I 

112TH CONGRESS 

1ST SESSION H. R. 2366 

To establish a program for State licensing of Internet poker, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 24, 2011 

Mr. BARTON of Texas (for himself, Mr. CAMPBELL, Ms. BERKLEY, Mr. 

HONDA, Mr. COHEN, Ms. LINDA T. SA ́NCHEZ of California, Mr. PERLMUTTER, Mr. KING of New York, Mr. CONYERS, Mr. FRANK of Massachusetts, Mr. PAUL, and Mr. GRIMM) introduced the following bill; which 

was referred to the Committee on Energy and Commerce, and in addition 

to the Committees on Financial Services and the Judiciary, for a period 

to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee 

concerned 

A BILL 

To establish a program for State licensing of Internet poker, 

and for other purposes. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Internet Gambling Prohibition, Poker Consumer Protec6 tion, and Strengthening UIGEA Act of 2011’’. 


srobinson on DSK4SPTVN1PROD with BILLS
2 

•HR 2366 IH

1 (b) TABLE OF CONTENTS.—The table of contents for 

2 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 

TITLE I—PROHIBITION ON UNLICENSED INTERNET GAMBLING 

AND INTERNET POKER CONSUMER PROTECTION 

Sec. 101. Definitions. 

Sec. 102. Prohibition on unlicensed Internet gambling. 

Sec. 103. Department of Commerce qualification and oversight of State agencies. 

Sec. 104. Licensing by qualified State agencies. 

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. Inapplicability of certain provisions to interstate off-track wagers. 

Sec. 112. Construction and relation to other law. 

Sec. 113. Regulations. 

Sec. 114. Annual reports. 

Sec. 115. 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. 

3 SEC. 2. FINDINGS. 

4 Congress finds the following: 

5 (1) Since the development of the Internet, on6 line Web sites offering Internet gambling have raised 

7 numerous policy, consumer protection, and enforce8 ment concerns for Federal and State governments as 

9 such Web sites are run by operators located in many 

10 different countries and have sought to attract cus11 tomers from the United States. 


srobinson on DSK4SPTVN1PROD with BILLS
3 

•HR 2366 IH

1 (2) The Unlawful Internet Gambling Enforce2 ment Act of 2006 (title VIII of Public Law 109– 

3 347; 120 Stat. 1952) was intended to aid enforce4 ment efforts against unlawful Internet operators and 

5 to limit unlawful Internet gaming involving United 

6 States persons. However, that Act has only been 

7 partially successful in doing so. 

8 (3) There is uncertainty about the laws of the 

9 United States governing Internet gambling and 

10 Internet poker, though not about laws governing 

11 Internet sports betting. The Department of Justice 

12 has maintained that a broad range of activity is ille13 gal, including activity that Congress intended to le14 galize under the Interstate Horseracing Act of 1978. 

15 Certain court decisions have used logic not con16 sistent with aspects of the position of the Depart17 ment of Justice. Enforcement efforts would be aided 

18 by bringing greater clarity to this area. 

19 (4) Additional tools to assist law enforcement in 

20 the prevention of unlawful Internet gaming activities 

21 would be important and beneficial. Maintenance of a 

22 list of unlicensed Internet gambling enterprises and 

23 the owners, operators, and key personnel of such en24 terprises (as well as entities and related personnel 

25 found unsuitable) would aid those law enforcement 


srobinson on DSK4SPTVN1PROD with BILLS
4 

•HR 2366 IH

1 efforts and would make the Unlawful Internet Gam2 bling Enforcement Act more effective. 

3 (5) Poker is distinct from the class of games of 

4 chance traditionally defined as gambling in that, 

5 players compete against each other, and not the per6 son or entity hosting the game (sometimes called 

7 ‘‘the house’’), and that over any significant interval, 

8 the outcome of a poker game is predominantly deter9 mined by the skill of the participants. 

10 (6) United States consumers would benefit from 

11 a program of Internet poker regulation which recog12 nizes the interstate nature of the Internet, but nev13 ertheless preserves the prerogatives of States. Such 

14 a system would require strict licensing of Internet 

15 poker providers and would require licensee operators 

16 to— 

17 (A) have effective means to prevent minors 

18 from playing poker on-line; 

19 (B) identify and help treat problem gam20 blers; to ensure that games are fair; 

21 (C) allow players to self-exclude and limit 

22 losses; and 

23 (D) prevent money laundering. 

24 (7) Such a program would create a new indus25 try within the United States creating thousands of 


srobinson on DSK4SPTVN1PROD with BILLS
5 

•HR 2366 IH

1 jobs and substantial tax revenue for Federal and 

2 State governments. 

3 TITLE I—PROHIBITION ON UNLI4 CENSED INTERNET GAM5 BLING AND INTERNET POKER 

6 CONSUMER PROTECTION 

7 SEC. 101. DEFINITIONS. 

8 As used in this title, the following definitions apply: 

9 (1) APPLICANT.—The term ‘‘applicant’’ means 

10 any person who has applied for a license pursuant 

11 to this title. 

12 (2) BET OR WAGER.— 

13 (A) IN GENERAL.—Except as provided in 

14 subparagraph (B), the term ‘‘bet or wager’’ has 

15 the meaning given the term in section 5362 of 

16 title 31, United States Code. 

17 (B) EXCEPTION.—The term ‘‘bet or 

18 wager’’ does not include the following: 

19 (i) INTERSTATE HORSERACING.—A 

20 bet or wager that is permissible under the 

21 Interstate Horseracing Act of 1978 (15 

22 U.S.C. 3001 et seq.). 

23 (ii) CERTAIN INTRASTATE TRANS24 ACTIONS.—Placing, receiving, or otherwise 

25 transmitting a bet or wager— 


srobinson on DSK4SPTVN1PROD with BILLS
6 

•HR 2366 IH

1 (I) as described in subparagraph 

2 (B) of section 5362(10) of title 31, 

3 United States Code, and clarified by 

4 subparagraph (E) of such section; and 

5 (II) authorized under a license 

6 that was issued by a regulatory body 

7 of a State or Indian tribe on or before 

8 the date of the enactment of this Act. 

9 (iii) INTRASTATE LOTTERY TRANS10 ACTIONS.—A bet or wager that is— 

11 (I) a chance or opportunity to 

12 win a lottery or other prize (which op13 portunity to win is predominantly sub14 ject to chance) authorized by a State 

15 or Indian tribe; and 

16 (II) a placing, receiving, or trans17 mitting of a bet or wager as described 

18 in such subparagraph (B) and clari19 fied by subparagraph (E) of such sec20 tion 5362(10). 

21 (iv) INTRATRIBAL TRANSACTIONS.— 

22 Placing, receiving, or otherwise transmit23 ting a bet or wager as described in sub24 paragraph (C) of such section 5362(10), as 

25 clarified by such subparagraph (E). 


srobinson on DSK4SPTVN1PROD with BILLS
7 

•HR 2366 IH

1 (3) CASINO GAMING.— 

2 (A) IN GENERAL.—Except as provided in 

3 subparagraph (B), the term ‘‘casino gaming’’ 

4 means the full range of casino gaming activity 

5 licensed by regulatory bodies of States or In6 dian tribes that would be qualified as class III 

7 gaming under section 4 of the Indian Gaming 

8 Regulatory Act (25 U.S.C. 2703), if that Act 

9 were applicable to the gaming. 

10 (B) EXCEPTION.—The term ‘‘casino gam11 ing’’ does not include lotteries of States or In12 dian tribes. 

13 (4) CASINO GAMING FACILITIES.—The term 

14 ‘‘casino gaming facility’’ means a facility that pro15 vides casino gaming on a riverboat, at a race track, 

16 or in another facility that hosts 500 or more gaming 

17 devices in 1 physical location pursuant to a duly au18 thorized license issued by a gaming regulatory au19 thority of a State or Indian tribe. 

20 (5) GAMING DEVICE.— 

21 (A) IN GENERAL.—Except as provided in 

22 subparagraph (B), the term ‘‘gaming device’’ 

23 means any computer-based gambling machine, 

24 including slot machines and video lottery termiVerDate Mar 15 2010 22:01 Jun 28, 2011 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2366.IH H2366

srobinson on DSK4SPTVN1PROD with BILLS
8 

•HR 2366 IH

1 nals that have been approved by a gaming regu2 latory authority of a State or Indian tribe. 

3 (B) EXCEPTION.—The term ‘‘gaming de4 vice’’ does not include machines that process 

5 bets or wagers for pari-mutuel betting pools. 

6 (6) INDIAN LANDS AND INDIAN TRIBE.—The 

7 terms ‘‘Indian lands’’ and ‘‘Indian tribe’’ have the 

8 meaning given the terms in section 4 of the Indian 

9 Gaming Regulatory Act (25 U.S.C. 2703). 

10 (7) INTERNET.—The term ‘‘Internet’’ has the 

11 meaning given the term in section 5362 of title 31, 

12 United States Code. 

13 (8) INTERNET GAMBLING FACILITY.—The term 

14 ‘‘Internet gambling facility’’ means an Internet Web 

15 site, or similar communications facility in which 

16 transmissions may cross State boundaries, through 

17 which a bet or wager is initiated, received, or other18 wise made, whether transmitted by telephone, Inter19 net, satellite, or other wire or wireless communica20 tion facility, service, or medium. 

21 (9) INTERNET POKER.—The term ‘‘Internet 

22 poker’’ means a poker game, hand, tournament, or 

23 other contest of poker offered through the use of an 

24 Internet poker facility. 


srobinson on DSK4SPTVN1PROD with BILLS
9 

•HR 2366 IH

1 (10) INTERNET POKER FACILITY.—The term 

2 ‘‘Internet poker facility’’ means a type of Internet 

3 gambling facility that provides bets or wagers only 

4 with respect to a game, hand, tournament, or other 

5 contest of poker. 

6 (11) LICENSEE.—The term ‘‘licensee’’ means a 

7 person who operates an Internet poker facility under 

8 a license issued by a qualified State agency pursuant 

9 to this title. 

10 (12) LIVE RACING.—The term ‘‘live racing’’ 

11 means, with respect to a qualified race track, the 

12 conduct of live thoroughbred horse races at such 

13 race track, but does not include any races 

14 simulcasted from a separate race track. 

15 (13) OPERATE AN INTERNET GAMBLING FACIL16 ITY.—The term ‘‘operate an Internet gambling facil17 ity’’ means to conduct, direct, manage, own, super18 vise, or control an Internet gambling facility. 

19 (14) OPERATE AN INTERNET POKER FACIL20 ITY.—The term ‘‘operate an Internet poker facility’’ 

21 means to conduct, direct, manage, own, supervise, or 

22 control an Internet poker facility. 

23 (15) POKER.—The term ‘‘poker’’ means any of 

24 several card games in which players compete against 

25 each other, and not the person or entity hosting the 


srobinson on DSK4SPTVN1PROD with BILLS
10 

•HR 2366 IH

1 game (sometimes called ‘‘the house’’), and that over 

2 any significant interval, the outcome of a poker 

3 game is predominantly determined by the skill of the 

4 participants. 

5 (16) QUALIFIED STATE AGENCY.—The term 

6 ‘‘qualified State agency’’ means— 

7 (A) a State agency or regulatory body of 

8 an Indian tribe that has been designated as a 

9 qualified body under paragraph (1) or (3) of 

10 section 105(a); or 

11 (B) the Office of Internet Poker Oversight 

12 established under section 106(a) and designated 

13 under paragraph (2) of section 105(a). 

14 (17) QUALIFIED CARD ROOM.—The term 

15 ‘‘qualified card room’’ means a facility that has been 

16 licensed by a State or Indian tribe to provide at 

17 least 250 tables in 1 physical facility for bets or wa18 gers on poker. 

19 (18) QUALIFIED MOBILE GAMING SYSTEM.— 

20 The term ‘‘qualified mobile gaming system’’ means 

21 a system for the conduct of casino gaming through 

22 communications devices or gaming devices operated 

23 at a casino gaming facility by the use of communica24 tion technology that allows a person to transmit 

25 wirelessly information to a computer to assist in the 


srobinson on DSK4SPTVN1PROD with BILLS
11 

•HR 2366 IH

1 placing of a bet or wager and corresponding infor2 mation related to the display of the game, game out3 comes, or other similar information and which is li4 censed for operation at a casino gaming facility by 

5 a State or Indian tribe. 

6 (19) QUALIFIED RACE TRACK.—The term 

7 ‘‘qualified race track’’ means a race track or other 

8 pari-mutuel wagering facility that— 

9 (A) has been licensed by a regulatory au10 thority of a State or Indian tribe to accept pari11 mutuel wagers on horse races; and 

12 (B) has— 

13 (i) at least 500 gaming devices at 1 

14 physical location; or 

15 (ii) processed at least $200,000,000 

16 or more in gross wagering on horse racing 

17 during any 3 of the 5 years preceding the 

18 date of the enactment of this Act. 

19 (20) REMOTE GAMING EQUIPMENT.— 

20 (A) IN GENERAL.—Except as provided in 

21 subparagraph (B), the term ‘‘remote gaming 

22 equipment’’ means electronic or other equip23 ment principally used by or on behalf of an op24 erator of an Internet poker facility, including by 

25 any significant vendor to such operator, to— 


srobinson on DSK4SPTVN1PROD with BILLS
12 

•HR 2366 IH

1 (i) register a person’s participation in 

2 Internet poker and to store information re3 lating thereto; 

4 (ii) present to persons who are partici5 pating or who may participate in Internet 

6 poker the game that is to be played; 

7 (iii) determine all or part of, or the ef8 fect of, a result relevant to a game, hand, 

9 tournament, or other contest of Internet 

10 poker and to store information relating 

11 thereto; 

12 (iv) accept payment with respect to 

13 Internet poker from the player; or 

14 (v) authorize payment of any winnings 

15 in respect of Internet poker. 

16 (B) EXCEPTION.—The term ‘‘remote gam17 ing equipment’’ does not include the following: 

18 (i) Equipment used for business con19 tinuity, back-up, excess capacity, or other 

20 secondary use. 

21 (ii) A computer which is used by a 

22 person to participate in Internet poker un23 less the computer is provided by or on be24 half of the person who is conducting or 

25 providing the facilities for the game. 


srobinson on DSK4SPTVN1PROD with BILLS
13 

•HR 2366 IH

1 (iii) Equipment operated in the ordi2 nary course of providing banking, tele3 communications, or payment processing 

4 services. 

5 (iv) Such other equipment that pro6 vides ancillary services as the Secretary 

7 considers appropriate. 

8 (21) SECRETARY.—The term ‘‘Secretary’’ 

9 means the Secretary of Commerce. 

