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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2666 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 2666

 To establish a program for the licensing of Internet poker by States 
    and federally recognized Indian tribes, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 11, 2013

  Mr. Barton introduced the following bill; which was referred to the 
 Committee on Energy and Commerce, and in addition to the Committee on 
 Financial Services, 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 establish a program for the licensing of Internet poker by States 
    and federally recognized Indian tribes, 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 Poker 
Freedom Act of 2013''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
 TITLE I--PROHIBITION ON UNLICENSED INTERNET POKER AND PROTECTIONS FOR 
                        INTERNET POKER CONSUMERS

Sec. 101. Definitions.
Sec. 102. Prohibition on unlicensed Internet poker.
Sec. 103. Department of Commerce qualification and oversight of 
                            Qualified Regulatory Authorities.
Sec. 104. Licensing by Qualified Regulatory Authorities.
Sec. 105. Enforcement.
Sec. 106. Compulsive gaming, responsible gaming, and self-exclusion 
                            program requirements.
Sec. 107. Prohibitions and restrictions.
Sec. 108. Safe harbor.
Sec. 109. Relation to subchapter IV of chapter 53 of title 31, United 
                            States Code.
Sec. 110. Cheating and other fraud.
Sec. 111. Construction and relation to other law.
Sec. 112. Regulations.
Sec. 113. Annual reports.
Sec. 114. Effective date.
 TITLE II--STRENGTHENING OF UNLAWFUL INTERNET GAMBLING ENFORCEMENT ACT 
                                OF 2006

Sec. 201. Financial transaction providers.
Sec. 202. List of unlicensed Internet gambling enterprises.
Sec. 203. Regulations.
Sec. 204. Conforming amendments.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Since the development of the Internet, online Web sites 
        offering Internet poker have raised numerous policy, consumer 
        protection, and enforcement concerns for Federal, State, and 
        tribal governments as such Web sites are run by operators 
        located in many different countries and have sought to attract 
        customers from the United States.
            (2) The Unlawful Internet Gambling Enforcement Act of 2006 
        (title VIII of Public Law 109-347; 120 Stat. 1952) was intended 
        to aid enforcement efforts against unlawful Internet operators 
        and to limit unlawful Internet gaming involving United States 
        persons. However, that Act has only been partially successful 
        in doing so.
            (3) There is uncertainty about the laws of the United 
        States governing Internet poker, though not about laws 
        governing Internet sports betting. In United States v. 
        DiCristina a Federal District Court for the Eastern District of 
        New York held that poker is a game in which skill is the 
        predominant factor in determining the outcome and that in 
        passing the Illegal Gambling Businesses Act, Congress only 
        intended to criminalize clear games of chance.
            (4) Additional tools to assist law enforcement in the 
        prevention of unlawful Internet gaming activities would be 
        important and beneficial. Maintenance of a list of unlicensed 
        Internet poker enterprises and the owners, operators, and key 
        personnel of such enterprises (as well as entities and related 
        personnel found unsuitable) would aid those law enforcement 
        efforts and would make the Unlawful Internet Gambling 
        Enforcement Act more effective.
            (5) Poker is distinct from the class of games of chance 
        traditionally defined as gambling in that players compete 
        against each other, and not the person or entity hosting the 
        game (sometimes called ``the house''), and that over any 
        significant interval the outcome of a poker game is 
        predominantly determined by the skill of the participants.
            (6) United States consumers would benefit from a program of 
        Internet poker regulation which recognizes the interstate 
        nature of the Internet, but nevertheless preserves the 
        prerogatives of States and federally recognized Indian tribes. 
        Such a system would require strict licensing of Internet poker 
        providers and would require licensee operators to--
                    (A) have effective means to prevent minors from 
                playing poker on-line;
                    (B) identify and help treat problem gamblers;
                    (C) prevent minors and players in non-participating 
                States;
                    (D) allow players to self-exclude and limit losses; 
                and
                    (E) prevent money laundering.
            (7) Such a program would create a new industry within the 
        United States creating thousands of jobs and substantial 
        revenue for Federal, State, and tribal governments.

 TITLE I--PROHIBITION ON UNLICENSED INTERNET POKER AND PROTECTIONS FOR 
                        INTERNET POKER CONSUMERS

SEC. 101. DEFINITIONS.

    As used in this title, the following definitions apply:
            (1) Applicant.--The term ``applicant'' means any person who 
        has applied for a license pursuant to 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) Interstate horseracing.--A bet or wager 
                        that is permissible under the Interstate 
                        Horseracing Act of 1978 (15 U.S.C. 3001 et 
                        seq.).
                            (ii) Certain intrastate transactions.--
                        Placing, receiving, or otherwise transmitting a 
                        bet or wager--
                                    (I) as described in subparagraph 
                                (B) of section 5362(10) of title 31, 
                                United States Code, and clarified by 
                                subparagraph (E) of such section; and
                                    (II) authorized under a license 
                                that was issued by a regulatory body of 
                                a State or federally recognized Indian 
                                tribe on or before the date of 
                                enactment of this Act.
                            (iii) Intrastate lottery transactions.--A 
                        bet or wager that is--
                                    (I) a chance or opportunity to win 
                                a lottery or other prize (which 
                                opportunity to win is predominantly 
                                subject to chance) authorized by a 
                                State or federally recognized Indian 
                                tribe; and
                                    (II) a placing, receiving, or 
                                transmitting of a bet or wager as 
                                described in such subparagraph (B) and 
                                clarified by subparagraph (E) of such 
                                section 5362(10).
                            (iv) Intratribal transactions.--Placing, 
                        receiving, or otherwise transmitting a bet or 
                        wager as described in subparagraph (C) of such 
                        section 5362(10), as clarified by such 
                        subparagraph (E).
            (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 federally recognized 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 federally recognized 
                Indian tribes.
            (4) Casino gaming facility.--The term ``casino gaming 
        facility'' means a facility that provides casino gaming on a 
        riverboat, at a race track, or in another facility that hosts 
        gaming devices in one physical location pursuant to a duly 
        authorized license issued by a gaming regulatory authority of a 
        State or Indian tribe and has not fewer than 500 slot machines.
            (5) Commission.--The term ``Commission'' means the National 
        Indian Gaming Commission.
            (6) 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 federally 
                recognized Indian tribe.
                    (B) Exceptions.--The term ``gaming device'' does 
                not include--
                            (i) machines that process bets or wagers 
                        for parimutuel betting pools or class II gaming 
                        devices qualified under section 4 of the Indian 
                        Gaming Regulatory Act (25 U.S.C. 2703); or
                            (ii) a personal computer.
            (7) Independent testing laboratory.--The term ``independent 
        testing laboratory'' means a testing laboratory that is 
        accredited by an international accreditation body approved by 
        the Secretary and is not owned or controlled by an Internet 
        gaming facility, an electronic gambling equipment vendor, 
        manufacturer, or retailer, or an Internet gambling operator.
            (8) Indian lands and federally recognized indian tribe.--
        The terms ``Indian lands'' and ``federally recognized Indian 
        tribe'' have the meanings given the terms ``Indian lands'' and 
        ``Indian tribes'', respectively, in section 4 of the Indian 
        Gaming Regulatory Act (25 U.S.C. 2703).
            (9) Internet.--The term ``Internet'' has the meaning given 
        the term in section 5362 of title 31, United States Code.
            (10) Internet poker.--The term ``Internet poker'' means a 
        poker game, hand, tournament, or other contest of poker offered 
        through the use of an Internet poker facility.
            (11) Internet poker facility.--The term ``Internet poker 
        facility'' means an Internet Web site, or similar 
        communications facility in which transmissions may cross State 
        boundaries, through which a bet or wager is initiated, 
        received, or otherwise made, solely with respect to a game, 
        hand, tournament, or other contest of poker, whether 
        transmitted by telephone, Internet, satellite, or other wire or 
        wireless communication facility, service, or medium.
            (12) Licensee.--The term ``licensee'' means a person who 
        operates an Internet poker facility under a license issued by a 
        qualified regulatory authority pursuant to this title.
            (13) Operate an internet poker facility.--The term 
        ``operate an Internet poker facility'' means to conduct, 
        direct, manage, own, supervise, or control an Internet poker 
        facility.
            (14) Poker.--The term ``poker'' means any of several card 
        games commonly known as poker in which players compete against 
        each other, and not against any person, entity, or fellow 
        player hosting the game (sometimes called ``the house''), the 
        outcome of which, over any significant interval, is 
        predominantly determined by the skill of the players.
            (15) Qualified regulatory authority.--The term ``qualified 
        regulatory authority'' means--
                    (A) a State agency or regulatory body that has been 
                designated as a qualified regulatory authority under 
                section 103(c);
                    (B) the designated regulatory authority of a 
                federally recognized Indian tribe authorized to game 
                under the Indian Gaming Regulatory Act and designated 
                as a qualified regulatory authority under section 
                103(c); or
                    (C) the Office of Internet Poker Oversight 
                established under section 103(b).
            (16) Qualified card room.--The term ``qualified card room'' 
        means a facility that has been licensed by a State or federally 
        recognized Indian tribe to provide at least 175 tables in one 
        physical facility for bets or wagers on poker.
            (17) 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 poker facility, 
                including by any significant vendor to such operator, 
                to--
                            (i) register a person's participation in 
                        Internet poker and to store information 
                        relating thereto;
                            (ii) present to persons who are 
                        participating or who may participate in 
                        Internet poker the game that is to be played;
                            (iii) determine all or part of, or the 
                        effect of, a result relevant to a game, hand, 
                        tournament, or other contest of Internet poker 
                        and to store information relating thereto;
                            (iv) accept payment with respect to 
                        Internet poker from the player; or
                            (v) authorize payment of any winnings in 
                        respect of Internet poker.
                    (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 poker 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.
            (18) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.
            (19) 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, trade names, service 
                marks, or similar intellectual property under which a 
                licensee identifies its Internet poker facility to its 
                customers in the United States;
                    (E) sells, licenses, or otherwise receives 
                compensation for selling or licensing information via a 
                database or customer list on individuals in the United 
                States selected in whole or in part because they made 
                bets or wagers with an Internet gambling facility not 
                licensed either pursuant to this title or by a State or 
                federally recognized Indian tribe as permitted under 
                this title;
                    (F) provides any products, services, or assets to a 
                licensee and is paid a percentage of gaming revenue or 
                Internet poker 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 (E).
            (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. 102. PROHIBITION ON UNLICENSED INTERNET POKER.

