I 

109TH CONGRESS 

2D SESSION H. R. 5474 

To create a commission to study the proper response of the United States 

to the growth of Internet gambling. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 24, 2006 

Mr. PORTER (for himself, Mr. GIBBONS, Ms. BERKLEY, Mr. LOBIONDO, Mr. 

WEINER, Mr. JACKSON of Illinois, Mr. DAVIS of Illinois, Mr. CARDOZA, 

Mr. RUPPERSBERGER, Mr. CLYBURN, Mr. CAPUANO, Ms. WATSON, Ms. 

EDDIE BERNICE JOHNSON of Texas, Ms. LINDA T. SA ́NCHEZ of California, Ms. CORRINE BROWN of Florida, Mr. CONYERS, Mr. RANGEL, Mr. 

HASTINGS of Florida, Mr. FRANK of Massachusetts, Mr. HINCHEY, Mrs. 

JONES of Ohio, Mr. CLAY, Mrs. NAPOLITANO, Mr. THOMPSON of Mississippi, Mr. SERRANO, Mr. CROWLEY, Mr. ENGEL, Mr. TAYLOR of Mississippi, Mr. LANGEVIN, Mr. EMANUEL, Mr. MELANCON, Mr. LEWIS of 

Georgia, Mr. TOWNS, Ms. LORETTA SANCHEZ of California, Mr. ISRAEL, 

Mr. GONZALEZ, Mr. BERMAN, Mrs. MALONEY, Mr. THOMPSON of California, Mr. COSTELLO, Ms. SCHAKOWSKY, Mr. ACKERMAN, Mr. WEXLER, 

and Ms. JACKSON-LEE of Texas) introduced the following bill; which was 

referred to the Committee on the Judiciary 

A BILL 

To create a commission to study the proper response of 

the United States to the growth of Internet gambling. 

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


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1 SECTION 1. SHORT TITLE. 

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

3 Study Commission Act’’. 

4 SEC. 2. FINDINGS AND PURPOSE. 

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

6 (1) Gambling is regulated primarily by State 

7 and tribal governments and Federal statutes gov8 erning the interstate placement of wagers are out9 dated. 

10 (2) Over the past decade, the number of Ameri11 cans gambling on the Internet has risen dramatically 

12 to several million, accounting for over half of a 

13 multibillion dollar worldwide market. 

14 (3) Many observers believe that it is impossible 

15 to stop the sale of most products or services over the 

16 Internet. 

17 (4) Congress must avoid merely symbolic, inef18 fective responses to the growth of Internet gambling, 

19 and should instead focus on establishing safeguards 

20 against gambling by minors, compulsive gambling, 

21 and fraud, money laundering, and other forms of 

22 abuse. 

23 (5) Although interpretations of a recent ruling 

24 of the World Trade Organization’s appellate body 

25 differ, legal experts agree that it calls into question 

26 whether certain of Federal and State gambling laws 


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1 violate the commitments of the United States under 

2 the General Agreement on Trade and Services. 

3 (6) While only the United States and Antigua 

4 are parties to that dispute, the ruling could have 

5 ramifications for interested nations from the United 

6 Kingdom to Australia. 

7 (b) PURPOSE.—The purpose of this Act is provide for 

8 a detailed examination of the issues posed by the contin9 ued spread and growth of interstate commerce with re10 spect to Internet gambling through the establishment of 

11 a commission for such purpose. 

12 SEC. 3. INTERNET GAMBLING STUDY COMMISSION. 

13 (a) ESTABLISHMENT OF COMMISSION.—There is es14 tablished a commission to be known as the Internet Gam15 bling Study Commission (hereinafter in this Act referred 

16 to as the ‘‘Commission’’). 

17 (b) MEMBERSHIP.— 

18 (1) APPOINTMENT.—The Commission shall con19 sist of 9 members appointed as follows: 

20 (A) 2 shall be appointed by the Speaker of 

21 the House of Representatives. 

22 (B) 2 shall be appointed by the minority 

23 leader of the House of Representatives. 

24 (C) 2 shall be appointed by the majority 

25 leader of the Senate. 


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1 (D) 2 shall be appointed by the minority 

2 leader of the Senate. 