10 (22) SIGNIFICANT VENDOR.—The term ‘‘signifi11 cant vendor’’ means a person who— 

12 (A) on behalf of a licensee, knowingly man13 ages, administers, or controls bets or wagers 

14 that are initiated, received, or otherwise made 

15 within the United States; 

16 (B) on behalf of a licensee, knowingly 

17 manages, administers, or controls the games 

18 with which such bets or wagers are associated; 

19 (C) on behalf of a licensee, develops, main20 tains, or operates the software or other system 

21 programs or hardware on which the games or 

22 the bets or wagers are managed, administered, 

23 or controlled; 

24 (D) provides the trademarks, trade names, 

25 service marks, or similar intellectual property 


srobinson on DSK4SPTVN1PROD with BILLS
14 

•HR 2366 IH

1 under which a licensee identifies its Internet 

2 poker facility to its customers in the United 

3 States; 

4 (E) provides information on individuals in 

5 the United States that made bets or wagers 

6 with an Internet gambling facility not licensed 

7 under this title via a database or customer lists; 

8 (F) provides any products, services, or as9 sets to a licensee and is paid a percentage of 

10 gaming revenue or Internet poker commission 

11 fees by the licensee (not including fees to finan12 cial institutions and payment providers for fa13 cilitating a deposit by a customer); or 

14 (G) with respect to an applicant, proposes 

15 to provide any of the activities, services, or 

16 items identified in subparagraphs (A) through 

17 (E). 

18 (23) SPORTING EVENT.— 

19 (A) IN GENERAL.—Except as provided in 

20 subparagraph (B), the term ‘‘sporting event’’ 

21 means any athletic competition, whether profes22 sional, scholastic, or amateur or any perform23 ance of any athlete in such competitions. 

24 (B) EXCEPTION.—The term ‘‘sporting 

25 event’’ does not include any activity described 


srobinson on DSK4SPTVN1PROD with BILLS
15 

•HR 2366 IH

1 in section 3704(a)(4) of title 28, United States 

2 Code. 

3 (24) STATE.—The term ‘‘State’’ means each of 

4 the several States of the United States, the District 

5 of Columbia, and any commonwealth, territory, or 

6 possession of the United States. 

7 SEC. 102. PROHIBITION ON UNLICENSED INTERNET GAM8 BLING. 

9 (a) PROHIBITION.— 

10 (1) IN GENERAL.—It shall be unlawful for a 

11 person to operate an Internet gambling facility with12 out a license in good standing issued to such person 

13 by a qualified State or tribal agency under this title. 

14 (2) EXCEPTION.—Paragraph (1) shall not 

15 apply to the operation of an Internet gambling facil16 ity by a person located outside the United States in 

17 which bets or wagers are initiated, received, or oth18 erwise made by individuals located outside the 

19 United States. 

20 (b) CRIMINAL PENALTIES.—Any person who violates 

21 this section shall be fined under title 18, United States 

22 Code, imprisoned for not more than 5 years, or both. 


srobinson on DSK4SPTVN1PROD with BILLS
16 

•HR 2366 IH

1 SEC. 103. DEPARTMENT OF COMMERCE QUALIFICATION 

2 AND OVERSIGHT OF STATE AGENCIES. 

3 (a) COMMERCE RESPONSIBILITIES AND POWERS.— 

4 The Secretary shall have responsibility and authority for 

5 the following activities: 

6 (1) Reviewing and qualifying State agencies to 

7 issue licenses under this title. 

8 (2) Exercising oversight over qualified State 

9 agencies to ensure that such agencies— 

10 (A) comply with the requirements of this 

11 title; and 

12 (B) carry out their regulatory and enforce13 ment functions under this title with appropriate 

14 diligence. 

15 (3) Investigating and taking appropriate reme16 dial action with respect to any qualified State agen17 cy. 

18 (4) Prescribing such regulations as may be nec19 essary to administer and enforce the provisions of 

20 this title. 

21 (b) OFFICE OF INTERNET POKER OVERSIGHT.— 

22 (1) ESTABLISHMENT.—The Secretary shall es23 tablish an office in the Department of Commerce, to 

24 be known as the ‘‘Office of Internet Poker Over25 sight’’ (in this subsection referred to as the ‘‘office’’) 


srobinson on DSK4SPTVN1PROD with BILLS
17 

•HR 2366 IH

1 to exercise the functions of the Secretary set out in 

2 this title. 

3 (2) DIRECTOR AND DELEGATION OF AUTHOR4 ITY.—The Secretary shall appoint a Director of the 

5 office from among individuals who have dem6 onstrated experience and expertise in regulating 

7 gaming activities and may delegate to the Director 

8 any authority, duty, or responsibility conferred upon 

9 the Secretary by this title. 

10 (c) DESIGNATION OF QUALIFIED STATE AGEN11 CIES.— 

12 (1) QUALIFICATION OF STATE AGENCIES.—The 

13 Secretary shall qualify any State agency that is des14 ignated to the Secretary by a State that wishes to 

15 participate in the licensing program to carry out the 

16 licensing and other functions under this title if the 

17 Secretary determines that such agency meets the 

18 minimum standards for qualification prescribed 

19 under paragraph (2). 

20 (2) MINIMUM STANDARDS FOR QUALIFIED

21 STATE AGENCIES.—The Secretary shall prescribe 

22 minimum standards for qualifying a State agency 

23 under this subsection, including minimum stand24 ards— 


srobinson on DSK4SPTVN1PROD with BILLS
18 

•HR 2366 IH

1 (A) relating to the size and qualification of 

2 staff of the agency to ensure a sufficient num3 ber of enforcement agents with experience in 

4 gaming regulatory enforcement areas to dis5 charge its intended functions and that the ap6 plicant have the sophistication and resources 

7 necessary to evaluate issues unique to the Inter8 net environment; 

9 (B) relating to the length of time the ap10 plicant has regulated other forms of gaming to 

11 ensure designations of only those applicants 

12 that have a history of demonstrated regulatory 

13 enforcement and oversight commensurate with 

14 the responsibilities imposed under this title; 

15 (C) for assessing the applicant’s experience 

16 and willingness to work with Federal authori17 ties, including the Financial Crimes Enforce18 ment Network; 

19 (D) prohibiting conflicts of interest to en20 sure that qualified State agencies are not con21 trolled, directly or indirectly, by persons that 

22 have any significant ownership interest in enti23 ties regulated under this title; 


srobinson on DSK4SPTVN1PROD with BILLS
19 

•HR 2366 IH

1 (E) for the capacity and experience of a 

2 qualified State agency in conducting rigorous 

3 suitability reviews; 

4 (F) for the enforcement and regulatory au5 thorities provided to the applicant under the 

6 law of the applicable State or Indian tribe, in7 cluding investigative authority, authority to im8 pose requirements on licensees, and authority to 

9 impose civil or other penalties; and 

10 (G) the Secretary considers relevant to the 

11 ability of an agency to serve as an effective 

12 qualified State agency. 

13 (3) WITHDRAWAL OF QUALIFICATION.— 

14 (A) IN GENERAL.—Beginning on the date 

15 that is 1 year after the date on which the Sec16 retary prescribes final regulations under this 

17 title, the Secretary may, after providing 60 

18 days notice to a qualified State agency, with19 draw the qualification of such agency under this 

20 section if the Secretary determines that the 

21 agency is not in compliance with the minimum 

22 standards set established under paragraph (2) 

23 or other requirements of this title. 

24 (B) OPPORTUNITY TO COMPLY.—The Sec25 retary may provide a State agency who receives 


srobinson on DSK4SPTVN1PROD with BILLS
20 

•HR 2366 IH

1 notice under subparagraph (A) with an oppor2 tunity to come into compliance for a period of 

3 not more than 180 days. The Secretary may ex4 tend such period by not more than 180 addi5 tional days if the State agency has made sub6 stantial progress toward compliance as of the 

7 expiration of the first 180-day period. 

8 (C) EFFECT OF NOTICE.—A State agency 

9 that receives notice under subparagraph (A) 

10 may not issue any new licenses under this title 

11 until the Secretary determines that the quali12 fied State agency is in compliance with the re13 quirements of this title and regulations pre14 scribed thereunder. 

15 (D) RIGHT TO APPEAL.—A State agency 

16 that has had its qualification withdrawn under 

17 this paragraph may appeal to the United States 

18 District Court for the District of Columbia that 

19 such withdrawal was an abuse of discretion. 

20 (4) ACTION UPON WITHDRAWAL OF QUALIFICA21 TION.— 

22 (A) IN GENERAL.—Except as provided in 

23 subparagraph (B), not later than 30 days after 

24 the date on which the Secretary withdraws the 

25 qualification of a State agency under paragraph 


srobinson on DSK4SPTVN1PROD with BILLS
21 

•HR 2366 IH

1 (3), each person with a license issued by the 

2 State agency shall— 

3 (i)(I) cease offering, accepting, and 

4 providing services with respect to bets or 

5 wagers from persons located in the United 

6 States under such license; and 

7 (II) return all customer deposits or 

8 place those sums the return of which to 

9 United States customers is not feasible due 

10 to change in customer address, bank de11 tails, or similar difficulty, in escrow in an 

12 account with a financial institution in the 

13 United States for safekeeping and orderly 

14 disposition by the Secretary; or 

15 (ii) apply for a new license from a dif16 ferent qualified State agency. 

17 (B) INTERIM OPERATION.—If a person ap18 plies for a new license under clause (ii) of sub19 paragraph (A), the person may continue the ac20 tivities described in clause (i)(I) of such sub21 paragraph until final action is taken on the li22 cense application by the qualified State agency. 

23 (C) INTERIM REGULATORY OVERSIGHT.— 

24 Until final action is taken under subparagraph 

25 (B) with respect to a person, the Secretary 


srobinson on DSK4SPTVN1PROD with BILLS
22 

•HR 2366 IH

1 shall have enforcement and regulatory authority 

2 over the licensed activities of such person. 

3 (d) OVERSIGHT OF QUALIFIED STATE AGENCIES.— 

4 The Secretary may investigate and take such action as the 

5 Secretary considers appropriate with respect to any quali6 fied State agency that appears, based upon the Secretary’s 

7 own inquiry or based upon credible information provided 

8 by other persons, including licensees or law enforcement 

9 officials, to be deficient or substantially less rigorous than 

10 other qualified State agencies in the discharge of its re11 sponsibilities under this title. 

12 (e) CONSULTATION WITH INDIAN TRIBES.—In im13 plementing this title, the Secretary shall conduct meaning14 ful consultation with Indian tribes regarding all aspects 

15 of this title which affect Indian tribes. 

16 SEC. 104. LICENSING BY QUALIFIED STATE AGENCIES. 

17 (a) INTERNET POKER FACILITY LICENSING PRO18 GRAM.— 

19 (1) AUTHORITY TO OPERATE INTERNET POKER

20 FACILITY UNDER VALID LICENSE.—Notwithstanding 

21 any other provision of law and subject to the provi22 sions of this title, a licensee may accept a bet or 

23 wager with respect to Internet poker from an indi24 vidual located in the United States and may offer reVerDate Mar 15 2010 22:01 Jun 28, 2011 Jkt 099200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\H2366.IH H2366

srobinson on DSK4SPTVN1PROD with BILLS
23 

•HR 2366 IH

1 lated services so long as the license of the licensee 

2 issued under this title remains in good standing. 

3 (2) SIGNIFICANT VENDORS.—If a person seeks 

4 a certificate of suitability from a qualified State 

5 agency to provide services to a licensee or applicant 

6 as a significant vendor with respect to an Internet 

7 poker facility, such person shall not be required to 

8 obtain a license under this title to provide such serv9 ices with respect to that Internet poker facility. 

10 (3) LIMITATIONS IMPOSED BY STATES AND IN11 DIAN TRIBES.— 

12 (A) ACTION BY A STATE.—No licensee 

13 may engage, under any license issued under 

14 this title, in the operation of an Internet poker 

15 facility that knowingly accepts bets or wagers 

16 initiated by persons who reside in any State 

17 which provides notice that it will limit such bets 

18 or wagers, if the Governor or other chief execu19 tive officer of such State informs the Secretary 

20 of such limitation, in a manner which clearly 

21 identifies the nature and extent of such limita22 tion. 

23 (B) CHANGES TO STATE LIMITATIONS.— 

24 The establishment, repeal, or amendment by a 

25 State of any limitation described in subparaVerDate Mar 15 2010 22:01 Jun 28, 2011 Jkt 099200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\H2366.IH H2366

srobinson on DSK4SPTVN1PROD with BILLS
24 

•HR 2366 IH

1 graph (A) shall apply, for purposes of this title, 

2 beginning on the day that occurs after the end 

3 of the 60-day period beginning on the later of— 

4 (i) the date a notice of such establish5 ment, repeal, or amendment is provided by 

6 the Governor or other chief executive offi7 cer of such State in writing to the Sec8 retary; or 

9 (ii) the effective date of such estab10 lishment, repeal, or amendment. 

11 (C) APPLICATION OF STATE ACTION TO

12 TRIBAL LANDS OF INDIAN TRIBES.—Any State 

13 limitation described in subparagraph (A) shall 

14 not apply to the acceptance by a licensee of bets 

15 or wagers from persons located within the tribal 

16 lands of an Indian tribe that— 

17 (i) has itself opted out pursuant to 

18 subsection (b) (in which case the tribal 

19 opt-out exercise under such subsection 

20 shall apply); or 

21 (ii) would be entitled pursuant to 

22 other applicable law to permit such bets or 

23 wagers to be initiated and received within 

24 its territory without use of the Internet. 


srobinson on DSK4SPTVN1PROD with BILLS
25 

•HR 2366 IH

1 (D) ACTIONS BY AN INDIAN TRIBE.—No 

2 Internet gambling licensee knowingly may ac3 cept a bet or wager from a person located in 

4 the tribal lands of any Indian tribe which limits 

5 such gambling activities or other contests if the 

6 principal chief or other chief executive officer of 

7 such Indian tribe informs the Secretary of such 

8 limitation, in a manner which clearly identifies 

9 the nature and extent of such limitation. 

10 (E) CHANGES TO STATE LIMITATIONS.— 

11 The establishment, repeal, or amendment by 

12 any Indian tribe of any limitation referred to in 

13 subparagraph (D) shall apply, for purposes of 

14 this title, beginning on the day that occurs after 

15 the end of the 60-day period beginning on the 

16 later of— 

17 (i) the date a notice of such establish18 ment, repeal, or amendment is provided by 

19 the principal chief or other chief executive 

20 officer of such Indian tribe in writing to 

21 the Secretary; or 

22 (ii) the effective date of such estab23 lishment, repeal, or amendment. 

24 (F) NOTIFICATION AND ENFORCEMENT OF

25 STATE AND TRIBE LIMITATIONS.— 


srobinson on DSK4SPTVN1PROD with BILLS
26 

•HR 2366 IH

1 (i) NOTIFICATION AND MEASURES TO

2 ENSURE COMPLIANCE.—The Secretary 

3 shall notify all licensees and applicants of 

4 all States and Indian tribes that have pro5 vided notice pursuant to subparagraph 

6 (A)(ii) of (C)(ii), as the case may be, 

7 promptly upon receipt of such notice and 

8 in no event fewer than 30 days before the 

9 effective date of such notice. The Secretary 

10 shall take effective measures to ensure that 

11 any licensee under this subchapter, as a 

12 condition of the license, complies with any 

13 limitation or prohibition imposed by any 

14 State or Indian tribe to which the licensee 

15 is subject. 

16 (ii) VIOLATIONS.—A violation of sub17 paragraph (A) of (C) shall be a violation of 

18 this title enforceable under section 105. 