    (a) Prohibition.--
            (1) In general.--It shall be unlawful for a person to 
        operate an Internet poker facility without a license in good 
        standing issued to such person by a qualified regulatory 
        authority under this title.
            (2) Exception.--Paragraph (1) shall not apply to the 
        operation of an Internet poker facility by a person located 
        outside the United States in which bets or wagers are 
        initiated, received, or otherwise made 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 5 years, or both.

SEC. 103. DEPARTMENT OF COMMERCE QUALIFICATION AND OVERSIGHT OF 
              QUALIFIED REGULATORY AUTHORITIES.

    (a) Commerce Responsibilities and Powers.--The Secretary, in the 
case of a State, and the Commission, in the case of a federally 
recognized Indian tribe, shall have responsibility and authority for 
the following activities:
            (1) Reviewing and qualifying regulatory authorities to 
        issue licenses under this title.
            (2) Exercising oversight over qualified regulatory 
        authorities to ensure that such authorities--
                    (A) comply with the requirements of this title; and
                    (B) carry out their regulatory and enforcement 
                functions under this title with appropriate diligence.
            (3) Investigating and taking appropriate remedial action 
        with respect to any qualified regulatory authority.
            (4) Prescribing such regulations as may be necessary to 
        administer and enforce the provisions of this title.
    (b) Office of Internet Poker Oversight.--
            (1) Establishment.--The Secretary shall establish an office 
        in the Department of Commerce to be known as the ``Office of 
        Internet Poker Oversight'' (in this subsection referred to as 
        the ``office'') to exercise the functions of the Secretary set 
        out in this title.
            (2) Director and delegation of authority.--The Secretary 
        shall appoint a Director of the office from among individuals 
        who have demonstrated experience and expertise in regulating 
        gaming activities and may delegate to the Director any 
        authority, duty, or responsibility conferred upon the Secretary 
        by this title.
    (c) Designation of Qualified Regulatory Authorities.--
            (1) Qualification of regulatory authorities.--The 
        Secretary, in the case of a State, or the Commission, in the 
        case of a federally recognized Indian tribe, shall qualify any 
        regulatory authority that is designated to the Secretary or the 
        Commission by a State or federally recognized Indian tribe, 
        respectively, that wishes to participate in the licensing 
        program to carry out the licensing and other functions under 
        this title if the Secretary, in the case of a State, or the 
        Commission, in the case of a federally recognized Indian tribe, 
        determines that such regulatory authority meets the minimum 
        standards for qualification prescribed under paragraph (2).
            (2) Minimum standards for qualified regulatory 
        authorities.--The Secretary, in consultation with the National 
        Indian Gaming Commission, shall prescribe minimum standards for 
        qualifying a qualified regulatory authority under this 
        subsection, including minimum standards--
                    (A) relating to the size and qualification of staff 
                of the regulatory authority to ensure a sufficient 
                number of enforcement agents with experience in gaming 
                regulatory enforcement areas to discharge its intended 
                functions and that the applicant have the 
                sophistication and resources necessary to evaluate 
                issues unique to the Internet environment;
                    (B) relating to the length of time the applicant 
                has regulated other forms of gaming to ensure 
                designations of only those applicants that have a 
                history of demonstrated regulatory enforcement and 
                oversight commensurate with the responsibilities 
                imposed under this title;
                    (C) for assessing the applicant's experience and 
                willingness to work with Federal authorities, including 
                the Financial Crimes Enforcement Network;
                    (D) prohibiting conflicts of interest to ensure 
                that qualified regulatory authorities are not 
                controlled, directly or indirectly, by persons that 
                have any significant ownership interest in entities 
                regulated under this title;
                    (E) for the capacity and experience of a qualified 
                regulatory authority in conducting rigorous suitability 
                reviews;
                    (F) for the enforcement and regulatory authorities 
                provided to the applicant under the law of the 
                applicable State or federally recognized Indian tribe, 
                including investigative authority, authority to impose 
                requirements on licensees, and authority to impose 
                civil or other penalties; and
                    (G) the Secretary, in consultation with the 
                Commission considers relevant to the ability of a 
                regulatory authority to serve as an effective qualified 
                regulatory authority.
            (3) Withdrawal of qualification.--
                    (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, in 
                the case of a State, or the Commission, in the case of 
                a federally recognized Indian tribe, may, after 
                providing 60 days notice to a qualified regulatory 
                authority, withdraw the qualification of such 
                regulatory authority under this section if the 
                Secretary or Commission, respectively, determines that 
                the regulatory authority is not in compliance with the 
                minimum standards established under paragraph (2) or 
                other requirements of this title.
                    (B) Opportunity to comply.--The Secretary, in the 
                case of a State, or the Commission, in the case of a 
                federally recognized Indian tribe, may provide a 
                qualified regulatory authority who receives notice 
                under subparagraph (A) with an opportunity to come into 
                compliance for a period of not more than 180 days. The 
                Secretary, in the case of a State, or the Commission, 
                in the case of a federally recognized Indian tribe, may 
                extend such period by not more than 180 additional days 
                if the qualified regulatory authority has made 
                substantial progress toward compliance as of the 
                expiration of the first 180-day period.
                    (C) Effect of notice.--A qualified regulatory 
                authority that receives notice under subparagraph (A) 
                may not issue any new licenses under this title until 
                the Secretary, in the case of a State, or the 
                Commission, in the case of a federally recognized 
                Indian tribe, determines that the qualified regulatory 
                authority is in compliance with the requirements of 
                this title and regulations prescribed thereunder.
                    (D) Right to appeal.--A qualified regulatory 
                authority that has had its qualification withdrawn 
                under this paragraph may appeal to the United States 
                District Court for the District of Columbia that such 
                withdrawal was an abuse of discretion.
            (4) Action upon withdrawal of qualification.--
                    (A) In general.--Except as provided in subparagraph 
                (B), not later than 30 days after the date on which the 
                Secretary, in the case of a State, or the Commission, 
                in the case of a federally recognized Indian tribe, 
                withdraws the qualification of a qualified regulatory 
                authority under paragraph (3), each person with a 
                license issued by the qualified regulatory authority 
                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 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 regulatory authority.
                    (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 regulatory 
                authority.
                    (C) Interim regulatory oversight.--Until final 
                action is taken under subparagraph (B) with respect to 
                a person, the Secretary, in the case of a State, or the 
                Commission, in the case of a federally recognized 
                Indian tribe, shall have enforcement and regulatory 
                authority over the licensed activities of such person.
    (d) Oversight of Qualified Regulatory Authorities.--The Secretary, 
in the case of a State, or the Commission, in the case of a federally 
recognized Indian tribe, may investigate and take such action as the 
Secretary considers appropriate with respect to any qualified 
regulatory authority that appears, based upon the Secretary's or 
Commission's own inquiry or based upon credible information provided by 
other persons, including licensees or law enforcement officials, to be 
deficient or substantially less rigorous than other qualified 
regulatory authorities in the discharge of its responsibilities under 
this title.
    (e) Consultation With Federally Recognized Indian Tribes.--In 
implementing this title, the Secretary and the Commission shall conduct 
meaningful consultation with federally recognized Indian tribes 
regarding all aspects of this title which affect federally recognized 
Indian tribes.

