I 

110TH CONGRESS 

1ST SESSION H. R. 2140 

To provide for a study by the National Academy of Sciences to identify 

the proper response of the United States to the growth of Internet gambling. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 3, 2007 

Ms. BERKLEY (for herself, Mr. PORTER, Mr. THOMPSON of Mississippi, Mr. 

CROWLEY, Mr. LOBIONDO, Mr. HELLER of Nevada, Mr. WALZ of Minnesota, Mr. COHEN, Mr. MEEKS of New York, Mr. AL GREEN of Texas, 

Mr. BERMAN, Mr. FRANK of Massachusetts, Mr. RUPPERSBERGER, Mr. 

YARMUTH, Mr. SERRANO, Mr. MCGOVERN, Mr. TOWNS, Mr. PASCRELL, 

Ms. JACKSON-LEE of Texas, Mr. PAYNE, Mr. CLAY, Mr. CAPUANO, Mr. 

LARSON of Connecticut, Mr. RYAN of Ohio, Ms. LINDA T. SA ́NCHEZ of 

California, Mr. WEINER, Mr. ACKERMAN, Mrs. MALONEY of New York, 

Mr. WEXLER, Mr. MEEK of Florida, Mrs. NAPOLITANO, Mr. PETERSON

of Minnesota, Mr. MELANCON, Mr. ABERCROMBIE, Mr. HILL, Mr. TAYLOR, Mr. THOMPSON of California, Ms. WATSON, Mr. LEWIS of Georgia, 

Mr. CONYERS, Ms. KILPATRICK, Mr. GUTIERREZ, Mr. COSTELLO, Ms. 

LORETTA SANCHEZ of California, Mr. MOORE of Kansas, Ms. CORRINE

BROWN of Florida, Mrs. JONES of Ohio, Mr. NADLER, Mr. RANGEL, Mr. 

HONDA, Mr. HASTINGS of Florida, Mr. DAVIS of Illinois, Mr. LANGEVIN, 

Mr. FALEOMAVAEGA, Mr. HINCHEY, Ms. SCHAKOWSKY, Mr. GONZALEZ, 

Mr. GRIJALVA, Mr. ISRAEL, Mr. COSTA, and Mr. CLYBURN) introduced 

the following bill; which was referred to the Committee on the Judiciary, 

and in addition to the Committees on Financial Services and Ways and 

Means, 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 provide for a study by the National Academy of Sciences 

to identify the proper response of the United States 

to the growth of Internet gambling. 


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

3 SECTION 1. SHORT TITLE. 

4 This Act shall be known as the ‘‘Internet Gambling 

5 Study Act’’. 

6 SEC. 2. FINDINGS AND PURPOSE. 

7 (a) FINDINGS.—The Congress finds as follows: 

8 (1) Gambling is regulated primarily by State 

9 and tribal governments and Federal statutes gov10 erning the interstate placement of wagers are out11 dated. 

12 (2) Over the past decade, the number of Ameri13 cans gambling on the Internet has risen dramatically 

14 to several million, accounting for over half of a 

15 multibillion dollar worldwide market. 

16 (3) Many observers and industry analysts be17 lieve that it is impossible to stop the sale of most 

18 products or services over the Internet. 

19 (4) Congress recently approved the Unlawful 

20 Internet Gambling Enforcement Act, which imposes 

21 civil and criminal penalties for the acceptance of any 

22 financial instrument by those engaged in the busi23 ness of unlawful Internet gambling. 

24 (5) Congress must focus on establishing safe25 guards against gambling by minors, compulsive gamVerDate Aug 31 2005 22:38 May 04, 2007 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2140.IH H2140

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1 bling, fraud, money laundering, and other forms of 

2 abuse. 

3 (6) Although interpretations of a recent ruling 

4 of the World Trade Organization’s appellate body 

5 differ, legal experts agree that it calls into question 

6 whether certain of Federal and State gambling laws 

7 violate the commitments of the United States under 

8 the General Agreement on Trade and Services. 

