IB 
Union Calendar No. 65
108TH CONGRESS 
1ST SESSION 
H. R. 21
[Report No. 108–51, Parts I and II] 
To prevent the use of certain bank instruments for unlawful Internet 
gambling, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 7, 2003
Mr. LEACH (for himself, Mr. OXLEY, Mr. ROGERS of Michigan, Mr. PICK-
ERING, Mr. NORWOOD, Mr. GOODLATTE, Mr. BACHUS, Mrs. KELLY, Mr. 
WOLF, Mr. SPRATT, Mr. OSBORNE, Mr. PITTS, Mr. BERRY, and Mr. 
GILLMOR) introduced the following bill; which was referred to the Com-
mittee on Financial Services, and in addition to the Committee on the 
Judiciary, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
MAY 27, 2003
Additional sponsors: Mr. BOUCHER, Mr. GREEN of Wisconsin, Mr. LIPINSKI, 
Mr. TERRY, Mr. FRANKS of Arizona, Mr. KENNEDY of Minnesota, Ms. 
HOOLEY of Oregon, Mr. DUNCAN, Mr. AKIN, Ms. EDDIE BERNICE JOHN-
SON of Texas, Mr. SOUDER, Mr. SCHROCK, Mr. UPTON, Mr. GORDON, 
Mr. BARRETT of South Carolina, Mr. CASE, Ms. HART, Mr. ISAKSON, 
Mr. PLATTS, Mr. KING of New York, Mr. LATHAM, and Mr. WICKER
MARCH 27, 2003
Reported from the Committee on Financial Services 
MARCH 27, 2003
Referral to the Committee on the Judiciary extended for a period ending not 
later than May 16, 2003
MAY 16, 2003
Referral to the Committee on the Judiciary extended for a period ending not 
later than June 2, 2003
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MAY 22, 2003
Reported from the Committee on the Judiciary with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on January 7, 2003] 
A BILL 
To prevent the use of certain bank instruments for unlawful 
Internet gambling, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Unlawful Internet Gam-
bling Funding Prohibition Act’’. 
SEC. 2. FINDINGS. 
The Congress finds as follows: 
(1) Internet gambling is primarily funded 
through personal use of bank instruments, including 
credit cards and wire transfers. 
(2) The National Gambling Impact Study Com-
mission in 1999 recommended the passage of legisla-
tion to prohibit wire transfers to Internet gambling 
sites or the banks which represent them. 
(3) Internet gambling is a major cause of debt 
collection problems for insured depository institutions 
and the consumer credit industry.
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(4) Internet gambling conducted through offshore 
jurisdictions has been identified by United States law 
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 the business 
of betting or wagering may knowingly accept, in connection 
with the participation of another person in unlawful Inter-
net 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-
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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 wa-
gers’’—
(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 
subject to chance, upon an agreement or under-
standing that the person or another 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, United States Code; 
(D) includes any instructions or informa-
tion pertaining to the establishment or movement 
of funds in an account by the bettor or customer 
with the business of betting or wagering; and
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(E) does not include—
(i) any activity governed by the securi-
ties laws (as that term is defined in section 
3(a)(47) of the Securities Exchange Act of 
1934) for the purchase or sale of securities 
(as that term is defined in section 3(a)(10) 
of such Act); 
(ii) any transaction conducted on or 
subject to the rules of a registered entity or 
exempt board of trade pursuant to the Com-
modity Exchange Act;
(iii) any over-the-counter derivative 
instrument; 
(iv) any other transaction that—
(I) is excluded or exempt from 
regulation under the Commodity Ex-
change Act; or 
(II) is exempt from State gaming 
or bucket shop laws under section 12(e) 
of the Commodity Exchange Act or sec-
tion 28(a) of the Securities Exchange 
Act of 1934; 
(v) any contract of indemnity or guar-
antee; 
(vi) any contract for insurance;