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[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4530 Introduced in House (IH)]

<DOC>

115th CONGRESS
  1st Session
                                H. R. 4530

To provide that a person or governmental entity is not subject to civil 
  or criminal liability under Federal law for gaming activity that is 
            lawful under State law, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            December 4, 2017

 Mr. Pallone introduced the following bill; which was referred to the 
 Committee on Energy and Commerce, and in addition to the Committee on 
   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 provide that a person or governmental entity is not subject to civil 
  or criminal liability under Federal law for gaming activity that is 
            lawful under State law, 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.

    This Act may be cited as the ``Gaming Accountability and 
Modernization Enhancement Act of 2017'' or the ``GAME Act of 2017''.

SEC. 2. NO FEDERAL LIABILITY FOR GAMING ACTIVITY LAWFUL UNDER STATE 
              LAW.

    (a) In General.--Except as provided in subsection (b) and 
notwithstanding any other law, a person or governmental entity is not 
subject to civil or criminal liability under any provision of Federal 
law for engaging through a gaming facility in gaming activity that is 
lawful under the law of the State in which such person or governmental 
entity engages in such activity.
    (b) Minimum Consumer Protections.--Subsection (a) does not apply to 
a person or governmental entity with respect to gaming activity engaged 
in by the person or governmental entity in a State unless the law of 
the State provides for consumer protections with respect to such 
activity that include the following:
            (1) Licensing of gaming facilities.--Appropriate licensing 
        or certification mechanisms for gaming facilities.
            (2) Reporting requirements for gaming facilities.--
        Appropriate mechanisms, including reporting requirements, to 
        ensure, to a reasonable degree of certainty, that gaming 
        facilities are operating in a fair and transparent manner.
            (3) Prohibition of underage gaming.--Appropriate safeguards 
        to ensure, to a reasonable degree of certainty, that an 
        individual placing a bet or wager is not under the minimum 
        legal age for placing such a bet or wager established by the 
        State.
            (4) Prohibited locations.--Appropriate safeguards to 
        ensure, to a reasonable degree of certainty, that an individual 
        placing a bet or wager is physically located in a jurisdiction 
        that has not prohibited such bet or wager at the time the bet 
        or wager is placed.
            (5) Mandatory collection or reporting of customer taxes.--
        Appropriate mechanisms to ensure, to a reasonable degree of 
        certainty, that all Federal and State taxes relating to the 
        placement of a bet or wager are collected from or reported by 
        the person placing such bet or wager, as required by law, at 
        the time of any payment of the proceeds of such bet or wager.
            (6) Mandatory collection or reporting of taxes on operator 
        of gaming facility.--Appropriate mechanisms to ensure that--
                    (A) all Federal and State taxes relating to the 
                operation of a gaming facility are collected or 
                reported, as required by law; and
                    (B) adequate records are maintained to enable later 
                audit or verification of such collection or reporting.
            (7) Safeguards against financial crime.--Appropriate 
        safeguards to prevent, to a reasonable degree of certainty, 
        fraud, money laundering, and financing of terrorism.
            (8) Safeguards against compulsive play.--Appropriate 
        safeguards to combat compulsive gambling.
            (9) Privacy and data security safeguards.--Appropriate 
        safeguards to protect, to a reasonable degree of certainty, the 
        privacy and online security of any person placing a bet or 
        wager.
            (10) Prevention of cheating.--Appropriate safeguards to 
        ensure, to a reasonable degree of certainty, that a bet or 
        wager is fair and honest, and to prevent, to a reasonable 
        degree of certainty, cheating (including collusion and the use 
        of a cheating device).
            (11) Integrity safeguards.--In a State in which betting or 
        wagering relating to sporting events is lawful under the law of 
        the State, appropriate safeguards to ensure, to a reasonable 
        degree of certainty, the integrity of the sporting event, 
        including limitations on a bet or wager accepted during the 
        sporting event.
            (12) Redress.--Appropriate recourse mechanisms for persons 
        affected by noncompliance with the consumer protections 
        required by this subsection and any other consumer protections 
        implemented by the State with respect to the placement of bets 
        or wagers or the operation of gaming facilities.
    (c) Federal Trade Commission Filing.--A gaming facility that 
accepts bets or wagers from persons in more than one State shall submit 
to the Commission a description of how the gaming facility has complied 
with the law of each such State with respect to each of the consumer 
protections described in subsection (b) that is provided for by the law 
of such State.

