The Treasury Department and the Federal Reserve finalized a set of rules on Wednesday that will put a stop to illegal Internet gambling. The measure comes just two days after a leading Democratic lawmaker called for a delay claiming that the new rule would cause many problems for the banks.

Basically, the new rule forbids financial companies (banks) from processing payments connected to most gambling Web sites. The financial companies have until Dec. 1, 2009, to comply with the new rule. The credit-card transactions, electronic transfers and checks operations linked to online gambling are covered by the rule.

"No longer will the offshore gambling interests benefit from any turning any computer into a casino that is available every minute of the day," Rep. Spencer Bachus, an Alabama
Republican, said.

The Republican lawmakers, who still controlled the Congress in 2006 when it passed the Unlawful Internet Gambling Enforcement Act, are very content with the new rule, while the Democratic lawmakers, the banking sector and elements of the gambling industry are strongly against it.

House Financial Services Chairman Barney Frank asked the federal government to regulate online gambling rather than ban it. The lawmaker asked Treasury Secretary Henry Paulson in a letter to delay the implementing of the new rules until the Obama administration takes office and reviews it. Mr. Frank, a Massachusetts Democrat, said he will work to overrun the new rules he called “a disaster.”

"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," Mr. Frank said.

The only kind of online gambling exempt from the new rule’s appliance is online betting on horse racing, interstate lotteries and fantasy sports.