Home	Tutorial	Online Casino Reviews	Best Online Casinos	Casino Software	Casino News

Online Casino Gambling --- Casino News

What Did NETeller do Wrong?

At this point the fact that NETeller is under investigation in the United States is little surprise to anyone who follows the online casino industry. But many simply know that the company violated the 2006 Unlawful Internet Gambling Act, but the charges actually go beyond that because of the methods the company used to conceal transactions and process online casino money illegal through U.S. based financial institutions from offshore internet gambling sites.

For these reasons, NETeller’s offenses against the United States concerning online casino transactions are actually much more serious than violation of the UIGEA. NETeller faces criminal conspiracy charges for violation of Title 18, United States Code, Section 371.

Specifically:

(i) use the wires to transmit in interstate and foreign commerce bets and wagers on behalf of persons engaged in the business of betting and wagering, in violation of Title 18, United States Code, Section 1084;

(ii) conduct illegal gambling businesses, in violation of Title 18, United States Code, Section 1955;

(iii) conduct international monetary transactions for purposes of promoting illegal gambling, in violation of Title 18, United States Code, Section 1956(a)(2)(A); and

(iv) conduct an unlicensed money transmitting business, in violation of Title 18, United States Code, Section 1960.

The reason that the USAO decided to actually go after NETeller and the company’s cofounders is outlined by Garcia, a spokesperson for the case. Some of the facts that come into play in NETellers prosecution for illegal online casino gambling activities include:

(i) the seriousness and duration of Neteller's conduct involving the processing of billions of dollars of gambling transactions in violation of state and federal law, and

(ii) the involvement of senior corporate officers in the company's criminal conduct.

The decision then to enter into the Deferred Prosecution Agreement with Neteller, Garcia continued, was based on a variety of factors and considerations also set out in the Principles, including:

(i) the company's frank acknowledgment of its misconduct and its willingness to cooperate with the investigation; and

(ii) the company's remedial actions, including cessation of its participation in illegal gambling transactions involving persons located in the United States; implementation of procedures and controls to prevent its services from being used to conduct U.S. gambling transactions; retention of a monitor to ensure compliance with those procedures and controls; and disgorgement of $136,000,000 in criminal proceeds.