I 
109TH CONGRESS 
2D SESSION 
H. R. 5474 
To create a commission to study the proper response of the United States 
to the growth of Internet gambling. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 24, 2006 
Mr. PORTER (for himself, Mr. GIBBONS, Ms. BERKLEY, Mr. LOBIONDO, Mr. 
WEINER, Mr. JACKSON of Illinois, Mr. DAVIS of Illinois, Mr. CARDOZA, 
Mr. RUPPERSBERGER, Mr. CLYBURN, Mr. CAPUANO, Ms. WATSON, Ms. 
EDDIE BERNICE JOHNSON of Texas, Ms. LINDA T. SA´NCHEZ of Cali-
fornia, Ms. CORRINE BROWN of Florida, Mr. CONYERS, Mr. RANGEL, Mr. 
HASTINGS of Florida, Mr. FRANK of Massachusetts, Mr. HINCHEY, Mrs. 
JONES of Ohio, Mr. CLAY, Mrs. NAPOLITANO, Mr. THOMPSON of Mis-
sissippi, Mr. SERRANO, Mr. CROWLEY, Mr. ENGEL, Mr. TAYLOR of Mis-
sissippi, Mr. LANGEVIN, Mr. EMANUEL, Mr. MELANCON, Mr. LEWIS of 
Georgia, Mr. TOWNS, Ms. LORETTA SANCHEZ of California, Mr. ISRAEL, 
Mr. GONZALEZ, Mr. BERMAN, Mrs. MALONEY, Mr. THOMPSON of Cali-
fornia, Mr. COSTELLO, Ms. SCHAKOWSKY, Mr. ACKERMAN, Mr. WEXLER, 
and Ms. JACKSON-LEE of Texas) introduced the following bill; which was 
referred to the Committee on the Judiciary 
A BILL 
To create a commission to study the proper response of 
the United States to the growth of Internet gambling. 
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 shall be known as the ‘‘Internet Gambling 
Study Commission Act’’. 
SEC. 2. FINDINGS AND PURPOSE. 
(a) FINDINGS.—The Congress finds as follows: 
(1) Gambling is regulated primarily by State 
and tribal governments and Federal statutes gov-
erning the interstate placement of wagers are out-
dated. 
(2) Over the past decade, the number of Ameri-
cans gambling on the Internet has risen dramatically 
to several million, accounting for over half of a 
multibillion dollar worldwide market. 
(3) Many observers believe that it is impossible 
to stop the sale of most products or services over the 
Internet. 
(4) Congress must avoid merely symbolic, inef-
fective responses to the growth of Internet gambling, 
and should instead focus on establishing safeguards 
against gambling by minors, compulsive gambling, 
and fraud, money laundering, and other forms of 
abuse. 
(5) Although interpretations of a recent ruling 
of the World Trade Organization’s appellate body 
differ, legal experts agree that it calls into question 
whether certain of Federal and State gambling laws 
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violate the commitments of the United States under 
the General Agreement on Trade and Services. 
(6) While only the United States and Antigua 
are parties to that dispute, the ruling could have 
ramifications for interested nations from the United 
Kingdom to Australia. 
(b) PURPOSE.—The purpose of this Act is provide for 
a detailed examination of the issues posed by the contin-
ued spread and growth of interstate commerce with re-
spect to Internet gambling through the establishment of 
a commission for such purpose. 
SEC. 3. INTERNET GAMBLING STUDY COMMISSION. 
(a) ESTABLISHMENT OF COMMISSION.—There is es-
tablished a commission to be known as the Internet Gam-
bling Study Commission (hereinafter in this Act referred 
to as the ‘‘Commission’’). 
(b) MEMBERSHIP.— 
(1) APPOINTMENT.—The Commission shall con-
sist of 9 members appointed as follows: 
(A) 2 shall be appointed by the Speaker of 
the House of Representatives. 
(B) 2 shall be appointed by the minority 
leader of the House of Representatives. 
(C) 2 shall be appointed by the majority 
leader of the Senate. 
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(D) 2 shall be appointed by the minority 
leader of the Senate. 
(E) 1 shall be appointed by consensus by 
the 8 commissioners appointed in accordance 
with subparagraphs (A), (B), (C), and (D). 
(2) TERM.—Commissioners shall be appointed 
for the life of the Commission. 
(3) ELIGIBILITY FOR MEMBERSHIP.—The mem-
bers of the Commission— 
(A) shall be appointed from among individ-
uals who, by virtue of their education, training, 
or experience in matters to be studied by the 
Commission under section 4 are especially 
qualified to serve on the Commission; and 
(B) may be from the public or private sec-
tor, and may include Federal, State, local, or 
Native American tribal officers or employees, 
members of academia, nonprofit organizations, 
industry, or other interested individuals. 
