Residents in Turkey and Canada will now have to take their online gambling transactions elsewhere as NETeller Plc. announced today it was no longer processing those types of transactions for customers in those countries.
NETeller had already lost 65% of its business when it closed its doors to online gambling transactions by U.S. customers in January. It's estimated that Canada represents 30% of the remaining non-U.S. business.
Loss of the Canadian business is "likely to have a material negative impact on the group's results for the full year ending Dec. 31, 2007," said the company in a press release.
The loss of the Turkish business will have less of an impact on NETeller as the country doesn't represent a material proportion of its overall customer base, revenue or profitability.
The decision to pull out of those markets came as a result of tightening of online gambling restrictions in the two nations.
NETeller continually assesses the markets they serve to determine risk and status. Recent actions by regulators, payment processors and online gaming operators made the company re-evaluate its business in Canada and Turkey.
In light of the recent changes, NETeller's Board of Directors concluded that the company would no longer process transfers related to online gambling sites on behalf of residents in those two countries.
NETeller will cease all Canadian transfers to gambling merchants effective April 9 at 12:01 a.m. Suspension of InstaCASH transaction was immediately effected as of today at 12:01 a.m.
For residents of Turkey, local bank deposit options were withdrawn March 9, and transfers to online gambling merchants were immediately ceased today at 12:01 a.m.
The e-wallet service will continue to operate normally in these countries for non-gambling transactions.
In its press release, NETeller also reiterated that in the next 75 days it will outline a plan to pay back U.S. customers the $55 million that was seized by U.S. prosecutors in the case against the company's founders.
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