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Neteller withdraws from gaming transactions for US market, Founder arrested in US.

Last post 01-23-2007 5:03 PM by docdave0. 10 replies.
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  • 01-19-2007 1:06 AM

    • Jon
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    Neteller withdraws from gaming transactions for US market, Founder arrested in US.


    As I have said in the past, watch what happens with Neteller. Something has happened and it is big. Reading there fact the following changes happened, they no longer accept transfers to online gaming site, withdrawals included and Neteller has temporarily stopped taking new members from the US.

    The US government has decided it seems to play hard ball. Steve Lawrence and John Lefebvre the founders of Neteller, Both arrested and charged in the United states with money laundering and with the “creation and operation of an Internet payment services company that facilitated the transfer of billions of dollars of illegal gambling proceeds from US citizens to the owners of various Internet gambling companies located overseas.”. Both man are Canadian citizens. Both man left the company last year and are no longer involved with Neteller.

    This news is both good and bad. It is bad, because the US government is jailing and charging people for creating a successful and legal business in another country. Good because it is couple of people who will likely have the resources for a full defense of the charges. A defense that is likely to include an all out legal offense on the legitimacy of the law. This is good because this is a criminal case were the people involved will be fighting for there freedom, not just a market share. Good because it shows just how absurd this all is. I wish Mr Lawrence and Mr. Lefebvre all the best success in their fight.

    This is “the case” that is going to decide the fate of online gaming in the United States. Two Canadians, whom founded a company on the Isle of Man, have been drafted to defend our freedoms from our corrupt government. They deserve all the support that we can give them.



    A good post is a supple and yielding thing. It is meant to be argued with and challenged. It is a battle ground for ideas and should show some evidence of a fight or at least some preliminary skirmishes. It is good for igniting minds. It is not the be-all and end-all of a balanced and productive life, but it can touch off needed thoughts and actions.

    Post Edited (Jon) : 1/19/2007 1:09:13 AM GMT

    A good post is a supple and yielding thing. It is meant to be argued with and challenged. It is a battle ground for ideas and should show some evidence of a fight or at least some preliminary skirmishes. It is good for igniting minds. It is not the be-all and end-all of a balanced and productive life, but it can touch off needed thoughts and actions.
    • Post Points: 91
  • 01-19-2007 6:03 PM In reply to

    Re: Neteller withdraws from gaming transactions for US market, Founder arrested in US.

    [quote="Jon"]This is “the case” that is going to decide the fate of online gaming in the United States. Two Canadians, whom founded a company on the Isle of Man, have been drafted to defend our freedoms from our corrupt government. They deserve all the support that we can give them.


    Heh, for some reason when I read this I picture it in a dramatic tone set to fading music at the end of a movie preview. Two Canadians.... who founded a company on the Isle of Man.... have been drafted to defend our freedom. Coming this February.


    I don't think the Neteller thing is good news in any way. Even if these guys win the case, the government is apparently somewhat determined to enforce this law. I almost hope they lose the case, so the government can say "OK good, got 'em" and we can just keep playing musical ewallets rather than see the government say something like "Hmm, maybe we should start blocking IPs since this isn't working."

    I like Neteller. Click2pay is basically the same thing, but Neteller is better. I think some dead money will definitely be saying "aw *** it" now that things no longer appear convenient. Anyone have a figure on what % of deposits used Neteller? But I don't think it will be long before most players figure out that it's not too tough to register with another ewallet, and that the sky is still blue. At least, I hope. As long as all the government plans to do is arrest people and force ewallets' hands one by one, then I'm not too worried. There will always be market share for someone to take the risk. Plus, Neteller is publicly traded. It should not be tough for a private ewallet to last (just by keeping their high ranking officials out of the U.S.), and allow people to be used to something again.

    Like I said, I just hope arrests like these don't leave the government unsatisfied, and force them to start blocking IPs or making it more expressly illegal or whatnot. I hope I'm not being blindly optimistic, but I really don't think they will. It just seems too flagrant. It's tough to keep up the freedom-loving shtick when you block your citizens access to certain websites. I think they realize a ton of people like to do this, and might not stand for it if it actually gets taken away. They're content with being able to arrest people and appeasing the voter base in the process and whatnot.
    • Post Points: 5
  • 01-19-2007 7:53 PM In reply to

    • Jon
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    Re: Neteller withdraws from gaming transactions for US market, Founder arrested in US.

