Neteller, the e-wallet of choice for Americans during the online poker boom, is looking to make a return to the States. Six years after the payment processor exited the U.S. market after running afoul of the Department of Justice, it sees online gaming legislation at the state level as a way back in.
When online poker was alive and well in the United States in the early-to-mid 2000’s, Neteller was hands-down the most popular way for poker players to move funds in and out of their poker accounts. It was extraordinarily easy. Players signed up for a secure Neteller account and linked it to a bank account. Funds would be added to the Neteller account from said bank account and held there until they were needed for deposit into a poker account. Fund transfers to poker rooms were instant, allowing players to take advantage of promotions like reloads as soon as they launched. Withdrawals from poker rooms sometimes took a few days, but they were often quick. Money sitting in a Neteller account could then be filtered back to the bank account at any time.
Players could also transfer money to each other via Neteller. The whole process was fast and simple and every poker room accepted it.
Unfortunately, while some poker rooms continued to serve U.S. customers after the UIGEA passed in 2006, Neteller was quickly targeted by the U.S. government. In 2007, its two Canadian founders were arrested and player funds were frozen. In July of that year, the company came to an agreement with the government and funds were released to customers, but Neteller officially left the U.S. market.
Now, Neteller’s parent company, Optimal Payments, is eyeing a return. Joel Leonoff, president and CEO of Optimal Payments, told The Financial Times that its previous mess with the DoJ should not be too big of a deal, saying, “There are different levels of compliance required for suppliers versus merchants [operators]. Merchants have a much more onerous regulatory requirement to adhere to.”
Optimal Payments has already partnered with Caesars Interactive Entertainment, so it is position to get into the online poker market in Nevada, as well as Delaware and New Jersey. It is talking with other brick-and-mortar gaming companies, as well.
While most expect some sites to go live in at least Nevada this year, Leonoff is already looking ahead to 2014 as the year when things will really take off. “We think 10 states will offer entry to gaming,” he said, adding that he thinks California is next.
Of course, legalization of online poker on the federal level would be the best possible outcome for poker players; Leonoff sees it as a possibility, calling it “the holy grail for gaming.”