SEC. 3. USE OF CREDIT CARD TO VERIFY AGE PROHIBITED.

    It shall be unlawful for any person to accept a credit card payment 
as a method of age verification for placing any bet or wager.

SEC. 4. ENFORCEMENT.

    (a) By Federal Trade Commission.--
            (1) Unfair or deceptive acts or practices.--A violation of 
        section 2(c) or 3, or a rule prescribed under such section, 
        shall be treated as a violation of a rule defining an unfair or 
        deceptive act or practice prescribed under section 18(a)(1)(B) 
        of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
            (2) Powers of commission.--The Commission shall enforce 
        this Act in the same manner, by the same means, and with the 
        same jurisdiction, powers, and duties as though all applicable 
        terms and provisions of the Federal Trade Commission Act (15 
        U.S.C. 41 et seq.) were incorporated into and made a part of 
        this Act. Any person who violates section 2(c) or 3, or a rule 
        prescribed under such section, shall be subject to the 
        penalties and entitled to the privileges and immunities 
        provided in the Federal Trade Commission Act.
    (b) By State Attorneys General.--
            (1) In general.--If the attorney general of a State has 
        reason to believe that any person has violated or is violating 
        section 2(c) or 3, or a rule prescribed under such section, the 
        attorney general, in addition to any authority the attorney 
        general may have to bring an action in State court under the 
        consumer protection law of the State, may bring a civil action 
        in any appropriate United States district court or in any other 
        court of competent jurisdiction, including a State court, to--
                    (A) enjoin further such violation by the defendant;
                    (B) enforce compliance with such section or such 
                rule;
                    (C) obtain civil penalties; or
                    (D) obtain damages, restitution, or other 
                compensation on behalf of residents of the State.
            (2) Notice and intervention by ftc.--The attorney general 
        of a State shall provide prior written notice of any action 
        under paragraph (1) to the Commission and provide the 
        Commission with a copy of the complaint in the action, except 
        in any case in which such prior notice is not feasible, in 
        which case the attorney general shall serve such notice 
        immediately upon instituting such action. The Commission shall 
        have the right--
                    (A) to intervene in the action;
                    (B) upon so intervening, to be heard on all matters 
                arising therein; and
                    (C) to file petitions for appeal.
            (3) Limitation on state action while federal action is 
        pending.--If the Commission has instituted a civil action for 
        violation of section 2(c) or 3 (including a rule prescribed 
        under such section), no State attorney general may bring an 
        action under this subsection during the pendency of that action 
        against any defendant named in the complaint of the Commission 
        for any violation of such section (including such rule) alleged 
        in the complaint.
            (4) Attorney general defined.--In this subsection, the term 
        ``attorney general'' means, with respect to a State, the 
        attorney general or chief law enforcement officer of the State, 
        or another official or agency designated by the State to bring 
        civil actions on behalf of the State or the residents of the 
        State.
    (c) Rulemaking.--The Commission may prescribe rules under section 
553 of title 5, United States Code, to implement sections 2(c) and 3.
    (d) Preservation of Authority of Commission.--Nothing in this Act 
shall be construed in any way to limit or affect the authority of the 
Commission under any other provision of law.

SEC. 5. GAMBLING ADDICTION PREVENTION AND TREATMENT.