3 (E) 1 shall be appointed by consensus by 

4 the 8 commissioners appointed in accordance 

5 with subparagraphs (A), (B), (C), and (D). 

6 (2) TERM.—Commissioners shall be appointed 

7 for the life of the Commission. 

8 (3) ELIGIBILITY FOR MEMBERSHIP.—The mem9 bers of the Commission— 

10 (A) shall be appointed from among individ11 uals who, by virtue of their education, training, 

12 or experience in matters to be studied by the 

13 Commission under section 4 are especially 

14 qualified to serve on the Commission; and 

15 (B) may be from the public or private sec16 tor, and may include Federal, State, local, or 

17 Native American tribal officers or employees, 

18 members of academia, nonprofit organizations, 

19 industry, or other interested individuals. 

20 (4) CONSULTATION AND TIMELY APPOINTMENT

21 REQUIRED.—The Speaker of the House of Rep22 resentatives, the minority leader of the House of 

23 Representatives, the majority leader of the Senate, 

24 and the minority leader of the Senate shall— 


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1 (A) consult among themselves prior to the 

2 appointment of the members of the Commission 

3 in order to achieve, to the maximum extent pos4 sible, fair and equitable representation of var5 ious points of view with respect to the matters 

6 to be studied by the Commission under section 

7 4; and 

8 (B) each make their respective appoint9 ments not later than 60 days after the date of 

10 enactment of this Act. 

11 (5) VACANCY.—Any vacancy in the position of 

12 any Commissioner shall be filled in the same manner 

13 in which the original appointment was made and 

14 shall not affect the powers of the Commission 

15 (c) CHAIRPERSON.—The member of the Commission 

16 appointed under subsection (b)(1)(E) shall serve as the 

17 Chairperson of the Commission. 

18 (d) ADMINISTRATION.— 

19 (1) MEETINGS.— 

20 (A) IN GENERAL.—The Commission shall 

21 meet at the call of the Chairperson. 

22 (B) INITIAL MEETING.—The initial meet23 ing of the Commission shall be conducted before 

24 the end of the later of— 


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1 (i) the 30-day period beginning on the 

2 date of the appointment of the last mem3 ber of the Commission; or 

4 (ii) the 30-day period beginning on 

5 the date on which appropriated funds be6 come available for the Commission. 

7 (2) QUORUM.—A majority of the members of 

8 the Commission shall constitute a quorum to con9 duct business, but the Commission may establish a 

10 lesser number for conducting hearings scheduled by 

11 the Commission. 

12 (3) VOTING.—Each member of the Commission 

13 shall have 1 vote, and the vote of each member shall 

14 be accorded the same weight. 

15 (4) RULES.—The Commission may establish by 

16 majority vote any other rules for the conduct of the 

17 Commission’s business, if such rules are not incon18 sistent with this Act or other applicable law. 

19 (e) COMPENSATION.— 

20 (1) IN GENERAL.—Each member of the Com21 mission who is not an officer or employee of the 

22 Federal Government, or whose compensation is not 

23 precluded by a State, local, or Native American trib24 al government position, shall be compensated at a 

25 rate equal to the daily equivalent of the annual rate 


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1 of basic pay prescribed for level IV of the Executive 

2 Schedule under section 5315 of title 5, United 

3 States Code, for each day (including travel time) 

4 during which such member is engaged in the per5 formance of the duties of the Commission. 

6 (2) PROHIBITION OF COMPENSATION OF FED7 ERAL EMPLOYEES.—All members of the Commission 

8 who are officers or employees of the United States 

9 shall serve without compensation in addition to that 

10 received for their services as officers or employees of 

11 the United States. 

12 (f) TRAVEL EXPENSES.—The members of the Com13 mission shall be allowed travel expenses, including per 

14 diem in lieu of subsistence, at rates authorized for employ15 ees of agencies under subchapter I of chapter 57 of title 

16 5, United States Code, while away from their homes or 

17 regular places of business in the performance of service 

18 for the Commission. 

19 SEC. 4. DUTIES OF THE COMMISSION. 

20 (a) STUDY REQUIRED.— 

21 (1) IN GENERAL.—It shall be the duty of the 

22 Commission to conduct a comprehensive study of 

23 Internet gambling, including the existing legal 

24 framework that governs such activities and trans25 actions. 


