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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2366 Introduced in House (IH)]

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. Sanchez 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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Internet Gambling 
Prohibition, Poker Consumer Protection, and Strengthening UIGEA Act of 
2011''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
TITLE I--PROHIBITION ON UNLICENSED INTERNET 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.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Since the development of the Internet, online Web sites 
        offering Internet gambling have raised numerous policy, 
        consumer protection, and enforcement concerns for Federal and 
        State governments as such Web sites are run by operators 
        located in many different countries and have sought to attract 
        customers from the United States.
            (2) The Unlawful Internet Gambling Enforcement Act of 2006 
        (title VIII of Public Law 109-347; 120 Stat. 1952) was intended 
        to aid enforcement efforts against unlawful Internet operators 
        and to limit unlawful Internet gaming involving United States 
        persons. However, that Act has only been partially successful 
        in doing so.
            (3) There is uncertainty about the laws of the United 
        States governing Internet gambling and Internet poker, though 
        not about laws governing Internet sports betting. The 
        Department of Justice has maintained that a broad range of 
        activity is illegal, including activity that Congress intended 
        to legalize under the Interstate Horseracing Act of 1978. 
        Certain court decisions have used logic not consistent with 
        aspects of the position of the Department of Justice. 
        Enforcement efforts would be aided by bringing greater clarity 
        to this area.
            (4) Additional tools to assist law enforcement in the 
        prevention of unlawful Internet gaming activities would be 
        important and beneficial. Maintenance of a list of unlicensed 
        Internet gambling enterprises and the owners, operators, and 
        key personnel of such enterprises (as well as entities and 
        related personnel found unsuitable) would aid those law 
        enforcement efforts and would make the Unlawful Internet 
        Gambling Enforcement Act more effective.
            (5) Poker is distinct from the class of games of chance 
        traditionally defined as gambling in that, players compete 
        against each other, and not the person or entity hosting the 
        game (sometimes called ``the house''), and that over any 
        significant interval, the outcome of a poker game is 
        predominantly determined by the skill of the participants.
            (6) United States consumers would benefit from a program of 
        Internet poker regulation which recognizes the interstate 
        nature of the Internet, but nevertheless preserves the 
        prerogatives of States. Such a system would require strict 
        licensing of Internet poker providers and would require 
        licensee operators to--
                    (A) have effective means to prevent minors from 
                playing poker on-line;
                    (B) identify and help treat problem gamblers; to 
                ensure that games are fair;
                    (C) allow players to self-exclude and limit losses; 
                and
                    (D) prevent money laundering.
            (7) Such a program would create a new industry within the 
        United States creating thousands of jobs and substantial tax 
        revenue for Federal and State governments.

TITLE I--PROHIBITION ON UNLICENSED INTERNET GAMBLING AND INTERNET POKER 
                          CONSUMER PROTECTION

SEC. 101. DEFINITIONS.

    As used in this title, the following definitions apply:
            (1) Applicant.--The term ``applicant'' means any person who 
        has applied for a license pursuant to this title.
            (2) Bet or wager.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the term ``bet or wager'' has the meaning given 
                the term in section 5362 of title 31, United States 
                Code.
                    (B) Exception.--The term ``bet or wager'' does not 
                include the following:
                            (i) Interstate horseracing.--A bet or wager 
                        that is permissible under the Interstate 
                        Horseracing Act of 1978 (15 U.S.C. 3001 et 
                        seq.).
                            (ii) Certain intrastate transactions.--
                        Placing, receiving, or otherwise transmitting a 
                        bet or wager--
                                    (I) as described in subparagraph 
                                (B) of section 5362(10) of title 31, 
                                United States Code, and clarified by 
                                subparagraph (E) of such section; and
                                    (II) authorized under a license 
                                that was issued by a regulatory body of 
                                a State or Indian tribe on or before 
                                the date of the enactment of this Act.
                            (iii) Intrastate lottery transactions.--A 
                        bet or wager that is--
                                    (I) a chance or opportunity to win 
                                a lottery or other prize (which 
                                opportunity to win is predominantly 
                                subject to chance) authorized by a 
                                State or Indian tribe; and
                                    (II) a placing, receiving, or 
                                transmitting of a bet or wager as 
                                described in such subparagraph (B) and 
                                clarified by subparagraph (E) of such 
                                section 5362(10).
                            (iv) Intratribal transactions.--Placing, 
                        receiving, or otherwise transmitting a bet or 
                        wager as described in subparagraph (C) of such 
                        section 5362(10), as clarified by such 
                        subparagraph (E).
            (3) Casino gaming.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the term ``casino gaming'' means the full range of 
                casino gaming activity licensed by regulatory bodies of 
                States or Indian tribes that would be qualified as 
                class III gaming under section 4 of the Indian Gaming 
                Regulatory Act (25 U.S.C. 2703), if that Act were 
                applicable to the gaming.
                    (B) Exception.--The term ``casino gaming'' does not 
                include lotteries of States or Indian tribes.
            (4) Casino gaming facilities.--The term ``casino gaming 
        facility'' means a facility that provides casino gaming on a 
        riverboat, at a race track, or in another facility that hosts 
        500 or more gaming devices in 1 physical location pursuant to a 
        duly authorized license issued by a gaming regulatory authority 
        of a State or Indian tribe.
            (5) Gaming device.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the term ``gaming device'' means any computer-
                based gambling machine, including slot machines and 
                video lottery terminals that have been approved by a 
                gaming regulatory authority of a State or Indian tribe.
                    (B) Exception.--The term ``gaming device'' does not 
                include machines that process bets or wagers for pari-
                mutuel betting pools.
            (6) Indian lands and indian tribe.--The terms ``Indian 
        lands'' and ``Indian tribe'' have the meaning given the terms 
        in section 4 of the Indian Gaming Regulatory Act (25 U.S.C. 
        2703).
            (7) Internet.--The term ``Internet'' has the meaning given 
        the term in section 5362 of title 31, United States Code.
            (8) Internet gambling facility.--The term ``Internet 
        gambling facility'' means an Internet Web site, or similar 
        communications facility in which transmissions may cross State 
        boundaries, through which a bet or wager is initiated, 
        received, or otherwise made, whether transmitted by telephone, 
        Internet, satellite, or other wire or wireless communication 
        facility, service, or medium.
            (9) Internet poker.--The term ``Internet poker'' means a 
        poker game, hand, tournament, or other contest of poker offered 
        through the use of an Internet poker facility.
            (10) Internet poker facility.--The term ``Internet poker 
        facility'' means a type of Internet gambling facility that 
        provides bets or wagers only with respect to a game, hand, 
        tournament, or other contest of poker.
            (11) Licensee.--The term ``licensee'' means a person who 
        operates an Internet poker facility under a license issued by a 
        qualified State agency pursuant to this title.
            (12) Live racing.--The term ``live racing'' means, with 
        respect to a qualified race track, the conduct of live 
        thoroughbred horse races at such race track, but does not 
        include any races simulcasted from a separate race track.
            (13) Operate an internet gambling facility.--The term 
        ``operate an Internet gambling facility'' means to conduct, 
        direct, manage, own, supervise, or control an Internet gambling 
        facility.
            (14) Operate an internet poker facility.--The term 
        ``operate an Internet poker facility'' means to conduct, 
        direct, manage, own, supervise, or control an Internet poker 
        facility.
            (15) Poker.--The term ``poker'' means any of several card 
        games in which players compete against each other, and not the 
        person or entity hosting the game (sometimes called ``the 
        house''), and that over any significant interval, the outcome 
        of a poker game is predominantly determined by the skill of the 
        participants.
            (16) Qualified state agency.--The term ``qualified State 
        agency'' means--
                    (A) a State agency or regulatory body of an Indian 
                tribe that has been designated as a qualified body 
                under paragraph (1) or (3) of section 105(a); or
                    (B) the Office of Internet Poker Oversight 
                established under section 106(a) and designated under 
                paragraph (2) of section 105(a).
            (17) Qualified card room.--The term ``qualified card room'' 
        means a facility that has been licensed by a State or Indian 
        tribe to provide at least 250 tables in 1 physical facility for 
        bets or wagers on poker.
            (18) Qualified mobile gaming system.--The term ``qualified 
        mobile gaming system'' means a system for the conduct of casino 
        gaming through communications devices or gaming devices 
        operated at a casino gaming facility by the use of 
        communication technology that allows a person to transmit 
        wirelessly information to a computer to assist in the placing 
        of a bet or wager and corresponding information related to the 
        display of the game, game outcomes, or other similar 
        information and which is licensed for operation at a casino 
        gaming facility by a State or Indian tribe.
            (19) Qualified race track.--The term ``qualified race 
        track'' means a race track or other pari-mutuel wagering 
        facility that--
                    (A) has been licensed by a regulatory authority of 
                a State or Indian tribe to accept pari-mutuel wagers on 
                horse races; and
                    (B) has--
                            (i) at least 500 gaming devices at 1 
                        physical location; or
                            (ii) processed at least $200,000,000 or 
                        more in gross wagering on horse racing during 
                        any 3 of the 5 years preceding the date of the 
                        enactment of this Act.
            (20) Remote gaming equipment.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the term ``remote gaming equipment'' means 
                electronic or other equipment principally used by or on 
                behalf of an operator of an Internet poker facility, 
                including by any significant vendor to such operator, 
                to--
                            (i) register a person's participation in 
                        Internet poker and to store information 
                        relating thereto;
                            (ii) present to persons who are 
                        participating or who may participate in 
                        Internet poker the game that is to be played;
                            (iii) determine all or part of, or the 
                        effect of, a result relevant to a game, hand, 
                        tournament, or other contest of Internet poker 
                        and to store information relating thereto;
                            (iv) accept payment with respect to 
                        Internet poker from the player; or
                            (v) authorize payment of any winnings in 
                        respect of Internet poker.
                    (B) Exception.--The term ``remote gaming 
                equipment'' does not include the following:
                            (i) Equipment used for business continuity, 
                        back-up, excess capacity, or other secondary 
                        use.
                            (ii) A computer which is used by a person 
                        to participate in Internet poker unless the 
                        computer is provided by or on behalf of the 
                        person who is conducting or providing the 
                        facilities for the game.
                            (iii) Equipment operated in the ordinary 
                        course of providing banking, 
                        telecommunications, or payment processing 
                        services.
                            (iv) Such other equipment that provides 
                        ancillary services as the Secretary considers 
                        appropriate.
            (21) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.
            (22) Significant vendor.--The term ``significant vendor'' 
        means a person who--
                    (A) on behalf of a licensee, knowingly manages, 
                administers, or controls bets or wagers that are 
                initiated, received, or otherwise made within the 
                United States;
                    (B) on behalf of a licensee, knowingly manages, 
                administers, or controls the games with which such bets 
                or wagers are associated;
                    (C) on behalf of a licensee, develops, maintains, 
                or operates the software or other system programs or 
                hardware on which the games or the bets or wagers are 
                managed, administered, or controlled;
                    (D) provides the trademarks, trade names, service 
                marks, or similar intellectual property under which a 
                licensee identifies its Internet poker facility to its 
                customers in the United States;
                    (E) provides information on individuals in the 
                United States that made bets or wagers with an Internet 
                gambling facility not licensed under this title via a 
                database or customer lists;
                    (F) provides any products, services, or assets to a 
                licensee and is paid a percentage of gaming revenue or 
                Internet poker commission fees by the licensee (not 
                including fees to financial institutions and payment 
                providers for facilitating a deposit by a customer); or
                    (G) with respect to an applicant, proposes to 
                provide any of the activities, services, or items 
                identified in subparagraphs (A) through (E).
            (23) Sporting event.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the term ``sporting event'' means any athletic 
                competition, whether professional, scholastic, or 
                amateur or any performance of any athlete in such 
                competitions.
                    (B) Exception.--The term ``sporting event'' does 
                not include any activity described in section 
                3704(a)(4) of title 28, United States Code.
            (24) State.--The term ``State'' means each of the several 
        States of the United States, the District of Columbia, and any 
        commonwealth, territory, or possession of the United States.

