I 

113TH CONGRESS 

1ST SESSION H. R. 2282 

To regulate Internet gambling, to provide consumer protections, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 6, 2013 

Mr. KING of New York introduced the following bill; which was referred to 

the Committee on Energy and Commerce, and in addition to the Committees on Financial Services and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such 

provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To regulate Internet gambling, to provide consumer 

protections, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Internet Gambling Regulation, Enforcement, and Con6 sumer Protection Act of 2013’’. 

7 (b) TABLE OF CONTENTS.—The table of contents for 

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 


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TITLE I—INTERNET GAMBLING REGULATION AND CONSUMER 

PROTECTION 

Sec. 101. Findings. 

Sec. 102. Definitions. 

Sec. 103. Prohibition on operation of internet gambling facilities. 

Sec. 104. Office of Internet Gambling Oversight. 

Sec. 105. Qualified bodies. 

Sec. 106. Establishment of licensing program for internet gambling. 

Sec. 107. Compulsive gaming, responsible gaming, and self-exclusion program 

requirements. 

Sec. 108. Prohibition on use of licenses in certain States and Indian lands. 

Sec. 109. Prohibition on bets or wagers on sporting events. 

Sec. 110. Public internet gambling and internet gambling parlors prohibited. 

Sec. 111. Safe harbor. 

Sec. 112. Cheating and other fraud. 

Sec. 113. Construction and relation to other law. 

Sec. 114. Orderly transition. 

Sec. 115. Annual reports. 

Sec. 116. Independent testing of licensed operator equipment. 

Sec. 117. Inclusion of authority to address gambling addiction in samhsa authorities. 

Sec. 118. Compilation of datasets on player behavior. 

Sec. 119. Effective date. 

TITLE II—ENFORCEMENT UNDER TITLES 18 AND 31, UNITED 

STATES CODE 

Sec. 201. Financial service providers. 

Sec. 202. Amendments relating to illegal gambling businesses. 

Sec. 203. Further amendments to subchapter IV of chapter 53 of title 31, 

United States Code. 

Sec. 204. Bettor forfeiture. 

Sec. 205. Regulations. 

Sec. 206. Conforming amendment. 

TITLE III—OTHER MATTERS 

Sec. 301 Severability. 

1 TITLE I—INTERNET GAMBLING 

2 REGULATION AND CON3 SUMER PROTECTION 

4 SEC. 101. FINDINGS. 

5 (a) FINDINGS.—Congress makes the following find6 ings: 

7 (1) Since the development of the Internet, 

8 Internet sites offering Internet gambling have raised 


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1 consumer protection and enforcement concerns for 

2 Federal and State governments as such Internet 

3 sites are often run by unknown operators located in 

4 many different countries, subject to little or no over5 sight, and have sought to attract customers from the 

6 United States. 

7 (2) Subchapter IV of chapter 53 of title 31, 

8 United States Code, which was added by the enact9 ment of the Unlawful Internet Gambling Enforce10 ment Act of 2006 (title VIII of Public Law 109– 

11 347; 120 Stat. 1952), makes it a Federal crime for 

12 gambling businesses to knowingly accept most forms 

13 of payment in connection with the participation of 

14 another person in unlawful Internet gambling. Since 

15 the enactment of the Unlawful Internet Gambling 

16 Enforcement Act of 2006, such subchapter IV has 

17 helped aid enforcement efforts against unlawful 

18 Internet gambling operators and to limit unlawful 

19 Internet gaming involving United States persons. 

20 (3) In 2006, Congress enacted the Unlawful 

21 Internet Gambling Enforcement Act, which prohib22 ited the acceptance or processing of financial instru23 ments for the purpose of unlawful Internet gam24 bling, but which did not clarify which bets or wagers 

25 are prohibited by law. Groups such as the National 


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1 District Attorneys Association and the Fraternal 

2 Order of Police have expressed support for a law 

3 that clearly prohibits all unlicensed Internet gam4 bling. Enacting such a law will aid law enforcement, 

5 prosecutors and courts in their efforts to curtail un6 lawful Internet gambling. 

7 (4) On December 23, 2011, the Department of 

8 Justice released a memorandum opinion of the Of9 fice of Legal Counsel dated September 20, 2011, 

10 that construed section 1084 of title 18, United 

11 States Code (referred to as the ‘‘Wire Act’’), to 

12 apply only to sports-related gambling activities in 

13 interstate and foreign commerce, with the result that 

14 non-sports related Internet gambling in the United 

15 States has been found not to be prohibited under 

16 Federal law if it is lawful under State law. 

17 (5) A growing number of States and Indian 

18 tribes have legalized or are considering legalizing 

19 and promoting Internet gambling to generate rev20 enue. Absent Federal limitations and enforcement, 

21 State regulation of Internet gambling, including con22 sumer safeguards, could vary widely from State to 

23 State, and States could have difficulty enforcing 

24 Internet gambling restrictions within their borders, 

25 especially against out-of-State operators. 


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1 (6) A number of States have authorized or are 

2 considering authorizing Internet purchases of lottery 

3 subscriptions or other lottery games to generate rev4 enue, which should not be prevented by Federal law. 

5 (7) Federal law needs to be updated to make 

6 clear its relationship to Internet gambling to 

7 strengthen enforcement and to ensure an effective 

8 Internet gambling enforcement structure that pro9 tects consumers and the ability of States to enforce 

10 State laws relating to Internet gambling. 

11 (8) Since the passage of the Professional and 

12 Amateur Sports Protection Act (Public Law 102– 

13 559) in 1992, which added chapter 178 to title 28, 

14 United States Code, such chapter has played an im15 portant and effective role in implementing long16 standing Federal policy against gambling on profes17 sional, scholastic, and amateur sporting events. 

18 (9) Additional tools to assist law enforcement, 

19 banks and financial transaction providers, and Inter20 net service providers in the prevention of unlawful 

21 Internet gambling activities would be important and 

22 beneficial. Maintenance of a list of licensed Internet 

23 gambling operators would provide a level of certainty 

24 as to permitted transactions and law enforcement ef25 forts. 


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1 (10) Internet gambling, like much other Inter2 net commerce, traverses State boundaries. Any par3 ticular transaction may cross a number of State 

4 boundaries from origin to destination, and commu5 nications between the same parties at different times 

6 may travel along markedly different routes, based on 

7 factors such as traffic, load capacity, and other tech8 nical considerations outside the control of sender 

9 and recipient. For that reason, among others, the 

10 Federal courts consistently have ruled that the 

11 Internet is an instrumentality and channel of inter12 state commerce and, as such, is subject to 

13 Congress’s plenary authority. For these same rea14 sons, Internet gambling by its very nature implicates 

15 Federal concerns, and is different in kind and effect 

16 from traditional gambling activity. 

17 (11) A Federal regime to regulate Internet 

18 gambling and to protect consumers should include 

19 an effective framework— 

20 (A) to prevent underage wagering and oth21 erwise to protect vulnerable individuals; 

22 (B) to ensure the games are fair and are 

23 conducted honestly; 


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1 (C) to ensure that States and Indian tribes 

2 that wish to prohibit Internet gambling may do 

3 so; 

4 (D) to promote the ability of State and 

5 Tribal lotteries to generate revenue for the ju6 risdictions that license them; and 

7 (E) to facilitate the enforcement of Fed8 eral, State, and tribal laws against unauthor9 ized Internet gambling. 

10 (12) To avoid uneven treatment of Internet 

11 gambling and land-based gambling and the risk of 

12 discrimination against existing land-based gambling 

13 operations and States that have authorized gam14 bling, a Federal regime to regulate Internet gam15 bling should contain revenue measures sufficient to 

16 ensure that Internet gambling activities generate at 

17 least equivalent revenues for the Federal Govern18 ment and the States combined as they would gen19 erate if the gambling was carried out at land-based 

20 operations. 

21 (13) Federal regulation of Internet gambling 

22 should be designed and implemented to foster a 

23 level-playing field among all forms of traditional 

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1 bling services, State-licensed lotteries, horseracing, 

2 and any other form of gambling that is not sports3 related, as well as among Internet companies with 

4 relevant expertise in e-commerce who meet the same 

5 qualifications as traditional casinos for integrity and 

6 for the capacity to carry out Internet gambling oper7 ations that meet applicable Federal and State stand8 ards. 

9 SEC. 102. DEFINITIONS. 

10 In this title: 

11 (1) APPLICANT.—The term ‘‘applicant’’ means 

12 any person who has applied for a license under this 

13 title. 

14 (2) BET OR WAGER.— 

15 (A) IN GENERAL.—Except as provided in 

16 subparagraph (B), the term ‘‘bet or wager’’ has 

17 the meaning given the term in section 5362 of 

18 title 31, United States Code. 

19 (B) EXCEPTION.—The term ‘‘bet or 

20 wager’’ does not include the following: 

21 (i) A bet or wager that is permissible 

22 under the Interstate horseracing Act of 

23 1978 (15 U.S.C. 3001 et seq.). 

24 (ii) A qualifying intrastate lottery 

25 transaction. 


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1 (3) CASINO GAMING.— 

2 (A) IN GENERAL.—Except as provided in 

3 subparagraph (B), the term ‘‘casino gaming’’ 

4 means the full range of casino gaming activity 

5 licensed by regulatory bodies of States or In6 dian tribes that would be qualified as class III 

7 gaming under section 4 of the Indian Gaming 

8 Regulatory Act (25 U.S.C. 2703) if that Act 

9 were applicable to the gaming. 

10 (B) EXCEPTION.—The term ‘‘casino gam11 ing’’ does not include lotteries of States or In12 dian tribes in compliance with the law of that 

13 State or Indian tribe, as applicable, and which 

14 solely provide lottery tickets to participants 

15 wholly within the boundaries of such State or 

16 the Indian lands of such Indian tribe. 

17 (4) GAMING DEVICE.— 

18 (A) IN GENERAL.—Except as provided in 

19 subparagraph (B), the term ‘‘gaming device’’ 

20 means any computer-based gambling machine, 

21 including slot machines and video lottery termi22 nals that have been approved by a gaming regu23 latory authority of a State or Indian tribe. 


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1 (B) EXCEPTION.—The term ‘‘gaming de2 vice’’ does not include machines that process 

3 bets or wagers for pari-mutuel betting pools. 

4 (5) INDIAN LANDS AND INDIAN TRIBE.—The 

5 terms ‘‘Indian lands’’ and ‘‘Indian tribe’’ have the 

6 meaning given the terms in section 4 of the Indian 

7 Gaming Regulatory Act (25 U.S.C. 2703). 

8 (6) INTERNET.—The term ‘‘Internet’’ has the 

9 meaning given the term in section 5362 of title 31, 

10 United States Code. 

11 (7) INTERNET GAMBLING FACILITY.—The term 

12 ‘‘Internet gambling facility’’ means an Internet 

13 website, or similar communications facility in which 

14 transmissions may cross State boundaries, through 

15 which a bet or wager is initiated, received, or other16 wise made, whether transmitted by telephone, Inter17 net, satellite, or other wire or wireless communica18 tion facility, service, or medium, including an Inter19 net gambling facility not operating under a license 

20 in good standing issued under this title, including 

21 any facility that facilitates qualifying intrastate lot22 tery transactions to the degree that such facility fa23 cilitates such transactions. 

24 (8) LICENSEE.—The term ‘‘licensee’’ means a 

25 person who operates an Internet gambling facility 


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1 under a license issued by a qualified body pursuant 

2 to this title. 

3 (9) LIVE RACING.—The term ‘‘live racing’’ 

4 means, with respect to a physical race track, the 

5 conduct of live thoroughbred horse races at such 

6 race track and does not include any races 

7 simulcasted from a separate race track. 

8 (10) OPERATE AN INTERNET GAMBLING FACIL9 ITY.—The term ‘‘operate an Internet gambling facil10 ity’’ means to conduct, direct, manage, own, super11 vise, or control an Internet gambling facility. 

12 (11) PERSON.—The term ‘‘person’’ means a 

13 natural person, corporation, casino gambling facility, 

14 or race track, an Internet gambling facility, an 

15 Internet poker facility, a State or State agency, or 

16 an Indian tribe or corporation, agency, or instru17 mentality of an Indian tribe. 

18 (12) QUALIFIED BODY.—The term ‘‘qualified 

19 body’’ means the following: 

20 (A) The Office of Internet Gambling Over21 sight established under section 104(a) and des22 ignated under section 105(a)(2). 

23 (B) Any State agency or regulatory body 

24 of an Indian tribe that has been designated as 


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1 a qualified body under paragraph (1) or (3) of 

2 section 105(a). 

3 (13) QUALIFIED RACE TRACK.—The term 

4 ‘‘qualified race track’’ means a race track that has 

5 been licensed by a regulatory authority of a State or 

6 Indian tribe. 

7 (14) QUALIFYING INTRASTATE LOTTERY.—The 

8 term ‘‘qualifying intrastate lottery’’ means a lottery 

9 or other prize, through the purchase of a chance or 

10 opportunity to win, that is offered by a State or In11 dian tribe— 

12 (A) that is operating lawfully under the 

13 laws of that State or Indian tribe, as the case 

14 may be; 

15 (B) that is not related to a sporting event; 

16 (C) in which the opportunity to win is pre17 dominately subject to chance; and 

18 (D) that provides the chances or oppor19 tunity to win for purchase to participants only 

20 within the boundaries of that State or the In21 dian lands of that Indian tribe, as the case may 

22 be. 

23 (15) QUALIFYING LOTTERY TRANSACTION.— 

24 The term ‘‘qualifying lottery transaction’’ means the 

25 purchase of a chance or opportunity to win a lottery 


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1 or other prize offered by a State lottery, operating 

2 lawfully under the laws of a State or Indian tribe, 

3 that is not sports-related and— 

4 (A) which opportunity to win is predomi5 nantly subject to chance; and 

6 (B) which is authorized by a State or In7 dian tribe. 

8 (16) REMOTE GAMING EQUIPMENT.— 

9 (A) IN GENERAL.—Except as provided in 

10 subparagraph (B), the term ‘‘remote gaming 

11 equipment’’ means electronic or other equip12 ment principally used by or on behalf of an op13 erator of an Internet gambling facility, includ14 ing by any significant vendor to such operator, 

15 to— 

16 (i) register a person’s participation in 

17 Internet gambling and to store information 

18 relating thereto; 

19 (ii) present to persons who are partici20 pating or who may participate in Internet 

21 gambling the game that is to be played; 

22 (iii) determine all or part of, or the ef23 fect of, a result relevant to Internet gam24 bling and to store information relating 

25 thereto; 


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1 (iv) accept payment with respect to 

2 Internet gambling from the player; or 

3 (v) authorize payment of any winnings 

4 in respect of Internet gambling. 

5 (B) EXCEPTION.—The term ‘‘remote gam6 ing equipment’’ does not include the following: 

7 (i) Equipment used for business con8 tinuity, back-up, excess capacity, or other 

9 secondary use. 

10 (ii) A computer which is used by a 

11 person to participate in Internet gambling 

12 unless the computer is provided by or on 

13 behalf of the person who is conducting or 

14 providing the facilities for the game. 

15 (iii) Equipment operated in the ordi16 nary course of providing banking, tele17 communications, or payment processing 

18 services. 

19 (iv) Such other equipment that pro20 vides ancillary services as the Secretary 

21 considers appropriate. 

22 (17) SECRETARY.—The term ‘‘Secretary’’ 

23 means the Secretary of the Treasury. 

24 (18) SIGNIFICANT VENDOR.—The term ‘‘signifi25 cant vendor’’ means a person who— 


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1 (A) on behalf of a licensee, knowingly man2 ages, administers, or controls bets or wagers 

3 that are initiated, received, or otherwise made 

4 within the United States; 

5 (B) on behalf of a licensee, knowingly 

6 manages, administers, or controls the games 

7 with which such bets or wagers are associated; 

8 (C) on behalf of a licensee, develops, main9 tains, or operates the software or other system 

10 programs or hardware on which the games or 

11 the bets or wagers are managed, administered, 

12 or controlled; 

13 (D) provides the trademarks, tradenames, 

14 service marks, or similar intellectual property 

15 under which a licensee identifies its Internet 

16 gambling facility to its customers in the United 

17 States; 

18 (E) sells, licenses, or otherwise receives 

19 compensation for selling or licensing informa20 tion on individuals in the United States that 

21 made bets or wagers with an Internet gambling 

22 facility not licensed under this title via a data23 base or customer lists; 

24 (F) provides any products, services, or as25 sets to a licensee and is paid a percentage of 


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1 gaming revenue or commission fees by the li2 censee (not including fees to financial institu3 tions and payment providers for facilitating a 

4 deposit by a customer); or 

5 (G) with respect to an applicant, proposes 

6 to provide any of the activities, services, or 

7 items identified in subparagraphs (A) through 

8 (F). 

9 (19) SPORTING EVENT.— 

10 (A) IN GENERAL.—Except as provided in 

11 subparagraph (B), the term ‘‘sporting event’’ 

12 means any athletic competition, whether profes13 sional, scholastic, or amateur or any perform14 ance of any athlete in such competitions. 

15 (B) EXCEPTION.—The term ‘‘sporting 

16 event’’ does not include any activity described 

17 in section 3704(a)(4) of title 28, United States 

18 Code. 

19 (20) STATE.—The term ‘‘State’’ means each of 

20 the several States of the United States, the District 

21 of Columbia, and any commonwealth, territory, or 

22 possession of the United States. 

23 SEC. 103. PROHIBITION ON OPERATION OF INTERNET GAM24 BLING FACILITIES. 

25 (a) PROHIBITION.— 


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1 (1) IN GENERAL.—It shall be unlawful for a 

2 person to operate an Internet gambling facility that 

3 offers services to persons in the United States, ex4 cept as authorized under this Act. 

5 (2) EXCEPTION.—Paragraph (1) shall not 

6 apply to the operation of an Internet gambling facil7 ity by a person located inside the United States who 

8 is a licensed operator under this Act; to any quali9 fied race track; to any operator offering qualifying 

10 lottery transactions; to any operator authorized and 

11 licensed to provide services relating to bets or wa12 gers by a State or Indian tribe in compliance with 

13 the law of that State or Indian tribe, as applicable, 

14 and which solely provides services to participants 

15 wholly within the boundaries of such State or the In16 dian lands of such Indian tribe; or to any person en17 gaged outside the United States in which bets or wa18 gers are initiated, received, or otherwise made solely 

19 by individuals located outside the United States. 

