Neteller Halts Service to Canadian and Turkish Online Gambling Market
26 March 2007
March 26, 2007
NETeller Plc, the British online money transfer business, today announced that it was withdrawing its payment services to online gaming sites for Canadian and Turkish customers.
The move is in response to recent regulatory developments surrounding online gaming in Canada and Turkey, which have significantly increased the risk to the Groups ongoing business in those markets.
From Monday 9th April, NETeller will no longer process online gambling related transactions to gambling merchants from Canadian residents, and from today, no longer accepts deposits using their instaCASH service, either directly or via any online gambling site. Non-gambling transactions continue unaffected.
Following legislation passed in Turkey on 28 February 2007, which prohibits certain forms of online gambling to be offered by unauthorised domestic or foreign companies to citizens in Turkey, NETeller has decided to implement a voluntary phased withdrawal of payment services related to online gambling in the Turkish market. Local bank deposit options for Turkey-resident customers were withdrawn on Friday 9 March 2007 and the Group has ceased processing online gambling related transactions for Turkey-resident customers from today.
According to the NETeller, the Canadian business would likely have contributed significantly to the Group’s revenue and profitability during 2007 and the loss of this business is now likely to have a material negative impact on the Group’s results for the full year ending 31 December 2007. The Turkish business of the Group does not represent a material proportion of the Group’s overall customer base, revenue or profitability.
The Group’s shares will continue to be suspended from trading on AIM in view of the continuing uncertainties the Group faces.