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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2282 Introduced in House (IH)]

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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Internet Gambling 
Regulation, Enforcement, and Consumer Protection Act of 2013''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
     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.

     TITLE I--INTERNET GAMBLING REGULATION AND CONSUMER PROTECTION

SEC. 101. FINDINGS.

    (a) Findings.--Congress makes the following findings:
            (1) Since the development of the Internet, Internet sites 
        offering Internet gambling have raised consumer protection and 
        enforcement concerns for Federal and State governments as such 
        Internet sites are often run by unknown operators located in 
        many different countries, subject to little or no oversight, 
        and have sought to attract customers from the United States.
            (2) Subchapter IV of chapter 53 of title 31, United States 
        Code, which was added by the enactment of the Unlawful Internet 
        Gambling Enforcement Act of 2006 (title VIII of Public Law 109-
        347; 120 Stat. 1952), makes it a Federal crime for gambling 
        businesses to knowingly accept most forms of payment in 
        connection with the participation of another person in unlawful 
        Internet gambling. Since the enactment of the Unlawful Internet 
        Gambling Enforcement Act of 2006, such subchapter IV has helped 
        aid enforcement efforts against unlawful Internet gambling 
        operators and to limit unlawful Internet gaming involving 
        United States persons.
            (3) In 2006, Congress enacted the Unlawful Internet 
        Gambling Enforcement Act, which prohibited the acceptance or 
        processing of financial instruments for the purpose of unlawful 
        Internet gambling, but which did not clarify which bets or 
        wagers are prohibited by law. Groups such as the National 
        District Attorneys Association and the Fraternal Order of 
        Police have expressed support for a law that clearly prohibits 
        all unlicensed Internet gambling. Enacting such a law will aid 
        law enforcement, prosecutors and courts in their efforts to 
        curtail unlawful Internet gambling.
            (4) On December 23, 2011, the Department of Justice 
        released a memorandum opinion of the Office of Legal Counsel 
        dated September 20, 2011, that construed section 1084 of title 
        18, United States Code (referred to as the ``Wire Act''), to 
        apply only to sports-related gambling activities in interstate 
        and foreign commerce, with the result that non-sports related 
        Internet gambling in the United States has been found not to be 
        prohibited under Federal law if it is lawful under State law.
            (5) A growing number of States and Indian tribes have 
        legalized or are considering legalizing and promoting Internet 
        gambling to generate revenue. Absent Federal limitations and 
        enforcement, State regulation of Internet gambling, including 
        consumer safeguards, could vary widely from State to State, and 
        States could have difficulty enforcing Internet gambling 
        restrictions within their borders, especially against out-of-
        State operators.
            (6) A number of States have authorized or are considering 
        authorizing Internet purchases of lottery subscriptions or 
        other lottery games to generate revenue, which should not be 
        prevented by Federal law.
            (7) Federal law needs to be updated to make clear its 
        relationship to Internet gambling to strengthen enforcement and 
        to ensure an effective Internet gambling enforcement structure 
        that protects consumers and the ability of States to enforce 
        State laws relating to Internet gambling.
            (8) Since the passage of the Professional and Amateur 
        Sports Protection Act (Public Law 102-559) in 1992, which added 
        chapter 178 to title 28, United States Code, such chapter has 
        played an important and effective role in implementing 
        longstanding Federal policy against gambling on professional, 
        scholastic, and amateur sporting events.
            (9) Additional tools to assist law enforcement, banks and 
        financial transaction providers, and Internet service providers 
        in the prevention of unlawful Internet gambling activities 
        would be important and beneficial. Maintenance of a list of 
        licensed Internet gambling operators would provide a level of 
        certainty as to permitted transactions and law enforcement 
        efforts.
            (10) Internet gambling, like much other Internet commerce, 
        traverses State boundaries. Any particular transaction may 
        cross a number of State boundaries from origin to destination, 
        and communications between the same parties at different times 
        may travel along markedly different routes, based on factors 
        such as traffic, load capacity, and other technical 
        considerations outside the control of sender and recipient. For 
        that reason, among others, the Federal courts consistently have 
        ruled that the Internet is an instrumentality and channel of 
        interstate commerce and, as such, is subject to Congress's 
        plenary authority. For these same reasons, Internet gambling by 
        its very nature implicates Federal concerns, and is different 
        in kind and effect from traditional gambling activity.
            (11) A Federal regime to regulate Internet gambling and to 
        protect consumers should include an effective framework--
                    (A) to prevent underage wagering and otherwise to 
                protect vulnerable individuals;
                    (B) to ensure the games are fair and are conducted 
                honestly;
                    (C) to ensure that States and Indian tribes that 
                wish to prohibit Internet gambling may do so;
                    (D) to promote the ability of State and Tribal 
                lotteries to generate revenue for the jurisdictions 
                that license them; and
                    (E) to facilitate the enforcement of Federal, 
                State, and tribal laws against unauthorized Internet 
                gambling.
            (12) To avoid uneven treatment of Internet gambling and 
        land-based gambling and the risk of discrimination against 
        existing land-based gambling operations and States that have 
        authorized gambling, a Federal regime to regulate Internet 
        gambling should contain revenue measures sufficient to ensure 
        that Internet gambling activities generate at least equivalent 
        revenues for the Federal Government and the States combined as 
        they would generate if the gambling was carried out at land-
        based operations.
            (13) Federal regulation of Internet gambling should be 
        designed and implemented to foster a level-playing field among 
        all forms of traditional gambling and all types of Internet 
        gambling operators, including casinos, Indian tribes offering 
        gambling services, State-licensed lotteries, horseracing, and 
        any other form of gambling that is not sports-related, as well 
        as among Internet companies with relevant expertise in e-
        commerce who meet the same qualifications as traditional 
        casinos for integrity and for the capacity to carry out 
        Internet gambling operations that meet applicable Federal and 
        State standards.

SEC. 102. DEFINITIONS.

    In this title:
            (1) Applicant.--The term ``applicant'' means any person who 
        has applied for a license under this title.
            (2) Bet or wager.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the term ``bet or wager'' has the meaning given 
                the term in section 5362 of title 31, United States 
                Code.
                    (B) Exception.--The term ``bet or wager'' does not 
                include the following:
                            (i) A bet or wager that is permissible 
                        under the Interstate horseracing Act of 1978 
                        (15 U.S.C. 3001 et seq.).
                            (ii) A qualifying intrastate lottery 
                        transaction.
            (3) Casino gaming.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the term ``casino gaming'' means the full range of 
                casino gaming activity licensed by regulatory bodies of 
                States or Indian tribes that would be qualified as 
                class III gaming under section 4 of the Indian Gaming 
                Regulatory Act (25 U.S.C. 2703) if that Act were 
                applicable to the gaming.
                    (B) Exception.--The term ``casino gaming'' does not 
                include lotteries of States or Indian tribes in 
                compliance with the law of that State or Indian tribe, 
                as applicable, and which solely provide lottery tickets 
                to participants wholly within the boundaries of such 
                State or the Indian lands of such Indian tribe.
            (4) Gaming device.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the term ``gaming device'' means any computer-
                based gambling machine, including slot machines and 
                video lottery terminals that have been approved by a 
                gaming regulatory authority of a State or Indian tribe.
                    (B) Exception.--The term ``gaming device'' does not 
                include machines that process bets or wagers for pari-
                mutuel betting pools.
            (5) Indian lands and indian tribe.--The terms ``Indian 
        lands'' and ``Indian tribe'' have the meaning given the terms 
        in section 4 of the Indian Gaming Regulatory Act (25 U.S.C. 
        2703).
            (6) Internet.--The term ``Internet'' has the meaning given 
        the term in section 5362 of title 31, United States Code.
            (7) Internet gambling facility.--The term ``Internet 
        gambling facility'' means an Internet website, or similar 
        communications facility in which transmissions may cross State 
        boundaries, through which a bet or wager is initiated, 
        received, or otherwise made, whether transmitted by telephone, 
        Internet, satellite, or other wire or wireless communication 
        facility, service, or medium, including an Internet gambling 
        facility not operating under a license in good standing issued 
        under this title, including any facility that facilitates 
        qualifying intrastate lottery transactions to the degree that 
        such facility facilitates such transactions.
            (8) Licensee.--The term ``licensee'' means a person who 
        operates an Internet gambling facility under a license issued 
        by a qualified body pursuant to this title.
            (9) Live racing.--The term ``live racing'' means, with 
        respect to a physical race track, the conduct of live 
        thoroughbred horse races at such race track and does not 
        include any races simulcasted from a separate race track.
            (10) Operate an internet gambling facility.--The term 
        ``operate an Internet gambling facility'' means to conduct, 
        direct, manage, own, supervise, or control an Internet gambling 
        facility.
            (11) Person.--The term ``person'' means a natural person, 
        corporation, casino gambling facility, or race track, an 
        Internet gambling facility, an Internet poker facility, a State 
        or State agency, or an Indian tribe or corporation, agency, or 
        instrumentality of an Indian tribe.
            (12) Qualified body.--The term ``qualified body'' means the 
        following:
                    (A) The Office of Internet Gambling Oversight 
                established under section 104(a) and designated under 
                section 105(a)(2).
                    (B) Any State agency or regulatory body of an 
                Indian tribe that has been designated as a qualified 
                body under paragraph (1) or (3) of section 105(a).
            (13) Qualified race track.--The term ``qualified race 
        track'' means a race track that has been licensed by a 
        regulatory authority of a State or Indian tribe.
            (14) Qualifying intrastate lottery.--The term ``qualifying 
        intrastate lottery'' means a lottery or other prize, through 
        the purchase of a chance or opportunity to win, that is offered 
        by a State or Indian tribe--
                    (A) that is operating lawfully under the laws of 
                that State or Indian tribe, as the case may be;
                    (B) that is not related to a sporting event;
                    (C) in which the opportunity to win is 
                predominately subject to chance; and
                    (D) that provides the chances or opportunity to win 
                for purchase to participants only within the boundaries 
                of that State or the Indian lands of that Indian tribe, 
                as the case may be.
            (15) Qualifying lottery transaction.--The term ``qualifying 
        lottery transaction'' means the purchase of a chance or 
        opportunity to win a lottery or other prize offered by a State 
        lottery, operating lawfully under the laws of a State or Indian 
        tribe, that is not sports-related and--
                    (A) which opportunity to win is predominantly 
                subject to chance; and
                    (B) which is authorized by a State or Indian tribe.
            (16) Remote gaming equipment.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the term ``remote gaming equipment'' means 
                electronic or other equipment principally used by or on 
                behalf of an operator of an Internet gambling facility, 
                including by any significant vendor to such operator, 
                to--
                            (i) register a person's participation in 
                        Internet gambling and to store information 
                        relating thereto;
                            (ii) present to persons who are 
                        participating or who may participate in 
                        Internet gambling the game that is to be 
                        played;
                            (iii) determine all or part of, or the 
                        effect of, a result relevant to Internet 
                        gambling and to store information relating 
                        thereto;
                            (iv) accept payment with respect to 
                        Internet gambling from the player; or
                            (v) authorize payment of any winnings in 
                        respect of Internet gambling.
                    (B) Exception.--The term ``remote gaming 
                equipment'' does not include the following:
                            (i) Equipment used for business continuity, 
                        back-up, excess capacity, or other secondary 
                        use.
                            (ii) A computer which is used by a person 
                        to participate in Internet gambling unless the 
                        computer is provided by or on behalf of the 
                        person who is conducting or providing the 
                        facilities for the game.
                            (iii) Equipment operated in the ordinary 
                        course of providing banking, 
                        telecommunications, or payment processing 
                        services.
                            (iv) Such other equipment that provides 
                        ancillary services as the Secretary considers 
                        appropriate.
            (17) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
            (18) Significant vendor.--The term ``significant vendor'' 
        means a person who--
                    (A) on behalf of a licensee, knowingly manages, 
                administers, or controls bets or wagers that are 
                initiated, received, or otherwise made within the 
                United States;
                    (B) on behalf of a licensee, knowingly manages, 
                administers, or controls the games with which such bets 
                or wagers are associated;
                    (C) on behalf of a licensee, develops, maintains, 
                or operates the software or other system programs or 
                hardware on which the games or the bets or wagers are 
                managed, administered, or controlled;
                    (D) provides the trademarks, tradenames, service 
                marks, or similar intellectual property under which a 
                licensee identifies its Internet gambling facility to 
                its customers in the United States;
                    (E) sells, licenses, or otherwise receives 
                compensation for selling or licensing information on 
                individuals in the United States that made bets or 
                wagers with an Internet gambling facility not licensed 
                under this title via a database or customer lists;
                    (F) provides any products, services, or assets to a 
                licensee and is paid a percentage of gaming revenue or 
                commission fees by the licensee (not including fees to 
                financial institutions and payment providers for 
                facilitating a deposit by a customer); or
                    (G) with respect to an applicant, proposes to 
                provide any of the activities, services, or items 
                identified in subparagraphs (A) through (F).
            (19) Sporting event.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the term ``sporting event'' means any athletic 
                competition, whether professional, scholastic, or 
                amateur or any performance of any athlete in such 
                competitions.
                    (B) Exception.--The term ``sporting event'' does 
                not include any activity described in section 
                3704(a)(4) of title 28, United States Code.
            (20) State.--The term ``State'' means each of the several 
        States of the United States, the District of Columbia, and any 
        commonwealth, territory, or possession of the United States.

SEC. 103. PROHIBITION ON OPERATION OF INTERNET GAMBLING FACILITIES.

    (a) Prohibition.--
            (1) In general.--It shall be unlawful for a person to 
        operate an Internet gambling facility that offers services to 
        persons in the United States, except as authorized under this 
        Act.
            (2) Exception.--Paragraph (1) shall not apply to the 
        operation of an Internet gambling facility by a person located 
        inside the United States who is a licensed operator under this 
        Act; to any qualified race track; to any operator offering 
        qualifying lottery transactions; to any operator authorized and 
        licensed to provide services relating to bets or wagers by a 
        State or Indian tribe in compliance with the law of that State 
        or Indian tribe, as applicable, and which solely provides 
        services to participants wholly within the boundaries of such 
        State or the Indian lands of such Indian tribe; or to any 
        person engaged outside the United States in which bets or 
        wagers are initiated, received, or otherwise made solely by 
        individuals located outside the United States.
    (b) Criminal Penalties.--Any person who violates this section shall 
be fined under title 18, United States Code, imprisoned for not more 
than 10 years, or both.

SEC. 104. OFFICE OF INTERNET GAMBLING OVERSIGHT.

