Congress to consider legislation to block new online regulations

UPDATE: House Committee passes bill 30-19

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Jessica Holzer Of DOW JONES is reporting on the action in Congress:

The House Financial Services Committee will consider legislation on Sept. 16 to require federal regulators to define illegal Internet gambling, making it more difficult for them to implement a 2006 law cracking down on the activity.

[...]

The online-gambling legislation, introduced this week by Financial Services Chairman Barney Frank, D-Mass, and Rep. Peter King, R-N.Y., would require the U.S. Treasury and the Federal Reserve to promulgate rules clearly defining what types of online gambling are illegal in the U.S. The bill represents Frank's third attempt to undo a 2006 law that sought to curb the activity by banning illegal payments to Internet-gambling operators. The law is supported by social conservatives and such sports organizations as the National Football League.

Critics of the law - which include the financial services industry, gambling enthusiasts and privacy advocates - contend that it is too onerous for the banking system to comply with. Congress stopped short of clearly defining illegal online gambling in the law, directing the federal government instead to enforce state laws restricting such activities. It also excluded online horse-race betting from the crackdown. The House earlier this year voted down legislation, also sponsored by Frank, to stop the federal government from implementing the 2006 law.