May 2, 2007

NEWS: Neteller in Crisis

Neteller, the electronic money service that functions as the PayPal of the gambling world, may be in trouble, say industry experts. Neteller, which was founded in 1999 and is owned and operated by British company Neteller PLC Group, offers consumers the option of transferring funds online and depositing and/or withdrawing money from banks around the world. Now, however, some experts are cautiously suggesting that those who have money tied up in Neteller, might want to try and extract it if at all possible. Not because the money can be touched by the company – that would be in direct violation of several laws, not to mention Neteller’s own TOS – but because, in the incident of a collapse, it might be a long and drawn-out process to retrieve the funds.

First of all, experts point out, Neteller is on shaky ground with the U.S. government, which still hasn’t decided whether or not to legally condone the site and its commerce. The founders are in a holding pattern in regards to that matter. Furthermore, the company recently pulled out of Canada altogether. It is being plagued by defections as many senior management employees jump ship, and its stock is, as of the present time, frozen. All things considered, Neteller doesn’t appear to be especially healthy, say critics. Of course, all the fears for Neteller’s future could become self-fulfilling if a panic makes the majority of customers start withdrawing money en masse.


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