20 (b) CRIMINAL PENALTIES.—Any person who violates 

21 this section shall be fined under title 18, United States 

22 Code, imprisoned for not more than 10 years, or both. 

23 SEC. 104. OFFICE OF INTERNET GAMBLING OVERSIGHT. 

24 (a) ESTABLISHMENT.— 


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1 (1) IN GENERAL.—Not later than 180 days 

2 after the date of the enactment of this Act, the Sec3 retary shall establish within the Department of the 

4 Treasury an office to exercise the functions of the 

5 Secretary under this title. 

6 (2) DESIGNATION.—The office established 

7 under paragraph (1) shall be known as the ‘‘Office 

8 of Internet Gambling Oversight’’ (in this section re9 ferred to as the ‘‘Office’’). 

10 (b) EXECUTIVE DIRECTOR.— 

11 (1) IN GENERAL.—The Secretary shall appoint 

12 as the head of the Office an executive director. 

13 (2) EXPERIENCE AND EXPERTISE.—The execu14 tive director of the Office shall be appointed by the 

15 Secretary from among individuals who demonstrate 

16 the following: 

17 (A) Skill and experience in gaming regula18 tion and enforcement. 

19 (B) Experience in criminal investigations 

20 and law enforcement generally. 

21 (C) A reputation for good character, hon22 esty, and integrity. 

23 (3) BACKGROUND INVESTIGATION.—Before ap24 pointing an individual as executive director under 

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1 ground investigation into the financial stability, in2 tegrity, and responsibility of the individual. 

3 (4) LIMITATIONS.—The Secretary may not ap4 point under paragraph (1) an individual who— 

5 (A) has been convicted of a felony; or 

6 (B) maintains any ownership or equity in7 terest or any ongoing business relationship 

8 with— 

9 (i) an operator of a casino gaming fa10 cility, Internet gambling facility, race 

11 track, lottery, or other regulated gambling 

12 entity; or 

13 (ii) A significant vendor. 

14 (c) DELEGATION OF AUTHORITY.— 

15 (1) IN GENERAL.—The Secretary may delegate 

16 to the executive director of the Office any authority, 

17 duty, or responsibility conferred upon the Secretary 

18 by this title. 

19 (2) REGULATORY AUTHORITY OF EXECUTIVE

20 DIRECTOR.—The executive director of the office may 

21 prescribe such regulations and take such actions as 

22 may be necessary to carry out such authorities, du23 ties, or responsibilities delegated to the executive di24 rector by the Secretary paragraph (1). 

25 (d) REGULATIONS AND STANDARDS.— 


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1 (1) REGULATIONS AND STANDARDS NECESSARY

2 TO FUNCTION AS QUALIFIED BODY.—With respect to 

3 the application of this title to the functions of the 

4 Office as a qualified body under section 105(a)(2), 

5 the Secretary shall, not later than 270 days after 

6 the date of the enactment of this Act, prescribe reg7 ulations and standards to implement the require8 ments set out in subsections (d) and (g) of section 

9 106 and section 107. 

10 (2) MANNER OF PRESCRIPTION.—Regulations 

11 prescribed under paragraph (1) shall be prescribed 

12 in accordance with section 553 of title 5, United 

13 States Code. 

14 (e) PUBLICATION OF INFORMATION TO FACILITATE

15 SUBMITTAL OF APPLICATIONS FOR INITIAL DESIGNATION

16 AS QUALIFIED BODIES.—Not later than 150 days after 

17 the date of the enactment of this Act, the Secretary shall 

18 publish in the Federal Register such information as may 

19 be necessary for an applicant to submit a complete appli20 cation under section 105(a)(1)(B). 

21 (f) DETAIL OF GOVERNMENT EMPLOYEES.—Any 

22 Federal Government employee may be detailed to the of23 fice without reimbursement, and such detail shall be with24 out interruption or loss of civil service status or privilege. 


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1 SEC. 105. QUALIFIED BODIES. 

2 (a) DESIGNATION OF QUALIFIED BODIES.— 

3 (1) INITIAL DESIGNATION OF QUALIFIED BOD4 IES.— 

5 (A) DESIGNATION.— 

6 (i) IN GENERAL.—Not later than 270 

7 days after the date of the enactment of 

8 this Act, the Secretary shall designate as 

9 qualified bodies all State agencies, and reg10 ulatory bodies of Indian tribes, that submit 

11 applications under subparagraph (B) and 

12 satisfy the criteria set forth under sub13 paragraph (C). 

14 (ii) SUBSEQUENT DESIGNATIONS.— 

15 After the initial designations— 

16 (I) the Secretary may at any 

17 time designate additional State agen18 cies or regulatory bodies of Indian 

19 tribes as qualified bodies as deemed 

20 appropriate to carry out the goals of 

21 this Act, so long as they meet the cri22 teria set forth under subparagraph 

23 (C); and 

24 (II) notify each such agency or 

25 regulatory body of the determinations 


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1 and designations made under sub2 clause (I). 

3 (B) APPLICATION.—Each State agency or 

4 regulatory body of an Indian tribe seeking to be 

5 designated as a qualified body under subpara6 graph (A) shall submit to the Secretary an ap7 plication therefor in such form and containing 

8 such information as the Secretary may require, 

9 which shall be submitted not later than 180 

10 days after the date of the enactment of this Act 

11 for any such agency or body that seeks to be 

12 among those designated under subparagraph 

13 (A)(i). 

14 (C) STANDARDS FOR QUALIFIED BOD15 IES.—The Secretary shall prescribe strict 

16 threshold requirements for the designation of 

17 agencies or regulatory bodies as qualified bodies 

18 under this paragraph, including standards re19 lating to the following: 

20 (i) The size and qualification of staff 

21 of the qualified body to ensure the quali22 fied body employs sufficient number of en23 forcement agents with experience in gam24 ing regulatory enforcement areas to dis25 charge its intended functions and has the 


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1 sophistication and resources necessary to 

2 evaluate issues unique to the Internet envi3 ronment. 

4 (ii) The length of time the qualified 

5 body has regulated other forms of gaming 

6 or e-commerce to ensure designations of 

7 only those regulatory bodies that have a 

8 history of demonstrated regulatory enforce9 ment and oversight commensurate with the 

10 responsibilities imposed under this title. 

11 (iii) The qualified body’s experience 

12 and willingness to work with Federal au13 thorities, including the Financial Crimes 

14 Enforcement Network. 

15 (iv) The capacity and experience of 

16 the qualified body in conducting rigorous 

17 suitability reviews under section 106. 

18 (v) The adequacy of enforcement and 

19 regulatory authorities for the qualified 

20 body under the law of the applicable State 

21 or Indian tribe, including, at a minimum, 

22 requirements and authorities on the fol23 lowing: 

24 (I) To investigate the suitability 

25 of each person required to be found 


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1 suitable in connection with an applica2 tion or license under this title. 

3 (II) To require licensees to main4 tain appropriate procedures to ensure 

5 the compliance of licensees with the 

6 provisions of this title and the regula7 tions prescribed thereunder. 

8 (III) To examine any licensee 

9 and any books, papers, records, or 

10 other data of licensees and significant 

11 vendors relevant to any recordkeeping 

12 or reporting requirements imposed by 

13 the agency or regulatory body under 

14 this title. 

15 (IV) To summon a licensee, an 

16 applicant, a significant vendor, an of17 ficer or employee of a licensee, appli18 cant, or significant vendor (including 

19 a former officer or employee), or any 

20 person having possession, custody, or 

21 care of the reports and records re22 quired by the agency or regulatory 

23 body as a qualified body under this 

24 title to appear before the agency or 

25 regulatory body at such time and 


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1 place named in the summons, to 

2 produce such books, papers, records, 

3 or other data, and to give such testi4 mony, under oath, as may be relevant 

5 or material to any investigation in 

6 connection with the enforcement o 

7 this title or any application for a li8 cense under this title. 

9 (V) To enforce or direct enforce10 ment of a summons in State or tribal 

11 court, as the case may be. 

12 (VI) To investigate any violation 

13 of a provision of this title, any appli14 cable regulation prescribed under this 

15 title, and any other violation of appli16 cable State or tribal law relating to 

17 the operation of an Internet gambling 

18 facility. 

19 (VII) To conduct continuing re20 views of applicants, licensees, and sig21 nificant vendors and the operation of 

22 Internet gambling facilities by use of 

23 technological means, on-site observa24 tion of facilities, including servers, or 

25 other reasonable means to assure 


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1 compliance with the provisions of this 

2 title and any applicable regulation 

3 prescribed thereunder. 

4 (VIII) To impose civil penalties 

5 for violations of this title and any ap6 plicable regulation prescribed there7 under or applicable order issued there8 under, including State or tribal law 

9 described under this subsection. 

10 (IX) To ensure that the hard11 ware, software, and communications 

12 equipment, randomness, configura13 tion, and network security of the 

14 Internet gambling facility are tested 

15 by an independent testing laboratory. 

16 (X) To resolve disputes between 

17 licensees and the individuals partici18 pating in Internet gambling via the 

19 Internet gambling facilities of the li20 censees. 

21 (vi) Such other standards as the Sec22 retary considers relevant to the ability of 

23 an agency or regulatory body to serve as 

24 an effective qualified body. 


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1 (2) DESIGNATION OF OFFICE OF INTERNET

2 GAMBLING OVERSIGHT.— 

3 (A) IN GENERAL.—Not later than 270 

4 days after the date of the enactment of this 

5 Act, the Secretary shall designate the Office of 

6 Internet Gambling Oversight established under 

7 section 104(a) as a qualified body that may 

8 issue licenses to Internet gambling facility ap9 plicants and regulate the operation of Internet 

10 gambling facilities by any applicant who seeks 

11 to operate a licensed Internet gambling facility 

12 in the United States. 

13 (B) CONSTRUCTION.—Subparagraph (A) 

14 shall not be construed to require any applicant 

15 seeking a license under this title and submitting 

16 an application under section 106(c)(1) to sub17 mit such application directly to the Office of 

18 Internet Gambling Oversight, rather than sub19 mitting such application to a State agency or 

20 regulatory body of an Indian tribe that has 

21 been designated by the Office of Internet Gam22 bling Oversight as a qualified body. 

23 (3) NONQUALIFYING STATE AND TRIBAL REGU24 LATORY AUTHORITIES DUE TO LIMITED EXPERI25 ENCE OR CONFLICTS.— 


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1 (A) IN GENERAL.—The Secretary may not 

2 approve an application from a State agency or 

3 regulatory body of an Indian tribe under para4 graph (1) if— 

5 (i) the agency or regulatory body is lo6 cated in a State or Indian lands that— 

7 (I) has not opted in under sec8 tion 108 and has not demonstrated an 

9 intent to opt in under such section; or 

10 (II) has not opted in under such 

11 section and has demonstrated an in12 tent to opt in under such section but 

13 has failed to opt in under such section 

14 during the 1-year period beginning on 

15 the date of the agency’s or regulatory 

16 body’s application; or 

17 (ii) the members of the agency or reg18 ulatory body are selected or controlled, di19 rectly or indirectly, by a person that has 

20 any ownership interest in an applicant, li21 censee, or significant vendor under this 

22 title or an Internet gambling facility, un23 less— 

24 (I) such applicant or licensee is 

25 licensed by the Secretary; or 


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1 (II) such significant vendor is 

2 certified as suitable by the Secretary 

3 (and remains so certified at all times 

4 while providing services as a signifi5 cant vendor to any licensee under this 

6 title). 

7 (B) NON-CONTROLLING INVESTMENT.—A 

8 non-controlling investment of a State, Indian 

9 tribe, or local government pension, retirement, 

10 annuity, or endowment fund shall not be con11 sidered an ownership interest for purposes of 

12 subparagraph (A)(ii). 

13 (4) WITHDRAWAL OF DESIGNATION.— 

14 (A) IN GENERAL.—Beginning on the date 

15 that is 1 year after the date on which the Sec16 retary prescribes final regulations under this 

17 title, the Secretary may, after providing at least 

18 60 days notice to a qualified body of the Sec19 retary’s intent to do so, withdraw the designa20 tion of a qualified body under this section if the 

21 Secretary determines that— 

22 (i) the qualified body is not in compli23 ance with the requirements of this title or 

24 regulations prescribed thereunder; or 


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1 (ii) the qualified body is not in com2 pliance with the conditions under which 

3 the qualified body was designated. 

4 (B) OPPORTUNITY TO COMPLY.— 

5 (i) IN GENERAL.—The Secretary may 

6 provide a qualified body who receives no7 tice under subparagraph (A) with an op8 portunity to come into compliance as speci9 fied in that notice for a period of not more 

10 than 90 days. 

11 (ii) EXTENSION.—The Secretary may 

12 extend the period in clause (i) by not more 

13 than 180 additional days if the qualified 

14 body has made substantial progress toward 

15 compliance as of the expiration of the first 

16 90 day period. 

17 (C) EFFECT OF NOTICE.—The Secretary 

18 may prohibit a qualified body that receives no19 tice under subparagraph (A) from issuing new 

20 licenses under this title until the Secretary de21 termines that the qualified body is in compli22 ance with the requirements of this title and reg23 ulations prescribed thereunder. 

24 (D) RIGHT TO APPEAL.—A State agency 

25 or regulatory body of an Indian tribe that has 


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1 had its designation as a qualified body with2 drawn under subparagraph (A) or (B) may seek 

3 judicial review of such withdrawal under chap4 ter 7 of title 5, United States Code. 

5 (5) ACTION UPON WITHDRAWAL OF DESIGNA6 TION.— 

7 (A) IN GENERAL.—Not later than 30 days 

8 after the date on which the Secretary withdraws 

9 a designation of a State agency or regulatory 

10 body of an Indian tribe under paragraph (5), 

11 each person with a license issued by the agency 

12 or regulatory body shall— 

13 (i)(I) cease offering, accepting, and 

14 providing services with respect to bets or 

15 wagers from persons located in the United 

16 States under such license; and 

17 (II) return all customer deposits of 

18 United States customers, or place those 

19 sums the return of which to United States 

20 customers is not feasible due to change in 

21 customer address, bank details, or similar 

22 difficulty in escrow in an account with a fi23 nancial institution in the United States for 

24 safekeeping and orderly disposition by the 

25 Secretary; or 


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1 (ii) apply for a new license from a dif2 ferent qualified body. 

3 (B) INTERIM OPERATION.—If a person ap4 plies for a new license under clause (ii) of sub5 paragraph (A), the person may continue the ac6 tivities described in clause (i)(I) of such sub7 paragraph until final action is taken on the li8 cense application by the qualified body. 

9 (C) INTERIM REGULATORY OVERSIGHT.— 

10 (i) IN GENERAL.—Until final action is 

11 taken under subparagraph (B) with re12 spect to a person, the Secretary shall have 

13 enforcement and regulatory authority over 

14 the licensed activities of such person. 

15 (ii) DELEGATION.—The Secretary 

16 may delegate enforcement and regulatory 

17 authority under clause (i) to such qualified 

18 body as the Secretary considers appro19 priate, with the consent of the qualified 

20 body. 

21 (b) OVERSIGHT OF QUALIFIED BODIES.—The Sec22 retary may investigate and take such action as the Sec23 retary considers appropriate with respect to any qualified 

24 body that appears, based upon the Secretary’s own inquiry 

25 or based upon credible information provided by other 


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1 qualified bodies, applicants, licensees, or law enforcement 

2 officials, to be deficient or substantially less rigorous than 

3 other qualified bodies in the discharge of its responsibil4 ities under this title. 

5 SEC. 106. ESTABLISHMENT OF LICENSING PROGRAM FOR 

6 INTERNET GAMBLING. 

7 (a) TREASURY RESPONSIBILITIES AND POWERS.— 

8 The Secretary shall have responsibility and authority for 

9 the following activities: 

10 (1) Reviewing and qualifying applicants to be11 come Internet gambling facilities under section 

12 105(a)(2). 

13 (2) Reviewing and qualifying agencies and regu14 latory bodies under section 105(a)(2). 

15 (3) Exercising oversight over qualified bodies to 

16 ensure that qualified bodies— 

17 (A) comply with the requirements of this 

18 title; and 

19 (B) carry out their regulatory and enforce20 ment functions under this title with appropriate 

21 diligence. 

22 (4) Investigating and taking appropriate reme23 dial action with respect to any qualified body under 

24 section 105. 


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1 (5) Prescribing such regulations as may be nec2 essary to administer and enforce the provisions of 

3 this title, including issuing regulations establishing 

4 rules and procedures for dealing with sums placed in 

5 escrow under subsection (l)(7), section 

6 105(a)(6)(A)(i)(II), and section 114(b)(1)(E). 

7 (6) Employing enforcement agents with suffi8 cient training and experience to administer the re9 quirements of this title and the regulations pre10 scribed thereunder. 

11 (7) Enforcing the requirements of this title by 

12 all appropriate means provided under this title and 

13 other provisions of law. 

14 (b) INTERNET GAMBLING FACILITY LICENSING PRO15 GRAM.— 

16 (1) AUTHORITY TO ISSUE LICENSES LIMITED

17 TO NON-SPORTS RELATED INTERNET GAMBLING.—A 

18 qualified body may issue licenses under this title 

19 only for the operation of non-sports related Internet 

20 gambling facilities. 

21 (2) AUTHORITY TO OPERATE INTERNET GAM22 BLING FACILITY UNDER VALID LICENSE.— 

23 (A) IN GENERAL.—Notwithstanding any 

24 other provision of law and subject to the provi25 sions of this title, a licensee may accept a bet 


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1 or wager with respect to Internet gambling 

2 from an individual located in the United States 

3 and may offer related services so long as the li4 cense of the licensee issued under this title re5 mains in good standing. 