SEC. 102. PROHIBITION ON UNLICENSED INTERNET GAMBLING.

    (a) Prohibition.--
            (1) In general.--It shall be unlawful for a person to 
        operate an Internet gambling facility without a license in good 
        standing issued to such person by a qualified State or tribal 
        agency under this title.
            (2) Exception.--Paragraph (1) shall not apply to the 
        operation of an Internet gambling facility by a person located 
        outside the United States in which bets or wagers are 
        initiated, received, or otherwise made by individuals located 
        outside the United States.
    (b) Criminal Penalties.--Any person who violates this section shall 
be fined under title 18, United States Code, imprisoned for not more 
than 5 years, or both.

SEC. 103. DEPARTMENT OF COMMERCE QUALIFICATION AND OVERSIGHT OF STATE 
              AGENCIES.

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

SEC. 104. LICENSING BY QUALIFIED STATE AGENCIES.

    (a) Internet Poker Facility Licensing Program.--
            (1) Authority to operate internet poker facility under 
        valid license.--Notwithstanding any other provision of law and 
        subject to the provisions of this title, a licensee may accept 
        a bet or wager with respect to Internet poker from an 
        individual located in the United States and may offer related 
        services so long as the license of the licensee issued under 
        this title remains in good standing.
            (2) Significant vendors.--If a person seeks a certificate 
        of suitability from a qualified State agency to provide 
        services to a licensee or applicant as a significant vendor 
        with respect to an Internet poker facility, such person shall 
        not be required to obtain a license under this title to provide 
        such services with respect to that Internet poker facility.
            (3) Limitations imposed by states and indian tribes.--
                    (A) Action by a state.--No licensee may engage, 
                under any license issued under this title, in the 
                operation of an Internet poker facility that knowingly 
                accepts bets or wagers initiated by persons who reside 
                in any State which provides notice that it will limit 
                such bets or wagers, if the Governor or other chief 
                executive officer of such State informs the Secretary 
                of such limitation, in a manner which clearly 
                identifies the nature and extent of such limitation.
                    (B) Changes to state limitations.--The 
                establishment, repeal, or amendment by a State of any 
                limitation described in subparagraph (A) shall apply, 
                for purposes of this title, beginning on the day that 
                occurs after the end of the 60-day period beginning on 
                the later of--
                            (i) the date a notice of such 
                        establishment, repeal, or amendment is provided 
                        by the Governor or other chief executive 
                        officer of such State in writing to the 
                        Secretary; or
                            (ii) the effective date of such 
                        establishment, repeal, or amendment.
                    (C) Application of state action to tribal lands of 
                indian tribes.--Any State limitation described in 
                subparagraph (A) shall not apply to the acceptance by a 
                licensee of bets or wagers from persons located within 
                the tribal lands of an Indian tribe that--
                            (i) has itself opted out pursuant to 
                        subsection (b) (in which case the tribal opt-
                        out exercise under such subsection shall 
                        apply); or
                            (ii) would be entitled pursuant to other 
                        applicable law to permit such bets or wagers to 
                        be initiated and received within its territory 
                        without use of the Internet.
                    (D) Actions by an indian tribe.--No Internet 
                gambling licensee knowingly may accept a bet or wager 
                from a person located in the tribal lands of any Indian 
                tribe which limits such gambling activities or other 
                contests if the principal chief or other chief 
                executive officer of such Indian tribe informs the 
                Secretary of such limitation, in a manner which clearly 
                identifies the nature and extent of such limitation.
                    (E) Changes to state limitations.--The 
                establishment, repeal, or amendment by any Indian tribe 
                of any limitation referred to in subparagraph (D) shall 
                apply, for purposes of this title, beginning on the day 
                that occurs after the end of the 60-day period 
                beginning on the later of--
                            (i) the date a notice of such 
                        establishment, repeal, or amendment is provided 
                        by the principal chief or other chief executive 
                        officer of such Indian tribe in writing to the 
                        Secretary; or
                            (ii) the effective date of such 
                        establishment, repeal, or amendment.
                    (F) Notification and enforcement of state and tribe 
                limitations.--
                            (i) Notification and measures to ensure 
                        compliance.--The Secretary shall notify all 
                        licensees and applicants of all States and 
                        Indian tribes that have provided notice 
                        pursuant to subparagraph (A)(ii) of (C)(ii), as 
                        the case may be, promptly upon receipt of such 
                        notice and in no event fewer than 30 days 
                        before the effective date of such notice. The 
                        Secretary shall take effective measures to 
                        ensure that any licensee under this subchapter, 
                        as a condition of the license, complies with 
                        any limitation or prohibition imposed by any 
                        State or Indian tribe to which the licensee is 
                        subject.
                            (ii) Violations.--A violation of 
                        subparagraph (A) of (C) shall be a violation of 
                        this title enforceable under section 105.
    (b) Application for License.--
            (1) Application.--Except as provided in subparagraph (B), a 
        person seeking to operate an Internet poker facility under this 
        title shall submit to the qualified State agency of the State 
        where servers for such Internet poker facility are located an 
        application for a license at such time, in such form, and in 
        such manner as the qualified State agency considers 
        appropriate, including at a minimum the following:
                    (A) Complete financial information about the 
                applicant.
                    (B) Documentation showing the organization of the 
                applicant and all related businesses and affiliates.
                    (C) The criminal and financial history of--
                            (i) the applicant;
                            (ii) each of the senior executives and 
                        directors of the applicant;
                            (iii) any other person who is in control of 
                        the applicant; and
                            (iv) such other persons as the qualified 
                        State agency considers appropriate.
                    (D) Such other information as may be necessary for 
                the suitability analysis required under subsection (c).
                    (E) Disclosure of all other applications for 
                licenses previously or simultaneously submitted under 
                this paragraph to other qualified State agencies and 
                whether those applications are pending, were granted, 
                or were denied.
                    (F) A detailed description of the applicant's plan 
                for complying with all applicable requirements and 
                regulations prescribed pursuant to this title.
                    (G) A certification by the applicant that the 
                applicant agrees to be subject to--
                            (i) jurisdiction in United States Federal 
                        courts and in the courts of the State or Indian 
                        tribe of the qualified State agency to which 
                        the applicant has applied; and
                            (ii) all applicable provisions of United 
                        States law.
            (2) Notice to the secretary.--Each qualified State agency 
        shall report all applicants for licensure and the dispositions 
        of their applications to the Secretary promptly upon 
        disposition of each application or in such intervals as the 
        Secretary may prescribe. Such report shall include such 
        information or documentation as the Secretary may require.
    (c) Standards for License Issuance; Suitability Qualifications and 
Disqualification Standards.--
            (1) Suitability for licensing.--No applicant shall be 
        eligible to obtain a license under this title unless a 
        qualified State agency, with whom the applicant has filed an 
        application for a license, has determined, upon completion of a 
        background check and investigation, that the applicant, any 
        person deemed to be in control of the applicant, all 
        significant vendors of the applicant, and any other person 
        determined by the qualified State agency as having significant 
        influence on the applicant are suitable for licensing or for 
        receiving a certificate of suitability as applicable.
            (2) Investigation.--
                    (A) Determination of suitability.--Prior to issuing 
                a license under this section, a qualified State agency 
                shall conduct the investigation and analysis described 
                in paragraph (1) to determine whether the applicant or 
                person--
                            (i) is a person of good character, honesty, 
                        and integrity;
                            (ii) is a person whose prior activities, 
                        criminal record, if any, reputation, habits, 
                        and associations do not--
                                    (I) pose a threat to the public 
                                interest or to the effective regulation 
                                and control of Internet poker 
                                facilities; or
                                    (II) create or enhance the dangers 
                                of unsuitable, unfair, or illegal 
                                practices, methods, and activities in 
                                the conduct of Internet poker 
                                facilities or the carrying on of the 
                                business and financial arrangements 
                                incidental to such facilities;
                            (iii) is capable of and likely to conduct 
                        the activities for which the applicant is 
                        licensed or receives a certificate of 
                        suitability in accordance with the provisions 
                        of this title, any regulations prescribed under 
                        this title, and all other applicable laws;
                            (iv) with respect to applicants, has or 
                        guarantees acquisition of adequate business 
                        competence and experience in the operation of 
                        casino gaming facilities, Internet poker 
                        facilities, or Internet gambling facilities;
                            (v) with respect to applicants, has or will 
                        obtain sufficient financing for the nature of 
                        the proposed operation and from a suitable 
                        source; and
                            (vi) has disclosed to the qualified State 
                        agency all known affiliations or relationships, 
                        whether direct or indirect.
                    (B) Unsuitable.--An applicant or any other person 
                may not be determined to be suitable under this 
                subsection if the applicant or such person--
                            (i) has failed to provide information and 
                        documentation material to a determination of 
                        suitability for licensing under paragraph (1);
                            (ii) has supplied information which is 
                        untrue or misleading as to a material fact 
                        pertaining to any such determination;
                            (iii) has been convicted of an offense that 
                        is punishable by imprisonment of more than 1 
                        year;
                            (iv) is delinquent in the payment of any 
                        applicable Federal or State tax, tax penalty, 
                        addition to tax, or interest owed to a 
                        jurisdiction in which the applicant or person 
                        operates or does business, unless such payment 
                        has been extended or is the subject of a 
                        pending judicial or administrative dispute;
                            (v) has not certified in writing that the 
                        person submits to personal jurisdiction in the 
                        United States; or
                            (vi) fails to comply with such other 
                        standard as the applicable qualified State 
                        agency considers appropriate.
                    (C) Consideration of previous operation of internet 
                gambling facility.--In carrying out a suitability 
                analysis of a person under this subsection, a qualified 
                State agency shall consider whether such person 
                operated an Internet gambling facility before the date 
                of the enactment of this Act and the scope of such 
                person's activities with respect to such operation.
            (3) Ongoing requirement.--A licensee (and any other person 
        who is required to be determined to be suitable for licensing 
        in connection with such licensee) shall meet the standards 
        necessary to be suitable for licensing or to receive a 