    (a) Establishment.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Secretary shall establish within 
        the Department of the Treasury an office to exercise the 
        functions of the Secretary under this title.
            (2) Designation.--The office established under paragraph 
        (1) shall be known as the ``Office of Internet Gambling 
        Oversight'' (in this section referred to as the ``Office'').
    (b) Executive Director.--
            (1) In general.--The Secretary shall appoint as the head of 
        the Office an executive director.
            (2) Experience and expertise.--The executive director of 
        the Office shall be appointed by the Secretary from among 
        individuals who demonstrate the following:
                    (A) Skill and experience in gaming regulation and 
                enforcement.
                    (B) Experience in criminal investigations and law 
                enforcement generally.
                    (C) A reputation for good character, honesty, and 
                integrity.
            (3) Background investigation.--Before appointing an 
        individual as executive director under paragraph (1), the 
        Secretary shall conduct a background investigation into the 
        financial stability, integrity, and responsibility of the 
        individual.
            (4) Limitations.--The Secretary may not appoint under 
        paragraph (1) an individual who--
                    (A) has been convicted of a felony; or
                    (B) maintains any ownership or equity interest or 
                any ongoing business relationship with--
                            (i) an operator of a casino gaming 
                        facility, Internet gambling facility, race 
                        track, lottery, or other regulated gambling 
                        entity; or
                            (ii) A significant vendor.
    (c) Delegation of Authority.--
            (1) In general.--The Secretary may delegate to the 
        executive director of the Office any authority, duty, or 
        responsibility conferred upon the Secretary by this title.
            (2) Regulatory authority of executive director.--The 
        executive director of the office may prescribe such regulations 
        and take such actions as may be necessary to carry out such 
        authorities, duties, or responsibilities delegated to the 
        executive director by the Secretary paragraph (1).
    (d) Regulations and Standards.--
            (1) Regulations and standards necessary to function as 
        qualified body.--With respect to the application of this title 
        to the functions of the Office as a qualified body under 
        section 105(a)(2), the Secretary shall, not later than 270 days 
        after the date of the enactment of this Act, prescribe 
        regulations and standards to implement the requirements set out 
        in subsections (d) and (g) of section 106 and section 107.
            (2) Manner of prescription.--Regulations prescribed under 
        paragraph (1) shall be prescribed in accordance with section 
        553 of title 5, United States Code.
    (e) Publication of Information to Facilitate Submittal of 
Applications for Initial Designation as Qualified Bodies.--Not later 
than 150 days after the date of the enactment of this Act, the 
Secretary shall publish in the Federal Register such information as may 
be necessary for an applicant to submit a complete application under 
section 105(a)(1)(B).
    (f) Detail of Government Employees.--Any Federal Government 
employee may be detailed to the office without reimbursement, and such 
detail shall be without interruption or loss of civil service status or 
privilege.

SEC. 105. QUALIFIED BODIES.

    (a) Designation of Qualified Bodies.--
            (1) Initial designation of qualified bodies.--
                    (A) Designation.--
                            (i) In general.--Not later than 270 days 
                        after the date of the enactment of this Act, 
                        the Secretary shall designate as qualified 
                        bodies all State agencies, and regulatory 
                        bodies of Indian tribes, that submit 
                        applications under subparagraph (B) and satisfy 
                        the criteria set forth under subparagraph (C).
                            (ii) Subsequent designations.--After the 
                        initial designations--
                                    (I) the Secretary may at any time 
                                designate additional State agencies or 
                                regulatory bodies of Indian tribes as 
                                qualified bodies as deemed appropriate 
                                to carry out the goals of this Act, so 
                                long as they meet the criteria set 
                                forth under subparagraph (C); and
                                    (II) notify each such agency or 
                                regulatory body of the determinations 
                                and designations made under subclause 
                                (I).
                    (B) Application.--Each State agency or regulatory 
                body of an Indian tribe seeking to be designated as a 
                qualified body under subparagraph (A) shall submit to 
                the Secretary an application therefor in such form and 
                containing such information as the Secretary may 
                require, which shall be submitted not later than 180 
                days after the date of the enactment of this Act for 
                any such agency or body that seeks to be among those 
                designated under subparagraph (A)(i).
                    (C) Standards for qualified bodies.--The Secretary 
                shall prescribe strict threshold requirements for the 
                designation of agencies or regulatory bodies as 
                qualified bodies under this paragraph, including 
                standards relating to the following:
                            (i) The size and qualification of staff of 
                        the qualified body to ensure the qualified body 
                        employs sufficient number of enforcement agents 
                        with experience in gaming regulatory 
                        enforcement areas to discharge its intended 
                        functions and has the sophistication and 
                        resources necessary to evaluate issues unique 
                        to the Internet environment.
                            (ii) The length of time the qualified body 
                        has regulated other forms of gaming or e-
                        commerce to ensure designations of only those 
                        regulatory bodies that have a history of 
                        demonstrated regulatory enforcement and 
                        oversight commensurate with the 
                        responsibilities imposed under this title.
                            (iii) The qualified body's experience and 
                        willingness to work with Federal authorities, 
                        including the Financial Crimes Enforcement 
                        Network.
                            (iv) The capacity and experience of the 
                        qualified body in conducting rigorous 
                        suitability reviews under section 106.
                            (v) The adequacy of enforcement and 
                        regulatory authorities for the qualified body 
                        under the law of the applicable State or Indian 
                        tribe, including, at a minimum, requirements 
                        and authorities on the following:
                                    (I) To investigate the suitability 
                                of each person required to be found 
                                suitable in connection with an 
                                application or license under this 
                                title.
                                    (II) To require licensees to 
                                maintain appropriate procedures to 
                                ensure the compliance of licensees with 
                                the provisions of this title and the 
                                regulations prescribed thereunder.
                                    (III) To examine any licensee and 
                                any books, papers, records, or other 
                                data of licensees and significant 
                                vendors relevant to any recordkeeping 
                                or reporting requirements imposed by 
                                the agency or regulatory body under 
                                this title.
                                    (IV) To summon a licensee, an 
                                applicant, a significant vendor, an 
                                officer or employee of a licensee, 
                                applicant, or significant vendor 
                                (including a former officer or 
                                employee), or any person having 
                                possession, custody, or care of the 
                                reports and records required by the 
                                agency or regulatory body as a 
                                qualified body under this title to 
                                appear before the agency or regulatory 
                                body at such time and place named in 
                                the summons, to produce such books, 
                                papers, records, or other data, and to 
                                give such testimony, under oath, as may 
                                be relevant or material to any 
                                investigation in connection with the 
                                enforcement o this title or any 
                                application for a license under this 
                                title.
                                    (V) To enforce or direct 
                                enforcement of a summons in State or 
                                tribal court, as the case may be.
                                    (VI) To investigate any violation 
                                of a provision of this title, any 
                                applicable regulation prescribed under 
                                this title, and any other violation of 
                                applicable State or tribal law relating 
                                to the operation of an Internet 
                                gambling facility.
                                    (VII) To conduct continuing reviews 
                                of applicants, licensees, and 
                                significant vendors and the operation 
                                of Internet gambling facilities by use 
                                of technological means, on-site 
                                observation of facilities, including 
                                servers, or other reasonable means to 
                                assure compliance with the provisions 
                                of this title and any applicable 
                                regulation prescribed thereunder.
                                    (VIII) To impose civil penalties 
                                for violations of this title and any 
                                applicable regulation prescribed 
                                thereunder or applicable order issued 
                                thereunder, including State or tribal 
                                law described under this subsection.
                                    (IX) To ensure that the hardware, 
                                software, and communications equipment, 
                                randomness, configuration, and network 
                                security of the Internet gambling 
                                facility are tested by an independent 
                                testing laboratory.
                                    (X) To resolve disputes between 
                                licensees and the individuals 
                                participating in Internet gambling via 
                                the Internet gambling facilities of the 
                                licensees.
                            (vi) Such other standards as the Secretary 
                        considers relevant to the ability of an agency 
                        or regulatory body to serve as an effective 
                        qualified body.
            (2) Designation of office of internet gambling oversight.--
                    (A) In general.--Not later than 270 days after the 
                date of the enactment of this Act, the Secretary shall 
                designate the Office of Internet Gambling Oversight 
                established under section 104(a) as a qualified body 
                that may issue licenses to Internet gambling facility 
                applicants and regulate the operation of Internet 
                gambling facilities by any applicant who seeks to 
                operate a licensed Internet gambling facility in the 
                United States.
                    (B) Construction.--Subparagraph (A) shall not be 
                construed to require any applicant seeking a license 
                under this title and submitting an application under 
                section 106(c)(1) to submit such application directly 
                to the Office of Internet Gambling Oversight, rather 
                than submitting such application to a State agency or 
                regulatory body of an Indian tribe that has been 
                designated by the Office of Internet Gambling Oversight 
                as a qualified body.
            (3) Nonqualifying state and tribal regulatory authorities 
        due to limited experience or conflicts.--
                    (A) In general.--The Secretary may not approve an 
                application from a State agency or regulatory body of 
                an Indian tribe under paragraph (1) if--
                            (i) the agency or regulatory body is 
                        located in a State or Indian lands that--
                                    (I) has not opted in under section 
                                108 and has not demonstrated an intent 
                                to opt in under such section; or
                                    (II) has not opted in under such 
                                section and has demonstrated an intent 
                                to opt in under such section but has 
                                failed to opt in under such section 
                                during the 1-year period beginning on 
                                the date of the agency's or regulatory 
                                body's application; or
                            (ii) the members of the agency or 
                        regulatory body are selected or controlled, 
                        directly or indirectly, by a person that has 
                        any ownership interest in an applicant, 
                        licensee, or significant vendor under this 
                        title or an Internet gambling facility, 
                        unless--
                                    (I) such applicant or licensee is 
                                licensed by the Secretary; or
                                    (II) such significant vendor is 
                                certified as suitable by the Secretary 
                                (and remains so certified at all times 
                                while providing services as a 
                                significant vendor to any licensee 
                                under this title).
                    (B) Non-controlling investment.--A non-controlling 
                investment of a State, Indian tribe, or local 
                government pension, retirement, annuity, or endowment 
                fund shall not be considered an ownership interest for 
                purposes of subparagraph (A)(ii).
            (4) Withdrawal of designation.--
                    (A) In general.--Beginning on the date that is 1 
                year after the date on which the Secretary prescribes 
                final regulations under this title, the Secretary may, 
                after providing at least 60 days notice to a qualified 
                body of the Secretary's intent to do so, withdraw the 
                designation of a qualified body under this section if 
                the Secretary determines that--
                            (i) the qualified body is not in compliance 
                        with the requirements of this title or 
                        regulations prescribed thereunder; or
                            (ii) the qualified body is not in 
                        compliance with the conditions under which the 
                        qualified body was designated.
                    (B) Opportunity to comply.--
                            (i) In general.--The Secretary may provide 
                        a qualified body who receives notice under 
                        subparagraph (A) with an opportunity to come 
                        into compliance as specified in that notice for 
                        a period of not more than 90 days.
                            (ii) Extension.--The Secretary may extend 
                        the period in clause (i) by not more than 180 
                        additional days if the qualified body has made 
                        substantial progress toward compliance as of 
                        the expiration of the first 90 day period.
                    (C) Effect of notice.--The Secretary may prohibit a 
                qualified body that receives notice under subparagraph 
                (A) from issuing new licenses under this title until 
                the Secretary determines that the qualified body is in 
                compliance with the requirements of this title and 
                regulations prescribed thereunder.
                    (D) Right to appeal.--A State agency or regulatory 
                body of an Indian tribe that has had its designation as 
                a qualified body withdrawn under subparagraph (A) or 
                (B) may seek judicial review of such withdrawal under 
                chapter 7 of title 5, United States Code.
            (5) Action upon withdrawal of designation.--
                    (A) In general.--Not later than 30 days after the 
                date on which the Secretary withdraws a designation of 
                a State agency or regulatory body of an Indian tribe 
                under paragraph (5), each person with a license issued 
                by the agency or regulatory body shall--
                            (i)(I) cease offering, accepting, and 
                        providing services with respect to bets or 
                        wagers from persons located in the United 
                        States under such license; and
                            (II) return all customer deposits of United 
                        States customers, or place those sums the 
                        return of which to United States customers is 
                        not feasible due to change in customer address, 
                        bank details, or similar difficulty in escrow 
                        in an account with a financial institution in 
                        the United States for safekeeping and orderly 
                        disposition by the Secretary; or
                            (ii) apply for a new license from a 
                        different qualified body.
                    (B) Interim operation.--If a person applies for a 
                new license under clause (ii) of subparagraph (A), the 
                person may continue the activities described in clause 
                (i)(I) of such subparagraph until final action is taken 
                on the license application by the qualified body.
                    (C) Interim regulatory oversight.--
                            (i) In general.--Until final action is 
                        taken under subparagraph (B) with respect to a 
                        person, the Secretary shall have enforcement 
                        and regulatory authority over the licensed 
                        activities of such person.
                            (ii) Delegation.--The Secretary may 
                        delegate enforcement and regulatory authority 
                        under clause (i) to such qualified body as the 
                        Secretary considers appropriate, with the 
                        consent of the qualified body.
    (b) Oversight of Qualified Bodies.--The Secretary may investigate 
and take such action as the Secretary considers appropriate with 
respect to any qualified body that appears, based upon the Secretary's 
own inquiry or based upon credible information provided by other 
qualified bodies, applicants, licensees, or law enforcement officials, 
to be deficient or substantially less rigorous than other qualified 
bodies in the discharge of its responsibilities under this title.

SEC. 106. ESTABLISHMENT OF LICENSING PROGRAM FOR INTERNET GAMBLING.