6 (B) ONLY ONE LICENSE REQUIRED.— 

7 Nothing in this title may be construed to re8 quire a person to obtain a license from more 

9 than one qualified body in order to operate an 

10 Internet gambling facility under this title. 

11 (C) SIGNIFICANT VENDORS.— 

12 (i) IN GENERAL.—Except as provided 

13 in clause (ii), if a person seeks a certificate 

14 of suitability from a qualified body to pro15 vide services to a licensee or applicant as 

16 a significant vendor with respect to an 

17 Internet gambling facility, such person 

18 shall not be required to obtain a license 

19 under this title to provide such services 

20 with respect to that Internet gambling fa21 cility. 

22 (ii) EXCEPTION.—If a qualified body 

23 determines that requiring a person de24 scribed in clause (i) to seek a license is 

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1 sion of this title, and requiring so would 

2 otherwise be consistent with the provisions 

3 of this title, such qualified body may re4 quire such person to seek a license under 

5 this title instead of a certificate of suit6 ability. 

7 (3) OPERATION OUTSIDE THE UNITED

8 STATES.— 

9 (A) LIMITATION.—A licensee or an affil10 iate of a licensee may not operate an Internet 

11 gambling facility that accepts a bet or wager 

12 from an individual located outside of the United 

13 States unless the transaction is lawful under 

14 this Act and is not unlawful in the jurisdiction 

15 in which the individual is located. 

16 (B) CONSTRUCTION.—Nothing in this title 

17 shall be construed to authorize a licensee or a 

18 foreign affiliate thereof to accept a bet or wager 

19 from an individual located in any jurisdiction 

20 outside the United States that prohibits the li21 censee or a foreign affiliate from accepting such 

22 bet or wager. 

23 (c) APPLICATION FOR LICENSE.— 

24 (1) APPLICATION.—A person seeking to operate 

25 an Internet gambling facility under this title shall 


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1 submit to the Office of Internet Gambling Oversight 

2 or any other qualified body an application for a li3 cense therefor at such time, in such form, and in 

4 such manner as the qualified body receiving the ap5 plication considers appropriate. 

6 (2) ELEMENTS.—Each application submitted 

7 under paragraph (1) shall include such information 

8 as the qualified body receiving the application con9 siders appropriate, including at a minimum the fol10 lowing: 

11 (A) Complete financial information about 

12 the applicant. 

13 (B) Documentation showing the organiza14 tion of the applicant and all related businesses 

15 and affiliates. 

16 (C) The criminal and financial history of— 

17 (i) the applicant; 

18 (ii) each of the senior executives and 

19 directors of the applicant; 

20 (iii) any other person who is in control 

21 of the applicant; and 

22 (iv) such other persons as the quali23 fied body considers appropriate. 


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1 (D) Such other information as may be nec2 essary for the suitability analysis required 

3 under subsection (d). 

4 (E) Disclosure of all other applications for 

5 licenses previously or simultaneously submitted 

6 under paragraph (1) to other qualified bodies 

7 and whether those applications are pending, 

8 were granted, or were denied. 

9 (F) A detailed description of the appli10 cant’s plan for complying with all applicable re11 quirements and regulations prescribed pursuant 

12 to this title, with particular emphasis on the ap13 plicant’s ability to comply with the regulations 

14 prescribed under subsection (g). 

15 (G) A certification by the applicant that 

16 the applicant consents to personal jurisdiction 

17 over the applicant by Federal courts and in the 

18 courts of the State or Indian tribe of the quali19 fied body to which the applicant has applied 

20 with respect to a civil action relating to the op21 eration of an Internet gambling facility. 

22 (3) REPORTS.— 

23 (A) IN GENERAL.—Each qualified body 

24 shall report all applicants for licensure and the 

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1 retary promptly upon disposition of each appli2 cation or in such intervals as the Secretary may 

3 prescribe. 

4 (B) CONTENTS.—Each report under sub5 paragraph (A) shall include such information or 

6 documentation as the Secretary may require. 

7 (d) STANDARDS FOR LICENSE ISSUANCE; SUIT8 ABILITY QUALIFICATIONS AND DISQUALIFICATION

9 STANDARDS.— 

10 (1) SUITABILITY FOR LICENSING.— 

11 (A) IN GENERAL.—No applicant shall be 

12 eligible to obtain a license under this title un13 less a qualified body, with whom the applicant 

14 has filed an application for a license, has deter15 mined, upon completion of a background check 

16 and investigation, that the applicant, any per17 son considered to be in control of the applicant, 

18 all significant vendors of the applicant, and any 

19 other person determined by the qualified body 

20 as having significant influence on the applicant 

21 are suitable for licensing. 

22 (B) APPLICATION AS REQUEST FOR DE23 TERMINATION OF SUITABILITY.—An application 

24 for a license submitted to a qualified body 

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1 termination of the general character, integrity, 

2 and ability to participate or engage in or be as3 sociated with an Internet gambling facility, as 

4 appropriate, of the applicant, any person con5 sidered to be in control of the applicant, all sig6 nificant vendors of the applicant, and all other 

7 persons determined by the qualified body as 

8 having significant influence on the applicant. 

9 (C) ASSOCIATES.— 

10 (i) IN GENERAL.—If an entity under11 going a determination of suitability under 

12 this paragraph is a corporation, partner13 ship, or other business entity, a back14 ground check and investigation shall be 

15 carried out by the applicable qualified body 

16 with respect to the president or other chief 

17 executive of the corporation, partnership, 

18 or business entity and such other partners 

19 or senior executives and directors or share20 holders of the corporation, partnership, or 

21 entity as the qualified body considers ap22 propriate. 

23 (ii) MINIMUM DETERMINATION.—In 

24 carrying out clause (i), the qualified body 

25 shall, at a minimum, carry out a suitability 


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1 review of the 5 individuals receiving the 

2 most compensation (whether in the form of 

3 salary, bonus, dividends, distributions, dis4 bursement of profits, or otherwise) from 

5 the entity, any person that controls the en6 tity, and such other individuals or entities 

7 as the qualified body considers appro8 priate. 

9 (D) PARITY OF INVESTIGATION AND ANAL10 YSIS.— 

11 (i) DILIGENCE WITH RESPECT TO SIG12 NIFICANT VENDORS AND AFFILIATES.— 

13 Each investigation and analysis of the suit14 ability of a person with respect to an appli15 cation for a license under this title, other 

16 than the applicant for such license, shall be 

17 carried out with the same degree of dili18 gence as the investigation and analysis of 

19 the suitability of the applicant. 

20 (ii) STRINGENCY WITH RESPECT TO

21 CASINO GAMING FACILITIES.—Each quali22 fied body that also issues licenses to casino 

23 gaming facilities shall ensure that each in24 vestigation and analysis of the suitability 

25 of a person carried out by the qualified 


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1 body under this subsection is no less strin2 gent than a suitability review carried out 

3 by the qualified body for the licensing of 

4 casino gaming facilities. 

5 (2) SUITABILITY STANDARDS.—For purposes of 

6 this title, an applicant and any other person subject 

7 to a determination of suitability under paragraph (1) 

8 may only be considered suitable under this title if 

9 the applicant or person demonstrates to the applica10 ble qualified body by clear and convincing evidence 

11 that the applicant or person— 

12 (A) is a person of good character, honesty, 

13 and integrity; 

14 (B) is a person whose prior activities, 

15 criminal record, if any, reputation, habits, and 

16 associations do not— 

17 (i) pose a threat to the public interest 

18 or to the effective regulation and control of 

19 Internet gambling facilities; or 

20 (ii) create or enhance the dangers of 

21 unsuitable, unfair, or illegal practices, 

22 methods, and activities in the conduct of 

23 Internet gambling facilities or the carrying 

24 on of the business and financial arrange25 ments incidental to such facilities; 


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1 (C) is capable of and likely to conduct the 

2 activities for which the applicant is licensed or 

3 receives a certificate of suitability in accordance 

4 with the provisions of this title, any regulations 

5 prescribed under this title, and all other appli6 cable laws; 

7 (D) in the case of an applicant, has or 

8 guarantees acquisition of adequate business 

9 competence and experience in the operation of 

10 casino gaming facilities, Internet gambling fa11 cilities, or Internet gambling facilities; 

12 (E) in the case of an applicant, has or will 

13 obtain sufficient financing for the nature of the 

14 proposed operation and from a suitable source; 

15 and 

16 (F) has disclosed to the qualified body all 

17 known affiliations or relationships, whether di18 rect or indirect, with persons and assets of per19 sons described by section 114(b)(2). 

20 (3) UNSUITABLE.—An applicant or any other 

21 person may not be determined to be suitable under 

22 this subsection if the applicant or such person— 

23 (A) has failed to provide information and 

24 documentation material to a determination of 

25 suitability for licensing under paragraph (1); 


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1 (B) has supplied information which is un2 true or misleading as to a material fact per3 taining to any such determination; 

4 (C) has been convicted of an offense that 

5 is punishable by imprisonment of more than 1 

6 year; 

7 (D) is delinquent in the payment of any 

8 applicable Federal or State tax, tax penalty, ad9 dition to tax, or interest owed to a jurisdiction 

10 in which the applicant or person operates or 

11 does business, unless such payment has been 

12 extended or is the subject of a pending judicial 

13 or administrative dispute; 

14 (E) has not certified in writing, pursuant 

15 to subsection (c)(2)(G), that the person submits 

16 to personal jurisdiction in the United States; 

17 (F) knowingly accepts or knowingly has ac18 cepted bets or wagers on sporting events from 

19 persons located in the United States in violation 

20 of a provision of Federal or State law; 

21 (G) has affiliated with any person that 

22 knowingly accepts or knowingly has accepted 

23 bets or wagers on sporting events from persons 

24 located in the United States in violation of a 

25 provision of Federal or State law; or 


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1 (H) fails to comply with such other stand2 ard as the applicable qualified body considers 

3 appropriate. 

4 (4) ONGOING REQUIREMENT.—A licensee (and 

5 any other person who is required to be determined 

6 to be suitable for licensing in connection with such 

7 licensee) shall meet the standards necessary to be 

8 suitable for licensing or to receive a certificate of 

9 suitability, as the case may be, throughout the term 

10 of the license. 

11 (5) CERTIFICATE OF SUITABILITY FOR SIGNIFI12 CANT VENDORS.— 

13 (A) IN GENERAL.—If a qualifying body de14 termines under paragraph (1) that a significant 

15 vendor of an applicant is suitable under such 

16 paragraph, the qualifying body shall issue a cer17 tificate to such vendor that certifies the suit18 ability of such vendor. 

19 (B) REVOCATION OF CERTIFICATE.—A 

20 qualified body that issues a certificate to a sig21 nificant vendor under subparagraph (A) shall 

22 revoke the certificate if at any time the signifi23 cant vendor no longer meets the standards nec24 essary for a determination of suitability. 


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1 (C) RELIANCE ON CERTIFICATE.—A quali2 fied body may, but need not, rely upon a certifi3 cate issued under subparagraph (A) to a signifi4 cant vendor with respect to one application in 

5 the review of the same significant vendor in 

6 other license applications. 

7 (D) CERTIFICATES ISSUED BY OTHER

8 QUALIFIED BODIES.—A qualified body may, but 

9 need not, accept a certificate issued to a signifi10 cant vendor by another qualified body as evi11 dence of the suitability of the significant ven12 dor. 

13 (6) OTHER VENDORS.— 

14 (A) NOTICE.—A licensee shall promptly 

15 notify the qualified body that issued the license 

16 to the licensee of all persons that are not sig17 nificant vendors that— 

18 (i) direct, provide, or solicit customers 

19 to or for the licensee’s Internet gambling 

20 facility, or materially assist in any of those 

21 tasks, in return for a commission or other 

22 fee; 

23 (ii) hold themselves out to the public 

24 as offering bets or wagers on the licensee’s 

25 behalf; 


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1 (iii) offer bets or wagers under their 

2 own names or brands but using and rely3 ing on the licensee’s Internet gambling fa4 cilities; 

5 (iv) license trademarks, trade names, 

6 service marks, or other similar intellectual 

7 property to the licensee; or 

8 (v) own a substantial interest in or 

9 control a person described in clause (i), 

10 (ii), (iii), or (iv). 

11 (B) SUITABILITY OF OTHER VENDORS AND

12 PERSONS.—A qualified body that reviews an ap13 plication of an applicant for a license or issues 

14 a license to a licensee may, at the sole discre15 tion of the qualified body and on a case-by-case 

16 basis, require as a condition of such license that 

17 a person meet suitability requirements under 

18 paragraph (1) if the person— 

19 (i) is described in subparagraph (A) 

20 with respect to the applicant or licensee; 

21 (ii) provides services to an applicant 

22 or licensee and the qualified body deter23 mines that, with respect to such services, 

24 there is a substantial risk of circumvention 


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1 of the suitability requirements applicable 

2 to significant vendors; or 

3 (iii) is associated with the applicant or 

4 licensee or one of the significant vendors of 

5 the applicant or licensee and the qualified 

6 body determines such person may pose a 

7 threat to the integrity of Internet gambling 

8 facilities operated by the applicant or li9 censee. 

10 (C) INFORMATION.—A qualified body may 

11 require such information from an applicant, li12 censee, significant vendor or other person iden13 tified in this paragraph as the qualified body 

14 considers necessary to carry out this paragraph. 

15 (7) ENFORCEMENT ACTIONS.— 

16 (A) IN GENERAL.—If the Secretary or the 

17 qualified body that issued a license to a licensee 

18 finds that the licensee, or any other person that 

19 is subject to a required determination of suit20 ability in connection with such licensee, ceases 

21 to meet the suitability requirements of this sub22 section at any time during the tenure of the li23 cense, the Secretary or the qualified body may 

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1 siders necessary, the suspension or termination 

2 of the license. 

3 (B) IMPOSITION OF CONDITIONS INCLUD4 ING REMOVAL OF PARTIES.—Notwithstanding a 

5 determination under subparagraph (A), the 

6 Secretary or the qualified body that issued a li7 cense to a licensee may allow the licensee to 

8 continue engaging in licensed activities by im9 posing conditions on the person to which sub10 paragraph (A) is applicable under penalty of 

11 revocation or suspension of a license or certifi12 cate of suitability, including— 

13 (i) the identification of any person de14 termined to be unsuitable; and 

15 (ii) the establishment of appropriate 

16 safeguards to ensure such person is ex17 cluded from any management or involve18 ment in operation of the licensed activities. 

19 (C) SPECIAL RULE FOR ENFORCEMENT OF

20 PROHIBITION ON UNLAWFUL SPORTS WAGER21 ING.—If the Secretary or a qualified body finds 

22 that a licensee is no longer suitable under this 

23 subsection because such licensee has accepted 

24 bets or wagers as described in paragraph (3)(F) 

25 or has affiliated as described in paragraph 


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1 (3)(G), the Secretary or the qualified body, as 

2 the case may be, shall revoke the license of such 

3 licensee in addition to the imposition of such 

4 other penalties as the Secretary or qualified 

5 body considers appropriate under this title. 

6 (8) ADMINISTRATIVE PROVISIONS.— 

7 (A) BACKGROUND CHECK AND INVESTIGA8 TION.—Each qualified body shall establish 

9 standards and procedures for conducting back10 ground checks and investigations for purposes 

11 of this subsection. 

12 (B) NON-ADMISSIBILITY OF STATEMENTS

13 FOR PURPOSES OF DEFAMATION ACTIONS.— 

14 Any written or oral statement made in the 

15 course of an official proceeding of the Secretary 

16 or a qualified body, by any member thereof, or 

17 any witness testifying under oath which is rel18 evant to the purpose of the proceeding and re19 lates to the review of an application for a li20 cense under this title shall not be admissible in 

21 any Federal or State court in a civil action to 

22 prove defamation. 

23 (C) PRESERVATION OF PRIVILEGE RECOG24 NIZED UNDER OTHER PROVISIONS OF LAW.— 

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1 sion of Federal, State, or tribal law, including 

2 attorney-client, physician-patient, and account3 ant-client privileges, shall not be waived or lost 

4 because a document or communication other5 wise protected by the privilege is disclosed to 

6 the Secretary or a qualified body under this 

7 title. 

8 (D) CONFIDENTIALITY.— 

9 (i) Except as set forth in provision (ii) 

10 of this subsection, any communication or 

11 document, except information that is al12 ready public, shall be treated as confiden13 tial and may not be disclosed, in whole or 

14 part, by the Secretary or a qualified body 

15 without a lawful court order or as other16 wise required by law, if the communication 

17 or document is— 

18 (I) required by the Secretary or 

19 qualified body to be disclosed by the 

20 applicant, licensee, or significant ven21 dor, including applications, financial 

22 or earnings information, and criminal 

23 records, whether of the applicant or li24 censee or of any affiliate, employee, 


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1 officer, director or significant vendor 

2 thereof, or of any other third-party; 

3 (II) prepared or obtained by an 

4 agent or employee of the Secretary or 

5 qualified body that contains informa6 tion described in clause (i); or 

7 (III) submitted by the applicant, 

8 licensee, or significant vendor in con9 nection with a pending application or 

10 existing license. 

11 (ii) Nothing in this subsection shall 

12 limit the disclosure of information provided 

13 by an applicant, licensee, or significant 

14 vendor to the Secretary or qualified body 

15 to any official of the United States, or to 

16 any State regulatory or enforcement agen17 cy, requesting such information for any au18 thorized purpose under Federal or State 

19 law, including but not limited to the ad20 ministration or enforcement of Federal or 

21 State laws concerning internet gambling, 

22 U.S. tax laws, consumer protection, data 

23 protection, financial regulation, or for the 

24 purposes of any civil or criminal investiga25 tion. 


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1 (e) ASSESSMENTS FOR ADMINISTRATIVE EX2 PENSES.— 

3 (1) USER FEES.— 

4 (A) IN GENERAL.—The cost of admin5 istering this title with respect to each applicant, 

6 licensee, and significant vendor, including the 

7 cost of any review or examination of a licensee 

8 or its significant vendors to ensure compliance 

9 with the terms of the license and this title, shall 

10 be assessed by the qualified body receiving an 

11 application or issuing a license against the ap12 plicant, licensee, or significant vendor, as the 

13 case may be, by written notice in an amount 

14 that the qualified body determines is necessary 

15 to meet the qualified body’s expenses in car16 rying out such administration, review, or exam17 ination. 

