Issue N23, 2007

June 14, 2007

Neteller Suspends Payment of Funds… Again!

Contrary to what was promised by Neteller in its March 21 statement concerning the release of funds belonging to U.S. account holders within 75 days, the company has gone back on their word yet again. This week Neteller announced an extension of the freezing of the funds, without a specific date been given for their release. In January of this year, the electronic banking company announced that it was freezing all funds that belonging to U.S. account holders, following an investigation into the company’s operations by American authorities and the arrest of two of its founding members.

The company has regularly issued statements regarding the status of these frozen accounts, including one in March, which guaranteed that the money would be returned when the investigation into their case was over. A 75-day time frame was given; however, this week’s statement cancelled that time frame. Another blow dealt to U.S account holders – especially those with a large amount of money in their accounts – is that Neteller has emphatically announced that it would not be paying interest on money that was frozen since January: “In accordance with Neteller's terms of use, no interest on account balances will be paid," the statement read. It is expected that the investigation will be resolved sometime in mid-July, although nobody is willing to give an exact date. Neteller said that it would then implement a plan to release funds.

Company shareholders are less optimistic about what the future holds for them. Neteller has placed all shares in limbo due to the “continuing uncertainties that the company faces”. It has hinted, though, that trading will resume when matters are sorted out with U.S. authorities. When that will be is anyone’s guess.

Playtech Adds Another Feather to its Cap

An agreement was recently signed between the software giant, Playtech and two other big names in the online casino industry – Guardian Gaming (GG) Limited and Shuffle Master Games. The agreement was in the form of an intellectual property sub-license contract. Essentially, the Malta-based Guardian Gaming has the exclusive rights to sublicense certain Shuffle Master games online. Under the new agreement Playtech subscribers can access exciting Shuffle Master games, such as ‘Let it Ride’, ‘Dragon Bonus’ and ‘Ultimate Texas Hold ‘em’. This new arrangement means that Playtech has expanded its games portfolio significantly and ensures that this company remains one of the leading software providers in the industry.

Poker Group, Purple Lounge, Launches New Online Casino

The popular poker group, Purple Lounge, announced this week that it was expanding its operations to offer its subscribers the opportunity to play at its newly launched online casino. 30,000 registered poker players will now be able to choose from over 300 top-of-the-range games and complement their poker play with other classic online casino activities. Even better news is that the new Purple Lounge site will be powered by Microgaming, one of the leading software providers in the online gaming industry.

Besides the games that Purple Lounge players can access, they will stand in line to win Microgaming’s dazzling multi-million progressive jackpots as the new site will automatically link with the company’s jackpot network. A spokesman for Purple Lounge said: “The roll out of our new casino platform is another step towards offering our players the best online gaming and lifestyle experience available.”

Poker Player’s Association Backs New U.S. Skill Game Act

When the Unlawful Internet Gambling Enforcement Act was signed into law last year, many felt that games that depended more on skill than luck, such as poker, should not have been included in the new act. However, the act was wide sweeping and many poker sites were forced to close their doors to U.S. customers and seek alternative markets in other parts of the world. Since then, poker players and other skill game enthusiasts have been waging a battle on a number of fronts in order to get these type of games recognized as non-gambling pastimes and not on the same level as games such as roulette and slot machines that rely mostly on luck.

Recently, Florida Democrat, Robert Wexler proposed a bill called the Skill Game Legislation Act, which would essentially exclude particular skill games from the UIGEA. Bridge, chess, poker and mah-jongg are just some of the games that have been banned since the United States sought to make online gambling illegal in the country last year.

This week, the widely popular Poker Player’s Association, whose members number over half a million, announced that it was enthusiastically backing Robert Wexler’s new bill. “Congressman Wexler’s bill is a positive development for the millions of American poker players who enjoy one of our nation’s great pastimes,” said the chairman of the PPA, Senator Alfonse D’Amato.