How the Feds will develop regulations for the new law

by Lou on October 3, 2006

Once the process of developing regulations for the Unlawful Internet Gaming Act begins, government officials will probably propose a “coding-and-blocking” system to identify and stop payments to online gambling sites. Many banks and credit card companies already use this kind of system to block Internet gambling transactions, so the new law will build on a familiar process that’s already in place.

Because banks and credit card companies will be asked to provide input into the process of developing regulations, they are optimistic that a workable system can be crafted. Some bankers were apprehensive about being held responsible for blocking payments by check as well as those made by credit card. But those concerns abated once Congress allowed check payments to be exempted from the coding and blocking process.

The Treasury Department and Federal Reserve Board have nine months to draft regulations once the bill is signed into law by President Bush.

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