18 (B) EXPENSES FOR REVIEW OR EXAMINA19 TION.—Expenses that are attributable to review 

20 or examination of a particular applicant, li21 censee, or significant vendor shall be assessed 

22 under subparagraph (A) against that applicant, 

23 licensee, or significant vendor. 


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1 (C) EXPENSES FOR GENERAL ADMINISTRA2 TION.—Expenses for general administration 

3 shall be assessed against all licensees equally. 

4 (D) USER FEES ESTABLISHED BY SEC5 RETARY.— 

6 (i) IN GENERAL.—The Secretary may 

7 establish user fees to be paid by applicants, 

8 licensees, and significant vendors in 

9 amounts the Secretary determines nec10 essary to meet the Secretary’s cost of ad11 ministering this title. 

12 (ii) COLLECTION BY QUALIFIED BOD13 IES.—Qualified bodies shall collect user 

14 fees established under clause (i) from ap15 plicants, licensees, and significant vendors 

16 and turn them over promptly to the Sec17 retary. 

18 (iii) DISPOSITION OF USER FEES.— 

19 Amounts assessed by the Secretary as user 

20 fees under clause (i) shall— 

21 (I) be available to the Secretary 

22 to cover expenses incurred by the Sec23 retary in carrying out the provisions 

24 of this title; and 


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1 (II) not be construed to be Gov2 ernment funds or appropriated mon3 ies, or subject to apportionment for 

4 the purposes of any other provision of 

5 law. 

6 (E) DISPOSITION OF USER FEES.—Except 

7 as provided in subparagraph (D), amounts as8 sessed by a qualified body as user fees under 

9 this paragraph shall— 

10 (i) be available to the qualified body 

11 to cover expenses incurred by the qualified 

12 body in carrying out the provisions of this 

13 title; and 

14 (ii) except in the case of the Office of 

15 Internet Gambling Oversight established 

16 under section 104, not be construed to be 

17 Government funds or appropriated monies, 

18 or subject to apportionment for the pur19 poses of any other provision of law. 

20 (F) COLLECTION.—If a licensee or signifi21 cant vendor fails to pay a user fee to a qualified 

22 body under this paragraph after the assessment 

23 of the fee has become final— 

24 (i) the qualified body may recover the 

25 amount assessed by action in a court of 


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1 the State or Indian tribe of the qualified 

2 body or in the United States district court 

3 in the State in which such qualified body 

4 is located, along with any costs of collec5 tion and attorney fees; and 

6 (ii) such failure may be grounds for 

7 denial of an application for a license under 

8 this title or revocation of a license or cer9 tificate of suitability under this title. 

10 (G) PAYMENT OF SIGNIFICANT VENDOR

11 USER FEES BY APPLICANTS AND LICENSEES.— 

12 A user fee assessed against a significant vendor 

13 may be paid by an applicant or licensee on be14 half of the significant vendor. 

15 (2) DIRECT AND EXCLUSIVE OBLIGATION OF

16 LICENSEE.—With respect to a licensee, a user fee 

17 shall be the direct and exclusive obligation of the li18 censee and may not be deducted from amounts avail19 able as deposits to any person placing a bet or wager 

20 with the licensee. 

21 (f) APPROVAL OF LICENSE.— 

22 (1) IN GENERAL.—Except as provided in para23 graph (2), a qualified body may issue to an appli24 cant a license under this title for the operation of an 

25 Internet gambling facility if the applicant meets the 


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1 criteria established by the qualified body under this 

2 title. 

3 (2) AUTHORITY OF SECRETARY TO REVOKE LI4 CENSES.— 

5 (A) IN GENERAL.—Notwithstanding any li6 cense or certificate of suitability issued by a 

7 qualified body, the Secretary may suspend or 

8 revoke such license or certificate if the Sec9 retary has reason to believe that the recipient 

10 does not meet the suitability requirements es11 tablished under subsection (d) or, as applicable, 

12 any other requirement imposed on a licensee 

13 under this title. 

14 (B) NO AUTHORITY TO OVERTURN DENI15 ALS AND TERMINATIONS.—The Secretary may 

16 not overturn a decision by a qualified body 

17 (other than the Office of Internet Gambling 

18 Oversight) to deny or to terminate a license or 

19 to deny or revoke a certificate of suitability. 

20 (3) CONFLICTS BETWEEN QUALIFIED BOD21 IES.—If a qualified body denies a license, terminates 

22 a license, denies a certificate of suitability, or re23 vokes a certificate of suitability to a person and 

24 within 1 year of such denial, termination, or revoca25 tion another qualified body grants such person a liVerDate Mar 15 2010 23:13 Jun 10, 2013 Jkt 029200 PO 00000 Frm 00057 Fmt 6652 Sfmt 6201 E:\BILLS\H2282.IH H2282

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1 cense or certificate of suitability, the Secretary 

2 shall— 

3 (A) commence a review of such license or 

4 certificate of suitability; and 

5 (B) not later than 90 days after such com6 mencement, determine whether to act under 

7 paragraph (2). 

8 (4) CONTROL DEFINED.—In this subsection, 

9 the term ‘‘control’’, with respect to a person, means 

10 the possession, directly or indirectly, of the power to 

11 direct or influence the direction of the management 

12 or policies of the person, whether through the owner13 ship of voting securities, through a management, ex14 ecutive officer, or board position, by shareholders or 

15 similar agreement, or otherwise. 

16 (g) SAFEGUARDS REQUIRED OF LICENSEE.— 

17 (1) IN GENERAL.—No qualified body shall issue 

18 a license under this title unless the qualified body— 

19 (A) prescribes regulations that prohibit a 

20 person from receiving or retaining a license 

21 under this title unless the person maintains or 

22 requires mechanisms so that the requirements 

23 described in paragraph (2) are met with respect 

24 to the operation of an Internet gambling facil25 ity; and 


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1 (B) reviews the applicant’s ability to com2 ply with the requirements of this subsection, in3 cluding by testing the applicant’s systems and 

4 software, or by mandating such testing by an 

5 independent, qualified entity. 

6 (2) SAFEGUARDS.—The requirements described 

7 in this paragraph are as follows: 

8 (A) PROHIBITION ON UNDERAGE GAM9 ING.—Appropriate safeguards to ensure, to a 

10 reasonable degree of certainty, that the indi11 vidual placing a bet or wager is not younger 

12 than 21 years of age, at the time of registration 

13 and all log ons. 

14 (B) PROHIBITED LOCATIONS.—Appro15 priate safeguards to ensure, to a reasonable de16 gree of certainty, that the individual placing a 

17 bet or wager is physically located in a jurisdic18 tion that has opted in under section 108 at the 

19 time the bet or wager is placed, at the time of 

20 registration and all log ons. 

21 (C) COLLECTION OR REPORTING OF CUS22 TOMER TAXES.—Appropriate mechanisms to 

23 ensure, to a reasonable degree of certainty, that 

24 all taxes relating to Internet gambling from 

25 persons engaged in bets or wagers relating to 


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1 such Internet gambling are collected or re2 ported, as required by law, at the time of any 

3 payment of proceeds of such bets or wagers. 

4 (D) COLLECTION OR REPORTING OF TAXES

5 OF LICENSEE.—Appropriate mechanisms to en6 sure that all taxes relating to the operation of 

7 an Internet gambling facility from any licensee 

8 are collected as required by law and that ade9 quate records to enable later audit or 

10 verification are maintained. 

11 (E) REPORTING OF FEES OF LICENSEE.— 

12 Appropriate mechanisms to ensure that ade13 quate records are maintained to enable later 

14 audit or verification that the licensee has paid 

15 all fees required under this title. 

16 (F) SAFEGUARDS AGAINST FINANCIAL

17 CRIME.—Appropriate safeguards to prevent, to 

18 a reasonable degree of certainty, fraud, money 

19 laundering, tax evasion, and terrorist financing. 

20 (G) SAFEGUARDS AGAINST COMPULSIVE

21 PLAY.—Appropriate safeguards to ensure, to a 

22 reasonable degree of certainty, compliance with 

23 the requirements of section 107(b). 

24 (H) PRIVACY SAFEGUARDS.—Appropriate 

25 safeguards to protect, to a reasonable degree of 


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1 certainty, the privacy and Internet security of 

2 any person engaged in bets or wagers with the 

3 licensee’s Internet gambling facility. 

4 (I) PAYMENT OF ASSESSMENTS.—Appro5 priate mechanisms to ensure that any user fee 

6 required under subsection (e) is paid to the 

7 qualified body. 

8 (J) HONEST GAMES.—Appropriate safe9 guards to ensure, to a reasonable degree of cer10 tainty, that Internet gambling games are fair 

11 and honest, and to prevent, to a reasonable de12 gree of certainty, cheating, including collusion, 

13 and use of cheating devices, including use of 

14 software programs (sometimes referred to as 

15 ‘‘bots’’) that make bets or wagers according to 

16 algorithms. 

17 (K) SEGREGATION OF PLAYER FUNDS.— 

18 Appropriate safeguards to ensure player funds 

19 are held in accounts segregated from the funds 

20 of licensees and are otherwise protected from 

21 corporate insolvency, financial risk, or criminal 

22 or civil actions against the licensee. 

23 (L) OTHER REQUIREMENTS.—Such other 

24 mechanisms and safeguards as the qualified 

25 body may establish by regulation. 


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1 (h) LOCATION OF REMOTE GAMING EQUIPMENT.— 

2 (1) WITHIN THE UNITED STATES.—A licensee 

3 shall maintain its remote gaming equipment within 

4 the territory of the United States throughout the 

5 term of its license. 

6 (2) WITHIN TERRITORY OF QUALIFIED BODY.— 

7 A qualified body may require a licensee of the quali8 fied body to locate the remote gaming equipment of 

9 the licensee within the territory of the State or In10 dian tribe of the qualified body if the qualified body 

11 determines that such requirement will advance the 

12 regulatory interests of this title. 

13 (i) LICENSE IS A PRIVILEGE NOT A RIGHT.— 

14 (1) IN GENERAL.—A decision by a qualified 

15 body not to grant a person a license or certificate of 

16 suitability, or to terminate a license or revoke a cer17 tificate of suitability, is not reviewable under the law 

18 of any jurisdiction other than the jurisdiction of the 

19 qualified body. 

20 (2) APPEAL.—With respect to a decision de21 scribed in paragraph (1) of a qualified body, the 

22 State or Indian tribe of the jurisdiction of the quali23 fied body may, but need not, provide an opportunity 

24 to appeal such decision. 

25 (j) TERM, RENEWAL, AND TRANSFER OF LICENSE.— 


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1 (1) TERM.—Any license issued under this title 

2 shall be issued for a 5-year term beginning on the 

3 date of issuance. 

4 (2) RENEWAL.—A license may be renewed in 

5 accordance with requirements prescribed by the 

6 qualified body that issued the license under this 

7 title. 

8 (3) TRANSFER.—A transfer of a license, change 

9 of control of a licensee, or change in significant ven10 dor shall require prior approval by the qualified body 

11 that issued the license. The qualified body shall at 

12 a minimum ensure the suitability requirements of 

13 subsection (d) continue to be satisfied before approv14 ing any such transfer or change. 

15 (k) ADMINISTRATIVE PROVISIONS.— 

16 (1) DETERMINATION OF INTERNET GAM17 BLING.— 

18 (A) INITIAL DETERMINATION BY QUALI19 FIED BODY.—A determination whether a game, 

20 hand, tournament, or other contest of a licensee 

21 is authorized Internet gambling under this Act, 

22 and not prohibited sports-related Internet gam23 bling, shall be made in the first instance by the 

24 qualified body that issued the license to such li25 censee under this title. 


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1 (B) CHALLENGES.— 

2 (i) IN GENERAL.—A licensee or quali3 fied body may challenge whether a game, 

4 hand, tournament, or other contest of an5 other licensee is sports-related Internet 

6 gambling. 

7 (ii) CHALLENGE MADE WITH SEC8 RETARY.—A challenge made under clause 

9 (i) shall be made with the Secretary. 

10 (iii) DETERMINATION MADE BY SEC11 RETARY WITHIN 30 DAYS.—If a challenge 

12 is made under clause (i), the Secretary 

13 shall make a determination whether the 

14 game, hand, tournament, or other contest 

15 is sports-related Internet gambling not 

16 later than 30 days after the date on which 

17 the challenge is made. 

18 (iv) OPERATION UNTIL DETERMINA19 TION.—A licensee that offers a game, 

20 hand, tournament, or other contest that is 

21 challenged under clause (i) may continue 

22 to offer such game, hand, tournament, or 

23 other contest until the Secretary makes a 

24 determination under clause (iii). 

25 (C) APPEALS.— 


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1 (i) IN GENERAL.—Not later than 30 

2 days after the date on which the Secretary 

3 makes a determination under subpara4 graph (B)(iii), a licensee or a qualified 

5 body may appeal such determination under 

6 chapter 7 of title 5, United States Code. 

7 (ii) OPERATION PENDING APPEAL.— 

8 During the period in which a game, hand, 

9 tournament, or other contest is being chal10 lenged through an appeal under clause (i), 

11 the United States District Court for the 

12 District of Columbia may allow a licensee 

13 to continue offering the game, hand, tour14 nament, or other contest in full compliance 

15 with the terms of its existing license and 

16 any other conditions the court considers 

17 necessary, if the court determines that— 

18 (I) the licensee has a reasonable 

19 likelihood of success on the merits; 

20 and 

21 (II) allowing the licensee to con22 tinue offering the challenged game, 

23 hand, tournament, or other contest 

24 while the appeal is pending will not 

25 threaten the public interest. 


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1 (2) CHALLENGES UNDER STATE LAW.—Except 

2 as provided in paragraph (1) and unless otherwise 

3 specifically provided in this title, actions taken by a 

4 qualified body other than the Office of Internet 

5 Gambling Oversight may be challenged by applicants 

6 and licensees only as permitted under the law of the 

7 State or Indian tribe in which the qualified body is 

8 located. 

9 (3) SUMMONS.— 

10 (A) IN GENERAL.—The Secretary may 

11 issue a summons with respect to an applicant 

12 or licensee necessary to carry out the provisions 

13 of this title. 

14 (B) PRODUCTION AT DESIGNATED SITE.— 

15 A summons issued by the Secretary pursuant to 

16 this paragraph may require that books, papers, 

17 records, or other data stored or maintained at 

18 any place be produced at any— 

19 (i) business location of a licensee or 

20 applicant for a license; 

21 (ii) designated location in the State or 

22 Indian lands of the applicable qualified 

23 body; or 

24 (iii) designated location in the District 

25 of Columbia. 


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1 (C) NO LIABILITY FOR EXPENSES.—The 

2 Secretary shall not be liable for any expense in3 curred in connection with the production of 

4 books, papers, records, or other data under this 

5 paragraph. 

6 (D) SERVICE OF SUMMONS.—Service of a 

7 summons issued under this subsection may be 

8 by registered mail or in such other manner cal9 culated to give actual notice as determined by 

10 the Secretary. 

11 (E) AUTHORIZATION TO INVOKE AID OF

12 COURTS.—The Secretary may invoke the aid of 

13 any court of the United States to compel com14 pliance with the summons within the jurisdic15 tion of which— 

16 (i) the investigation which gave rise to 

17 the summons or the examination is being 

18 or has been carried on; 

19 (ii) the person summoned is an inhab20 itant; or 

21 (iii) the person summoned carries on 

22 business or may be found. 

23 (F) POWER OF COURTS TO COMPEL AP24 PEARANCE.—The court may issue an order reVerDate Mar 15 2010 23:13 Jun 10, 2013 Jkt 029200 PO 00000 Frm 00067 Fmt 6652 Sfmt 6201 E:\BILLS\H2282.IH H2282

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1 quiring the person summoned to appear before 

2 the Secretary— 

3 (i) to produce books, papers, records, 

4 and other data; 

5 (ii) to give testimony as may be nec6 essary to explain how such material was 

7 compiled and maintained; 

8 (iii) to allow the Secretary to examine 

9 the business of a licensee; and 

10 (iv) to pay the costs of the proceeding. 

11 (G) CONTUMACY OR REFUSAL.—Any fail12 ure to obey the order of the court under this 

13 paragraph may be punished by the court as a 

14 contempt thereof. All process in any case under 

15 this subsection may be served in any judicial 

16 district in which such person may be found. 

17 (l) DISCIPLINARY ACTION.— 

18 (1) IN GENERAL.—A licensee may be subject to 

19 disciplinary action, including the imposition of civil 

20 penalties or suspension or revocation of its license, 

21 by a qualified body that issued a license to the li22 censee or by the Secretary if the licensee fails to 

23 comply with any provision of this title, any regula24 tion prescribed thereunder, or any other applicable 

25 provision of State or tribal law. 


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1 (2) INITIATING AGENCY.—Only the Secretary 

2 or the qualified body which granted the license to a 

3 licensee may initiate disciplinary action under this 

4 title against the licensee. 

5 (3) SAVINGS PROVISION.—Nothing in this sub6 section shall be construed to limit or alter the appli7 cation of any law other than this title to a licensee 

8 or affiliated person, or to effect the enforcement of 

9 such law by the appropriate law enforcement admin10 istrative, or regulatory entity. 

11 (4) DISCIPLINARY PROCEDURES.— 

12 (A) IN GENERAL.—A qualified body shall 

13 commence disciplinary action under this sub14 section against a licensee upon service of a for15 mal written complaint upon the licensee, with a 

16 copy forwarded to the Secretary, that sets forth 

17 the grounds for the disciplinary action and the 

18 proposed penalty that is being sought, which 

19 may include any or all of the imposition of a 

20 fine as provided pursuant to subsection (m)(1) 

21 or limitation, condition, suspension or revoca22 tion of the license. 

23 (B) IN ACCORDANCE WITH LAW OF JURIS24 DICTION OF QUALIFIED BODY.—The process for 

25 disciplinary action under this subsection shall 


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1 proceed according to the law of the jurisdiction 

2 of the applicable qualified body. 

3 (5) FINALITY OF ACTION AND APPEALS.— 

4 (A) FINALITY.—Any disciplinary action 

5 under this subsection shall be treated as a final 

6 action. 

