NETeller Draws Back from Israeli Online Gaming Market

Neteller announces that it will no longer accept online gambling transactions of any sort from Israeli residents reasoning their back out by explaining that the recent legal developments have increased the uncertainty regarding the legality around certain activities related to online gambling in the Israeli market.

The Company has consequently confirmed that the Group will not continue to process transfers related to online gambling sites for the customers in Israel. So, Neteller will stop to accept transactions from the Israeli gambling market exactly the same way that it has done for US residents after the Internet Gambling Act 2006 after was applied.

Still, Israeli actual accounts will continue to be open for non gambling related online transactions. The accounts that will remain open include peer to peer transfers, and the transfer of funds to non gambling merchants. For the Israeli customers the NETeller e-wallet account will remain also accessible. All online headed for and from online gambling merchants will be ceased starting August 1st.

Neteller’s decision to back out from the Israeli gambling market may be also influenced by a recent Tel Aviv court hearing held in January concerning Israel targeted online gambling sites, initially against the Chief Executive Officer for Victor Chandler, Michael Carton

The lower court ruling alleged that Carlton' Gibraltar online gambling website was deliberately and exclusively aiming Israeli people by advertising Hebrew language content and betting options for and against Israeli sports teams. Also, it was claimed that the publicity of online gambling which is now illegal in all of Israel, was a law violation.

This unbreakable standpoint against online gambling has undoubtedly affected not only Neteller, but also many other gambling companies. However, the Israeli customers do not represent a material section of the group's overall customer base, revenue or profitability so they will continue to offer the same quality of services for clients all over the world.