19 (b) APPLICATION FOR LICENSE.— 

20 (1) APPLICATION.—Except as provided in sub21 paragraph (B), a person seeking to operate an Inter22 net poker facility under this title shall submit to the 

23 qualified State agency of the State where servers for 

24 such Internet poker facility are located an applica25 tion for a license at such time, in such form, and in 


srobinson on DSK4SPTVN1PROD with BILLS
27 

•HR 2366 IH

1 such manner as the qualified State agency considers 

2 appropriate, including at a minimum the following: 

3 (A) Complete financial information about 

4 the applicant. 

5 (B) Documentation showing the organiza6 tion of the applicant and all related businesses 

7 and affiliates. 

8 (C) The criminal and financial history of— 

9 (i) the applicant; 

10 (ii) each of the senior executives and 

11 directors of the applicant; 

12 (iii) any other person who is in control 

13 of the applicant; and 

14 (iv) such other persons as the quali15 fied State agency considers appropriate. 

16 (D) Such other information as may be nec17 essary for the suitability analysis required 

18 under subsection (c). 

19 (E) Disclosure of all other applications for 

20 licenses previously or simultaneously submitted 

21 under this paragraph to other qualified State 

22 agencies and whether those applications are 

23 pending, were granted, or were denied. 

24 (F) A detailed description of the appli25 cant’s plan for complying with all applicable reVerDate Mar 15 2010 22:01 Jun 28, 2011 Jkt 099200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\H2366.IH H2366

srobinson on DSK4SPTVN1PROD with BILLS
28 

•HR 2366 IH

1 quirements and regulations prescribed pursuant 

2 to this title. 

3 (G) A certification by the applicant that 

4 the applicant agrees to be subject to— 

5 (i) jurisdiction in United States Fed6 eral courts and in the courts of the State 

7 or Indian tribe of the qualified State agen8 cy to which the applicant has applied; and 

9 (ii) all applicable provisions of United 

10 States law. 

11 (2) NOTICE TO THE SECRETARY.—Each quali12 fied State agency shall report all applicants for li13 censure and the dispositions of their applications to 

14 the Secretary promptly upon disposition of each ap15 plication or in such intervals as the Secretary may 

16 prescribe. Such report shall include such information 

17 or documentation as the Secretary may require. 

18 (c) STANDARDS FOR LICENSE ISSUANCE; SUIT19 ABILITY QUALIFICATIONS AND DISQUALIFICATION

20 STANDARDS.— 

21 (1) SUITABILITY FOR LICENSING.—No appli22 cant shall be eligible to obtain a license under this 

23 title unless a qualified State agency, with whom the 

24 applicant has filed an application for a license, has 

25 determined, upon completion of a background check 


srobinson on DSK4SPTVN1PROD with BILLS
29 

•HR 2366 IH

1 and investigation, that the applicant, any person 

2 deemed to be in control of the applicant, all signifi3 cant vendors of the applicant, and any other person 

4 determined by the qualified State agency as having 

5 significant influence on the applicant are suitable for 

6 licensing or for receiving a certificate of suitability 

7 as applicable. 

8 (2) INVESTIGATION.— 

9 (A) DETERMINATION OF SUITABILITY.— 

10 Prior to issuing a license under this section, a 

11 qualified State agency shall conduct the inves12 tigation and analysis described in paragraph (1) 

13 to determine whether the applicant or person— 

14 (i) is a person of good character, hon15 esty, and integrity; 

16 (ii) is a person whose prior activities, 

17 criminal record, if any, reputation, habits, 

18 and associations do not— 

19 (I) pose a threat to the public in20 terest or to the effective regulation 

21 and control of Internet poker facili22 ties; or 

23 (II) create or enhance the dan24 gers of unsuitable, unfair, or illegal 

25 practices, methods, and activities in 


srobinson on DSK4SPTVN1PROD with BILLS
30 

•HR 2366 IH

1 the conduct of Internet poker facilities 

2 or the carrying on of the business and 

3 financial arrangements incidental to 

4 such facilities; 

5 (iii) is capable of and likely to conduct 

6 the activities for which the applicant is li7 censed or receives a certificate of suit8 ability in accordance with the provisions of 

9 this title, any regulations prescribed under 

10 this title, and all other applicable laws; 

11 (iv) with respect to applicants, has or 

12 guarantees acquisition of adequate busi13 ness competence and experience in the op14 eration of casino gaming facilities, Internet 

15 poker facilities, or Internet gambling facili16 ties; 

17 (v) with respect to applicants, has or 

18 will obtain sufficient financing for the na19 ture of the proposed operation and from a 

20 suitable source; and 

21 (vi) has disclosed to the qualified 

22 State agency all known affiliations or rela23 tionships, whether direct or indirect. 

24 (B) UNSUITABLE.—An applicant or any 

25 other person may not be determined to be suitVerDate Mar 15 2010 22:46 Jun 28, 2011 Jkt 099200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\H2366.IH H2366

srobinson on DSK4SPTVN1PROD with BILLS
31 

•HR 2366 IH

1 able under this subsection if the applicant or 

2 such person— 

3 (i) has failed to provide information 

4 and documentation material to a deter5 mination of suitability for licensing under 

6 paragraph (1); 

7 (ii) has supplied information which is 

8 untrue or misleading as to a material fact 

9 pertaining to any such determination; 

10 (iii) has been convicted of an offense 

11 that is punishable by imprisonment of 

12 more than 1 year; 

13 (iv) is delinquent in the payment of 

14 any applicable Federal or State tax, tax 

15 penalty, addition to tax, or interest owed 

16 to a jurisdiction in which the applicant or 

17 person operates or does business, unless 

18 such payment has been extended or is the 

19 subject of a pending judicial or administra20 tive dispute; 

21 (v) has not certified in writing that 

22 the person submits to personal jurisdiction 

23 in the United States; or 


srobinson on DSK4SPTVN1PROD with BILLS
32 

•HR 2366 IH

1 (vi) fails to comply with such other 

2 standard as the applicable qualified State 

3 agency considers appropriate. 

4 (C) CONSIDERATION OF PREVIOUS OPER5 ATION OF INTERNET GAMBLING FACILITY.—In 

6 carrying out a suitability analysis of a person 

7 under this subsection, a qualified State agency 

8 shall consider whether such person operated an 

9 Internet gambling facility before the date of the 

10 enactment of this Act and the scope of such 

11 person’s activities with respect to such oper12 ation. 

13 (3) ONGOING REQUIREMENT.—A licensee (and 

14 any other person who is required to be determined 

15 to be suitable for licensing in connection with such 

16 licensee) shall meet the standards necessary to be 

17 suitable for licensing or to receive a certificate of 

18 suitability, as the case may be, throughout the term 

19 of the license. 

20 (4) CERTIFICATE OF SUITABILITY FOR SIGNIFI21 CANT VENDORS.— 

22 (A) IN GENERAL.—If a qualifying body de23 termines under paragraph (1) that a significant 

24 vendor of an applicant is suitable under such 

25 paragraph, the qualifying body shall issue a cerVerDate Mar 15 2010 22:01 Jun 28, 2011 Jkt 099200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\H2366.IH H2366

srobinson on DSK4SPTVN1PROD with BILLS
33 

•HR 2366 IH

1 tificate to such vendor that certifies the suit2 ability of such vendor. 

3 (B) REVOCATION OF CERTIFICATE.—A 

4 qualified State agency that issues a certificate 

5 to a significant vendor under subparagraph (A) 

6 shall revoke the certificate if at any time the 

7 significant vendor no longer meets the stand8 ards necessary for a determination of suit9 ability. 

10 (D) CERTIFICATES ISSUED BY OTHER

11 QUALIFIED STATE AGENCY.—A qualified State 

12 agency may, but need not, accept a certificate 

13 issued to a significant vendor by another quali14 fied State agency as evidence of the suitability 

15 of the significant vendor. 

16 (5) OTHER VENDORS.— 

17 (A) NOTICE.—A licensee shall promptly 

18 notify the qualified State agency that issued the 

19 license to the licensee of all persons that are 

20 not significant vendors that— 

21 (i) direct, provide, or solicit customers 

22 to or for the licensee’s Internet poker facil23 ity, or materially assist in any of those 

24 tasks, in return for a commission or other 

25 fee; 


srobinson on DSK4SPTVN1PROD with BILLS
34 

•HR 2366 IH

1 (ii) hold themselves out to the public 

2 as offering bets or wagers on licensee’s be3 half; 

4 (iii) offer bets or wagers under their 

5 own names or brands but using and rely6 ing on licensee’s Internet poker facilities; 

7 (iv) license trademarks, trade names, 

8 service marks, or other similar intellectual 

9 property to the licensee; or 

10 (v) own a substantial interest in or 

11 control a person described in clause (i), 

12 (ii), (iii), or (iv). 

13 (B) SUITABILITY OF OTHER VENDORS AND

14 PERSONS.—A qualified State agency that re15 views an application of an applicant for a li16 cense or issues a license to a licensee may, at 

17 the sole discretion of the qualified State agency 

18 and on a case-by-case basis, require as a condi19 tion of such license that a person meet suit20 ability requirements under paragraph (1) if the 

21 person— 

22 (i) is described in subparagraph (A) 

23 with respect to the applicant or licensee; 

24 (ii) provides services to an applicant 

25 or licensee and the qualified State agency 


srobinson on DSK4SPTVN1PROD with BILLS
35 

•HR 2366 IH

1 determines that with respect to such serv2 ices, there is a substantial risk of cir3 cumvention of the suitability requirements 

4 applicable to significant vendors; or 

5 (iii) is associated with the applicant or 

6 licensee or one of the significant vendors of 

7 the applicant or licensee and the qualified 

8 State agency determines such person may 

9 pose a threat to the integrity of Internet 

10 poker facilities operated by the applicant 

11 or licensee. 

12 (C) INFORMATION.—A qualified State 

13 agency may require such information from an 

14 applicant, licensee, significant vendor or other 

15 person identified in this paragraph as the quali16 fied State agency considers necessary to carry 

17 out this paragraph. 

18 (6) ENFORCEMENT ACTIONS.— 

19 (A) IN GENERAL.—If the Secretary or the 

20 qualified State agency that issued a license to 

21 a licensee finds that the licensee, or any other 

22 person that is subject to a required determina23 tion of suitability in connection with such li24 censee, fails to meet the suitability require25 ments of this subsection at any time during the 


srobinson on DSK4SPTVN1PROD with BILLS
36 

•HR 2366 IH

1 tenure of the license, the Secretary or the quali2 fied State agency may take action to protect the 

3 public interest, including, if the Secretary or 

4 qualified State agency considers necessary, the 

5 suspension or termination of the license. 

6 (B) IMPOSITION OF CONDITIONS INCLUD7 ING REMOVAL OF PARTIES.—Notwithstanding a 

8 determination under subparagraph (A), the 

9 Secretary or the qualified State agency that 

10 issued a license to a licensee may allow the li11 censee to continue engaging in licensed activi12 ties by imposing conditions on the person to 

13 which subparagraph (A) is applicable under 

14 penalty of revocation or suspension of a license 

15 or certificate of suitability, including— 

16 (i) the identification of any person de17 termined to be unsuitable; and 

18 (ii) the establishment of appropriate 

19 safeguards to ensure such person is ex20 cluded from any management or involve21 ment in operation of the licensed activities. 

22 (7) ADMINISTRATIVE PROVISIONS.— 

23 (A) BACKGROUND CHECK AND INVESTIGA24 TION.—Each qualified State agency shall estab25 lish standards and procedures for conducting 


srobinson on DSK4SPTVN1PROD with BILLS
37 

•HR 2366 IH

1 background checks and investigations for pur2 poses of this subsection. 

3 (B) PRIVILEGE.—Any written or oral 

4 statement made in the course of an official pro5 ceeding of the Secretary or a qualified State 

6 agency, by any member thereof, or any witness 

7 testifying under oath which is relevant to the 

8 purpose of the proceeding and relates to the re9 view of an application for a license under this 

10 title, is privileged and shall not give rise to li11 ability for defamation or relief in any civil ac12 tion. 

13 (C) ADDITIONAL PRIVILEGE.—Notwith14 standing section 552 of title 5, United States 

15 Code, or any other Federal, State, or tribal law 

16 to the contrary, any communication or docu17 ment of an applicant, licensee, significant ven18 dor, or affiliate thereof, which is made or trans19 mitted pursuant to this title to the Secretary or 

20 a qualified State agency or any of their agents 

21 or employees, except information that is already 

22 public, shall be privileged and shall not be dis23 closed by the Secretary or the qualified State 

24 agency without the prior written consent of the 

25 applicant, licensee, significant vendor, or affilVerDate Mar 15 2010 22:01 Jun 28, 2011 Jkt 099200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\H2366.IH H2366

srobinson on DSK4SPTVN1PROD with BILLS
38 

•HR 2366 IH

1 iate thereof (as applicable), or pursuant to a 

2 lawful court order, grand jury subpoena, or 

3 similar procedure. To the extent practicable, the 

4 Secretary or qualified State agency shall pro5 vide timely notice of the proceedings to the ap6 plicant, licensee, significant vendor, or affiliate 

7 thereof (as applicable). 

8 (D) PRESERVATION OF PRIVILEGE RECOG9 NIZED UNDER OTHER PROVISIONS OF LAW.— 

10 Any privilege recognized under any other appli11 cable provision of Federal, State, or tribal law, 

12 including attorney-client, physician-patient, and 

13 accountant-client privileges, shall not be waived 

14 or lost because a document or communication 

15 otherwise protected by the privilege is disclosed 

16 to the Secretary or a qualified State agency. 

17 (E) CONFIDENTIALITY.—Any communica18 tion or document, except information that is al19 ready public, shall be treated as confidential 

20 and may not be disclosed, in whole or part, by 

21 the Secretary or a qualified State agency with22 out a lawful court order or as otherwise ex23 pressly required by law, if the communication 

24 or document is— 


srobinson on DSK4SPTVN1PROD with BILLS
39 

•HR 2366 IH

1 (i) required by the Secretary or quali2 fied State agency to be disclosed by the ap3 plicant, licensee, or significant vendor, in4 cluding applications, financial or earnings 

5 information, and criminal records, whether 

6 of the applicant or licensee or of any affil7 iate, employee, officer, director or signifi8 cant vendor thereof, or of any other third 

9 party; or 

10 (ii) prepared or obtained by an agent 

11 or employee of the Secretary or qualified 

12 State agency that contains information de13 scribed in clause (i). 

14 (d) ADDITIONAL REQUIREMENTS FOR A LICENSE.— 

15 In order to obtain a license under this section, an Internet 

16 poker facility shall demonstrate to the qualified State 

17 agency that such facility maintains appropriate safeguards 

18 and mechanisms, in accordance with standards established 

19 by the qualified State agency, including appropriate safe20 guards and mechanism to— 

21 (1) ensure, to a reasonable degree of certainty, 

22 that the individual placing a bet or wager is not less 

23 than 21 years of age; 

24 (2) ensure, to a reasonable degree of certainty, 

25 that the individual placing a bet or wager is physVerDate Mar 15 2010 22:01 Jun 28, 2011 Jkt 099200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\H2366.IH H2366

srobinson on DSK4SPTVN1PROD with BILLS
40 

•HR 2366 IH

1 ically located in a jurisdiction that has not prohib2 ited such bets or wagers at the time the bet or 

3 wager is placed; 

4 (3) ensure, to a reasonable degree of certainty, 

5 that all taxes relating to Internet poker from per6 sons engaged in bets or wagers relating to such 

7 Internet poker are collected or reported, as required 

8 by law, at the time of any payment of proceeds of 

9 such bets or wagers; 

10 (4) ensure that all taxes relating to the oper11 ation of an Internet poker facility from any licensee 

12 are collected and disbursed as required by law and 

13 that adequate records to enable later audit or 

14 verification are maintained; 

15 (5) prevent, to a reasonable degree of certainty, 

16 fraud, money laundering, and terrorist financing; 

17 (6) ensure, to a reasonable degree of certainty, 

18 compliance with the requirements of section 106; 

19 (7) protect, to a reasonable degree of certainty, 

20 the privacy and online security of any person en21 gaged in bets or wagers with the licensee’s Internet 

22 poker facility; 

23 (8) ensure that any user fee required under 

24 subsection (e) is paid to the qualified State agency; 


srobinson on DSK4SPTVN1PROD with BILLS
41 

•HR 2366 IH

1 (9) ensure, to a reasonable degree of certainty, 

2 that Internet poker games are fair and honest, and 

3 to prevent, to a reasonable degree of certainty, 

4 cheating, including collusion, and use of cheating de5 vices, including use of software programs (sometimes 

6 referred to as ‘‘bots’’) that make bets or wagers ac7 cording to algorithms; and 

8 (10) such other mechanisms and safeguards as 

9 the qualified State agency may establish. 