    Andrew, it is not going away by itself. It is not just going to blow over and government will forget about it so we can all go about our merry way playing poker in our underwear. People are not going to jump through hoops to make deposits into online card rooms. The new law and attitude of our puritain government has burst the bubble. They are shuting it down, it is just a question of time. Your only hope is that the presucution of the neteller guys fails, with precedence that overturns the law.
    The way that many of the card rooms laid down and died without a fight, was a good indication of the industries willingness to test this law. Now two guys with big money, associated with a lot of people with a lot of money at stake, have been arrested. It is the best thing that would could happen with this law. It means someones got to fight and fight hard or they are going to jail for a very long time. You can bet (dont do it online) that these guys are going to go beyond just defending the current charges, they are going to take it the full measure so that they don't get arrested again.
    You may have noticed if you read a few of the articles out there, that the NTG (Neteller guys) were not arrested under the new statue passed in late september, they were busted for money laundering and violating the wire act. The things they were arrested for were before the new law, were essentially the same charges that the busted a couple of offshore sport betting sites for. The government is betting the new law expands these definitons of money laundering, RICCO stuff (you know Organized crime, what they can call the mob), terroist activities and a whole gambit of cluster *** bullshit, so that they can really threaten the people engaged in the business. If the governments wins against these guys, it will shut online gambling down completly in the US. You will not be able to get a penny in an envelope to an online poker room. If you get fancy and work out ways to get deposits to a card room, you and everyone involved in your end play will be at huge legal risk.
    Yeah it is good, because this needs to be resolved, this is the one to watch. This case will either put the gevernment in check, or totally open the flood gates for the destruction of online gaming in the US. The main point is that the issue needs to be forced else poker would just be dieing a slow death anyway.

    You said:
    the government is apparently somewhat determined to enforce this law
    They are not determined at all to enforce this law. The government is determined to end online gaming and this law, is just one piece of it. The NTG's were not charged under the new law. The new law is simply a sturctural member of the US governments assualt on online gaming.

    [quote="Andrew"]
    I don't think the Neteller thing is good news in any way. Even if these guys win the case, the government is apparently somewhat determined to enforce this law. I almost hope they lose the case, so the government can say "OK good, got 'em" and we can just keep playing musical ewallets rather than see the government say something like "Hmm, maybe we should start blocking IPs since this isn't working."

    A good post is a supple and yielding thing. It is meant to be argued with and challenged. It is a battle ground for ideas and should show some evidence of a fight or at least some preliminary skirmishes. It is good for igniting minds. It is not the be-all and end-all of a balanced and productive life, but it can touch off needed thoughts and actions.
    • Post Points: 5
  • 01-20-2007 2:32 AM In reply to

    Re: Neteller withdraws from gaming transactions for US market, Founder arrested in US.

    Say the NTG lose the case. What exactly do you think will happen next?

    What will be so hard about people making a click2pay account? A couple years ago nobody knew what Neteller was. Banks started rejecting credit cards, and the websites hyped up this "Neteller" thing, and people got used to it. Do you think no ewallet will take the chance? They'll just leave that market share sitting on the counter?

    Nothing changed over night. All that changed was that the NTG decided to cross the arbitrary line. Now Neteller decided to protect themselves. I don't see any reason for other companies to feel a need to stop doing business, as long as they're willing to keep their officials outside of the Land of the Free (:p). Why exactly do you think they'll give up the market share? Do you think the U.S. Army is going to invade their country and arrest them? These sites know that they're doing things the U.S. government considers illegal. Adding legal precedence is certainly not a good thing, but it will not be enough to make every friggin' ewallet run away from the market share. Hell, Neteller is fucking publicly traded and they stuck in there until the arrests were made.

    The government is determined to end online gaming and this law, is just one piece of it. The NTG's were not charged under the new law. The new law is simply a sturctural member of the US governments assualt on online gaming.


    You are aware that Harrah's has donated almost $50K in campaign finances to Frist, right? Keep in mind, the government is run by human beings. It's not a magic wand that can just point a finger and do as it pleases. "The government" probably has no clear idea what exactly it wants to do. But to whatever extent it has a clear vision, I would guess that vision is most likely to regulate the industry and allow the big corporations (like Harrah's) to be in the game.
    • Post Points: 5
  • 01-20-2007 3:32 AM In reply to

    Re: Neteller withdraws from gaming transactions for US market, Founder arrested in US.

    I'd like to qualify my opinions by saying that I really haven't been following this too closely. I don't feel strongly that I'm right and Jon is wrong. The stuff I'm saying is basically my off the cuff assessment. Jon's posts, while probably more substantive than mine, leave me with logical gaps to fill. Hopefully for the sake of poker, Jon does not have good answers to the questions I asked.
    • Post Points: 5
  • 01-20-2007 5:08 AM In reply to

    • Jon
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    Re: Neteller withdraws from gaming transactions for US market, Founder arrested in US.

