Nov. 7 (Bloomberg) -- The U.S. Treasury is seeking final approval for an Internet gambling regulation that banks say is unworkable, prompting a Democratic lawmaker to question the possible role of a former National Football League lobbyist who now works at the White House.

Representative Steve Cohen, a Tennessee Democrat, asked White House Counsel Fred Fielding today to detail what role Deputy Director of Public Liaison William Wichterman played in the Treasury Department's decision to send the proposed rule to the Office of Management and Budget for final review on Oct. 20.

Cohen, in letter to Fielding, said he had been told that Wichterman ``has been a source of considerable political pressure to speed this regulation through.''

Wichterman didn't return a telephone call seeking comment. Formerly with the law firm Covington and Burling, Wichterman lobbied in favor of Internet gambling restrictions on behalf of the NFL until March, according to Senate lobbying records.

Cohen called the regulation a ``midnight rulemaking.''

``I am surprised that your administration would seek to rush through a rule that would saddle an already ailing financial services sector with a burdensome rule in the current economic environment,'' Cohen wrote.

Congress passed the Unlawful Internet Gambling Enforcement Act in 2006, making it a crime for banks or other institutions to process financial transactions, such as electronic fund transfers, that are used to place bets online.

The Treasury and the Federal Reserve Board last year drew up rules to implement the law, seeking feedback from companies that might be affected.

The response from gambling and financial services companies was almost universally negative. Banks complained about the cost and also said the law would force them to police illegal activity. The Washington-based American Bankers Association predicted the law would damage the competitiveness of the U.S. financial services system.

Federal Reserve spokesman Susan Stawick wouldn't say whether the Fed had reviewed the regulatory language Treasury sent to OMB. Treasury spokesman Jennifer Zuccarelli didn't respond to a request for comment.

To contact the reporter on this story: Lorraine Woellert in Washington at lwoellert@bloomberg.net.

Last Updated: November 7, 2008 17:57 EST