Friday, February 16, 2007

Neteller Eliminates 250 Jobs After Withdrawal From U.S. -

"Neteller PLC is planning to cut about 250 jobs, or more than a third of its staff, as a result of the U.K. payment processor's decision to withdraw from the online gambling market in the U.S.
Neteller said Friday it will eliminate about 220 members of its staff across all levels, including security, marketing and IT support. The reductions are focused on its operations in Calgary. The company also expects to cut about 30 jobs in the U.K.
Neteller said it will employ about 425 people following the cuts, down from a peak of over 1,000 during 2006. The company is also considering the sale of partial lease of some facilities in Calgary.
Neteller, who processes electronic money transfers, announced last month it was ceasing to handle gambling transactions from U.S. customers because of restrictive legislation and uncertainties about regulations, abandoning 65% of its worldwide business in the process.
The company's move followed the arrest by U.S. authorities of its two Canadian founders, who were charged with funneling billions of dollars in gambling proceeds to overseas betting operations.
The industry was taken by surprise last year when Congress added a provision to a bill aimed at improving port security to make it illegal for banks and credit card companies to settle payments to online gambling sites, effectively banning online gaming. President Bush signed the bill into law Oct. 14."

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