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Suffering continues for online casino players in the United
States. Those patrons that held online casino accounts with NETeller are
receiving a lesson in patience. A federal investigation is tying up online
casino accounts provided by the online payment service and the wait just got
longer.
NETeller was once championed as the most popular internet
money-transfer system among online casinos. Now the decision is being made
whether to indict co-founders Stephan Lawrence and John Lefebvre. The delay for
online casino account holder occurred Wednesday when the US Attorney’s Office
for the Southern District of New York extended the deadline for the decision
until March 16.
Lefebvre and Lawrence were arrested in January of this year
on a charge of conspiracy to transfer funds with the intent o promote illegal
gambling.
The US government has frozen all NETeller accounts held by
US patrons until all legal matters have been cleared. This represents another
delay for online casino guests hoping for a refund of their money.\
NETeller estimates that US law enforcement has put a hold
on about $55 million in US accounts.
The company’s website has a posting that reads, “As a
result of the restrictions placed by third parties, court-ordered seizures and
related legal concerns, NETeller is unable to make payments to US customers.”
According to Neil Donovan, a FBI agent, the accounts are
being held as evidence for a possible future case against NETeller. He was
unable to make any predictions as to when online casino customers might see
their money again.
NETeller provides an array of services. Not only do they
do business with financial institutions and merchants, they also permit online
casinos to transfer funds collected from US online casino guests to bank
accounts outside the United States. Last month, NETeller discontinued its
service to US online casino traffic. US online casino business made up
two-thirds of NETeller’s business.
Last October, President Bush signed a law forbidding the
use of credit cards, checks, and electronic fund transfers for online casinos.
Over half of the bets placed in US were made to offshore online casinos. Most
online casinos in the $10.6 billion internet gambling industry are operated off
shore, away from the influence of American law enforcement.
Ken Dreifach, an Internet attorney, fears that the
jeopardized future of NETeller will force consumers to resort to less reliable
money-transfer services.
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