        certificate of suitability, as the case may be, throughout the 
        term of the license.
            (4) Certificate of suitability for significant vendors.--
                    (A) In general.--If a qualifying body determines 
                under paragraph (1) that a significant vendor of an 
                applicant is suitable under such paragraph, the 
                qualifying body shall issue a certificate to such 
                vendor that certifies the suitability of such vendor.
                    (B) Revocation of certificate.--A qualified State 
                agency that issues a certificate to a significant 
                vendor under subparagraph (A) shall revoke the 
                certificate if at any time the significant vendor no 
                longer meets the standards necessary for a 
                determination of suitability.
                    (D) Certificates issued by other qualified state 
                agency.--A qualified State agency may, but need not, 
                accept a certificate issued to a significant vendor by 
                another qualified State agency as evidence of the 
                suitability of the significant vendor.
            (5) Other vendors.--
                    (A) Notice.--A licensee shall promptly notify the 
                qualified State agency that issued the license to the 
                licensee of all persons that are not significant 
                vendors that--
                            (i) direct, provide, or solicit customers 
                        to or for the licensee's Internet poker 
                        facility, or materially assist in any of those 
                        tasks, in return for a commission or other fee;
                            (ii) hold themselves out to the public as 
                        offering bets or wagers on licensee's behalf;
                            (iii) offer bets or wagers under their own 
                        names or brands but using and relying on 
                        licensee's Internet poker facilities;
                            (iv) license trademarks, trade names, 
                        service marks, or other similar intellectual 
                        property to the licensee; or
                            (v) own a substantial interest in or 
                        control a person described in clause (i), (ii), 
                        (iii), or (iv).
                    (B) Suitability of other vendors and persons.--A 
                qualified State agency that reviews an application of 
                an applicant for a license or issues a license to a 
                licensee may, at the sole discretion of the qualified 
                State agency and on a case-by-case basis, require as a 
                condition of such license that a person meet 
                suitability requirements under paragraph (1) if the 
                person--
                            (i) is described in subparagraph (A) with 
                        respect to the applicant or licensee;
                            (ii) provides services to an applicant or 
                        licensee and the qualified State agency 
                        determines that with respect to such services, 
                        there is a substantial risk of circumvention of 
                        the suitability requirements applicable to 
                        significant vendors; or
                            (iii) is associated with the applicant or 
                        licensee or one of the significant vendors of 
                        the applicant or licensee and the qualified 
                        State agency determines such person may pose a 
                        threat to the integrity of Internet poker 
                        facilities operated by the applicant or 
                        licensee.
                    (C) Information.--A qualified State agency may 
                require such information from an applicant, licensee, 
                significant vendor or other person identified in this 
                paragraph as the qualified State agency considers 
                necessary to carry out this paragraph.
            (6) Enforcement actions.--
                    (A) In general.--If the Secretary or the qualified 
                State agency that issued a license to a licensee finds 
                that the licensee, or any other person that is subject 
                to a required determination of suitability in 
                connection with such licensee, fails to meet the 
                suitability requirements of this subsection at any time 
                during the tenure of the license, the Secretary or the 
                qualified State agency may take action to protect the 
                public interest, including, if the Secretary or 
                qualified State agency considers necessary, the 
                suspension or termination of the license.
                    (B) Imposition of conditions including removal of 
                parties.--Notwithstanding a determination under 
                subparagraph (A), the Secretary or the qualified State 
                agency that issued a license to a licensee may allow 
                the licensee to continue engaging in licensed 
                activities by imposing conditions on the person to 
                which subparagraph (A) is applicable under penalty of 
                revocation or suspension of a license or certificate of 
                suitability, including--
                            (i) the identification of any person 
                        determined to be unsuitable; and
                            (ii) the establishment of appropriate 
                        safeguards to ensure such person is excluded 
                        from any management or involvement in operation 
                        of the licensed activities.
            (7) Administrative provisions.--
                    (A) Background check and investigation.--Each 
                qualified State agency shall establish standards and 
                procedures for conducting background checks and 
                investigations for purposes of this subsection.
                    (B) Privilege.--Any written or oral statement made 
                in the course of an official proceeding of the 
                Secretary or a qualified State agency, by any member 
                thereof, or any witness testifying under oath which is 
                relevant to the purpose of the proceeding and relates 
                to the review of an application for a license under 
                this title, is privileged and shall not give rise to 
                liability for defamation or relief in any civil action.
                    (C) Additional privilege.--Notwithstanding section 
                552 of title 5, United States Code, or any other 
                Federal, State, or tribal law to the contrary, any 
                communication or document of an applicant, licensee, 
                significant vendor, or affiliate thereof, which is made 
                or transmitted pursuant to this title to the Secretary 
                or a qualified State agency or any of their agents or 
                employees, except information that is already public, 
                shall be privileged and shall not be disclosed by the 
                Secretary or the qualified State agency without the 
                prior written consent of the applicant, licensee, 
                significant vendor, or affiliate thereof (as 
                applicable), or pursuant to a lawful court order, grand 
                jury subpoena, or similar procedure. To the extent 
                practicable, the Secretary or qualified State agency 
                shall provide timely notice of the proceedings to the 
                applicant, licensee, significant vendor, or affiliate 
                thereof (as applicable).
                    (D) Preservation of privilege recognized under 
                other provisions of law.--Any privilege recognized 
                under any other applicable provision of Federal, State, 
                or tribal law, including attorney-client, physician-
                patient, and accountant-client privileges, shall not be 
                waived or lost because a document or communication 
                otherwise protected by the privilege is disclosed to 
                the Secretary or a qualified State agency.
                    (E) Confidentiality.--Any communication or 
                document, except information that is already public, 
                shall be treated as confidential and may not be 
                disclosed, in whole or part, by the Secretary or a 
                qualified State agency without a lawful court order or 
                as otherwise expressly required by law, if the 
                communication or document is--
                            (i) required by the Secretary or qualified 
                        State agency to be disclosed by the applicant, 
                        licensee, or significant vendor, including 
                        applications, financial or earnings 
                        information, and criminal records, whether of 
                        the applicant or licensee or of any affiliate, 
                        employee, officer, director or significant 
                        vendor thereof, or of any other third party; or
                            (ii) prepared or obtained by an agent or 
                        employee of the Secretary or qualified State 
                        agency that contains information described in 
                        clause (i).
    (d) Additional Requirements for a License.--In order to obtain a 
license under this section, an Internet poker facility shall 
demonstrate to the qualified State agency that such facility maintains 
appropriate safeguards and mechanisms, in accordance with standards 
established by the qualified State agency, including appropriate 
safeguards and mechanism to--
            (1) ensure, to a reasonable degree of certainty, that the 
        individual placing a bet or wager is not less than 21 years of 
        age;
            (2) ensure, to a reasonable degree of certainty, that the 
        individual placing a bet or wager is physically located in a 
        jurisdiction that has not prohibited such bets or wagers at the 
        time the bet or wager is placed;
            (3) ensure, to a reasonable degree of certainty, that all 
        taxes relating to Internet poker from persons engaged in bets 
        or wagers relating to such Internet poker are collected or 
        reported, as required by law, at the time of any payment of 
        proceeds of such bets or wagers;
            (4) ensure that all taxes relating to the operation of an 
        Internet poker facility from any licensee are collected and 
        disbursed as required by law and that adequate records to 
        enable later audit or verification are maintained;
            (5) prevent, to a reasonable degree of certainty, fraud, 
        money laundering, and terrorist financing;
            (6) ensure, to a reasonable degree of certainty, compliance 
        with the requirements of section 106;
            (7) protect, to a reasonable degree of certainty, the 
        privacy and online security of any person engaged in bets or 
        wagers with the licensee's Internet poker facility;
            (8) ensure that any user fee required under subsection (e) 
        is paid to the qualified State agency;
            (9) ensure, to a reasonable degree of certainty, that 
        Internet poker games are fair and honest, and to prevent, to a 
        reasonable degree of certainty, cheating, including collusion, 
        and use of cheating devices, including use of software programs 
        (sometimes referred to as ``bots'') that make bets or wagers 
        according to algorithms; and
            (10) such other mechanisms and safeguards as the qualified 
        State agency may establish.
    (e) Fees for Administrative Expenses.--
            (1) User fees.--
                    (A) In general.--The cost of administering this 
                title with respect to each applicant, licensee, and 
                significant vendor, including the cost of any review or 
                examination of a licensee or its significant vendors to 
                ensure compliance with the terms of the license and 
                this title, shall be assessed by the qualified State 
                agency receiving an application or issuing a license 
                against the applicant, licensee, or significant vendor, 
                as the case may be, by written notice in an amount that 
                the qualified State agency determines is necessary to--
                            (i) meet the qualified State agency's 
                        expenses in carrying out such administration, 
                        review, or examination; and
                            (ii) to cover the qualified State agency's 
                        share of the amount determined by the Secretary 
                        under paragraph (3) to cover the expenses 
                        incurred by the Secretary in carrying out the 
                        provisions of this title.
                    (B) Expenses for review or examination.--Expenses 
                that are attributable to review or examination of a 
                particular applicant, licensee, or significant vendor 
                shall be assessed under subparagraph (A) against that 
                applicant, licensee, or significant vendor.
                    (C) Expenses for general administration.--Expenses 
                for general administration shall be assessed against 
                all licensees equally.
                    (D) Disposition of user fees.--Amounts assessed by 
                a qualified State agency as user fees under this 
                paragraph shall--
                            (i) be remitted to the Secretary, in the 
                        amount of that State's share as determined 
                        under paragraph (3) for deposit in the Treasury 
                        in accordance with subparagraph (B) of such 
                        paragraph; and
                            (ii)(I) be available to the qualified State 
                        agency to cover expenses incurred by the 
                        qualified State agency in carrying out the 
                        provisions of this title; and
                            (II) not be construed to be Government 
                        funds or appropriated monies, or subject to 
                        apportionment for the purposes of any other 
                        provision of law.
                    (F) Collection.--
                            (i) Referral.--If a licensee or significant 
                        vendor fails to pay a user fee to a qualified 
