It appears that progress is being made in the Neteller case, and that U.S. Neteller account holders will likely get their online gambling funds back in one piece after all. The latest drama to unfold was the guilty plea of Neteller co-founder, Stephen Lawrence, who in cooperation with the U.S. Department of Justice, will be coughing up at least part of a $100 Million restitution. Lawrence's co-founder, John Lefebvre, is still awaiting his hearing, although it is largely expected he will also plea guilty and face a similar financial charges.

The charges against the two men are for "criminal conspiracy", which if you have not heard already, stem back to the outdated U.S. Wire Act. Although Neteller did not actually receive or process bets, they were the "go-to" financial middleman for funding online casinos and withdrawing player winnings. The company was founded in 1999, and shortly thereafter after began taking off as credit card companies began to prohibit online gambling charges. Receiving the bulk of its business from U.S. online gamblers, Neteller processed over $5 billion in the first half of 2006 alone.

The Federal Bureau of Investigations began taking a close look at the company in June of 2006, and Lawrence and Lefebvre were arrested in January of this year. Upon the arrests, Neteller, which is based in the online gambling friendly territory of Isle of Man, and is publicly traded on the London Stock Exchange, ceased processing transactions with online casinos and U.S. citizens and froze all trading on the Alternative Investment Market of the LSE.

Lawrence, who said in court that he was "aware" there was legislation in the U.S. barring online gambling transactions - thus, admitting his guilt - will be sentenced later this year in October. In the meantime, he is out on $5 Million bail and will be returning to his residence in the Bahamas. Lawrence could face up to a maximum of five years in prison and $250,000 in fines at the sentencing, although his cooperation with the D.O.J. will be in his favor and help to keep to mitigate his sentence.

Another thing that could pan out well in favor of Lawrence and Lefebvre is the recent WTO ruling in the case of Antigua and Barbuda against the U.S. While Antigua has been a haven for offshore online casinos, much of their business was from sportsbetting, which most legal analysts agree is the crux of the matter. The case against Neteller apparently revolves around sports betting as well. Yet, despite all the talk of fines and restitution, it will actually be the personal funds of Lawrence and Lefebvre that will make things kosher with the D.O.J. The monies of U.S. online casino gamblers will very likely end back up in the rightful hands of its owners, although the time it takes to do so is anyone's guess.