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Originally Posted by V_RocKs
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NETeller issues statement related to internet gambling provision
Online money transfer firm NETeller plunged Monday after it warned that US legislation to end online gaming ?may have a material adverse effect on NETeller's US facing business.?
?NETeller notes the recent action early on Saturday 30 September by US Congress to pass HR 4954, the Safe Port Act which includes certain provisions to prohibit unlawful internet gambling through the restriction of payments to such sites,? it said.
The Act states that there will be a period of up to 270 days beginning on the date of the enactment for a board to prescribe regulations requiring each designated payment system and all participants to identify and block or otherwise prevent or prohibit restricted transactions.
The company said once it has more information about what the regulations will stipulate, it will have a clearer view of which companies are affected, how those companies will be expected to comply, and any possible resulting impact on NETeller.
?In the meantime, the company will continue to monitor the progress of this legislation and to energetically plan and adapt NETELLER's business to minimise any potential adverse impact,? it added.
?The company will remain focused on developing its business in line with its stated strategic objectives including geographical and product diversification.?
A trading update for the third quarter will be issued towards the end of October.