                        State agency under this paragraph after the 
                        assessment of the fee has become final--
                                    (I) the qualified State agency may 
                                recover the amount assessed by action 
                                in a court of the State or Indian tribe 
                                of the qualified State agency or in the 
                                appropriate United States district 
                                court, along with any costs of 
                                collection and attorney fees; and
                                    (II) such failure may be grounds 
                                for denial of an application for a 
                                license under this title or revocation 
                                of a license or certificate of 
                                suitability under this title.
                            (ii) Assessment reviewable.--In any civil 
                        action under clause (i), a court may review the 
                        validity and adjust the amount of the user 
                        fees.
                    (G) User fees of significant vendors may be paid by 
                applicants and licensees.--A user fee assessed against 
                a significant vendor may be paid by an applicant or 
                licensee on behalf of the significant vendor.
            (2) Direct and exclusive obligation of licensee.--With 
        respect to a licensee, a user fee shall be the direct and 
        exclusive obligation of the licensee and may not be deducted 
        from amounts available as deposits to any person placing a bet 
        or wager with the licensee.
            (3) User fees established by secretary.--
                    (A) In general.--The Secretary shall determine the 
                funding requirements necessary to meet the Secretary's 
                cost of administering this title and notify each 
                qualified State agency of its proportional share to be 
                collected by such agency under paragraph (1)(A).
                    (B) Disposition of user fees.--Amounts remitted to 
                the Secretary under paragraph (1)(D)(i) shall--
                            (i) be deposited into a separate account in 
                        the Treasury to be known as the ``Internet 
                        Poker Oversight Fund''; and
                            (ii) be available to the Secretary in such 
                        amounts, subject to appropriations, to cover 
                        expenses incurred by the Secretary in carrying 
                        out the provisions of this title.
    (f) Approval of License.--
            (1) In general.--A qualified State agency may issue 
        licenses under this title for the operation of an Internet 
        poker facility to any applicant that--
                    (A) owns or controls a company that operates a 
                casino gaming facility, qualified race track, or 
                qualified card room and owned or controlled such 
                facility, race track, or card room on the date that is 
                10 days before the date of the enactment of this Act;
                    (B) for the duration of the 5-year period ending on 
                the date on which the applicant submits an application 
                under subsection (b)(1), owned or controlled a casino 
                gaming facility, qualified race track, or qualified 
                card room;
                    (C) is owned or controlled by a person who--
                            (i) owns or controls a company that 
                        operates a casino gaming facility, qualified 
                        race track, or qualified card room and owned or 
                        controlled such facility, race track, or card 
                        room on the date that is 10 days before the 
                        date of the enactment of this Act; or
                            (ii) for the duration of the 5-year period 
                        ending on the date on which the applicant 
                        submits an application under subsection (b)(1), 
                        owned or controlled a casino gaming facility, 
                        qualified race track, or qualified card room;
                    (D) for the duration of the 5-year period ending on 
                the date on which the applicant submits an application 
                under subsection (b)(1), under license issued by a 
                State or Indian tribe manufactured and supplied to 
                casino gaming facilities with--
                            (i) not fewer than 500 slot machines; or
                            (ii) qualified mobile gaming systems; and
                    (E) meets other criteria established by the 
                Secretary or by the qualified State agency under this 
                title.
            (3) Expansion of licensees only if no risk to public.--
        Beginning on the date that is 2 years after the date of first 
        issuance specified in section 115(b), the Secretary may, by 
        rule, authorize the issuance of licenses to applicants other 
        than those described in paragraph (2) if the Secretary 
        determines, after providing the public with notice and an 
        opportunity to comment, that such authorization will not 
        significantly increase the risk that the standards described in 
        subsection (d) will not be satisfied by licensees.
            (4) Authority of secretary to revoke licenses.--
        Notwithstanding any certificate of suitability or license 
        issued by a qualified State agency, the Secretary may suspend 
        or revoke such certificate or license if the Secretary has 
        reason to believe that the recipient does not meet the 
        suitability requirements established under subsection (c) or, 
        as applicable, any other requirement imposed on a licensee 
        under this title. The Secretary may not overturn a decision by 
        a qualified State agency to deny or to terminate a license or 
        to deny or revoke a certificate of suitability.
            (5) Conflicts between qualified state agencies.--If a 
        qualified State agency denies a license, terminates a license, 
        denies a certificate of suitability, or revokes a certificate 
        of suitability to a person and within 12 months of such denial, 
        termination, or revocation another qualified State agency 
        grants such person a license or certificate of suitability, the 
        Secretary shall--
                    (A) commence a review of such license or 
                certificate of suitability; and
                    (B) not later than 90 days after such commencement, 
                determine whether to act under paragraph (4).
            (6) Control defined.--In this subsection, the term 
        ``control'' means, with respect to a person, the possession, 
        directly or indirectly, of the power to direct or influence the 
        direction of the management or policies of the person, whether 
        through the ownership of voting securities, through a 
        management, executive officer, or board position, by 
        shareholders or similar agreement, or otherwise.
    (g) Location of Remote Gaming Equipment.--A licensee shall maintain 
its remote gaming equipment within the territory of the United States 
throughout the term of its license. A qualified State agency may 
require applicants that seek a license from such qualified State agency 
to locate that equipment within the territory of the State or Indian 
tribe of the qualified State agency if the qualified State agency 
determines that such requirement will advance the regulatory interests 
of this title.
    (h) License Is a Privilege Not a Right.--A decision by a qualified 
State agency not to grant a person a license or certificate of 
suitability, or to terminate a license, or revoke a certificate of 
suitability, is not reviewable under Federal law or the law of any 
jurisdiction other than the jurisdiction of the qualified State agency. 
The State or Indian tribe of the jurisdiction of the qualified State 
agency may, but need not, provide an opportunity to appeal.
    (i) Term, Renewal, and Transfer of License.--
            (1) Term.--Any license issued under this title shall be 
        issued for a 5-year term beginning on the date of issuance. A 
        license may be renewed in accordance with requirements 
        prescribed by the qualified State agency that issued the 
        license under this title.
            (2) Transfer.--A transfer of a license, change of control 
        of a licensee, or change in significant vendor shall require 
        prior approval by the qualified State agency that issued the 
        license. The qualified State agency shall at a minimum ensure 
        the suitability requirements of subsection (c) continue to be 
        satisfied before approving any such transfer or change.
    (j) Administrative Provisions.--
            (1) Determination of internet poker.--
                    (A) Initial determination by qualified state 
                agency.--A determination of whether a game, hand, 
                tournament, or other contest of a licensee is Internet 
                poker shall be made in the first instance by the 
                qualified State agency that issued the license to such 
                licensee under this title.
                    (B) Challenges.--
                            (i) Challenge made with secretary.--A 
                        licensee or qualified State agency may file a 
                        challenge with the Secretary regarding any 
                        determination of the State agency under 
                        subparagraph (A) that a game, hand, tournament, 
                        or other contest of another licensee is 
                        Internet poker.
                            (ii) Determination made by secretary within 
                        30 days.--If a challenge is made under clause 
                        (i), the Secretary shall make a determination 
                        of whether the game, hand, tournament, or other 
                        contest is Internet poker not later than 30 
                        days after the date on which the challenge is 
                        made.
                            (iii) Operation until determination.--A 
                        licensee that offers a game, hand, tournament, 
                        or other contest that is challenged under 
                        clause (i) may continue to offer such game, 
                        hand, tournament, or other contest until the 
                        Secretary makes a determination under clause 
                        (iii).
                    (C) Appeals.--Not later than 30 days after the date 
                on which the Secretary makes a determination under 
                subparagraph (B)(iii), a licensee or a qualified State 
                agency may appeal such determination to the United 
                States District Court for the District of Columbia. 
                Such court shall set aside the Secretary's 
                determination if the court determines that the 
                Secretary's determination was--
                            (i) arbitrary, capricious, an abuse of 
                        discretion, or otherwise not consistent with 
                        law; or
                            (ii) without observance of procedure 
                        required by law.
            (2) Challenges under state law.--Except as provided in 
        paragraph (1) and unless otherwise specifically provided in 
        this title, actions taken by a qualified State agency may be 
        challenged by applicants and licensees only as permitted under 
        the law of the State or Indian tribe in which the qualified 
        State agency is located.
            (3) Summons.--
                    (A) In general.--The Secretary may issue a summons 
                with respect to an applicant or licensee necessary to 
                carry out the provisions of this title.
                    (B) Production at designated site.--A summons 
                issued by the Secretary pursuant to this paragraph may 
                require that books, papers, records, or other data 
                stored or maintained at any place be produced at any--
                            (i) business location of a licensee or 
                        applicant for a license;
                            (ii) designated location in the State or 
                        Indian lands of the applicable qualified State 
                        agency; or
                            (iii) designated location in the District 
                        of Columbia.
                    (C) No liability for expenses.--The Secretary shall 
                not be liable for any expense incurred in connection 
                with the production of books, papers, records, or other 
                data under this paragraph.
                    (D) Service of summons.--Service of a summons 
                issued under this subsection may be by registered mail 
                or in such other manner calculated to give actual 
                notice as determined by the Secretary.
                    (E) Authorization to invoke aid of courts.--The 
                Secretary may invoke the aid of any court of the United 
                States to compel compliance with the summons within the 
                jurisdiction of which--
                            (i) the investigation which gave rise to 
                        the summons or the examination is being or has 
                        been carried on;
                            (ii) the person summoned is an inhabitant; 
                        or
                            (iii) the person summoned carries on 
                        business or may be found.
                    (F) Power of courts to compel appearance.--The 
                court may issue an order requiring the person summoned 
                to appear before the Secretary--
                            (i) to produce books, papers, records, and 
                        other data;
                            (ii) to give testimony as may be necessary 
                        to explain how such material was compiled and 
                        maintained;
                            (iii) to allow the Secretary to examine the 
                        business of a licensee; and
                            (iv) to pay the costs of the proceeding.
                    (G) Contumacy or refusal.--Any failure to obey the 
                order of the court under this paragraph may be punished 
                by the court as a contempt thereof. All process in any 
                case under this subsection may be served in any 
                judicial district in which such person may be found.

