The Department of the Treasury and the Federal Reserve System are taking public comment on proposed regulations to implement the Unlawful Internet Gambling Enforcement Act of 2006.
According to an Oct. 1 statement from the two groups, the proposed rule would require United States financial firms that participate in designated payment systems to have policies and procedures that are reasonably designed to prevent payments being made to gambling businesses in connection with unlawful Internet gambling.
The proposed rule would provide examples of such policies and procedures. For purposes of the proposed rule, unlawful Internet gambling generally would cover the making of a bet or wager that involves use of the Internet and that is unlawful under any applicable federal or state law in the jurisdiction where the bet or wager is made.
The Unlawful Internet Gambling Enforcement Act prohibits gambling concerns from accepting payments via credit cards, electronic fund transfers, and checks. The act contains a provision that permits account wagering on horse racing under the Interstate Horseracing Act of 1978.
“These regulations are both complex and lengthy,” National Thoroughbred Racing Association president Alex Waldrop said in a statement. “We will begin the review process immediately and solicit industry input in the coming weeks through a series of informational meetings with our stakeholder groups. The NTRA has been working closely in this area with members of Congress, and we greatly appreciate their support of the Thoroughbred racing and breeding industries.”
Comments on the proposed regulations are due by Dec. 12.