SEC. 104. LICENSING BY QUALIFIED REGULATORY AUTHORITIES.

    (a) Internet Poker Facility Licensing Program.--
            (1) Authority to operate internet poker facility under 
        valid license.--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 poker 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.
            (2) Significant vendors.--If a person seeks a certificate 
        of suitability from a qualified regulatory authority to provide 
        services to a licensee or applicant as a significant vendor 
        with respect to an Internet poker facility, such person shall 
        not be required to obtain a license under this title to provide 
        such services with respect to that Internet poker facility.
            (3) Prohibitions imposed by states or federally recognized 
        indian tribes.--
                    (A) Action by a state.--No licensee may engage, 
                under any license issued under this title, in the 
                operation of an Internet poker facility that knowingly 
                accepts bets or wagers initiated by persons who reside 
                in any State which provides notice that it will 
                prohibit such bets or wagers, if the Governor or other 
                chief executive officer of such State informs the 
                Secretary of such prohibition in a letter that 
                identifies the nature and extent of such prohibition.
                    (B) Changes to state prohibitions.--The 
                establishment, repeal, or amendment by a State of any 
                prohibition described in subparagraph (A) shall apply, 
                for purposes of this title, beginning on the day that 
                occurs after the end of the 60-day period beginning on 
                the later of--
                            (i) the date a notice of such 
                        establishment, repeal, or amendment is provided 
                        by the Governor or other chief executive 
                        officer of such State in writing to the 
                        Secretary; or
                            (ii) the effective date of such 
                        establishment, repeal, or amendment.
                    (C) Application of state action to tribal lands of 
                federally recognized indian tribes.--Any State 
                prohibition described in subparagraph (A) shall not 
                apply to the acceptance by a licensee of bets or wagers 
                from persons located within the tribal lands of a 
                federally recognized Indian tribe that--
                            (i) has itself not opted out pursuant to 
                        subsection (b); or
                            (ii) would be entitled pursuant to other 
                        applicable law to permit such bets or wagers to 
                        be initiated and received within its territory 
                        without use of the Internet.
                    (D) Actions by a federally recognized indian 
                tribe.--No Internet poker licensee knowingly may accept 
                a bet or wager from a person located in the tribal 
                lands of any federally recognized Indian tribe which 
                prohibits such gambling activities or other contests if 
                the principal chief or other chief executive officer of 
                such federally recognized Indian tribe informs the 
                Secretary of such prohibition in a letter that 
                identifies the nature and extent of such prohibition.
                    (E) Changes to state and federally recognized 
                indian tribe prohibitions.--The establishment, repeal, 
                or amendment by any federally recognized Indian tribe 
                of any prohibition referred to in subparagraph (D) 
                shall apply, for purposes of this title, beginning on 
                the day that occurs after the end of the 60-day period 
                beginning on the later of--
                            (i) the date a notice of such 
                        establishment, repeal, or amendment is provided 
                        by the principal chief or other chief executive 
                        officer of such federally recognized Indian 
                        tribe in writing to the Secretary; or
                            (ii) the effective date of such 
                        establishment, repeal, or amendment.
                    (F) Notification and enforcement of state and tribe 
                prohibitions.--
                            (i) Notification and measures to ensure 
                        compliance.--The Secretary shall notify all 
                        licensees and applicants of all States and 
                        federally recognized Indian tribes that have 
                        provided notice pursuant to subparagraph 
                        (A)(ii) or (C)(ii), as the case may be, 
                        promptly upon receipt of such notice and in no 
                        event fewer than 30 days before the effective 
                        date of such notice. The Secretary shall take 
                        effective measures to ensure that any licensee 
                        under this subchapter, as a condition of the 
                        license, complies with any limitation or 
                        prohibition imposed by any State or federally 
                        recognized Indian tribe to which the licensee 
                        is subject.
                            (ii) Violations.--A violation of 
                        subparagraph (A) or (C) shall be a violation of 
                        this title enforceable under section 105.
    (b) Application for License.--
            (1) Application.--Except as provided in subparagraph (B), a 
        person seeking to operate an Internet poker facility under this 
        title shall submit to the qualified regulatory authority of the 
        State or federally recognized Indian tribe where servers for 
        such Internet poker facility are located or will be located an 
        application for a license at such time, in such form, and in 
        such manner as the qualified regulatory authority 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 
                        regulatory authority considers appropriate.
                    (D) Such other information as may be necessary for 
                the suitability analysis required under subsection (c).
                    (E) Disclosure of all other applications for 
                licenses previously or simultaneously submitted under 
                this paragraph to other qualified regulatory 
                authorities 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.
                    (G) A certification by the applicant that the 
                applicant agrees to be subject to--
                            (i) jurisdiction in Federal courts and in 
                        the courts of the State or federally recognized 
                        Indian tribe of the qualified regulatory 
                        authority to which the applicant has applied; 
                        and
                            (ii) all applicable provisions of Federal 
                        law.
            (2) Notice to the secretary.--Each qualified regulatory 
        authority 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. Such report shall include such 
        information or documentation as the Secretary may require.
    (c) Standards for License Issuance; Suitability Qualifications and 
Disqualification Standards.--
            (1) Suitability for licensing.--No applicant shall be 
        eligible to obtain a license under this title unless a 
        qualified regulatory authority, 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 deemed to be in control of the applicant, 
        all significant vendors of the applicant, and any other person 
        determined by the qualified regulatory authority as having 
        significant influence on the applicant are suitable for 
        licensing or for receiving a certificate of suitability as 
        applicable.
            (2) Investigation.--
                    (A) Determination of suitability.--Prior to issuing 
                a license under this section, a qualified regulatory 
                authority shall conduct the investigation and analysis 
                described in paragraph (1) to determine whether the 
                applicant or person--
                            (i) is a person of good character, honesty, 
                        and integrity;
                            (ii) 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 poker 
                                facilities; or
                                    (II) create or enhance the dangers 
                                of unsuitable, unfair, or illegal 
                                practices, methods, and activities in 
                                the conduct of Internet poker 
                                facilities or the carrying on of the 
                                business and financial arrangements 
                                incidental to such facilities;
                            (iii) 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;
                            (iv) with respect to applicants, has or 
                        guarantees acquisition of adequate business 
                        competence and experience in the operation of 
                        casino gaming facilities or Internet poker 
                        facilities;
                            (v) with respect to applicants, has or will 
                        obtain sufficient financing for the nature of 
                        the proposed operation and from a source that 
                        the qualified regulatory authority has not 
                        found unsuitable under the criteria established 
                        under subparagraph (B); and
                            (vi) has disclosed to the qualified 
                        regulatory authority all known affiliations or 
                        relationships, whether direct or indirect.
                    (B) Unsuitable.--An applicant or any other person 
                may not be determined to be suitable under this 
                subsection if the applicant or such person--
                            (i) has failed to provide information and 
                        documentation material to a determination of 
                        suitability for licensing under paragraph (1);
                            (ii) has supplied information which is 
                        untrue or misleading as to a material fact 
                        pertaining to any such determination;
                            (iii) has been convicted of an offense that 
                        is punishable by imprisonment of more than 1 
                        year;
                            (iv) 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;
                            (v) has not certified in writing that the 
                        person submits to personal jurisdiction in the 
                        United States; or
                            (vi) fails to comply with such other 
                        standard as the applicable qualified regulatory 
                        authority considers appropriate.
                    (C) Ineligibility due to prior engagement in 
                unlawful internet poker.--
                            (i) No applicant nor any other person may 
                        be eligible for a license or certificate of 
                        suitability under this section if such 
                        applicant or person has been convicted of 
                        accepting bets or wagers from any other person 
                        through an Internet poker facility in felony 
                        violation of Federal or State law. The 
                        ineligibility of an applicant or other person 
                        under this subparagraph shall terminate on the 
                        date that is 5 years after the date on which 
                        the first license is issued under this section.
                            (ii) No applicant or person who has 
                        purchased the assets of a person described in 
                        clause (i) subsequent to the enactment of this 
                        Act shall be eligible for a license or 
                        certificate of suitability under this section 
                        until the date that is 5 years after the date 
                        on which the first license is issued.
            (3) 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.
            (4) 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 
                regulatory authority 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) Certificates issued by other qualified 
                regulatory authority.--A qualified regulatory authority 
                may, but need not, accept a certificate issued to a 
                significant vendor by another qualified regulatory 
                authority as evidence of the suitability of the 
                significant vendor.
            (5) Other vendors.--
                    (A) Notice.--A licensee shall promptly notify the 
                qualified regulatory authority 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 poker 
                        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 licensee's behalf;
                            (iii) offer bets or wagers under their own 
                        names or brands but using and relying on 
                        licensee's Internet poker 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 regulatory authority 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 regulatory authority 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 regulatory authority 
                        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 
                        regulatory authority determines such person may 
                        pose a threat to the integrity of Internet 
                        poker facilities operated by the applicant or 
                        licensee.
                    (C) Information.--A qualified regulatory authority 
                may require such information from an applicant, 
                licensee, significant vendor or other person identified 
                in this paragraph as the qualified regulatory authority 
                considers necessary to carry out this paragraph.
            (6) Enforcement actions.--
                    (A) In general.--If the Secretary or the qualified 
                regulatory authority 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, fails to 
                meet the suitability requirements of this subsection at 
                any time during the tenure of the license, the 
                Secretary or the qualified regulatory authority may 
                take action to protect the public interest, including, 
                if the Secretary or qualified regulatory authority 
                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 
                regulatory authority 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.
            (7) Administrative provisions.--
                    (A) Background check and investigation.--Each 
                qualified regulatory authority shall establish 
                standards and procedures for conducting background 
                checks and investigations for purposes of this 
                subsection.
                    (B) Privilege.--Any written or oral statement made 
                in the course of an official proceeding of the 
                Secretary or a qualified regulatory authority, 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, is privileged and shall not give rise 
                to liability for defamation or relief in any civil 
                action.
                    (C) Additional privilege.--Notwithstanding section 
                552 of title 5, United States Code, or any other 
                Federal, State, or tribal law to the contrary, any 
                communication or document of an applicant, licensee, 