7 (B) ACTION BY QUALIFIED BODIES.—A li8 censee aggrieved by disciplinary action under 

9 this subsection by a qualified body may file an 

10 appeal in the jurisdiction where the qualified 

11 body taking such action is located only to the 

12 extent permitted by the law of such jurisdiction, 

13 or in Federal court as authorized by Federal 

14 law. 

15 (6) PENDING APPEAL.—During the period in 

16 which a suspension or revocation of an existing li17 cense is being challenged through a pending judicial 

18 proceeding, the court handling the challenge may 

19 allow the licensee to continue offering bets and wa20 gers in full compliance with the terms of its existing 

21 license and any other conditions the court considers 

22 necessary, if the court determines that— 

23 (A) the appellant has a reasonable likeli24 hood of success on the merits; and 


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1 (B) allowing the appellant to continue of2 fering bets and wagers while the appeal is pend3 ing will not threaten the public interest. 

4 (7) RETURN OF CUSTOMER FUNDS.—If a li5 censee’s license is revoked and no appeal pursuant 

6 to paragraph (5) is pending, the licensee shall— 

7 (A) to the degree feasible, return all cus8 tomer funds to United States customers in an 

9 orderly manner not later than 30 days after the 

10 date of the revocation of the license; and 

11 (B) place in escrow those sums return of 

12 which to United States customers is not feasible 

13 due to change in customer address, bank de14 tails, or similar difficulty in an account with a 

15 financial institution in the United States for 

16 safekeeping and orderly disposition by the Sec17 retary. 

18 (8) REFERRAL TO ATTORNEY GENERAL.—If, in 

19 the course of carrying out the provisions of this title, 

20 the Secretary or a qualified body finds a substantial 

21 basis to believe that a person has violated section 

22 103(a), the Secretary or qualified body shall refer 

23 such matter to the Attorney General. 

24 (m) CIVIL MONETARY PENALTIES.— 

25 (1) IN GENERAL.— 


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1 (A) PENALTIES ASSESSED BY QUALIFIED

2 BODIES.—A qualified body may assess upon 

3 any licensee or other person subject to the re4 quirements of this title for each violation of this 

5 title or any regulation prescribed or order 

6 issued under this title, a civil penalty of not 

7 more than the greater of— 

8 (i) the amount involved in the viola9 tion, if any; 

10 (ii) $250,000 for an individual and 

11 $750,000 for a corporation; or 

12 (iii) such other amount as provided 

13 under the applicable State or tribal law of 

14 the qualified body. 

15 (B) PENALTIES ASSESSED BY SEC16 RETARY.—The Secretary may assess upon any 

17 licensee or other person subject to the require18 ments of this title for each violation of this title 

19 or any regulation prescribed or order issued 

20 under this title, a civil penalty of not more than 

21 the greater of— 

22 (i) the amount involved in the viola23 tion, if any; or 

24 (ii) $250,000 for an individual and 

25 $750,000 for a corporation. 


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1 (C) NOT CUMULATIVE.— 

2 (i) IN GENERAL.—The penalties au3 thorized under subparagraphs (A) and (B) 

4 shall not be cumulative and only one such 

5 penalty may be assessed per violation. 

6 (ii) CONSTRUCTION.—Clause (i) shall 

7 not be construed to limit the authority of 

8 a qualifying body or the Secretary, as the 

9 case may be, to pursue a civil penalty for 

10 each violation of a related series of viola11 tions. 

12 (D) FAILURE TO OBTAIN A LICENSE.— 

13 Notwithstanding any other provision of law, the 

14 Secretary shall assess upon a person that is re15 quired to maintain a license under this title, but 

16 fails to maintain a license under this title, a 

17 civil penalty of not more than the greater of— 

18 (i) the amount of bets or wagers 

19 taken by the person from players in the 

20 United States during the period that a li21 cense was needed but not held by the per22 son; or 

23 (ii) $1,000,000 per day that the per24 son accepts bets or wagers from players in 

25 the United States during the period that a 


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1 license was needed but not held by the per2 son. 

3 (E) CONSTRUCTION.—Nothing in this 

4 paragraph shall be construed to affect the abil5 ity of a law enforcement official to seek crimi6 nal penalties against a person. 

7 (2) ASSESSMENT.— 

8 (A) ENFORCEMENT BY QUALIFIED BOD9 IES.—Qualified bodies and such other entities 

10 as are authorized by applicable State or tribal 

11 law shall enforce the provisions of this title 

12 under the law of the applicable State or Indian 

13 tribe, and penalties shall be determined, review14 able, collectable, and disposed of as provided 

15 under such law. 

16 (B) ENFORCEMENT BY SECRETARY.— 

17 (i) WRITTEN NOTICE.—Any penalty 

18 imposed under paragraph (1)(B) shall be 

19 assessed and collected by the Secretary by 

20 written notice. 

21 (ii) FINALITY OF ASSESSMENT.—If, 

22 with respect to any assessment under para23 graph (1)(B), a hearing is not requested 

24 pursuant to clause (v) within the period of 


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1 time allowed under such clause, the assess2 ment shall constitute a final agency order. 

3 (iii) AUTHORITY TO MODIFY OR

4 REMIT PENALTY.—The Secretary may 

5 compromise, modify, or remit any penalty 

6 which the Secretary may assess or has al7 ready assessed under paragraph (1)(B). 

8 (iv) MITIGATING FACTORS.—In deter9 mining the amount of any penalty imposed 

10 under paragraph (1)(B), the Secretary 

11 shall take into account the appropriateness 

12 of the penalty with respect to the fol13 lowing: 

14 (I) The size of the financial re15 sources and the good faith of the per16 son against whom the penalty is as17 sessed. 

18 (II) The gravity of the violation. 

19 (III) The history of previous vio20 lations. 

21 (IV) Such other matters as jus22 tice may require. 

23 (v) HEARING.—The person against 

24 whom any penalty is assessed under para25 graph (1)(B) shall be afforded a hearing 


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1 by the Secretary if such person submits to 

2 the Secretary a request for such hearing 

3 not later than 20 days after the date of the 

4 issuance of the notice of assessment. 

5 (vi) COLLECTION.— 

6 (I) REFERRAL.—If any person 

7 fails to pay an assessment after any 

8 penalty assessed under this subpara9 graph has become final, the Secretary 

10 shall recover the amount assessed by 

11 action in the appropriate United 

12 States district court. 

13 (II) SCOPE OF REVIEW.—In any 

14 civil action under subclause (I), the 

15 validity and appropriateness of the 

16 penalty shall be subject to review for 

17 abuse of agency discretion. 

18 (vii) DISBURSEMENT.—All penalties 

19 collected under authority of paragraph 

20 (1)(B) shall be deposited into the Treasury 

21 of the United States. 

22 (3) CONDITION FOR LICENSURE.—Payment by 

23 a licensee of any civil penalty assessed under this 

24 subsection that has become final shall be a require25 ment for the retention of its license. 


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1 (n) LIST OF LICENSED INTERNET GAMBLING FA2 CILITIES.—The Secretary shall establish and maintain a 

3 list of all Internet gambling facilities licensed under this 

4 section. The Secretary shall update such list regularly and 

5 make such list publicly available on an Internet website. 

6 SEC. 107. COMPULSIVE GAMING, RESPONSIBLE GAMING, 

7 AND SELF-EXCLUSION PROGRAM REQUIRE8 MENTS. 

9 (a) REGULATIONS REQUIRED.— 

10 (1) IN GENERAL.—Each qualified body shall, 

11 before issuing any licenses under this title, prescribe 

12 regulations for the development of a Compulsive 

13 Gaming, Responsible Gaming, and Self-Exclusion 

14 Program that each licensee of that qualified body 

15 shall implement as a condition of licensure. 

16 (2) OUTREACH.—The regulations required by 

17 paragraph (1) shall also provide for the establish18 ment of a program to alert the public to the exist19 ence, consequences, and availability of the self-exclu20 sion list established under subsection (c). 

21 (b) MINIMUM REQUIREMENTS.—Under each pro22 gram under subsection (a), a licensee shall, under the 

23 scope of the license issued the licensee under this title, 

24 at a minimum— 


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1 (1) provide informational materials written in 

2 plain language about responsible gaming, including 

3 information about the self-exclusion list established 

4 under subsection (c) and how a player may request 

5 placement on the list, each time a player signs in to 

6 make a bet or wager, which materials shall be pro7 vided via a prominently displayed hyperlink or com8 parable mechanism; 

9 (2) provide informational materials about re10 sponsible gaming to any player that requests such 

11 materials; 

12 (3) make continuously available individualized 

13 responsible gaming options that any customer may 

14 choose, including allowing customers to self-limit de15 posits amounts, frequency of play, and losses, as well 

16 as their access to the issuance of credit, check cash17 ing, or direct mail marketing by the licensee, in each 

18 case as and to the extent that the qualified body 

19 may consider appropriate; 

20 (4) ensure to a reasonable degree of certainty 

21 that persons on the list of self-excluded persons es22 tablished pursuant to subsection (c) are prevented 

23 from initiating any bets or wagers within the scope 

24 of this title; and 


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1 (5) ensure that the information required under 

2 this subsection is clearly and prominently made 

3 available by the licensee in each language in which 

4 services of the Internet gambling facility of the li5 censee are offered. 

6 (c) LIST OF PERSONS SELF-EXCLUDED.— 

7 (1) ESTABLISHMENT.— 

8 (A) LISTS MAINTAINED BY QUALIFIED

9 BODIES.— 

10 (i) IN GENERAL.—Each qualified body 

11 shall establish and maintain a list of per12 sons self-excluded from playing Internet 

13 gambling through Internet gambling facili14 ties licensed by the qualified body. 

15 (ii) SUBMITTAL TO SECRETARY.—At 

16 the end of each day, each qualified body 

17 shall submit to the Secretary a current 

18 copy of the list established and maintained 

19 by the qualified body under clause (i). 

20 (B) MASTER LIST MAINTAINED BY SEC21 RETARY.— 

22 (i) IN GENERAL.—The Secretary shall 

23 establish and maintain a master list of all 

24 persons self-excluded from playing Internet 

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1 ties licensed under this title. Such list shall 

2 consist of all persons submitted under sub3 paragraph (A)(ii). 

4 (ii) AVAILABILITY.—The Secretary 

5 shall make the master list established and 

6 maintained under clause (i) available to all 

7 qualified bodies and licensees on an ongo8 ing basis and licensees shall ensure to a 

9 reasonable degree of certainty that persons 

10 on the master list of self-excluded persons 

11 are prevented from initiating any bets or 

12 wagers within the scope of this title. 

13 (iii) SHARING OF INFORMATION.—(I) 

14 Notwithstanding any other provision of 

15 law, qualified bodies and licensees may 

16 share information relating to persons on 

17 the master list among one another and 

18 with other regulators, whether Federal, 

19 State, tribal, local, or foreign, for the pur20 pose of facilitating the prevention of self21 excluded persons from initiating any bets 

22 or wagers within the scope of this title. 

23 (II) The Secretary shall establish ap24 propriate safeguards for the purpose of 

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1 sonal information shared pursuant to this 

2 clause, to prevent the disclosure of such in3 formation to unauthorized persons or for 

4 any purpose other than facilitating the pre5 vention of self-excluded persons from initi6 ating any bets or wagers within the scope 

7 of this title. 

8 (C) PLACEMENT REQUEST.—Any person 

9 may request placement on the list of self- ex10 cluded persons by— 

11 (i) acknowledging in a manner to be 

12 established by each qualified body with re13 spect to its licensees that the person wishes 

14 to be denied gaming privileges within the 

15 scope of this title; and 

16 (ii) agreeing that, during any period 

17 of voluntary exclusion, the person may not 

18 participate in Internet gambling or collect 

19 any winnings or recover any losses result20 ing from any gaming activity at any Inter21 net gambling facility of a licensee. 

22 (2) LIMITATION ON LIABILITY.— 

23 (A) IN GENERAL.—Except as provided in 

24 subparagraph (B), the United States, the Sec25 retary, a qualified body, the State or Indian 


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1 tribe in which that qualified body is located, an 

2 enforcement agent, licensee, or any employee or 

3 agent thereof, shall not be liable to any self-ex4 cluded person or to any other party in any judi5 cial or administrative proceeding for any harm, 

6 monetary or otherwise, which may arise as a re7 sult of— 

8 (i) any failure to withhold gaming 

9 privileges from, or to restore gaming privi10 leges to, a self-excluded person; 

11 (ii) otherwise permitting a self-ex12 cluded person to engage in gaming activity 

13 while on the list of self-excluded persons; 

14 or 

15 (iii) disclosure to licensees, significant 

16 vendors, or employees or agents of licens17 ees or significant vendors of the fact that 

18 an individual has been placed on the list of 

19 self-excluded persons and of other informa20 tion that is reasonably necessary to iden21 tify that individual in order to carry out 

22 this subsection, including the address, date 

23 of birth, and taxpayer identification num24 ber of the individual. 


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1 (B) LICENSEES.—A licensee or employee 

2 or agent thereof may be liable to a self- ex3 cluded person in a judicial or administrative 

4 proceeding for a harm described in subpara5 graph (A) to the extent provided under the law 

6 of the State or Indian tribe of the qualified 

7 body that issued the license. 

8 (C) RULE OF CONSTRUCTION.—Nothing in 

9 this paragraph shall be construed to prevent the 

10 Secretary or a qualified body from assessing a 

11 regulatory sanction against a licensee or person 

12 for failing to comply with a provision of this 

13 section or a regulation prescribed thereunder or 

14 for misuse of any list of self-excluded persons 

15 for purposes not authorized under this section. 

16 (3) DISCLOSURE PROVISIONS.— 

17 (A) IN GENERAL.—Notwithstanding any 

18 other provision of Federal, State, or tribal law, 

19 the list of self-excluded persons shall not be 

20 open to public inspection. 

21 (B) AFFILIATE DISCLOSURE.—If necessary 

22 to effectuate the self-exclusion purposes of this 

23 subsection, any licensee may disclose the identi24 ties of persons on the self- excluded list to any 

25 significant vendor, service provider, or affiliated 


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1 company to the extent that the significant ven2 dor, service provider, or affiliated company 

3 maintains such information under confiden4 tiality provisions comparable to those in this 

5 subsection. 

6 (d) GAMING BY PROHIBITED PERSONS.— 

7 (1) PROHIBITION ON BENEFITTING FROM PRO8 HIBITED GAMING ACTIVITY.—A person who is pro9 hibited from gaming with a licensee by law, or by 

10 order of the Secretary, a qualified body, or any court 

11 of competent jurisdiction, including any person on 

12 the self-exclusion list under subsection (c), shall not 

13 collect, in any manner or proceeding, any winnings 

14 or recover any losses arising as a result of prohibited 

15 gaming activity with a licensee. 

16 (2) FORFEITURE.—In addition to any other 

17 penalty provided by law, any money or thing of value 

18 that has been obtained by, or is owed to, any prohib19 ited person by a licensee as a result of bets or wa20 gers made by a prohibited person while the applica21 ble prohibition is effective shall be subject to for22 feiture by order of the Secretary or a qualified body, 

23 following notice to the prohibited person and oppor24 tunity to be heard. 


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1 (3) DEPOSIT OF FORFEITED FUNDS.—Any 

2 funds forfeited pursuant to this subsection shall be 

3 deposited into the Treasury of the United States, or, 

4 in the case of a forfeiture to a qualified body, as 

5 provided by the applicable State or tribal law. 

6 (e) ADMINISTRATIVE PROVISIONS.— 

7 (1) NO DUTY TO IDENTIFY OR EXCLUDE COM8 PULSIVE PLAYERS NOT ON LIST.—No provision of 

9 this section shall be construed as creating a legal 

10 duty in the Secretary, a qualified body, a licensee, 

11 or any employee or agent thereof to identify or to 

12 exclude compulsive players not on the list of self-ex13 cluded persons. 

14 (2) NO CAUSE OF ACTION.—The Secretary, a 

15 qualified body, a licensee, and any employee or agent 

16 thereof, shall not be liable to any person in any pro17 ceeding for losses or other damages of any kind aris18 ing out of that person’s gaming activities based on 

19 a claim that the person was a compulsive, problem, 

20 or pathological player. 

21 (3) NO PRIVATE RIGHT OF ACTION.—Nothing 

22 in this section shall be construed to create a private 

23 right of action. 


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1 SEC. 108. PROHIBITION ON USE OF LICENSES IN CERTAIN 

2 STATES AND INDIAN LANDS. 

3 (a) IN GENERAL.—Internet gambling provided by 

4 Internet gambling facilities licensed under this title shall 

5 be lawful in the United States only with respect to the 

6 acceptance of bets or wagers from individuals located in 

7 States and Indian lands that have opted-in under this sec8 tion. 

9 (b) STATE PARTICIPATION.— 

10 (1) OPT-IN ELECTION.—A State shall be con11 sidered to have opted-in under this section if its 

12 Governor or any other person authorized to make 

13 such notification under the laws of such State has 

14 not notified the Secretary within 120 days of enact15 ment that— 

16 (A) Internet gambling is prohibited in such 

17 State, or 

18 (B) the State declines to participate in 

19 Internet gambling authorized under this Act. 

20 (2) OPT-OUT ELECTION.—A State shall be con21 sidered not to have opted-in under this section if— 

22 (A) a majority of a quorum of each cham23 ber of the legislature of the State has approved 

24 a bill, resolution, or similar measure that ex25 presses that bets or wagers authorized under 


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1 this title should be prohibited in such State; 

2 and 

3 (B) such bill, resolution, or similar meas4 ure is the most recent bill, resolution, or similar 

5 measure approved by a majority of a quorum of 

6 each chamber of the legislature of the State 

7 that expresses whether bets or wagers author8 ized under this title should be prohibited in 

9 such State. 

10 (3) LIMITATION ON STATE PARTICIPATION.— 

11 Notwithstanding any other provision of law, for pur12 poses of determining whether a State has opted-in 

13 under this section, neither the Secretary nor any 

14 provision of State law may require a State to under15 take any additional or different procedures than 

16 those specified in paragraphs (1) and (2). 