10 (e) FEES FOR ADMINISTRATIVE EXPENSES.— 

11 (1) USER FEES.— 

12 (A) IN GENERAL.—The cost of admin13 istering this title with respect to each applicant, 

14 licensee, and significant vendor, including the 

15 cost of any review or examination of a licensee 

16 or its significant vendors to ensure compliance 

17 with the terms of the license and this title, shall 

18 be assessed by the qualified State agency receiv19 ing an application or issuing a license against 

20 the applicant, licensee, or significant vendor, as 

21 the case may be, by written notice in an 

22 amount that the qualified State agency deter23 mines is necessary to— 


srobinson on DSK4SPTVN1PROD with BILLS
42 

•HR 2366 IH

1 (i) meet the qualified State agency’s 

2 expenses in carrying out such administra3 tion, review, or examination; and 

4 (ii) to cover the qualified State agen5 cy’s share of the amount determined by the 

6 Secretary under paragraph (3) to cover the 

7 expenses incurred by the Secretary in car8 rying out the provisions of this title. 

9 (B) EXPENSES FOR REVIEW OR EXAMINA10 TION.—Expenses that are attributable to review 

11 or examination of a particular applicant, li12 censee, or significant vendor shall be assessed 

13 under subparagraph (A) against that applicant, 

14 licensee, or significant vendor. 

15 (C) EXPENSES FOR GENERAL ADMINISTRA16 TION.—Expenses for general administration 

17 shall be assessed against all licensees equally. 

18 (D) DISPOSITION OF USER FEES.— 

19 Amounts assessed by a qualified State agency 

20 as user fees under this paragraph shall— 

21 (i) be remitted to the Secretary, in the 

22 amount of that State’s share as deter23 mined under paragraph (3) for deposit in 

24 the Treasury in accordance with subpara25 graph (B) of such paragraph; and 


srobinson on DSK4SPTVN1PROD with BILLS
43 

•HR 2366 IH

1 (ii)(I) be available to the qualified 

2 State agency to cover expenses incurred by 

3 the qualified State agency in carrying out 

4 the provisions of this title; and 

5 (II) not be construed to be Govern6 ment funds or appropriated monies, or 

7 subject to apportionment for the purposes 

8 of any other provision of law. 

9 (F) COLLECTION.— 

10 (i) REFERRAL.—If a licensee or sig11 nificant vendor fails to pay a user fee to a 

12 qualified State agency under this para13 graph after the assessment of the fee has 

14 become final— 

15 (I) the qualified State agency 

16 may recover the amount assessed by 

17 action in a court of the State or In18 dian tribe of the qualified State agen19 cy or in the appropriate United States 

20 district court, along with any costs of 

21 collection and attorney fees; and 

22 (II) such failure may be grounds 

23 for denial of an application for a li24 cense under this title or revocation of 


srobinson on DSK4SPTVN1PROD with BILLS
44 

•HR 2366 IH

1 a license or certificate of suitability 

2 under this title. 

3 (ii) ASSESSMENT REVIEWABLE.—In 

4 any civil action under clause (i), a court 

5 may review the validity and adjust the 

6 amount of the user fees. 

7 (G) USER FEES OF SIGNIFICANT VENDORS

8 MAY BE PAID BY APPLICANTS AND LICENS9 EES.—A user fee assessed against a significant 

10 vendor may be paid by an applicant or licensee 

11 on behalf of the significant vendor. 

12 (2) DIRECT AND EXCLUSIVE OBLIGATION OF

13 LICENSEE.—With respect to a licensee, a user fee 

14 shall be the direct and exclusive obligation of the li15 censee and may not be deducted from amounts avail16 able as deposits to any person placing a bet or wager 

17 with the licensee. 

18 (3) USER FEES ESTABLISHED BY SEC19 RETARY.— 

20 (A) IN GENERAL.—The Secretary shall de21 termine the funding requirements necessary to 

22 meet the Secretary’s cost of administering this 

23 title and notify each qualified State agency of 

24 its proportional share to be collected by such 

25 agency under paragraph (1)(A). 


srobinson on DSK4SPTVN1PROD with BILLS
45 

•HR 2366 IH

1 (B) DISPOSITION OF USER FEES.— 

2 Amounts remitted to the Secretary under para3 graph (1)(D)(i) shall— 

4 (i) be deposited into a separate ac5 count in the Treasury to be known as the 

6 ‘‘Internet Poker Oversight Fund’’; and 

7 (ii) be available to the Secretary in 

8 such amounts, subject to appropriations, to 

9 cover expenses incurred by the Secretary in 

10 carrying out the provisions of this title. 

11 (f) APPROVAL OF LICENSE.— 

12 (1) IN GENERAL.—A qualified State agency 

13 may issue licenses under this title for the operation 

14 of an Internet poker facility to any applicant that— 

15 (A) owns or controls a company that oper16 ates a casino gaming facility, qualified race 

17 track, or qualified card room and owned or con18 trolled such facility, race track, or card room on 

19 the date that is 10 days before the date of the 

20 enactment of this Act; 

21 (B) for the duration of the 5-year period 

22 ending on the date on which the applicant sub23 mits an application under subsection (b)(1), 

24 owned or controlled a casino gaming facility, 

25 qualified race track, or qualified card room; 


srobinson on DSK4SPTVN1PROD with BILLS
46 

•HR 2366 IH

1 (C) is owned or controlled by a person 

2 who— 

3 (i) owns or controls a company that 

4 operates a casino gaming facility, qualified 

5 race track, or qualified card room and 

6 owned or controlled such facility, race 

7 track, or card room on the date that is 10 

8 days before the date of the enactment of 

9 this Act; or 

10 (ii) for the duration of the 5-year pe11 riod ending on the date on which the appli12 cant submits an application under sub13 section (b)(1), owned or controlled a casino 

14 gaming facility, qualified race track, or 

15 qualified card room; 

16 (D) for the duration of the 5-year period 

17 ending on the date on which the applicant sub18 mits an application under subsection (b)(1), 

19 under license issued by a State or Indian tribe 

20 manufactured and supplied to casino gaming 

21 facilities with— 

22 (i) not fewer than 500 slot machines; 

23 or 

24 (ii) qualified mobile gaming systems; 

25 and 


srobinson on DSK4SPTVN1PROD with BILLS
47 

•HR 2366 IH

1 (E) meets other criteria established by the 

2 Secretary or by the qualified State agency 

3 under this title. 

4 (3) EXPANSION OF LICENSEES ONLY IF NO

5 RISK TO PUBLIC.—Beginning on the date that is 2 

6 years after the date of first issuance specified in sec7 tion 115(b), the Secretary may, by rule, authorize 

8 the issuance of licenses to applicants other than 

9 those described in paragraph (2) if the Secretary de10 termines, after providing the public with notice and 

11 an opportunity to comment, that such authorization 

12 will not significantly increase the risk that the 

13 standards described in subsection (d) will not be sat14 isfied by licensees. 

15 (4) AUTHORITY OF SECRETARY TO REVOKE LI16 CENSES.—Notwithstanding any certificate of suit17 ability or license issued by a qualified State agency, 

18 the Secretary may suspend or revoke such certificate 

19 or license if the Secretary has reason to believe that 

20 the recipient does not meet the suitability require21 ments established under subsection (c) or, as appli22 cable, any other requirement imposed on a licensee 

23 under this title. The Secretary may not overturn a 

24 decision by a qualified State agency to deny or to 


srobinson on DSK4SPTVN1PROD with BILLS
48 

•HR 2366 IH

1 terminate a license or to deny or revoke a certificate 

2 of suitability. 

3 (5) CONFLICTS BETWEEN QUALIFIED STATE

4 AGENCIES.—If a qualified State agency denies a li5 cense, terminates a license, denies a certificate of 

6 suitability, or revokes a certificate of suitability to a 

7 person and within 12 months of such denial, termi8 nation, or revocation another qualified State agency 

9 grants such person a license or certificate of suit10 ability, the Secretary shall— 

11 (A) commence a review of such license or 

12 certificate of suitability; and 

13 (B) not later than 90 days after such com14 mencement, determine whether to act under 

15 paragraph (4). 

16 (6) CONTROL DEFINED.—In this subsection, 

17 the term ‘‘control’’ means, with respect to a person, 

18 the possession, directly or indirectly, of the power to 

19 direct or influence the direction of the management 

20 or policies of the person, whether through the owner21 ship of voting securities, through a management, ex22 ecutive officer, or board position, by shareholders or 

23 similar agreement, or otherwise. 

24 (g) LOCATION OF REMOTE GAMING EQUIPMENT.— 

25 A licensee shall maintain its remote gaming equipment 


srobinson on DSK4SPTVN1PROD with BILLS
49 

•HR 2366 IH

1 within the territory of the United States throughout the 

2 term of its license. A qualified State agency may require 

3 applicants that seek a license from such qualified State 

4 agency to locate that equipment within the territory of the 

5 State or Indian tribe of the qualified State agency if the 

6 qualified State agency determines that such requirement 

7 will advance the regulatory interests of this title. 

8 (h) LICENSE IS A PRIVILEGE NOT A RIGHT.—A deci9 sion by a qualified State agency not to grant a person 

10 a license or certificate of suitability, or to terminate a li11 cense, or revoke a certificate of suitability, is not review12 able under Federal law or the law of any jurisdiction other 

13 than the jurisdiction of the qualified State agency. The 

14 State or Indian tribe of the jurisdiction of the qualified 

15 State agency may, but need not, provide an opportunity 

16 to appeal. 

17 (i) TERM, RENEWAL, AND TRANSFER OF LICENSE.— 

18 (1) TERM.—Any license issued under this title 

19 shall be issued for a 5-year term beginning on the 

20 date of issuance. A license may be renewed in ac21 cordance with requirements prescribed by the quali22 fied State agency that issued the license under this 

23 title. 

24 (2) TRANSFER.—A transfer of a license, change 

25 of control of a licensee, or change in significant venVerDate Mar 15 2010 22:01 Jun 28, 2011 Jkt 099200 PO 00000 Frm 00049 Fmt 6652 Sfmt 6201 E:\BILLS\H2366.IH H2366

srobinson on DSK4SPTVN1PROD with BILLS
50 

•HR 2366 IH

1 dor shall require prior approval by the qualified 

2 State agency that issued the license. The qualified 

3 State agency shall at a minimum ensure the suit4 ability requirements of subsection (c) continue to be 

5 satisfied before approving any such transfer or 

6 change. 

7 (j) ADMINISTRATIVE PROVISIONS.— 

8 (1) DETERMINATION OF INTERNET POKER.— 

9 (A) INITIAL DETERMINATION BY QUALI10 FIED STATE AGENCY.—A determination of 

11 whether a game, hand, tournament, or other 

12 contest of a licensee is Internet poker shall be 

13 made in the first instance by the qualified State 

14 agency that issued the license to such licensee 

15 under this title. 

16 (B) CHALLENGES.— 

17 (i) CHALLENGE MADE WITH SEC18 RETARY.—A licensee or qualified State 

19 agency may file a challenge with the Sec20 retary regarding any determination of the 

21 State agency under subparagraph (A) that 

22 a game, hand, tournament, or other con23 test of another licensee is Internet poker. 

24 (ii) DETERMINATION MADE BY SEC25 RETARY WITHIN 30 DAYS.—If a challenge 


srobinson on DSK4SPTVN1PROD with BILLS
51 

•HR 2366 IH

1 is made under clause (i), the Secretary 

2 shall make a determination of whether the 

3 game, hand, tournament, or other contest 

4 is Internet poker not later than 30 days 

5 after the date on which the challenge is 

6 made. 

7 (iii) OPERATION UNTIL DETERMINA8 TION.—A licensee that offers a game, 

9 hand, tournament, or other contest that is 

10 challenged under clause (i) may continue 

11 to offer such game, hand, tournament, or 

12 other contest until the Secretary makes a 

13 determination under clause (iii). 

14 (C) APPEALS.—Not later than 30 days 

15 after the date on which the Secretary makes a 

16 determination under subparagraph (B)(iii), a li17 censee or a qualified State agency may appeal 

18 such determination to the United States Dis19 trict Court for the District of Columbia. Such 

20 court shall set aside the Secretary’s determina21 tion if the court determines that the Secretary’s 

22 determination was— 

23 (i) arbitrary, capricious, an abuse of 

24 discretion, or otherwise not consistent with 

25 law; or 


srobinson on DSK4SPTVN1PROD with BILLS
52 

•HR 2366 IH

1 (ii) without observance of procedure 

2 required by law. 

3 (2) CHALLENGES UNDER STATE LAW.—Except 

4 as provided in paragraph (1) and unless otherwise 

5 specifically provided in this title, actions taken by a 

6 qualified State agency may be challenged by appli7 cants and licensees only as permitted under the law 

8 of the State or Indian tribe in which the qualified 

9 State agency is located. 

10 (3) SUMMONS.— 

11 (A) IN GENERAL.—The Secretary may 

12 issue a summons with respect to an applicant 

13 or licensee necessary to carry out the provisions 

14 of this title. 

15 (B) PRODUCTION AT DESIGNATED SITE.— 

16 A summons issued by the Secretary pursuant to 

17 this paragraph may require that books, papers, 

18 records, or other data stored or maintained at 

19 any place be produced at any— 

20 (i) business location of a licensee or 

21 applicant for a license; 

22 (ii) designated location in the State or 

23 Indian lands of the applicable qualified 

24 State agency; or 


srobinson on DSK4SPTVN1PROD with BILLS
53 

•HR 2366 IH

1 (iii) designated location in the District 

2 of Columbia. 

3 (C) NO LIABILITY FOR EXPENSES.—The 

4 Secretary shall not be liable for any expense in5 curred in connection with the production of 

6 books, papers, records, or other data under this 

7 paragraph. 