    (a) Authority To Address Gambling in Department of Health and Human 
Services 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 (24);
            (2) by striking the period at the end of paragraph (25) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(26) establish and implement programs for prevention and 
        treatment of gambling addiction.''.
    (b) Advisory Committee.--
            (1) Establishment.--The Secretary may establish a Gambling 
        Addiction Research Advisory Committee (in this paragraph 
        referred to as the ``Committee'') within the National 
        Institutes of Health to coordinate research conducted or 
        supported by the Department of Health and Human Services on 
        gambling addiction.
            (2) Membership.--The Committee shall include 
        representatives of the National Institute on Drug Abuse, the 
        National Institute of Mental Health, the National Institute on 
        Alcohol Abuse and Alcoholism, the Indian Health Service, the 
        Substance Abuse and Mental Health Services Administration, and 
        the Centers for Disease Control and Prevention.
            (3) Annual report.--The Committee shall prepare and submit 
        to the Secretary an annual report on the research described in 
        paragraph (1).
    (c) Surveillance of Gambling Addiction.--Title III of the Public 
Health Service Act is amended by inserting after section 317T of such 
Act (42 U.S.C. 247b-22) the following:

``SEC. 317U. SURVEILLANCE OF GAMBLING ADDICTION.

    ``(a) In General.--The Secretary, acting through the Director of 
the Centers for Disease Control and Prevention and in coordination with 
other appropriate agencies, shall, as appropriate--
            ``(1) enhance and expand infrastructure and activities to 
        track the epidemiology of gambling addiction; and
            ``(2) incorporate information obtained through such 
        infrastructure and activities into an integrated surveillance 
        system, which may consist of or include a registry, to be known 
        as the National Gambling Addiction Surveillance System.
    ``(b) Research.--The Secretary shall ensure that the National 
Gambling Addiction Surveillance System, if established, is designed in 
a manner that facilitates further research on gambling addiction.
    ``(c) Public Access.--Subject to subsection (d), the Secretary 
shall ensure that information and analysis in the National Gambling 
Addiction Surveillance System, if established, are available, as 
appropriate, to the public, including researchers.
    ``(d) Privacy.--The Secretary shall ensure that information and 
analysis in the National Gambling Addiction Surveillance System, if 
established, are made available only to the extent permitted by 
applicable Federal and State law, and in a manner that protects 
personal privacy, to the extent required by applicable Federal and 
State privacy law, at a minimum.
    ``(e) Authorization of Appropriations.--To carry out this section, 
there is authorized to be appropriated $5,000,000 for each of fiscal 
years 2018 through 2022.''.

SEC. 6. DEFINITIONS.

