NETeller PLC, the independent online payment processor business, has recently announced its withdrawal fro the Israeli online gambling market. The company has informed that it will no longer be accepting online transactions of any kind from Israeli residents.
After many months of changes and drawn out legal disputes, NETeller has resorted to continual risk profile and status assessment of the markets it is in operations with. According to the company's official press release earlier this July, "recent legal developments have increased the uncertainty regarding the legality around certain activities related to online gambling in the Israeli market. The Company has therefore concluded that the Group will no longer process transfers related to online gambling sites on behalf of Israeli resident customers".
Neteller will be limiting its services to Israeli residents in the very same way that it has done for US residents following the Internet Gambling Act 2006. However, Israeli held accounts will remain open for the continuation of non gambling related online transactions, including peer to peer transfers, and the transfer of funds to non gambling merchants. Additionally, local funding options for the NETeller e-wallet account will remain available to Israeli customers.
Israeli resident customers now have until Tuesday July 31st (11:59 pm GMT) before all online transactions to and from online gambling merchants will be ceased. The implementation of this "voluntary phased withdrawal of the payment services related to online gambling that it offers customers to the Israeli market" is most likely to be the result of a recent Tel Aviv court hearing (January 2007) regarding Israel targeted online gambling sites, originally against the Chief Executive Officer for Victor Chandler, Michael Carton.
The lower court ruling claimed that Carlton' Gibraltar online gambling website was purposely and specifically targeting Israeli citizens by advertising Hebrew language content and betting options for and against Israeli sports teams. The judge also ruled that the advertising of online gambling, now illegal in all of Israel, was a violation of the law. This reinforced stance against online gambling has clearly affected not only NETeller, but also many other gambling related companies.
Nevertheless, NETeller "the Israeli business of the group does not represent a material proportion of the group's overall customer base, revenue or profitability," and that it will continue to provide services to customers in other parts of the world in its regular manner – they will not be affected by these changes.
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