    (a) Treasury Responsibilities and Powers.--The Secretary shall have 
responsibility and authority for the following activities:
            (1) Reviewing and qualifying applicants to become Internet 
        gambling facilities under section 105(a)(2).
            (2) Reviewing and qualifying agencies and regulatory bodies 
        under section 105(a)(2).
            (3) Exercising oversight over qualified bodies to ensure 
        that qualified bodies--
                    (A) comply with the requirements of this title; and
                    (B) carry out their regulatory and enforcement 
                functions under this title with appropriate diligence.
            (4) Investigating and taking appropriate remedial action 
        with respect to any qualified body under section 105.
            (5) Prescribing such regulations as may be necessary to 
        administer and enforce the provisions of this title, including 
        issuing regulations establishing rules and procedures for 
        dealing with sums placed in escrow under subsection (l)(7), 
        section 105(a)(6)(A)(i)(II), and section 114(b)(1)(E).
            (6) Employing enforcement agents with sufficient training 
        and experience to administer the requirements of this title and 
        the regulations prescribed thereunder.
            (7) Enforcing the requirements of this title by all 
        appropriate means provided under this title and other 
        provisions of law.
    (b) Internet Gambling Facility Licensing Program.--
            (1) Authority to issue licenses limited to non-sports 
        related internet gambling.--A qualified body may issue licenses 
        under this title only for the operation of non-sports related 
        Internet gambling facilities.
            (2) Authority to operate internet gambling facility under 
        valid license.--
                    (A) In general.--Notwithstanding any other 
                provision of law and subject to the provisions of this 
                title, a licensee may accept a bet or wager with 
                respect to Internet gambling from an individual located 
                in the United States and may offer related services so 
                long as the license of the licensee issued under this 
                title remains in good standing.
                    (B) Only one license required.--Nothing in this 
                title may be construed to require a person to obtain a 
                license from more than one qualified body in order to 
                operate an Internet gambling facility under this title.
                    (C) Significant vendors.--
                            (i) In general.--Except as provided in 
                        clause (ii), if a person seeks a certificate of 
                        suitability from a qualified body to provide 
                        services to a licensee or applicant as a 
                        significant vendor with respect to an Internet 
                        gambling facility, such person shall not be 
                        required to obtain a license under this title 
                        to provide such services with respect to that 
                        Internet gambling facility.
                            (ii) Exception.--If a qualified body 
                        determines that requiring a person described in 
                        clause (i) to seek a license is necessary to 
                        prevent evasion of any provision of this title, 
                        and requiring so would otherwise be consistent 
                        with the provisions of this title, such 
                        qualified body may require such person to seek 
                        a license under this title instead of a 
                        certificate of suitability.
            (3) Operation outside the united states.--
                    (A) Limitation.--A licensee or an affiliate of a 
                licensee may not operate an Internet gambling facility 
                that accepts a bet or wager from an individual located 
                outside of the United States unless the transaction is 
                lawful under this Act and is not unlawful in the 
                jurisdiction in which the individual is located.
                    (B) Construction.--Nothing in this title shall be 
                construed to authorize a licensee or a foreign 
                affiliate thereof to accept a bet or wager from an 
                individual located in any jurisdiction outside the 
                United States that prohibits the licensee or a foreign 
                affiliate from accepting such bet or wager.
    (c) Application for License.--
            (1) Application.--A person seeking to operate an Internet 
        gambling facility under this title shall submit to the Office 
        of Internet Gambling Oversight or any other qualified body an 
        application for a license therefor at such time, in such form, 
        and in such manner as the qualified body receiving the 
        application considers appropriate.
            (2) Elements.--Each application submitted under paragraph 
        (1) shall include such information as the qualified body 
        receiving the application considers appropriate, including at a 
        minimum the following:
                    (A) Complete financial information about the 
                applicant.
                    (B) Documentation showing the organization of the 
                applicant and all related businesses and affiliates.
                    (C) The criminal and financial history of--
                            (i) the applicant;
                            (ii) each of the senior executives and 
                        directors of the applicant;
                            (iii) any other person who is in control of 
                        the applicant; and
                            (iv) such other persons as the qualified 
                        body considers appropriate.
                    (D) Such other information as may be necessary for 
                the suitability analysis required under subsection (d).
                    (E) Disclosure of all other applications for 
                licenses previously or simultaneously submitted under 
                paragraph (1) to other qualified bodies and whether 
                those applications are pending, were granted, or were 
                denied.
                    (F) A detailed description of the applicant's plan 
                for complying with all applicable requirements and 
                regulations prescribed pursuant to this title, with 
                particular emphasis on the applicant's ability to 
                comply with the regulations prescribed under subsection 
                (g).
                    (G) A certification by the applicant that the 
                applicant consents to personal jurisdiction over the 
                applicant by Federal courts and in the courts of the 
                State or Indian tribe of the qualified body to which 
                the applicant has applied with respect to a civil 
                action relating to the operation of an Internet 
                gambling facility.
            (3) Reports.--
                    (A) In general.--Each qualified body shall report 
                all applicants for licensure and the dispositions of 
                their applications to the Secretary promptly upon 
                disposition of each application or in such intervals as 
                the Secretary may prescribe.
                    (B) Contents.--Each report under subparagraph (A) 
                shall include such information or documentation as the 
                Secretary may require.
    (d) Standards for License Issuance; Suitability Qualifications and 
Disqualification Standards.--
            (1) Suitability for licensing.--
                    (A) In general.--No applicant shall be eligible to 
                obtain a license under this title unless a qualified 
                body, with whom the applicant has filed an application 
                for a license, has determined, upon completion of a 
                background check and investigation, that the applicant, 
                any person considered to be in control of the 
                applicant, all significant vendors of the applicant, 
                and any other person determined by the qualified body 
                as having significant influence on the applicant are 
                suitable for licensing.
                    (B) Application as request for determination of 
                suitability.--An application for a license submitted to 
                a qualified body under this title constitutes a request 
                for a determination of the general character, 
                integrity, and ability to participate or engage in or 
                be associated with an Internet gambling facility, as 
                appropriate, of the applicant, any person considered to 
                be in control of the applicant, all significant vendors 
                of the applicant, and all other persons determined by 
                the qualified body as having significant influence on 
                the applicant.
                    (C) Associates.--
                            (i) In general.--If an entity undergoing a 
                        determination of suitability under this 
                        paragraph is a corporation, partnership, or 
                        other business entity, a background check and 
                        investigation shall be carried out by the 
                        applicable qualified body with respect to the 
                        president or other chief executive of the 
                        corporation, partnership, or business entity 
                        and such other partners or senior executives 
                        and directors or shareholders of the 
                        corporation, partnership, or entity as the 
                        qualified body considers appropriate.
                            (ii) Minimum determination.--In carrying 
                        out clause (i), the qualified body shall, at a 
                        minimum, carry out a suitability review of the 
                        5 individuals receiving the most compensation 
                        (whether in the form of salary, bonus, 
                        dividends, distributions, disbursement of 
                        profits, or otherwise) from the entity, any 
                        person that controls the entity, and such other 
                        individuals or entities as the qualified body 
                        considers appropriate.
                    (D) Parity of investigation and analysis.--
                            (i) Diligence with respect to significant 
                        vendors and affiliates.--Each investigation and 
                        analysis of the suitability of a person with 
                        respect to an application for a license under 
                        this title, other than the applicant for such 
                        license, shall be carried out with the same 
                        degree of diligence as the investigation and 
                        analysis of the suitability of the applicant.
                            (ii) Stringency with respect to casino 
                        gaming facilities.--Each qualified body that 
                        also issues licenses to casino gaming 
                        facilities shall ensure that each investigation 
                        and analysis of the suitability of a person 
                        carried out by the qualified body under this 
                        subsection is no less stringent than a 
                        suitability review carried out by the qualified 
                        body for the licensing of casino gaming 
                        facilities.
            (2) Suitability standards.--For purposes of this title, an 
        applicant and any other person subject to a determination of 
        suitability under paragraph (1) may only be considered suitable 
        under this title if the applicant or person demonstrates to the 
        applicable qualified body by clear and convincing evidence that 
        the applicant or person--
                    (A) is a person of good character, honesty, and 
                integrity;
                    (B) is a person whose prior activities, criminal 
                record, if any, reputation, habits, and associations do 
                not--
                            (i) pose a threat to the public interest or 
                        to the effective regulation and control of 
                        Internet gambling facilities; or
                            (ii) create or enhance the dangers of 
                        unsuitable, unfair, or illegal practices, 
                        methods, and activities in the conduct of 
                        Internet gambling facilities or the carrying on 
                        of the business and financial arrangements 
                        incidental to such facilities;
                    (C) is capable of and likely to conduct the 
                activities for which the applicant is licensed or 
                receives a certificate of suitability in accordance 
                with the provisions of this title, any regulations 
                prescribed under this title, and all other applicable 
                laws;
                    (D) in the case of an applicant, has or guarantees 
                acquisition of adequate business competence and 
                experience in the operation of casino gaming 
                facilities, Internet gambling facilities, or Internet 
                gambling facilities;
                    (E) in the case of an applicant, has or will obtain 
                sufficient financing for the nature of the proposed 
                operation and from a suitable source; and
                    (F) has disclosed to the qualified body all known 
                affiliations or relationships, whether direct or 
                indirect, with persons and assets of persons described 
                by section 114(b)(2).
            (3) Unsuitable.--An applicant or any other person may not 
        be determined to be suitable under this subsection if the 
        applicant or such person--
                    (A) has failed to provide information and 
                documentation material to a determination of 
                suitability for licensing under paragraph (1);
                    (B) has supplied information which is untrue or 
                misleading as to a material fact pertaining to any such 
                determination;
                    (C) has been convicted of an offense that is 
                punishable by imprisonment of more than 1 year;
                    (D) is delinquent in the payment of any applicable 
                Federal or State tax, tax penalty, addition to tax, or 
                interest owed to a jurisdiction in which the applicant 
                or person operates or does business, unless such 
                payment has been extended or is the subject of a 
                pending judicial or administrative dispute;
                    (E) has not certified in writing, pursuant to 
                subsection (c)(2)(G), that the person submits to 
                personal jurisdiction in the United States;
                    (F) knowingly accepts or knowingly has accepted 
                bets or wagers on sporting events from persons located 
                in the United States in violation of a provision of 
                Federal or State law;
                    (G) has affiliated with any person that knowingly 
                accepts or knowingly has accepted bets or wagers on 
                sporting events from persons located in the United 
                States in violation of a provision of Federal or State 
                law; or
                    (H) fails to comply with such other standard as the 
                applicable qualified body considers appropriate.
            (4) Ongoing requirement.--A licensee (and any other person 
        who is required to be determined to be suitable for licensing 
        in connection with such licensee) shall meet the standards 
        necessary to be suitable for licensing or to receive a 
        certificate of suitability, as the case may be, throughout the 
        term of the license.
            (5) Certificate of suitability for significant vendors.--
                    (A) In general.--If a qualifying body determines 
                under paragraph (1) that a significant vendor of an 
                applicant is suitable under such paragraph, the 
                qualifying body shall issue a certificate to such 
                vendor that certifies the suitability of such vendor.
                    (B) Revocation of certificate.--A qualified body 
                that issues a certificate to a significant vendor under 
                subparagraph (A) shall revoke the certificate if at any 
                time the significant vendor no longer meets the 
                standards necessary for a determination of suitability.
                    (C) Reliance on certificate.--A qualified body may, 
                but need not, rely upon a certificate issued under 
                subparagraph (A) to a significant vendor with respect 
                to one application in the review of the same 
                significant vendor in other license applications.
                    (D) Certificates issued by other qualified 
                bodies.--A qualified body may, but need not, accept a 
                certificate issued to a significant vendor by another 
                qualified body as evidence of the suitability of the 
                significant vendor.
            (6) Other vendors.--
                    (A) Notice.--A licensee shall promptly notify the 
                qualified body that issued the license to the licensee 
                of all persons that are not significant vendors that--
                            (i) direct, provide, or solicit customers 
                        to or for the licensee's Internet gambling 
                        facility, or materially assist in any of those 
                        tasks, in return for a commission or other fee;
                            (ii) hold themselves out to the public as 
                        offering bets or wagers on the licensee's 
                        behalf;
                            (iii) offer bets or wagers under their own 
                        names or brands but using and relying on the 
                        licensee's Internet gambling facilities;
                            (iv) license trademarks, trade names, 
                        service marks, or other similar intellectual 
                        property to the licensee; or
                            (v) own a substantial interest in or 
                        control a person described in clause (i), (ii), 
                        (iii), or (iv).
                    (B) Suitability of other vendors and persons.--A 
                qualified body that reviews an application of an 
                applicant for a license or issues a license to a 
                licensee may, at the sole discretion of the qualified 
                body and on a case-by-case basis, require as a 
                condition of such license that a person meet 
                suitability requirements under paragraph (1) if the 
                person--
                            (i) is described in subparagraph (A) with 
                        respect to the applicant or licensee;
                            (ii) provides services to an applicant or 
                        licensee and the qualified body determines 
                        that, with respect to such services, there is a 
                        substantial risk of circumvention of the 
                        suitability requirements applicable to 
                        significant vendors; or
                            (iii) is associated with the applicant or 
                        licensee or one of the significant vendors of 
                        the applicant or licensee and the qualified 
                        body determines such person may pose a threat 
                        to the integrity of Internet gambling 
                        facilities operated by the applicant or 
                        licensee.
                    (C) Information.--A qualified body may require such 
                information from an applicant, licensee, significant 
                vendor or other person identified in this paragraph as 
                the qualified body considers necessary to carry out 
                this paragraph.
            (7) Enforcement actions.--
                    (A) In general.--If the Secretary or the qualified 
                body that issued a license to a licensee finds that the 
                licensee, or any other person that is subject to a 
                required determination of suitability in connection 
                with such licensee, ceases to meet the suitability 
                requirements of this subsection at any time during the 
                tenure of the license, the Secretary or the qualified 
                body may take action to protect the public interest, 
                including, if the Secretary or qualified body considers 
                necessary, the suspension or termination of the 
                license.
                    (B) Imposition of conditions including removal of 
                parties.--Notwithstanding a determination under 
                subparagraph (A), the Secretary or the qualified body 
                that issued a license to a licensee may allow the 
                licensee to continue engaging in licensed activities by 
                imposing conditions on the person to which subparagraph 
                (A) is applicable under penalty of revocation or 
                suspension of a license or certificate of suitability, 
                including--
                            (i) the identification of any person 
                        determined to be unsuitable; and
                            (ii) the establishment of appropriate 
                        safeguards to ensure such person is excluded 
                        from any management or involvement in operation 
                        of the licensed activities.
                    (C) Special rule for enforcement of prohibition on 
                unlawful sports wagering.--If the Secretary or a 
                qualified body finds that a licensee is no longer 
                suitable under this subsection because such licensee 
                has accepted bets or wagers as described in paragraph 
                (3)(F) or has affiliated as described in paragraph 
                (3)(G), the Secretary or the qualified body, as the 
                case may be, shall revoke the license of such licensee 
                in addition to the imposition of such other penalties 
                as the Secretary or qualified body considers 
                appropriate under this title.
            (8) Administrative provisions.--
                    (A) Background check and investigation.--Each 
                qualified body shall establish standards and procedures 
                for conducting background checks and investigations for 
                purposes of this subsection.
                    (B) Non-admissibility of statements for purposes of 
                defamation actions.--Any written or oral statement made 
                in the course of an official proceeding of the 
                Secretary or a qualified body, by any member thereof, 
                or any witness testifying under oath which is relevant 
                to the purpose of the proceeding and relates to the 
                review of an application for a license under this title 
                shall not be admissible in any Federal or State court 
                in a civil action to prove defamation.
                    (C) Preservation of privilege recognized under 
                other provisions of law.--Any privilege recognized 
                under any other provision of Federal, State, or tribal 
                law, including attorney-client, physician-patient, and 
                accountant-client privileges, shall not be waived or 
                lost because a document or communication otherwise 
                protected by the privilege is disclosed to the 
                Secretary or a qualified body under this title.
                    (D) Confidentiality.--
                            (i) Except as set forth in provision (ii) 
                        of this subsection, any communication or 
                        document, except information that is already 
                        public, shall be treated as confidential and 
                        may not be disclosed, in whole or part, by the 
                        Secretary or a qualified body without a lawful 
                        court order or as otherwise required by law, if 
                        the communication or document is--
                                    (I) required by the Secretary or 
                                qualified body to be disclosed by the 
                                applicant, licensee, or significant 
                                vendor, including applications, 
                                financial or earnings information, and 
                                criminal records, whether of the 
                                applicant or licensee or of any 
                                affiliate, employee, officer, director 
                                or significant vendor thereof, or of 
                                any other third-party;
                                    (II) prepared or obtained by an 
                                agent or employee of the Secretary or 
                                qualified body that contains 
                                information described in clause (i); or
                                    (III) submitted by the applicant, 
                                licensee, or significant vendor in 
                                connection with a pending application 
                                or existing license.
                            (ii) Nothing in this subsection shall limit 
                        the disclosure of information provided by an 
                        applicant, licensee, or significant vendor to 
                        the Secretary or qualified body to any official 
                        of the United States, or to any State 
                        regulatory or enforcement agency, requesting 
                        such information for any authorized purpose 
                        under Federal or State law, including but not 
                        limited to the administration or enforcement of 
                        Federal or State laws concerning internet 
                        gambling, U.S. tax laws, consumer protection, 
                        data protection, financial regulation, or for 
                        the purposes of any civil or criminal 
                        investigation.
    (e) Assessments for Administrative Expenses.--
            (1) User fees.--
                    (A) In general.--The cost of administering this 
                title with respect to each applicant, licensee, and 
                significant vendor, including the cost of any review or 
                examination of a licensee or its significant vendors to 
                ensure compliance with the terms of the license and 
                this title, shall be assessed by the qualified body 
                receiving an application or issuing a license against 
                the applicant, licensee, or significant vendor, as the 
                case may be, by written notice in an amount that the 
                qualified body determines is necessary to meet the 
                qualified body's expenses in carrying out such 
                administration, review, or examination.
                    (B) Expenses for review or examination.--Expenses 
                that are attributable to review or examination of a 
                particular applicant, licensee, or significant vendor 
                shall be assessed under subparagraph (A) against that 
                applicant, licensee, or significant vendor.
                    (C) Expenses for general administration.--Expenses 
                for general administration shall be assessed against 
                all licensees equally.
                    (D) User fees established by secretary.--
                            (i) In general.--The Secretary may 
                        establish user fees to be paid by applicants, 
                        licensees, and significant vendors in amounts 
                        the Secretary determines necessary to meet the 
                        Secretary's cost of administering this title.
                            (ii) Collection by qualified bodies.--
                        Qualified bodies shall collect user fees 
                        established under clause (i) from applicants, 
                        licensees, and significant vendors and turn 
                        them over promptly to the Secretary.
                            (iii) Disposition of user fees.--Amounts 
                        assessed by the Secretary as user fees under 
                        clause (i) shall--
                                    (I) be available to the Secretary 
                                to cover expenses incurred by the 
                                Secretary in carrying out the 
                                provisions of this title; and
                                    (II) not be construed to be 
                                Government funds or appropriated 
                                monies, or subject to apportionment for 
                                the purposes of any other provision of 
                                law.
