Neteller Relocating from Canada to Isle of Man

[Phaedrus]

Isle Of Man Attracts Another E-Gaming Industry Player

by Jason Gorringe
TaxNews.com

Attracted by the Isle of Man’s regulatory structure, Canadian online gambling payment processing firm NETeller, which listed on London’s Alternative Investment Market this month and was the biggest AIM listing this year, has announced its decision to relocate to the island.

NETeller, a Canadian company, provides online payment technology for some of the biggest betting sites in the UK, including William Hill and Ladbrokes. The firm said its decision to relocate to the Isle of Man was motivated by the need to find a jurisdiction where regulation is flexible and internet gambling is legal.

NETeller is the latest in a string of companies operating in the gaming sector who have moved their headquarters to the island, citing the favourable regulatory structure, tax benefits and outstanding telecommunications infrastructure.

Paddypower and Chronicle, two of the largest players in the online sportsbetting sector have recently acquired licenses and moved their operations to the island. IncaGold, the computer games licensing and development company, earlier this year relocated to the Isle of Man from Switzerland.

The developments have followed in the wake of the appointment of John Gilmore as the Isle of Man’s E-Gaming Ambassador in November 2003, whose mandate is to develop and promote the island’s e-gaming sector.

“Following our listing on the Alternative Investment Market, which was one of the largest new technology listings in Europe since March 2000, we have great plans for growth and we look forward to employing many more on Island to help develop the business,” noted Gord Horman, Chief Executive of NETeller, adding:

“Not only are the Isle of Man’s tax benefits and regulatory environment suitable for NETeller, but it is also a great place to live and bring up a family.”

 

[OMNIVOROUS FROG]

The British again...Am I seeing a trend? OF

 

[D2bets]

Ths seems like good news. No more worrying about the US pressuring Canada to pressure Neteller.

 

[oldmantime]

In some ways it does seems like good news, but the State of Maryland --the last I heard does not care. Any new news?

 

[Phaedrus]

It's great news for Neteller and for their clients. Ever since Neteller began to focus substantially all of its efforts on the gaming industry they have been at a theoretical risk to interventionist policies in Canada and the U.S. Moving to Manx, while not completely eliminating this possibility, limits it to instances where Neteller would likely already be cooperating without an edict from the state, such as in major criminal cases, farud, etc.

Read more about Isle of Man as an advantageous place to do offshore business at Law & Tax News' excellent resource page here.


Phaedrus

 

[Woody0]

While Ladbrokes will accept NETeller for clients who have accounts in one of the 4 currencies NETeller operates: US and CAN $, GBP and Euro; William Hill states on it's web site that NETeller is only available to US clients.

For those who think otherwise Canada is a sovereign nation, a fact the George W. acknowledged last week when he met the Canadian Prime Minister. Canada has privacy legislation that protects against the kind of fishing expedition that the NY State AG launched against PayPal.

The article does not clarify whether NETeller is moving head office and closing down in Calgary, opening a branch office in I. of M. or opening head office in I. of M. and keeping branch office in Calgary. From a company perspective it would make sense to service European clients in Europe and North American clients in Canada. Expect an office to open in Asia in the next year or two.

 

[Dante]

great news..IMO also

 

[TheGeneral+]

Time will tell the benefits. Just remember that Neteller is not a bank. Do not treat it as such.

 

[RPM]

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by D2bets:
Ths seems like good news. No more worrying about the US pressuring Canada to pressure Neteller.<HR></BLOCKQUOTE>

wouldnt it be even easier for the us to pressure the isle of man? and if not pressure, then bribe...

 

[Dante]

same could be said for all of offshore gaming RPM...they could bribe anyone for info...

I guess i just refuse to go thru life paranoid about it..

 

[theswami]

I wonder what impact this move will have on the debit card.

 

[Tico]

So far... the debit card situation is NOT LOOKING ALL THAT GREAT... I LOST about $45 when I went to withdraw some money from my Neteller account into the NEteller Debit Card yesterday.

I am in contact with them as I had NEVER BEFORE had any similar problems.

 

[everkeen]

Neteller`s debit card has been a fiasco as far as I`m concerned. I used mine to withdraw cash in the UK and got charged a fortune and lost a load of money.
I complained bitterly to Johnny, the debit card manager, and he eventually conceeded that they can only guess how much foreign currency you have available at any time. He actually told me how much I could withdraw in UK pounds - so off I go to the cashpoint machine again, only to be told I had insufficient funds!
At that point Johnny agreed to refund all charges and pay a few extra dollars for goodwill.
He also suggested he freezes my card until they have their conversion rates sorted out. Good idea for me, but he still processed my UK partner`s card, and will do the same for anyone else who applies.

 

[TheGeneral+]

I like the debit card. I have had no problems using it. Sorry to hear about the troubles for others.

 

[DarrylParsons]

Same exchange rate crap for me. It looks like it's happening to everyone who withdraws some other currency besides Cdn or US $$.

 

[Dante]

never had a single problem with the debit card, has worked like a charm

 

[Phaedrus]

Unfortunately this is common to a lot of U.S.-based debit cards (and in an aside has little if anything at all to do with Neteller; rather it is the card issuer [FSV in this case.]) Exchange rates for purchases and ATM withdrawals should be featured on the fee schedule of the user agreement; if it isn't I'd raise bloody hell to FSV, just go right around Neteller since there's nothing they can do about it and is not their doing in the first place.


Phaedrus

 

[randyrohm]

Should funding Neteller by EFT be a nonworrisome event now. Money going to a country that is a strong ally. War makes for strang bed buddies.

 

[peskypup]

Although Tony Blair seems keen to do whatever Bush asks, this runs against the independent thinking of British foreign policy going back 1,000 years nearly.

As I have said in many postings, britain - even Victorian Britain - has never taken a prohibitionist stance on issues like alcohol and gambling.

Our policy has been to legalise it, tax it and profit from it.

When it comes to the Isle of Man, they are even more independent-thinking than the rest of us Brits. Any attempt by London to lean on them would be met by a swift Churchillian V sign.

it is a good move by Neteller.