Internet Gambling Prohibition Act of 1997

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Internet Gambling Prohibition Act of 
1997''.

SEC. 2. DEFINITIONS.

    Section 1081 of title 18, United States Code, is amended--
            (1) in the matter immediately following the colon, by 
        designating the first 5 undesignated paragraphs as paragraphs 
        (1) through (5), respectively, and moving the indentation of 
        each paragraph 2 ems to the right;
            (2) in paragraph (5), as so designated--
                    (A) by striking ``wire communication'' and 
                inserting ``communication'';
                    (B) by striking ``transmission of writings'' and 
                inserting ``transmission or receipt of data, 
                writings''; and
                    (C) by striking ``or other like'' and all that 
                follows before the period and inserting ``radio, 
                electromagnetic, photo-optical, photoelectric, or other 
                similar facility''; and
            (3) by adding at the end the following:
            ``(6) Bets or wagers.--The term `bets or wagers'--
                    ``(A) means the staking or risking by any person of 
                something of value (other than in a de minimis amount, 
                such as postage, filling out a form or survey, or 
                visits to a place where no charge is made for such 
                visits) upon the outcome of a contest of chance or a 
                future contingent event which contest or event is 
                predominantly subject to pure chance, upon an agreement 
                or understanding that the person or another person will 
                receive something of greater value than the amount 
                staked or risked in the event of a certain outcome;
                    ``(B) includes--
                            ``(i) the purchase of a chance or 
                        opportunity to win a lottery or other prize if 
                        the opportunity to win is subject to pure 
                        chance and the purchase requires a 
                        consideration that is not in a de minimis 
                        amount as described in subparagraph (A) and
                            ``(ii) information that is intended by the 
                        sender to be used by a person engaged in the 
                        business of betting or wagering to accept or 
                        place a bet or wager; and
                    ``(C) does not include--
                            ``(i) a bona fide business transaction 
                        governed by the securities laws (as that term 
                        is defined in section 3(a)(47) of the 
                        Securities Exchange Act of 1934 (15 U.S.C. 
                        78c(a)(47))) for the purchase or sale at a 
                        future date of securities (as that term is 
                        defined in section 3(a)(10) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78c(a)(10)));
                            ``(ii) a contract of indemnity or 
                        guarantee; or
                            ``(iii) a contract for life, health, or 
                        accident insurance.
            ``(7) Information assisting in the placing of bets or 
        wagers.--The term `information assisting in the placing of bets 
        or wagers means information that is sent by a person engaged in 
        the business of betting or wagering that is necessary in order 
        for the recipient to place a bet or wager by means of a 
        communication facility being used in interstate or foreign 
        commerce.''.

SEC. 3. TRANSMISSION OF WAGERING INFORMATION; PENALTIES.