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

2 conducted under paragraph (1) shall include a re3 view and consideration by the Commission of the fol4 lowing issues: 

5 (A) Existing Federal, State, tribal, local, 

6 and international laws governing various forms 

7 of wagering over the Internet, the effectiveness 

8 of such laws, and the extent to which such pro9 visions of law conform or do not conform with 

10 each other. 

11 (B) The rate and extent of the expansion 

12 of Internet gambling, including an analysis of 

13 the availability and use within the United 

14 States of such form of gambling. 

15 (C) The impact of Internet gambling on 

16 the availability of gambling to minors. 

17 (D) The impact of Internet gambling on 

18 addicted or otherwise irresponsible gamblers. 

19 (E) The susceptibility of Internet gambling 

20 to fraud and money laundering by terrorist or 

21 criminal enterprises and the extent to which 

22 such entities are utilizing Internet gambling 

23 sites for these purposes. 

24 (F) An assessment of whether there are 

25 potential regulatory measures that may reduce 


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1 the adverse impacts of Internet gambling iden2 tified in subparagraphs (C), (D), and (E), in3 cluding a survey of recent technological innova4 tions and the practices of other nations and 

5 international bodies that are designed to limit 

6 such adverse impacts. 

7 (G) An evaluation of the use of credit, 

8 credit cards, electronic fund transfers, bank in9 struments, and other payment providers to fund 

10 Internet gambling and an assessment of the po11 tential, if any, for regulating of such financing 

12 methods as a means for reducing the adverse 

13 impacts of Internet gambling identified in sub14 paragraphs (C), (D), and (E). 

15 (H) An analysis of the issues of the rela16 tionships of Federal, State, and tribal laws that 

17 are presented by legislative and administrative 

18 proposals designed to address the proliferation 

19 of Internet gambling and the potential means of 

20 reconciling State-based legal and regulatory 

21 frameworks with the primarily interstate and 

22 international character of the Internet as a me23 dium. 

24 (I) An assessment of the problems posed 

25 by unregulated international Internet gambling 


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1 to United States interests and the potential 

2 means, if any, by which the Federal Govern3 ment may seek international cooperation in ad4 dressing these concerns. 

5 (b) FINAL REPORT.—Before the end of the 18-month 

6 period beginning on the date the Commission first meets 

7 with a quorum present, the Commission shall— 

8 (1) submit to the President and the Congress a 

9 comprehensive report containing the findings and 

10 conclusions of the Commission with regard to the 

11 study conducted under subsection (a), together with 

12 such recommendations, if any, for legislative or ad13 ministrative action as the Commission may deter14 mine to be appropriate and advisable, on the basis 

15 of such findings and conclusions, to provide a sound 

16 response to Internet gambling in the United States; 

17 and 

18 (2) transmit a copy of such report to the Gov19 ernor or chief executive officer of each State and 

20 Native American tribal government. 

21 SEC. 5. POWERS OF THE COMMISSION. 

22 (a) HEARINGS.— 

23 (1) IN GENERAL.—The Commission may hold 

24 such hearings, sit and act at such times and places, 

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1 ceive such evidence as the Commission considers ad2 visable to carry out its duties under this Act. 

3 (2) WITNESS EXPENSES.—Witnesses requested 

4 to appear before the Commission shall be paid the 

5 same fees as are paid to witnesses under section 

6 1821 of title 28, United States Code, from funds ap7 propriated to the Commission. 

8 (b) SUBPOENAS.— 

9 (1) IN GENERAL.—If a person fails to supply 

10 information requested by the Commission, the Com11 mission may by majority vote require by subpoena 

12 the production of any written or recorded informa13 tion, document, report, answer, record, account, 

14 paper, computer file, or other data or documentary 

15 evidence from any place withing the United States 

16 that the Commission determines is necessary to 

17 carry out this Act. 

18 (2) NOTICE TO ATTORNEY GENERAL.—The 

19 Commission shall transmit to the Attorney General 

20 a confidential, written notice at least 10 days in ad21 vance of the issuance of any such subpoena. 