    In this Act:
            (1) Amateur sports organization.--The term ``amateur sports 
        organization'' means--
                    (A) a person or governmental entity that sponsors, 
                organizes, schedules, or conducts a competitive game in 
                which one or more amateur athletes participate; or
                    (B) a league or association of persons or 
                governmental entities described in subparagraph (A).
            (2) Bet or wager.--
                    (A) In general.--The term ``bet or wager'' means 
                the staking or risking by any person of something of 
                value, including virtual currency and actual or virtual 
                items that can be sold or otherwise exchanged for cash 
                at the gaming facility or elsewhere, upon the outcome 
                of a contest of others, a sporting event, a game 
                subject to chance, or a game in which the outcomes 
                reflect the relative knowledge and skill of the 
                participants, upon an agreement or understanding that 
                the person or another person will receive something of 
                value in the event of a certain outcome.
                    (B) Inclusions.--Such term includes the following:
                            (i) The purchase of a chance or opportunity 
                        to win a lottery or other prize.
                            (ii) Any lottery, sweepstakes, or other 
                        betting, gambling, or wagering scheme based, 
                        directly or indirectly (through the use of 
                        geographical references or otherwise), on one 
                        or more competitive games in which amateur or 
                        professional athletes participate, or are 
                        intended to participate, or on one or more 
                        performances of such athletes in such games.
                            (iii) Any instructions or information 
                        pertaining to the establishment or movement of 
                        funds by the bettor or customer in, to, or from 
                        an account with the business of betting or 
                        wagering.
                            (iv) Participation in any fantasy or 
                        simulation sports or e-sports game or contest, 
                        including those in which (if the game or 
                        contest involves a team or teams) no fantasy or 
                        simulation sports team is based on the current 
                        membership of an actual team that is a member 
                        of an amateur sports organization or 
                        professional sports organization and including 
                        those that meet any of the following 
                        conditions:
                                    (I) All prizes and awards offered 
                                to winning participants are established 
                                and made known to the participants in 
                                advance of the game or contest and 
                                their value is not determined by the 
                                number of participants or the amount of 
                                any fees paid by those participants.
                                    (II) All winning outcomes reflect 
                                the relative knowledge and skill of the 
                                participants and are determined 
                                predominantly by accumulated 
                                statistical results of the performance 
                                of individuals (athletes in the case of 
                                sports events) in multiple real-world 
                                sporting or other events.
                                    (III) No winning outcome is based--
                                            (aa) on the score, point-
                                        spread, or any performance or 
                                        performances of any single 
                                        real-world team or any 
                                        combination of such teams; or
                                            (bb) solely on any single 
                                        performance of an individual 
                                        athlete in any single real-
                                        world sporting or other event.
                    (C) Exclusions.--Such term does not include the 
                following:
                            (i) Any activity governed by the securities 
                        laws (as defined in section 3(a) of the 
                        Securities Exchange Act of 1934 (15 U.S.C. 
                        78c(a))) for the purchase or sale of securities 
                        (as defined in such section).
                            (ii) Any transaction conducted on or 
                        subject to the rules of a registered entity or 
                        exempt board of trade under the Commodity 
                        Exchange Act (7 U.S.C. 1 et seq.).
                            (iii) Any over-the-counter derivative 
                        instrument.
                            (iv) Any other transaction that--
                                    (I) is excluded or exempt from 
                                regulation under the Commodity Exchange 
                                Act; or
                                    (II) is exempt from State gaming or 
                                bucket shop laws under section 12(e) of 
                                the Commodity Exchange Act (7 U.S.C. 
                                16(e)) or section 28(a) of the 
                                Securities Exchange Act of 1934 (15 
                                U.S.C. 78bb(a)).
                            (v) Any contract of indemnity or guarantee.
                            (vi) Any contract for insurance.
                            (vii) Any deposit or other transaction with 
                        an insured depository institution.
                            (viii) Participation in any game or contest 
                        in which participants do not stake or risk 
                        anything of value other than--
                                    (I) personal efforts of the 
                                participants in playing the game or 
                                contest or obtaining access to the 
                                internet; or
                                    (II) points or credits that the 
                                sponsor of the game or contest provides 
                                to participants free of charge that can 
                                be used or redeemed only for 
                                participation in games or contests 
                                offered by the sponsor and that cannot 
                                be sold or otherwise exchanged for cash 
                                at the gaming facility or elsewhere.
            (3) Business of betting or wagering.--The term ``business 
        of betting or wagering'' does not include the activities of a 
        person who is--
                    (A) a financial transaction provider, to the extent 
                such person is acting as such a provider, except with 
                respect to an activity described in paragraph 
                (10)(C)(ii); or
                    (B) a provider of an interactive computer service 
                or telecommunications service, to the extent such 
                person is acting as such a provider, except with 
                respect to an activity described in paragraph 
                (10)(C)(ii).
            (4) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (5) Credit; creditor; and card issuer.--The terms 
        ``credit'', ``creditor'', and ``card issuer'' have the meanings 
        given the terms in section 103 of the Truth in Lending Act (15 
        U.S.C. 1602).
            (6) Electronic fund transfer.--The term ``electronic fund 
        transfer''--
                    (A) has the meaning given the term in section 903 
                of the Electronic Fund Transfer Act (15 U.S.C. 1693a), 
                except that the term includes transfers that would 
                otherwise be excluded under section 903(7)(E) of that 
                Act; and
                    (B) includes any fund transfer covered by Article 
                4A of the Uniform Commercial Code, as in effect in any 
                State.
            (7) E-sports.--The term ``e-sports'' means a multiplayer 
        video game played competitively for spectators.
            (8) Financial institution.--The term ``financial 
        institution'' has the meaning given the term in section 903 of 
