UPDATE:Treasury,Fed Delay Compliance For Internet Gambling Law
By Darrell A. Hughes, Of DOW JONES NEWSWIRES
(Adds comment from House Financial Services Chairman Barney Frank.)
WASHINGTON -(Dow Jones)- The U.S. Treasury Department and Federal Reserve have
delayed by six months compliance with the federal government's policies
concerning Internet gambling, the agencies said in a joint statement Friday.
The Treasury and Fed received a petition from three gambling industry
associations in September, requesting that the compliance date for the Unlawful
Internet Gambling Enforcement Act of 2006 be extended by 12 months. Those
interest groups said "a significant number of regulated entities will not have
in place the necessary policies and procedures" by the initial Dec. 1, 2009,
compliance date, according to the release.
The effective date of the regulation remains unchanged at Jan. 19, 2009, with
the compliance date now being June 1, 2010. The law implements a ban on credit-
card companies or other institutions from processing payments for online cyber
betting, among other provisions.
Nonetheless, Treasury and the Fed said six months, not 12, are sufficient for
regulated entities to address issues related to the definition of unlawful
Internet gambling.
According to the joint release, Senate Majority Leader Harry Reid (D., Nev.)
and House Financial Services Chairman Barney Frank (D., Mass.), among other
lawmakers, sent letters expressing concern that the law doesn't contain a clear
definition of "unlawful Internet gambling."
Several members of Congress said there is "considerable interest" in "
clarifying the laws underlying Internet gambling," the agencies said.
Frank, in a prepared statement, described the gambling law as "midnight
regulations promulgated by the Bush administration which would curtail the
freedom of Americans to use the Internet as they choose and which would pose
unrealistic burdens on the entire financial community."
The six-month extension, Frank said, "will give us a chance to act in an
unhurried manner on my legislation to undo this regulatory excess by the Bush
administration and to undo this ill-advised law."
Sen. Jon Kyl (R., Ariz.) and Rep. Spencer Bachus (R., Ala.), however, had
opposed delaying compliance, for reasons related to "the speculative nature of
the problems raised by petitioners, the associations and other interest groups,"
the agencies' release said.
Still, the Fed and Treasury said they are "persuaded that a limited extension
of the compliance date for regulated entities is appropriate."
Opponents of online gambling say such activity would increase gambling
addictions and attract minors.
Federal law prohibits gambling over the Internet, but regulations on the
gambling industry vary from state to state. Critics of the ban say the laws
remain murky and are sometimes contradicted by state laws.
-By Darrell A. Hughes, Dow Jones Newswires; 202-862-6684; darrell.hughes@
dowjones.com
(END) Dow Jones Newswires
11-27-091412ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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