I 

110TH CONGRESS 

1ST SESSION H. R. 2610 

To amend subchapter IV of chapter 53 of title 31, United States Code, 

and section 1084 of title 18 of such Code to clarify the applicability 

of such provisions to games of skill, and establish certain requirements 

with respect to such games, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 7, 2007 

Mr. WEXLER introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committees on the 

Judiciary and Energy and Commerce, 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 amend subchapter IV of chapter 53 of title 31, United 

States Code, and section 1084 of title 18 of such Code 

to clarify the applicability of such provisions to games 

of skill, and establish certain requirements with respect 

to such games, and for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act shall be known as the ‘‘Skill Game Protec5 tion Act’’. 
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1 SEC. 2. CONGRESSIONAL FINDINGS. 

2 The Congress finds as follows: 

3 (1) Millions of Americans enjoy competing with 

4 other players in a variety of games of skill, including 

5 bridge, mah-jong, backgammon, and poker, over the 

6 Internet, where the operator provides the Internet 

7 venue for competition and receives a fee for such 

8 service. 

9 (2) For some Americans, these games provide 

10 their primary source of income. 

11 (3) While each of these games contains an ele12 ment of chance, over any substantial interval, a 

13 player’s success at any of these games is determined 

14 by that player’s relative level of skill and is widely 

15 recognized as such. 

16 (4) Games where success is predominantly de17 termined by the skill of the players involved, as a 

18 matter of law and of policy, are distinct from the 

19 games of chance traditionally described and ad20 dressed in Federal and State gambling statutes. 

21 (5) Despite the fact that the language in sec22 tion 1084 of title 18, United States Code, commonly 

23 referred to as the ‘‘Wire Act’’, has been interpreted 

24 by Federal courts as applying only to betting on 

25 sports, some in law enforcement interpret the section 
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1 as prohibiting the acceptance of both sports and 

2 non-sports betting through a communications device. 

3 (6) The Federal Government should take appro4 priate steps to ensure that, with respect to skill 

5 games— 

6 (A) minors are prevented from playing for 

7 money; 

8 (B) persons with compulsive behavior 

9 should be identified and referred to treatment; 

10 (C) operators of such games should not be 

11 vulnerable to, or participate in criminal or ter12 rorist money laundering; and 

13 (D) appropriate taxes are collected. 

14 SEC. 3. CLARIFICATION. 

15 Section 1084 of title 18, United States Code, is 

16 amended by adding at the end the following new sub17 section: (f) 

18 ‘‘(f) As used in this section, the term ‘bets or wagers’ 

19 does not include operating, or participation in, poker, 

20 chess, bridge, mahjong or any other game where success 

21 is predominantly determined by a player’s skill, to the ex22 tent that— 

23 ‘‘(1) the game provides for competition only be24 tween and among participants, and not against the 

25 person operating the game; and 
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1 ‘‘(2) the operator is in compliance with regula2 tions issued pursuant to section 5368 of title 31, 

3 United States Code.’’. 

4 SEC. 4. SAFEGUARDS. 

5 (a) IN GENERAL.—Subchapter IV of chapter 53 of 

6 title 31, United States Code, is amended by adding at the 

7 end the following new section: 

8 ‘‘§ 5368. Games of skill 

9 ‘‘Before the end of the 180-day period beginning on 

10 the date of the enactment of the Skill Game Protection 

11 Act, the Secretary shall prescribe regulations requiring 

12 each person who operates a game of skill on the Internet 

13 to maintain the following: 

14 ‘‘(1) Appropriate safeguards to ensure that the 

15 individual participant depositing funds is 18 years of 

16 age or older. 

17 ‘‘(2) Appropriate safeguards to ensure that the 

18 individual participant is physically located in a juris19 diction that does not bar participation in the par20 ticular Internet games of skill in which the indi21 vidual participates at the time in the individual par22 ticipates. 

23 ‘‘(3) Appropriate mechanisms to ensure that all 

24 taxes relating to Internet games of skill due to Fed25 eral and State governments and to Indian tribes 
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1 from individual participants are collected as required 

2 by at the time of any payment of any proceeds of 

3 Internet games of skill. 

4 ‘‘(4) Appropriate safeguards to combat fraud 

5 and money laundering as may be prescribed by regu6 lations issued by the Secretary or a designee of the 

7 Secretary. 

8 ‘‘(5) Appropriate safeguards to combat compul9 sive participation in Internet games of skill. 

10 ‘‘(6) Appropriate safeguards to protect the pri11 vacy and security of any person engaged in Internet 

12 games of skill.’’. 

13 (b) CLERICAL AMENDMENT.—The table of sections 

14 for subchapter IV of chapter 53 of title 31, United States 

15 Code, is amended by inserting after the item relating to 

16 section 5367 the following new item: 

‘‘5368. Games of skill.’’. 

17 SEC. 5. RULES OF CONSTRUCTION. 

18 (a) NONAPPLICABILITY TO GAMES OF SKILL.—Sec19 tion 5362(1)(E) of title 31, United States Code, is amend20 ed— 

21 (1) by striking ‘‘or’’ at the end of clause (viii); 

22 (2) by striking the period at the end of clause 

23 (ix) and inserting ‘‘; or’’; and 

24 (3) by adding at the end the following new 

25 clause: 
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1 ‘‘(x) participation in any activity 

2 which does not constitute ‘‘bets or wagers’’ 

3 within the meaning of section 1084(f) of 

4 title 18 and is operated in compliance with 

5 the regulations issued pursuant to section 

6 5368.’’. 

7 (b) NONAPPLICABILITY TO NON-SPORTS WAGER8 ING.—No provision of this Act, or amendment made by 

9 this Act to any other provision of law, shall be construed 

10 as implying that section 1084 of title 18, United States 

11 Code, applies or applied to non-sports wagering before or 

12 after the enactment of this Act. 

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