Bush Administration Pursues Gambling Ban

One final push. The outgoing administration is attempting to finalize the UIGEA by setting up regulations to take effect in its waning days.

The 2006 Unlawful Internet Gambling Enforcement Act (UIGEA) effectively banning Internet gambling by outlawing the transfer of funds from a financial institution to Internet gambling sites, was passed hastily by Senate Republicans when it was attached to an unrelated port security bill during year-end legislation.

The law has gone through teething problems since then because of its lack of a clear definition of what constitutes Internet gambling. The move to finalize the law has been met by fresh criticism from opposition legislators and pro-gambling advocates, led by Congressman Barney Frank (D - MA).

Midnight rulemaking
"This midnight rulemaking will tie the hands of the new administration, burden the financial services industry at a time of economic crisis and contradict the stated intent of the Financial Services Committee," Frank wrote in a letter to Treasury Secretary Henry Paulson.

Frank asked Paulson to postpone the regulation, which was reviewed by the White House budget office last week, usually the final step before it is published in the Federal Register.

In response, White House spokeswoman Dana Perino said: "No regulations are being rushed. They are all going through the process and getting the full due diligence required." She said she couldn't comment specifically on the Internet gambling rule because it was not yet final.

Frank's committee passed legislation in September to block the regulation and instead require rulemaking to define the term "unlawful Internet gambling."