8 (D) SERVICE OF SUMMONS.—Service of a 

9 summons issued under this subsection may be 

10 by registered mail or in such other manner cal11 culated to give actual notice as determined by 

12 the Secretary. 

13 (E) AUTHORIZATION TO INVOKE AID OF

14 COURTS.—The Secretary may invoke the aid of 

15 any court of the United States to compel com16 pliance with the summons within the jurisdic17 tion of which— 

18 (i) the investigation which gave rise to 

19 the summons or the examination is being 

20 or has been carried on; 

21 (ii) the person summoned is an inhab22 itant; or 

23 (iii) the person summoned carries on 

24 business or may be found. 


srobinson on DSK4SPTVN1PROD with BILLS
54 

•HR 2366 IH

1 (F) POWER OF COURTS TO COMPEL AP2 PEARANCE.—The court may issue an order re3 quiring the person summoned to appear before 

4 the Secretary— 

5 (i) to produce books, papers, records, 

6 and other data; 

7 (ii) to give testimony as may be nec8 essary to explain how such material was 

9 compiled and maintained; 

10 (iii) to allow the Secretary to examine 

11 the business of a licensee; and 

12 (iv) to pay the costs of the proceeding. 

13 (G) CONTUMACY OR REFUSAL.—Any fail14 ure to obey the order of the court under this 

15 paragraph may be punished by the court as a 

16 contempt thereof. All process in any case under 

17 this subsection may be served in any judicial 

18 district in which such person may be found. 

19 SEC. 105. ENFORCEMENT. 

20 (a) DISCIPLINARY ACTION.— 

21 (1) IN GENERAL.—A licensee may be subject to 

22 disciplinary action, including suspension or revoca23 tion of its license, by a qualified State agency that 

24 issued a license to the licensee or by the Secretary 

25 if the licensee fails to comply with any provision of 


srobinson on DSK4SPTVN1PROD with BILLS
55 

•HR 2366 IH

1 this title, any regulation prescribed thereunder, or 

2 any other applicable provision of State or tribal law. 

3 (2) INITIATING AGENCY.—Only the Secretary 

4 or the qualified State agency which granted the li5 cense may initiate disciplinary action under this 

6 title. 

7 (3) SAVINGS PROVISION.—Nothing in this sub8 section shall be construed to prohibit a law enforce9 ment authority or regulatory body that has authority 

10 over a licensee or an affiliated person, independent 

11 from this title, from taking action under the law of 

12 that law enforcement authority or regulatory body. 

13 (4) DISCIPLINARY PROCEDURES.— 

14 (A) IN GENERAL.—A qualified State agen15 cy shall commence disciplinary action under this 

16 subsection against a licensee upon service of a 

17 formal written complaint upon the licensee, 

18 with a copy forwarded to the Secretary, that 

19 sets forth the grounds for the disciplinary ac20 tion and the proposed penalty that is being 

21 sought, which may include any or all of the im22 position of a fine as provided pursuant to sub23 section (m)(1) or limitation, condition, suspen24 sion or revocation of the license. 


srobinson on DSK4SPTVN1PROD with BILLS
56 

•HR 2366 IH

1 (B) IN ACCORDANCE WITH LAW OF JURIS2 DICTION OF QUALIFIED STATE AGENCY.—The 

3 disciplinary process shall proceed according to 

4 the law of the jurisdiction of the applicable 

5 qualified State agency. 

6 (5) FINALITY OF ACTION AND APPEALS.— 

7 (A) FINALITY.—Any disciplinary action 

8 shall be treated as a final action. 

9 (B) ACTION BY QUALIFIED STATE AGEN10 CIES.—A licensee aggrieved by disciplinary ac11 tion by a qualified State agency may file an ap12 peal in the jurisdiction where the qualified 

13 State agency taking such action is located only 

14 to the extent permitted by the law of such juris15 diction. 

16 (C) ACTION BY SECRETARY.—A licensee 

17 aggrieved by disciplinary action by the Sec18 retary may file an appeal in the United States 

19 District Court for the District of Columbia. 

20 Such court shall set aside the action if it deter21 mines that the action was— 

22 (i) arbitrary, capricious, an abuse of 

23 discretion, or otherwise not consistent with 

24 law; or 


srobinson on DSK4SPTVN1PROD with BILLS
57 

•HR 2366 IH

1 (ii) without observance of procedure 

2 required by law. 

3 (6) PENDING APPEAL.—During the period in 

4 which a suspension or revocation of an existing li5 cense is being challenged through a pending judicial 

6 proceeding, the court handling the challenge may 

7 allow the licensee to continue offering bets and wa8 gers in full compliance with the terms of its existing 

9 license and any other conditions the court considers 

10 necessary, if the court determines that— 

11 (A) the appellant has a reasonable likeli12 hood of success on the merits; and 

13 (B) allowing the appellant to continue of14 fering bets and wagers while the appeal is pend15 ing will not threaten the public interest. 

16 (7) RETURN OF CUSTOMER FUNDS.—If a li17 censee’s license is revoked and no appeal pursuant 

18 to paragraph (5) is pending, the licensee shall— 

19 (A) return all customer funds in an orderly 

20 manner not later than 30 days after the date 

21 of the revocation of the license; or 

22 (B) place in escrow those sums return of 

23 which to United States customers is not feasible 

24 due to change in customer address, bank de25 tails, or similar difficulty, in an account with a 


srobinson on DSK4SPTVN1PROD with BILLS
58 

•HR 2366 IH

1 financial institution in the United States for 

2 safekeeping and orderly disposition by the Sec3 retary. 

4 (8) REFERRAL TO ATTORNEY GENERAL.—If, in 

5 the course of carrying out the provisions of this title, 

6 the Secretary or a qualified State agency finds a 

7 substantial basis to believe that a person has vio8 lated section 103, the Secretary or qualified State 

9 agency shall refer such matter to the Attorney Gen10 eral. 

11 (b) CIVIL MONEY PENALTIES.— 

12 (1) IN GENERAL.— 

13 (A) PENALTIES ASSESSED BY QUALIFIED

14 STATE AGENCIES.—A qualified State agency 

15 may assess upon any licensee or other person 

16 subject to the requirements of this title for each 

17 violation of this title or any regulation pre18 scribed or order issued under this title, a civil 

19 penalty of not more than the greater of— 

20 (i) the amount involved in the viola21 tion, if any; 

22 (ii) $250,000 for an individual and 

23 $750,000 for a corporation; or 


srobinson on DSK4SPTVN1PROD with BILLS
59 

•HR 2366 IH

1 (iii) such other amount as provided 

2 under the applicable State or tribal law of 

3 the qualified State agency. 

4 (B) PENALTIES ASSESSED BY SEC5 RETARY.—The Secretary may assess upon any 

6 licensee or other person subject to the require7 ments of this title for each violation of this title 

8 or any regulation prescribed or order issued 

9 under this title, a civil penalty of not more than 

10 the greater of— 

11 (i) the amount involved in the viola12 tion, if any; or 

13 (ii) $250,000 for an individual and 

14 $750,000 for a corporation. 

15 (C) NOT CUMULATIVE.— 

16 (i) IN GENERAL.—The penalties au17 thorized under subparagraphs (A) and (B) 

18 shall not be cumulative and only one such 

19 penalty may be assessed per violation. 

20 (ii) CONSTRUCTION.—Clause (i) shall 

21 not be construed to limit the authority of 

22 a qualifying body or the Secretary, as the 

23 case may be, to pursue a civil penalty for 

24 each violation of a related series of viola25 tions. 


srobinson on DSK4SPTVN1PROD with BILLS
60 

•HR 2366 IH

1 (D) FAILURE TO OBTAIN A LICENSE.— 

2 Notwithstanding any other provision of law, the 

3 Secretary may assess upon a person that is re4 quired to obtain a license under this title, but 

5 fails to obtain a license under this title, a civil 

6 penalty of not more than the greater of— 

7 (i) the amount of bets or wagers 

8 taken by the person from players in the 

9 United States during the period that a li10 cense was needed but not held by the per11 son; or 

12 (ii) $1,000,000 per day that the per13 son accepts bets or wagers from players in 

14 the United States during the period that a 

15 license was needed but not held by the per16 son. 

17 (E) CONSTRUCTION.—Nothing in this 

18 paragraph shall be construed to affect the abil19 ity of a law enforcement official to seek crimi20 nal penalties against a person. 

21 (2) ASSESSMENT.— 

22 (A) ENFORCEMENT BY QUALIFIED STATE

23 AGENCIES.—Qualified State agencies and such 

24 other entities as are authorized by applicable 

25 State law shall enforce the provisions of this 


srobinson on DSK4SPTVN1PROD with BILLS
61 

•HR 2366 IH

1 title under the law of the applicable State or In2 dian tribe, and penalties shall be determined, 

3 reviewable, collectable, and disposed of as pro4 vided under such law. 

5 (B) ENFORCEMENT BY SECRETARY.— 

6 (i) WRITTEN NOTICE.—Any penalty 

7 imposed under paragraph (1)(B) shall be 

8 assessed and collected by the Secretary by 

9 written notice. 

10 (ii) FINALITY OF ASSESSMENT.—If, 

11 with respect to any assessment under para12 graph (1)(B), a hearing is not requested 

13 pursuant to clause (v) within the period of 

14 time allowed under such clause, the assess15 ment shall constitute a final agency order. 

16 (iii) AUTHORITY TO MODIFY OR

17 REMIT PENALTY.—The Secretary may 

18 compromise, modify, or remit any penalty 

19 which the Secretary may assess or has al20 ready assessed under paragraph (1)(B). 

21 (iv) MITIGATING FACTORS.—In deter22 mining the amount of any penalty imposed 

23 under paragraph (1)(B), the Secretary 

24 shall take into account the appropriateness 


srobinson on DSK4SPTVN1PROD with BILLS
62 

•HR 2366 IH

1 of the penalty with respect to the fol2 lowing: 

3 (I) The size of the financial re4 sources and the good faith of the per5 son against whom the penalty is as6 sessed. 

7 (II) The gravity of the violation. 

8 (III) The history of previous vio9 lations. 

10 (IV) Such other matters as jus11 tice may require. 

12 (v) HEARING.—The person against 

13 whom any penalty is assessed under para14 graph (1)(B) shall be afforded an agency 

15 hearing if such person submits a request 

16 for such hearing not later than 20 days 

17 after the date of the issuance of the notice 

18 of assessment. 

19 (vi) COLLECTION.— 

20 (I) REFERRAL.—If any person 

21 fails to pay an assessment after any 

22 penalty assessed under this subpara23 graph has become final, the Secretary 

24 shall recover the amount assessed by 


srobinson on DSK4SPTVN1PROD with BILLS
63 

•HR 2366 IH

1 action in the appropriate United 

2 States district court. 

3 (II) SCOPE OF REVIEW.—In any 

4 civil action under subclause (I), the 

5 validity and appropriateness of the 

6 penalty shall be subject to review for 

7 abuse of agency discretion. 

8 (vii) DISBURSEMENT.—All penalties 

9 collected under authority of paragraph 

10 (1)(B) shall be deposited into the Treasury 

11 of the United States. 

12 (3) CONDITION FOR LICENSURE.—Payment by 

13 a licensee of any civil penalty assessed under this 

14 subsection that has become final shall be a require15 ment for the retention of its license. 

16 SEC. 106. COMPULSIVE GAMING, RESPONSIBLE GAMING, 

17 AND SELF-EXCLUSION PROGRAM REQUIRE18 MENTS. 

19 (a) REGULATIONS REQUIRED.—Each qualified State 

20 agency shall, before issuing any licenses under this title, 

21 establish requirements for the development of a Compul22 sive Gaming, Responsible Gaming, and Self-Exclusion 

23 Program that each licensee of that qualified State agency 

24 shall implement as a condition of licensure. Such require25 ments shall also provide for the establishment of a proVerDate Mar 15 2010 22:01 Jun 28, 2011 Jkt 099200 PO 00000 Frm 00063 Fmt 6652 Sfmt 6201 E:\BILLS\H2366.IH H2366

srobinson on DSK4SPTVN1PROD with BILLS
64 

•HR 2366 IH

1 gram to alert the public to the existence, consequences, 

2 and availability of the self-exclusion list established under 

3 subsection (c). 

4 (b) MINIMUM REQUIREMENTS.—At a minimum, each 

5 qualified State agency shall require that licensees— 

6 (1) provide informational materials written in 

7 plain language about responsible gaming, including 

8 information about the self-exclusion list established 

9 under subsection (c) and how a player may request 

10 placement on the list, each time a player signs in to 

11 make a bet or wager, which materials shall be pro12 vided via a prominently displayed hyperlink or com13 parable mechanism; 

14 (2) provide informational materials about re15 sponsible gaming to any player that requests such 

16 materials; 

17 (3) make continuously available individualized 

18 responsible gaming options that any customer may 

19 choose, including allowing customers to self-limit 

20 their access to the issuance of credit, check cashing, 

21 or direct mail marketing by the licensee, in each 

22 case as and to the extent that the qualified State 

23 agency may consider appropriate; 

24 (4) ensure to a reasonable degree of certainty 

25 that persons on the list of self-excluded persons esVerDate Mar 15 2010 22:01 Jun 28, 2011 Jkt 099200 PO 00000 Frm 00064 Fmt 6652 Sfmt 6201 E:\BILLS\H2366.IH H2366

srobinson on DSK4SPTVN1PROD with BILLS
65 

•HR 2366 IH

1 tablished pursuant to subsection (c) are prevented 

2 from initiating any bets or wagers within the scope 

3 of this title; and 

4 (5) ensure that the information required under 

5 this subsection is clearly and prominently made 

6 available by the licensee in each language in which 

7 services of the Internet poker facility of the licensee 

8 are offered. 

9 (c) LIST OF PERSONS SELF-EXCLUDED.— 

10 (1) ESTABLISHMENT.— 

11 (A) LISTS MAINTAINED BY QUALIFIED

12 STATE AGENCIES.—Each qualified State agency 

13 shall establish and maintain a list of persons 

14 self-excluded from playing Internet poker 

15 through Internet poker facilities licensed by the 

16 qualified State agency. Each week, each quali17 fied State agency shall submit to the Secretary 

18 a current copy of the list. 

