If NETeller deals with “retail” vendors, how could a transaction automatically be blocked
When a merchant accepts a payment the transaction includes a code that tells the bank what the transaction is for, gennerally. This is why credit cards get declined. The ones that go through can be that the code is for something other than gambing, which is usually the case but not always. It is more likely than not NETeller (third party vendor) has codes set up for other than gambling, this why it works in the first place. (This why the Banking Association said it would be hard to track)
Funds move from US to NETeller via wire (ie. wire act) legally. Same as transfering to/from US to Paypal. Since NETeller and the casino are both not in the US – no wire act violation.