22 (3) INTERROGATORIES.—The Commission may, 

23 with respect only to information necessary to under24 stand any materials obtained through a subpoena 

25 under paragraph (1), issue a subpoena requiring the 


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1 person producing such materials to answer, either 

2 through a sworn deposition or through written an3 swers provided under oath (at the election of the 

4 person upon whom the subpoena is served), to inter5 rogatories from the Commission regarding such in6 formation. A complete recording or transcription 

7 shall be made of any deposition made under this 

8 paragraph. 

9 (4) CERTIFICATION.—Each person who submits 

10 materials or information to the Commission pursu11 ant to a subpoena issued under this subsection shall 

12 certify, subject to the provisions of section 1001 of 

13 title 18, United States Code, to the Commission the 

14 authenticity and completeness of all materials or in15 formation submitted. 

16 (5) NO LIABILITY FOR EXPENSES.—The United 

17 States shall not be liable for any expense, other than 

18 any witness appearance fee described in subsection 

19 (a)(2), incurred in connection with the production of 

20 books, papers, records, or other data under this sub21 section. 

22 (6) SERVICE OF PROCESS.—Service of any sub23 poena issued under this subsection may be by reg24 istered mail or in such other manner calculated to 


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1 give actual notice as the Commission may prescribe 

2 by regulation. 

3 (7) CONTUMACY OR REFUSAL.— 

4 (A) REFERRAL TO ATTORNEY GENERAL.— 

5 In case of contumacy by a person issued a sub6 poena under this subsection or a refusal by 

7 such person to obey such subpoena, the Com8 mission shall refer the matter to the Attorney 

9 General. 

10 (B) JURISDICTION OF COURT.—To compel 

11 compliance with a subpoena issued under this 

12 subsection, the Attorney General may invoke 

13 the aid of any court of the United States within 

14 the jurisdiction of which— 

15 (i) the person required to produce the 

16 documents or answer an interrogatory is 

17 an inhabitant; or 

18 (ii) the person required to produce 

19 documents or answer an interrogatory car20 ries on business or may be found. 

21 (C) COURT ORDER.—The court may issue 

22 an order requiring the person summoned to 

23 produce books, papers, records, and other data 

24 or to answer an interrogatory, and to pay the 

25 costs of the proceeding. 


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1 (D) FAILURE TO COMPLY WITH ORDER.— 

2 Any failure to obey the order of the court may 

3 be punished by the court as a contempt thereof. 

4 (c) INFORMATION FROM FEDERAL AGENCIES.— 

5 (1) IN GENERAL.—The Commission may secure 

6 directly from any Federal department or agency 

7 such information as the Commission considers nec8 essary to carry out its duties under this Act. 

9 (2) REQUEST TO HEAD OF DEPARTMENT OR

10 AGENCY.—Upon the request of the Commission, the 

11 head of such department or agency may furnish 

12 such information to the Commission. 

13 (d) ADMINISTRATIVE SUPPORT.—Upon the request 

14 of the Commission, the Administrator of General Services 

15 shall provide to the Commission, on a reimbursable basis, 

16 the administrative support services necessary for the Com17 mission to carry out its responsibilities under this Act. 

18 (e) CONTRACT AUTHORITY.—To the extent or in the 

19 amounts provided in advance in appropriation Acts, the 

20 Commission may contract with and compensate govern21 ment and private agencies or persons for research con22 tracts under section 7 and other services, without regard 

23 to section 3709 of the Revised Statutes. 

24 (f) MAILS.—The Commission may use the United 

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1 ditions as other departments and agencies of the United 

2 States. 

3 (g) CONFIDENTIALITY.— 

4 (1) TREATMENT OF COMMISSION.—The Com5 mission shall be considered an agency of the Federal 

6 Government for purposes of section 1905 of title 18, 

7 United States Code, and any individual employed by 

8 an individual, entity, or organization under contract 

9 to the Commission under this Act shall be consid10 ered an employee of the Commission for the pur11 poses of section 1905 of title 18, United States 

