Neteller update

[LittleGeneral]

http://www.usatoday.com/tech/news/20...rackdown_x.htm

Net-betting crackdown freezes funds

SAN FRANCISCO — The federal crackdown on online gambling has tied up the funds of thousands of U.S. patrons of two of the largest services.

The crackdown on BetOnSports, which no longer takes sports wagers from the USA, and Neteller — an Internet payment service popular among gamblers — is intended to put a dent in the $10.6 billion industry.

And it has: Following federal charges against executives from both companies, dozens of the more than 2,300 websites that service online gambling have stopped taking U.S. wagers.

Still, the actions against BetOnSports and Neteller have left the online accounts of their U.S. customers frozen until legal issues are resolved.

"The truth is that the money is in limbo and the companies are not required to refund any money until a successful prosecution or settlement takes place," says Michael Tew, principal of gaming consultant CapitalHQ. "This could take years." Funds from other gambling sites are not tied up, Tew and others say.

Most U.S. customers of BetOnSports have been waiting to cash out money in their accounts since July, when a federal grand jury issued a 22-count indictment charging CEO David Carruthers with racketeering, conspiracy and fraud. BetOnSports handled $1.77 billion in bets during its 2005 fiscal year, with more than 90% of wagers from the USA. An attorney representing the company declined to comment.

Neteller founders Stephen Lawrence and John Lefebvre were arrested in January on a charge of conspiracy to transfer funds with the intent to promote illegal gambling.

Though money-transfer companies such as Neteller do business with financial ins utions and merchants, many also allow gambling companies to transfer money collected from U.S. gamblers to bank accounts outside the USA. Neteller last month closed its U.S. Internet gambling services, erasing about two-thirds of its business.

Neteller offers few instructions for customers trying to cash out their accounts. "We are working to resolve all withdrawal issues, but in the meantime we continue to maintain these funds in trust on your behalf," says a posting on the company's website.

Neteller declined to comment. The company processed more than $7 billion in online gambling transactions in its 2005 fiscal year. FBI Agent Neil Donovan says funds from Neteller are being held in court as potential evidence. Some customers may get their money back, but he did not provide a timetable.

A law signed by President Bush in October bans the use of credit cards, checks and electronic fund transfers for Internet gaming. U.S. residents place more than half of all bets to major offshore casinos.

BetOnSports has settled civil charges with the Justice Department, but not criminal charges. Carruthers' case is separate.

[LittleGeneral]

Great news for us with 20K+ riding on this...

At this point, I'd take a 75% hit on the money to get just a little out...

[Rusty Shackleford]

I think I still have 20 bucks in there. I have no idea what my account info is, it's been so long.

[MannyIsGod]

Wow. I never kept nearly that much on Neteller (I like interest for one). I used them just to transfer the money, but not for storage. I do have about 400 hundred tied up though, and I'm having a of a time moving money out. I'm having to wait for my ePassporte account to get verified which probably won't happen for another week. I feel your pain LG, and I hope you get what you have in there back.

What about your Prima roll?

[T Park]

Good thing the govt has this covered instead of other meaningless issues like immigration, and other pointless problems.

[LittleGeneral]

I like interest for one . . . I used them just to transfer the money, but not for storage.

Yep...that's basically what it boils down to...whether you have a level of common sense that rivals that of a crack-subdued sea ...which unfortunately is about where my level is...

Thanks for the sympathy though...

Prima claims theyre sending a check..theyve already cancelled the withdrawal twice with no clear reason...so i'm real optimistic about that either...

[Kori Ellis]

Sorry Little General, hopefully it's not tied up for years and you can at least get a portion back of it soon.

(By the way, TPark - your sig is a big blank square, please do something about it.)

[MannyIsGod]

FWIW, I think you will get your money back from Netller. They're legit and they're probably just trying to figure out legal ways to sort this out without taking on anymore liability.

[LittleGeneral]

Thanks, Kori.

Sounds like its possible the money may be released eventually...I just hope, factoring in inflation, it will be enough at that point to buy at least one bottle of tequila (Jose Cuervo will do in this case).

[GINNNNNNNNNNNNOBILI]

Update:

Dear Kurt213,

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We have worked to deliver this deposit option as quickly as possible, and are confident that MyWebATM provides the convenience our players expect and deserve. Withdrawals through MyWebATM will also be fast, easy and secure, and will also be available within the next few days.

We apologize for any inconvenience you have recently experienced, and want you to know that:

[Clandestino]

, it is locked up.. the government will take every penny. the only way for neteller to resolve it is for them to give you their own cash.