Safe Port Act, the market
cap fell to about three hundred million dollars.
Neteller services over 3500 businesses and over a million private customers in thirty languages. The company offers the service of
securely transferring funds worldwide. Each customer has an e-wallet that allows them to instantly add or withdraw money, or transfer
funds to businesses or individuals.
Neteller UK Ltd. is a wholly owned subsidiary of Neteller PLC that is regulated by the UK Financial Services Authority as an e-money issuer.
Neteller PLC was listed on the London Stock Exchange's Alternative Investment Market (AIM) in April 2004. The stock
surged about 300% to a peak of 893p before crashing with the rest of the online gaming sector after the passage of
the Safe Port Act to the neighborhood of about 140p. The company initially stated that the Act "may have a
material adverse effect on Neteller's US facing business." Later they updated their position to more clearly state
that even though the company was registered outside the United States that they will "comply with the Act and its
related regulations as if it were subject to the Act's jurisdiction."
The company withdrew from the US market in January 2007, after two of its founders (no longer associated with the company
beyond owning stock) were arrested in the United States on charges that essentially defined the company's core business
as "money laundering". In July 2007 the company relisted on the AIM. Shares fell to about 70p, or about 50% of its
January value. At the same time, the company began the process of returning all remaining funds to US customers.
The company claims usage of Neteller by non-US residents will continue as before.
In its final stockholder release prior to passage of the Act, the company stated in the first half of 2006 it was
signing up 3250 new customers a day, had average daily receipts of $4.68 million, and had a profit of $56 million
for the six months, representing a 51% increase over the previous year. Also see
Using Neteller.
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