by Hillary LaClair, Senior Editor
A popular e-wallet with the online casino gambling industry, NETeller Plc, has announced an identity change that many surmise is an effort to distance itself from the recent encounter with the US Department of Justice. The litigation ended with NETeller having to pay a substantial fee of $185.7 million, after it had been catering to US internet casino transactions.
Ron Martin, Chief Executive to NETeller cites an attempt to rebuild the processor’s credibility with merchants, customers, partners and regulators as the reason for the name change. “An element of strategy is moving beyond the US situation,” says Martin.
Whatever the reason, the London-based payment processor will officially be known as Neovia Financial as of November 17th this year. Even with the identity change, the three main financial services, used mostly by online casino gamblers will maintain their titles – NETeller, Netbanx and Net+.
After being forced from the US market and having cut half of their workforce, NETeller left Canada and went into Europe and Asia. From there it was determined that NETeller could not rely on just online casino gambling for its total revenue. As a response to the litigation with the US, the payment processor, NETeller released its card, Net+.
Net+ generated revenue of $1.15 million just last month, and as Martin reports, the organization exceeded its targeted non-gaming revenue of 30 percent by 2010. Rather, NETeller has already seen 18.5 percent in non-gaming profits.
“Gaming will continue to be an important part of the business, but on the other hand we have built a payment capability much beyond gaming and many products have an application outside of gaming,” said Martin.