We analyze Palumbo's noncompact, manifestly gauge-invariant, lattice gauge theory. Via the transfer matrix we construct from Palumbo's action the corresponding Hamiltonian. In the classical continuum limit we recover the Kogut-Susskind Hamiltonian. We also study the confinement structure of the theory by computing the Wilson loop in the strong coupling regime. We find an area law behavior for both U(1) and SU(2) gauge theory in that regime.