17/01/07 -Yogonet.com - Reuters
NETeller quits US after illegal gambling charges

(US).- Money transfer firm NETeller closed its US Internet gambling services on Thursday, wiping out over 65 percent of its business, after two of its founders were arrested there this week. Canadians Stephen Lawrence and John Lefebvre have been charged with handling billions of dollars in illegal gambling proceeds.

Both face a maximum sentence of 20 years in prison. "The operations linked to U.S. gambling account for about 65-70 percent of sales," said a source close to the company. NETeller said that after the United States effectively banned online gaming in November, it had experienced slowing fourth quarter growth.

Online gaming giants like PartyGaming and Sportingbet pulled out immediately, but privately-owned rivals like Pokerstars, Full-Tilt Poker and Bodog carried on taking wagers illegally, citing ambiguity in the law.

NETeller has always said it was waiting to see the detail of the regulations before making a decision. It had its shares suspended on Tuesday after the two founders were arrested on Monday - Lawrence in the U.S. Virgin Islands and Lefebvre in Malibu, California. "Today’s withdrawal from the U.S. market by NETeller is the culmination of months of careful planning," it said in its statement on Thursday.

"These decisions will allow the group to focus on opportunities available in the growing markets of Europe, Asia and the Americas outside of the United States," it added.