9 (7) While only the United States and Antigua 

10 and Barbuda are parties to that dispute, the ruling 

11 could have ramifications for all interested parties, 

12 from the European Union to Australia. 

13 (b) PURPOSE.—The purpose of this Act is to provide 

14 for a detailed examination by the National Research Coun15 cil of the National Academy of Sciences of the issues posed 

16 by the continued spread and growth of interstate com17 merce with respect to Internet gambling, as well as the 

18 impact of the Unlawful Internet Gambling Enforcement 

19 Act on Internet gambling in the United States. 

20 SEC. 3. COMPREHENSIVE STUDY OF INTERNET GAMBLING. 

21 (a) STUDY REQUIRED.— 

22 (1) IN GENERAL.—The National Research 

23 Council of the National Academy of Sciences shall 

24 enter into a contract to conduct a comprehensive 

25 study of Internet gambling, including the existing 


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1 legal framework that governs such activities and 

2 transactions and the impact of the Unlawful Inter3 net Gambling Enforcement Act on Internet gam4 bling in the United States. 

5 (2) ISSUES TO BE CONSIDERED.—The study 

6 conducted under paragraph (1) shall include— 

7 (A) a review of existing Federal, State, 

8 tribal, local, and international laws governing 

9 various forms of wagering over the Internet, the 

10 effectiveness of such laws, and the extent to 

11 which such provisions of law conform or do not 

12 conform with each other; 

13 (B) an assessment of the proliferation of 

14 Internet gambling, including an analysis of its 

15 availability and use within the United States; 

16 (C) a determination of the impact of Inter17 net gambling on minors and compulsive gam18 blers and the availability of regulatory and 

19 technological safeguards to prevent or mitigate 

20 these impacts; 

21 (D) a determination of the extent to which 

22 terrorists and criminal enterprises are utilizing 

23 Internet gambling for fraud and money laun24 dering purposes and the availability of reguVerDate Aug 31 2005 22:38 May 04, 2007 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2140.IH H2140

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1 latory and technological safeguards to prevent 

2 or mitigate these impacts; 

3 (E) an assessment of the impact of the 

4 Unlawful Internet Gambling Enforcement Act 

5 on the availability and use within the United 

6 States of Internet gambling, and on the adverse 

7 effects of Internet gambling identified in sub8 paragraphs (C) and (D); 

9 (F) an assessment of recent technological 

10 innovations and the practices of other nations 

11 and international bodies that license and regu12 late Internet gambling, and the practicality of 

13 using similar systems to establish a legal frame14 work in the United States; 

15 (G) an analysis of the issues of federalism 

16 that are presented by legislative and adminis17 trative proposals designed to address the pro18 liferation of illegal Internet gambling, given the 

19 interstate and international character of the 

20 Internet as a medium, and the potential for 

21 State and tribal governments to create a legal 

22 and regulatory framework for online gambling 

23 within their jurisdictions or among those juris24 dictions where online gambling is legal; 


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1 (H) an assessment of the problems posed 

2 by unregulated international Internet gambling 

3 to United States interests and the potential 

4 means, if any, by which the Federal Govern5 ment may seek international cooperation in ad6 dressing these concerns; 

7 (I) an analysis of the potential impact of 

8 recent World Trade Organization rulings re9 garding Internet gambling and the long-term 

10 impact on existing and future United States 

11 trade agreements under the General Agreement 

12 on Trade and Services; and 

13 (J) an analysis of the potential tax revenue 

14 that could be generated by a legal, licensed, 

15 regulated Internet gambling industry in the 

16 United States. 

17 (b) FINAL REPORT.—The contract entered into 

18 under subsection (a) shall require that the National Re19 search Council submit to the President, the Congress, 

20 State Governors, and Native American tribal governments 

21 a comprehensive report on the Council’s findings and con22 clusions not later than 12 months after the date upon 

23 which the contract is entered into. 

Æ 


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