Vin Narayanan
Vin Narayanan
Vin Narayanan is the former managing editor at Casino City and has been involved in the gaming industry for over a decade Vin is currently based in Hong Kong, where he runs his own consultant group and works as head of gaming and public relations for Mega Digital Entertainment Group.

Before joining Casino City, Vin covered (not all at the same time) sports, politics and elections, wars, technology, celebrities and the Census for, USA WEEKEND and CNN.

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NETeller revenue drops 54%

25 July 2007
By Vin Narayanan

NETeller revenue has declined 54% as a result of its withdrawal from the North American market, the company announced today. The popular payment processor took in $32.7 million in the first quarter of 2007 compared to $71.8 million in the final quarter of 2006.

The company's first quarter results include approximately $14 million from American customers collected prior to its withdrawal from the U.S. NETeller's average daily receipts have slipped 70% during the same time period, from $5.75 million to $1.71 million.

NETeller exited the American market on Jan. 18 after its co-founders, Stephen Lawrence and John LeFebvre, were arrested by U.S. authorities and charged with money laundering. Both Lawrence and LeFebvre pleaded guilty to conspiracy charges earlier this month and face maximum sentences of five years in jail.

The company stopped processing online gambling transactions for Canadians in April.

Excluding North America, NETeller reports it has an active customer base of 99,575 – which is slightly higher than the 91,381 it had as of Dec. 31, 2006. And as of March, 71,493 of their active customers came from Europe. Before exiting North America, NETeller had 385,781 active customers.

The company also says it has $213.5 million in cash. But that amount doesn't account for the $60 million seized by U.S. authorities or the remainder of the $136 million it agreed to pay the U.S. in a settlement reached last week.

NETeller still owes U.S. customers about $94 million, but says the repayment of that money won't affect the company's cash position.

The process to return funds to U.S. customers is expected to begin by the end of the month, the company says.

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