Banks Concerned Ban Will Cost Them

The US senate has yet to cast the final decision regarding the matter but we are hearing voices of discontent from approximately 5,000 small banks. They are opposing the legislation and are looking to challenge what is widely seen as the government's best shot at cracking done on the industry.

The group of banks fears that enforcement of the law would be burdensome, if not impossible given the way transactions are processed. They believe that although customers pay through banks, the banking industry's system is not designed to handle such a thing. The main complaint is that trying to stop all transactions will be like trying to find a needle in a haystack. At issue are the electronic transfers that many gamblers use, and the banks are saying that these transfers arent coded to show what type of business is on the receiving end.

It would require a massive and costly overhaul to adequately handle this issue, but lawmakers are looking at the big picture. They have been debating for years how to rein in offshore sites, which generated about $12 billion in revenue last year, with about half coming from Americans. The law would require greater regulation of the banking industry but there is hope that the Federal Reserve and the Treasury will come up with an implementation plan that won't be overly burdensome for the banks.