    [quote="Andrew"]
    Say the NTG lose the case. What exactly do you think will happen next?
    My guess is that the US attorney General will start issuing warrents for other executives at other proxy services, perhaps online gaming executives. Then perhaps failing to arrest these people will start extradiction processes with countires we have extradiction treaties with.


    What will be so hard about people making a click2pay account? A couple years ago nobody knew what Neteller was. Banks started rejecting credit cards, and the websites hyped up this "Neteller" thing, and people got used to it. Do you think no ewallet will take the chance? They'll just leave that market share sitting on the counter?

    Basically yep, the US will go after them. Can they get em is another question, who knows.

    Nothing changed over night. All that changed was that the NTG decided to cross the arbitrary line. Now Neteller decided to protect themselves. I don't see any reason for other companies to feel a need to stop doing business, as long as they're willing to keep their officials outside of the Land of the Free (:p). Why exactly do you think they'll give up the market share? Do you think the U.S. Army is going to invade their country and arrest them? These sites know that they're doing things the U.S. government considers illegal. Adding legal precedence is certainly not a good thing, but it will not be enough to make every friggin' ewallet run away from the market share. Hell, Neteller is fucking publicly traded and they stuck in there until the arrests were made.

    I dont know if you are missing this point or not, but the US has succedded in creating an enviorment, with the downfall of Neteller, that is not safe for online poker players. Or you going to put your money through a proxy you know nothing about? Maybe, but will you put as much as you did before, will others? No, the market is screwed, it is now small time, the money supply is gone. It is not coming back unless this law goes away, this law is not going away on its own. Also note, the US can go after these new proxies one at a time. They will be able to intercept mail to them, they will be able to block wire transfers to them. Virtually any transaction to a proxy that originates in US territory can be stopped. There is not going to be a US market for these new proxies to get at. I know you think that you will be able to get around all this, someway, and perhaps you will. But others will not, those others you have been beating regularly, and if enough of you do, the government can if they win against the NTG's, they will be able to easily expand there powers of enforcement, without any new law written, to include players. IT is IMHO critical to the future of online poker that the NTG's walk away from this with the lawyers sueing the gov for damages. If the government win this case you can kiss goodbye any possibility of new legeslation that would make online poker taxed and regulated. If the government losses, there are no gurantess, but a lot more things like regualtion become more likely. (third failed law to ban online gambling is a charm)

    I had hoped from day one that neteller would be the one to take this issue the full legal measure, they seemed the most logical choice after all the publicly traded gaming sites folded thier hands, and the others dont give a *** becasue they are picking up new market share. I think it sucks that the AG did not do this in a civilized manner, but I am gald that the issue is now going to be tested, and I am really glad that it is a large company that has the resources to take the full measure is the one in the hot seat.

    The government is determined to end online gaming and this law, is just one piece of it. The NTG's were not charged under the new law. The new law is simply a sturctural member of the US governments assualt on online gaming.



    You are aware that Harrah's has donated almost $50K in campaign finances to Frist, right? Keep in mind, the government is run by human beings. It's not a magic wand that can just point a finger and do as it pleases. "The government" probably has no clear idea what exactly it wants to do. But to whatever extent it has a clear vision, I would guess that vision is most likely to regulate the industry and allow the big corporations (like Harrah's) to be in the game.

    Um maybe, that is a possibility, that it is a tactic that will lead to regulation. If I was making a bet on it I would bet not.
    A good post is a supple and yielding thing. It is meant to be argued with and challenged. It is a battle ground for ideas and should show some evidence of a fight or at least some preliminary skirmishes. It is good for igniting minds. It is not the be-all and end-all of a balanced and productive life, but it can touch off needed thoughts and actions.
    • Post Points: 5
  • 01-23-2007 3:19 PM In reply to

    • docdave0
    • Top 75 Contributor
    • Joined on 07-12-2004
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    Re: Neteller withdraws from gaming transactions for US market, Founder arrested in US.

    I've been out of the loop for a while, and didn't realize Neteller was going down. So, what does that mean if you have money in an account there? I just noticed that a withdrawal I posted on 1/16 is still pending. Admittedly, it is very small money compared to what you guys play with every day, but am I just screwed out of this money? Also, I have some in other sites that I deposited with Neteller that I guess I won't be able to withdraw to there. I guess I'll have to open a Click2pay account...
    • Post Points: 5
  • 01-23-2007 3:37 PM In reply to

    • Than
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    Re: Neteller withdraws from gaming transactions for US market, Founder arrested in US.