17 (4) EFFECTIVE DATE OF CHANGES.—If a State 

18 changes its election to participate or not to partici19 pate under paragraph (1) or (2), such change shall 

20 apply, for purposes of this title, beginning on the 

21 later of— 

22 (A) 60 days after the date of the notifica23 tion to the Secretary by the Governor any other 

24 person authorized under the laws of such State 


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1 that the State has changed its election to par2 ticipate or not; or 

3 (B) the effective date specified in any bill, 

4 resolution, or similar measure determining the 

5 participation of the State in Internet gambling 

6 under the laws of such State. 

7 (c) INDIAN TRIBE NOTICE AND PARTICIPATION.— 

8 (1) OPT-IN ELECTION.—Except as provided in 

9 paragraphs (3) and (4), an Indian tribe shall be con10 sidered to have opted-in under this section if the 

11 principal chief or other chief executive officer or des12 ignated authority of such Indian tribe has not noti13 fied the Secretary within 120 days of enactment 

14 that— 

15 (A) Internet gambling is prohibited by 

16 such Indian tribe, or 

17 (B) the Indian tribe declines to participate 

18 in Internet gambling authorized under this Act. 

19 (2) OPT-OUT ELECTION.—Except as provided in 

20 paragraph (3) and subsection (d), an Indian tribe 

21 shall be considered not to have opted-in under this 

22 section if the principal chief or other chief executive 

23 officer or designated authority of such Indian tribe 

24 submits written notice to the Secretary that bets or 

25 wagers otherwise authorized under this title should 


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1 be prohibited on the Indian lands of such Indian 

2 tribe. 

3 (3) SUBSEQUENT CHANGE OF ELECTION.— 

4 (A) NOTICE OF CHANGE.—Except as pro5 vided in paragraph (4), in a case in which the 

6 principal chief or other chief executive officer or 

7 designated authority of an Indian tribe has sub8 mitted notice under paragraph (1) or (2) to 

9 opt-in or opt-out, respectively, such Indian tribe 

10 may change its election at any time under this 

11 subsection if the principal chief or other chief 

12 executive officer or designated authority of such 

13 Indian tribe submits to the Secretary a written 

14 notice indicating such change. 

15 (B) STATUS.—An Indian tribe that sub16 mits notice under subparagraph (A) shall be 

17 considered— 

18 (i) to have opted-in under this section 

19 if the most recent notice submitted under 

20 such subparagraph indicates that bets or 

21 wagers authorized under this title should 

22 not be prohibited on the Indian lands of 

23 such Indian tribe; and 

24 (ii) not to have opted-in under this 

25 section if such notice indicates that bets or 


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1 wagers authorized under this title should 

2 be prohibited on the Indian lands of such 

3 Indian tribe. 

4 (C) EFFECTIVE DATE.—A change in elec5 tion under this paragraph shall apply, for pur6 poses of this title, beginning on the later of— 

7 (i) 60 days after the date the most re8 cent notice is submitted under subpara9 graph (A); or 

10 (ii) the effective date specified in such 

11 notice. 

12 (4) INDIAN LANDS LOCATED IN STATES THAT

13 HAVE OPTED-OUT.—The decision of a State to opt14 in or opt-out shall have no effect on Internet gam15 bling in the lands of an Indian tribe located within 

16 a State, which shall be governed solely by determina17 tions made by the Indian tribe, as communicated to 

18 the Secretary by the principal chief or other chief ex19 ecutive officer or designated authority of an Indian 

20 tribe. 

21 (d) PROHIBITION ON UNLICENSED BETS OR WA22 GERS.— 

23 (1) IN GENERAL.—Except as expressly author24 ized in this title, no State or Indian tribe may au25 thorize or operate a facility that offers Internet gamVerDate Mar 15 2010 23:13 Jun 10, 2013 Jkt 029200 PO 00000 Frm 00090 Fmt 6652 Sfmt 6201 E:\BILLS\H2282.IH H2282

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1 bling unless the Internet gambling facility is author2 ized and licensed by that State or Indian tribe in 

3 compliance with the law of that State or Indian 

4 tribe, as applicable, and solely provides services to 

5 participants wholly within the boundaries of such 

6 State or the Indian lands of such Indian tribe.. 

7 (2) LIMITATION.—The prohibition set out in 

8 paragraph (1) shall not apply to any bet or wager 

9 authorized pursuant to a State or tribal law enacted 

10 or authorized by a license issued pursuant to this 

11 title. 

12 (e) NOTIFICATION AND ENFORCEMENT OF STATE

13 AND INDIAN TRIBE PROHIBITIONS.— 

14 (1) IN GENERAL.—The Secretary shall notify 

15 qualified bodies, all licensees, and applicants of all 

16 States and Indian tribes that are considered to have 

17 opted-in under this section, promptly upon receipt of 

18 any notice received under subsection (b) or (c) and 

19 not fewer than 30 days before the effective date of 

20 such notice. 

21 (2) VIOLATIONS.—It shall be a violation of this 

22 title for any licensee to accept a bet or wager initi23 ated or otherwise made by a person who the licensee 

24 knows is located at the time of placing such bet or 

25 wager within any State or on the Indian lands of 


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1 any Indian tribe which is not considered to have 

2 opted-in under this section. 

3 (3) STATE ATTORNEY GENERAL ENFORCE4 MENT.—In any case in which the attorney general of 

5 a State or any State or local law enforcement agen6 cy, authorized by the attorney general of the State 

7 or by State statute to prosecute violations of con8 sumer protection law, has reason to believe that an 

9 interest of the residents of that State has been or 

10 is threatened or adversely affected by a violation by 

11 a licensee under paragraph (2), the State, or the 

12 State or local law enforcement agency, may bring a 

13 civil action on behalf of the residents of that State 

14 or jurisdiction in a district court of the United 

15 States located therein— 

16 (A) to enjoin that practice; or 

17 (B) to enforce compliance with this section. 

18 (4) INDIAN TRIBE ENFORCEMENT.—In any case 

19 in which the chief law enforcement officer of an In20 dian tribe or tribal law enforcement agency, author21 ized by the chief law enforcement officer of the In22 dian tribe or by tribal law to prosecute violations of 

23 consumer protection law, has reason to believe that 

24 an interest of the residents of the Indian lands with25 in the tribe’s jurisdiction has been or is threatened 


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1 or adversely affected by a violation by a licensee 

2 under paragraph (2), the Indian tribe, or the tribal 

3 law enforcement agency, may bring a civil action on 

4 behalf of the residents of those Indian lands in a 

5 district court of the United States located nearest to 

6 those Indian lands— 

7 (A) to enjoin that practice; or 

8 (B) otherwise to enforce compliance with 

9 this section. 

10 (f) NO IMPACT ON INDIAN GAMING REGULATORY

11 ACT.— 

12 (1) IN GENERAL.—No provision of this title or 

13 decision or action taken by an Indian tribe or State 

14 pursuant thereto shall have any effect on non-Inter15 net gaming activities within the scope of section 11 

16 of the Indian Gaming Regulatory Act (25 U.S.C. 

17 2710) or any successor provisions or on any Tribal18 State compacts or authorities pursuant thereto. 

19 (2) TRIBAL STATUS OR CATEGORY NOT AF20 FECTED.—Tribal operation of Internet gambling fa21 cilities under this title shall not be considered class 

22 II or class III gaming under such section, and an 

23 Indian tribe’s status, category, or class under such 

24 section shall not impact its status or ability to offer 

25 bets or wagers pursuant to this title. 


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1 (3) NEW NEGOTIATIONS NOT REQUIRED.— 

2 (A) INDIAN TRIBES.—The fact that an In3 dian tribe is operating under a license issued 

4 under this title or that a tribal regulatory body 

5 is acting as a qualified body under this title 

6 shall not require an Indian tribe to negotiate a 

7 new agreement, limitation, or other provision of 

8 tribal-State compact, agreement, or other un9 derstanding with respect to gaming or revenue10 sharing, with regard to any bet or wager occur11 ring pursuant to a license issued under this 

12 title. 

13 (B) STATES.—The fact that a State has 

14 opted in under this section or that a State reg15 ulatory body is acting as a qualified body under 

16 this title shall not require the State to negotiate 

17 a new agreement, limitation, or other provision 

18 of tribal-State compact, agreement, or other un19 derstanding with respect to gaming or revenue20 sharing, with regard to any bet or wager occur21 ring pursuant to a license issued under this 

22 title. 

23 (g) NO IMPACT ON ACTIVITIES CARRIED OUT SOLE24 LY WITHIN A STATE OR WITHIN TRIBAL LANDS.—No 

25 provision of this title shall have any effect on Internet 


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1 gaming activities that are authorized and licensed by that 

2 State or Indian tribe (as the case may be) in compliance 

3 with the law of that State or Indian tribe as of the date 

4 before the date of the enactment of this Act, as applicable, 

5 and that solely provide services to participants wholly 

6 within the boundaries of that State or the Indian lands 

7 of that Indian tribe. 

8 SEC. 109. PROHIBITION ON BETS OR WAGERS ON SPORTING 

9 EVENTS. 

10 (a) IN GENERAL.—No provision of this title shall be 

11 construed to authorize any licensee to accept a bet or 

12 wager on any sporting event in violation of any applicable 

13 provision of Federal or State law. 

14 (b) CONSTRUCTION.—Nothing in this title shall be 

15 construed to repeal or amend any provision of Federal or 

16 State law prohibiting, restricting, or otherwise addressing 

17 bets or wagers on sporting events, including provisions of 

18 Federal and State law that permit participation in any 

19 fantasy or simulation sports games. 

20 SEC. 110. PUBLIC INTERNET GAMBLING AND INTERNET 

21 GAMBLING PARLORS PROHIBITED. 

22 (a) IN GENERAL.—It shall be considered a violation 

23 of this title to operate a place of public accommodation, 

24 club (including a club or association limited to dues-paying 

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1 lishment in which computer terminals or similar access de2 vices are made available to be used principally for the pur3 pose of accessing Internet gambling facilities. 

4 (b) CRIMINAL PENALTIES.—Any person who violates 

5 subsection (a) shall be fined under title 18, United States 

6 Code, imprisoned for not more than 5 years, or both. 

7 (c) CONSTRUCTION.—Nothing in this title shall be 

8 construed to authorize or otherwise to permit the oper9 ation of places of public accommodation, clubs (including 

10 clubs or associations limited to dues-paying members or 

11 similar restricted groups) and similar establishments that 

12 permit access to Internet gambling facilities. 

13 (d) RELATION TO STATE, LOCAL, AND TRIBAL

14 LAW.—Places of public accommodation, clubs, or similar 

15 establishments described in subsection (c) shall be subject 

16 to all otherwise applicable State, local, and tribal police, 

17 criminal, zoning, and other regulatory powers which are 

18 not intended to be limited in any way by this title. 

19 SEC. 111. SAFE HARBOR. 

20 It shall be an affirmative defense to any prosecution 

21 or enforcement action under any provision of Federal, 

22 State, or tribal law that the activity forming the basis of 

23 such prosecution or enforcement action is authorized 

24 under and has been carried out lawfully in accordance with 

25 and under the terms of this title. 


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1 SEC. 112. CHEATING AND OTHER FRAUD. 

2 (a) CHEATING AND CHEATING DEVICES PROHIB3 ITED.— 

4 (1) CHEATING PROHIBITED.—No person initi5 ating, receiving, or otherwise making a bet or wager 

6 with a licensee, or sending, receiving, or inviting in7 formation assisting with a bet or wager with a li8 censee shall knowingly violate, attempt to violate, or 

9 assist another in violating the rules of play estab10 lished by the licensee for the purpose of obtaining 

11 prohibited or unfair advantage in any game author12 ized under this title. 

13 (2) CHEATING DEVICES.—Except as provided in 

14 paragraph (3), no person initiating, receiving, or 

15 otherwise making a bet or wager with a licensee, or 

16 sending, receiving, or inviting information assisting 

17 with a bet or wager with a licensee shall knowingly 

18 use, possess, or assist another in the use of, an elec19 tronic, electrical, or mechanical device or software or 

20 other program or tool which is designed, con21 structed, or programmed specifically for use in ob22 taining an advantage in any game authorized under 

23 this title, where such advantage is prohibited or oth24 erwise violates the rules of play established by the li25 censee. 


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1 (3) PERMISSIBLE USES.—It shall not be a vio2 lation of this subsection for a licensee, its agents, a 

3 qualified body, or its agents to use or possess a de4 vice described in the preceding sentence if— 

5 (A) such use or possession is solely for 

6 purposes of testing an Internet gambling facil7 ity; 

8 (B) such device is not used in live play in9 volving actual bets or wagers; and 

10 (C) such device is registered with the 

11 qualified body that issued the applicable license. 

12 (4) DISCLOSURE TO PUBLIC NOT REQUIRED.— 

13 Notwithstanding any other provision of law, a reg14 istration under paragraph (3)(C) is not required to 

15 be made available to the public. 

16 (b) ADDITIONAL OFFENSE.— 

17 (1) IN GENERAL.—Except as provided in para18 graph (3), no person initiating, receiving, or other19 wise making a bet or wager with a licensee, or send20 ing, receiving, or inviting information assisting with 

21 a bet or wager with a licensee, shall knowingly use, 

22 possess, or assist another in the use of any cheating 

23 device with intent to cheat or defraud any licensee 

24 or other persons placing bets or wagers with such li25 censee. 


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1 (2) BOTS.—A software program that makes 

2 bets or wagers according to an algorithm shall con3 stitute a type of cheating device under this sub4 section. 

5 (3) PERMISSIBLE USES.—It shall not be a vio6 lation of this subsection for a licensee, its agents, a 

7 qualified body, or its agent to use or possess a device 

8 described in paragraph (1) or (2) if— 

9 (A) such use or possession is solely for 

10 purposes of testing an Internet gambling facil11 ity; 

12 (B) such device is not used in live play in13 volving actual bets or wagers; and 

14 (C) such device is registered with the 

15 qualified body that issued the applicable license. 

16 (4) DISCLOSURE TO PUBLIC NOT REQUIRED.— 

17 Notwithstanding any other provision of law, a reg18 istration under paragraph (3)(C) is not required to 

19 be made available to the public. 

20 (c) CRIMINAL PENALTY.—Whoever violates sub21 section (a) or (b) shall be fined under title 18, United 

22 States Code, imprisoned for not more than 3 years, or 

23 both. 

24 (d) PERMANENT INJUNCTION.—Upon conviction of a 

25 person for violation of this section, the court may enter 


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1 a permanent injunction enjoining such person from initi2 ating, receiving, or otherwise making bets or wagers or 

3 sending, receiving, or inviting information assisting in the 

4 placing of bets or wagers. 

5 (e) REPORT ON THREATS TO OPERATION OF INTER6 NET GAMBLING FACILITIES.— 

7 (1) IN GENERAL.—Not later than 1 year after 

8 the date of first issuance specified in section 114(a), 

9 the Director of the National Institute of Standards 

10 and Technology shall submit to Congress a report on 

11 threats to the integrity of Internet gambling facili12 ties operated by licensees. 

13 (2) ELEMENTS.—The report required by para14 graph (1) shall include the following: 

15 (A) Identification of threats to the integ16 rity of Internet gambling facilities operated by 

17 licensees. 

18 (B) Identification of technologies that 

19 could be used to hack computer networks, facili20 tate cheating, or otherwise place consumers at 

21 risk of fraud or monetary loss. 

22 (C) An evaluation of steps taken by Inter23 net gambling facilities licensed under this title 

24 to respond to the threats identified pursuant to 

25 subparagraph (A). 


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1 (D) Recommendations for such measures 

2 as the Director considers appropriate to deal 

3 with the threats identified pursuant subpara4 graph (A). 

5 SEC. 113. CONSTRUCTION AND RELATION TO OTHER LAW. 

6 (a) NO IMPACT ON EXISTING LAWFUL GAMES.— 

7 (1) IN GENERAL.—If bets or wagers on certain 

8 games of skill that are not Internet gambling are 

9 not regarded as gambling or otherwise prohibited 

10 under all provisions of Federal, applicable State, or 

11 tribal law— 

12 (A) nothing in this title shall be construed 

13 to require licensing under this title with respect 

14 to such games; and 

15 (B) fees paid to participate in such games 

16 shall not be regarded as bets or wagers for pur17 poses of this title. 

18 (2) RELIANCE.—Nothing in this title may be 

19 relied on as support for the legality or permissibility 

20 of any games without compliance with the licensing 

21 and other requirements of this title. 

22 (b) PREEMPTION OF STATE AND TRIBAL LAWS.— 

23 (1) IN GENERAL.—Except as otherwise ex24 pressly provided in this title, the provisions of this 

25 title shall supersede any provisions of the law of any 


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1 State or Indian tribe expressly relating to the per2 mitting, prohibiting, licensing, or regulating of Inter3 net gambling facilities and the law of any State or 

4 Indian tribe expressly relating to the authorization, 

5 prohibiting, licensing, expansion, or regulation of 

6 gambling, except to the extent such State or tribal 

7 laws are not inconsistent with this title. 

8 (2) SAVINGS PROVISION.—Nothing in this title 

9 may be construed to limit the applicability or en10 forcement of any State or tribal consumer protection 

11 law of general applicability or preempt the applica12 bility of State or tribal trespass, contract, or tort 

13 law. 

14 (c) RELATION TO GAMBLING DEVICES TRANSPOR15 TATION ACT.—Equipment used by a licensee or significant 

16 vendor in the furtherance of licensed activities pursuant 

17 to this title (but not to the extent it is used for other pur18 poses) shall not be considered a gambling device within 

19 the meaning of section 1 of the Act of January 2, 1951, 

20 prohibiting the transportation of gambling devices in 

21 interstate and foreign commerce (15 U.S.C. 1171). 