19 (B) MASTER LIST MAINTAINED BY SEC20 RETARY.—The Secretary shall establish and 

21 maintain a master list of all persons self-ex22 cluded from playing Internet poker through 

23 Internet poker facilities licensed under this title. 

24 Such list shall consist of all persons submitted 

25 under subparagraph (A). The Secretary shall 


srobinson on DSK4SPTVN1PROD with BILLS
66 

•HR 2366 IH

1 make the master list available to all qualified 

2 State agencies and licensees. 

3 (C) PLACEMENT REQUEST.—Any person 

4 may request placement on the list of self-ex5 cluded persons by— 

6 (i) acknowledging in a manner to be 

7 established by each qualified State agency 

8 with respect to its licensees that the person 

9 wishes to be denied gaming privileges with10 in the scope of this title; and 

11 (ii) agreeing that, during any period 

12 of voluntary exclusion, the person may not 

13 collect any winnings or recover any losses 

14 resulting from any gaming activity at any 

15 Internet gambling facility of a licensee. 

16 (2) LIMITATION ON LIABILITY.— 

17 (A) IN GENERAL.—Except as provided in 

18 subparagraph (B), the United States, the Sec19 retary, a qualified State agency, the State or 

20 Indian tribe in which that qualified State agen21 cy is located, an enforcement agent, licensee, or 

22 any employee or agent thereof, shall not be lia23 ble to any self-excluded person or to any other 

24 party in any judicial or administrative proVerDate Mar 15 2010 22:01 Jun 28, 2011 Jkt 099200 PO 00000 Frm 00066 Fmt 6652 Sfmt 6201 E:\BILLS\H2366.IH H2366

srobinson on DSK4SPTVN1PROD with BILLS
67 

•HR 2366 IH

1 ceeding for any harm, monetary or otherwise, 

2 which may arise as a result of— 

3 (i) any failure to withhold gaming 

4 privileges from, or to restore gaming privi5 leges to, a self-excluded person; 

6 (ii) otherwise permitting a self-ex7 cluded person to engage in gaming activity 

8 while on the list of self-excluded persons; 

9 or 

10 (iii) disclosure of information about 

11 individuals placed on the list of self-ex12 cluded persons. 

13 (B) LICENSEES.—A licensee or employee 

14 or agent thereof may be liable to a self-excluded 

15 person in a judicial or administrative pro16 ceeding for a harm described in subparagraph 

17 (A) to the extent provided under the law of the 

18 State or Indian tribe of the qualified State 

19 agency that issued the license. 

20 (C) RULE OF CONSTRUCTION.—Nothing in 

21 this paragraph shall be construed to prevent the 

22 Secretary or a qualified State agency from as23 sessing a regulatory sanction against a licensee 

24 or person for failing to comply with a provision 

25 of this section or a regulation prescribed thereVerDate Mar 15 2010 22:01 Jun 28, 2011 Jkt 099200 PO 00000 Frm 00067 Fmt 6652 Sfmt 6201 E:\BILLS\H2366.IH H2366

srobinson on DSK4SPTVN1PROD with BILLS
68 

•HR 2366 IH

1 under or for misuse of any list of self-excluded 

2 persons for purposes not authorized under this 

3 section. 

4 (3) DISCLOSURE PROVISIONS.— 

5 (A) IN GENERAL.—Notwithstanding any 

6 other provision of Federal, State, or tribal law, 

7 the list of self-excluded persons shall not be 

8 open to public inspection. 

9 (B) AFFILIATE DISCLOSURE.—If necessary 

10 to effectuate the self-exclusion purposes of this 

11 subsection, any licensee may disclose the identi12 ties of persons on the self-excluded list to any 

13 significant vendor, service provider, or affiliated 

14 company to the extent that the significant ven15 dor, service provider, or affiliated company 

16 maintains such information under confiden17 tiality provisions comparable to those in this 

18 subsection. 

19 (d) GAMING BY PROHIBITED PERSONS.— 

20 (1) PROHIBITION ON BENEFITTING FROM PRO21 HIBITED GAMING ACTIVITY.—A person who is pro22 hibited from gaming with a licensee by law, or by 

23 order of the Secretary, a qualified State agency, or 

24 any court of competent jurisdiction, including any 

25 person on the self-exclusion list under subsection (c), 


srobinson on DSK4SPTVN1PROD with BILLS
69 

•HR 2366 IH

1 shall not collect, in any manner or proceeding, any 

2 winnings or recover any losses arising as a result of 

3 any prohibited gaming activity. 

4 (2) FORFEITURE.—In addition to any other 

5 penalty provided by law, any money or thing of value 

6 that has been obtained by, or is owed to, any prohib7 ited person by a licensee as a result of bets or wa8 gers made by a prohibited person after the applica9 ble prohibition has become effective shall be subject 

10 to forfeiture by order of the Secretary or a qualified 

11 State agency, following notice to the prohibited per12 son and opportunity to be heard. 

13 (3) DEPOSIT OF FORFEITED FUNDS.—Any 

14 funds forfeited pursuant to this subsection shall be 

15 deposited into the Treasury of the United States, or, 

16 in the case of a forfeiture to a qualified State agen17 cy, as provided by the applicable State or tribal law. 

18 (e) REQUIREMENTS WITH RESPECT TO CHILD SUP19 PORT DELINQUENTS.— 

20 (1) IN GENERAL.—When it is made known to 

21 the Secretary or a qualified State agency by a Fed22 eral or State court or a competent State agency in23 volved with the administration or enforcement of a 

24 court-ordered child support payment that a par25 ticular individual is delinquent with respect to courtVerDate Mar 15 2010 22:01 Jun 28, 2011 Jkt 099200 PO 00000 Frm 00069 Fmt 6652 Sfmt 6201 E:\BILLS\H2366.IH H2366

srobinson on DSK4SPTVN1PROD with BILLS
70 

•HR 2366 IH

1 ordered child support payments, the Secretary shall 

2 include that individual on the list established under 

3 subsection (c). 

4 (2) REMOVAL FROM LIST.—Individuals placed 

5 on the list pursuant to paragraph (1) shall be re6 moved from such list if the court or agency that 

7 made such individual’s delinquency known to the 

8 Secretary notifies the Secretary that such individual 

9 is no longer delinquent. 

10 (f) ADMINISTRATIVE PROVISIONS.— 

11 (1) RULE OF CONSTRUCTION.—No provision of 

12 this section shall be construed as creating a legal 

13 duty in the Secretary, a qualified State agency, a li14 censee, or any employee or agent thereof to identify 

15 or to exclude compulsive players not on the list of 

16 self-excluded persons. 

17 (2) NO CAUSE OF ACTION.—The Secretary, a 

18 qualified State agency, a licensee, and any employee 

19 or agent thereof, shall not be liable to any person in 

20 any proceeding for losses or other damages of any 

21 kind arising out of that person’s gaming activities 

22 based on a claim that the person was a compulsive, 

23 problem, or pathological player. 


srobinson on DSK4SPTVN1PROD with BILLS
71 

•HR 2366 IH

1 SEC. 107. PROHIBITIONS AND RESTRICTIONS. 

2 (a) PROHIBITION ON BETS OR WAGERS ON SPORT3 ING EVENTS AND GAMES OTHER THAN INTERNET

4 POKER.— 

5 (1) IN GENERAL.—No provision of this title 

6 shall be construed to authorize any licensee to accept 

7 a bet or wager on— 

8 (A) any game, event, or activity that is not 

9 Internet poker; or 

10 (B) any sporting event in violation of any 

11 applicable provision of Federal or State law. 

12 (2) CONSTRUCTION.—Nothing in this title shall 

13 be construed to repeal or to amend any provision of 

14 Federal or State law prohibiting, restricting, or oth15 erwise addressing bets or wagers on sporting events, 

16 including provisions of Federal and State law that 

17 permit participation in any fantasy or simulation 

18 sports games. 

19 (b) PROHIBITION ON THE USE OF CREDIT CARDS

20 FOR INTERNET GAMBLING.— 

21 (1) IN GENERAL.—No licensee, no person oper22 ating on behalf of a licensee, and no person accept23 ing payment for or settlement of a bet or wager who 

24 intends to transmit such payment to a person li25 censee, may accept a bet or wager or payment for 

26 or settlement of a bet or wager that is transmitted 


srobinson on DSK4SPTVN1PROD with BILLS
72 

•HR 2366 IH

1 or otherwise facilitated with a credit card (as defined 

2 in section 5362(11) of title 31, United States Code). 

3 (2) EXCEPTION.— 

4 (A) CLARIFICATION AND SCOPE.—For any 

5 person licensed to take bets or wagers in ac6 cordance with the Interstate Horseracing Act of 

7 1978, the prohibition in paragraph (1) shall 

8 only apply to those activities conducted pursu9 ant to a license under this title. 

10 (B) INTRASTATE ACTIVITIES.—For any 

11 person involved in legal, land-based or State- or 

12 tribal-regulated intrastate gambling, the prohi13 bition in paragraph (1) shall only apply to those 

14 activities conducted pursuant to a license under 

15 this title. 

16 (c) PUBLIC INTERNET POKER PARLORS PROHIB17 ITED.— 

18 (1) IN GENERAL.—It shall be considered a vio19 lation of this title to operate a place of public accom20 modation, club (including a club or association lim21 ited to dues-paying members or similar restricted 

22 groups), or similar establishment in which computer 

23 terminals or similar access devices are made avail24 able to be used principally for the purpose of access25 ing Internet gambling facilities. 


srobinson on DSK4SPTVN1PROD with BILLS
73 

•HR 2366 IH

1 (2) CRIMINAL PENALTIES.—Any person who 

2 violates subsection (a) shall be fined under title 18, 

3 United States Code, imprisoned for not more than 

4 5 years, or both. 

5 (3) CONSTRUCTION.—Nothing in this title shall 

6 be construed to authorize or otherwise to permit the 

7 operation of places of public accommodation, clubs 

8 (including clubs or associations limited to dues-pay9 ing members or similar restricted groups) and simi10 lar establishments that permit access to Internet 

11 gambling facilities. 

12 (4) RELATION TO STATE, LOCAL, AND TRIBAL

13 LAW.—Places of public accommodation, clubs, or 

14 similar establishments described in subsection (c) 

15 shall be subject to all otherwise applicable State, 

16 local, and tribal police, criminal, zoning, and other 

17 regulatory powers which are not intended to be lim18 ited in any way by this title. 

19 SEC. 108. SAFE HARBOR. 

20 It shall be an affirmative defense to any prosecution 

21 or enforcement action under any provision of Federal, 

22 State, or tribal law that the activity forming the basis of 

23 such prosecution or enforcement action is authorized 

24 under and has been carried out lawfully in accordance with 

25 and under the terms of— 


srobinson on DSK4SPTVN1PROD with BILLS
74 

•HR 2366 IH

1 (1) this title; or 

2 (2) the Interstate Horseracing Act of 1978 (15 

3 U.S.C. 3001 et seq.). 

4 SEC. 109. RELATION TO SUBCHAPTER IV OF CHAPTER 53 OF 

5 TITLE 31, UNITED STATES CODE. 

6 Subchapter IV of chapter 53 of title 31, United 

7 States Code, shall not apply to any bet or wager— 

8 (1) occurring pursuant to a license issued under 

9 this title, subject to section 109; or 

10 (2) that is permissible under the Interstate 

11 Horseracing Act of 1978 (15 U.S.C. 3001 et seq.). 

12 SEC. 110. CHEATING AND OTHER FRAUD. 

13 (a) CHEATING AND CHEATING DEVICES PROHIB14 ITED.— 

15 (1) CHEATING PROHIBITED.—No person initi16 ating, receiving, or otherwise making a bet or wager 

17 with a licensee, or sending, receiving, or inviting in18 formation assisting with a bet or wager with a li19 censee shall knowingly violate, attempt to violate, or 

20 assist another in violating the rules of play estab21 lished by the licensee for the purpose of obtaining 

22 prohibited or unfair advantage in any game author23 ized under this title. 

24 (2) CHEATING DEVICES.—Except as provided in 

25 paragraph (3), no person initiating, receiving, or 


srobinson on DSK4SPTVN1PROD with BILLS
75 

•HR 2366 IH

1 otherwise making a bet or wager with a licensee, or 

2 sending, receiving, or inviting information assisting 

3 with a bet or wager with a licensee shall knowingly 

4 use, possess, or assist another in the use of, an elec5 tronic, electrical, or mechanical device or software or 

6 other program or tool which is designed, con7 structed, or programmed specifically for use in ob8 taining an advantage in any game authorized under 

9 this title, where such advantage is prohibited or oth10 erwise violates the rules of play established by the li11 censee. 

12 (3) PERMISSIBLE USES.—It shall not be a vio13 lation of this subsection for a licensee, its agents, a 

14 qualified State agency, or its agent to use or posses 

15 a device described in the preceding sentence if— 

16 (A) such use or possession is solely for 

17 purposes of testing an Internet poker facility; 

18 (B) such device is not used in live play in19 volving actual bets or wagers; and 

20 (C) such device is registered with the Sec21 retary and the qualified State agency that 

22 issued the applicable license. 

23 (4) DISCLOSURE TO PUBLIC NOT REQUIRED.— 

24 Notwithstanding any other provision of law, a regVerDate Mar 15 2010 22:01 Jun 28, 2011 Jkt 099200 PO 00000 Frm 00075 Fmt 6652 Sfmt 6201 E:\BILLS\H2366.IH H2366

srobinson on DSK4SPTVN1PROD with BILLS
76 

•HR 2366 IH

1 istration under paragraph (3)(C) is not required to 

2 be made available to the public. 

3 (b) ADDITIONAL OFFENSE.— 

4 (1) IN GENERAL.—Except as provided in para5 graph (3), no person initiating, receiving, or other6 wise making a bet or wager with a licensee, or send7 ing, receiving, or inviting information assisting with 

8 a bet or wager with a licensee, shall knowingly use, 

9 possess, or assist another in the use of any cheating 

10 device with intent to cheat or defraud any licensee 

11 or other persons placing bets or wagers with such li12 censee. 

13 (2) BOTS.—A software program that makes 

14 bets or wagers according to an algorithm shall con15 stitute a type of cheating device under this sub16 section. 

17 (3) PERMISSIBLE USES.—It shall not be a vio18 lation of this subsection for a licensee, its agents, a 

19 qualified State agency, or its agent to use or posses 

20 a device described in paragraph (1) or (2) if— 

21 (A) such use or possession is solely for 

22 purposes of testing an Internet poker facility; 

23 (B) such device is not used in live play in24 volving actual bets or wagers; and 


srobinson on DSK4SPTVN1PROD with BILLS
77 

•HR 2366 IH

1 (C) such device is registered with the 

2 qualified State agency that issued the applicable 

3 license. 

4 (4) DISCLOSURE TO PUBLIC NOT REQUIRED.— 

5 Notwithstanding any other provision of law, a reg6 istration under paragraph (3)(C) is not required to 

7 be made available to the public. 

8 (c) PERMANENT INJUNCTION.—Upon conviction of a 

9 person for violation of this section, the court may enter 

10 a permanent injunction enjoining such person from initi11 ating, receiving, or otherwise making bets or wagers or 

12 sending, receiving, or inviting information assisting in the 

13 placing of bets or wagers. 

14 (d) CRIMINAL PENALTY.—Whoever violates sub15 section (a) or (b) shall be fined under title 18, United 

16 States Code, or imprisoned for not more than 3 years, or 

17 both. 

18 (e) REPORTS.— 

19 (1) RECOMMENDED MINIMUM STANDARDS.— 

20 Not later than 180 days after the date of the enact21 ment of this Act, the Secretary shall submit to Con22 gress a report containing the recommendations of 

23 the Secretary on what minimum standards quali24 fying bodies should adopt to carry out the require25 ments of subsection (a). 


srobinson on DSK4SPTVN1PROD with BILLS
78 

•HR 2366 IH

1 (2) IDENTIFICATION OF THREATS TO OPER2 ATION OF INTERNET POKER FACILITIES.—Not later 

3 than 1 year after the date that licenses are first 

4 issued under section 118(a), the Director of the Na5 tional Institute of Standards and Technology shall 

6 submit to Congress a report that identifies threats 

7 to the integrity of Internet poker facilities operated 

8 by licensees, including identification of technologies 

9 that could be used to hack computer networks, fa10 cilitate cheating, or otherwise place consumers at 

11 risk of fraud or monetary loss. 