        the Electronic Fund Transfer Act (15 U.S.C. 1693a), except that 
        such term does not include a casino, sports book, or other 
        business at or through which a bet or wager may be placed or 
        received.
            (9) Financial transaction provider.--The term ``financial 
        transaction provider'' means a creditor, card issuer, financial 
        institution, operator of a terminal at which an electronic fund 
        transfer may be initiated, money transmitting business, or 
        international, national, regional, or local payment network 
        utilized to effect a credit transaction, electronic fund 
        transfer, stored value product transaction, or money 
        transmitting service, or a participant in such network, or 
        other participant in a system utilized by an entity described 
        in this paragraph that could be utilized in connection with, or 
        to facilitate, any transaction described in paragraph 
        (10)(A)(iii).
            (10) Gaming activity.--
                    (A) In general.--The term ``gaming activity'' 
                means--
                            (i) placing, receiving, or otherwise 
                        transmitting a bet or wager;
                            (ii) transmitting--
                                    (I) information assisting in the 
                                placing of a bet or wager; or
                                    (II) a wire communication which 
                                entitles the recipient to receive money 
                                or credit--
                                            (aa) as a result of a bet 
                                        or wager; or
                                            (bb) for information 
                                        assisting in the placing of a 
                                        bet or wager;
                            (iii) the knowing acceptance, by any person 
                        engaged in the business of betting or wagering, 
                        in connection with the placing, receiving, or 
                        otherwise transmitting of a bet or wager by 
                        another person, of credit or payment of any 
                        type; or
                            (iv) sponsoring, operating, advertising, or 
                        promoting (or, in the case of a governmental 
                        entity, sponsoring, operating, advertising, 
                        promoting, licensing, or authorizing by law or 
                        compact) a lottery, sweepstakes, or other 
                        betting, gambling, or wagering scheme based, 
                        directly or indirectly (through the use of 
                        geographical references or otherwise), on one 
                        or more competitive games in which amateur or 
                        professional athletes participate, or are 
                        intended to participate, or on one or more 
                        performances of such athletes in such games.
                    (B) Exclusions.--Such term does not include any 
                activity or transaction described in paragraph (2)(C) 
                or, in the case of a contract or other instrument 
                described in such paragraph, any activity or 
                transaction relating to such contract or other 
                instrument.
                    (C) Financial transaction providers and providers 
                of interactive computer service or telecommunications 
                service.--
                            (i) Generally excluded.--Except as provided 
                        in clause (ii), such term does not include any 
                        activity of a person who is--
                                    (I) a financial transaction 
                                provider, to the extent such person is 
                                acting as such a provider; or
                                    (II) a provider of an interactive 
                                computer service or telecommunications 
                                service, to the extent such person is 
                                acting as such a provider.
                            (ii) Operation of gaming websites or other 
                        facilities.--Notwithstanding clause (i), such 
                        term includes an activity of a financial 
                        transaction provider or provider of an 
                        interactive computer service or 
                        telecommunications service to the extent that 
                        such provider has actual knowledge and control 
                        of bets or wagers and--
                                    (I) operates, manages, supervises, 
                                or directs a website or other facility 
                                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 and whether or not 
                                the transmissions cross State 
                                boundaries; or
                                    (II) owns or controls, or is owned 
                                or controlled by, any person who 
                                operates, manages, supervises, or 
                                directs a website or other facility 
                                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 and whether or not 
                                the transmissions cross State 
                                boundaries.
            (11) Gaming facility.--
                    (A) In general.--The term ``gaming facility'' 
                means--
                            (i) a facility that permits bets or wagers 
                        to be placed in a casino, on a riverboat, at a 
                        race track, or in another facility that hosts 
                        gaming activity in one physical location; or
                            (ii) a website or other facility 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 and whether or not the transmissions 
                        cross State boundaries.
                    (B) Exclusions.--Such term does not include any 
                facility to the extent such facility is engaged in an 
                activity or transaction that is excluded from the 
                definition of ``gaming activity'' by subparagraph (B) 
                or (C) of paragraph (10).
            (12) Governmental entity.--The term ``governmental entity'' 
        means a State, a political subdivision of a State, or an entity 
        or organization, including an entity or organization described 
        in section 4(5) of the Indian Gaming Regulatory Act (25 U.S.C. 
        2703(5)), that has governmental authority within the 
        territorial boundaries of the United States, including on lands 
        described in section 4(4) of such Act (25 U.S.C. 2703(4)).
            (13) Insured depository institution.--The term ``insured 
        depository institution''--
                    (A) has the meaning given the term in section 3(c) 
                of the Federal Deposit Insurance Act (12 U.S.C. 
                1813(c)); and
                    (B) includes an insured credit union (as defined in 
                section 101 of the Federal Credit Union Act (12 U.S.C. 
                1752)).
            (14) Interactive computer service.--The term ``interactive 
        computer service'' has the meaning given such term in section 
        230(f) of the Communications Act of 1934 (47 U.S.C. 230(f)).
            (15) Money transmitting business and money transmitting 
        service.--The terms ``money transmitting business'' and ``money 
        transmitting service'' have the meanings given the terms in 
        section 5330(d) of title 31, United States Code (determined 
        without regard to any regulations prescribed by the Secretary 
        of the Treasury thereunder).
            (16) Professional sports organization.--The term 
        ``professional sports organization'' means--
                    (A) a person or governmental entity that sponsors, 
                organizes, schedules, or conducts a competitive game in 
                which one or more professional athletes participate; or
                    (B) a league or association of persons or 
                governmental entities described in subparagraph (A).
            (17) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (18) State.--The term ``State'' means each of the several 
        States, the District of Columbia, each commonwealth, territory, 
        or possession of the United States, and each federally 
        recognized Indian Tribe.
            (19) Telecommunications service.--The term 
        ``telecommunications service'' has the meaning given such term 
        in section 3 of the Communications Act of 1934 (47 U.S.C. 153).

