On Wednesday, new regulations developed to crack down on unlawful Internet gambling were approved by the US Treasury Department and Federal Reserve Board.

The US authorities outlined the regulations aimed at implementing an act passed by the US Congress in 2006, which seeks to prohibit illegal gambling on the Web in the so called "final-rule."

The US banks, credit card and financial companies are banned by the law from handling Internet gambling bets. It also has been the target of severe criticism that it would be an enforcement nightmare.

The gambling businesses are specifically banned by the law from knowingly accepting payments made through credit cards, electronic funds transfers, and checks.

"The final rule requires US financial firms that participate in designated payment systems to establish and implement policies and procedures that are reasonably designed to prevent payments to gambling businesses in connection with unlawful Internet gambling," reported the Treasury Department.

It further added through a statement, "Firms have until December 1, 2009 to be in compliance with the rule."