SEC. 105. ENFORCEMENT.

    (a) Disciplinary Action.--
            (1) In general.--A licensee may be subject to disciplinary 
        action, including suspension or revocation of its license, by a 
        qualified State agency that issued a license to the licensee or 
        by the Secretary if the licensee fails to comply with any 
        provision of this title, any regulation prescribed thereunder, 
        or any other applicable provision of State or tribal law.
            (2) Initiating agency.--Only the Secretary or the qualified 
        State agency which granted the license may initiate 
        disciplinary action under this title.
            (3) Savings provision.--Nothing in this subsection shall be 
        construed to prohibit a law enforcement authority or regulatory 
        body that has authority over a licensee or an affiliated 
        person, independent from this title, from taking action under 
        the law of that law enforcement authority or regulatory body.
            (4) Disciplinary procedures.--
                    (A) In general.--A qualified State agency shall 
                commence disciplinary action under this subsection 
                against a licensee upon service of a formal written 
                complaint upon the licensee, with a copy forwarded to 
                the Secretary, that sets forth the grounds for the 
                disciplinary action and the proposed penalty that is 
                being sought, which may include any or all of the 
                imposition of a fine as provided pursuant to subsection 
                (m)(1) or limitation, condition, suspension or 
                revocation of the license.
                    (B) In accordance with law of jurisdiction of 
                qualified state agency.--The disciplinary process shall 
                proceed according to the law of the jurisdiction of the 
                applicable qualified State agency.
            (5) Finality of action and appeals.--
                    (A) Finality.--Any disciplinary action shall be 
                treated as a final action.
                    (B) Action by qualified state agencies.--A licensee 
                aggrieved by disciplinary action by a qualified State 
                agency may file an appeal in the jurisdiction where the 
                qualified State agency taking such action is located 
                only to the extent permitted by the law of such 
                jurisdiction.
                    (C) Action by secretary.--A licensee aggrieved by 
                disciplinary action by the Secretary may file an appeal 
                in the United States District Court for the District of 
                Columbia. Such court shall set aside the action if it 
                determines that the action was--
                            (i) arbitrary, capricious, an abuse of 
                        discretion, or otherwise not consistent with 
                        law; or
                            (ii) without observance of procedure 
                        required by law.
            (6) Pending appeal.--During the period in which a 
        suspension or revocation of an existing license is being 
        challenged through a pending judicial proceeding, the court 
        handling the challenge may allow the licensee to continue 
        offering bets and wagers in full compliance with the terms of 
        its existing license and any other conditions the court 
        considers necessary, if the court determines that--
                    (A) the appellant has a reasonable likelihood of 
                success on the merits; and
                    (B) allowing the appellant to continue offering 
                bets and wagers while the appeal is pending will not 
                threaten the public interest.
            (7) Return of customer funds.--If a licensee's license is 
        revoked and no appeal pursuant to paragraph (5) is pending, the 
        licensee shall--
                    (A) return all customer funds in an orderly manner 
                not later than 30 days after the date of the revocation 
                of the license; or
                    (B) place in escrow those sums return of which to 
                United States customers is not feasible due to change 
                in customer address, bank details, or similar 
                difficulty, in an account with a financial institution 
                in the United States for safekeeping and orderly 
                disposition by the Secretary.
            (8) Referral to attorney general.--If, in the course of 
        carrying out the provisions of this title, the Secretary or a 
        qualified State agency finds a substantial basis to believe 
        that a person has violated section 103, the Secretary or 
        qualified State agency shall refer such matter to the Attorney 
        General.
    (b) Civil Money Penalties.--
            (1) In general.--
                    (A) Penalties assessed by qualified state 
                agencies.--A qualified State agency may assess upon any 
                licensee or other person subject to the requirements of 
                this title for each violation of this title or any 
                regulation prescribed or order issued under this title, 
                a civil penalty of not more than the greater of--
                            (i) the amount involved in the violation, 
                        if any;
                            (ii) $250,000 for an individual and 
                        $750,000 for a corporation; or
                            (iii) such other amount as provided under 
                        the applicable State or tribal law of the 
                        qualified State agency.
                    (B) Penalties assessed by secretary.--The Secretary 
                may assess upon any licensee or other person subject to 
                the requirements of this title for each violation of 
                this title or any regulation prescribed or order issued 
                under this title, a civil penalty of not more than the 
                greater of--
                            (i) the amount involved in the violation, 
                        if any; or
                            (ii) $250,000 for an individual and 
                        $750,000 for a corporation.
                    (C) Not cumulative.--
                            (i) In general.--The penalties authorized 
                        under subparagraphs (A) and (B) shall not be 
                        cumulative and only one such penalty may be 
                        assessed per violation.
                            (ii) Construction.--Clause (i) shall not be 
                        construed to limit the authority of a 
                        qualifying body or the Secretary, as the case 
                        may be, to pursue a civil penalty for each 
                        violation of a related series of violations.
                    (D) Failure to obtain a license.--Notwithstanding 
                any other provision of law, the Secretary may assess 
                upon a person that is required to obtain a license 
                under this title, but fails to obtain a license under 
                this title, a civil penalty of not more than the 
                greater of--
                            (i) the amount of bets or wagers taken by 
                        the person from players in the United States 
                        during the period that a license was needed but 
                        not held by the person; or
                            (ii) $1,000,000 per day that the person 
                        accepts bets or wagers from players in the 
                        United States during the period that a license 
                        was needed but not held by the person.
                    (E) Construction.--Nothing in this paragraph shall 
                be construed to affect the ability of a law enforcement 
                official to seek criminal penalties against a person.
            (2) Assessment.--
                    (A) Enforcement by qualified state agencies.--
                Qualified State agencies and such other entities as are 
                authorized by applicable State law shall enforce the 
                provisions of this title under the law of the 
                applicable State or Indian tribe, and penalties shall 
                be determined, reviewable, collectable, and disposed of 
                as provided under such law.
                    (B) Enforcement by secretary.--
                            (i) Written notice.--Any penalty imposed 
                        under paragraph (1)(B) shall be assessed and 
                        collected by the Secretary by written notice.
                            (ii) Finality of assessment.--If, with 
                        respect to any assessment under paragraph 
                        (1)(B), a hearing is not requested pursuant to 
                        clause (v) within the period of time allowed 
                        under such clause, the assessment shall 
                        constitute a final agency order.
                            (iii) Authority to modify or remit 
                        penalty.--The Secretary may compromise, modify, 
                        or remit any penalty which the Secretary may 
                        assess or has already assessed under paragraph 
                        (1)(B).
                            (iv) Mitigating factors.--In determining 
                        the amount of any penalty imposed under 
                        paragraph (1)(B), the Secretary shall take into 
                        account the appropriateness of the penalty with 
                        respect to the following:
                                    (I) The size of the financial 
                                resources and the good faith of the 
                                person against whom the penalty is 
                                assessed.
                                    (II) The gravity of the violation.
                                    (III) The history of previous 
                                violations.
                                    (IV) Such other matters as justice 
                                may require.
                            (v) Hearing.--The person against whom any 
                        penalty is assessed under paragraph (1)(B) 
                        shall be afforded an agency hearing if such 
                        person submits a request for such hearing not 
                        later than 20 days after the date of the 
                        issuance of the notice of assessment.
                            (vi) Collection.--
                                    (I) Referral.--If any person fails 
                                to pay an assessment after any penalty 
                                assessed under this subparagraph has 
                                become final, the Secretary shall 
                                recover the amount assessed by action 
                                in the appropriate United States 
                                district court.
                                    (II) Scope of review.--In any civil 
                                action under subclause (I), the 
                                validity and appropriateness of the 
                                penalty shall be subject to review for 
                                abuse of agency discretion.
                            (vii) Disbursement.--All penalties 
                        collected under authority of paragraph (1)(B) 
                        shall be deposited into the Treasury of the 
                        United States.
            (3) Condition for licensure.--Payment by a licensee of any 
        civil penalty assessed under this subsection that has become 
        final shall be a requirement for the retention of its license.

