Online Poker Payment Processors Release Statements

Both FirePay and Neteller, two of the most popular payment processors for online poker players, recently released brief statements to address the issues surrounding the Unlawful Internet Gambling Enforcement Act. The statements are below.

FirePay:

"The Act does not define `unlawful Internet gambling` nor does it make unlawful any activities by financial institutions that are not themselves gambling businesses. The Act directs the United States Federal Reserve and the Department of the Treasury to develop regulations that would direct financial institutions to identify and block certain types of financial transactions connected with unlawful Internet gambling. The enactment of the Act will have a significant negative impact on the business and results of operations of FirePay. "

"FirePay`s Board is evaluating the situation and will provide an update when appropriate."

Neteller:

"It is currently unclear how NETELLER, a European company, with no assets, presence or employees in the US, would be affected by this bill. Once the regulations have been written, NETELLER will have a clearer view of which companies are affected, how those companies will be expected to comply, and any possible resulting impact on NETELLER and its US facing business.”

"NETELLER continues to operate its business as normal.”

What can online poker players take from these statements? Not much, really. They could basically be read as, “Well, we don’t really know what the deal is yet, but we’ll let you know when we do.”

Both companies have no doubt, however, that no matter what, the recent U.S. legislation will hurt their businesses, even if the companies themselves stay open to American customers. After all, they can’t control what the poker rooms do, and if the online poker rooms close their doors to the U.S., then Neteller, Firepay, and the like will lose customers.

Originally published October 9, 2006