12 SEC. 111. INAPPLICABILITY OF CERTAIN PROVISIONS TO 

13 INTERSTATE OFF-TRACK WAGERS. 

14 The provisions of this title requiring a license and of 

15 subchapter IV of chapter 53 of title 31, United States 

16 Code, restricting acceptance of bets or wagers made by 

17 individuals located in the United States or requiring the 

18 blocking or other prevention of restricted transactions 

19 shall not apply with respect to the placing, transmitting, 

20 or receiving of interstate off-track wagers, as such term 

21 is defined in section 3 of the Interstate Horseracing Act 

22 of 1978 (15 U.S.C. 3002), that are permissible under such 

23 Act (15 U.S.C. 3001 et seq.), whether such off-track 

24 wager is made by telephone, Internet, satellite, or other 


srobinson on DSK4SPTVN1PROD with BILLS
79 

•HR 2366 IH

1 wire or wireless communication facility, service, or me2 dium. 

3 SEC. 112. CONSTRUCTION AND RELATION TO OTHER LAW. 

4 (a) NO IMPACT ON EXISTING LAWFUL GAMES.— 

5 (1) IN GENERAL.—If bets or wagers on certain 

6 games of skill are not regarded as gambling under 

7 all provisions of Federal, State, or tribal law in ef8 fect as of the date of enactment of this Act— 

9 (A) nothing in this title shall be construed 

10 to require licensing under this title with respect 

11 to such games; and 

12 (B) fees paid to participate in such games 

13 shall not be regarded as bets or wagers for pur14 poses of this title. 

15 (2) RELIANCE.—Nothing in this title may be 

16 relied on as support for the legality or permissibility 

17 of games described in paragraph (1) without compli18 ance with the licensing and other requirements of 

19 this title 

20 (b) NO EFFECT ON EXISTING LAW.—Nothing in this 

21 section shall be construed to repeal, to amend, or to affect 

22 the interpretation of any provision of Federal or State law 

23 that was in effect before the date of the enactment of this 

24 Act that— 


srobinson on DSK4SPTVN1PROD with BILLS
80 

•HR 2366 IH

1 (1) prohibits, restricts, or otherwise addresses 

2 bets or wagers; or 

3 (2) prohibits fraud, unfair or deceptive acts or 

4 practices, or other criminal activity. 

5 (c) PREEMPTION OF STATE AND TRIBAL LAWS.— 

6 (1) IN GENERAL.—Except as otherwise ex7 pressly provided in this title, the provisions of this 

8 title shall supersede any provisions of the law of any 

9 State or Indian tribe expressly relating to the per10 mitting, prohibiting, licensing, or regulating of Inter11 net gambling facilities, including Internet poker fa12 cilities, and the law of any State or Indian tribe ex13 pressly relating to the permitting, prohibiting, licens14 ing, or regulation of gambling, except to the extent 

15 such State or tribal laws are not inconsistent with 

16 this title. 

17 (2) LOTTERIES.—No provision of this title shall 

18 be construed to have any effect on the rights, privi19 leges, or obligations of a State or tribal lottery as 

20 may be provided under other applicable Federal, 

21 State, or tribal law. 

22 (3) SAVINGS PROVISION.—Nothing in this title 

23 may be construed to limit the applicability or en24 forcement of any State or tribal consumer protection 


srobinson on DSK4SPTVN1PROD with BILLS
81 

•HR 2366 IH

1 law or preempt the applicability of State or tribal 

2 trespass, contract, or tort law. 

3 (d) RELATION TO GAMBLING DEVICES TRANSPOR4 TATION ACT.—Equipment used by a licensee or significant 

5 vendor in the furtherance of licensed activities pursuant 

6 to this title (but not to the extent it is used for other pur7 poses) shall not be considered a gambling device within 

8 the meaning of section 1 of the Act of January 2, 1951, 

9 prohibiting the transportation of gambling devices in 

10 interstate and foreign commerce (15 U.S.C. 1171). 

11 (e) SCOPE OF WIRE ACT.—Section 1084 of title 18, 

12 United States Code, is amended by adding at the end the 

13 following new subsection: 

14 ‘‘(f) This section, subchapter IV of chapter 53 of title 

15 31, and any other provision of Federal law that establishes 

16 criminal penalties for any activity involved in placing, re17 ceiving, or otherwise transmitting a bet or wager, informa18 tion assisting in the placing of bets or wagers, or a com19 munication which entitles the recipient to receive money 

20 or credit as a result of bets or wagers, shall not apply 

21 to any activity that is permissible under the Interstate 

22 Horseracing Act of 1978 (15 U.S.C. 3001 et seq.) or title 

23 I of the Internet Gambling Prohibition, Poker Consumer 

24 Protection, and Strengthening UIGEA Act of 2011.’’. 


srobinson on DSK4SPTVN1PROD with BILLS
82 

•HR 2366 IH

1 (f) NO IMPACT ON INDIAN GAMING REGULATORY

2 ACT.— 

3 (1) IN GENERAL.—No provision of this title or 

4 decision or action taken by an Indian tribe or State 

5 pursuant to this title shall have any effect on non6 Internet gaming activities within the scope of section 

7 of the Indian Gaming Regulatory Act (25 U.S.C. 

8 2710) or any successor provisions or on any Tribal9 State compacts or authorities pursuant thereto. 

10 (2) TRIBAL STATUS OR CATEGORY NOT AF11 FECTED.—Tribal operation of Internet poker facili12 ties under this title shall not be considered class II 

13 or class III gaming under such section, and an In14 dian tribe’s status, category, or class under such sec15 tion shall not impact its status or ability to offer 

16 bets or wagers pursuant to this title. 

17 (3) NEW NEGOTIATIONS NOT REQUIRED.— 

18 (A) INDIAN TRIBES.—The fact that an In19 dian tribe is operating under a license issued 

20 pursuant to this title or that a tribal regulatory 

21 body is acting as a qualified body pursuant to 

22 this title shall not require an Indian tribe to ne23 gotiate a new agreement, limitation, or other 

24 provision of tribal-State compact, agreement, or 

25 other understanding with respect to gaming or 


srobinson on DSK4SPTVN1PROD with BILLS
83 

•HR 2366 IH

1 revenue-sharing, with regard to any bet or 

2 wager occurring pursuant to a license issued 

3 under this title. 

4 (B) STATES.—The fact that a State has 

5 prohibited or limited Internet bets or wagers 

6 under section 104(a)(3) or that a State regu7 latory body is acting as a qualified body pursu8 ant to this title shall not require the State to 

9 negotiate a new agreement, limitation, or other 

10 provision of tribal-State compact, agreement, or 

11 other understanding with respect to gaming or 

12 revenue-sharing, with regard to any bet or 

13 wager occurring pursuant to a license issued 

14 under this title. 

15 SEC. 113. REGULATIONS. 

16 Not later than 180 days after the date of the enact17 ment of this Act, the Secretary shall prescribe such regula18 tions as the Secretary considers necessary and where ex19 pressly required or authorized to carry out this title. 

20 SEC. 114. ANNUAL REPORTS. 

21 (a) LICENSING AND REGULATION OF INTERNET

22 POKER FACILITIES.—Not later than 1 year after the date 

23 that licenses first issue under this title and annually there24 after, the Secretary shall transmit to Congress a report 


srobinson on DSK4SPTVN1PROD with BILLS
84 

•HR 2366 IH

1 on the licensing and regulation of Internet poker facilities 

2 under this title, including— 

3 (1) the amount of fees collected under section 

4 104(e) and, in cooperation with the Secretary of 

5 Treasury, an estimate of the amount of income tax 

6 revenue that is attributable to the operation of 

7 Internet poker facilities during the period covered by 

8 the report; 

9 (2) a list of qualified State agencies, the num10 ber of licensees reviewed by the qualified State agen11 cies under this title, and the outcomes of such re12 views; 

13 (3) a description of the efforts the Secretary 

14 has undertaken to ensure that qualified State agen15 cies are properly issuing licenses and regulating li16 censees under this title; 

17 (4) a detailed description of each type of game 

18 offered by licensees and how each type is consistent 

19 with the definition of poker under section 102; and 

20 (5) any other information the Secretary deter21 mines may be useful to Congress. 

22 (c) CONSUMER PROTECTION.—Not later than 1 year 

23 after the date that licenses first issue under this title and 

24 annually thereafter, the Secretary shall transmit to the 

25 Committee on Energy and Commerce of the House of 


srobinson on DSK4SPTVN1PROD with BILLS
85 

•HR 2366 IH

1 Representatives and the Committee on Commerce, 

2 Science, and Transportation of the Senate a report on 

3 commercial and regulatory practices carried out to protect 

4 consumers with respect to Internet poker, including the 

5 practices carried out pursuant to the requirements of sec6 tion 106 and the regulations prescribed pursuant to such 

7 section. Such report shall include— 

8 (1) a detailed description of the efforts of each 

9 qualified State agency to protect consumers from 

10 unfair or deceptive acts or practices, including de11 ceptive advertising and marketing to minors; 

12 (2) a description of the practices that the Sec13 retary recommends qualified State agency to adopt 

14 to protect consumers; 

15 (3) such recommendations as the Secretary may 

16 have for legislative action as the Secretary considers 

17 necessary to protect consumers with respect to 

18 Internet poker; and 

19 (4) such other information as the Secretary 

20 considers appropriate. 

21 SEC. 115. EFFECTIVE DATE. 

22 (a) IN GENERAL.—Except as otherwise provided in 

23 this title, the provisions of this title shall take effect on 

24 the date that is 30 days after the date of the enactment 

25 of this Act. 


srobinson on DSK4SPTVN1PROD with BILLS
86 

•HR 2366 IH

1 (b) REGULATIONS REQUIRED BEFORE ISSUING LI2 CENSES.—Notwithstanding any other provision of this 

3 title, a qualified State agency may not issue a license 

4 under this title before the later of— 

5 (1) the date on which the Secretary prescribes 

6 final regulations under section 113; 

7 (2) the date on which the Secretary of the 

8 Treasury prescribes final regulations pursuant to 

9 subsections (a) and (d) of section 203; and 

10 (3) the date on which the Director of the Fi11 nancial Crimes Enforcement Network submits to the 

12 Secretary of the Treasury a list of unlicensed Inter13 net gambling enterprises pursuant to section 

14 5369(a)(1)(B) of title 31, United States Code, as 

15 added by section 202(a). 

16 TITLE II—STRENGTHENING OF 

17 UNLAWFUL INTERNET GAM18 BLING ENFORCEMENT ACT 

19 OF 2006 

20 SEC. 201. FINANCIAL TRANSACTION PROVIDERS. 

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

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

23 end the following: 


srobinson on DSK4SPTVN1PROD with BILLS
87 

•HR 2366 IH

1 ‘‘§ 5368. Liability of financial transaction providers 

2 ‘‘(a) LIABILITY FOR CERTAIN FINANCIAL ACTIVITIES

3 AND TRANSACTIONS.—A financial transaction provider 

4 shall not be held liable for engaging in a financial activity 

5 or transaction, including a payments processing activity, 

6 in connection with a bet or wager permitted by the Inter7 net Gambling Prohibition, Poker Consumer Protection, 

8 and Strengthening UIGEA Act of 2011 or the Interstate 

9 Horseracing Act of 1978 (15 U.S.C. 3001 et seq.) unless 

10 the financial transaction provider has actual knowledge 

11 that the financial activity or transaction was conducted 

12 in violation of either such Act or any other applicable pro13 vision of Federal or State law. 

14 ‘‘(b) NO LIABILITY FOR BLOCKING OR REFUSING TO

15 HONOR CERTAIN TRANSACTIONS.— 

16 ‘‘(1) IN GENERAL.—A financial transaction pro17 vider that takes an action described in paragraph 

18 (2) with respect to a transaction shall not be liable 

19 to any party for that action if the financial trans20 action provider takes the action because the origi21 nator of the transaction or a party to the trans22 action is— 

23 ‘‘(A) a person or entity that is included in 

24 the list of unlicensed Internet gambling enter25 prises required by section 5369(a); 


srobinson on DSK4SPTVN1PROD with BILLS
88 

•HR 2366 IH

1 ‘‘(B) a person or entity that the financial 

2 transaction provider reasonably believes is in3 cluded in that list; 

4 ‘‘(C) a person or entity that is included in 

5 a list of unlicensed Internet gambling enter6 prises made available to the financial trans7 action provider by the Secretary under section 

8 5369(a)(3); 

9 ‘‘(D) a person or entity that the financial 

10 transaction provider reasonably believes is in11 cluded in a list described in subparagraph (C); 

12 ‘‘(E) a person or entity that is dem13 onstrated to be an unlicensed Internet gambling 

14 enterprise based on information, other than a 

15 list described in subparagraph (C), that is made 

16 available to the financial transaction provider; 

17 or 

18 ‘‘(F) a person or entity that the financial 

19 transaction provider reasonably believes is dem20 onstrated to be an unlicensed Internet gambling 

21 enterprise based on information described in 

22 subparagraph (E). 

23 ‘‘(2) ACTIONS DESCRIBED.—A financial trans24 action provider takes an action described in this 

25 paragraph if the financial transaction provider— 


srobinson on DSK4SPTVN1PROD with BILLS
89 

•HR 2366 IH

1 ‘‘(A) identifies and blocks a transaction; 

2 ‘‘(B) prevents or prohibits the acceptance 

3 of its products or service in connection with a 

4 transaction or otherwise refuses to honor a 

5 transaction; or 

6 ‘‘(C) closes an account or ends a financial 

7 relationship.’’. 

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

9 for chapter 53 of title 31, United States Code, is amended 

10 by adding at the end the following: 

‘‘5368. Liability of financial transaction providers.’’. 

11 (c) TECHNICAL CORRECTION.—Section 

12 5362(11)(B)(i) of title 31, United States Code, is amend13 ed by striking ‘‘section 903(6)(E)’’ and inserting ‘‘section 

14 903(7)(E)’’. 

15 SEC. 202. LIST OF UNLICENSED INTERNET GAMBLING EN16 TERPRISES. 

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

18 title 31, United States Code, as amended by section 

19 201(a), is further amended by adding at the end the fol20 lowing: 

21 ‘‘§ 5369. List of unlicensed Internet gambling enter22 prises 

23 ‘‘(a) LIST OF UNLICENSED INTERNET GAMBLING

24 ENTERPRISES.— 

25 ‘‘(1) IN GENERAL.—The Director shall— 


srobinson on DSK4SPTVN1PROD with BILLS
90 

•HR 2366 IH

1 ‘‘(A) identify unlicensed Internet gambling 

2 enterprises in accordance with the procedures 

3 described in subsection (b); 

4 ‘‘(B) not later than 120 days after the 

5 date of the enactment of the Internet Gambling 

6 Prohibition, Poker Consumer Protection, and 

7 Strengthening UIGEA Act of 2011, submit to 

8 the Secretary a list of unlicensed Internet gam9 bling enterprises that includes the information 

10 described in paragraph (2); and 

11 ‘‘(C) not less frequently than every 60 days 

12 thereafter, submit to the Secretary an updated 

13 list that reflects the results of subsequent inves14 tigations carried out under this section. 