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

    (a) Regulations Required.--Each qualified State agency shall, 
before issuing any licenses under this title, establish requirements 
for the development of a Compulsive Gaming, Responsible Gaming, and 
Self-Exclusion Program that each licensee of that qualified State 
agency shall implement as a condition of licensure. Such requirements 
shall also provide for the establishment of a program to alert the 
public to the existence, consequences, and availability of the self-
exclusion list established under subsection (c).
    (b) Minimum Requirements.--At a minimum, each qualified State 
agency shall require that licensees--
            (1) provide informational materials written in plain 
        language about responsible gaming, including information about 
        the self-exclusion list established under subsection (c) and 
        how a player may request placement on the list, each time a 
        player signs in to make a bet or wager, which materials shall 
        be provided via a prominently displayed hyperlink or comparable 
        mechanism;
            (2) provide informational materials about responsible 
        gaming to any player that requests such materials;
            (3) make continuously available individualized responsible 
        gaming options that any customer may choose, including allowing 
        customers to self-limit their access to the issuance of credit, 
        check cashing, or direct mail marketing by the licensee, in 
        each case as and to the extent that the qualified State agency 
        may consider appropriate;
            (4) ensure to a reasonable degree of certainty that persons 
        on the list of self-excluded persons established pursuant to 
        subsection (c) are prevented from initiating any bets or wagers 
        within the scope of this title; and
            (5) ensure that the information required under this 
        subsection is clearly and prominently made available by the 
        licensee in each language in which services of the Internet 
        poker facility of the licensee are offered.
    (c) List of Persons Self-Excluded.--
            (1) Establishment.--
                    (A) Lists maintained by qualified state agencies.--
                Each qualified State agency shall establish and 
                maintain a list of persons self-excluded from playing 
                Internet poker through Internet poker facilities 
                licensed by the qualified State agency. Each week, each 
                qualified State agency shall submit to the Secretary a 
                current copy of the list.
                    (B) Master list maintained by secretary.--The 
                Secretary shall establish and maintain a master list of 
                all persons self-excluded from playing Internet poker 
                through Internet poker facilities licensed under this 
                title. Such list shall consist of all persons submitted 
                under subparagraph (A). The Secretary shall make the 
                master list available to all qualified State agencies 
                and licensees.
                    (C) Placement request.--Any person may request 
                placement on the list of self-excluded persons by--
                            (i) acknowledging in a manner to be 
                        established by each qualified State agency with 
                        respect to its licensees that the person wishes 
                        to be denied gaming privileges within the scope 
                        of this title; and
                            (ii) agreeing that, during any period of 
                        voluntary exclusion, the person may not collect 
                        any winnings or recover any losses resulting 
                        from any gaming activity at any Internet 
                        gambling facility of a licensee.
            (2) Limitation on liability.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the United States, the Secretary, a qualified 
                State agency, the State or Indian tribe in which that 
                qualified State agency is located, an enforcement 
                agent, licensee, or any employee or agent thereof, 
                shall not be liable to any self-excluded person or to 
                any other party in any judicial or administrative 
                proceeding for any harm, monetary or otherwise, which 
                may arise as a result of--
                            (i) any failure to withhold gaming 
                        privileges from, or to restore gaming 
                        privileges to, a self-excluded person;
                            (ii) otherwise permitting a self-excluded 
                        person to engage in gaming activity while on 
                        the list of self-excluded persons; or
                            (iii) disclosure of information about 
                        individuals placed on the list of self-excluded 
                        persons.
                    (B) Licensees.--A licensee or employee or agent 
                thereof may be liable to a self-excluded person in a 
                judicial or administrative proceeding for a harm 
                described in subparagraph (A) to the extent provided 
                under the law of the State or Indian tribe of the 
                qualified State agency that issued the license.
                    (C) Rule of construction.--Nothing in this 
                paragraph shall be construed to prevent the Secretary 
                or a qualified State agency from assessing a regulatory 
                sanction against a licensee or person for failing to 
                comply with a provision of this section or a regulation 
                prescribed thereunder or for misuse of any list of 
                self-excluded persons for purposes not authorized under 
                this section.
            (3) Disclosure provisions.--
                    (A) In general.--Notwithstanding any other 
                provision of Federal, State, or tribal law, the list of 
                self-excluded persons shall not be open to public 
                inspection.
                    (B) Affiliate disclosure.--If necessary to 
                effectuate the self-exclusion purposes of this 
                subsection, any licensee may disclose the identities of 
                persons on the self-excluded list to any significant 
                vendor, service provider, or affiliated company to the 
                extent that the significant vendor, service provider, 
                or affiliated company maintains such information under 
                confidentiality provisions comparable to those in this 
                subsection.
    (d) Gaming by Prohibited Persons.--
            (1) Prohibition on benefitting from prohibited gaming 
        activity.--A person who is prohibited from gaming with a 
        licensee by law, or by order of the Secretary, a qualified 
        State agency, or any court of competent jurisdiction, including 
        any person on the self-exclusion list under subsection (c), 
        shall not collect, in any manner or proceeding, any winnings or 
        recover any losses arising as a result of any prohibited gaming 
        activity.
            (2) Forfeiture.--In addition to any other penalty provided 
        by law, any money or thing of value that has been obtained by, 
        or is owed to, any prohibited person by a licensee as a result 
        of bets or wagers made by a prohibited person after the 
        applicable prohibition has become effective shall be subject to 
        forfeiture by order of the Secretary or a qualified State 
        agency, following notice to the prohibited person and 
        opportunity to be heard.
            (3) Deposit of forfeited funds.--Any funds forfeited 
        pursuant to this subsection shall be deposited into the 
        Treasury of the United States, or, in the case of a forfeiture 
        to a qualified State agency, as provided by the applicable 
        State or tribal law.
    (e) Requirements With Respect to Child Support Delinquents.--
            (1) In general.--When it is made known to the Secretary or 
        a qualified State agency by a Federal or State court or a 
        competent State agency involved with the administration or 
        enforcement of a court-ordered child support payment that a 
        particular individual is delinquent with respect to court-
        ordered child support payments, the Secretary shall include 
        that individual on the list established under subsection (c).
            (2) Removal from list.--Individuals placed on the list 
        pursuant to paragraph (1) shall be removed from such list if 
        the court or agency that made such individual's delinquency 
        known to the Secretary notifies the Secretary that such 
        individual is no longer delinquent.
    (f) Administrative Provisions.--
            (1) Rule of construction.--No provision of this section 
        shall be construed as creating a legal duty in the Secretary, a 
        qualified State agency, a licensee, or any employee or agent 
        thereof to identify or to exclude compulsive players not on the 
        list of self-excluded persons.
            (2) No cause of action.--The Secretary, a qualified State 
        agency, a licensee, and any employee or agent thereof, shall 
        not be liable to any person in any proceeding for losses or 
        other damages of any kind arising out of that person's gaming 
        activities based on a claim that the person was a compulsive, 
        problem, or pathological player.

SEC. 107. PROHIBITIONS AND RESTRICTIONS.

    (a) Prohibition on Bets or Wagers on Sporting Events and Games 
Other Than Internet Poker.--
            (1) In general.--No provision of this title shall be 
        construed to authorize any licensee to accept a bet or wager 
        on--
                    (A) any game, event, or activity that is not 
                Internet poker; or
                    (B) any sporting event in violation of any 
                applicable provision of Federal or State law.
            (2) Construction.--Nothing in this title shall be construed 
        to repeal or to amend any provision of Federal or State law 
        prohibiting, restricting, or otherwise addressing bets or 
        wagers on sporting events, including provisions of Federal and 
        State law that permit participation in any fantasy or 
        simulation sports games.
    (b) Prohibition on the Use of Credit Cards for Internet Gambling.--
            (1) In general.--No licensee, no person operating on behalf 
        of a licensee, and no person accepting payment for or 
        settlement of a bet or wager who intends to transmit such 
        payment to a person licensee, may accept a bet or wager or 
        payment for or settlement of a bet or wager that is transmitted 
        or otherwise facilitated with a credit card (as defined in 
        section 5362(11) of title 31, United States Code).
            (2) Exception.--
                    (A) Clarification and scope.--For any person 
                licensed to take bets or wagers in accordance with the 
                Interstate Horseracing Act of 1978, the prohibition in 
                paragraph (1) shall only apply to those activities 
                conducted pursuant to a license under this title.
                    (B) Intrastate activities.--For any person involved 
                in legal, land-based or State- or tribal-regulated 
                intrastate gambling, the prohibition in paragraph (1) 
                shall only apply to those activities conducted pursuant 
                to a license under this title.
    (c) Public Internet Poker Parlors Prohibited.--
            (1) In general.--It shall be considered a violation of this 
        title to operate a place of public accommodation, club 
        (including a club or association limited to dues-paying members 
        or similar restricted groups), or similar establishment in 
        which computer terminals or similar access devices are made 
        available to be used principally for the purpose of accessing 
        Internet gambling facilities.
            (2) Criminal penalties.--Any person who violates subsection 
        (a) shall be fined under title 18, United States Code, 
        imprisoned for not more than 5 years, or both.
            (3) Construction.--Nothing in this title shall be construed 
        to authorize or otherwise to permit the operation of places of 
        public accommodation, clubs (including clubs or associations 
        limited to dues-paying members or similar restricted groups) 
        and similar establishments that permit access to Internet 
        gambling facilities.
            (4) Relation to state, local, and tribal law.--Places of 
        public accommodation, clubs, or similar establishments 
        described in subsection (c) shall be subject to all otherwise 
        applicable State, local, and tribal police, criminal, zoning, 
        and other regulatory powers which are not intended to be 
        limited in any way by this title.

SEC. 108. SAFE HARBOR.

    It shall be an affirmative defense to any prosecution or 
enforcement action under any provision of Federal, State, or tribal law 
that the activity forming the basis of such prosecution or enforcement 
action is authorized under and has been carried out lawfully in 
accordance with and under the terms of--
            (1) this title; or
            (2) the Interstate Horseracing Act of 1978 (15 U.S.C. 3001 
        et seq.).

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

    Subchapter IV of chapter 53 of title 31, United States Code, shall 
not apply to any bet or wager--
            (1) occurring pursuant to a license issued under this 
        title, subject to section 109; or
            (2) that is permissible under the Interstate Horseracing 
        Act of 1978 (15 U.S.C. 3001 et seq.).

SEC. 110. CHEATING AND OTHER FRAUD.

    (a) Cheating and Cheating Devices Prohibited.--
            (1) Cheating prohibited.--No person initiating, receiving, 
        or otherwise making a bet or wager with a licensee, or sending, 
        receiving, or inviting information assisting with a bet or 
        wager with a licensee shall knowingly violate, attempt to 
        violate, or assist another in violating the rules of play 
        established by the licensee for the purpose of obtaining 
        prohibited or unfair advantage in any game authorized under 
        this title.
            (2) Cheating devices.--Except as provided in paragraph (3), 
        no person initiating, receiving, or otherwise making a bet or 
        wager with a licensee, or sending, receiving, or inviting 
        information assisting with a bet or wager with a licensee shall 
        knowingly use, possess, or assist another in the use of, an 
        electronic, electrical, or mechanical device or software or 
        other program or tool which is designed, constructed, or 
        programmed specifically for use in obtaining an advantage in 
        any game authorized under this title, where such advantage is 
        prohibited or otherwise violates the rules of play established 
        by the licensee.
            (3) Permissible uses.--It shall not be a violation of this 
        subsection for a licensee, its agents, a qualified State 
        agency, or its agent to use or posses a device described in the 
        preceding sentence if--
                    (A) such use or possession is solely for purposes 
                of testing an Internet poker facility;
                    (B) such device is not used in live play involving 
                actual bets or wagers; and
                    (C) such device is registered with the Secretary 
                and the qualified State agency that issued the 
                applicable license.
            (4) Disclosure to public not required.--Notwithstanding any 
        other provision of law, a registration under paragraph (3)(C) 
        is not required to be made available to the public.
    (b) Additional Offense.--
            (1) In general.--Except as provided in paragraph (3), no 
        person initiating, receiving, or otherwise making a bet or 
        wager with a licensee, or sending, receiving, or inviting 
        information assisting with a bet or wager with a licensee, 
        shall knowingly use, possess, or assist another in the use of 
        any cheating device with intent to cheat or defraud any 
        licensee or other persons placing bets or wagers with such 
        licensee.
            (2) Bots.--A software program that makes bets or wagers 
        according to an algorithm shall constitute a type of cheating 
        device under this subsection.
            (3) Permissible uses.--It shall not be a violation of this 
        subsection for a licensee, its agents, a qualified State 
        agency, or its agent to use or posses a device described in 
        paragraph (1) or (2) if--
                    (A) such use or possession is solely for purposes 
                of testing an Internet poker facility;
                    (B) such device is not used in live play involving 
                actual bets or wagers; and
                    (C) such device is registered with the qualified 
                State agency that issued the applicable license.
            (4) Disclosure to public not required.--Notwithstanding any 
        other provision of law, a registration under paragraph (3)(C) 
        is not required to be made available to the public.
    (c) Permanent Injunction.--Upon conviction of a person for 
violation of this section, the court may enter a permanent injunction 
enjoining such person from initiating, receiving, or otherwise making 
bets or wagers or sending, receiving, or inviting information assisting 
in the placing of bets or wagers.
    (d) Criminal Penalty.--Whoever violates subsection (a) or (b) shall 
be fined under title 18, United States Code, or imprisoned for not more 
than 3 years, or both.
    (e) Reports.--
            (1) Recommended minimum standards.--Not later than 180 days 
        after the date of the enactment of this Act, the Secretary 
        shall submit to Congress a report containing the 
        recommendations of the Secretary on what minimum standards 
        qualifying bodies should adopt to carry out the requirements of 
        subsection (a).
            (2) Identification of threats to operation of internet 
        poker facilities.--Not later than 1 year after the date that 
        licenses are first issued under section 118(a), the Director of 
        the National Institute of Standards and Technology shall submit 
        to Congress a report that identifies threats to the integrity 
        of Internet poker facilities operated by licensees, including 
        identification of technologies that could be used to hack 
        computer networks, facilitate cheating, or otherwise place 
        consumers at risk of fraud or monetary loss.

