The U.S. House Committee on Financial Services voted down a bill Wednesday that would have reversed a federal ban on processing Internet gambling payments. The bill, known as the Payments System Protection Act, would have stopped regulations issued by the Federal Reserve and U.S. Treasury Department in October under the Unlawful Internet Gambling Enforcement Act (UIGEA). The act and subsequent regulations require that financial institutions detect and block transactions involving illegal online gambling operations. The death of the bill was met with disappointment from representatives of the financial industry, who have complained that current requirements unduly burden banks with determining...
An agreement between a global online gaming company and an Atlantic City casino to offer Internet wagering in New Jersey faces an uphill battle to gain the necessary approval from state regulators, say analysts.
A Canadian national laundered nearly $380 million and illegally processed payouts from online gambling companies to their U.S.-based customers, according to a federal indictment released Thursday. The indictment seeks more than half-billion dollars in forfeitures.
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.
In testimony before the House Financial Services Committee, online payment processors, data security professionals and other experts called for the licensing of Internet gambling businesses but could not agree on whether current technology can successfully verify the identities of online bettors.