National Association of Federal Credit Unions Online http://www.nafcunet.org/Template.cfm?Section=News&template=/ContentManagement/ContentDisplay.cfm&ContentID=20782
Senator eyes compromise on Internet gaming bill
Aug. 4, 2006—The House-passed bill to stop Internet gambling has had a hold placed on it in the Senate, but one lawmaker said he may find a way to modify the package in order to make it more palatable.
Sen. Jon Kyl, R-Ariz., reported the hold to a Hill publication and said he is open to revising it in order to get action on it following the August recess (National Journal’s CongressDaily, Aug. 3). One modification he’s considering would remove language amending the 1961 Wire Act, which bars the use of wire transmissions for bets across state and foreign lines. The revision would bar the use of all new technology for this purpose.
As approved July 11, the bill, H.R. 4411, prohibits betting establishments from accepting wagers online via credit card; electronic funds transfer or transmittal; check, draft or other instrument drawn or payable through any financial institution; or proceeds from any other transaction as determined in implementing rules.
In provisions backed by NAFCU, the bill calls on Treasury and the Federal Reserve System to write implementing rules. It also leaves enforcement over financial institutions, such as credit unions, to their primary federal regulators, such as NCUA.
The measure would permit Treasury and the Fed to exempt certain transactions—including those made by check, automated clearinghouse and other modes—if it's not “reasonably practical” to discern if they're being used for Internet gambling.
Additionally, H.R. 4411 would allow the Justice Department to get court orders to freeze financial institution accounts held by gambling businesses and protects institutions from lawsuits arising from such activity
The House cleared the bill on a vote of 317-93.
Senator eyes compromise on Internet gaming bill
Aug. 4, 2006—The House-passed bill to stop Internet gambling has had a hold placed on it in the Senate, but one lawmaker said he may find a way to modify the package in order to make it more palatable.
Sen. Jon Kyl, R-Ariz., reported the hold to a Hill publication and said he is open to revising it in order to get action on it following the August recess (National Journal’s CongressDaily, Aug. 3). One modification he’s considering would remove language amending the 1961 Wire Act, which bars the use of wire transmissions for bets across state and foreign lines. The revision would bar the use of all new technology for this purpose.
As approved July 11, the bill, H.R. 4411, prohibits betting establishments from accepting wagers online via credit card; electronic funds transfer or transmittal; check, draft or other instrument drawn or payable through any financial institution; or proceeds from any other transaction as determined in implementing rules.
In provisions backed by NAFCU, the bill calls on Treasury and the Federal Reserve System to write implementing rules. It also leaves enforcement over financial institutions, such as credit unions, to their primary federal regulators, such as NCUA.
The measure would permit Treasury and the Fed to exempt certain transactions—including those made by check, automated clearinghouse and other modes—if it's not “reasonably practical” to discern if they're being used for Internet gambling.
Additionally, H.R. 4411 would allow the Justice Department to get court orders to freeze financial institution accounts held by gambling businesses and protects institutions from lawsuits arising from such activity
The House cleared the bill on a vote of 317-93.
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