                    (E) Disposition of user fees.--Except as provided 
                in subparagraph (D), amounts assessed by a qualified 
                body as user fees under this paragraph shall--
                            (i) be available to the qualified body to 
                        cover expenses incurred by the qualified body 
                        in carrying out the provisions of this title; 
                        and
                            (ii) except in the case of the Office of 
                        Internet Gambling Oversight established under 
                        section 104, not be construed to be Government 
                        funds or appropriated monies, or subject to 
                        apportionment for the purposes of any other 
                        provision of law.
                    (F) Collection.--If a licensee or significant 
                vendor fails to pay a user fee to a qualified body 
                under this paragraph after the assessment of the fee 
                has become final--
                            (i) the qualified body may recover the 
                        amount assessed by action in a court of the 
                        State or Indian tribe of the qualified body or 
                        in the United States district court in the 
                        State in which such qualified body is located, 
                        along with any costs of collection and attorney 
                        fees; and
                            (ii) such failure may be grounds for denial 
                        of an application for a license under this 
                        title or revocation of a license or certificate 
                        of suitability under this title.
                    (G) Payment of significant vendor user fees by 
                applicants and licensees.--A user fee assessed against 
                a significant vendor may be paid by an applicant or 
                licensee on behalf of the significant vendor.
            (2) Direct and exclusive obligation of licensee.--With 
        respect to a licensee, a user fee shall be the direct and 
        exclusive obligation of the licensee and may not be deducted 
        from amounts available as deposits to any person placing a bet 
        or wager with the licensee.
    (f) Approval of License.--
            (1) In general.--Except as provided in paragraph (2), a 
        qualified body may issue to an applicant a license under this 
        title for the operation of an Internet gambling facility if the 
        applicant meets the criteria established by the qualified body 
        under this title.
            (2) Authority of secretary to revoke licenses.--
                    (A) In general.--Notwithstanding any license or 
                certificate of suitability issued by a qualified body, 
                the Secretary may suspend or revoke such license or 
                certificate if the Secretary has reason to believe that 
                the recipient does not meet the suitability 
                requirements established under subsection (d) or, as 
                applicable, any other requirement imposed on a licensee 
                under this title.
                    (B) No authority to overturn denials and 
                terminations.--The Secretary may not overturn a 
                decision by a qualified body (other than the Office of 
                Internet Gambling Oversight) to deny or to terminate a 
                license or to deny or revoke a certificate of 
                suitability.
            (3) Conflicts between qualified bodies.--If a qualified 
        body denies a license, terminates a license, denies a 
        certificate of suitability, or revokes a certificate of 
        suitability to a person and within 1 year of such denial, 
        termination, or revocation another qualified body grants such 
        person a license or certificate of suitability, the Secretary 
        shall--
                    (A) commence a review of such license or 
                certificate of suitability; and
                    (B) not later than 90 days after such commencement, 
                determine whether to act under paragraph (2).
            (4) Control defined.--In this subsection, the term 
        ``control'', with respect to a person, means the possession, 
        directly or indirectly, of the power to direct or influence the 
        direction of the management or policies of the person, whether 
        through the ownership of voting securities, through a 
        management, executive officer, or board position, by 
        shareholders or similar agreement, or otherwise.
    (g) Safeguards Required of Licensee.--
            (1) In general.--No qualified body shall issue a license 
        under this title unless the qualified body--
                    (A) prescribes regulations that prohibit a person 
                from receiving or retaining a license under this title 
                unless the person maintains or requires mechanisms so 
                that the requirements described in paragraph (2) are 
                met with respect to the operation of an Internet 
                gambling facility; and
                    (B) reviews the applicant's ability to comply with 
                the requirements of this subsection, including by 
                testing the applicant's systems and software, or by 
                mandating such testing by an independent, qualified 
                entity.
            (2) Safeguards.--The requirements described in this 
        paragraph are as follows:
                    (A) Prohibition on underage gaming.--Appropriate 
                safeguards to ensure, to a reasonable degree of 
                certainty, that the individual placing a bet or wager 
                is not younger than 21 years of age, at the time of 
                registration and all log ons.
                    (B) Prohibited locations.--Appropriate safeguards 
                to ensure, to a reasonable degree of certainty, that 
                the individual placing a bet or wager is physically 
                located in a jurisdiction that has opted in under 
                section 108 at the time the bet or wager is placed, at 
                the time of registration and all log ons.
                    (C) Collection or reporting of customer taxes.--
                Appropriate mechanisms to ensure, to a reasonable 
                degree of certainty, that all taxes relating to 
                Internet gambling from persons engaged in bets or 
                wagers relating to such Internet gambling are collected 
                or reported, as required by law, at the time of any 
                payment of proceeds of such bets or wagers.
                    (D) Collection or reporting of taxes of licensee.--
                Appropriate mechanisms to ensure that all taxes 
                relating to the operation of an Internet gambling 
                facility from any licensee are collected as required by 
                law and that adequate records to enable later audit or 
                verification are maintained.
                    (E) Reporting of fees of licensee.--Appropriate 
                mechanisms to ensure that adequate records are 
                maintained to enable later audit or verification that 
                the licensee has paid all fees required under this 
                title.
                    (F) Safeguards against financial crime.--
                Appropriate safeguards to prevent, to a reasonable 
                degree of certainty, fraud, money laundering, tax 
                evasion, and terrorist financing.
                    (G) Safeguards against compulsive play.--
                Appropriate safeguards to ensure, to a reasonable 
                degree of certainty, compliance with the requirements 
                of section 107(b).
                    (H) Privacy safeguards.--Appropriate safeguards to 
                protect, to a reasonable degree of certainty, the 
                privacy and Internet security of any person engaged in 
                bets or wagers with the licensee's Internet gambling 
                facility.
                    (I) Payment of assessments.--Appropriate mechanisms 
                to ensure that any user fee required under subsection 
                (e) is paid to the qualified body.
                    (J) Honest games.--Appropriate safeguards to 
                ensure, to a reasonable degree of certainty, that 
                Internet gambling games are fair and honest, and to 
                prevent, to a reasonable degree of certainty, cheating, 
                including collusion, and use of cheating devices, 
                including use of software programs (sometimes referred 
                to as ``bots'') that make bets or wagers according to 
                algorithms.
                    (K) Segregation of player funds.--Appropriate 
                safeguards to ensure player funds are held in accounts 
                segregated from the funds of licensees and are 
                otherwise protected from corporate insolvency, 
                financial risk, or criminal or civil actions against 
                the licensee.
                    (L) Other requirements.--Such other mechanisms and 
                safeguards as the qualified body may establish by 
                regulation.
    (h) Location of Remote Gaming Equipment.--
            (1) Within the united states.--A licensee shall maintain 
        its remote gaming equipment within the territory of the United 
        States throughout the term of its license.
            (2) Within territory of qualified body.--A qualified body 
        may require a licensee of the qualified body to locate the 
        remote gaming equipment of the licensee within the territory of 
        the State or Indian tribe of the qualified body if the 
        qualified body determines that such requirement will advance 
        the regulatory interests of this title.
    (i) License Is a Privilege Not a Right.--
            (1) In general.--A decision by a qualified body not to 
        grant a person a license or certificate of suitability, or to 
        terminate a license or revoke a certificate of suitability, is 
        not reviewable under the law of any jurisdiction other than the 
        jurisdiction of the qualified body.
            (2) Appeal.--With respect to a decision described in 
        paragraph (1) of a qualified body, the State or Indian tribe of 
        the jurisdiction of the qualified body may, but need not, 
        provide an opportunity to appeal such decision.
    (j) Term, Renewal, and Transfer of License.--
            (1) Term.--Any license issued under this title shall be 
        issued for a 5-year term beginning on the date of issuance.
            (2) Renewal.--A license may be renewed in accordance with 
        requirements prescribed by the qualified body that issued the 
        license under this title.
            (3) Transfer.--A transfer of a license, change of control 
        of a licensee, or change in significant vendor shall require 
        prior approval by the qualified body that issued the license. 
        The qualified body shall at a minimum ensure the suitability 
        requirements of subsection (d) continue to be satisfied before 
        approving any such transfer or change.
    (k) Administrative Provisions.--
            (1) Determination of internet gambling.--
                    (A) Initial determination by qualified body.--A 
                determination whether a game, hand, tournament, or 
                other contest of a licensee is authorized Internet 
                gambling under this Act, and not prohibited sports-
                related Internet gambling, shall be made in the first 
                instance by the qualified body that issued the license 
                to such licensee under this title.
                    (B) Challenges.--
                            (i) In general.--A licensee or qualified 
                        body may challenge whether a game, hand, 
                        tournament, or other contest of another 
                        licensee is sports-related Internet gambling.
                            (ii) Challenge made with secretary.--A 
                        challenge made under clause (i) shall be made 
                        with the Secretary.
                            (iii) Determination made by secretary 
                        within 30 days.--If a challenge is made under 
                        clause (i), the Secretary shall make a 
                        determination whether the game, hand, 
                        tournament, or other contest is sports-related 
                        Internet gambling not later than 30 days after 
                        the date on which the challenge is made.
                            (iv) Operation until determination.--A 
                        licensee that offers a game, hand, tournament, 
                        or other contest that is challenged under 
                        clause (i) may continue to offer such game, 
                        hand, tournament, or other contest until the 
                        Secretary makes a determination under clause 
                        (iii).
                    (C) Appeals.--
                            (i) In general.--Not later than 30 days 
                        after the date on which the Secretary makes a 
                        determination under subparagraph (B)(iii), a 
                        licensee or a qualified body may appeal such 
                        determination under chapter 7 of title 5, 
                        United States Code.
                            (ii) Operation pending appeal.--During the 
                        period in which a game, hand, tournament, or 
                        other contest is being challenged through an 
                        appeal under clause (i), the United States 
                        District Court for the District of Columbia may 
                        allow a licensee to continue offering the game, 
                        hand, tournament, or other contest in full 
                        compliance with the terms of its existing 
                        license and any other conditions the court 
                        considers necessary, if the court determines 
                        that--
                                    (I) the licensee has a reasonable 
                                likelihood of success on the merits; 
                                and
                                    (II) allowing the licensee to 
                                continue offering the challenged game, 
                                hand, tournament, or other contest 
                                while the appeal is pending will not 
                                threaten the public interest.
            (2) Challenges under state law.--Except as provided in 
        paragraph (1) and unless otherwise specifically provided in 
        this title, actions taken by a qualified body other than the 
        Office of Internet Gambling Oversight may be challenged by 
        applicants and licensees only as permitted under the law of the 
        State or Indian tribe in which the qualified body is located.
            (3) Summons.--
                    (A) In general.--The Secretary may issue a summons 
                with respect to an applicant or licensee necessary to 
                carry out the provisions of this title.
                    (B) Production at designated site.--A summons 
                issued by the Secretary pursuant to this paragraph may 
                require that books, papers, records, or other data 
                stored or maintained at any place be produced at any--
                            (i) business location of a licensee or 
                        applicant for a license;
                            (ii) designated location in the State or 
                        Indian lands of the applicable qualified body; 
                        or
                            (iii) designated location in the District 
                        of Columbia.
                    (C) No liability for expenses.--The Secretary shall 
                not be liable for any expense incurred in connection 
                with the production of books, papers, records, or other 
                data under this paragraph.
                    (D) Service of summons.--Service of a summons 
                issued under this subsection may be by registered mail 
                or in such other manner calculated to give actual 
                notice as determined by the Secretary.
                    (E) Authorization to invoke aid of courts.--The 
                Secretary may invoke the aid of any court of the United 
                States to compel compliance with the summons within the 
                jurisdiction of which--
                            (i) the investigation which gave rise to 
                        the summons or the examination is being or has 
                        been carried on;
                            (ii) the person summoned is an inhabitant; 
                        or
                            (iii) the person summoned carries on 
                        business or may be found.
                    (F) Power of courts to compel appearance.--The 
                court may issue an order requiring the person summoned 
                to appear before the Secretary--
                            (i) to produce books, papers, records, and 
                        other data;
                            (ii) to give testimony as may be necessary 
                        to explain how such material was compiled and 
                        maintained;
                            (iii) to allow the Secretary to examine the 
                        business of a licensee; and
                            (iv) to pay the costs of the proceeding.
                    (G) Contumacy or refusal.--Any failure to obey the 
                order of the court under this paragraph may be punished 
                by the court as a contempt thereof. All process in any 
                case under this subsection may be served in any 
                judicial district in which such person may be found.
    (l) Disciplinary Action.--
            (1) In general.--A licensee may be subject to disciplinary 
        action, including the imposition of civil penalties or 
        suspension or revocation of its license, by a qualified body 
        that issued a license to the licensee or by the Secretary if 
        the licensee fails to comply with any provision of this title, 
        any regulation prescribed thereunder, or any other applicable 
        provision of State or tribal law.
            (2) Initiating agency.--Only the Secretary or the qualified 
        body which granted the license to a licensee may initiate 
        disciplinary action under this title against the licensee.
            (3) Savings provision.--Nothing in this subsection shall be 
        construed to limit or alter the application of any law other 
        than this title to a licensee or affiliated person, or to 
        effect the enforcement of such law by the appropriate law 
        enforcement administrative, or regulatory entity.
            (4) Disciplinary procedures.--
                    (A) In general.--A qualified body shall commence 
                disciplinary action under this subsection against a 
                licensee upon service of a formal written complaint 
                upon the licensee, with a copy forwarded to the 
                Secretary, that sets forth the grounds for the 
                disciplinary action and the proposed penalty that is 
                being sought, which may include any or all of the 
                imposition of a fine as provided pursuant to subsection 
                (m)(1) or limitation, condition, suspension or 
                revocation of the license.
                    (B) In accordance with law of jurisdiction of 
                qualified body.--The process for disciplinary action 
                under this subsection shall proceed according to the 
                law of the jurisdiction of the applicable qualified 
                body.
            (5) Finality of action and appeals.--
                    (A) Finality.--Any disciplinary action under this 
                subsection shall be treated as a final action.
                    (B) Action by qualified bodies.--A licensee 
                aggrieved by disciplinary action under this subsection 
                by a qualified body may file an appeal in the 
                jurisdiction where the qualified body taking such 
                action is located only to the extent permitted by the 
                law of such jurisdiction, or in Federal court as 
                authorized by Federal law.
            (6) Pending appeal.--During the period in which a 
        suspension or revocation of an existing license is being 
        challenged through a pending judicial proceeding, the court 
        handling the challenge may allow the licensee to continue 
        offering bets and wagers in full compliance with the terms of 
        its existing license and any other conditions the court 
        considers necessary, if the court determines that--
                    (A) the appellant has a reasonable likelihood of 
                success on the merits; and
                    (B) allowing the appellant to continue offering 
                bets and wagers while the appeal is pending will not 
                threaten the public interest.
            (7) Return of customer funds.--If a licensee's license is 
        revoked and no appeal pursuant to paragraph (5) is pending, the 
        licensee shall--
                    (A) to the degree feasible, return all customer 
                funds to United States customers in an orderly manner 
                not later than 30 days after the date of the revocation 
                of the license; and
                    (B) place in escrow those sums return of which to 
                United States customers is not feasible due to change 
                in customer address, bank details, or similar 
                difficulty in an account with a financial institution 
                in the United States for safekeeping and orderly 
                disposition by the Secretary.
            (8) Referral to attorney general.--If, in the course of 
        carrying out the provisions of this title, the Secretary or a 
        qualified body finds a substantial basis to believe that a 
        person has violated section 103(a), the Secretary or qualified 
        body shall refer such matter to the Attorney General.
    (m) Civil Monetary Penalties.--
            (1) In general.--
                    (A) Penalties assessed by qualified bodies.--A 
                qualified body may assess upon any licensee or other 
                person subject to the requirements of this title for 
                each violation of this title or any regulation 
                prescribed or order issued under this title, a civil 
                penalty of not more than the greater of--
                            (i) the amount involved in the violation, 
                        if any;
                            (ii) $250,000 for an individual and 
                        $750,000 for a corporation; or
                            (iii) such other amount as provided under 
                        the applicable State or tribal law of the 
                        qualified body.
                    (B) Penalties assessed by secretary.--The Secretary 
                may assess upon any licensee or other person subject to 
                the requirements of this title for each violation of 
                this title or any regulation prescribed or order issued 
                under this title, a civil penalty of not more than the 
                greater of--
                            (i) the amount involved in the violation, 
                        if any; or
                            (ii) $250,000 for an individual and 
                        $750,000 for a corporation.
                    (C) Not cumulative.--
                            (i) In general.--The penalties authorized 
                        under subparagraphs (A) and (B) shall not be 
                        cumulative and only one such penalty may be 
                        assessed per violation.
                            (ii) Construction.--Clause (i) shall not be 
                        construed to limit the authority of a 
                        qualifying body or the Secretary, as the case 
                        may be, to pursue a civil penalty for each 
                        violation of a related series of violations.
                    (D) Failure to obtain a license.--Notwithstanding 
                any other provision of law, the Secretary shall assess 
                upon a person that is required to maintain a license 
                under this title, but fails to maintain a license under 
                this title, a civil penalty of not more than the 
                greater of--
                            (i) the amount of bets or wagers taken by 
                        the person from players in the United States 
                        during the period that a license was needed but 
                        not held by the person; or
                            (ii) $1,000,000 per day that the person 
                        accepts bets or wagers from players in the 
                        United States during the period that a license 
                        was needed but not held by the person.
                    (E) Construction.--Nothing in this paragraph shall 
                be construed to affect the ability of a law enforcement 
                official to seek criminal penalties against a person.
            (2) Assessment.--
                    (A) Enforcement by qualified bodies.--Qualified 
                bodies and such other entities as are authorized by 
                applicable State or tribal law shall enforce the 
                provisions of this title under the law of the 
                applicable State or Indian tribe, and penalties shall 
                be determined, reviewable, collectable, and disposed of 
                as provided under such law.
                    (B) Enforcement by secretary.--
                            (i) Written notice.--Any penalty imposed 
                        under paragraph (1)(B) shall be assessed and 
                        collected by the Secretary by written notice.
                            (ii) Finality of assessment.--If, with 
                        respect to any assessment under paragraph 
                        (1)(B), a hearing is not requested pursuant to 
                        clause (v) within the period of time allowed 
                        under such clause, the assessment shall 
                        constitute a final agency order.
                            (iii) Authority to modify or remit 
                        penalty.--The Secretary may compromise, modify, 
                        or remit any penalty which the Secretary may 
                        assess or has already assessed under paragraph 
                        (1)(B).
                            (iv) Mitigating factors.--In determining 
                        the amount of any penalty imposed under 
                        paragraph (1)(B), the Secretary shall take into 
                        account the appropriateness of the penalty with 
                        respect to the following:
                                    (I) The size of the financial 
                                resources and the good faith of the 
                                person against whom the penalty is 
                                assessed.
                                    (II) The gravity of the violation.
                                    (III) The history of previous 
                                violations.
                                    (IV) Such other matters as justice 
                                may require.
                            (v) Hearing.--The person against whom any 
                        penalty is assessed under paragraph (1)(B) 
                        shall be afforded a hearing by the Secretary if 
                        such person submits to the Secretary a request 
                        for such hearing not later than 20 days after 
                        the date of the issuance of the notice of 
                        assessment.
                            (vi) Collection.--
                                    (I) Referral.--If any person fails 
                                to pay an assessment after any penalty 
                                assessed under this subparagraph has 
                                become final, the Secretary shall 
                                recover the amount assessed by action 
                                in the appropriate United States 
                                district court.
                                    (II) Scope of review.--In any civil 
                                action under subclause (I), the 
                                validity and appropriateness of the 
                                penalty shall be subject to review for 
                                abuse of agency discretion.
                            (vii) Disbursement.--All penalties 
                        collected under authority of paragraph (1)(B) 
                        shall be deposited into the Treasury of the 
                        United States.
            (3) Condition for licensure.--Payment by a licensee of any 
        civil penalty assessed under this subsection that has become 
        final shall be a requirement for the retention of its license.
    (n) List of Licensed Internet Gambling Facilities.--The Secretary 
shall establish and maintain a list of all Internet gambling facilities 
licensed under this section. The Secretary shall update such list 
regularly and make such list publicly available on an Internet website.

