1st of December will be gambling processing institutions' Day of Reckoning

December 1, 2009 was chosen by the Department of the Treasury and the Federal Reserve Board as a deadline for the financial institutions to stop their money transfers for online gambling. Yesterday FRB has released a joint final rule to implement the Unlawful Internet Gambling Enforcement Act of 2006. The Act prohibits gambling businesses from knowingly accepting payments in connection with unlawful Internet gambling, including payments made through credit cards, electronic funds transfers, and checks. 

“The Board and the Treasury are required by the Act to develop a joint rule in consultation with the Department of Justice. The final rule requires U.S. financial firms that participate in designated payment systems to establish and implement policies and procedures that are reasonably designed to prevent payments to gambling businesses in connection with unlawful Internet gambling. The rule provides non-exclusive examples of such policies and procedures and sets out the regulatory enforcement framework. For purposes of the 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 initiated, received, or otherwise made,” said the FRB.

"No longer will the offshore gambling interests benefit from any turning any computer into a casino that is available every minute of the day," said delighted Spencer Bachus, an Alabama Republican.

Please see the attached file for more details.

http://e-commerce-journal.com/files/Federal%20Register%20notice.pdf