22 (d) EXEMPTIONS FROM SUBCHAPTER IV OF CHAP23 TER 53 OF TITLE 31, UNITED STATES CODE.—Sub24 chapter IV of chapter 53 of title 31, United States Code, 

25 is amended by adding at the end the following: 


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1 ‘‘§ 5368. Inapplicability to certain gaming and wagers 

2 ‘‘The provisions of this subchapter— 

3 ‘‘(1) restricting acceptance of bets or wagers 

4 made by individuals located in the United States or 

5 requiring the blocking or other prevention of re6 stricted transactions shall not apply with respect to 

7 the placing, transmitting, or receiving of interstate 

8 off-track wagers, as such term is defined in section 

9 3 of the Interstate horseracing Act of 1978 (15 

10 U.S.C. 3002), that are permissible under such Act 

11 (15 U.S.C. 3001 et seq.), whether such off-track 

12 wager is made by telephone, Internet, satellite, or 

13 other wire or wireless communication facility, serv14 ice, or medium; and 

15 ‘‘(2) shall not apply to any bet or wager— 

16 ‘‘(A) occurring pursuant to a license issued 

17 under title I of the Internet Gambling Regula18 tion, Enforcement, and Consumer Protection 

19 Act of 2013, subject to section 109 of that Act; 

20 ‘‘(B) that is permissible under the Inter21 state horseracing Act of 1978 (15 U.S.C. 3001 

22 et seq.); or 

23 ‘‘(C) is the purchase of a chance or oppor24 tunity to win a lottery or other prize— 

25 ‘‘(i) which opportunity to win is pre26 dominantly subject to chance; and 


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1 ‘‘(ii) which is authorized by a State or 

2 Indian tribe wholly within its borders.’’. 

3 (e) INAPPLICABILITY OF CERTAIN PROVISIONS TO

4 INTERSTATE OFF-TRACK WAGERS.—The provisions of 

5 this title requiring a license shall not apply with respect 

6 to the placing, transmitting, or receiving of interstate off7 track wagers, as such term is defined in section 3 of the 

8 Interstate horseracing Act of 1978 (15 U.S.C. 3002), that 

9 are permissible under such Act (15 U.S.C. 3001 et seq.), 

10 whether such off-track wager is made by telephone, Inter11 net, satellite, or other wire or wireless communication fa12 cility, service, or medium. 

13 (f) WIRE ACT AMENDMENTS.— 

14 (1) DEFINITIONS.—Section 1081 of title 18, 

15 United States Code, is amended— 

16 (A) by designating the five undesignated 

17 paragraphs as paragraphs (1) through (5), re18 spectively; 

19 (B) in paragraph (2), as so designated by 

20 subparagraph (A), by striking ‘‘value.’’ and in21 serting ‘‘value, including any Internet gambling 

22 facility.’’; 

23 (C) by amending paragraph (5), as so des24 ignated by subparagraph (A), to read as fol25 lows: 


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1 ‘‘(5) The term ‘communication facility’ includes 

2 any instrumentality, personnel, and services (includ3 ing, the receipt, forwarding, or delivery of commu4 nications) used in the transmission of a writing, 

5 sign, picture, or sound of any kind by aid of wire, 

6 cable, radio, or an electromagnetic, photoelectronic, 

7 or photooptical system, or other like connection 

8 (whether fixed or mobile) between the points of ori9 gin and reception of such transmission.’’; and 

10 (D) by adding at the end the following: 

11 ‘‘(6) The term ‘bet or wager’ has the meaning 

12 given the term in section 102 of the Internet Gam13 bling Regulation, Enforcement, and Consumer Pro14 tection Act of 2013. 

15 ‘‘(7) The term ‘Internet’ means the inter16 national computer network of interoperable packet 

17 switched data networks. 

18 ‘‘(8) The term ‘Internet gambling facility’ has 

19 the same meaning given the term in section 102 of 

20 the Internet Gambling Regulation, Enforcement, 

21 and Consumer Protection Act of 2013. 

22 ‘‘(9) The terms ‘financial transaction provider’ 

23 and ‘insured depository institution’ have the mean24 ings given those terms in section 5362 of title 31, 

25 United States Code. 


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1 ‘‘(10) The term ‘gambling business’ means a 

2 business of betting or wagering. 

3 ‘‘(11) The terms ‘own or control’ and ‘owned or 

4 controlled’ include circumstances within the meaning 

5 of section 2(a)(2) of the Bank Holding Company Act 

6 of 1956 (12 U.S.C. 1841(a)(2)).’’. 

7 (2) MODIFICATION OF EXISTING PROHIBI8 TION.—Section 1084 of title 18, United States Code, 

9 is amended to read as follows: 

10 ‘‘§ 1084. Transmission of wagering information; pen11 alties 

12 ‘‘(a) OFFENSE.—Except as otherwise provided in this 

13 section or in the Internet Gambling Regulation, Enforce14 ment, and Consumer Protection Act of 2013, it shall be 

15 unlawful for a person that is engaged in a gambling busi16 ness to knowingly use a communication facility for the 

17 transmission in interstate or foreign commerce, within the 

18 special maritime and territorial jurisdiction of the United 

19 States, or to or from any place outside the jurisdiction 

20 of any country with respect to any transmission to or from 

21 the United States, of— 

22 ‘‘(1) bets or wagers; 

23 ‘‘(2) information assisting in the placing of bets 

24 or wagers; or 


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1 ‘‘(3) a communication, which entitles the recipi2 ent to receive money or credit as a result of bets or 

3 wagers, or for information assisting in the placing of 

4 bets or wagers. 

5 ‘‘(b) PENALTY.—Any person who violates subsection 

6 (a) shall be fined under this title, imprisoned for not more 

7 than 5 years, or both. 

8 ‘‘(c) TRANSMISSION IN INTERSTATE OR FOREIGN

9 COMMERCE.—Except as otherwise provided in this sec10 tion, the transmission of bets or wagers, information as11 sisting in the placing of bets or wagers, or a communica12 tion which entitles the recipient to receive money or credit 

13 as a result of bets or wagers, or for information assisting 

14 in the placing of bets or wagers shall be considered a 

15 transmission in interstate or foreign commerce subject to 

16 this section if such transmission involved the use, in some 

17 part, of the Internet. 

18 ‘‘(d) RULES OF CONSTRUCTION.—Nothing in this 

19 section shall be construed to— 

20 ‘‘(1) prohibit— 

21 ‘‘(A) the transmission of information as22 sisting in the placing of bets or wagers for use 

23 in news reporting if such transmission does not 

24 solicit or provide information for the purpose of 


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1 facilitating or enabling the placing or receipt of 

2 bets or wagers; 

3 ‘‘(B) the interstate transmission of infor4 mation relating to a State-specific lottery be5 tween a State or foreign country where such 

6 betting or wagering is permitted under Federal, 

7 State, tribal, or local law and an out-of-State 

8 data center for the purposes of assisting in the 

9 operation of such State-specific lottery; or 

10 ‘‘(C) a qualifying intrastate lottery trans11 action (as defined in section 102 of the Internet 

12 Gambling Regulation, Enforcement, and Con13 sumer Protection Act of 2013; 

14 ‘‘(D) any authorized activity carried out in 

15 connection with a license issued under the 

16 Internet Gambling Regulation, Enforcement, 

17 and Consumer Protection Act of 2013. 

18 ‘‘(2) create immunity from criminal prosecution 

19 under any laws of a State or tribe; or 

20 ‘‘(3) authorize activity that is prohibited under 

21 chapter 178 of title 28. 

22 ‘‘(e) APPLICABILITY.—This section shall not apply to 

23 any activity that is permissible under the Interstate horse24 racing Act of 1978 (15 U.S.C. 3001 et seq.), or any activ25 ity that is permissible under title I of the Internet GamVerDate Mar 15 2010 23:13 Jun 10, 2013 Jkt 029200 PO 00000 Frm 00108 Fmt 6652 Sfmt 6201 E:\BILLS\H2282.IH H2282

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1 bling Regulation, Enforcement, and Consumer Protection 

2 Act of 2013. 

3 ‘‘(f) DUTY OF COMMON CARRIER.— 

4 ‘‘(1) IN GENERAL.—If a common carrier (as de5 fined in section 3 of the Communications Act of 

6 1934 (47 U.S.C. 153)), subject to the jurisdiction of 

7 the Federal Communications Commission, is notified 

8 in writing by a Federal, State, tribal, or local law 

9 enforcement agency, acting within the jurisdiction of 

10 the law enforcement agency, that a communication 

11 facility furnished by the common carrier is being 

12 used or will be used by a subscriber of the common 

13 carrier for the purpose of transmitting or receiving 

14 gambling information in interstate or foreign com15 merce, within the special maritime and territorial ju16 risdiction of the United States, or to or from any 

17 place outside the jurisdiction of any country with re18 spect to any transmission to or from the United 

19 States in violation of Federal, State, tribal, or local 

20 law, the common carrier shall discontinue or refuse, 

21 the leasing, furnishing, or maintaining of such facil22 ity, after reasonable notice to the subscriber. 

23 ‘‘(2) LIMITATION ON LIABILITY.—No damages, 

24 penalty, or forfeiture, civil or criminal, shall be 

25 found against a common carrier for any act done in 


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1 compliance with any notice received from a law en2 forcement agency. 

3 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in 

4 this subsection shall be construed to prejudice the 

5 right of any person affected to secure an appropriate 

6 determination, as otherwise provided by law, in a 

7 Federal court or in a State, tribal, or local tribunal 

8 or agency, that such facility should not be discon9 tinued or removed, or should be restored. 

10 ‘‘(g) EXCLUSIONS.—This section, subchapter IV of 

11 chapter 53 of title 31, and any other provision of Federal 

12 law that establishes criminal penalties for any activity in13 volved in placing, receiving or otherwise transmitting a bet 

14 or wager shall not apply to any bet or wager that— 

15 ‘‘(1) is permissible under the Interstate horse16 racing Act of 1978 (15 U.S.C. 3001 et seq.); 

17 ‘‘(2) is an international off-track wager on 

18 horseracing, or the combination of international 

19 horseracing pari-mutuel wagering pools, that is law20 ful in the State or foreign jurisdiction involved; 

21 ‘‘(3) is permissible under the Prohibition of 

22 Internet Gambling, Regulation, and Consumer Pro23 tection Act of 2013; or 


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1 ‘‘(4) is a qualifying intrastate lottery bet or 

2 wager as defined in section 102 of the Act referred 

3 to in paragraph (3).’’. 

4 (3) AUTHORIZATION OF CIVIL ENFORCE5 MENT.— 

6 (A) IN GENERAL.—Chapter 50 of title 18, 

7 United States Code, is amended by adding at 

8 the end the following: 

9 ‘‘§ 1085. Civil remedies 

10 ‘‘(a) JURISDICTION.—The district courts of the 

11 United States (in addition to any other remedies under 

12 current law) shall have original and exclusive jurisdiction 

13 to prevent and restrain violations of section 1084 by 

14 issuing appropriate orders in accordance with this section, 

15 regardless of whether a prosecution has been initiated 

16 under section 1084. 

17 ‘‘(b) PROCEEDINGS.— 

18 ‘‘(1) DEFINITION.—In this subsection, the term 

19 ‘account’ means— 

20 ‘‘(A) the unpaid balance of money or its 

21 equivalent received or held by an insured depos22 itory institution in the usual course of business 

23 and for which it has given or is obligated to 

24 give credit, either conditionally or uncondition25 ally, to an account, including interest credited, 


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1 or which is evidenced by an instrument on 

2 which the depository institution is primarily lia3 ble; and 

4 ‘‘(B) money received or held by an insured 

5 depository institution, or the credit given for 

6 money or its equivalent received or held by the 

7 insured depository institution in the usual 

8 course of business for a special or specific pur9 pose, regardless of the legal relationships estab10 lished thereby, including escrow funds, funds 

11 held as security for securities loaned by the de12 pository institution, funds deposited as advance 

13 payment on subscriptions to United States Gov14 ernment securities, and funds held to meet its 

15 acceptances. 

16 ‘‘(2) PROCEEDINGS.—The United States may 

17 institute proceedings under this section— 

18 ‘‘(A) to obtain injunctive or declarative re19 lief, including a temporary restraining order 

20 and a preliminary injunction, against any per21 son (other than a financial transaction provider, 

22 except as provided in paragraph (3)) to prevent 

23 or restrain a violation or a threatened violation 

24 of section 1084; 


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1 ‘‘(B) in the case of an insured depository 

2 institution that is a financial transaction pro3 vider, to— 

4 ‘‘(i) restrain an account maintained at 

5 such insured depository institution if such 

6 account is— 

7 ‘‘(I) owned or controlled by a 

8 gambling business; and 

9 ‘‘(II) includes proceeds of, or is 

10 used to facilitate a violation of section 

11 1084; or 

12 ‘‘(ii) seize funds in an account de13 scribed in clause (i) if such funds— 

14 ‘‘(I) are owned or controlled by a 

15 gambling business; and 

16 ‘‘(II) constitute the proceeds of, 

17 were derived from, or facilitated, a 

18 violation of section 1084. 

19 ‘‘(3) FINANCIAL TRANSACTION PROVIDERS.— 

20 The limitation in paragraph (2)(A) shall not apply 

21 if the financial transaction provider is a gambling 

22 business, in which case, such financial transaction 

23 provider shall be subject to the enforcement provi24 sions under paragraph (2). 

25 ‘‘(4) INJUNCTIVE PROCEEDINGS.— 


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1 ‘‘(A) IN GENERAL.—The attorney general 

2 (or other appropriate State official) of a State 

3 in which a communication in violation of section 

4 1084 allegedly has been or will be initiated or 

5 received may institute proceedings under this 

6 section to obtain injunctive or declarative relief 

7 to prevent or restrain the violation or threat8 ened violation. 

9 ‘‘(B) RELIEF.—Upon application of the at10 torney general (or other appropriate State offi11 cial) of an affected State under subparagraph 

12 (A), the district court may enter a temporary 

13 restraining order, a preliminary injunction, an 

14 injunction, or declaratory relief against any per15 son (other than a financial transaction pro16 vider) to prevent or restrain a violation or 

17 threatened violation of section 1084, in accord18 ance with rule 65 of the Federal Rules of Civil 

19 Procedure. 

20 ‘‘(5) ENFORCEMENT AUTHORITY.—Notwith21 standing paragraphs (2) and (4), for a communica22 tion in violation of section 1084 that allegedly has 

23 been or will be initiated or received on Indian lands 

24 (as that term is defined in section 4 of the Indian 

25 Gaming Regulatory Act (25 U.S.C. 2703))— 


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1 ‘‘(A) the United States shall have the en2 forcement authority provided under paragraph 

3 (2); 

4 ‘‘(B) the enforcement authorities specified 

5 in an applicable Tribal-State compact nego6 tiated under section 11 of the Indian Gaming 

7 Regulatory Act (25 U.S.C. 2710) shall be car8 ried out in accordance with that compact; and 

9 ‘‘(C) if there is no applicable Tribal-State 

10 compact, an appropriate tribal official may in11 stitute proceedings in the same manner as an 

12 attorney general of a State. 

13 ‘‘(6) RULE OF CONSTRUCTION.—Nothing in 

14 this subsection shall be construed to alter, super15 sede, or otherwise affect the application of the In16 dian Gaming Regulatory Act (25 U.S.C. 2701 et 

17 seq.). 

18 ‘‘(7) LIMITATION ON RELIEF.—Notwith19 standing paragraph (4), no relief shall be granted 

20 under this section against a financial transaction 

21 provider except as provided in paragraph (3). 

22 ‘‘(c) LIMITATION ON LIABILITY.—No damages, pen23 alty, or forfeiture, civil or criminal, shall be found against 

24 any person or entity for any act done in compliance with 

25 any notice received from a law enforcement agency.’’. 


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1 (B) CLERICAL AMENDMENT.—The table of 

2 sections for chapter 50 of title 18, United 

3 States Code, is amended by inserting after the 

4 item relating to section 1084 the following: 

‘‘1085. Civil remedies.’’. 

5 (g) SYSTEMS USED IN SUPPORT OF LAWFUL GAM6 BLING.— 

7 (1) IN GENERAL.—This title, subchapter IV of 

8 chapter 53 of title 31, United States Code, section 

9 1084 of title 18, United States Code, and any other 

10 provision of Federal law that establishes criminal 

11 penalties for any activity involved in placing, receiv12 ing, or otherwise transmitting a bet or wager, infor13 mation assisting in the placing of bets or wagers, or 

14 a communication which entitles the recipient to re15 ceive money or credit as a result of bets or wagers, 

16 shall not apply to gaming devices, information, or 

17 communications, to the extent used to support bets 

18 or wagers offered by a casino gaming facility that— 

19 (A) occur between participants who are lo20 cated on the premises of the same casino gam21 ing facility; and 

22 (B) are lawful in the State or on the In23 dian lands in or on which the casino gaming fa24 cility is located. 

25 (2) DEFINITIONS.—In this subsection: 


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1 (A) CASINO GAMING FACILITY.—The term 

2 ‘‘casino gaming facility’’ means any facility that 

3 provides casino gaming on a riverboat, at a race 

4 track, or in another facility, regardless of the 

5 number of gaming devices in 1 physical loca6 tion, pursuant to a duly authorized license 

7 issued by a gaming regulatory authority of a 

8 State of Indian tribe. 

9 (B) PARTICIPANTS.—The term ‘‘partici10 pants’’ includes all persons who are party to the 

11 bet or wager, including, in the case of banked 

12 games, the casino gaming facility or operator 

13 itself. 

14 (h) PRESERVATION OF EXISTING LAWFUL GAM15 BLING.— 

16 (1) IN GENERAL.—This title, subchapter IV of 

17 chapter 53 of title 31, United States Code, section 

18 1084 of title 18, United States Code, and any other 

19 provision of Federal law that establishes criminal 

20 penalties for any activity involved in placing, receiv21 ing, or otherwise transmitting a bet or wager, infor22 mation assisting in the placing of bets or wagers, or 

23 a communication which entitles the recipient to re24 ceive money or credit as a result of bets or wagers, 

25 shall not apply to the offering of a bet or wager or 


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1 gambling game authorized, licensed, and regulated 

2 by a State or Indian tribe on the day before the date 

3 of enactment of this Act and otherwise lawful activi4 ties in support of the offering of that bet or wager 

5 or gambling game, or that is permissible under the 

6 Interstate Horseracing Act of 1978 (15 U.S.C. 3001 

7 et seq.); or that is the purchase of a chance or op8 portunity to win a lottery or other prize— 

9 (A) which opportunity to win is predomi10 nantly subject to chance; and 

11 (B) which is authorized by a State or In12 dian tribe wholly within its borders; 

13 (2) APPLICABILITY.—Paragraph (1) shall not 

14 apply to— 

15 (A) any expansion of or other change to 

16 any such bet or wager or gambling game that 

17 otherwise would violate any applicable provision 

18 of Federal law if a change in State or tribal law 

19 is necessary in order to permit such expansion 

20 or change; 

21 (B) the offering of a bet or wager or gam22 bling game of the same type and character in 

23 a State or Indian tribe in which that bet or 

24 wager or gambling game is not permitted on 

25 the date of enactment of this Act; and 


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1 (C) qualifying intrastate lottery trans2 actions. 