SEC. 107. COMPULSIVE GAMING, RESPONSIBLE GAMING, AND SELF-EXCLUSION 
              PROGRAM REQUIREMENTS.

    (a) Regulations Required.--
            (1) In general.--Each qualified body shall, before issuing 
        any licenses under this title, prescribe regulations for the 
        development of a Compulsive Gaming, Responsible Gaming, and 
        Self-Exclusion Program that each licensee of that qualified 
        body shall implement as a condition of licensure.
            (2) Outreach.--The regulations required by paragraph (1) 
        shall also provide for the establishment of a program to alert 
        the public to the existence, consequences, and availability of 
        the self-exclusion list established under subsection (c).
    (b) Minimum Requirements.--Under each program under subsection (a), 
a licensee shall, under the scope of the license issued the licensee 
under this title, at a minimum--
            (1) provide informational materials written in plain 
        language about responsible gaming, including information about 
        the self-exclusion list established under subsection (c) and 
        how a player may request placement on the list, each time a 
        player signs in to make a bet or wager, which materials shall 
        be provided via a prominently displayed hyperlink or comparable 
        mechanism;
            (2) provide informational materials about responsible 
        gaming to any player that requests such materials;
            (3) make continuously available individualized responsible 
        gaming options that any customer may choose, including allowing 
        customers to self-limit deposits amounts, frequency of play, 
        and losses, as well as their access to the issuance of credit, 
        check cashing, or direct mail marketing by the licensee, in 
        each case as and to the extent that the qualified body may 
        consider appropriate;
            (4) ensure to a reasonable degree of certainty that persons 
        on the list of self-excluded persons established pursuant to 
        subsection (c) are prevented from initiating any bets or wagers 
        within the scope of this title; and
            (5) ensure that the information required under this 
        subsection is clearly and prominently made available by the 
        licensee in each language in which services of the Internet 
        gambling facility of the licensee are offered.
    (c) List of Persons Self-Excluded.--
            (1) Establishment.--
                    (A) Lists maintained by qualified bodies.--
                            (i) In general.--Each qualified body shall 
                        establish and maintain a list of persons self-
                        excluded from playing Internet gambling through 
                        Internet gambling facilities licensed by the 
                        qualified body.
                            (ii) Submittal to secretary.--At the end of 
                        each day, each qualified body shall submit to 
                        the Secretary a current copy of the list 
                        established and maintained by the qualified 
                        body under clause (i).
                    (B) Master list maintained by secretary.--
                            (i) In general.--The Secretary shall 
                        establish and maintain a master list of all 
                        persons self-excluded from playing Internet 
                        gambling through Internet gambling facilities 
                        licensed under this title. Such list shall 
                        consist of all persons submitted under 
                        subparagraph (A)(ii).
                            (ii) Availability.--The Secretary shall 
                        make the master list established and maintained 
                        under clause (i) available to all qualified 
                        bodies and licensees on an ongoing basis and 
                        licensees shall ensure to a reasonable degree 
                        of certainty that persons on the master list of 
                        self-excluded persons are prevented from 
                        initiating any bets or wagers within the scope 
                        of this title.
                            (iii) Sharing of information.--(I) 
                        Notwithstanding any other provision of law, 
                        qualified bodies and licensees may share 
                        information relating to persons on the master 
                        list among one another and with other 
                        regulators, whether Federal, State, tribal, 
                        local, or foreign, for the purpose of 
                        facilitating the prevention of self-excluded 
                        persons from initiating any bets or wagers 
                        within the scope of this title.
                            (II) The Secretary shall establish 
                        appropriate safeguards for the purpose of 
                        protecting the confidentiality of any personal 
                        information shared pursuant to this clause, to 
                        prevent the disclosure of such information to 
                        unauthorized persons or for any purpose other 
                        than facilitating the prevention of self-
                        excluded persons from initiating any bets or 
                        wagers within the scope of this title.
                    (C) Placement request.--Any person may request 
                placement on the list of self- excluded persons by--
                            (i) acknowledging in a manner to be 
                        established by each qualified body with respect 
                        to its licensees that the person wishes to be 
                        denied gaming privileges within the scope of 
                        this title; and
                            (ii) agreeing that, during any period of 
                        voluntary exclusion, the person may not 
                        participate in Internet gambling or collect any 
                        winnings or recover any losses resulting from 
                        any gaming activity at any Internet gambling 
                        facility of a licensee.
            (2) Limitation on liability.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the United States, the Secretary, a qualified 
                body, the State or Indian tribe in which that qualified 
                body is located, an enforcement agent, licensee, or any 
                employee or agent thereof, shall not be liable to any 
                self-excluded person or to any other party in any 
                judicial or administrative proceeding for any harm, 
                monetary or otherwise, which may arise as a result of--
                            (i) any failure to withhold gaming 
                        privileges from, or to restore gaming 
                        privileges to, a self-excluded person;
                            (ii) otherwise permitting a self-excluded 
                        person to engage in gaming activity while on 
                        the list of self-excluded persons; or
                            (iii) disclosure to licensees, significant 
                        vendors, or employees or agents of licensees or 
                        significant vendors of the fact that an 
                        individual has been placed on the list of self-
                        excluded persons and of other information that 
                        is reasonably necessary to identify that 
                        individual in order to carry out this 
                        subsection, including the address, date of 
                        birth, and taxpayer identification number of 
                        the individual.
                    (B) Licensees.--A licensee or employee or agent 
                thereof may be liable to a self- excluded person in a 
                judicial or administrative proceeding for a harm 
                described in subparagraph (A) to the extent provided 
                under the law of the State or Indian tribe of the 
                qualified body that issued the license.
                    (C) Rule of construction.--Nothing in this 
                paragraph shall be construed to prevent the Secretary 
                or a qualified body from assessing a regulatory 
                sanction against a licensee or person for failing to 
                comply with a provision of this section or a regulation 
                prescribed thereunder or for misuse of any list of 
                self-excluded persons for purposes not authorized under 
                this section.
            (3) Disclosure provisions.--
                    (A) In general.--Notwithstanding any other 
                provision of Federal, State, or tribal law, the list of 
                self-excluded persons shall not be open to public 
                inspection.
                    (B) Affiliate disclosure.--If necessary to 
                effectuate the self-exclusion purposes of this 
                subsection, any licensee may disclose the identities of 
                persons on the self- excluded list to any significant 
                vendor, service provider, or affiliated company to the 
                extent that the significant vendor, service provider, 
                or affiliated company maintains such information under 
                confidentiality provisions comparable to those in this 
                subsection.
    (d) Gaming by Prohibited Persons.--
            (1) Prohibition on benefitting from prohibited gaming 
        activity.--A person who is prohibited from gaming with a 
        licensee by law, or by order of the Secretary, a qualified 
        body, or any court of competent jurisdiction, including any 
        person on the self-exclusion list under subsection (c), shall 
        not collect, in any manner or proceeding, any winnings or 
        recover any losses arising as a result of prohibited gaming 
        activity with a licensee.
            (2) Forfeiture.--In addition to any other penalty provided 
        by law, any money or thing of value that has been obtained by, 
        or is owed to, any prohibited person by a licensee as a result 
        of bets or wagers made by a prohibited person while the 
        applicable prohibition is effective shall be subject to 
        forfeiture by order of the Secretary or a qualified body, 
        following notice to the prohibited person and opportunity to be 
        heard.
            (3) Deposit of forfeited funds.--Any funds forfeited 
        pursuant to this subsection shall be deposited into the 
        Treasury of the United States, or, in the case of a forfeiture 
        to a qualified body, as provided by the applicable State or 
        tribal law.
    (e) Administrative Provisions.--
            (1) No duty to identify or exclude compulsive players not 
        on list.--No provision of this section shall be construed as 
        creating a legal duty in the Secretary, a qualified body, a 
        licensee, or any employee or agent thereof to identify or to 
        exclude compulsive players not on the list of self-excluded 
        persons.
            (2) No cause of action.--The Secretary, a qualified body, a 
        licensee, and any employee or agent thereof, shall not be 
        liable to any person in any proceeding for losses or other 
        damages of any kind arising out of that person's gaming 
        activities based on a claim that the person was a compulsive, 
        problem, or pathological player.
            (3) No private right of action.--Nothing in this section 
        shall be construed to create a private right of action.

SEC. 108. PROHIBITION ON USE OF LICENSES IN CERTAIN STATES AND INDIAN 
              LANDS.