                significant vendor, or affiliate thereof, which is made 
                or transmitted pursuant to this title to the Secretary 
                or a qualified regulatory authority or any of their 
                agents or employees, except information that is already 
                public, shall be privileged and shall not be disclosed 
                by the Secretary or the qualified regulatory authority 
                without the prior written consent of the applicant, 
                licensee, significant vendor, or affiliate thereof (as 
                applicable), or pursuant to a lawful court order, grand 
                jury subpoena, or similar procedure. To the extent 
                practicable, the Secretary or qualified regulatory 
                authority shall provide timely notice of the 
                proceedings to the applicant, licensee, significant 
                vendor, or affiliate thereof (as applicable).
                    (D) Preservation of privilege recognized under 
                other provisions of law.--Any privilege recognized 
                under any other applicable 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 regulatory authority.
                    (E) Confidentiality.--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 regulatory authority without a lawful court 
                order or as otherwise expressly required by law, if the 
                communication or document is--
                            (i) required by the Secretary or qualified 
                        regulatory authority 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; or
                            (ii) prepared or obtained by an agent or 
                        employee of the Secretary or qualified 
                        regulatory authority that contains information 
                        described in clause (i).
    (d) Additional Requirements for a License.--In order to obtain a 
license under this section, an Internet poker facility shall 
demonstrate to the qualified regulatory authority that such facility 
maintains appropriate safeguards and mechanisms, in accordance with 
standards established by the qualified regulatory authority, including 
appropriate safeguards and mechanism to--
            (1) ensure, to a reasonable degree of certainty, that the 
        individual placing a bet or wager is not less than 21 years of 
        age;
            (2) ensure, to a reasonable degree of certainty, that the 
        individual placing a bet or wager is physically located in a 
        jurisdiction that has not prohibited such bets or wagers at the 
        time the bet or wager is placed;
            (3) ensure, to a reasonable degree of certainty, that all 
        taxes relating to Internet poker from persons engaged in bets 
        or wagers relating to such Internet poker are collected or 
        reported, as required by law, at the time of any payment of 
        proceeds of such bets or wagers;
            (4) ensure that all taxes relating to the operation of an 
        Internet poker facility from any licensee are collected and 
        disbursed as required by law and that adequate records to 
        enable later audit or verification are maintained;
            (5) prevent, to a reasonable degree of certainty, fraud, 
        money laundering, and terrorist financing;
            (6) ensure, to a reasonable degree of certainty, compliance 
        with the requirements of section 106;
            (7) protect, to a reasonable degree of certainty, the 
        privacy and online security of any person engaged in bets or 
        wagers with the licensee's Internet poker facility;
            (8) ensure that any user fee required under subsection (e) 
        is paid to the qualified regulatory authority;
            (9) ensure, to a reasonable degree of certainty, that 
        Internet poker 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; and
            (10) such other mechanisms and safeguards as the qualified 
        regulatory authority shall require, including independent 
        testing of hardware, software, communication equipment, and 
        other necessary devices to ensure the integrity, 
        accountability, randomness of play and security of the network.
    (e) Fees 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 
                regulatory authority 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 regulatory 
                authority determines is necessary to--
                            (i) meet the qualified regulatory 
                        authority's expenses in carrying out such 
                        administration, review, or examination; and
                            (ii) to cover the qualified regulatory 
                        authority's share of the amount determined by 
                        the Secretary under paragraph (3) to cover the 
                        expenses incurred by the Secretary in carrying 
                        out the provisions of this title.
                    (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) Disposition of user fees.--Amounts assessed by 
                a qualified regulatory authority as user fees under 
                this paragraph shall--
                            (i) be remitted to the Secretary, in the 
                        amount of that State's or federally recognized 
                        Indian tribe's share as determined under 
                        paragraph (3) for deposit in the Treasury in 
                        accordance with subparagraph (B) of such 
                        paragraph; and
                            (ii)(I) be available to the qualified 
                        regulatory authority to cover expenses incurred 
                        by the qualified regulatory authority 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) Collection.--
                            (i) Referral.--If a licensee or significant 
                        vendor fails to pay a user fee to a qualified 
                        regulatory authority under this paragraph after 
                        the assessment of the fee has become final--
                                    (I) the qualified regulatory 
                                authority may recover the amount 
                                assessed by action in any State or 
                                tribal court in the jurisdiction of the 
                                qualified regulatory authority, or in 
                                any appropriate United States district 
                                court, 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.
                            (ii) Assessment reviewable.--In any civil 
                        action under clause (i), a court may review the 
                        validity and adjust the amount of the user 
                        fees.
                    (F) User fees of significant vendors may be paid 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.
            (3) User fees established by secretary.--
                    (A) In general.--The Secretary shall determine the 
                funding requirements necessary to meet the Secretary's 
                cost of administering this title and notify each 
                qualified regulatory authority of its proportional 
                share to be collected by such regulatory authority 
                under paragraph (1)(A).
                    (B) Disposition of user fees.--Amounts remitted to 
                the Secretary under paragraph (1)(D)(i) shall--
                            (i) be deposited into a separate account in 
                        the Treasury to be known as the ``Internet 
                        Poker Oversight Fund''; and
                            (ii) be available to the Secretary in such 
                        amounts, subject to appropriations, to cover 
                        expenses incurred by the Secretary in carrying 
                        out the provisions of this title.
    (f) Approval of License.--
            (1) In general.--A qualified regulatory authority may issue 
        licenses under this title for the operation of an Internet 
        poker facility to any applicant that--
                    (A) owns or controls a company that operates a 
                casino gaming facility or qualified card room and owned 
                or controlled such facility or card room on the date 
                that is 10 days before the date of enactment of this 
                Act;
                    (B) for the duration of the 5-year period ending on 
                the date on which the applicant submits an application 
                under subsection (b)(1), owned or controlled a casino 
                gaming facility or qualified card room;
                    (C) is owned or controlled by a person who--
                            (i) owns or controls a company that 
                        operates a casino gaming facility or qualified 
                        card room and owned or controlled such facility 
                        or card room on the date that is 10 days before 
                        the date of enactment of this Act; or
                            (ii) for the duration of the 5-year period 
                        ending on the date on which the applicant 
                        submits an application under subsection (b)(1), 
                        owned or controlled a casino gaming facility or 
                        qualified card room;
                    (D) for the duration of the 5-year period ending on 
                the date on which the applicant submits an application 
                under subsection (b)(1), under license issued by a 
                State or federally recognized Indian tribe manufactured 
                and supplied to casino gaming facilities with not fewer 
                than 500 slot machines; and
                    (E) meets other criteria established by the 
                Secretary or by the qualified regulatory authority 
                under this title.
            (2) Expansion of licensees only if no risk to public.--
        Beginning on the date that is 2 years after the date of first 
        issuance specified in section 115(b), the Secretary may, by 
        rule, authorize the issuance of licenses to applicants other 
        than those described in paragraph (1) if the Secretary 
        determines, after providing the public with notice and an 
        opportunity to comment, that such authorization will not 
        significantly increase the risk that the standards described in 
        subsection (d) will not be satisfied by licensees.
            (3) Authority of secretary to revoke licenses.--
        Notwithstanding any certificate of suitability or license 
        issued by a qualified regulatory authority, the Secretary may 
        suspend or revoke such certificate or license if the Secretary 
        has reason to believe that the recipient does not meet the 
        suitability requirements established under subsection (c) or, 
        as applicable, any other requirement imposed on a licensee 
        under this title. The Secretary may not overturn a decision by 
        a qualified regulatory authority to deny or to terminate a 
        license or to deny or revoke a certificate of suitability.
            (4) Conflicts between qualified regulatory authorities.--If 
        a qualified regulatory authority denies a license, terminates a 
        license, denies a certificate of suitability, or revokes a 
        certificate of suitability to a person and within 12 months of 
        such denial, termination, or revocation another qualified 
        regulatory authority 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 (3).
            (5) Control defined.--In this subsection, the term 
        ``control'' means, with respect to a person, 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) Location of Remote Gaming Equipment.--A licensee shall maintain 
its remote gaming equipment within the territory of the United States 
throughout the term of its license. A qualified regulatory authority 
shall require applicants that seek a license from such qualified 
regulatory authority to locate that equipment within the territory of 
the State or on the Indian land of the tribe of the qualified 
regulatory authority.
    (h) License Is a Privilege Not a Right.--A decision by a qualified 
regulatory authority 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 Federal law or the law of any 
jurisdiction other than the jurisdiction of the qualified regulatory 
authority. The State or federally recognized Indian tribe of the 
jurisdiction of the qualified regulatory authority may, but need not, 
provide an opportunity to appeal.
    (i) 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. A 
        license may be renewed in accordance with requirements 
        prescribed by the qualified regulatory authority that issued 
        the license under this title.
            (2) Transfer.--A transfer of a license, change of control 
        of a licensee, or change in significant vendor shall require 
        prior approval by the qualified regulatory authority that 
        issued the license. The qualified regulatory authority shall at 
        a minimum ensure the suitability requirements of subsection (c) 
        continue to be satisfied before approving any such transfer or 
        change.
    (j) Administrative Provisions.--
            (1) Determination of internet poker.--
                    (A) Initial determination by qualified regulatory 
                authority.--A determination of whether a game, hand, 
                tournament, or other contest of a licensee is Internet 
                poker shall be made in the first instance by the 
                qualified regulatory authority that issued the license 
                to such licensee under this title.
                    (B) Challenges.--
                            (i) Challenge made with secretary.--A 
                        licensee or qualified regulatory authority may 
                        file a challenge with the Secretary regarding 
                        any determination of the qualified regulatory 
                        authority under subparagraph (A) that a game, 
                        hand, tournament, or other contest of another 
                        licensee is Internet poker.
                            (ii) Determination made by secretary within 
                        30 days.--If a challenge is made under clause 
                        (i), the Secretary shall make a determination 
                        of whether the game, hand, tournament, or other 
                        contest is Internet poker not later than 30 
                        days after the date on which the challenge is 
                        made.
                            (iii) 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 
                        (ii).
                    (C) Appeals.--Not later than 30 days after the date 
                on which the Secretary makes a determination under 
                subparagraph (B)(iii), a licensee or a qualified 
                regulatory authority may appeal such determination to 
                the United States District Court for the District of 
                Columbia. Such court shall set aside the Secretary's 
                determination if the court determines that the 
                Secretary's determination was--
                            (i) arbitrary, capricious, an abuse of 
                        discretion, or otherwise not consistent with 
                        law; or
                            (ii) without observance of procedure 
                        required by law.
            (2) Challenges under state or federally recognized indian 
        tribal law.--Except as provided in paragraph (1) and unless 
        otherwise specifically provided in this title, actions taken by 
        a qualified regulatory authority may be challenged by 
        applicants and licensees only as permitted under the law of the 
        State or federally recognized Indian tribe in which the 
        qualified regulatory authority 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 
                        regulatory authority; 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.

