NETeller Running Out of Time on AIM

Online payment processing company NETeller Plc has had a horror nine months, and the next fortnight will be a crucial period for the struggling company.

As the online gambling industry exploded over the last five years, NETeller rose to prominence, becoming the leading online gambling payment processor when PayPal stopped processing online gambling transactions after eBay acquired the company. Competitors such as Click2Pay and ePassporte entered the online gambling transaction market, but NETeller retained massive market share as online poker site and online casinos flooded into the market.

Following the passing of the Unlawful Internet Gambling Enforcement Act (UIGEA) in the United States last year, the company remained in the US initially but quickly withdrew when the US DoJ arrested the company's founders, Stephen Lawrence and John Lefebvre on conspiracy charges. Both have recently taken guilty pleas and face up to five years imprisonment and large fines when sentenced later this year.

When withdrawing from the US and Canadian markets, NETeller requested trading in their shares on the Alternative Investment Market be suspended. Trading in NETeller shares has now been suspended since January 16. And now NETeller is at the crossroads.

The online gambling news website GamingIntelligenceGroup.com published an interesting article pointing out that time is now running out of NETeller on the AIM. In accordance with rule 41 of the AIM, NETeller must resume trading on its shares next week or face cancellation of its listing.

NETeller would be loathe to unfreeze trading on its shares whilst so many issues remain unsolved. The US DoJ has frozen the account balances of thousands of NETeller's US customers pending further investigation. These funds remain frozen and NETeller's self-imposed deadline on returning the funds has come and gone.

NETeller will be hoping for a last-minute settlement with the US Attorneys Office to allow the resumption of trading on its shares on the AIM. If NETeller fails to secure an agreement with the USOA and is delisted from the AIM, it could be the beginning of the end for a company which was riding on top of the online gambling industry less than a year ago.

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