Banking Regulators, Trade Groups Voice Difficulties Posed by Internet Gambling Law

By Matt Squire

U.S. financial services regulators said they have not been able to finalize rules banning banks and payment systems from accepting funds from Internet gambling operations because the federal law requiring the ban is too vague. The Unlawful Internet Gambling Enforcement Act, passed in October 2006, prohibits banks from knowingly accepting funds from, or facilitating transactions for, Internet gambling operations deemed illegal. The Treasury Department and Federal Reserve issued a joint proposed rule on Oct. 1, 2007, that would require covered institutions to develop procedures that would prevent payments to unlawful Internet gambling operations. The proposal notes that the Internet gambling...