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I realise that most people here from the US, but has anyone from the UK confirmed what the position is. Are we still going to be able to receive payments from affiliate programs into our Neteller accounts and withdraw from there as per usual?
I am assuming for the time being that there is no issue with maintaining a balance in a Neteller account?
Well I’m not based in the UK – but my impression is that payments via Neteller to any country EXCEPT the US are valid and will continue to be made.
This is also true for Moneybookers.com too.
I’m not sure if this has been addressed but is there any risk of Neteller going under with many people pulling out their money and most of their business gone?
it hasn’t been addressed by the company yet …
But the fact that they suspended their shares shows how much impact this will have. Certainly dropping US gambling payments will have a massive effect on their turnover and bottom line … and their share price will reflect that.
We saw a similar effect on poker rooms in October – and a quick re-organisation of rooms.
Neteller might have to make job layoffs – but their basic principle is still very much a money earner – and they do not have any corporate debt to speak off – so the company should continue – albeit with smaller volumes.
:tooconfus
DISCLAIMER : I’m not financial expert on e-wallet companies – and I would expect more informed debate to be in the UK busienss section over the next month or so – as this is a hot topic.Check the broadsheets – or google Neteller in the financial section news.
:popcorn:Thanks. I just wondered what they were doing with the money they hold in customers accounts and whether a run of the accounts (all these people withdrawing) would have the same affect as a run on a bank.
I guess there’s no actual way they could be out of pocket after this change, e.g. bad debts, etc., just a significant revenue decrease.
THe only thing I’ve been able to find is …
Quote:The group also commented that, while it had been successful in the US, which it estimated accounted for approximately 65% of the company’s total revenues, its prosperity had declined in recent months due to the US authorities’ crackdown on online gambling, which culminated in the passing of the UIGEA.
