Readers that are interested in the 'hidden' world of gaming and payments for gaming, may appreciate the ESI press release containing a description of the developments in 2006 for this gaming payment service provider.
Fiscal 2007 was a year of significant decline in ESI's North American payment processing business for non-domestic internet merchants for U.S. consumers. ESI's strategy during the year was focused on expanding its market in North America before the enactment of the Unlawful Internet Gambling Enforcement Act (the "UIGEA") which lead to the cessation of the payment processing business for non-domestic internet gaming merchants for U.S. consumers.
Essentially they got stuck into US-litigation over their payment service provision for gaming in the US. And the US authorities also seized a part of their assets (as with e-gold):
Subsequent to year end approximately US$ 8.31 million Merchant Reserve Funds in the USA were seized by the U.S. Department of Justice (DoJ). The company is continuing to work with the DoJ through its legal counsel to resolve the situation.
So they refocused, obtained an e-money license (for penetration towards Europe) and had an IPO saving their financial day...
- Obtained an e-money license from the UK Financial Services Authority. This allows us to launch our products in Europe.
- Sourcing investment for growth. The Company raised $10 million through an Initial Public Offering of its shares which listed on the Toronto Stock Exchange, on March 30, 2006.