Citadel Gone Too

Citadel LogoCitadel has announced they are exiting the US market effective immediately. The press release is below and coming on the heels of the news about Neteller and InstaCash this isn’t good news. Still, people on message boards are still in denial claiming these are isolated cases. I guess they’ll just one by one be isolated cases until you’re jumping on a plane to hand deliver cash to your favorite card room 🙂

VANCOUVER, Jan. 17 /CNW/ – ESI Entertainment Systems Inc. (“ESI”) (TSX: ESY), a leading provider of products and services to international organizations and the gaming industry, today announces that effective immediately it’s subsidiary Citadel Commerce Corp. will no longer offer financial processing to non-domestic Internet Gaming merchants for USA consumers.

The Company was looking forward to complying with the new Regulations for financial processors under the Unlawful Internet Gambling Enforcement Act of 2006 passed on October 13, 2006 but this decision was made by the ESI Board of Directors in the light of recent US Department of Justice enforcement actions against financial processors executives.

This decision will have a material impact on the financial condition of the Company as a substantial part of its revenues was derived from non-domestic Internet Gaming merchants for USA consumers.