SEC. 7. EFFECT ON OTHER LAW.

    (a) No Effect on State Law or Tribal-State Compacts Relating to 
Gambling.--Nothing in this Act shall be construed as altering, 
limiting, or extending any State law or Tribal-State compact 
prohibiting, permitting, or regulating gambling within the United 
States.
    (b) No Effect on Indian Gaming Regulatory Act.--Nothing in this Act 
shall be construed to have any effect on a gaming activity within the 
scope of the Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.), any 
successor provision of such Act, or any Tribal-State compact or 
authority pursuant to such Act or successor provision.
    (c) No Effect on Illegal Gambling Business Act.--Nothing in this 
Act shall be construed to supersede or otherwise limit section 1955 of 
title 18, United States Code (commonly referred to as the Illegal 
Gambling Business Act).
    (d) No Effect on Interstate Horse Racing Act.--Nothing in this Act 
shall be construed to supersede or otherwise limit the Interstate Horse 
Racing Act of 1978 (15 U.S.C. 3001 et seq.).

SEC. 8. REPEAL.

    (a) In General.--Chapter 178 of title 28, United States Code 
(commonly referred to as the Professional and Amateur Sports Protection 
Act) is repealed.
    (b) Clerical Amendment.--The table of chapters for part VI of title 
28, United States Code, is amended by striking the item relating to 
chapter 178.
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