In its blind persecution of online casinos, the United States government almost drove Neteller out of business.  Neteller is a service that specializes in online cash and payment transfers.

Neteller was publicly attacked by the US Federal Government and set as an example of the country’s new stance against online casinos.  Four-fifths of Neteller’s business consisted of transfers to and from individuals and online casinos.  The co-founders of Neteller were arrested in January of 2007.

Neteller’s business exploded after the passing of the Unlawful Internet Gambling Enforcement Act of 2006.  The UIGEA cut banks and credit card companies out of doing business with online casinos.  Neteller was there to fill in the void in the market.

When the US began cracking down on third party payment companies, Neteller admitted to handling billions of dollars in transfers between online casinos.  A settlement with the Department of Justice obligated Neteller to pay $136 million and company shares were suspended from the trade market for half of the following year.

The US pursuit of online casinos reeks of the Salem Witch Trials and Prohibition, two major mistakes in the countries long history.  And like those mistakes the intended targets are missed by a wide shot and bystanders suffer the consequence.   

Online casinos are marching along in the global economy.  Meanwhile, service companies like Neteller find themselves gunned down in the crossfire.