This past week or two has been shocking for the Internet Gambling industry, with PartyGaming and other poker sites withdrawing from the US market, as well as a large payment processor, Firepay, announcing they will immediately stop processing online gambling transactions involving US consumers after the Unlawful Internet Gambling Enforcement Act (UIGEA) was signed by George Bush.

Neteller have just distributed a press release [PDF] stating that they will be reviewing their stance on the bill, and will comply with it in full, regardless of whether they are located in the US or not. Neteller are a public company, so it’s not really suprising that like others (PartyGaming PLC, SportingBet PLC), they will have to comply with this law. Their statement reads:

“Update on US position
Further to the Company’s announcement on 12 October 2006, NETELLER Plc today announced the following update in the light of the action on 13 October 2006 by US President George W Bush to approve and sign into law the SAFE Port Act incorporating the Unlawful Internet Gambling Enforcement Act of 2006 (”UIGEAâ€? or the “Actâ€?) which includes certain provisions to prohibit “unlawful internet gamblingâ€? by restricting gambling sites from accepting certain payments from US residents. NETELLER, a company registered outside the US, will comply with the Act and its related regulations as if it were subject to the Act’s jurisdiction. This action is intended to ensure that the Company is able to continue to operate with the support of its principal commercial partners and to protect its shareholders, business partners, employees and reputation.

Various provisions of the Act, including the obligations of financial transaction providers such as NETELLER, remain unclear. This uncertainty should be largely resolved when the Secretary of the Treasury and the Board of Governors of the Federal Reserve System issue the regulations they are required to prescribe within 270 days.

In view of the importance of these issues, NETELLER has accelerated its review of the Act and all other relevant laws and pertinent developments. The Company also continues to closely monitor the regulatory situation and is determining what actions to take well before the conclusion of the 270-day rulemaking period. In the interim, US-resident customers are able to use the NETELLER service as normal. The funds of US-resident customers are held in trust accounts and will be available for withdrawal, on demand. The ability to withdraw funds will exist regardless of the customer’s location or ability to transfer to any site.”

So, after coming out a few weeks ago and stating ‘business as usual’, Neteller have decided it’s a wise move to restate their position. Some may say this is a move to cover their own backs, but it was pretty obvious when the bill was announced that they would eventually have to comply it, especially as they are listed on the stock market.

I wouldn’t be suprised one bit if one of the larger poker sites that are still taking US poker players will launch their own payment system. Maybe even a few of them will get together and back it. Surely these huge companies, with some of the highest levels of online revenue in the world, have contingencies in place for something that we all saw coming for many months, if not years?!