SEC. 105. ENFORCEMENT.

    (a) Disciplinary Action.--
            (1) In general.--A licensee may be subject to disciplinary 
        action, including suspension or revocation of its license, by a 
        qualified regulatory authority 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 enforcement.--Only the Secretary or the 
        qualified regulatory authority which granted the license may 
        initiate disciplinary action under this title.
            (3) Savings provision.--Nothing in this subsection shall be 
        construed to prohibit a law enforcement authority or regulatory 
        body that has authority over a licensee or an affiliated 
        person, independent from this title, from taking action under 
        the law of that law enforcement authority or regulatory body.
            (4) Disciplinary procedures.--
                    (A) In general.--A qualified regulatory authority 
                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 regulatory authority.--The disciplinary 
                process shall proceed according to the law of the 
                jurisdiction of the applicable qualified regulatory 
                authority.
            (5) Finality of action and appeals.--
                    (A) Finality.--Any disciplinary action shall be 
                treated as a final action.
                    (B) Action by qualified regulatory authorities.--A 
                licensee aggrieved by disciplinary action by a 
                qualified regulatory authority may file an appeal in 
                the jurisdiction where the qualified regulatory 
                authority taking such action is located only to the 
                extent permitted by the law of such jurisdiction.
                    (C) Action by secretary.--A licensee aggrieved by 
                disciplinary action by the Secretary may file an appeal 
                in the United States District Court for the District of 
                Columbia. Such court shall set aside the action if it 
                determines that the action was--
                            (i) arbitrary, capricious, an abuse of 
                        discretion, or otherwise not consistent with 
                        law; or
                            (ii) without observance of procedure 
                        required by 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) return all customer funds in an orderly manner 
                not later than 30 days after the date of the revocation 
                of the license; or
                    (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 regulatory authority finds a substantial basis to 
        believe that a person has violated section 103, the Secretary 
        or qualified regulatory authority shall refer such matter to 
        the Attorney General.
    (b) Civil Money Penalties.--
            (1) In general.--
                    (A) Penalties assessed by qualified regulatory 
                authorities.--A qualified regulatory authority 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 regulatory authority.
                    (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 may assess 
                upon a person that is required to obtain a license 
                under this title, but fails to obtain 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 regulatory 
                authorities.--Qualified regulatory authorities and such 
                other entities as are authorized by applicable State 
                and tribal law shall enforce the provisions of this 
                title under the law of the applicable State or 
                federally recognized 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 an agency hearing if such 
                        person submits 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.

SEC. 106. COMPULSIVE GAMING, RESPONSIBLE GAMING, AND SELF-EXCLUSION 
              PROGRAM REQUIREMENTS.

