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us gambling regulation December 21, 2007

Posted by Bradley in : Uncategorized , trackback

Just days after the EU and US announced they had reached an agreement to compensate the EU for the US’ attitude to the regulation of gambling, the Remote Gambling Association announced that it was filing a complaint with the Commission. In other gambling-related news financial trade associations have been objecting to the Fed and Treasury’s proposed implementation of the Unlawful Internet Gambling Act. The BBA asks for more clarity. SIFMA’s comment states:

The proposed rule provides that the term “unlawful Internet gambling” means a bet or wager involving the Internet that is unlawful under federal or state law where the bet or wager is initiated, received or otherwise made. It is not clear what types of gambling transactions over the Internet, if any, might be lawful. The Agencies have determined not to further define gambling-related terms because the Act itself does not specify which gambling activities are legal or illegal. SIFMA is concerned that if the Agencies themselves are unwilling or unable to provide additional guidance to financial institutions regarding what constitutes unlawful Internet gambling, financial institutions run the risk of both processing unlawful Internet gambling payment transactions that should not be processed and preventing transactions that are lawful. Without additional guidance, financial institutions may, out of an abundance of caution, implement procedures that identify and block all gambling-related transactions, including lawful transactions. Although the Act would permit such an approach since it contains a safe harbor for blocking transactions, we do not believe that was the intent of the Act. Such an approach would also take resources and focus away from other compliance efforts. Accordingly, SIFMA urges the Agencies, in conjunction with the Department of Justice and State Attorneys General, to provide additional specificity and guidance to financial institutions regarding the legal status of certain Internet gambling transactions.


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