    (a) In General.--Internet gambling provided by Internet gambling 
facilities licensed under this title shall be lawful in the United 
States only with respect to the acceptance of bets or wagers from 
individuals located in States and Indian lands that have opted-in under 
this section.
    (b) State Participation.--
            (1) Opt-in election.--A State shall be considered to have 
        opted-in under this section if its Governor or any other person 
        authorized to make such notification under the laws of such 
        State has not notified the Secretary within 120 days of 
        enactment that--
                    (A) Internet gambling is prohibited in such State, 
                or
                    (B) the State declines to participate in Internet 
                gambling authorized under this Act.
            (2) Opt-out election.--A State shall be considered not to 
        have opted-in under this section if--
                    (A) a majority of a quorum of each chamber of the 
                legislature of the State has approved a bill, 
                resolution, or similar measure that expresses that bets 
                or wagers authorized under this title should be 
                prohibited in such State; and
                    (B) such bill, resolution, or similar measure is 
                the most recent bill, resolution, or similar measure 
                approved by a majority of a quorum of each chamber of 
                the legislature of the State that expresses whether 
                bets or wagers authorized under this title should be 
                prohibited in such State.
            (3) Limitation on state participation.--Notwithstanding any 
        other provision of law, for purposes of determining whether a 
        State has opted-in under this section, neither the Secretary 
        nor any provision of State law may require a State to undertake 
        any additional or different procedures than those specified in 
        paragraphs (1) and (2).
            (4) Effective date of changes.--If a State changes its 
        election to participate or not to participate under paragraph 
        (1) or (2), such change shall apply, for purposes of this 
        title, beginning on the later of--
                    (A) 60 days after the date of the notification to 
                the Secretary by the Governor any other person 
                authorized under the laws of such State that the State 
                has changed its election to participate or not; or
                    (B) the effective date specified in any bill, 
                resolution, or similar measure determining the 
                participation of the State in Internet gambling under 
                the laws of such State.
    (c) Indian Tribe Notice and Participation.--
            (1) Opt-in election.--Except as provided in paragraphs (3) 
        and (4), an Indian tribe shall be considered to have opted-in 
        under this section if the principal chief or other chief 
        executive officer or designated authority of such Indian tribe 
        has not notified the Secretary within 120 days of enactment 
        that--
                    (A) Internet gambling is prohibited by such Indian 
                tribe, or
                    (B) the Indian tribe declines to participate in 
                Internet gambling authorized under this Act.
            (2) Opt-out election.--Except as provided in paragraph (3) 
        and subsection (d), an Indian tribe shall be considered not to 
        have opted-in under this section if the principal chief or 
        other chief executive officer or designated authority of such 
        Indian tribe submits written notice to the Secretary that bets 
        or wagers otherwise authorized under this title should be 
        prohibited on the Indian lands of such Indian tribe.
            (3) Subsequent change of election.--
                    (A) Notice of change.--Except as provided in 
                paragraph (4), in a case in which the principal chief 
                or other chief executive officer or designated 
                authority of an Indian tribe has submitted notice under 
                paragraph (1) or (2) to opt-in or opt-out, 
                respectively, such Indian tribe may change its election 
                at any time under this subsection if the principal 
                chief or other chief executive officer or designated 
                authority of such Indian tribe submits to the Secretary 
                a written notice indicating such change.
                    (B) Status.--An Indian tribe that submits notice 
                under subparagraph (A) shall be considered--
                            (i) to have opted-in under this section if 
                        the most recent notice submitted under such 
                        subparagraph indicates that bets or wagers 
                        authorized under this title should not be 
                        prohibited on the Indian lands of such Indian 
                        tribe; and
                            (ii) not to have opted-in under this 
                        section if such notice indicates that bets or 
                        wagers authorized under this title should be 
                        prohibited on the Indian lands of such Indian 
                        tribe.
                    (C) Effective date.--A change in election under 
                this paragraph shall apply, for purposes of this title, 
                beginning on the later of--
                            (i) 60 days after the date the most recent 
                        notice is submitted under subparagraph (A); or
                            (ii) the effective date specified in such 
                        notice.
            (4) Indian lands located in states that have opted-out.--
        The decision of a State to opt-in or opt-out shall have no 
        effect on Internet gambling in the lands of an Indian tribe 
        located within a State, which shall be governed solely by 
        determinations made by the Indian tribe, as communicated to the 
        Secretary by the principal chief or other chief executive 
        officer or designated authority of an Indian tribe.
    (d) Prohibition on Unlicensed Bets or Wagers.--
            (1) In general.--Except as expressly authorized in this 
        title, no State or Indian tribe may authorize or operate a 
        facility that offers Internet gambling unless the Internet 
        gambling facility is authorized and licensed by that State or 
        Indian tribe in compliance with the law of that State or Indian 
        tribe, as applicable, and solely provides services to 
        participants wholly within the boundaries of such State or the 
        Indian lands of such Indian tribe..
            (2) Limitation.--The prohibition set out in paragraph (1) 
        shall not apply to any bet or wager authorized pursuant to a 
        State or tribal law enacted or authorized by a license issued 
        pursuant to this title.
    (e) Notification and Enforcement of State and Indian Tribe 
Prohibitions.--
            (1) In general.--The Secretary shall notify qualified 
        bodies, all licensees, and applicants of all States and Indian 
        tribes that are considered to have opted-in under this section, 
        promptly upon receipt of any notice received under subsection 
        (b) or (c) and not fewer than 30 days before the effective date 
        of such notice.
            (2) Violations.--It shall be a violation of this title for 
        any licensee to accept a bet or wager initiated or otherwise 
        made by a person who the licensee knows is located at the time 
        of placing such bet or wager within any State or on the Indian 
        lands of any Indian tribe which is not considered to have 
        opted-in under this section.
            (3) State attorney general enforcement.--In any case in 
        which the attorney general of a State or any State or local law 
        enforcement agency, authorized by the attorney general of the 
        State or by State statute to prosecute violations of consumer 
        protection law, has reason to believe that an interest of the 
        residents of that State has been or is threatened or adversely 
        affected by a violation by a licensee under paragraph (2), the 
        State, or the State or local law enforcement agency, may bring 
        a civil action on behalf of the residents of that State or 
        jurisdiction in a district court of the United States located 
        therein--
                    (A) to enjoin that practice; or
                    (B) to enforce compliance with this section.
            (4) Indian tribe enforcement.--In any case in which the 
        chief law enforcement officer of an Indian tribe or tribal law 
        enforcement agency, authorized by the chief law enforcement 
        officer of the Indian tribe or by tribal law to prosecute 
        violations of consumer protection law, has reason to believe 
        that an interest of the residents of the Indian lands within 
        the tribe's jurisdiction has been or is threatened or adversely 
        affected by a violation by a licensee under paragraph (2), the 
        Indian tribe, or the tribal law enforcement agency, may bring a 
        civil action on behalf of the residents of those Indian lands 
        in a district court of the United States located nearest to 
        those Indian lands--
                    (A) to enjoin that practice; or
                    (B) otherwise to enforce compliance with this 
                section.
    (f) No Impact on Indian Gaming Regulatory Act.--
            (1) In general.--No provision of this title or decision or 
        action taken by an Indian tribe or State pursuant thereto shall 
        have any effect on non-Internet gaming activities within the 
        scope of section 11 of the Indian Gaming Regulatory Act (25 
        U.S.C. 2710) or any successor provisions or on any Tribal-State 
        compacts or authorities pursuant thereto.
            (2) Tribal status or category not affected.--Tribal 
        operation of Internet gambling facilities under this title 
        shall not be considered class II or class III gaming under such 
        section, and an Indian tribe's status, category, or class under 
        such section shall not impact its status or ability to offer 
        bets or wagers pursuant to this title.
            (3) New negotiations not required.--
                    (A) Indian tribes.--The fact that an Indian tribe 
                is operating under a license issued under this title or 
                that a tribal regulatory body is acting as a qualified 
                body under this title shall not require an Indian tribe 
                to negotiate a new agreement, limitation, or other 
                provision of tribal-State compact, agreement, or other 
                understanding with respect to gaming or revenue-
                sharing, with regard to any bet or wager occurring 
                pursuant to a license issued under this title.
                    (B) States.--The fact that a State has opted in 
                under this section or that a State regulatory body is 
                acting as a qualified body under this title shall not 
                require the State to negotiate a new agreement, 
                limitation, or other provision of tribal-State compact, 
                agreement, or other understanding with respect to 
                gaming or revenue-sharing, with regard to any bet or 
                wager occurring pursuant to a license issued under this 
                title.
    (g) No Impact on Activities Carried Out Solely Within a State or 
Within Tribal Lands.--No provision of this title shall have any effect 
on Internet gaming activities that are authorized and licensed by that 
State or Indian tribe (as the case may be) in compliance with the law 
of that State or Indian tribe as of the date before the date of the 
enactment of this Act, as applicable, and that solely provide services 
to participants wholly within the boundaries of that State or the 
Indian lands of that Indian tribe.

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

    (a) In General.--No provision of this title shall be construed to 
authorize any licensee to accept a bet or wager on any sporting event 
in violation of any applicable provision of Federal or State law.
    (b) Construction.--Nothing in this title shall be construed to 
repeal or amend any provision of Federal or State law prohibiting, 
restricting, or otherwise addressing bets or wagers on sporting events, 
including provisions of Federal and State law that permit participation 
in any fantasy or simulation sports games.

SEC. 110. PUBLIC INTERNET GAMBLING AND INTERNET GAMBLING PARLORS 
              PROHIBITED.

    (a) In General.--It shall be considered a violation of this title 
to operate a place of public accommodation, club (including a club or 
association limited to dues-paying members or similar restricted 
groups), or similar establishment in which computer terminals or 
similar access devices are made available to be used principally for 
the purpose of accessing Internet gambling facilities.
    (b) Criminal Penalties.--Any person who violates subsection (a) 
shall be fined under title 18, United States Code, imprisoned for not 
more than 5 years, or both.
    (c) Construction.--Nothing in this title shall be construed to 
authorize or otherwise to permit the operation of places of public 
accommodation, clubs (including clubs or associations limited to dues-
paying members or similar restricted groups) and similar establishments 
that permit access to Internet gambling facilities.
    (d) Relation to State, Local, and Tribal Law.--Places of public 
accommodation, clubs, or similar establishments described in subsection 
(c) shall be subject to all otherwise applicable State, local, and 
tribal police, criminal, zoning, and other regulatory powers which are 
not intended to be limited in any way by this title.

SEC. 111. SAFE HARBOR.

    It shall be an affirmative defense to any prosecution or 
enforcement action under any provision of Federal, State, or tribal law 
that the activity forming the basis of such prosecution or enforcement 
action is authorized under and has been carried out lawfully in 
accordance with and under the terms of this title.

SEC. 112. CHEATING AND OTHER FRAUD.

    (a) Cheating and Cheating Devices Prohibited.--
            (1) Cheating prohibited.--No person initiating, receiving, 
        or otherwise making a bet or wager with a licensee, or sending, 
        receiving, or inviting information assisting with a bet or 
        wager with a licensee shall knowingly violate, attempt to 
        violate, or assist another in violating the rules of play 
        established by the licensee for the purpose of obtaining 
        prohibited or unfair advantage in any game authorized under 
        this title.
            (2) Cheating devices.--Except as provided in paragraph (3), 
        no person initiating, receiving, or otherwise making a bet or 
        wager with a licensee, or sending, receiving, or inviting 
        information assisting with a bet or wager with a licensee shall 
        knowingly use, possess, or assist another in the use of, an 
        electronic, electrical, or mechanical device or software or 
        other program or tool which is designed, constructed, or 
        programmed specifically for use in obtaining an advantage in 
        any game authorized under this title, where such advantage is 
        prohibited or otherwise violates the rules of play established 
        by the licensee.
            (3) Permissible uses.--It shall not be a violation of this 
        subsection for a licensee, its agents, a qualified body, or its 
        agents to use or possess a device described in the preceding 
        sentence if--
                    (A) such use or possession is solely for purposes 
                of testing an Internet gambling facility;
                    (B) such device is not used in live play involving 
                actual bets or wagers; and
                    (C) such device is registered with the qualified 
                body that issued the applicable license.
            (4) Disclosure to public not required.--Notwithstanding any 
        other provision of law, a registration under paragraph (3)(C) 
        is not required to be made available to the public.
    (b) Additional Offense.--
            (1) In general.--Except as provided in paragraph (3), no 
        person initiating, receiving, or otherwise making a bet or 
        wager with a licensee, or sending, receiving, or inviting 
        information assisting with a bet or wager with a licensee, 
        shall knowingly use, possess, or assist another in the use of 
        any cheating device with intent to cheat or defraud any 
        licensee or other persons placing bets or wagers with such 
        licensee.
            (2) Bots.--A software program that makes bets or wagers 
        according to an algorithm shall constitute a type of cheating 
        device under this subsection.
            (3) Permissible uses.--It shall not be a violation of this 
        subsection for a licensee, its agents, a qualified body, or its 
        agent to use or possess a device described in paragraph (1) or 
        (2) if--
                    (A) such use or possession is solely for purposes 
                of testing an Internet gambling facility;
                    (B) such device is not used in live play involving 
                actual bets or wagers; and
                    (C) such device is registered with the qualified 
                body that issued the applicable license.
            (4) Disclosure to public not required.--Notwithstanding any 
        other provision of law, a registration under paragraph (3)(C) 
        is not required to be made available to the public.
    (c) Criminal Penalty.--Whoever violates subsection (a) or (b) shall 
be fined under title 18, United States Code, imprisoned for not more 
than 3 years, or both.
    (d) Permanent Injunction.--Upon conviction of a person for 
violation of this section, the court may enter a permanent injunction 
enjoining such person from initiating, receiving, or otherwise making 
bets or wagers or sending, receiving, or inviting information assisting 
in the placing of bets or wagers.
    (e) Report on Threats to Operation of Internet Gambling 
Facilities.--
            (1) In general.--Not later than 1 year after the date of 
        first issuance specified in section 114(a), the Director of the 
        National Institute of Standards and Technology shall submit to 
        Congress a report on threats to the integrity of Internet 
        gambling facilities operated by licensees.
            (2) Elements.--The report required by paragraph (1) shall 
        include the following:
                    (A) Identification of threats to the integrity of 
                Internet gambling facilities operated by licensees.
                    (B) Identification of technologies that could be 
                used to hack computer networks, facilitate cheating, or 
                otherwise place consumers at risk of fraud or monetary 
                loss.
                    (C) An evaluation of steps taken by Internet 
                gambling facilities licensed under this title to 
                respond to the threats identified pursuant to 
                subparagraph (A).
                    (D) Recommendations for such measures as the 
                Director considers appropriate to deal with the threats 
                identified pursuant subparagraph (A).

SEC. 113. CONSTRUCTION AND RELATION TO OTHER LAW.

