I 
111TH CONGRESS 
1ST SESSION H. R. 2267 
To amend title 31, United States Code, to provide for the licensing of 
Internet gambling activities by the Secretary of the Treasury, to provide 
for consumer protections on the Internet, to enforce the tax code, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 6, 2009 
Mr. FRANK of Massachusetts (for himself, Mr. PAUL, Mr. GUTIERREZ, Mr. 
KING of New York, Mr. WATT, Mr. ACKERMAN, Mr. CAPUANO, Mr. CAR-
SON of Indiana, Mr. MCDERMOTT, Mr. DELAHUNT, Mr. MCGOVERN, Mr. 
WEXLER, Ms. BERKLEY, Mr. COHEN, Mr. PERRIELLO, and Mr. SABLAN) 
introduced the following bill; which was referred to the Committee on Fi-
nancial Services, and in addition to the Committees on Energy and Com-
merce and the Judiciary, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall with-
in the jurisdiction of the committee concerned 
A BILL 
To amend title 31, United States Code, to provide for the 
licensing of Internet gambling activities by the Secretary 
of the Treasury, to provide for consumer protections 
on the Internet, to enforce the tax code, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Internet Gambling 
Regulation, Consumer Protection, and Enforcement Act’’. 
SEC. 2. FEDERAL LICENSING REQUIREMENT FOR INTER-
NET GAMBLING OPERATORS. 
(a) IN GENERAL.—Chapter 53 of title 31, United 
States Code, is amended by adding at the end the fol-
lowing new subchapter: 
‘‘SUBCHAPTER V—REGULATION OF LAWFUL 
INTERNET GAMBLING 
‘‘§ 5381. Congressional findings 
‘‘The Congress finds the following: 
‘‘(1) Since the development of the Internet, mil-
lions of people have chosen to gamble online, and 
today Internet gambling is offered by operators lo-
cated in many different countries under a variety of 
licensing and regulatory regimes. 
‘‘(2) Despite the increasing use of the Internet 
for gambling by persons in the United States, there 
is no Federal or State regulatory regime in place to 
protect United States citizens who choose to engage 
in this interstate activity, or to oversee operators to 
establish and enforce standards of integrity and fair-
ness. 
‘‘(3) In the United States, gambling activities, 
equipment, and operations have been subject to var-
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ious forms of Federal and State control, regulation, 
and enforcement, with some form of gambling being 
permitted in nearly every State and by many Indian 
tribes. 
‘‘(4) Internet gambling in the United States 
should be controlled by a strict Federal licensing and 
regulatory framework to protect underage and other-
wise vulnerable individuals, to ensure the games are 
fair, to address the concerns of law enforcement, 
and to enforce any limitations on the activity estab-
lished by the States and Indian tribes. 
‘‘(5) An effective Federal licensing system 
would ensure that licenses are issued only to Inter-
net gambling operators which meet strict criteria to 
protect consumers, and which— 
‘‘(A) are in good financial and legal stand-
ing, and of good character, honesty, and integ-
rity; 
‘‘(B) utilize appropriate technology to de-
termine the age and location of users; 
‘‘(C) adopt and implement systems to pro-
tect minors and problem gamblers; 
‘‘(D) adopt and implement systems to en-
force any applicable Federal, State, and Indian 
tribe limitations on Internet gambling; and 
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‘‘(E) have in place risk-based methods to 
identify and combat money laundering and 
fraud relating to Internet gambling, and to pro-
tect the privacy and security of users. 
‘‘(6) There is a need to extend the regulatory 
provisions of this Act to all persons, locations, equip-
ment, practices, and associations related to Internet 
gambling, with each State and Indian tribe having 
the ability to limit Internet gambling operators from 
offering Internet gambling to persons located within 
its territory by opting out of the provisions of this 
Act. 
‘‘§ 5382. Definitions 
‘‘For purposes of this subchapter, the following defi-
nitions shall apply: 
‘‘(1) APPLICANT.—The term ‘applicant’ means 
any person who has applied for a license pursuant 
to this subchapter. 
‘‘(2) BET OR WAGER.—The term ‘bet or wager’ 
has the same meaning as in section 5362(1). 
‘‘(3) ENFORCEMENT
AGENT.—The term ‘en-
forcement agent’ means any individual authorized by 
the Secretary to enforce the provisions of this sub-
chapter and regulations prescribed under this sub-
chapter. 
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