3 (3) CASINO GAMING FACILITY DEFINED.—In 

4 this subsection, the term ‘‘casino gaming facility’’ 

5 means any facility that provides casino gaming on a 

6 riverboat, at a race track, or in another facility, re7 gardless of the number of gaming devices in 1 phys8 ical location, pursuant to a duly authorized license 

9 issued by a gaming regulatory authority of a State 

10 of Indian tribe. 

11 SEC. 114. ORDERLY TRANSITION. 

12 (a) ISSUANCE OF INITIAL LICENSES.— 

13 (1) IN GENERAL.—Each qualified body des14 ignated under section 105 before the date of first 

15 issuance specified in this subsection, shall, to the ex16 tent practicable while meeting the requirements and 

17 standards of this title, issue multiple licenses under 

18 this title before such date in order to ensure a ro19 bust and competitive market for consumers and to 

20 prevent the first licensees from gaining an unfair 

21 competitive advantage. 

22 (2) EFFECTIVE DATE OF INITIAL LICENSES.— 

23 No license issued under this title shall authorize a 

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1 fore the date of first issuance specified in this sub2 section. 

3 (3) DATE OF FIRST ISSUANCE.—The date of 

4 first issuance specified in this subsection is the date 

5 that is 270 days after the date of the enactment of 

6 this Act. 

7 (b) ORDERLY CESSATION OF UNLICENSED ACTIVITY

8 AND SAFEKEEPING OF CUSTOMER FUNDS.— 

9 (1) IN GENERAL.—Each person shall, with re10 spect to an Internet gambling facility not licensed 

11 under this Act and to the extent applicable to the 

12 person— 

13 (A) not later than 30 days after the date 

14 of the enactment of this Act, cease offering, ac15 cepting, and providing services with respect to 

16 bets or wagers from individuals the person 

17 knows, or reasonably should know, are located 

18 in the United States; 

19 (B) provide to each individual located in 

20 the United States who has outstanding sums on 

21 deposit with such person notice to such indi22 vidual that operations will be ceasing pursuant 

23 to paragraph (1) with instructions indicating 

24 the procedures the individual should use to re25 quest the return of such sums— 


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1 (i) not later than 7 days after the 

2 date of the enactment of this Act and not 

3 less frequently than quarterly thereafter 

4 until such sums have been returned, by e5 mail; 

6 (ii) not later than 30 days after the 

7 date of the enactment of this Act and not 

8 less frequently than semi-annually there9 after until such sums have been returned, 

10 by mail; and 

11 (iii) beginning not later than 14 days 

12 after the date of the enactment of this Act 

13 and ending on the date that such sums 

14 have been returned, by promptly displaying 

15 notice each time such individual signs into 

16 the Internet gambling facility; 

17 (C) promptly return all outstanding sums 

18 to individuals located in the United States who 

19 have sums on deposit with such person, upon 

20 the request of such individuals; 

21 (D) during the 2-year period beginning on 

22 the date of the enactment of this Act, retain all 

23 outstanding sums on deposit with such person 

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1 resolved because of a lack of a request by such 

2 individual under such subparagraph or other 

3 reason; and 

4 (E) on the date that is 2 years and 1 day 

5 after the date of the enactment of this Act, 

6 place any remaining sums on deposit with such 

7 person that are owed to individuals under sub8 paragraph (C) the disposition of which remains 

9 unresolved in escrow with a financial institution 

10 in the United States for safekeeping and or11 derly disposition as the Secretary may direct. 

12 (2) APPLICABILITY REGARDLESS OF LICENSE

13 APPLICATION STATUS.—Paragraph (1) applies to 

14 any person who has operated an Internet gambling 

15 facility not licensed under this Act regardless of 

16 whether the person applies for a license or seeks a 

17 certificate of suitability with respect to an applica18 tion for a license under this title. 

19 (3) CRIMINAL PENALTY.—Whoever violates 

20 paragraph (1) shall be fined under title 18, United 

21 States Code, in an amount not to exceed 3 times the 

22 amount of the funds subject to this subsection or 

23 imprisoned under such title for not more than 2 

24 years, or both. 


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1 (4) REGULATIONS.—The Office of Internet 

2 Gambling Oversight shall prescribe regulations to 

3 carry out this subsection. 

4 (5) JUDICIAL REVIEW.—An applicant may seek 

5 judicial review of a determination under paragraph 

6 (1) or (2) only by the United States district court 

7 for the District of Columbia in accordance with 

8 chapter 7 of title 5, United States Code. 

9 (c) NO EFFECT ON EXISTING LAW.—Nothing in this 

10 section shall be construed to repeal, to amend, or to affect 

11 the interpretation of any provision of Federal or State law 

12 that was in effect before the date of the enactment of this 

13 Act that— 

14 (1) authorizes the provision of services relating 

15 to bets or wagers by facilities authorized and li16 censed by that State or Indian tribe in compliance 

17 with the law of that State or Indian tribe, as appli18 cable, and solely provides services to participants 

19 wholly within the boundaries of such State or the In20 dian lands of such Indian tribe; 

21 (2) prohibits, restricts, or otherwise addresses 

22 bets or wagers; or 

23 (3) prohibits fraud, unfair or deceptive acts or 

24 practices, or other criminal activity. 


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1 SEC. 115. ANNUAL REPORTS. 

2 (a) LICENSING AND REGULATION OF INTERNET

3 GAMBLING FACILITIES.— 

4 (1) IN GENERAL.—Not later than 1 year after 

5 the date of first issuance specified in section 114(a) 

6 and not less frequently than annually thereafter, the 

7 Secretary shall submit to Congress a report on the 

8 licensing and regulation of Internet gambling facili9 ties under this title. 

10 (2) ELEMENTS.—Each report submitted under 

11 paragraph (1) shall include the following: 

12 (A) A description of all notices received by 

13 the Secretary under subsections (b) and (c) of 

14 section 108. 

15 (B) The amount of assessments collected 

16 under section 106(e) and, in cooperation with 

17 the Secretary of the Treasury, an estimate of 

18 the amount of income tax revenue that is at19 tributable to the operation of Internet gambling 

20 facilities during the period covered by the re21 port. 

22 (C) A list of qualified bodies, the number 

23 of licensees reviewed by the qualified bodies 

24 under this title, and the outcomes of such re25 views. 


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1 (D) A description of the efforts the Sec2 retary has undertaken to ensure that qualified 

3 bodies are properly issuing licenses and regu4 lating licensees under this title. 

5 (E) A detailed description of each type of 

6 game offered by licensees and how each type is 

7 consistent with the definition of ‘‘poker’’ under 

8 section 102. 

9 (F) Such other information as the Sec10 retary considers appropriate. 

11 (b) CONSUMER PROTECTION.— 

12 (1) IN GENERAL.—Not later than 1 year after 

13 the date of first issuance specified in section 114(a) 

14 and not less frequently than annually thereafter, the 

15 Secretary shall submit to the Committee on Bank16 ing, Housing and Urban Affairs of the Senate and 

17 the Committee on Financial Services of the House of 

18 Representatives a report on commercial and regu19 latory practices carried out to protect consumers 

20 with respect to Internet gambling, including the 

21 practices carried out pursuant to the requirements 

22 of section 107 and the regulations prescribed pursu23 ant to such section. 

24 (2) ELEMENTS.—Each report submitted under 

25 paragraph (1) shall include the following: 


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1 (A) A detailed description of the efforts of 

2 each qualifying body to protect consumers from 

3 unfair or deceptive acts or practices, including 

4 deceptive advertising and marketing to minors. 

5 (B) A description of the practices that the 

6 Secretary recommends qualifying bodies adopt 

7 to protect consumers. 

8 (C) Such recommendations as the Sec9 retary may have for legislative action as the 

10 Secretary considers necessary to protect con11 sumers with respect to Internet gambling. 

12 (D) Such other information as the Sec13 retary considers appropriate. 

14 SEC. 116. INDEPENDENT TESTING OF LICENSED OPERATOR 

15 EQUIPMENT. 

16 (a) REQUIREMENT.—The Secretary shall require 

17 independent testing of hardware, software, communica18 tions equipment, and other necessary devices for Internet 

19 gambling facilities to ensure the integrity, accountability, 

20 and randomness of play and network security. 

21 (b) DEFINITION.—For purposes of this section, the 

22 term ‘‘independent testing’’ means testing conducted by 

23 a scientific laboratory— 

24 (1) that is accredited by an intentional accredi25 tation body approved by the Secretary; 


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1 (2) that is competent and qualified to scientif2 ically test and evaluate equipment, software, commu3 nications and functionality relating to the operation 

4 of an Internet gambling facility; and 

5 (3) that is not be owned or controlled by an 

6 Internet gambling facility, an electronic gaming 

7 equipment vendor, manufacturer, or retailer, or an 

8 Internet gaming operator. 

9 SEC. 117. INCLUSION OF AUTHORITY TO ADDRESS GAM10 BLING ADDICTION IN SAMHSA AUTHORITIES. 

11 Section 501(d) of the Public Health Service Act (42 

12 U.S.C. 290aa(d)) is amended— 

13 (1) by striking ‘‘and’’ at the end of paragraph 

14 (17); 

15 (2) by striking the period at the end of para16 graph (18) and inserting ‘‘; and’’; and 

17 (3) by adding at the end the following: 

18 ‘‘(19) establish and implement programs for the 

19 identification, prevention, and treatment of patholog20 ical and other problem gambling.’’. 

21 SEC. 118. COMPILATION OF DATASETS ON PLAYER BEHAV22 IOR. 

23 The Secretary shall compile and make available to the 

24 public, on the Web site of the Department of the Treasury, 

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1 havior from customer tracking data collected or generated 

2 by loyalty programs, player tracking software, online gam3 bling transactions, or any other information system. The 

4 Secretary shall ensure that personally identifying informa5 tion, including player name, street address, and bank or 

6 credit information, are automatically removed from the 

7 data. The data shall include information on player charac8 teristics including gender, age and region of residence, 

9 player behavior including frequency of play, length of play, 

10 speed of play, denomination of play, amounts wagered 

11 and, if applicable, number of lines or hands played, and 

12 characteristics of games played. 

13 SEC. 119. EFFECTIVE DATE. 

14 (a) IN GENERAL.—Except as otherwise provided in 

15 this title, the provisions of this title shall take effect on 

16 the date that is 30 days after the date of the enactment 

17 of this Act. 

18 (b) REGULATIONS REQUIRED BEFORE ISSUING LI19 CENSES.—Notwithstanding any other provision of this 

20 title, a qualified body may not issue a license under this 

21 title until the qualified body has issued regulations to meet 

22 its obligations as a qualified body. 


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1 TITLE II—ENFORCEMENT 

2 UNDER TITLES 18 AND 31, 

3 UNITED STATES CODE 

4 SEC. 201. FINANCIAL SERVICE PROVIDERS. 

5 Subchapter IV of chapter 53 of title 31, United 

6 States Code, is amended— 

7 (1) in section 5362— 

8 (A) by redesignating paragraph (11) as 

9 paragraph (12); and 

10 (B) by inserting after paragraph (10) the 

11 following: 

12 ‘‘(11) LIST OF LICENSED INTERNET GAMBLING

13 FACILITIES.—The term ‘list of licensed Internet 

14 gambling facilities’ means the list established and 

15 maintained under section 106(n) of the Internet 

16 Gambling Regulation, Enforcement, and Consumer 

17 Protection Act of 2013.’’; and 

18 (2) in section 5364, by striking subsection (d) 

19 and inserting the following: 

20 ‘‘(d) FINANCIAL TRANSACTION PROVIDERS.— 

21 ‘‘(1) IN GENERAL.—A financial transaction pro22 vider shall prevent, prohibit, or suspend its service 

23 from completing payment transactions involving cus24 tomers within the United States and a person or en25 tity that is— 


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1 ‘‘(A) an Internet gambling facility not in2 cluded on the list of licensed Internet gambling 

3 facilities, or that the financial transaction pro4 vider reasonably believes is included on such 

5 list; 

6 ‘‘(B) demonstrated to be, or that the fi7 nancial transaction provider reasonably believes 

8 to be, an unlicensed Internet gambling enter9 prise, based on information other than the list 

10 of licensed Internet gambling facilities; or 

11 ‘‘(C) acting on behalf of an Internet gam12 bling facility that is not included on the list of 

13 licensed Internet gambling facilities, or that the 

14 financial transaction provider reasonably be15 lieves is included on such list, if the financial 

16 transaction provider has knowledge that such 

17 person or entity is acting on behalf of the unli18 censed person or entity. 

19 ‘‘(2) SAFE HARBOR.—A financial transaction 

20 provider shall not be held liable to any person— 

21 ‘‘(A) for engaging in a financial activity or 

22 transaction, including a payments processing 

23 activity, in connection with a bet or wager that 

24 the provider believes is permitted by the Inter25 net Gambling Regulation, Enforcement, and 


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1 Consumer Protection Act of 2013 or the Inter2 net horseracing Act of 1978 (15 U.S.C. 3001 et 

3 seq.), unless the financial transaction provider 

4 has actual knowledge that the financial activity 

5 or transaction was conducted in violation of ei6 ther such Act or any applicable provision of 

7 Federal or State law; or 

8 ‘‘(B) for taking any action pursuant to 

9 paragraph (1).’’. 

10 SEC. 202. AMENDMENTS RELATING TO ILLEGAL GAMBLING 

11 BUSINESSES. 

12 Section 1955(b)(1) of title 18, United States Code, 

13 is amended— 

14 (1) in clause (i), by striking ‘‘(i) is’’ and insert15 ing ‘‘(A)(i) is’’; 

16 (2) in clause (iii), by striking the period at the 

17 end and inserting ‘‘; or’’; and 

18 (3) by adding at the end the following: 

19 ‘‘(B) is an unlawful Internet gambling fa20 cility, as defined in section 102 of the Internet 

21 Gambling Regulation, Enforcement, and Con22 sumer Protection Act of 2013.’’. 


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1 SEC. 203. FURTHER AMENDMENTS TO SUBCHAPTER IV OF 

2 CHAPTER 53 OF TITLE 31, UNITED STATES 

3 CODE. 

4 Section 5362(10) of title 31, United States Code, is 

5 amended— 

6 (1) by striking subparagraphs (A) through (C) 

7 and inserting the following: 

8 ‘‘(A) IN GENERAL.—The term ‘unlawful 

9 Internet gambling’ means to place, receive, or 

10 otherwise knowingly transmit a bet or wager by 

11 or on behalf of a person located in the United 

12 States by any means which involves the use, at 

13 least in part, of the Internet, unless such bet or 

14 wager is expressly permitted under applicable 

15 Federal law.’’; 

16 (2) by redesignating subparagraph (D) as sub17 paragraph (B); 

18 (3) in subparagraph (B), as so redesignated, by 

19 striking clause (iii); and 

20 (4) by striking subparagraph (E) and inserting 

21 the following: 

22 ‘‘(C) QUALIFYING INTRASTATE LOTTERY

23 TRANSACTIONS.—The term ‘unlawful Internet 

24 gambling’ does not include the purchase of a 

25 chance or opportunity to win a lottery or other 

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1 itations set out in section 102(3)(B) of the 

2 Internet Gambling Regulation, Enforcement, 

3 and Consumer Protection Act of 2013. 

4 ‘‘(D) LICENSED INTERNET GAMBLING FA5 CILITIES.—The term ‘unlawful Internet gam6 bling’ does not include an activity carried out 

7 by an Internet gambling facility, as such term 

8 is defined in section 102 of the Internet Gam9 bling Regulation, Enforcement, and Consumer 

10 Protection Act of 2013, operated by a person 

11 under a license provided under title I of that 

12 Act, in accordance with the provisions of that 

13 title I.’’. 

14 SEC. 204. BETTOR FORFEITURE. 

15 Section 981(a)(1) of title 18, United States Code, is 

16 amended by adding at the end the following: 

17 ‘‘(I) Any property, real or personal, in18 volved in a transaction or attempted transaction 

19 in violation of section 103 of the Internet Gam20 bling Regulation, Enforcement, and Consumer 

21 Protection Act of 2013, or any property trace22 able to such property.’’. 

23 SEC. 205. REGULATIONS. 

24 (a) REGULATIONS.—Not later than 180 days after 

25 the date of enactment of this Act, the Secretary of the 


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1 Treasury shall prescribe such regulations as the Secretary 

2 of the Treasury considers necessary to ensure compliance 

3 with the Bank Secrecy Act (12 U.S.C. 1951 et seq.; 31 

4 U.S.C. 5311 et seq.), by licensees, significant vendors to 

5 such licensees, and financial service providers to such li6 censees (as those terms are defined in section 102). 

7 (b) REVISION OF REGULATIONS.—Not later than 180 

8 days after the date of enactment of this Act, the Secretary 

9 of the Treasury shall revise part 233 of title 12, Code of 

10 Federal Regulations, and part 132 of title 31, Code of 

11 Federal Regulations, to conform with the provisions of 

12 title I. 

13 SEC. 206. CONFORMING AMENDMENT. 

14 Section 310(b)(2)(I) of title 31, United States Code, 

15 is amended by striking ‘‘subchapter II’’ and inserting 

16 ‘‘subchapters II and IV’’. 

17 TITLE III—OTHER MATTERS 

18 SEC. 301 SEVERABILITY. 

19 If any provision of this Act is declared unconstitu20 tional, or the applicability thereof to any person or cir21 cumstances is held invalid, the remainder of the Act shall 

22 remain in effect and will continue to apply to other per23 sons and circumstances. 

Æ 


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