A rule was passed by the Federal Reserve and the Treasury Department of the US to stop the illegal gambling going around on the Internet. This final rule was passed even as the Democratic lawmaker was requesting them to postpone it citing as a reason, the problems banks would face because of this.
Republican lawmakers however were pleased with the regulation as they wanted this during President Bush’s term. It was in the year 2006 that the Unlawful Internet Gambling Enforcement Act was passed while the Congress was still under the Republicans.
Rep. Spencer Bachus welcomed the rule which he said should have been passed a year earlier said that the Internet will no longer be misused by those who have vested interests in offshore gambling using their computer as a twenty four hour Casino.
A host of European companies earning millions from online gambling lost heavily, when they were forced to back out of one of the most money spinning businesses after the law was passed in the year 2006.
Businesses were banned from receiving payments for unlawful gambling on the internet either through electronic fund transfers, credit cards or checks by the legislation. December 1st, 2009 is the deadline before which companies have to wind up their unlawful internet gambling operations.
The bill was however blocked by the House Financial Services asking for more detailed explanation on what comes under “unlawful Internet gambling”. The legislation is also not approved by the congress in entirety.