SEC. 111. INAPPLICABILITY OF CERTAIN PROVISIONS TO INTERSTATE OFF-TRACK 
              WAGERS.

    The provisions of this title requiring a license and of subchapter 
IV of chapter 53 of title 31, United States Code, restricting 
acceptance of bets or wagers made by individuals located in the United 
States or requiring the blocking or other prevention of restricted 
transactions shall not apply with respect to the placing, transmitting, 
or receiving of interstate off-track wagers, as such term is defined in 
section 3 of the Interstate Horseracing Act of 1978 (15 U.S.C. 3002), 
that are permissible under such Act (15 U.S.C. 3001 et seq.), whether 
such off-track wager is made by telephone, Internet, satellite, or 
other wire or wireless communication facility, service, or medium.

SEC. 112. CONSTRUCTION AND RELATION TO OTHER LAW.

    (a) No Impact on Existing Lawful Games.--
            (1) In general.--If bets or wagers on certain games of 
        skill are not regarded as gambling under all provisions of 
        Federal, State, or tribal law in effect as of the date of 
        enactment of this Act--
                    (A) nothing in this title shall be construed to 
                require licensing under this title with respect to such 
                games; and
                    (B) fees paid to participate in such games shall 
                not be regarded as bets or wagers for purposes of this 
                title.
            (2) Reliance.--Nothing in this title may be relied on as 
        support for the legality or permissibility of games described 
        in paragraph (1) without compliance with the licensing and 
        other requirements of this title
    (b) No Effect on Existing Law.--Nothing in this section shall be 
construed to repeal, to amend, or to affect the interpretation of any 
provision of Federal or State law that was in effect before the date of 
the enactment of this Act that--
            (1) prohibits, restricts, or otherwise addresses bets or 
        wagers; or
            (2) prohibits fraud, unfair or deceptive acts or practices, 
        or other criminal activity.
    (c) Preemption of State and Tribal Laws.--
            (1) In general.--Except as otherwise expressly provided in 
        this title, the provisions of this title shall supersede any 
        provisions of the law of any State or Indian tribe expressly 
        relating to the permitting, prohibiting, licensing, or 
        regulating of Internet gambling facilities, including Internet 
        poker facilities, and the law of any State or Indian tribe 
        expressly relating to the permitting, prohibiting, licensing, 
        or regulation of gambling, except to the extent such State or 
        tribal laws are not inconsistent with this title.
            (2) Lotteries.--No provision of this title shall be 
        construed to have any effect on the rights, privileges, or 
        obligations of a State or tribal lottery as may be provided 
        under other applicable Federal, State, or tribal law.
            (3) Savings provision.--Nothing in this title may be 
        construed to limit the applicability or enforcement of any 
        State or tribal consumer protection law or preempt the 
        applicability of State or tribal trespass, contract, or tort 
        law.
    (d) Relation to Gambling Devices Transportation Act.--Equipment 
used by a licensee or significant vendor in the furtherance of licensed 
activities pursuant to this title (but not to the extent it is used for 
other purposes) shall not be considered a gambling device within the 
meaning of section 1 of the Act of January 2, 1951, prohibiting the 
transportation of gambling devices in interstate and foreign commerce 
(15 U.S.C. 1171).
    (e) Scope of Wire Act.--Section 1084 of title 18, United States 
Code, is amended by adding at the end the following new subsection:
    ``(f) This section, subchapter IV of chapter 53 of title 31, and 
any other provision of Federal law that establishes criminal penalties 
for any activity involved in placing, receiving, or otherwise 
transmitting a bet or wager, information assisting in the placing of 
bets or wagers, or a communication which entitles the recipient to 
receive money or credit as a result of bets or wagers, shall not apply 
to any activity that is permissible under the Interstate Horseracing 
Act of 1978 (15 U.S.C. 3001 et seq.) or title I of the Internet 
Gambling Prohibition, Poker Consumer Protection, and Strengthening 
UIGEA Act of 2011.''.
    (f) No Impact on Indian Gaming Regulatory Act.--
            (1) In general.--No provision of this title or decision or 
        action taken by an Indian tribe or State pursuant to this title 
        shall have any effect on non-Internet gaming activities within 
        the scope of section of the Indian Gaming Regulatory Act (25 
        U.S.C. 2710) or any successor provisions or on any Tribal- 
        State compacts or authorities pursuant thereto.
            (2) Tribal status or category not affected.--Tribal 
        operation of Internet poker facilities under this title shall 
        not be considered class II or class III gaming under such 
        section, and an Indian tribe's status, category, or class under 
        such section shall not impact its status or ability to offer 
        bets or wagers pursuant to this title.
            (3) New negotiations not required.--
                    (A) Indian tribes.--The fact that an Indian tribe 
                is operating under a license issued pursuant to this 
                title or that a tribal regulatory body is acting as a 
                qualified body pursuant to this title shall not require 
                an Indian tribe to negotiate a new agreement, 
                limitation, or other provision of tribal-State compact, 
                agreement, or other understanding with respect to 
                gaming or revenue-sharing, with regard to any bet or 
                wager occurring pursuant to a license issued under this 
                title.
                    (B) States.--The fact that a State has prohibited 
                or limited Internet bets or wagers under section 
                104(a)(3) or that a State regulatory body is acting as 
                a qualified body pursuant to this title shall not 
                require the State to negotiate a new agreement, 
                limitation, or other provision of tribal-State compact, 
                agreement, or other understanding with respect to 
                gaming or revenue-sharing, with regard to any bet or 
                wager occurring pursuant to a license issued under this 
                title.

SEC. 113. REGULATIONS.

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

SEC. 114. ANNUAL REPORTS.

    (a) Licensing and Regulation of Internet Poker Facilities.--Not 
later than 1 year after the date that licenses first issue under this 
title and annually thereafter, the Secretary shall transmit to Congress 
a report on the licensing and regulation of Internet poker facilities 
under this title, including--
            (1) the amount of fees collected under section 104(e) and, 
        in cooperation with the Secretary of Treasury, an estimate of 
        the amount of income tax revenue that is attributable to the 
        operation of Internet poker facilities during the period 
        covered by the report;
            (2) a list of qualified State agencies, the number of 
        licensees reviewed by the qualified State agencies under this 
        title, and the outcomes of such reviews;
            (3) a description of the efforts the Secretary has 
        undertaken to ensure that qualified State agencies are properly 
        issuing licenses and regulating licensees under this title;
            (4) a detailed description of each type of game offered by 
        licensees and how each type is consistent with the definition 
        of poker under section 102; and
            (5) any other information the Secretary determines may be 
        useful to Congress.
    (c) Consumer Protection.--Not later than 1 year after the date that 
licenses first issue under this title and annually thereafter, the 
Secretary shall transmit to the Committee on Energy and Commerce of the 
House of Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report on commercial and regulatory 
practices carried out to protect consumers with respect to Internet 
poker, including the practices carried out pursuant to the requirements 
of section 106 and the regulations prescribed pursuant to such section. 
Such report shall include--
            (1) a detailed description of the efforts of each qualified 
        State agency to protect consumers from unfair or deceptive acts 
        or practices, including deceptive advertising and marketing to 
        minors;
            (2) a description of the practices that the Secretary 
        recommends qualified State agency to adopt to protect 
        consumers;
            (3) such recommendations as the Secretary may have for 
        legislative action as the Secretary considers necessary to 
        protect consumers with respect to Internet poker; and
            (4) such other information as the Secretary considers 
        appropriate.

SEC. 115. EFFECTIVE DATE.

    (a) In General.--Except as otherwise provided in this title, the 
provisions of this title shall take effect on the date that is 30 days 
after the date of the enactment of this Act.
    (b) Regulations Required Before Issuing Licenses.--Notwithstanding 
any other provision of this title, a qualified State agency may not 
issue a license under this title before the later of--
            (1) the date on which the Secretary prescribes final 
        regulations under section 113;
            (2) the date on which the Secretary of the Treasury 
        prescribes final regulations pursuant to subsections (a) and 
        (d) of section 203; and
            (3) the date on which the Director of the Financial Crimes 
        Enforcement Network submits to the Secretary of the Treasury a 
        list of unlicensed Internet gambling enterprises pursuant to 
        section 5369(a)(1)(B) of title 31, United States Code, as added 
        by section 202(a).

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

SEC. 201. FINANCIAL TRANSACTION PROVIDERS.