    (a) No Impact on Existing Lawful Games.--
            (1) In general.--If bets or wagers on certain games of 
        skill that are not Internet gambling are not regarded as 
        gambling or otherwise prohibited under all provisions of 
        Federal, applicable State, or tribal law--
                    (A) nothing in this title shall be construed to 
                require licensing under this title with respect to such 
                games; and
                    (B) fees paid to participate in such games shall 
                not be regarded as bets or wagers for purposes of this 
                title.
            (2) Reliance.--Nothing in this title may be relied on as 
        support for the legality or permissibility of any games without 
        compliance with the licensing and other requirements of this 
        title.
    (b) Preemption of State and Tribal Laws.--
            (1) In general.--Except as otherwise expressly provided in 
        this title, the provisions of this title shall supersede any 
        provisions of the law of any State or Indian tribe expressly 
        relating to the permitting, prohibiting, licensing, or 
        regulating of Internet gambling facilities and the law of any 
        State or Indian tribe expressly relating to the authorization, 
        prohibiting, licensing, expansion, or regulation of gambling, 
        except to the extent such State or tribal laws are not 
        inconsistent with this title.
            (2) Savings provision.--Nothing in this title may be 
        construed to limit the applicability or enforcement of any 
        State or tribal consumer protection law of general 
        applicability or preempt the applicability of State or tribal 
        trespass, contract, or tort law.
    (c) Relation to Gambling Devices Transportation Act.--Equipment 
used by a licensee or significant vendor in the furtherance of licensed 
activities pursuant to this title (but not to the extent it is used for 
other purposes) shall not be considered a gambling device within the 
meaning of section 1 of the Act of January 2, 1951, prohibiting the 
transportation of gambling devices in interstate and foreign commerce 
(15 U.S.C. 1171).
    (d) Exemptions From Subchapter Iv of Chapter 53 of Title 31, United 
States Code.--Subchapter IV of chapter 53 of title 31, United States 
Code, is amended by adding at the end the following:
``Sec. 5368. Inapplicability to certain gaming and wagers
    ``The provisions of this subchapter--
            ``(1) restricting acceptance of bets or wagers made by 
        individuals located in the United States or requiring the 
        blocking or other prevention of restricted transactions shall 
        not apply with respect to the placing, transmitting, or 
        receiving of interstate off-track wagers, as such term is 
        defined in section 3 of the Interstate horseracing Act of 1978 
        (15 U.S.C. 3002), that are permissible under such Act (15 
        U.S.C. 3001 et seq.), whether such off-track wager is made by 
        telephone, Internet, satellite, or other wire or wireless 
        communication facility, service, or medium; and
            ``(2) shall not apply to any bet or wager--
                    ``(A) occurring pursuant to a license issued under 
                title I of the Internet Gambling Regulation, 
                Enforcement, and Consumer Protection Act of 2013, 
                subject to section 109 of that Act;
                    ``(B) that is permissible under the Interstate 
                horseracing Act of 1978 (15 U.S.C. 3001 et seq.); or
                    ``(C) is the purchase of a chance or opportunity to 
                win a lottery or other prize--
                            ``(i) which opportunity to win is 
                        predominantly subject to chance; and
                            ``(ii) which is authorized by a State or 
                        Indian tribe wholly within its borders.''.
    (e) Inapplicability of Certain Provisions to Interstate Off-track 
Wagers.--The provisions of this title requiring a license shall not 
apply with respect to the placing, transmitting, or receiving of 
interstate off-track wagers, as such term is defined in section 3 of 
the Interstate horseracing Act of 1978 (15 U.S.C. 3002), that are 
permissible under such Act (15 U.S.C. 3001 et seq.), whether such off-
track wager is made by telephone, Internet, satellite, or other wire or 
wireless communication facility, service, or medium.
    (f) Wire Act Amendments.--
            (1) Definitions.--Section 1081 of title 18, United States 
        Code, is amended--
                    (A) by designating the five undesignated paragraphs 
                as paragraphs (1) through (5), respectively;
                    (B) in paragraph (2), as so designated by 
                subparagraph (A), by striking ``value.'' and inserting 
                ``value, including any Internet gambling facility.'';
                    (C) by amending paragraph (5), as so designated by 
                subparagraph (A), to read as follows:
            ``(5) The term `communication facility' includes any 
        instrumentality, personnel, and services (including, the 
        receipt, forwarding, or delivery of communications) used in the 
        transmission of a writing, sign, picture, or sound of any kind 
        by aid of wire, cable, radio, or an electromagnetic, 
        photoelectronic, or photooptical system, or other like 
        connection (whether fixed or mobile) between the points of 
        origin and reception of such transmission.''; and
                    (D) by adding at the end the following:
            ``(6) The term `bet or wager' has the meaning given the 
        term in section 102 of the Internet Gambling Regulation, 
        Enforcement, and Consumer Protection Act of 2013.
            ``(7) The term `Internet' means the international computer 
        network of interoperable packet switched data networks.
            ``(8) The term `Internet gambling facility' has the same 
        meaning given the term in section 102 of the Internet Gambling 
        Regulation, Enforcement, and Consumer Protection Act of 2013.
            ``(9) The terms `financial transaction provider' and 
        `insured depository institution' have the meanings given those 
        terms in section 5362 of title 31, United States Code.
            ``(10) The term `gambling business' means a business of 
        betting or wagering.
            ``(11) The terms `own or control' and `owned or controlled' 
        include circumstances within the meaning of section 2(a)(2) of 
        the Bank Holding Company Act of 1956 (12 U.S.C. 1841(a)(2)).''.
            (2) Modification of existing prohibition.--Section 1084 of 
        title 18, United States Code, is amended to read as follows:
``Sec. 1084. Transmission of wagering information; penalties
    ``(a) Offense.--Except as otherwise provided in this section or in 
the Internet Gambling Regulation, Enforcement, and Consumer Protection 
Act of 2013, it shall be unlawful for a person that is engaged in a 
gambling business to knowingly use a communication facility for the 
transmission in interstate or foreign commerce, within the special 
maritime and territorial jurisdiction of the United States, or to or 
from any place outside the jurisdiction of any country with respect to 
any transmission to or from the United States, of--
            ``(1) bets or wagers;
            ``(2) information assisting in the placing of bets or 
        wagers; or
            ``(3) a communication, which entitles the recipient to 
        receive money or credit as a result of bets or wagers, or for 
        information assisting in the placing of bets or wagers.
    ``(b) Penalty.--Any person who violates subsection (a) shall be 
fined under this title, imprisoned for not more than 5 years, or both.
    ``(c) Transmission in Interstate or Foreign Commerce.--Except as 
otherwise provided in this section, the transmission of bets or wagers, 
information assisting in the placing of bets or wagers, or a 
communication which entitles the recipient to receive money or credit 
as a result of bets or wagers, or for information assisting in the 
placing of bets or wagers shall be considered a transmission in 
interstate or foreign commerce subject to this section if such 
transmission involved the use, in some part, of the Internet.
    ``(d) Rules of Construction.--Nothing in this section shall be 
construed to--
            ``(1) prohibit--
                    ``(A) the transmission of information assisting in 
                the placing of bets or wagers for use in news reporting 
                if such transmission does not solicit or provide 
                information for the purpose of facilitating or enabling 
                the placing or receipt of bets or wagers;
                    ``(B) the interstate transmission of information 
                relating to a State-specific lottery between a State or 
                foreign country where such betting or wagering is 
                permitted under Federal, State, tribal, or local law 
                and an out-of-State data center for the purposes of 
                assisting in the operation of such State-specific 
                lottery; or
                    ``(C) a qualifying intrastate lottery transaction 
                (as defined in section 102 of the Internet Gambling 
                Regulation, Enforcement, and Consumer Protection Act of 
                2013;
                    ``(D) any authorized activity carried out in 
                connection with a license issued under the Internet 
                Gambling Regulation, Enforcement, and Consumer 
                Protection Act of 2013.
            ``(2) create immunity from criminal prosecution under any 
        laws of a State or tribe; or
            ``(3) authorize activity that is prohibited under chapter 
        178 of title 28.
    ``(e) Applicability.--This section shall not apply to any activity 
that is permissible under the Interstate horseracing Act of 1978 (15 
U.S.C. 3001 et seq.), or any activity that is permissible under title I 
of the Internet Gambling Regulation, Enforcement, and Consumer 
Protection Act of 2013.
    ``(f) Duty of Common Carrier.--
            ``(1) In general.--If a common carrier (as defined in 
        section 3 of the Communications Act of 1934 (47 U.S.C. 153)), 
        subject to the jurisdiction of the Federal Communications 
        Commission, is notified in writing by a Federal, State, tribal, 
        or local law enforcement agency, acting within the jurisdiction 
        of the law enforcement agency, that a communication facility 
        furnished by the common carrier is being used or will be used 
        by a subscriber of the common carrier for the purpose of 
        transmitting or receiving gambling information in interstate or 
        foreign commerce, within the special maritime and territorial 
        jurisdiction of the United States, or to or from any place 
        outside the jurisdiction of any country with respect to any 
        transmission to or from the United States in violation of 
        Federal, State, tribal, or local law, the common carrier shall 
        discontinue or refuse, the leasing, furnishing, or maintaining 
        of such facility, after reasonable notice to the subscriber.
            ``(2) Limitation on liability.--No damages, penalty, or 
        forfeiture, civil or criminal, shall be found against a common 
        carrier for any act done in compliance with any notice received 
        from a law enforcement agency.
            ``(3) Rule of construction.--Nothing in this subsection 
        shall be construed to prejudice the right of any person 
        affected to secure an appropriate determination, as otherwise 
        provided by law, in a Federal court or in a State, tribal, or 
        local tribunal or agency, that such facility should not be 
        discontinued or removed, or should be restored.
    ``(g) Exclusions.--This section, subchapter IV of chapter 53 of 
title 31, and any other provision of Federal law that establishes 
criminal penalties for any activity involved in placing, receiving or 
otherwise transmitting a bet or wager shall not apply to any bet or 
wager that--
            ``(1) is permissible under the Interstate horseracing Act 
        of 1978 (15 U.S.C. 3001 et seq.);
            ``(2) is an international off-track wager on horseracing, 
        or the combination of international horseracing pari-mutuel 
        wagering pools, that is lawful in the State or foreign 
        jurisdiction involved;
            ``(3) is permissible under the Prohibition of Internet 
        Gambling, Regulation, and Consumer Protection Act of 2013; or
            ``(4) is a qualifying intrastate lottery bet or wager as 
        defined in section 102 of the Act referred to in paragraph 
        (3).''.
            (3) Authorization of civil enforcement.--
                    (A) In general.--Chapter 50 of title 18, United 
                States Code, is amended by adding at the end the 
                following:
``Sec. 1085. Civil remedies
    ``(a) Jurisdiction.--The district courts of the United States (in 
addition to any other remedies under current law) shall have original 
and exclusive jurisdiction to prevent and restrain violations of 
section 1084 by issuing appropriate orders in accordance with this 
section, regardless of whether a prosecution has been initiated under 
section 1084.
    ``(b) Proceedings.--
            ``(1) Definition.--In this subsection, the term `account' 
        means--
                    ``(A) the unpaid balance of money or its equivalent 
                received or held by an insured depository institution 
                in the usual course of business and for which it has 
                given or is obligated to give credit, either 
                conditionally or unconditionally, to an account, 
                including interest credited, or which is evidenced by 
                an instrument on which the depository institution is 
                primarily liable; and
                    ``(B) money received or held by an insured 
                depository institution, or the credit given for money 
                or its equivalent received or held by the insured 
                depository institution in the usual course of business 
                for a special or specific purpose, regardless of the 
                legal relationships established thereby, including 
                escrow funds, funds held as security for securities 
                loaned by the depository institution, funds deposited 
                as advance payment on subscriptions to United States 
                Government securities, and funds held to meet its 
                acceptances.
            ``(2) Proceedings.--The United States may institute 
        proceedings under this section--
                    ``(A) to obtain injunctive or declarative relief, 
                including a temporary restraining order and a 
                preliminary injunction, against any person (other than 
                a financial transaction provider, except as provided in 
                paragraph (3)) to prevent or restrain a violation or a 
                threatened violation of section 1084;
                    ``(B) in the case of an insured depository 
                institution that is a financial transaction provider, 
                to--
                            ``(i) restrain an account maintained at 
                        such insured depository institution if such 
                        account is--
                                    ``(I) owned or controlled by a 
                                gambling business; and
                                    ``(II) includes proceeds of, or is 
                                used to facilitate a violation of 
                                section 1084; or
                            ``(ii) seize funds in an account described 
                        in clause (i) if such funds--
                                    ``(I) are owned or controlled by a 
                                gambling business; and
                                    ``(II) constitute the proceeds of, 
                                were derived from, or facilitated, a 
                                violation of section 1084.
            ``(3) Financial transaction providers.--The limitation in 
        paragraph (2)(A) shall not apply if the financial transaction 
        provider is a gambling business, in which case, such financial 
        transaction provider shall be subject to the enforcement 
        provisions under paragraph (2).
            ``(4) Injunctive proceedings.--
                    ``(A) In general.--The attorney general (or other 
                appropriate State official) of a State in which a 
                communication in violation of section 1084 allegedly 
                has been or will be initiated or received may institute 
                proceedings under this section to obtain injunctive or 
                declarative relief to prevent or restrain the violation 
                or threatened violation.
                    ``(B) Relief.--Upon application of the attorney 
                general (or other appropriate State official) of an 
                affected State under subparagraph (A), the district 
                court may enter a temporary restraining order, a 
                preliminary injunction, an injunction, or declaratory 
                relief against any person (other than a financial 
                transaction provider) to prevent or restrain a 
                violation or threatened violation of section 1084, in 
                accordance with rule 65 of the Federal Rules of Civil 
                Procedure.
            ``(5) Enforcement authority.--Notwithstanding paragraphs 
        (2) and (4), for a communication in violation of section 1084 
        that allegedly has been or will be initiated or received on 
        Indian lands (as that term is defined in section 4 of the 
        Indian Gaming Regulatory Act (25 U.S.C. 2703))--
                    ``(A) the United States shall have the enforcement 
                authority provided under paragraph (2);
                    ``(B) the enforcement authorities specified in an 
                applicable Tribal-State compact negotiated under 
                section 11 of the Indian Gaming Regulatory Act (25 
                U.S.C. 2710) shall be carried out in accordance with 
                that compact; and
                    ``(C) if there is no applicable Tribal-State 
                compact, an appropriate tribal official may institute 
                proceedings in the same manner as an attorney general 
                of a State.
            ``(6) Rule of construction.--Nothing in this subsection 
        shall be construed to alter, supersede, or otherwise affect the 
        application of the Indian Gaming Regulatory Act (25 U.S.C. 2701 
        et seq.).
            ``(7) Limitation on relief.--Notwithstanding paragraph (4), 
        no relief shall be granted under this section against a 
        financial transaction provider except as provided in paragraph 
        (3).
    ``(c) Limitation on Liability.--No damages, penalty, or forfeiture, 
civil or criminal, shall be found against any person or entity for any 
act done in compliance with any notice received from a law enforcement 
agency.''.
                    (B) Clerical amendment.--The table of sections for 
                chapter 50 of title 18, United States Code, is amended 
                by inserting after the item relating to section 1084 
                the following:

``1085. Civil remedies.''.
    (g) Systems Used in Support of Lawful Gambling.--
            (1) In general.--This title, subchapter IV of chapter 53 of 
        title 31, United States Code, section 1084 of title 18, United 
        States Code, and any other provision of Federal law that 
        establishes criminal penalties for any activity involved in 
        placing, receiving, or otherwise transmitting a bet or wager, 
        information assisting in the placing of bets or wagers, or a 
        communication which entitles the recipient to receive money or 
        credit as a result of bets or wagers, shall not apply to gaming 
        devices, information, or communications, to the extent used to 
        support bets or wagers offered by a casino gaming facility 
        that--
                    (A) occur between participants who are located on 
                the premises of the same casino gaming facility; and
                    (B) are lawful in the State or on the Indian lands 
                in or on which the casino gaming facility is located.
            (2) Definitions.--In this subsection:
                    (A) Casino gaming facility.--The term ``casino 
                gaming facility'' means any facility that provides 
                casino gaming on a riverboat, at a race track, or in 
                another facility, regardless of the number of gaming 
                devices in 1 physical location, pursuant to a duly 
                authorized license issued by a gaming regulatory 
                authority of a State of Indian tribe.
                    (B) Participants.--The term ``participants'' 
                includes all persons who are party to the bet or wager, 
                including, in the case of banked games, the casino 
                gaming facility or operator itself.
    (h) Preservation of Existing Lawful Gambling.--
            (1) In general.--This title, subchapter IV of chapter 53 of 
        title 31, United States Code, section 1084 of title 18, United 
        States Code, and any other provision of Federal law that 
        establishes criminal penalties for any activity involved in 
        placing, receiving, or otherwise transmitting a bet or wager, 
        information assisting in the placing of bets or wagers, or a 
        communication which entitles the recipient to receive money or 
        credit as a result of bets or wagers, shall not apply to the 
        offering of a bet or wager or gambling game authorized, 
        licensed, and regulated by a State or Indian tribe on the day 
        before the date of enactment of this Act and otherwise lawful 
        activities in support of the offering of that bet or wager or 
        gambling game, or that is permissible under the Interstate 
        Horseracing Act of 1978 (15 U.S.C. 3001 et seq.); or that is 
        the purchase of a chance or opportunity to win a lottery or 
        other prize--
                    (A) which opportunity to win is predominantly 
                subject to chance; and
                    (B) which is authorized by a State or Indian tribe 
                wholly within its borders;
            (2) Applicability.--Paragraph (1) shall not apply to--
                    (A) any expansion of or other change to any such 
                bet or wager or gambling game that otherwise would 
                violate any applicable provision of Federal law if a 
                change in State or tribal law is necessary in order to 
                permit such expansion or change;
                    (B) the offering of a bet or wager or gambling game 
                of the same type and character in a State or Indian 
                tribe in which that bet or wager or gambling game is 
                not permitted on the date of enactment of this Act; and
                    (C) qualifying intrastate lottery transactions.
            (3) Casino gaming facility defined.--In this subsection, 
        the term ``casino gaming facility'' means any facility that 
        provides casino gaming on a riverboat, at a race track, or in 
        another facility, regardless of the number of gaming devices in 
        1 physical location, pursuant to a duly authorized license 
        issued by a gaming regulatory authority of a State of Indian 
        tribe.

