Regulators Issue Rule on Gambling

Despite a request by House Financial Services Committee Chairman Barney Frank, the Treasury Department and the Federal Reserve Board issued a final rule Wednesday requiring financial institutions to make efforts to block Internet gambling.

The rule stems from the Unlawful Internet Gambling Enforcement Act of 2006. It generally covers any "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," the Treasury and the Fed said.

In a letter this week to Treasury Secretary Henry Paulson, Rep. Frank said such a rule would create more problems for the banking industry.

In September the Financial Services Committee approved legislation to stop the act's implementation until parameters were better established.