    (a) Regulations Required.--Each qualified regulatory authority 
shall, before issuing any licenses under this title, establish 
requirements for the development of a gambling addiction, responsible 
gaming, and self exclusion program that each licensee of that qualified 
regulatory authority shall implement as a condition of licensure. Such 
requirements 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.--At a minimum, each qualified regulatory 
authority shall require that licensees--
            (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 their deposit, time and bet amounts, as 
        well as self-limit 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 regulatory 
        authority 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;
            (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 
        poker facility of the licensee are offered; and
            (6) ensure that the qualified regulatory authority adopt 
        any practices that the Secretary recommends to protect 
        consumers, taking into account the National Council on Problem 
        Gambling Internet Responsible Gambling Standards.
    (c) List of Persons Self-Excluded.--
            (1) Establishment.--
                    (A) Lists maintained by qualified regulatory 
                authorities.--Each qualified regulatory authority shall 
                establish and maintain a list of persons self-excluded 
                from playing Internet poker through Internet poker 
                facilities licensed by the qualified regulatory 
                authority. Each week, each qualified regulatory 
                authority shall submit to the Secretary a current copy 
                of the list.
                    (B) Master list maintained by secretary.--The 
                Secretary shall establish and maintain a master list of 
                all persons self-excluded from playing Internet poker 
                through Internet poker facilities licensed under this 
                title. Such list shall consist of all persons submitted 
                under subparagraph (A). The Secretary shall make the 
                master list available to all qualified regulatory 
                authorities and licensees.
                    (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 regulatory 
                        authority 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 collect 
                        any winnings or recover any losses resulting 
                        from any gaming activity at any Internet poker 
                        facility of a licensee.
            (2) Limitation on liability.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the United States, the Secretary, a qualified 
                regulatory authority, the State, or federally 
                recognized Indian tribe in which that qualified 
                regulatory authority 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 of information about 
                        individuals placed on the list of self-excluded 
                        persons.
                    (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 federally recognized 
                Indian tribe of the qualified regulatory authority that 
                issued the license.
                    (C) Rule of construction.--Nothing in this 
                paragraph shall be construed to prevent the Secretary 
                or a qualified regulatory authority 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 
        regulatory authority, 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 any 
        prohibited gaming activity.
            (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 after the 
        applicable prohibition has become effective shall be subject to 
        forfeiture by order of the Secretary or a qualified regulatory 
        authority, 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 regulatory authority, as provided by the 
        applicable State or tribal law.
    (e) Requirements With Respect to Child Support Delinquents.--
            (1) In general.--When it is made known to the Secretary or 
        a qualified regulatory authority by a Federal or State court or 
        a competent qualified regulatory authority involved with the 
        administration or enforcement of a court-ordered child support 
        payment that a particular individual is delinquent with respect 
        to court-ordered child support payments, the Secretary shall 
        include that individual on the list established under 
        subsection (c).
            (2) Removal from list.--Individuals placed on the list 
        pursuant to paragraph (1) shall be removed from such list if 
        the court or agency that made such individual's delinquency 
        known to the Secretary notifies the Secretary that such 
        individual is no longer delinquent.
    (f) 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.''.
    (g) Compilation of Datasets on Player Behavior.--The Secretary 
shall compile and make available to the public, on the Web site of the 
Secretary, datasets 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 
is removed from the data. The data shall retain 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.
    (h) Administrative Provisions.--
            (1) Rule of construction.--No provision of this section 
        shall be construed as creating a legal duty in the Secretary, a 
        qualified regulatory authority, 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 
        regulatory authority, 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.

SEC. 107. PROHIBITIONS AND RESTRICTIONS.

    (a) Prohibition on Bets or Wagers on Games Other Than Internet 
Poker.--No provision of this title shall be construed to authorize any 
licensee to accept a bet or wager on any game, event, or activity that 
is not Internet poker.
    (b) Prohibition on the Use of Credit Cards for Internet Poker.--No 
licensee, no person operating on behalf of a licensee, and no person 
accepting payment for or settlement of a bet or wager who intends to 
transmit such payment to a person licensee, may accept a bet or wager 
or payment for or settlement of a bet or wager that is transmitted or 
otherwise facilitated with a credit card (as defined in section 
5362(11) of title 31, United States Code).
    (c) Public Internet Poker Parlors Prohibited.--
            (1) In general.--It shall be considered a violation of this 
        title to operate an unlicensed 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 poker facilities.
            (2) 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.
            (3) 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 poker 
        facilities.
            (4) Relation to state, local, and tribal law.--Places of 
        public accommodation, clubs, or similar establishments 
        described in paragraph (1) shall be subject to all otherwise 
        applicable State, local, and tribal laws.

SEC. 108. 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. 109. RELATION TO SUBCHAPTER IV OF CHAPTER 53 OF TITLE 31, UNITED 
              STATES CODE.

    Subchapter IV of chapter 53 of title 31, United States Code, shall 
not apply to any bet or wager occurring pursuant to a license issued 
under this title, subject to section 110.

SEC. 110. 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 regulatory 
        authority, or its agent 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 poker facility;
                    (B) such device is not used in live play involving 
                actual bets or wagers; and
                    (C) such device is registered with the Secretary 
                and the qualified regulatory authority 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 regulatory 
        authority, or its agent to use or posses a device described in 
        paragraph (1) or (2) if--
                    (A) such use or possession is solely for purposes 
                of testing an Internet poker facility;
                    (B) such device is not used in live play involving 
                actual bets or wagers; and
                    (C) such device is registered with the qualified 
                regulatory authority 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) 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.
    (d) Criminal Penalty.--Whoever violates subsection (a) or (b) shall 
be fined under title 18, United States Code, or imprisoned for not more 
than 3 years, or both.
    (e) Reports.--
            (1) Recommended minimum standards.--Not later than 180 days 
        after the date of enactment of this Act, the Secretary shall 
        submit to Congress a report containing the recommendations of 
        the Secretary on what minimum standards qualifying bodies 
        should adopt to carry out the requirements of subsection (a).
            (2) Identification of threats to operation of internet 
        poker facilities.--Not later than 1 year after the date that 
        licenses are first issued under section 118(a), the Director of 
        the National Institute of Standards and Technology shall submit 
        to Congress a report that identifies threats to the integrity 
        of Internet poker facilities operated by licensees, including 
        identification of technologies that could be used to hack 
        computer networks, facilitate cheating, or otherwise place 
        consumers at risk of fraud or monetary loss.

SEC. 111. 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 are not regarded as gambling under all provisions of 
        Federal, State, or tribal law in effect as of the date of 
        enactment of this Act--
                    (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 games described 
        in paragraph (1) without compliance with the licensing and 
        other requirements of this title.
    (b) 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 State, or tribal law that was in effect before the date of 
enactment of this Act that--
            (1) prohibits, restricts, or otherwise addresses bets or 
        wagers; or
            (2) prohibits fraud, unfair or deceptive acts or practices, 
        or other criminal activity.
    (c) Preemption of State and Tribal Laws.--
            (1) In general.--Except as otherwise expressly provided in 
        this title and excluding any prohibitions described in section 
        104(a)(3), the provisions of this title shall supersede any 
        provisions of the law of any State or federally recognized 
        Indian tribe expressly relating to the permitting, prohibiting, 
        licensing, or regulating of Internet poker facilities, 
        including Internet poker facilities, and the law of any State 
        or federally recognized Indian tribe expressly relating to the 
        permitting, prohibiting, licensing, or regulation of gambling, 
        except to the extent such State or tribal laws are not 
        inconsistent with this title.
            (2) Lotteries.--No provision of this title shall be 
        construed to have any effect on the rights, privileges, or 
        obligations of a State or tribal lottery as may be provided 
        under other applicable Federal, State, or tribal law.
            (3) Savings provision.--Nothing in this title may be 
        construed to limit the applicability or enforcement of any 
        State or tribal consumer protection law or preempt the 
        applicability of State or tribal trespass, contract, or tort 
        law.
    (d) 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).
    (e) No Impact on Indian Gaming Regulatory Act.--
            (1) In general.--No provision of this title or decision or 
        action taken by a federally recognized Indian tribe or State 
        pursuant to this title shall have any effect on non-Internet 
        gaming activities within the scope 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 poker facilities under this title shall 
        not be considered class II or class III gaming under such 
        section, and a federally recognized 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) Federally recognized indian tribes.--The fact 
                that a federally recognized Indian tribe is operating 
                under a license issued pursuant to this title or that a 
                tribal regulatory body is acting as a qualified body 
                pursuant to this title shall not require a federally 
                recognized 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 prohibited 
                or limited Internet bets or wagers under section 
                104(a)(3) or that a State regulatory body is acting as 
                a qualified body pursuant to 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.

SEC. 112. REGULATIONS.

