The poker gazette is reporting a big layoff at Neteller...

Neteller (LSE: NLR), the leading global independent online money transfer business, today issued the following update from its Board of Directors with regard to its principal operations in Calgary, Canada and the UK.

As a result of the Group's voluntary withdrawal from the US market, the Group has substantially completed the necessary reorganisation and restructuring of its operations to reduce its headcount and align related costs with anticipated revenues of its worldwide business.

This rationalisation programme has focused on the Group's Calgary-based operations where the principal teams serving the US market were employed. As previously highlighted, transfer volumes and customer enquiries through the Group's contact centres have decreased substantially since the Group ceased processing transfers for US residents. Staff reductions will total around 220 employees, across all levels, from the Group's contact centre and security teams, as well as related support functions in marketing, processing and IT/ product support. Approximately half of the reductions were through the Group's voluntary redundancy programme.

In addition, as part of the rationalisation of the Group's UK facilities, it is expected that around a further 30 redundancies will arise from the relocation of the Group's Gatwick-based operations to Cambridge where they will share premises with the Group's NetBanx business. This move is expected to be completed by the end of March 2007.

Following these staff reductions, the Group will employ approximately 425 staff across its European, Americas and Asia Pacific operations, down from a peak of over 1,000 during 2006. A further part of the Group's rationalisation programme will include a review of the Group's property requirements and may include a sale or partial lease of certain of the Group's Calgary-located facilities. As stated in our trading update of 18 January 2007, the total cash costs associated with staff restructuring are expected to be in the region of US$ 1.1 million in 2006 and a further US$ 3.7 million in 2007.

Ron Martin, Group President and CEO said: "The events of the past months have led to challenging times for the Group and the Board has taken these measures to ensure the Group has a sustainable business going forward. We would like to thank all of our employees who have contributed to the growth of the NETELLER business over the past few years, and for those who have left or will be leaving the Group, we wish you well for the future. The Board believes NETELLER continues to have a strong future ahead and presents many exciting opportunities for its employees."

The Group's shares will continue to be suspended from trading on AIM for the time being in view of the continuing uncertainty. Further announcements will be made as appropriate.

There have been several news outlets reporting that Neteller funds have been seized by the FBI, but none of these reports have cited any credible sources. Whether the funds have been seized or not has not yet been confirmed, but just for fun, here's another article. This one is from the Guardian...


The FBI has frozen funds held in customer accounts at Neteller, the "virtual wallet" payment processor, as part of its case against the firm's two Canadian founders who were last month arrested and charged with racketeering and money laundering.

Neteller refused to disclose how much had been frozen but company filings make clear huge sums were flowing between its US customers' "e-wallets" and online merchants - particularly gambling websites - up until the firm was pressured to close its American operations in the wake of last month's arrests. Over a six-month period last year the company processed transactions worth $5.1bn (£2.6bn), with about 85% involving US customers.

Less than three weeks ago, Neteller said in a statement to the stock exchange: "The funds of US resident customers are held in segregated trust accounts and are fully secure and will be available for withdrawal by customers on demand."

Since then, advice on the group's website makes clear customer withdrawals have now been blocked. "As a top priority, we are working to resolve all withdrawal issues but in the meantime we continue to maintain these funds in trust on your behalf," customers are told. "Please check this page regularly for more updates."

The US Congress passed tough anti-gambling laws last October but several rogue operators based in off-shore tax havens have continued to target US punters, flouting the new legislation. They relied heavily on Neteller.

In the past five years, Neteller came to dominate gambling transactions in America because its e-wallets allowed users to get around credit card blocks on gambling sites. Following the arrests of founders Stephen Lawrence and John Lefebvre, who face up to 20 years in jail if convicted, the decision was quickly taken to shut down US operations. Trading in the company's shares was also suspended and remains so.

The FBI claim JSL Systems, a US-based payment company owned by Mr Lefebvre, received customer funds in the US for Neteller and then transferred them to accounts held by a Neteller company in Canada. Last month Neteller told the Guardian that wagered money no longer passed through JSL.

It is unclear whether the FBI will treat some or all of the funds as proceeds of illegal gambling. One US newspaper report cited Neil Donovan, an FBI agent, saying the funds were being held in court as potential evidence. Some money may be returned to Neteller customers but no timescale was forthcoming, the report said. A spokeswoman for the Department of Justice last night refused to confirm details in the report, as did Neteller.

Wyoming poker fans won another hand Friday when the House Travel Committee approved a bill, already passed by the Senate, that would permit the return of "social" poker games to state bars and restaurants.

"The counties were not consistent in their interpretation of the gaming laws of this state, and we felt we needed to clean that up," House Travel Committee Chairman Rep. Pat Childers, R-Cody, said.

