Kyl, who has been pushing for a ban on Internet gambling, says slow progress on the part of the government and the Federal Reserve is part of the problem, along with a bill in the U.S. House of Representatives that would block enforcement of any regulations.

"The people who are violating the law need to know that they're not going to be able to get away with it and I think that the failure to get these regulations promulgated on time has perhaps given some hope and it's given life even to an idea over in the House of

Representatives to put a moratorium on the regulations," Kyl told the Las Vegas Review-Journal.

Kyl warned that the ease of online access will only exasperate the troubles caused by compulsive gambling.

The newspaper said that federal officials have said the slow progress in crafting a ban is due in part to the lack of a definition of illegal Internet gambling. There are also doubts that Internet gambling could be fully curbed.