United States lawmakers urge delay in UIGEA implementation

Enforcing the rules in two months’ time would put an unreasonable burden on regulators and the financial services industry at a time of economic crisis, said the lawmakers, in a letter to the Treasury Department and the Federal Reserve.

The bill, which has cost European Internet gambling companies billions of Euros, prevents firms from accepting credit cards, cheques and electronic fund transfer payments in connection with any any "unlawful" internet gambling.

Congress passed the anti-gambling legislation in 2006, when Republicans still controlled both the House and the Senate. However, the bill did not define which types of gambling were illegal. The Treasury and Federal Reserve expressed concern a year ago that they were struggling to understand exactly what was unlawful. For example, the bill still allowed online horserace betting permissible under the Interstate Horseracing Act of 1978.

The group, led by Barney Frank, the US House Financial Services Committee Chairman, said in a letter that the law enacting the new rules is "flawed" and said the House is likely to move legislation that would officially delay the rules until December 2010. "We also believe this is an unreasonable burden on regulators and the financial services industry at a time of economic crisis," the letter signed by 19 lawmakers said.