    (a) In General.--Section 1084 of title 18, United States Code, is 
amended by striking subsections (a) through (c) and inserting the 
following:
    ``(a) In General.--
            ``(1) Persons engaged in the business of betting or 
        wagering.--Whoever, being engaged in the business of betting or 
        wagering knowingly uses a communication facility for the 
        transmission or receipt in interstate or foreign commerce of 
        bets or wagers, information assisting in the placing of bets or 
        wagers, or a communication that entitles the transmitter or 
        receiver to the opportunity to receive money or credit as a 
        result of bets or wagers made using a communication facility in 
        interstate or foreign commerce, shall be fined under this title 
        or imprisoned not more than 4 years, or both.
            ``(2) Other persons.--Whoever (other than a person 
        described in paragraph (1)) knowingly uses a communication 
        facility for the transmission or receipt in interstate or 
        foreign commerce of bets or wagers, information assisting in 
        the placing of bets or wagers, or a communication that entitles 
        the transmitter or receiver to the opportunity to receive money 
        or credit as a result of bets or wagers, shall be fined under 
        this title or imprisoned not more than 6 months, or both.
    ``(b) Exceptions.--
            ``(1) News reporting; legal bets and wagers.--Nothing in 
        this section shall be construed to prohibit the transmission or 
        receipt in interstate or foreign commerce of any information--
                    ``(A) for use in the news reporting of any 
                activity, event, or contest upon which bets or wagers 
                are based;
                    ``(B) assisting in the placing of bets or wagers, 
                if betting or wagering on such activity, event, or 
                contest--
                            ``(i) is not illegal in the State or 
                        foreign country in which the transmission 
                        originates; and
                            ``(ii) is not illegal in each State and 
                        each foreign country in which the sender 
                        intends the transmission to be received for the 
                        purposes of betting or wagering; or
                    ``(C) advertising, promotion, or other 
                communication by, or authorized by, anyone licensed to 
                operate a gambling business in a State in which such 
                business is lawful and in which the recipient of the 
                information must be physically present at the licensed 
                business establishment in order to place a bet or wager 
                or engage in a contest which is conducted at such 
                establishment.
            ``(2) State law.--Nothing in this section shall be 
        construed to preempt any State law.''.
    (b) Duties of Common Carriers and Interactive Computer Service 
Providers.--Subsection (d) of section 1084 of title 18, United States 
Code, is amended--
            (1) by striking ``(d) When'' and inserting the following:
    ``(c) Duties of Common Carriers and Interactive Computer Service 
Providers.--
            ``(1) In general.--If'';
            (2) by inserting ``or interactive computer service 
        provider'' after ``common carrier'' each place that term 
        appears;
            (3) by striking ``Nothing'' and inserting the following:
            ``(3) Judicial action.--Nothing''; and
            (4) by inserting after paragraph (1), as amended by 
        subparagraph (1), the following:
            ``(2) Injunctive relief.--Any State or local law 
        enforcement agency acting within its jurisdiction, may, 
        following the issuance of a notice under paragraph (1), in a 
        civil action, obtain an injunction or other appropriate relief 
        preventing the use of such facility for the purpose of 
        transmitting or receiving gambling information in interstate or 
        foreign commerce in violation of State or local law.''.
    (c) Stylistic Amendment.--Section 1084(e) of title 18, United 
States Code, is amended by inserting ``.--Definition''.

SEC. 4. SENSE OF THE CONGRESS.

    It is the sense of the Congress that the Federal Government should 
have extraterritorial jurisdiction over the transmission to or receipt 
from the United States of--
            (1) bets or wagers (as that term is defined in section 1081 
        of title 18, United States Code);
            (2) information assisting in the placing of bets or wagers; 
        and
            (3) any communication that entitles the transmitter or 
        recipient to the opportunity to receive money or credit as a 
        result of bets or wagers.

SEC. 5. REPORT.

    Not later than one year after the date of enactment of this Act, 
the Attorney General shall submit a report to Congress that includes--
            (1) an analysis of the problems, if any, associated with 
        enforcing section 1084 of title 18, United States Code, as 
        amended by this Act; and
            (2) recommendations for the best use of the resources of 
        the Department of Justice to enforce that section.

Summary: Internet Gambling Prohibition Act of 1997 - Amends the Federal criminal code to provide penalties against any person who, while engaged in the business of betting or wagering, knowingly uses a communication facility for the transmission or receipt in interstate or foreign commerce of bets or wagers, information assisting in the placing of bets or wagers, or a communication that entitles the transmitter or receiver to receive money or credit as a result of bets or wagers. Provides a smaller penalty for those engaging in such activities who are not in the business of betting or wagering. Provides prohibition exceptions. Authorizes the Federal Communications Commission to enforce against interstate computer service providers regulations prohibiting the interstate or foreign transmission of gambling information. Authorizes injunctive relief against such carriers or providers. Expresses the sense of the Congress that the Federal Government should have extraterritorial jurisdiction over the transmission to or receipt from the United States of gambling information as well as any communication that entitles the transmitter or recipient to receive money or credit as a result of bets or wagers. Requires a report from the Attorney General to the Congress concerning the enforcement of such gambling regulations and related recommendations.