enforcement officials as a significant money laun-
dering vulnerability.
SEC. 3. PROHIBITION ON ACCEPTANCE OF ANY BANK IN-
STRUMENT FOR UNLAWFUL INTERNET GAM-
BLING.
(a) IN GENERAL.—No person engaged in a gambling
business may knowingly accept, in connection with the par-
ticipation of another person in unlawful Internet
gambling—
(1) credit, or the proceeds of credit, extended to
or on behalf of such other person (including credit ex-
tended through the use of a credit card);
(2) an electronic fund transfer or funds trans-
mitted by or through a money transmitting business,
or the proceeds of an electronic fund transfer or
money transmitting service, from or on behalf of the
other person;
(3) any check, draft, or similar instrument
which is drawn by or on behalf of the other person
and is drawn on or payable at or through any finan-
cial institution; or
(4) the proceeds of any other form of financial
transaction as the Secretary may prescribe by regula-
tion which involves a financial institution as a payor
or financial intermediary on behalf of or for the ben-
efit of the other person.
(b) DEFINITIONS.—For purposes of this Act, the fol-
lowing definitions shall apply:
(1) BETS
OR
WAGERS.—The term ‘‘bets or
wagers’’—
(A) means the staking or risking by any
person of something of value upon the outcome of
a contest of others, a sporting event, or a game
predominantly subject to chance, upon an agree-
ment or understanding that the person or an-
other person will receive something of greater
value than the amount staked or risked in the
event of a certain outcome;
(B) includes the purchase of a chance or op-
portunity to win a lottery or other prize (which
opportunity to win is predominantly subject to
chance);
(C) includes any scheme of a type described
in section 3702 of title 28; and
(D) does not include—
(i) any bona fide business transaction
governed by the securities laws (as that
term is defined in section 3(a)(47) of the
Securities Exchange Act of 1934) for the
purchase or sale at a future date of securi-
ties (as that term is defined in section
3(a)(10) of such Act);
(ii) any transaction on or subject to
the rules of a contract market designated
pursuant to section 5 of the Commodity Ex-
change Act;
(iii) any over-the-counter derivative
instrument;
(iv) any contract of indemnity or
guarantee;
(v) any contract for life, health, or ac-
cident insurance; or
(vi) any participation in a simulation
sports game or an educational game or con-
test that—
(I) is not dependent solely on the
outcome of any single sporting event or
nonparticipant’s singular individual
performance in any single sporting
event;
(II) has an outcome that reflects
the relative knowledge and skill of the
participants with such outcome deter-
mined predominantly by accumulated
statistical results of sporting events;
and
(III) offers a prize or award to a
participant that is established in ad-
vance of the game or contest and is not
determined by the number of partici-
pants or the amount of any fees paid
by those participants.
(2) GAMBLING BUSINESS.—The term ‘‘gambling
business’’ means—
(A) a business that is conducted at a gam-
bling establishment;
(B) a business that—
(i) involves—
(I) the placing, receiving, or oth-
erwise making of bets or wagers; or
(II) the offering to engage in the
placing, receiving, or otherwise making
of bets or wagers;
(ii) involves 1 or more persons who
conduct, finance, manage, supervise, direct,
or own all or part of such business; and
(iii) has been or remains in substan-
tially continuous operation for a period in
excess of 10 days or has a gross revenue of
$2,000 or more from such business during
any 24-hour period; and
(C) any agent who knowingly solicits for a
business described in subparagraph (A) or (B).
(3) INTERNET.—The term ‘‘Internet’’ means the
international computer network of interoperable pack-
et switched data networks.
(4) UNLAWFUL INTERNET GAMBLING.—The term
‘‘unlawful Internet gambling’’ means to place, receive,
or otherwise make a bet or wager by any means
which involves the use, at least in part, of the Inter-
net where such bet or wager is unlawful under any
applicable Federal or State law in the State in which
the bet or wager is initiated, received, or otherwise
made.
(5) OTHER TERMS.—
(A) 
CREDIT; 
CREDITOR; 
AND
CREDIT
CARD.—The terms ‘‘credit’’, ‘‘creditor’’, and
‘‘credit card’’ have the meanings given such
terms in section 103 of the Truth in Lending
Act.
(B) ELECTRONIC
FUND
TRANSFER.—The
term ‘‘electronic fund transfer’’—
(i) has the meaning given such term in
section 903 of the Electronic Fund Transfer
Act; and
(ii) includes any fund transfer covered
by Article 4 of the Uniform Commercial
Code, as in effect in any State.
(C) FINANCIAL INSTITUTION.—The term ‘‘fi-
nancial institution’’ has the meaning given such
term in section 903 of the Electronic Fund
Transfer Act.
(D) MONEY TRANSMITTING BUSINESS AND
MONEY
TRANSMITTING
SERVICE.—The 
terms
‘‘money transmitting business’’ and ‘‘money
transmitting service’’ have the meanings given
such terms in section 5330(d) of title 31, United
States Code.
(E) SECRETARY.—The term ‘‘Secretary’’
means the Secretary of the Treasury.
(c) CIVIL REMEDIES.—
(1) JURISDICTION.—The district courts of the
United States shall have original and exclusive juris-
diction to prevent and restrain violations of this sec-
tion by issuing appropriate orders in accordance with
this section, regardless of whether a prosecution has
been initiated under this section.