When the United States Senate passed a bill in 2006 which made it illegal for banks and credit card companies to process online casino payments payment processing companies such as Neteller were not sure at the time how they would be affected by the new legislation banning online gaming in America. Under new rules brought in with the passing of the Unlawful Internet Gambling Enforcement Act 2006, gambling companies in the United States were forbidden to accept payment for any betting carried out on the internet.
This effectively meant that companies involved in the financial side of online casino gaming were held responsible for ensuring that internet casino transactions were not carried out involving online players in the United States.
Neteller is owned by the British payment company Optimal Payments which has its base on the Isle of Man. Neteller, an e-wallet was set up in Canada in 1999 and it operates worldwide and in several different currencies. Users can transfer money and if used on an online casino they can transfer winnings to their own bank account.
Most of Neteller’s income by 2005 was coming from online casino payment processing and much of this revenue originated from online casino players in the United States. However all of this ended in 2006 but now along with some major credit card companies, Neteller is preparing to return to the online gambling market in the United states.With moves being made in several American states to bring in legislation to allow intra state online gambling and with some types of online gambling legalised in New Jersey, Nevada and Delaware, Neteller along with Mastercard and Visa are working towards re- entering the American online gambling market. Recently, Neteller’s parent company, Optimal Payments Plc announced that Neteller would form a partnership with Bally Technologies, which provides casino systems, management and equipment services to online casinos. In this way both online gaming and payment services for Bally’s online casino clients would be integrated within a regulated market in the United States. Nevada’s Ultimate Poker website now accepts payment through Mastercard and Visa is in the process of setting up a system for its clients to recognise future legal online casino payment transactions.