House Bill That Would Free Banks of Internet Gambling Payments Oversight is Defeated

By Matt Squire

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...