In 2004, Attorney General Pat Crank effectively banned poker games from public establishments when he issued an opinion saying that poker games in bars violated the state's gambling law. Crank's opinion said the games are illegal because they allow establishments to profit from gambling, even if that profit is just from increased business.

If you really really need to keep reading about Wyoming you can go to the Star Tribune's site and get all the Wyoming poker details, as well as the farm report.

Mansion.com made a discreet announcement in the FAQ/Help section of their website this week. Here's the screenshot...


"Regulations and restrictions pertaining to betting and gaming vary from country to country. It is your sole responsibility to ensure that the laws applicable to you concerning betting and gaming do not prohibit you from opening an account and wagering with MANSION.

"US Members:

"We regret to advise that we are not accepting deposit or gaming and wagering transactions from Members in the United States. However, US Members may continue to access their MANSION account for administrative functions. "

Having been fucked over many times, I consider myself an expert in recognizing when a good fucking over is taking place. In my expert opinion, I would have to say that Neteller is fucking all of you.

Two weeks ago they stopped processing EFTs and sending out checks. Last week they stopped allowing you to withdraw funds via the debit card.

This left you with only one way for U.S. customers to get their money... make a peer to peer transfer to a non-U.S. customer that you trust and that person transfers the money to you by some other means.

Guess what... yup, they sealed that loop hole today. The following are the latest entries to the Neteller FAQ page...

Why can't I perform Peer-to-Peer transfers anymore?
In order to ensure that US members do not use NETELLER with the intent to gamble online, NETELLER is no longer offering its Peer-to-Peer service in the US.

Why isn’t my account certified anymore?
US member accounts have been temporarily de-certified to revoke Peer-to-Peer capabilities. These accounts should be automatically re-certified in the next 10 business days, but Peer-to-Peer transfers will no longer be available to US members.

Why has my NETELLER account been closed?
If you recently performed a Peer-to-Peer transfer, your account may have been temporarily closed. Your account should be automatically re-opened within 5 business days, but you will no longer be able to perform Peer-to-Peer transfers.

How can I withdraw funds from my NETELLER account?
As a top priority, we are working to resolve all withdrawal issues, but in the meantime we continue to maintain these funds in trust on your behalf. Please check this page regularly for more updates.

I was curious to see what the Neteller Terms of Use said about them walking away with all of your money, so I went to their sign up page and clicked on the "Terms of Use" link. The following page poped up...

I was cruising through Craigslist and just happenned to find this posting...

We are looking for 3-5 very attractive females who are comfortable being topless in a thong while waiting on upscale attractive gentlemen & women. This is a private poker party that will be this weekend in the Boston area. You will be compensated $75hr for waitressing, it begins around 9pm and will go until around 3am. You should also be comfortable providing sensual massage, and you will be compensated $500 for each massage. We are holding interviews and auditions over the next 24-48hrs. For consideration, you MUST submit pics and cell number.

Those must be some pretty damn good massages! ;) Oh, and I love the way they are holding open "auditions".

Fox News last week filed a report regarding the recent frced resignations of seven U.S. Attorneys. Apparently these prosocuters did not fall in line with the attitudes and agendas of the current administration.

Included in that report was a snippet about online gaming....

"Earlier this month, federal officials arrested the founders of Neteller, an overseas online payment processor, while they were in the U.S. to switch planes. They were arrested because Neteller was allowing its U.S. customers to use the service with online gambling sites. It's the third time U.S. officials have arrested foreign citizens in a U.S. airport on online gambling charges, despite the fact that in all three cases, the suspects were citizens and residents of foreign countries where online gambling is perfectly legal."

Obviously, Hanity didn't approve the copy.

Paranoia is running deep amongst those in the online gaming industry. Gambling 911 is reporting this piece today...

The latest rumor going around Bookie Central is that some four dozen FBI agents have descended upon the Central American hamlet and plan on rounding up about two dozen rogue bookmakers (two agents for every rogue). Costa Rica will cooperate, according to these rumors, because of a $200 million US loan that has been forgiven.

"(The) story goes that (the) plane was half full on way here (to Costa Rica) and they have booked full plane for ride home (back to the US)".

The Costa Rican bookies will believe anything they hear because they are so on edge these days. Having a bunch of FBI agents globetrotting around the world hunting online bookmakers might not sit too well with an American public still wondering why Bin Ladin is yet to be captured. But Costa Rican bookies believe they are sitting ducks.... literally.

One freaked out bookie relayed to Gambling911.com:

"At the Marriott there was this guy with a book on 'Bird Watching' and he had a pair of binoculars. The funny thing was, there were no birds around and he kept directing the binoculars towards me when it appeared I was sleeping."