SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Gambling ATM and Credit/Debit Card 
Reform Act''.

SEC. 2. IMPLEMENTATION OF THE NATIONAL GAMBLING IMPACT STUDY 
              COMMISSION'S RECOMMENDATIONS RELATING TO BANKING AND 
              CREDIT.

    (a) Initiation of Electronic Fund Transfers in Gambling 
Establishments.--The Electronic Fund Transfer Act (15 U.S.C. 1693 et 
seq.) is amended--
            (1) by redesignating sections 918, 919, 920, and 921 as 
        sections 919, 920, 921, and 922, respectively; and
            (2) by inserting after section 917 the following new 
        section:

``SEC. 918. PLACEMENT OF ELECTRONIC TERMINALS IN GAMBLING 
              ESTABLISHMENTS.

    ``(a) In General.--No person may place, or cause to be placed, an 
electronic terminal in the immediate area of a gambling establishment 
where any form of wager or bet is made or accepted, any game of chance 
is played, any gambling device is used, or any other form of gambling 
is carried on.
    ``(b) Regulations.--
            ``(1) In general.--The Board shall prescribe such 
        regulations as the Board may consider to be appropriate to 
        ensure that the initation of electronic fund transfers by 
        consumers is kept, to the extent practicable, physically 
        segregated from any activity described in subsection (a).
            ``(2) Separate setting.--Such regulations shall include a 
        clear delineation of the setting in which, and the 
        circumstances under which, any use of an electronic terminal or 
        credit card referred to in paragraph (1) should be conducted in 
        a location physically segregated from an area where any 
        activity described in subsection (a) is routinely carried on.
    ``(c) Liability.--For purposes of section 915, a failure to comply 
with the requirements of subsection (a) with regard to any electronic 
terminal shall be considered a failure to comply with a provision of 
this title with respect to any consumer who initiates an electronic 
fund transfer at such terminal while such violation continues.
    ``(d) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Gambling device.--The term `gambling device' has the 
        meaning given to such term in section 41311(b) of title 49, 
        United States Code.
            ``(2) Gambling establishment.--The term `gambling 
        establishment' has the meaning given to such term in section 
        1081 of title 18, United States Code.''.
    (b) Use of Credit Cards To Initiate Extensions of Credit in 
Gambling Establishments.--
            (1) In general.--Chapter 2 of the Truth in Lending Act (15 
        U.S.C. 1631 et seq.) is amended by adding at the end the 
        following new section:

``SEC. 140. PROHIBITION ON INITIATION OF EXTENSIONS OF CREDIT IN 
              CERTAIN GAMBLING AREAS WITHIN GAMBLING ESTABLISHMENTS.

    ``(a) In General.--No person may--
            ``(1) place, or cause to be placed, an electronic terminal; 
        or
            ``(2) otherwise accept the use of a credit card by a 
        consumer to initiate a consumer credit transaction to pay for 
        money, property, or services obtained by the consumer,
in the immediate area of a gambling establishment where any form of 
wager or bet is made or accepted, any game of chance is played, any 
gambling device is used, or any other form of gambling is carried on.
    ``(b) Regulations.--
            ``(1) In general.--The Board shall prescribe such 
        regulations as the Board may consider to be appropriate to 
        ensure that the use of an electronic terminal or the use of a 
credit card to initiate a consumer credit transaction to pay for money, 
property, or services obtained by a consumer is kept, to the extent 
practicable, physically segregated from any activity described in 
subsection (a).
            ``(2) Separate setting.--Such regulations shall include a 
        clear delineation of the setting in which, and the 
        circumstances under which, any use of an electronic terminal or 
        credit card referred to in paragraph (1) should be conducted in 
        a location physically segregated from an area where any 
        activity described in subsection (a) is routinely carried on.
    ``(c) Civil Liability.--
            ``(1) In general.--Any person who fails to comply with any 
        provision of this title with respect to any electronic terminal 
        or the acceptance of a credit card to initiate a consumer 
        credit transaction at a place in a gambling establishment that 
        constitutes a violation shall be liable to any consumer who 
        uses the electronic terminal or provides a credit card at such 
        place in an amount equal to the sum of the amounts determined 
        under each of the following subparagraphs:
                    ``(A) Actual damages.--The greater of--
                            ``(i) the amount of any actual damage 
                        sustained by the consumer as a result of such 
                        failure; or
                            ``(ii) any amount paid, directly or with 
                        the proceeds of the credit transaction, by the 
                        consumer to such person.
                    ``(B) Punitive damages.--
                            ``(i) Individual actions.--In the case of 
                        any action by an individual, such additional 
                        amount as the court may allow.
                            ``(ii) Class actions.--In the case of a 
                        class action, the sum of--
                                    ``(I) the aggregate of the amount 
                                which the court may allow for each 
                                named plaintiff; and
                                    ``(II) the aggregate of the amount 
                                which the court may allow for each 
                                other class member, without regard to 
                                any minimum individual recovery.
                    ``(C) Attorneys' fees.--In the case of any 
                successful action to enforce any liability under 
                subparagraph (A) or (B), the costs of the action, 
                together with reasonable attorneys' fees.
            ``(2) Factors to be considered in awarding punitive 
        damages.--In determining the amount of any liability of any 
        person under paragraph (1)(B), the court shall consider, among 
        other relevant factors--
                    ``(A) the frequency and persistence of 
                noncompliance by such person;
                    ``(B) the nature of the noncompliance;
                    ``(C) the extent to which such noncompliance was 
                intentional; and
                    ``(D) in the case of any class action, the number 
                of consumers adversely affected.
    ``(d) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Electronic terminal.--The term `electronic 
        terminal'--
                    ``(A) means an electronic device, other than a 
                telephone operated by a consumer, through which a 
                consumer may initiate a consumer credit transaction in 
                payment for any money, property, or services obtained 
                by the consumer; and
                    ``(B) includes point-of-sale terminals, automated 
                teller machines, and cash dispensing machines
            ``(2) Gambling device.--The term `gambling device' has the 
        meaning given to such term in section 41311(b) of title 49, 
        United States Code.
            ``(3) Gambling establishment.--The term `gambling 
        establishment' has the meaning given to such term in section 
        1081 of title 18, United States Code.''.
            (2) Clerical amendment.--The table of sections for chapter 
        2 of the Truth in Lending Act is amended by inserting after the 
        item relating to section 139 the following new item:

``140. Prohibition on initiation of extensions of credit in certain 
                            gambling areas within gambling 
                            establishments.''.
Gambling ATM and Credit/Debit Card Reform Act - Amends the Electronic Fund Transfer Act and the Truth in Lending Act to prohibit the placement of an electronic terminal for initiating a consumer credit transaction (including an automated teller machine or a point-of-sale terminal) or the acceptance of a credit card to initiate such a transaction in the immediate area of a gambling establishment where any form of gambling is going on. Makes violators of this prohibition liable to consumers for actual and punitive damages.
To implement certain recommendations of the National Gambling Impact Study Commission by prohibiting the placement of automated teller machines or any device by which an extension of credit or an electronic fund transfer may be initiated by a consumer in the immediate area in a gambling establishment where gambling or wagering takes place.