NETeller is a safe and reliable alternative payment method that works as an “e-wallet”. Players who open a NETeller account (at www.neteller.com) simply fund their e-wallet to easily deposit and withdraw from their Online Casino. Since
1999, NETeller is one of the most trusted alternative payment methods in the gaming industry.

Players rely on NETeller’s ease of security. NETeller users have a user ID,
account number, and password to ensure secure instant transactions from the comfort of home or work. NETeller users only need to enter their secure information (banking details, credit card information, etc.) once and this information is never shared with the thousands of sites that accept NETeller.

You’re security is NETeller’s priority.When you’re ready to deposit and win, NETeller is the best method. Player’s instantly transfer funds from their credit
card and NETeller’s instacash allows instant bank account transfers right into
your Casino account. The best part is your approved withdrawals are a

Stephen Lawrence and John Lefebvre, two founding members of Neteller, the online money transfer system were arrested in the United States on Monday.  The two men, who were not travelling together, were both arrested at different locations on American soil.

Lefebvre (55) was arrested in Malibu, California and Lawrence (46) who lives in the Bahamas was arrested in the U.S. Virgin Islands.   Both men are Canadian citizens.  The charges brought against the men were written in two criminal complaints unsealed in a U.S. District court in Manhattan on Monday.  They have been charged with money laundering, conspiring to transfer funds to promote internet gambling, which is outlawed in the U.S.

Both Lefebvre and Lawrence were two of the founding members who set up Neteller in 1999; the company began processing transactions in 2000.  The company is publicly traded in the UK and following the arrests, Neteller has suspended its shares until the situation becomes clear.

Lawrence, who was non executive chairman, stepped down in May 2006 to become a non executive director and then resigned from the company in October 2006.  Lefebvre resigned from his non executive director post in December 2005.  Both men hold substantial shares in Neteller through their own investment companies.

U.S. Attorney for the southern district of New York and one of the lead investigators in the case has been vocalising following the arrests saying “Internet gambling has become a multi billion dollar industry that derives a major portion of its revenues from United States citizens. Lawrence and Lefebvre knew when they took their company public that its activities, as well as those of the internet gambling companies it assisted, were illegal in the United States.”

Mark Mershon assistant FBI director made similar comments following the arrests say that “Internet gambling is a multibillion-dollar industry. A significant portion of that is the illegal handling of Americans’ bets with offshore gaming companies, which amounts to a colossal criminal enterprise masquerading as legitimate business. There is ample indication these defendants knew the American market for their services was illegal. The FBI is adamant about shutting off the flow of illegal cash.’

Neteller operates in over 160 countries to over 3 million customers and 3,500 merchants.  The company is the premier online money transfer system and reported over $7 billion of financial transactions last year.  Neteller excels in providing payment services to customers who are unable to perform transactions due to currency exchange, distance, and lack of trust or identity.

Following the adjustments of the U.S. laws at the end of 2006, Neteller shares took a nose dive and lost 79% of their value last year.

Lefebvre has been granted bail of $5 million and must surrender all travel documents, undergo pre trial supervision and will be confined to the central district of California.  Lawrence is currently attending his hearing.  If both men receive convictions, they could be facing up to 20 years in prison.

NETeller originated as an online e-wallet because of one simple fact, the internet is an untrustworthy place. Well now others are taking advantage of Neteller’s good name to try and take the money that NETeller protects, your money.

Online gambling portals are issuing warnings to all NETeller customers that online criminals are attempting to lure in unsuspecting NETeller customers to a fake NETeller site. On the fake site, customers will release all their private account details, divulging their information to these frauds.

Several portals have released information about a fake email, which claims to be from NETeller, the emails reads as follows:
 

 

“Dear Customer,
 
According to our registries, we have recently detected that your account has been accessed from different IP addresses. This could be happening because your computer’s IP address is dynamic and varies constantly or because you have used more than one computer to access your account.

Due to this event and in fulfillment with the current legislation, we have updated our computer systems to offer greater security to our clients, thus we will need you to access your account and verify its recent activity.

The security procedures require that you verify the activity in your account before December 11th 2006. Otherwise, passed (sic) this date, our automated computer security system will suspend your account indefinitely.

In order to access your account and to verify its activity, you must click on the link below:

- NETeller logo link -

We appreciate your help in this matter, as we work together for NETELLER to be a safe place to do business.

Customer Service Department

NETeller”

NETeller customers beware of this email. The link in the email contains a cloaked URL, and will take customers to a fake NETeller site, which appears no different than the real site. The fraudulent site will accept your account details, only to use this information to steal your cash from the real NETeller site.

After the United States Congress passed the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) in October, stocks for most online gaming companies plummeted. The UIGEA took down many other companies along with it, including online e-wallet companies such as NETeller, which counts an estimated 80% of their services going to online gaming sites. 

Currently, NETeller is carrying a nearly $400 million market cap. Right now NETeller has $200 million, cash, on their balance sheet, and through three quarters this year they pulled in $90 million Until the UIGEA goes into full effect, NETeller still has their current quarter, and the next two quarters. Analysts expect that these next three quarters should be the best so far in the company’s long history. While the majority of online gamers were located in the United States, 33% of NETeller’s new customers during the third quarter came from customers outside the US, and of the company’s 620,000 active users, 25% of those during the third quarter were also located outside the US. 

So what does this mean to NETeller stock holders? Assuming the company has a zero-to-marginal growth in upcoming quarters, and they keep the G&A costs at around $40 million annually, we can still subtract 75% of the company’s $250 million or more in yearly revenue and reduce their gross margins from 72% in the first three quarters to 70% and NETeller will still break even or see some growth. 

Aside the fact that revenues grew 9% sequentially and 48% in the third quarter alone, NETeller simply offers a service that customers want. The online gaming industry is counting on NETeller coming with them into the Asian and European markets, providing their phenomenal services world wide. And while the company has yet to fully recover from the UIGEA effects, the NETeller stock, at this price, is offering a nice chance to anyone looking to get in on a booming industry while the prices are nice and low.