12 Code. 

13 (2) NONDISCLOSURE.—Information obtained by 

14 the Commission, other than information available to 

15 the public, shall not be disclosed to any person in 

16 any manner, except— 

17 (A) to any Commission employee or any 

18 employee of any person under contract to the 

19 Commission for the purpose of receiving, re20 viewing, or processing such information; 

21 (B) upon a lawful of any court of com22 petent jurisdiction; or 

23 (C) when publicly released by the Commis24 sion, in an aggregate or summary form that 

25 does not directly or indirectly disclose— 


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1 (i) the identity of any person; or 

2 (ii) any information which could not 

3 be released under section 1905 of title 18, 

4 United States Code. 

5 SEC. 6. STAFF OF COMMISSION; EXPERTS AND CONSULT6 ANTS. 

7 (a) DIRECTOR.—The Chairman of the Commission 

8 may appoint an Executive Director for the Commission, 

9 subject to the confirmation of a majority of the members 

10 of the Commission. 

11 (b) STAFF.—Subject to rules prescribed by the Com12 mission, the Chairperson may appoint and fix the pay of 

13 such additional personnel as the Chairperson considers ap14 propriate. 

15 (c) APPLICABILITY OF CERTAIN CIVIL SERVICE

16 LAWS.—The Director and staff of the Commission may 

17 be appointed without regard to the provisions of title 5, 

18 United States Code, governing appointments in the com19 petitive service, and may be paid without regard to the 

20 provisions of chapter 51 and subchapter III of chapter 53 

21 of that title relating to classification and General Schedule 

22 pay rates, except that an individual so appointed may not 

23 receive pay in excess of the annual rate of basic pay for 

24 level V of the Executive Schedule under section 5316 of 

25 such title. 


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1 (d) EXPERTS AND CONSULTANTS.—The Chairman of 

2 the Commission may procure temporary and intermittent 

3 services under section 3109(b) of title 5, United States 

4 Code, at rates for individuals not to exceed the daily equiv5 alent of the annual rate of basic pay prescribed for level 

6 V of the Executive Schedule under section 5316 of such 

7 title. 

8 SEC. 7. CONTRACTS FOR RESEARCH. 

9 (a) ADVISORY COMMISSION ON INTERGOVERN10 MENTAL RELATIONS.— 

11 (1) IN GENERAL.—In carrying out the require12 ments of section 4, the Commission shall seek to 

13 contract with the Advisory Commission on Intergov14 ernmental Relations for— 

15 (A) a thorough review and cataloging of all 

16 applicable Federal, State, local, and Native 

17 American tribal laws, regulations, and ordi18 nances that pertain to gambling in the United 

19 States; and 

20 (B) assistance in conducting the studies 

21 required by the Commission under section 4(a), 

22 and in particular the review and assessments 

23 required in subparagraphs (A), (F), (H), and 

24 (I) of paragraph (2) of such section. 


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1 (2) REPORT.—Any contract entered into under 

2 paragraph (1) shall require the Advisory Commis3 sion on Intergovernmental Relations to submit a re4 port to the Commission detailing the results of the 

5 Advisory Commission’s efforts under the contract 

6 not later than 12 months after the date upon which 

7 the Commission first meets with a quorum present. 

8 (b) NATIONAL RESEARCH COUNCIL.— 

9 (1) IN GENERAL.—In carrying out the require10 ments of section 4, the Commission shall seek to 

11 contract with the National Research Council of the 

12 National Academy of Sciences for assistance in con13 ducting the studies required by the Commission 

14 under section 4(a). 

15 (2) REPORT.—Any contract entered into under 

16 paragraph (1) shall require the National Research 

17 Council of the National Academy of Sciences to sub18 mit a report to the Commission detailing the results 

19 of the Council’s efforts under the contract not later 

20 than 12 months after the date upon which the Com21 mission first meets with a quorum present. 

22 (c) OTHER ORGANIZATIONS.—No provision of this 

23 Act shall be construed as limiting the authority of the 

24 Commission to enter into contracts with any other person 


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1 for research necessary to carry out the Commission’s du2 ties under this Act. 

3 SEC. 8. TERMINATION. 

4 The Commission shall cease to exist at the end of 

5 the 60-day period beginning on the date the final report 

6 under section 4(b) is submitted to the President and the 

7 Congress. 

Æ 


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