LONDON - Online payment processor NETeller said it would shed 250 jobs, mostly in Calgary, Canada, following its withdrawal from the U.S. market.

"Staff reductions will total around 220 employees across all levels, from the group's contact centre and security teams as well as related support functions in marketing, processing and IT," NETeller said on Friday of its Calgary-based operations.

The company is cutting 30 jobs in here at home.

NETeller quit the United States last month after U.S. authorities arrested its two founders and charged them with handling billions of dollars in illegal gambling proceeds.

"The events of the past months have led to challenging times for the group, and the board has taken these measures to ensure the group has a sustainable business going forward," said President and Chief Executive Ron Martin.

Internet gambling in the United States was effectively banned last October when U.S. President George W. Bush signed legislation outlawing online gaming transactions.

Last week prosecutors seized some company funds, stopping U.S. customers from accessing their money, the latest move in the online gaming crackdown.

Reuters

The US Govt. really seems to be cracking down on online currencies, exchangers and transactions.