An independent report put out this week by the Center for Regulatory Effectiveness (CRE) criticizes the Treasury Department and the Board of Governors of the Federal Reserve System for their failure to recognize the impact the Unlawful Internet Gambling Enforcement Act (UIGEA) regulations could have on small businesses.
The report notes that under the Paperwork Reduction Act (PRA), which minimizes the paperwork burden in this case for individuals and small businesses, the departments failed to provide the required objectively supported estimate of burden on depository institutions, card systems, money transmitting businesses and other small financial organizations.
The CRE said that according to the UIGEA regulations, a large part of the burden, which would lie on commercial entities, stems from the fact that the proposed regulations do not clarify which gambling transactions are permissible.
Click here to read the full report.