15 ‘‘(2) INFORMATION REQUIRED.—The informa16 tion described in this paragraph is, with respect to 

17 each unlicensed Internet gambling enterprise in18 cluded on the list required by paragraph (1), the fol19 lowing: 

20 ‘‘(A) All known Internet Web site address21 es of the enterprise. 

22 ‘‘(B) The name of any person who con23 trols, finances, manages, supervises, directs, or 

24 owns all or part of the enterprise (as such 

25 terms are used in section 1955 of title 18). 


srobinson on DSK4SPTVN1PROD with BILLS
91 

•HR 2366 IH

1 ‘‘(C) To the extent known, information 

2 identifying the financial agents and account 

3 numbers of the enterprise and the persons de4 scribed in subparagraph (B). 

5 ‘‘(3) DISTRIBUTION OF LIST.—Not later than 

6 10 days after receiving the list or an updated version 

7 of the list required by paragraph (1) from the Direc8 tor, the Secretary shall— 

9 ‘‘(A) post the information provided under 

10 subparagraphs (A) and (B) of paragraph (2) on 

11 the Internet Web site of the Department of the 

12 Treasury; and 

13 ‘‘(B) provide to each person that is re14 quired to comply with the regulations pre15 scribed pursuant to section 5364 a copy of the 

16 information included with the list required by 

17 paragraph (1) in an electronic format compat18 ible with the list of Specially Designated Na19 tionals and Blocked Persons maintained by the 

20 Office of Foreign Assets Control. 

21 ‘‘(b) PROCEDURES FOR IDENTIFYING UNLICENSED

22 INTERNET GAMBLING ENTERPRISES.— 

23 ‘‘(1) INVESTIGATIONS.— 

24 ‘‘(A) INITIAL INVESTIGATION.—Not later 

25 than the date that is 60 days after the date of 


srobinson on DSK4SPTVN1PROD with BILLS
92 

•HR 2366 IH

1 the enactment of the Interne Gambling Prohibi2 tion, Poker Consumer Protection, and Strength3 ening UIGEA Act of 2011, the Director shall 

4 complete an initial investigation of entities that 

5 appear to be unlicensed Internet gambling en6 terprises. 

7 ‘‘(B) SUBSEQUENT INVESTIGATIONS.— 

8 After completing the initial investigation re9 quired by subparagraph (A), the Director shall 

10 regularly investigate entities that appear to be 

11 unlicensed Internet gambling enterprises. 

12 ‘‘(2) REQUESTS.— 

13 ‘‘(A) IN GENERAL.—Any Federal, State, 

14 tribal, or local law enforcement official, any af15 fected sports organization, any person directly 

16 harmed by unlicensed Internet gaming, any fi17 nancial transaction provider, and any inter18 active computer service shall have the right, but 

19 not the obligation, to make a written request to 

20 the Director for the addition of any person to 

21 the list of unlicensed Internet gambling enter22 prises required by subsection (a). 

23 ‘‘(B) DETERMINATIONS; NOTICE TO PER24 SON THAT SUBMITTED A REQUEST.—Not later 


srobinson on DSK4SPTVN1PROD with BILLS
93 

•HR 2366 IH

1 than 30 days after receiving a request under 

2 subparagraph (A), the Director shall— 

3 ‘‘(i) determine if the request contains 

4 information sufficient to constitute a prima 

5 facie case that an entity is an unlicensed 

6 Internet gambling enterprise; and 

7 ‘‘(ii) notify the person that submitted 

8 the request of the determination of the Di9 rector. 

10 ‘‘(3) NOTICE.—Not later than 30 days before 

11 including a person in the list of unlicensed Internet 

12 gambling enterprises required by subsection (a), the 

13 Director shall provide written notice to the person of 

14 the determination of the Director to include the per15 son in the list. 

16 ‘‘(4) OPPORTUNITY TO CONTEST.— 

17 ‘‘(A) IN GENERAL.—A person that receives 

18 notice under paragraph (3) that the Director 

19 has determined to include the person in the list 

20 of unlicensed Internet gambling enterprises re21 quired by subsection (a) may, not later than 30 

22 days after receiving the notice, contest the de23 termination— 

24 ‘‘(i) by submitting a written appeal to 

25 the Director; and 


srobinson on DSK4SPTVN1PROD with BILLS
94 

•HR 2366 IH

1 ‘‘(ii) by agreeing in the written appeal 

2 to submit to the jurisdiction of the United 

3 States. 

4 ‘‘(B) EFFECT OF NOT CONTESTING.—If a 

5 person described in subparagraph (A) does not 

6 contest the determination of the Director to in7 clude the person in the list of unlicensed Inter8 net gambling enterprises required by subsection 

9 (a) in accordance with subparagraph (A), the 

10 Director shall include the person in the list. 

11 ‘‘(5) OPPORTUNITY FOR HEARING.—The Direc12 tor— 

13 ‘‘(A) may not include a person that sub14 mits a written appeal pursuant to paragraph 

15 (4) in the list of unlicensed Internet gambling 

16 enterprises required by subsection (a) until the 

17 Director provides the person with an oppor18 tunity for a hearing; and 

19 ‘‘(B) shall provide the person the oppor20 tunity for a hearing not later than 30 days 

21 after receiving the written appeal from the per22 son. 

23 ‘‘(6) DETERMINATIONS AFTER HEARING.—Not 

24 later than 10 days after the date of a hearing pro25 vided for a person under paragraph (5) (without reVerDate Mar 15 2010 22:01 Jun 28, 2011 Jkt 099200 PO 00000 Frm 00094 Fmt 6652 Sfmt 6201 E:\BILLS\H2366.IH H2366

srobinson on DSK4SPTVN1PROD with BILLS
95 

•HR 2366 IH

1 gard to whether the person appears at the hearing), 

2 the Director shall— 

3 ‘‘(A) determine if the person should be in4 cluded in the list of unlicensed Internet gam5 bling enterprises required by subsection (a); 

6 and 

7 ‘‘(B) if the Director determines that the 

8 person should be included in the list, add the 

9 person to the list. 

10 ‘‘(7) INJUNCTIVE RELIEF.— 

11 ‘‘(A) IN GENERAL.—A person described in 

12 subparagraph (B) may petition for injunctive 

13 relief in the United States District Court for 

14 the District of Columbia, which shall have ex15 clusive jurisdiction to hear cases arising under 

16 this section. 

17 ‘‘(B) PERSON DESCRIBED.—A person de18 scribed in this subparagraph is a person that 

19 the Director determines to include in the list of 

20 unlicensed Internet gambling enterprises re21 quired by subsection (a)— 

22 ‘‘(i) after the person appears at a 

23 hearing described in paragraph (5); or 

24 ‘‘(ii) that did not receive the notice re25 quired by paragraph (3). 


srobinson on DSK4SPTVN1PROD with BILLS
96 

•HR 2366 IH

1 ‘‘(C) BURDEN OF PROOF.—The petitioner 

2 shall have the burden of establishing that the 

3 person should not be included in the list of unli4 censed Internet gambling enterprises required 

5 by subsection (a). 

6 ‘‘(D) STANDING.—Only persons that the 

7 Director determines to include in the list of un8 licensed Internet gambling enterprises required 

9 by subsection (a) and owners or operators of 

10 such enterprises shall have standing to contest 

11 the determination of the Director. 

12 ‘‘(E) AVAILABLE RELIEF.—The court may 

13 direct the Director and the Secretary not to 

14 add, or to remove, the petitioner from the list 

15 of unlicensed Internet gambling enterprises. 

16 ‘‘(F) UNAVAILABILITY OF OTHER REM17 EDIES.—There shall be no judicial review of a 

18 determination under this section other than 

19 pursuant to this paragraph. 

20 ‘‘(c) EFFECT OF LIST.—A financial transaction pro21 vider shall be deemed to have actual knowledge that a per22 son or entity is an unlicensed Internet gambling enterprise 

23 if— 


srobinson on DSK4SPTVN1PROD with BILLS
97 

•HR 2366 IH

1 ‘‘(1) the person or entity is included in the list 

2 of unlicensed Internet gambling enterprises required 

3 by subsection (a); or 

4 ‘‘(2)(A) the person or entity is included in a list 

5 of unlicensed Internet gambling enterprises made 

6 available to the financial transaction provider by the 

7 Secretary under subsection (a)(3); and 

8 ‘‘(B) information in addition to the list de9 scribed in subparagraph (A) is available to the fi10 nancial transaction provider that demonstrates that 

11 the person or entity is an unlicensed Internet gam12 bling enterprise. 

13 ‘‘(d) DEFINITIONS.—In this section: 

14 ‘‘(1) DIRECTOR.—The term ‘Director’ means 

15 the Director of the Financial Crimes Enforcement 

16 Network appointed under section 310(b). 

17 ‘‘(2) SPORTS ORGANIZATION.—The term ‘sports 

18 organization’ means an amateur sports organization 

19 or a professional sports organization (as those terms 

20 are defined in section 3701 of title 28). 

21 ‘‘(3) UNLICENSED INTERNET GAMBLING EN22 TERPRISE.—The term ‘unlicensed Internet gambling 

23 enterprise’ means any person who, on or after the 

24 date of the enactment of the Internet Gambling ProVerDate Mar 15 2010 22:01 Jun 28, 2011 Jkt 099200 PO 00000 Frm 00097 Fmt 6652 Sfmt 6201 E:\BILLS\H2366.IH H2366

srobinson on DSK4SPTVN1PROD with BILLS
98 

•HR 2366 IH

1 hibition, Poker Consumer Protection, and Strength2 ening UIGEA Act of 2011— 

3 ‘‘(A) violates a provision of section 5363; 

4 ‘‘(B) knowingly assists a person in conduct 

5 described in subparagraph (A).’’. 

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

7 at the beginning of such chapter 53, as amended by sec8 tion 201(b), is further amended by adding at the end the 

9 following: 

‘‘5369. Unlicensed Internet gambling enterprises.’’. 

10 SEC. 203. REGULATIONS. 

11 (a) REGULATIONS.—Not later than 180 days after 

12 the date of the enactment of this Act, the Secretary of 

13 the Treasury shall— 

14 (1) prescribe regulations to carry out sections 

15 5368 and 5369 of title 31, United States Code, as 

16 added by sections 201(a) and 202(a), and publish 

17 such regulations in final form in the Federal Reg18 ister; and 

19 (2) prescribe such regulations as the Secretary 

20 of the Treasury considers necessary to ensure com21 pliance with chapter 2 of title I of Public Law 91– 

22 508 (12 U.S.C. 1951 et seq.) and subchapter II of 

23 chapter 53 of title 31, United States Code (com24 monly known, collectively, as the ‘‘Bank Secrecy 

25 Act’’), by licensees, significant vendors to such liVerDate Mar 15 2010 22:01 Jun 28, 2011 Jkt 099200 PO 00000 Frm 00098 Fmt 6652 Sfmt 6201 E:\BILLS\H2366.IH H2366

srobinson on DSK4SPTVN1PROD with BILLS
99 

•HR 2366 IH

1 censees, and financial service providers to such li2 censees (as such terms are defined in section 102). 

3 (b) EXCLUSION OF BOARD OF GOVERNORS OF THE

4 FEDERAL RESERVE SYSTEM FROM REQUIREMENT TO

5 PRESCRIBE REGULATIONS CONCERNING PREVENTION OF

6 RESTRICTED TRANSACTIONS.—Subsection (a) of section 

7 5364 of title 31, United States Code, is amended by strik8 ing ‘‘Before the end of the 270-day period beginning on 

9 the date of the enactment of this subchapter, the Sec10 retary and the Board of Governors of the Federal Reserve 

11 System, in consultation with the Attorney General, shall 

12 prescribe regulations (which the Secretary and the Board 

13 jointly determine to be appropriate)’’ and inserting ‘‘The 

14 Secretary shall prescribe regulations’’. 

15 (c) TEMPORARY SUSPENSION OF CERTAIN REGULA16 TIONS.— 

17 (1) IN GENERAL.—Subject to paragraph (2), 

18 during the period beginning on the date of the en19 actment of this Act and ending on the date set forth 

20 in subsection (d), part 233 of title 12, Code of Fed21 eral Regulations, and part 132 of title 31, Code of 

22 Federal Regulations, shall have no force or effect to 

23 the extent that those regulations require or impose 

24 any obligation that is inconsistent with the provi25 sions of title I. 


srobinson on DSK4SPTVN1PROD with BILLS
100 

•HR 2366 IH

1 (2) PREVIOUS VIOLATION.—Paragraph (1) shall 

2 not apply with respect to any violation of a regula3 tion described in such paragraph that occurred be4 fore the date of the enactment of this Act. 

5 (d) REVISION OF REGULATIONS.—Not later than 180 

6 days after the date of the enactment of this Act, the Sec7 retary of the Treasury shall revise part 233 of title 12, 

8 Code of Federal Regulations, and part 132 of title 31, 

9 Code of Federal Regulations, to conform with the provi10 sions of title I. 

11 (e) ANNUAL REPORT.—Not later than 1 year after 

12 the date on which the Secretary of the Treasury prescribes 

13 regulations under this section, and annually thereafter, 

14 the Secretary shall submit to Congress a report on the 

15 list required by section 5369(a) of title 31, United States 

16 Code, as added by section 202(a), including the following: 

17 (1) The size of the list. 

18 (2) The number of persons and Web sites 

19 added to and removed from the list. 

20 (3) The number and description of challenges to 

21 inclusion on the list and a description of how such 

22 challenges were resolved. 

23 SEC. 204. CONFORMING AMENDMENTS. 

24 (a) DUTIES AND POWERS OF THE DIRECTOR OF THE

25 FINANCIAL CRIMES ENFORCEMENT NETWORK.—Section 


srobinson on DSK4SPTVN1PROD with BILLS
101 

•HR 2366 IH

1 310(b)(2)(I) of title 31, United States Code, is amended 

2 by striking ‘‘subchapter II’’ and inserting ‘‘subchapters II 

3 and IV’’. 

4 (b) EXCLUSION OF LICENSED INTERNET POKER FA5 CILITY OPERATIONS FROM DEFINITION OF UNLAWFUL

6 INTERNET GAMBLING ENTERPRISE.—Section 5362(10) 

7 of such title is amended— 

8 (1) in subparagraph (D), by striking clause 

9 (iii); 

10 (2) by redesignating subparagraph (E) as sub11 paragraph (F); and 

12 (3) by inserting after subparagraph (D) the fol13 lowing: 

14 ‘‘(E) LICENSED INTERNET POKER FACILI15 TIES.—The term ‘unlawful Internet gambling’ 

16 does not include an activity carried out by an 

17 Internet poker facility, as such term is defined 

18 in section 102 of the Internet Gambling Prohi19 bition, Poker Consumer Protection, and 

20 Strengthening UIGEA Act of 2011, operated by 

21 a person under a license provided under title I 

22 of such Act in accordance with the provisions of 

23 such title.’’. 

Æ 


srobinson on DSK4SPTVN1PROD with BILLS