    Naw...your money is safe. Your withdrawal is likely pending because of the logjam of withdrawals. But yes you will have to reroute your money that is currently onsite. -Than


    http://content.neteller.com/content/en/member_businessupdate.htm
    • Post Points: 5
  • 01-23-2007 5:03 PM In reply to

    • docdave0
    • Top 75 Contributor
    • Joined on 07-12-2004
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    Re: Neteller withdraws from gaming transactions for US market, Founder arrested in US.

    Yeah, I read the "US Member Update." It's the "circumstances beyond our control....trus us" line that makes me nervous. I hope it's just a logjam. The alarmist in me sees these guys going" heck, I'm going to jail anyway, might as well go bury the cash somewhere..." Maybe Dan Brown will write a book about it, then Oliver Stone will do the movie.
    • Post Points: 5
  • 10-16-2007 11:32 AM In reply to

    Re: Neteller withdraws from gaming transactions for US market, Founder arrested in US.

    [quote="Jon"]This is “the case” that is going to decide the fate of online gaming in the United States. Two Canadians, whom founded a company on the Isle of Man, have been drafted to defend our freedoms from our corrupt government. They deserve all the support that we can give them.


    Heh, for some reason when I read this I picture it in a dramatic tone set to fading music at the end of a movie preview. Two Canadians.... who founded a company on the Isle of Man.... have been drafted to defend our freedom. Coming this February.


    I don't think the Neteller thing is good news in any way. Even if these guys win the case, the government is apparently somewhat determined to enforce this law. I almost hope they lose the case, so the government can say "OK good, got 'em" and we can just keep playing musical ewallets rather than see the government say something like "Hmm, maybe we should start blocking IPs since this isn't working."

    I like Neteller. Click2pay is basically the same thing, but Neteller is better. I think some dead money will definitely be saying "aw *** it" now that things no longer appear convenient. Anyone have a figure on what % of deposits used Neteller? But I don't think it will be long before most players figure out that it's not too tough to register with another ewallet, and that the sky is still blue. At least, I hope. As long as all the government plans to do is arrest people and force ewallets' hands one by one, then I'm not too worried. There will always be market share for someone to take the risk. Plus, Neteller is publicly traded. It should not be tough for a private ewallet to last (just by keeping their high ranking officials out of the U.S.), and allow people to be used to something again.

    Like I said, I just hope arrests like these don't leave the government unsatisfied, and force them to start blocking IPs or making it more expressly illegal or whatnot. I hope I'm not being blindly optimistic, but I really don't think they will. It just seems too flagrant. It's tough to keep up the freedom-loving shtick when you block your citizens access to certain websites. I think they realize a ton of people like to do this, and might not stand for it if it actually gets taken away. They're content with being able to arrest people and appeasing the voter base in the process and whatnot.
    • Post Points: 5
  • 10-16-2007 11:33 AM In reply to

    Re: Neteller withdraws from gaming transactions for US market, Founder arrested in US.

    Say the NTG lose the case. What exactly do you think will happen next?

    What will be so hard about people making a click2pay account? A couple years ago nobody knew what Neteller was. Banks started rejecting credit cards, and the websites hyped up this "Neteller" thing, and people got used to it. Do you think no ewallet will take the chance? They'll just leave that market share sitting on the counter?

    Nothing changed over night. All that changed was that the NTG decided to cross the arbitrary line. Now Neteller decided to protect themselves. I don't see any reason for other companies to feel a need to stop doing business, as long as they're willing to keep their officials outside of the Land of the Free (:p). Why exactly do you think they'll give up the market share? Do you think the U.S. Army is going to invade their country and arrest them? These sites know that they're doing things the U.S. government considers illegal. Adding legal precedence is certainly not a good thing, but it will not be enough to make every friggin' ewallet run away from the market share. Hell, Neteller is fucking publicly traded and they stuck in there until the arrests were made.

    The government is determined to end online gaming and this law, is just one piece of it. The NTG's were not charged under the new law. The new law is simply a sturctural member of the US governments assualt on online gaming.


    You are aware that Harrah's has donated almost $50K in campaign finances to Frist, right? Keep in mind, the government is run by human beings. It's not a magic wand that can just point a finger and do as it pleases. "The government" probably has no clear idea what exactly it wants to do. But to whatever extent it has a clear vision, I would guess that vision is most likely to regulate the industry and allow the big corporations (like Harrah's) to be in the game.
    • Post Points: 5
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