    Not later than 180 days after the date of enactment of this Act, 
the Secretary shall prescribe such regulations as the Secretary 
considers necessary and where expressly required or authorized to carry 
out this title.

SEC. 113. ANNUAL REPORTS.

    (a) Licensing and Regulation of Internet Poker Facilities.--Not 
later than 1 year after the date that licenses first issue under this 
title and annually thereafter, the Secretary shall transmit to Congress 
a report on the licensing and regulation of Internet poker facilities 
under this title, including--
            (1) the amount of fees collected under section 104(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 poker facilities during the period 
        covered by the report;
            (2) a list of qualified regulatory authorities, the number 
        of licensees reviewed by the qualified regulatory authorities 
        under this title, and the outcomes of such reviews;
            (3) a description of the efforts the Secretary has 
        undertaken to ensure that qualified regulatory authorities are 
        properly issuing licenses and regulating licensees under this 
        title;
            (4) 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; and
            (5) any other information the Secretary determines may be 
        useful to Congress.
    (b) Consumer Protection.--Not later than 1 year after the date that 
licenses first issue under this title and annually thereafter, the 
Secretary shall transmit to the Committee on Energy and Commerce of the 
House of Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report on commercial and regulatory 
practices carried out to protect consumers with respect to Internet 
poker, including the practices carried out pursuant to the requirements 
of section 106 and the regulations prescribed pursuant to such section. 
Such report shall include--
            (1) a detailed description of the efforts of each qualified 
        regulatory authority to protect consumers from unfair or 
        deceptive acts or practices, including deceptive advertising 
        and marketing to minors;
            (2) a description of the practices that the Secretary 
        recommends a qualified regulatory authority to adopt to protect 
        consumers;
            (3) such recommendations as the Secretary may have for 
        legislative action as the Secretary considers necessary to 
        protect consumers with respect to Internet poker; and
            (4) such other information as the Secretary considers 
        appropriate.

SEC. 114. 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 enactment of this Act.
    (b) Regulations Required Before Issuing Licenses.--Notwithstanding 
any other provision of this title, a qualified regulatory authority may 
not issue a license under this title before the later of--
            (1) the date on which the Secretary prescribes final 
        regulations under section 113;
            (2) the date on which the Secretary of the Treasury 
        prescribes final regulations pursuant to subsections (a) and 
        (d) of section 203; and
            (3) the date on which the Director of the Financial Crimes 
        Enforcement Network submits to the Secretary of the Treasury a 
        list of unlicensed Internet gambling enterprises pursuant to 
        section 5369(a)(1)(B) of title 31, United States Code, as added 
        by section 202(a).

 TITLE II--STRENGTHENING OF UNLAWFUL INTERNET GAMBLING ENFORCEMENT ACT 
                                OF 2006

SEC. 201. FINANCIAL TRANSACTION PROVIDERS.

    (a) In General.--Subchapter IV of chapter 53 of title 31, United 
States Code, is amended by adding at the end the following:
``Sec. 5368. Liability of financial transaction providers
    ``(a) Liability for Certain Financial Activities and 
Transactions.--A financial transaction provider shall not be held 
liable for engaging in a financial activity or transaction, including a 
payments processing activity, in connection with a bet or wager 
permitted by the Internet Poker Freedom Act of 2013 or the Interstate 
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 
other applicable provision of Federal or State law.
    ``(b) No Liability for Blocking or Refusing To Honor Certain 
Transactions.--
            ``(1) In general.--A financial transaction provider that 
        takes an action described in paragraph (2) with respect to a 
        transaction shall not be liable to any party for that action if 
        the financial transaction provider takes the action because the 
        originator of the transaction or a party to the transaction 
        is--
                    ``(A) a person or entity that is included in the 
                list of unlicensed Internet gambling enterprises 
                required by section 5369(a);
                    ``(B) a person or entity that the financial 
                transaction provider reasonably believes is included in 
                that list;
                    ``(C) a person or entity that is included in a list 
                of unlicensed Internet gambling enterprises made 
                available to the financial transaction provider by the 
                Secretary under section 5369(a)(3);
                    ``(D) a person or entity that the financial 
                transaction provider reasonably believes is included in 
                a list described in subparagraph (C);
                    ``(E) a person or entity that is demonstrated to be 
                an unlicensed Internet gambling enterprise based on 
                information, other than a list described in 
                subparagraph (C), that is made available to the 
                financial transaction provider; or
                    ``(F) a person or entity that the financial 
                transaction provider reasonably believes is 
                demonstrated to be an unlicensed Internet gambling 
                enterprise based on information described in 
                subparagraph (E).
            ``(2) Actions described.--A financial transaction provider 
        takes an action described in this paragraph if the financial 
        transaction provider--
                    ``(A) identifies and blocks a transaction;
                    ``(B) prevents or prohibits the acceptance of its 
                products or service in connection with a transaction or 
                otherwise refuses to honor a transaction; or
                    ``(C) closes an account or ends a financial 
                relationship.''.
    (b) Clerical Amendment.--The table of sections for chapter 53 of 
title 31, United States Code, is amended by adding at the end the 
following:

``5368. Liability of financial transaction providers.''.
    (c) Technical Correction.--Section 5362(11)(B)(i) of title 31, 
United States Code, is amended by striking ``section 903(6)(E)'' and 
inserting ``section 903(7)(E)''.

SEC. 202. LIST OF UNLICENSED INTERNET GAMBLING ENTERPRISES.