SEC. 114. ORDERLY TRANSITION.

    (a) Issuance of Initial Licenses.--
            (1) In general.--Each qualified body designated under 
        section 105 before the date of first issuance specified in this 
        subsection, shall, to the extent practicable while meeting the 
        requirements and standards of this title, issue multiple 
        licenses under this title before such date in order to ensure a 
        robust and competitive market for consumers and to prevent the 
        first licensees from gaining an unfair competitive advantage.
            (2) Effective date of initial licenses.--No license issued 
        under this title shall authorize a licensee to accept a bet or 
        wager under this title before the date of first issuance 
        specified in this subsection.
            (3) Date of first issuance.--The date of first issuance 
        specified in this subsection is the date that is 270 days after 
        the date of the enactment of this Act.
    (b) Orderly Cessation of Unlicensed Activity and Safekeeping of 
Customer Funds.--
            (1) In general.--Each person shall, with respect to an 
        Internet gambling facility not licensed under this Act and to 
        the extent applicable to the person--
                    (A) not later than 30 days after the date of the 
                enactment of this Act, cease offering, accepting, and 
                providing services with respect to bets or wagers from 
                individuals the person knows, or reasonably should 
                know, are located in the United States;
                    (B) provide to each individual located in the 
                United States who has outstanding sums on deposit with 
                such person notice to such individual that operations 
                will be ceasing pursuant to paragraph (1) with 
                instructions indicating the procedures the individual 
                should use to request the return of such sums--
                            (i) not later than 7 days after the date of 
                        the enactment of this Act and not less 
                        frequently than quarterly thereafter until such 
                        sums have been returned, by e-mail;
                            (ii) not later than 30 days after the date 
                        of the enactment of this Act and not less 
                        frequently than semi-annually thereafter until 
                        such sums have been returned, by mail; and
                            (iii) beginning not later than 14 days 
                        after the date of the enactment of this Act and 
                        ending on the date that such sums have been 
                        returned, by promptly displaying notice each 
                        time such individual signs into the Internet 
                        gambling facility;
                    (C) promptly return all outstanding sums to 
                individuals located in the United States who have sums 
                on deposit with such person, upon the request of such 
                individuals;
                    (D) during the 2-year period beginning on the date 
                of the enactment of this Act, retain all outstanding 
                sums on deposit with such person that are owed to 
                individuals under subparagraph (C) the disposition of 
                which remains unresolved because of a lack of a request 
                by such individual under such subparagraph or other 
                reason; and
                    (E) on the date that is 2 years and 1 day after the 
                date of the enactment of this Act, place any remaining 
                sums on deposit with such person that are owed to 
                individuals under subparagraph (C) the disposition of 
                which remains unresolved in escrow with a financial 
                institution in the United States for safekeeping and 
                orderly disposition as the Secretary may direct.
            (2) Applicability regardless of license application 
        status.--Paragraph (1) applies to any person who has operated 
        an Internet gambling facility not licensed under this Act 
        regardless of whether the person applies for a license or seeks 
        a certificate of suitability with respect to an application for 
        a license under this title.
            (3) Criminal penalty.--Whoever violates paragraph (1) shall 
        be fined under title 18, United States Code, in an amount not 
        to exceed 3 times the amount of the funds subject to this 
        subsection or imprisoned under such title for not more than 2 
        years, or both.
            (4) Regulations.--The Office of Internet Gambling Oversight 
        shall prescribe regulations to carry out this subsection.
            (5) Judicial review.--An applicant may seek judicial review 
        of a determination under paragraph (1) or (2) only by the 
        United States district court for the District of Columbia in 
        accordance with chapter 7 of title 5, United States Code.
    (c) No Effect on Existing Law.--Nothing in this section shall be 
construed to repeal, to amend, or to affect the interpretation of any 
provision of Federal or State law that was in effect before the date of 
the enactment of this Act that--
            (1) authorizes the provision of services relating to bets 
        or wagers by facilities authorized and licensed by that State 
        or Indian tribe in compliance with the law of that State or 
        Indian tribe, as applicable, and solely provides services to 
        participants wholly within the boundaries of such State or the 
        Indian lands of such Indian tribe;
            (2) prohibits, restricts, or otherwise addresses bets or 
        wagers; or
            (3) prohibits fraud, unfair or deceptive acts or practices, 
        or other criminal activity.

SEC. 115. ANNUAL REPORTS.

    (a) Licensing and Regulation of Internet Gambling Facilities.--
            (1) In general.--Not later than 1 year after the date of 
        first issuance specified in section 114(a) and not less 
        frequently than annually thereafter, the Secretary shall submit 
        to Congress a report on the licensing and regulation of 
        Internet gambling facilities under this title.
            (2) Elements.--Each report submitted under paragraph (1) 
        shall include the following:
                    (A) A description of all notices received by the 
                Secretary under subsections (b) and (c) of section 108.
                    (B) The amount of assessments collected under 
                section 106(e) and, in cooperation with the Secretary 
                of the Treasury, an estimate of the amount of income 
                tax revenue that is attributable to the operation of 
                Internet gambling facilities during the period covered 
                by the report.
                    (C) A list of qualified bodies, the number of 
                licensees reviewed by the qualified bodies under this 
                title, and the outcomes of such reviews.
                    (D) A description of the efforts the Secretary has 
                undertaken to ensure that qualified bodies are properly 
                issuing licenses and regulating licensees under this 
                title.
                    (E) A detailed description of each type of game 
                offered by licensees and how each type is consistent 
                with the definition of ``poker'' under section 102.
                    (F) Such other information as the Secretary 
                considers appropriate.
    (b) Consumer Protection.--
            (1) In general.--Not later than 1 year after the date of 
        first issuance specified in section 114(a) and not less 
        frequently than annually thereafter, the Secretary shall submit 
        to the Committee on Banking, Housing and Urban Affairs of the 
        Senate and the Committee on Financial Services of the House of 
        Representatives a report on commercial and regulatory practices 
        carried out to protect consumers with respect to Internet 
        gambling, including the practices carried out pursuant to the 
        requirements of section 107 and the regulations prescribed 
        pursuant to such section.
            (2) Elements.--Each report submitted under paragraph (1) 
        shall include the following:
                    (A) A detailed description of the efforts of each 
                qualifying body to protect consumers from unfair or 
                deceptive acts or practices, including deceptive 
                advertising and marketing to minors.
                    (B) A description of the practices that the 
                Secretary recommends qualifying bodies adopt to protect 
                consumers.
                    (C) Such recommendations as the Secretary may have 
                for legislative action as the Secretary considers 
                necessary to protect consumers with respect to Internet 
                gambling.
                    (D) Such other information as the Secretary 
                considers appropriate.

SEC. 116. INDEPENDENT TESTING OF LICENSED OPERATOR EQUIPMENT.

    (a) Requirement.--The Secretary shall require independent testing 
of hardware, software, communications equipment, and other necessary 
devices for Internet gambling facilities to ensure the integrity, 
accountability, and randomness of play and network security.
    (b) Definition.--For purposes of this section, the term 
``independent testing'' means testing conducted by a scientific 
laboratory--
            (1) that is accredited by an intentional accreditation body 
        approved by the Secretary;
            (2) that is competent and qualified to scientifically test 
        and evaluate equipment, software, communications and 
        functionality relating to the operation of an Internet gambling 
        facility; and
            (3) that is not be owned or controlled by an Internet 
        gambling facility, an electronic gaming equipment vendor, 
        manufacturer, or retailer, or an Internet gaming operator.

SEC. 117. INCLUSION OF AUTHORITY TO ADDRESS GAMBLING ADDICTION IN 
              SAMHSA AUTHORITIES.

    Section 501(d) of the Public Health Service Act (42 U.S.C. 
290aa(d)) is amended--
            (1) by striking ``and'' at the end of paragraph (17);
            (2) by striking the period at the end of paragraph (18) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(19) establish and implement programs for the 
        identification, prevention, and treatment of pathological and 
        other problem gambling.''.

SEC. 118. COMPILATION OF DATASETS ON PLAYER BEHAVIOR.

    The Secretary shall compile and make available to the public, on 
the Web site of the Department of the Treasury, datasets, with respect 
to Internet gambling, on player behavior from customer tracking data 
collected or generated by loyalty programs, player tracking software, 
online gambling transactions, or any other information system. The 
Secretary shall ensure that personally identifying information, 
including player name, street address, and bank or credit information, 
are automatically removed from the data. The data shall include 
information on player characteristics including gender, age and region 
of residence, player behavior including frequency of play, length of 
play, speed of play, denomination of play, amounts wagered and, if 
applicable, number of lines or hands played, and characteristics of 
games played.

SEC. 119. EFFECTIVE DATE.

    (a) In General.--Except as otherwise provided in this title, the 
provisions of this title shall take effect on the date that is 30 days 
after the date of the enactment of this Act.
    (b) Regulations Required Before Issuing Licenses.--Notwithstanding 
any other provision of this title, a qualified body may not issue a 
license under this title until the qualified body has issued 
regulations to meet its obligations as a qualified body.

    TITLE II--ENFORCEMENT UNDER TITLES 18 AND 31, UNITED STATES CODE

SEC. 201. FINANCIAL SERVICE PROVIDERS.

    Subchapter IV of chapter 53 of title 31, United States Code, is 
amended--
            (1) in section 5362--
                    (A) by redesignating paragraph (11) as paragraph 
                (12); and
                    (B) by inserting after paragraph (10) the 
                following:
            ``(11) List of licensed internet gambling facilities.--The 
        term `list of licensed Internet gambling facilities' means the 
        list established and maintained under section 106(n) of the 
        Internet Gambling Regulation, Enforcement, and Consumer 
        Protection Act of 2013.''; and
            (2) in section 5364, by striking subsection (d) and 
        inserting the following:
    ``(d) Financial Transaction Providers.--
            ``(1) In general.--A financial transaction provider shall 
        prevent, prohibit, or suspend its service from completing 
        payment transactions involving customers within the United 
        States and a person or entity that is--
                    ``(A) an Internet gambling facility not included on 
                the list of licensed Internet gambling facilities, or 
                that the financial transaction provider reasonably 
                believes is included on such list;
                    ``(B) demonstrated to be, or that the financial 
                transaction provider reasonably believes to be, an 
                unlicensed Internet gambling enterprise, based on 
                information other than the list of licensed Internet 
                gambling facilities; or
                    ``(C) acting on behalf of an Internet gambling 
                facility that is not included on the list of licensed 
                Internet gambling facilities, or that the financial 
                transaction provider reasonably believes is included on 
                such list, if the financial transaction provider has 
                knowledge that such person or entity is acting on 
                behalf of the unlicensed person or entity.
            ``(2) Safe harbor.--A financial transaction provider shall 
        not be held liable to any person--
                    ``(A) for engaging in a financial activity or 
                transaction, including a payments processing activity, 
                in connection with a bet or wager that the provider 
                believes is permitted by the Internet Gambling 
                Regulation, Enforcement, and Consumer Protection Act of 
                2013 or the Internet horseracing Act of 1978 (15 U.S.C. 
                3001 et seq.), unless the financial transaction 
                provider has actual knowledge that the financial 
                activity or transaction was conducted in violation of 
                either such Act or any applicable provision of Federal 
                or State law; or
                    ``(B) for taking any action pursuant to paragraph 
                (1).''.

SEC. 202. AMENDMENTS RELATING TO ILLEGAL GAMBLING BUSINESSES.

    Section 1955(b)(1) of title 18, United States Code, is amended--
            (1) in clause (i), by striking ``(i) is'' and inserting 
        ``(A)(i) is'';
            (2) in clause (iii), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(B) is an unlawful Internet gambling facility, as 
                defined in section 102 of the Internet Gambling 
                Regulation, Enforcement, and Consumer Protection Act of 
                2013.''.

SEC. 203. FURTHER AMENDMENTS TO SUBCHAPTER IV OF CHAPTER 53 OF TITLE 
              31, UNITED STATES CODE.

    Section 5362(10) of title 31, United States Code, is amended--
            (1) by striking subparagraphs (A) through (C) and inserting 
        the following:
                    ``(A) In general.--The term `unlawful Internet 
                gambling' means to place, receive, or otherwise 
                knowingly transmit a bet or wager by or on behalf of a 
                person located in the United States by any means which 
                involves the use, at least in part, of the Internet, 
                unless such bet or wager is expressly permitted under 
                applicable Federal law.'';
            (2) by redesignating subparagraph (D) as subparagraph (B);
            (3) in subparagraph (B), as so redesignated, by striking 
        clause (iii); and
            (4) by striking subparagraph (E) and inserting the 
        following:
                    ``(C) Qualifying intrastate lottery transactions.--
                The term `unlawful Internet gambling' does not include 
                the purchase of a chance or opportunity to win a 
                lottery or other prize that satisfies all of the 
                conditions and limitations set out in section 102(3)(B) 
                of the Internet Gambling Regulation, Enforcement, and 
                Consumer Protection Act of 2013.
                    ``(D) Licensed internet gambling facilities.--The 
                term `unlawful Internet gambling' does not include an 
                activity carried out by an Internet gambling facility, 
                as such term is defined in section 102 of the Internet 
                Gambling Regulation, Enforcement, and Consumer 
                Protection Act of 2013, operated by a person under a 
                license provided under title I of that Act, in 
                accordance with the provisions of that title I.''.

SEC. 204. BETTOR FORFEITURE.

    Section 981(a)(1) of title 18, United States Code, is amended by 
adding at the end the following:
                    ``(I) Any property, real or personal, involved in a 
                transaction or attempted transaction in violation of 
                section 103 of the Internet Gambling Regulation, 
                Enforcement, and Consumer Protection Act of 2013, or 
                any property traceable to such property.''.

SEC. 205. REGULATIONS.

    (a) Regulations.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of the Treasury shall prescribe 
such regulations as the Secretary of the Treasury considers necessary 
to ensure compliance with the Bank Secrecy Act (12 U.S.C. 1951 et seq.; 
31 U.S.C. 5311 et seq.), by licensees, significant vendors to such 
licensees, and financial service providers to such licensees (as those 
terms are defined in section 102).
    (b) Revision of Regulations.--Not later than 180 days after the 
date of enactment of this Act, the Secretary of the Treasury shall 
revise part 233 of title 12, Code of Federal Regulations, and part 132 
of title 31, Code of Federal Regulations, to conform with the 
provisions of title I.

SEC. 206. CONFORMING AMENDMENT.

    Section 310(b)(2)(I) of title 31, United States Code, is amended by 
striking ``subchapter II'' and inserting ``subchapters II and IV''.

                        TITLE III--OTHER MATTERS

SEC. 301 SEVERABILITY.

    If any provision of this Act is declared unconstitutional, or the 
applicability thereof to any person or circumstances is held invalid, 
the remainder of the Act shall remain in effect and will continue to 
apply to other persons and circumstances.
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