Profit Warning is issued by NETeller

The well known payment processor, NETeller, has issued a profit warning just days after its announcement that it will no longer be processing payments for online gamblers in Canada from April 9th and in Turnkey from this week.

Non gambling transactions will still carry on being processed as usual in both countries, the online gambling industry is a key source of revenue for the company and NETeller predicts that the loss of Canadian business in this sector is “likely to have a material negative impact on the group’s results this year”.

Turnkey only represents a small percentage of groups business and may not prove to be the most prosperous market for online gambling after laws were passed in February outlawing certain types of online gambling.

NETeller also announced that there would be a loss of two hundred and fifty jobs in Canada and the UK.

They also announced that it “does not anticipate making further significant reductions in staff.”

Since January the company’s shares have been suspended, also in January its founders Stephen Lawrence and John Lefebvre were arrested on charges of conspiracy to transfer funds with the intent to promote illegal gambling.

When a company goes from doing something like accepting gambling payments to not accepting gambling payments they are taking a huge loss that is rarely ever recovered along the way. However, the government doesn’t care about that; instead they want you to follow rules and regulations that prohibit you from doing what your company is used to doing. They do not take into consideration the amount of money that you are losing in the process.

In this case the company is going from accepting the payments relating to gambling to not handling the payments. They are now only accepting non gambling related payments which mean that they are losing out on a lot of customers. As a result they have to cut back on jobs that people depended on. What I don’t understand is why the government can’t find a way to put their hand it so that everyone will be happy and no one will have to lose their job. Gambling isn’t like murder, no one is hurting anyone. Why can’t people do what they want to do with their money that they work hard for? It’s their money and if they want to bet their money on something they should be able to.

Casino News: Profit Warning is issued by NETeller

Profit Warning is issued by NETeller