Banks await regulations on US Internet betting ban

from reuters.com

WASHINGTON, Oct 2 (Reuters) - The costs of policing a new U.S. Internet gambling ban for banks and credit card companies will be determined by regulators in the coming months, industry officials said on Monday.

Government officials are expected to propose a “coding-and-blocking” system that will identify and stop payment to online gambling sites, experts said. Many banks and credit card companies already voluntarily block Internet gambling transactions using such a system.

The Treasury Department and Federal Reserve Board have nine months to draft regulations after the new law, included in a package of port security measures passed by Congress on Friday and expected to be signed into law by President George W. Bush.

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