Mobile // Mobile Applications
News
11/13/2008
06:39 PM
Connect Directly
RSS
E-Mail
50%
50%

Online Gambling Ban Approved

The law, scheduled to take effect in December 2009, prohibits payments made through credit cards, electronic funds transfers, and checks related to online wagers.

The Bush administration on Wednesday approved a 2006 law that outlaws many forms of online gambling, leaving banks and financial institutions scrambling to clamp down on bet transactions.

The 120-page Unlawful Internet Gambling Enforcement Act of 2006 prohibits payments made through credit cards, electronic funds transfers, and checks related to online wagers. The financial institutions, however, have until Dec. 1, 2009, to comply with the law.

Rep. Barney Frank, D-Mass., has said he will seek to overturn the law, pointing out that even the most ardent fans of the regulations have said they will be difficult to interpret and enforce.

Part of the problem is to define "unlawful Internet gambling." For instance, the National Football League's "Fantasy Football" is exempted from the legislation, because the NFL claims the game is skill-based and not a game of chance and, thus, not gambling.

Opponents of the legislation complained earlier this week before the Treasury Department and the Federal Reserve Bank issued new regulations describing the legislation. The opponents argued that a former NFL lobbyist was working in the White House and represented a conflict of interest. A White House spokesperson said the lobbyist, William Wichterman, was in compliance with ethics rules.

The legislation, HR 4411, was originally sponsored by Republican Rep. Jim Leach, R-Iowa, and it had the strong and influential backing of then-Sen. Bill Frist, R-Tenn. After 30 years in the House, Leach was narrowly defeated in the 2006 election. This summer Leach threw his support to Barack Obama to the consternation of many Republicans, and this week Obama named Leach and former Secretary of State Madeleine Albright as his representatives to an international economic summit in Washington.

Comment  | 
Print  | 
More Insights
Building A Mobile Business Mindset
Building A Mobile Business Mindset
Among 688 respondents, 46% have deployed mobile apps, with an additional 24% planning to in the next year. Soon all apps will look like mobile apps and it's past time for those with no plans to get cracking.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest - July 22, 2014
Sophisticated attacks demand real-time risk management and continuous monitoring. Here's how federal agencies are meeting that challenge.
Flash Poll
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
A UBM Tech Radio episode on the changing economics of Flash storage used in data tiering -- sponsored by Dell.
Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.