    (a) In General.--Subchapter IV of chapter 53 of title 31, United 
States Code, is amended by adding at the end the following:
``Sec. 5368. Liability of financial transaction providers
    ``(a) Liability for Certain Financial Activities and 
Transactions.--A financial transaction provider shall not be held 
liable for engaging in a financial activity or transaction, including a 
payments processing activity, in connection with a bet or wager 
permitted by the Internet Gambling Prohibition, Poker Consumer 
Protection, and Strengthening UIGEA Act of 2011 or the Interstate 
Horseracing Act of 1978 (15 U.S.C. 3001 et seq.) unless the financial 
transaction provider has actual knowledge that the financial activity 
or transaction was conducted in violation of either such Act or any 
other applicable provision of Federal or State law.
    ``(b) No Liability for Blocking or Refusing to Honor Certain 
Transactions.--
            ``(1) In general.--A financial transaction provider that 
        takes an action described in paragraph (2) with respect to a 
        transaction shall not be liable to any party for that action if 
        the financial transaction provider takes the action because the 
        originator of the transaction or a party to the transaction 
        is--
                    ``(A) a person or entity that is included in the 
                list of unlicensed Internet gambling enterprises 
                required by section 5369(a);
                    ``(B) a person or entity that the financial 
                transaction provider reasonably believes is included in 
                that list;
                    ``(C) a person or entity that is included in a list 
                of unlicensed Internet gambling enterprises made 
                available to the financial transaction provider by the 
                Secretary under section 5369(a)(3);
                    ``(D) a person or entity that the financial 
                transaction provider reasonably believes is included in 
                a list described in subparagraph (C);
                    ``(E) a person or entity that is demonstrated to be 
                an unlicensed Internet gambling enterprise based on 
                information, other than a list described in 
                subparagraph (C), that is made available to the 
                financial transaction provider; or
                    ``(F) a person or entity that the financial 
                transaction provider reasonably believes is 
                demonstrated to be an unlicensed Internet gambling 
                enterprise based on information described in 
                subparagraph (E).
            ``(2) Actions described.--A financial transaction provider 
        takes an action described in this paragraph if the financial 
        transaction provider--
                    ``(A) identifies and blocks a transaction;
                    ``(B) prevents or prohibits the acceptance of its 
                products or service in connection with a transaction or 
                otherwise refuses to honor a transaction; or
                    ``(C) closes an account or ends a financial 
                relationship.''.
    (b) Clerical Amendment.--The table of sections for chapter 53 of 
title 31, United States Code, is amended by adding at the end the 
following:

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

SEC. 202. LIST OF UNLICENSED INTERNET GAMBLING ENTERPRISES.

    (a) In General.--Subchapter IV of chapter 53 of title 31, United 
States Code, as amended by section 201(a), is further amended by adding 
at the end the following:
``Sec. 5369. List of unlicensed Internet gambling enterprises
    ``(a) List of Unlicensed Internet Gambling Enterprises.--
            ``(1) In general.--The Director shall--
                    ``(A) identify unlicensed Internet gambling 
                enterprises in accordance with the procedures described 
                in subsection (b);
                    ``(B) not later than 120 days after the date of the 
                enactment of the Internet Gambling Prohibition, Poker 
                Consumer Protection, and Strengthening UIGEA Act of 
                2011, submit to the Secretary a list of unlicensed 
                Internet gambling enterprises that includes the 
                information described in paragraph (2); and
                    ``(C) not less frequently than every 60 days 
                thereafter, submit to the Secretary an updated list 
                that reflects the results of subsequent investigations 
                carried out under this section.
            ``(2) Information required.--The information described in 
        this paragraph is, with respect to each unlicensed Internet 
        gambling enterprise included on the list required by paragraph 
        (1), the following:
                    ``(A) All known Internet Web site addresses of the 
                enterprise.
                    ``(B) The name of any person who controls, 
                finances, manages, supervises, directs, or owns all or 
                part of the enterprise (as such terms are used in 
                section 1955 of title 18).
                    ``(C) To the extent known, information identifying 
                the financial agents and account numbers of the 
                enterprise and the persons described in subparagraph 
                (B).
            ``(3) Distribution of list.--Not later than 10 days after 
        receiving the list or an updated version of the list required 
        by paragraph (1) from the Director, the Secretary shall--
                    ``(A) post the information provided under 
                subparagraphs (A) and (B) of paragraph (2) on the 
                Internet Web site of the Department of the Treasury; 
                and
                    ``(B) provide to each person that is required to 
                comply with the regulations prescribed pursuant to 
                section 5364 a copy of the information included with 
                the list required by paragraph (1) in an electronic 
                format compatible with the list of Specially Designated 
                Nationals and Blocked Persons maintained by the Office 
                of Foreign Assets Control.
    ``(b) Procedures for Identifying Unlicensed Internet Gambling 
Enterprises.--
            ``(1) Investigations.--
                    ``(A) Initial investigation.--Not later than the 
                date that is 60 days after the date of the enactment of 
                the Interne Gambling Prohibition, Poker Consumer 
                Protection, and Strengthening UIGEA Act of 2011, the 
                Director shall complete an initial investigation of 
                entities that appear to be unlicensed Internet gambling 
                enterprises.
                    ``(B) Subsequent investigations.--After completing 
                the initial investigation required by subparagraph (A), 
                the Director shall regularly investigate entities that 
                appear to be unlicensed Internet gambling enterprises.
            ``(2) Requests.--
                    ``(A) In general.--Any Federal, State, tribal, or 
                local law enforcement official, any affected sports 
                organization, any person directly harmed by unlicensed 
                Internet gaming, any financial transaction provider, 
                and any interactive computer service shall have the 
                right, but not the obligation, to make a written 
                request to the Director for the addition of any person 
                to the list of unlicensed Internet gambling enterprises 
                required by subsection (a).
                    ``(B) Determinations; notice to person that 
                submitted a request.--Not later than 30 days after 
                receiving a request under subparagraph (A), the 
                Director shall--
                            ``(i) determine if the request contains 
                        information sufficient to constitute a prima 
                        facie case that an entity is an unlicensed 
                        Internet gambling enterprise; and
                            ``(ii) notify the person that submitted the 
                        request of the determination of the Director.
            ``(3) Notice.--Not later than 30 days before including a 
        person in the list of unlicensed Internet gambling enterprises 
        required by subsection (a), the Director shall provide written 
        notice to the person of the determination of the Director to 
        include the person in the list.
            ``(4) Opportunity to contest.--
                    ``(A) In general.--A person that receives notice 
                under paragraph (3) that the Director has determined to 
                include the person in the list of unlicensed Internet 
                gambling enterprises required by subsection (a) may, 
                not later than 30 days after receiving the notice, 
                contest the determination--
                            ``(i) by submitting a written appeal to the 
                        Director; and
                            ``(ii) by agreeing in the written appeal to 
                        submit to the jurisdiction of the United 
                        States.
                    ``(B) Effect of not contesting.--If a person 
                described in subparagraph (A) does not contest the 
                determination of the Director to include the person in 
                the list of unlicensed Internet gambling enterprises 
                required by subsection (a) in accordance with 
                subparagraph (A), the Director shall include the person 
                in the list.
            ``(5) Opportunity for hearing.--The Director--
                    ``(A) may not include a person that submits a 
                written appeal pursuant to paragraph (4) in the list of 
                unlicensed Internet gambling enterprises required by 
                subsection (a) until the Director provides the person 
                with an opportunity for a hearing; and
                    ``(B) shall provide the person the opportunity for 
                a hearing not later than 30 days after receiving the 
                written appeal from the person.
            ``(6) Determinations after hearing.--Not later than 10 days 
        after the date of a hearing provided for a person under 
        paragraph (5) (without regard to whether the person appears at 
        the hearing), the Director shall--
                    ``(A) determine if the person should be included in 
                the list of unlicensed Internet gambling enterprises 
                required by subsection (a); and
                    ``(B) if the Director determines that the person 
                should be included in the list, add the person to the 
                list.
            ``(7) Injunctive relief.--
                    ``(A) In general.--A person described in 
                subparagraph (B) may petition for injunctive relief in 
                the United States District Court for the District of 
                Columbia, which shall have exclusive jurisdiction to 
                hear cases arising under this section.
                    ``(B) Person described.--A person described in this 
                subparagraph is a person that the Director determines 
                to include in the list of unlicensed Internet gambling 
                enterprises required by subsection (a)--
                            ``(i) after the person appears at a hearing 
                        described in paragraph (5); or
                            ``(ii) that did not receive the notice 
                        required by paragraph (3).
                    ``(C) Burden of proof.--The petitioner shall have 
                the burden of establishing that the person should not 
                be included in the list of unlicensed Internet gambling 
                enterprises required by subsection (a).
                    ``(D) Standing.--Only persons that the Director 
                determines to include in the list of unlicensed 
                Internet gambling enterprises required by subsection 
                (a) and owners or operators of such enterprises shall 
                have standing to contest the determination of the 
                Director.
                    ``(E) Available relief.--The court may direct the 
                Director and the Secretary not to add, or to remove, 
                the petitioner from the list of unlicensed Internet 
                gambling enterprises.
                    ``(F) Unavailability of other remedies.--There 
                shall be no judicial review of a determination under 
                this section other than pursuant to this paragraph.
    ``(c) Effect of List.--A financial transaction provider shall be 
deemed to have actual knowledge that a person or entity is an 
unlicensed Internet gambling enterprise if--
            ``(1) the person or entity is included in the list of 
        unlicensed Internet gambling enterprises required by subsection 
        (a); or
            ``(2)(A) the person or entity is included in a list of 
        unlicensed Internet gambling enterprises made available to the 
        financial transaction provider by the Secretary under 
        subsection (a)(3); and
            ``(B) information in addition to the list described in 
        subparagraph (A) is available to the financial transaction 
        provider that demonstrates that the person or entity is an 
        unlicensed Internet gambling enterprise.
    ``(d) Definitions.--In this section:
            ``(1) Director.--The term `Director' means the Director of 
        the Financial Crimes Enforcement Network appointed under 
        section 310(b).
            ``(2) Sports organization.--The term `sports organization' 
        means an amateur sports organization or a professional sports 
        organization (as those terms are defined in section 3701 of 
        title 28).
            ``(3) Unlicensed internet gambling enterprise.--The term 
        `unlicensed Internet gambling enterprise' means any person who, 
        on or after the date of the enactment of the Internet Gambling 
        Prohibition, Poker Consumer Protection, and Strengthening UIGEA 
        Act of 2011--
                    ``(A) violates a provision of section 5363;
                    ``(B) knowingly assists a person in conduct 
                described in subparagraph (A).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter 53, as amended by section 201(b), is further amended by 
adding at the end the following:

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

SEC. 203. REGULATIONS.

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

SEC. 204. CONFORMING AMENDMENTS.

    (a) Duties and Powers of the Director of the Financial Crimes 
Enforcement Network.--Section 310(b)(2)(I) of title 31, United States 
Code, is amended by striking ``subchapter II'' and inserting 
``subchapters II and IV''.
    (b) Exclusion of Licensed Internet Poker Facility Operations From 
Definition of Unlawful Internet Gambling Enterprise.--Section 5362(10) 
of such title is amended--
            (1) in subparagraph (D), by striking clause (iii);
            (2) by redesignating subparagraph (E) as subparagraph (F); 
        and
            (3) by inserting after subparagraph (D) the following:
                    ``(E) Licensed internet poker facilities.--The term 
                `unlawful Internet gambling' does not include an 
                activity carried out by an Internet poker facility, as 
                such term is defined in section 102 of the Internet 
                Gambling Prohibition, Poker Consumer Protection, and 
                Strengthening UIGEA Act of 2011, operated by a person 
                under a license provided under title I of such Act in 
                accordance with the provisions of such title.''.
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