    (a) In General.--Subchapter IV of chapter 53 of title 31, United 
States Code, as amended by section 201(a), is further amended by adding 
at the end the following:
``Sec. 5369. List of unlicensed Internet gambling enterprises
    ``(a) List of Unlicensed Internet Gambling Enterprises.--
            ``(1) In general.--The Director shall--
                    ``(A) identify unlicensed Internet gambling 
                enterprises in accordance with the procedures described 
                in subsection (b);
                    ``(B) not later than 120 days after the date of 
                enactment of the Internet Poker Freedom Act of 2013, 
                submit to the Secretary a list of unlicensed Internet 
                gambling enterprises that includes the information 
                described in paragraph (2); and
                    ``(C) not less frequently than every 60 days 
                thereafter, submit to the Secretary an updated list 
                that reflects the results of subsequent investigations 
                carried out under this section.
            ``(2) Information required.--The information described in 
        this paragraph is, with respect to each unlicensed Internet 
        gambling enterprise included on the list required by paragraph 
        (1), the following:
                    ``(A) All known Internet Web site addresses of the 
                enterprise.
                    ``(B) The name of any person who controls, 
                finances, manages, supervises, directs, or owns all or 
                part of the enterprise (as such terms are used in 
                section 1955 of title 18).
                    ``(C) To the extent known, information identifying 
                the financial agents and account numbers of the 
                enterprise and the persons described in subparagraph 
                (B).
            ``(3) Distribution of list.--Not later than 10 days after 
        receiving the list or an updated version of the list required 
        by paragraph (1) from the Director, the Secretary shall--
                    ``(A) post the information provided under 
                subparagraphs (A) and (B) of paragraph (2) on the 
                Internet Web site of the Department of the Treasury; 
                and
                    ``(B) provide to each person that is required to 
                comply with the regulations prescribed pursuant to 
                section 5364 a copy of the information included with 
                the list required by paragraph (1) in an electronic 
                format compatible with the list of Specially Designated 
                Nationals and Blocked Persons maintained by the Office 
                of Foreign Assets Control.
    ``(b) Procedures for Identifying Unlicensed Internet Gambling 
Enterprises.--
            ``(1) Investigations.--
                    ``(A) Initial investigation.--Not later than the 
                date that is 60 days after the date of enactment of the 
                Internet Poker Freedom Act of 2013, the Director shall 
                complete an initial investigation of entities that 
                appear to be unlicensed Internet gambling enterprises.
                    ``(B) Subsequent investigations.--After completing 
                the initial investigation required by subparagraph (A), 
                the Director shall regularly investigate entities that 
                appear to be unlicensed Internet gambling enterprises.
            ``(2) Requests.--
                    ``(A) In general.--Any Federal, State, tribal, or 
                local law enforcement official, any affected sports 
                organization, any person directly harmed by unlicensed 
                Internet gambling, any financial transaction provider, 
                and any interactive computer service shall have the 
                right, but not the obligation, to make a written 
                request to the Director for the addition of any person 
                to the list of unlicensed Internet gambling enterprises 
                required by subsection (a).
                    ``(B) Determinations; notice to person that 
                submitted a request.--Not later than 30 days after 
                receiving a request under subparagraph (A), the 
                Director shall--
                            ``(i) determine if the request contains 
                        information sufficient to constitute a prima 
                        facie case that an entity is an unlicensed 
                        Internet gambling enterprise; and
                            ``(ii) notify the person that submitted the 
                        request of the determination of the Director.
            ``(3) Notice.--Not later than 30 days before including a 
        person in the list of unlicensed Internet gambling enterprises 
        required by subsection (a), the Director shall provide written 
        notice to the person of the determination of the Director to 
        include the person in the list.
            ``(4) Opportunity to contest.--
                    ``(A) In general.--A person that receives notice 
                under paragraph (3) that the Director has determined to 
                include the person in the list of unlicensed Internet 
                gambling enterprises required by subsection (a) may, 
                not later than 30 days after receiving the notice, 
                contest the determination--
                            ``(i) by submitting a written appeal to the 
                        Director; and
                            ``(ii) by agreeing in the written appeal to 
                        submit to the jurisdiction of the United 
                        States.
                    ``(B) Effect of not contesting.--If a person 
                described in subparagraph (A) does not contest the 
                determination of the Director to include the person in 
                the list of unlicensed Internet gambling enterprises 
                required by subsection (a) in accordance with 
                subparagraph (A), the Director shall include the person 
                in the list.
            ``(5) Opportunity for hearing.--The Director--
                    ``(A) may not include a person that submits a 
                written appeal pursuant to paragraph (4) in the list of 
                unlicensed Internet gambling enterprises required by 
                subsection (a) until the Director provides the person 
                with an opportunity for a hearing; and
                    ``(B) shall provide the person the opportunity for 
                a hearing not later than 30 days after receiving the 
                written appeal from the person.
            ``(6) Determinations after hearing.--Not later than 10 days 
        after the date of a hearing provided for a person under 
        paragraph (5) (without regard to whether the person appears at 
        the hearing), the Director shall--
                    ``(A) determine if the person should be included in 
                the list of unlicensed Internet gambling enterprises 
                required by subsection (a); and
                    ``(B) if the Director determines that the person 
                should be included in the list, add the person to the 
                list.
            ``(7) Injunctive relief.--
                    ``(A) In general.--A person described in 
                subparagraph (B) may petition for injunctive relief in 
                the United States District Court for the District of 
                Columbia, which shall have exclusive jurisdiction to 
                hear cases arising under this section.
                    ``(B) Person described.--A person described in this 
                subparagraph is a person that the Director determines 
                to include in the list of unlicensed Internet gambling 
                enterprises required by subsection (a)--
                            ``(i) after the person appears at a hearing 
                        described in paragraph (5); or
                            ``(ii) that did not receive the notice 
                        required by paragraph (3).
                    ``(C) Burden of proof.--The petitioner shall have 
                the burden of establishing that the person should not 
                be included in the list of unlicensed Internet gambling 
                enterprises required by subsection (a).
                    ``(D) Standing.--Only persons that the Director 
                determines to include in the list of unlicensed 
                Internet gambling enterprises required by subsection 
                (a) and owners or operators of such enterprises shall 
                have standing to contest the determination of the 
                Director.
                    ``(E) Available relief.--The court may direct the 
                Director and the Secretary not to add, or to remove, 
                the petitioner from the list of unlicensed Internet 
                gambling enterprises.
                    ``(F) Unavailability of other remedies.--There 
                shall be no judicial review of a determination under 
                this section other than pursuant to this paragraph.
    ``(c) Effect of List.--A financial transaction provider shall be 
deemed to have actual knowledge that a person or entity is an 
unlicensed Internet gambling enterprise if--
            ``(1) the person or entity is included in the list of 
        unlicensed Internet gambling enterprises required by subsection 
        (a); or
            ``(2)(A) the person or entity is included in a list of 
        unlicensed Internet gambling enterprises made available to the 
        financial transaction provider by the Secretary under 
        subsection (a)(3); and
            ``(B) information in addition to the list described in 
        subparagraph (A) is available to the financial transaction 
        provider that demonstrates that the person or entity is an 
        unlicensed Internet gambling enterprise.
    ``(d) Definitions.--In this section:
            ``(1) Director.--The term `Director' means the Director of 
        the Financial Crimes Enforcement Network appointed under 
        section 310(b).
            ``(2) Sports organization.--The term `sports organization' 
        means an amateur sports organization or a professional sports 
        organization (as those terms are defined in section 3701 of 
        title 28).
            ``(3) Unlicensed internet gambling enterprise.--The term 
        `unlicensed Internet gambling enterprise' means any person who, 
        on or after the date of enactment of the Internet Poker Freedom 
        Act of 2013--
                    ``(A) violates a provision of section 5363; or
                    ``(B) knowingly assists a person in conduct 
                described in subparagraph (A).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter 53, as amended by section 201(b), is further amended by 
adding at the end the following:

``5369. Unlicensed Internet gambling enterprises.''.

SEC. 203. REGULATIONS.

    (a) Regulations.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of the Treasury shall--
            (1) prescribe regulations to carry out sections 5368 and 
        5369 of title 31, United States Code, as added by sections 
        201(a) and 202(a), and publish such regulations in final form 
        in the Federal Register; and
            (2) prescribe such regulations as the Secretary of the 
        Treasury considers necessary to ensure compliance with chapter 
        2 of title I of Public Law 91-508 (12 U.S.C. 1951 et seq.) and 
        subchapter II of chapter 53 of title 31, United States Code 
        (commonly known, collectively, as the ``Bank Secrecy Act''), by 
        licensees, significant vendors to such licensees, and financial 
        service providers to such licensees (as such terms are defined 
        in section 102).
    (b) Exclusion of Board of Governors of the Federal Reserve System 
From Requirement To Prescribe Regulations Concerning Prevention of 
Restricted Transactions.--Subsection (a) of section 5364 of title 31, 
United States Code, is amended by striking ``Before the end of the 270-
day period beginning on the date of enactment of this subchapter, the 
Secretary and the Board of Governors of the Federal Reserve System, in 
consultation with the Attorney General, shall prescribe regulations 
(which the Secretary and the Board jointly determine to be 
appropriate)'' and inserting ``The Secretary shall prescribe 
regulations''.
    (c) Temporary Suspension of Certain Regulations.--
            (1) In general.--Subject to paragraph (2), during the 
        period beginning on the date of enactment of this Act and 
        ending on the date set forth in subsection (d), part 233 of 
        title 12, Code of Federal Regulations, and part 132 of title 
        31, Code of Federal Regulations, shall have no force or effect 
        to the extent that those regulations require or impose any 
        obligation that is inconsistent with the provisions of title I.
            (2) Previous violation.--Paragraph (1) shall not apply with 
        respect to any violation of a regulation described in such 
        paragraph that occurred before the date of enactment of this 
        Act.
    (d) 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.
    (e) Annual Report.--Not later than 1 year after the date on which 
the Secretary of the Treasury prescribes regulations under this 
section, and annually thereafter, the Secretary shall submit to 
Congress a report on the list required by section 5369(a) of title 31, 
United States Code, as added by section 202(a), including the 
following:
            (1) The size of the list.
            (2) The number of persons and Web sites added to and 
        removed from the list.
            (3) The number and description of challenges to inclusion 
        on the list and a description of how such challenges were 
        resolved.

SEC. 204. CONFORMING AMENDMENTS.

    (a) Duties and Powers of the Director of the Financial Crimes 
Enforcement Network.--Section 310(b)(2)(I) of title 31, United States 
Code, is amended by striking ``subchapter II'' and inserting 
``subchapters II and IV''.
    (b) Exclusion of Licensed Internet Poker Facility Operations From 
Definition of Unlawful Internet Gambling Enterprise.--Section 5362(10) 
of such title is amended--
            (1) in subparagraph (D), by striking clause (iii);
            (2) by redesignating subparagraph (E) as subparagraph (F); 
        and
            (3) by inserting after subparagraph (D) the following:
                    ``(E) Licensed internet poker facilities.--The term 
                `unlawful Internet gambling' does not include an 
                activity carried out by an Internet poker facility, as 
                such term is defined in section 102 of the Internet 
                Poker Freedom Act of 2013, operated by a person under a 
                license provided under title I of such Act in 
                accordance with the provisions of such title.''.
                                 <all>
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