(4) CONSULTATION AND TIMELY APPOINTMENT 
REQUIRED.—The Speaker of the House of Rep-
resentatives, the minority leader of the House of 
Representatives, the majority leader of the Senate, 
and the minority leader of the Senate shall— 
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(A) consult among themselves prior to the 
appointment of the members of the Commission 
in order to achieve, to the maximum extent pos-
sible, fair and equitable representation of var-
ious points of view with respect to the matters 
to be studied by the Commission under section 
4; and 
(B) each make their respective appoint-
ments not later than 60 days after the date of 
enactment of this Act. 
(5) VACANCY.—Any vacancy in the position of 
any Commissioner shall be filled in the same manner 
in which the original appointment was made and 
shall not affect the powers of the Commission 
(c) CHAIRPERSON.—The member of the Commission 
appointed under subsection (b)(1)(E) shall serve as the 
Chairperson of the Commission. 
(d) ADMINISTRATION.— 
(1) MEETINGS.— 
(A) IN GENERAL.—The Commission shall 
meet at the call of the Chairperson. 
(B) INITIAL MEETING.—The initial meet-
ing of the Commission shall be conducted before 
the end of the later of— 
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(i) the 30-day period beginning on the 
date of the appointment of the last mem-
ber of the Commission; or 
(ii) the 30-day period beginning on 
the date on which appropriated funds be-
come available for the Commission. 
(2) QUORUM.—A majority of the members of 
the Commission shall constitute a quorum to con-
duct business, but the Commission may establish a 
lesser number for conducting hearings scheduled by 
the Commission. 
(3) VOTING.—Each member of the Commission 
shall have 1 vote, and the vote of each member shall 
be accorded the same weight. 
(4) RULES.—The Commission may establish by 
majority vote any other rules for the conduct of the 
Commission’s business, if such rules are not incon-
sistent with this Act or other applicable law. 
(e) COMPENSATION.— 
(1) IN GENERAL.—Each member of the Com-
mission who is not an officer or employee of the 
Federal Government, or whose compensation is not 
precluded by a State, local, or Native American trib-
al government position, shall be compensated at a 
rate equal to the daily equivalent of the annual rate 
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of basic pay prescribed for level IV of the Executive 
Schedule under section 5315 of title 5, United 
States Code, for each day (including travel time) 
during which such member is engaged in the per-
formance of the duties of the Commission. 
(2) PROHIBITION OF COMPENSATION OF FED-
ERAL EMPLOYEES.—All members of the Commission 
who are officers or employees of the United States 
shall serve without compensation in addition to that 
received for their services as officers or employees of 
the United States. 
(f) TRAVEL EXPENSES.—The members of the Com-
mission shall be allowed travel expenses, including per 
diem in lieu of subsistence, at rates authorized for employ-
ees of agencies under subchapter I of chapter 57 of title 
5, United States Code, while away from their homes or 
regular places of business in the performance of service 
for the Commission. 
SEC. 4. DUTIES OF THE COMMISSION. 
(a) STUDY REQUIRED.— 
(1) IN GENERAL.—It shall be the duty of the 
Commission to conduct a comprehensive study of 
Internet gambling, including the existing legal 
framework that governs such activities and trans-
actions. 
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(2) ISSUES
TO
BE
CONSIDERED.—The study 
conducted under paragraph (1) shall include a re-
view and consideration by the Commission of the fol-
lowing issues: 
(A) Existing Federal, State, tribal, local, 
and international laws governing various forms 
of wagering over the Internet, the effectiveness 
of such laws, and the extent to which such pro-
visions of law conform or do not conform with 
each other. 
(B) The rate and extent of the expansion 
of Internet gambling, including an analysis of 
the availability and use within the United 
States of such form of gambling. 
(C) The impact of Internet gambling on 
the availability of gambling to minors. 
(D) The impact of Internet gambling on 
addicted or otherwise irresponsible gamblers. 
(E) The susceptibility of Internet gambling 
to fraud and money laundering by terrorist or 
criminal enterprises and the extent to which 
such entities are utilizing Internet gambling 
sites for these purposes. 
(F) An assessment of whether there are 
potential regulatory measures that may reduce 
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the adverse impacts of Internet gambling iden-
tified in subparagraphs (C), (D), and (E), in-
cluding a survey of recent technological innova-
tions and the practices of other nations and 
international bodies that are designed to limit 
such adverse impacts. 
(G) An evaluation of the use of credit, 
credit cards, electronic fund transfers, bank in-
struments, and other payment providers to fund 
Internet gambling and an assessment of the po-
tential, if any, for regulating of such financing 
methods as a means for reducing the adverse 
impacts of Internet gambling identified in sub-
paragraphs (C), (D), and (E). 
(H) An analysis of the issues of the rela-
tionships of Federal, State, and tribal laws that 
are presented by legislative and administrative 
proposals designed to address the proliferation 
of Internet gambling and the potential means of 
reconciling State-based legal and regulatory 
frameworks with the primarily interstate and 
international character of the Internet as a me-
dium. 
(I) An assessment of the problems posed 
by unregulated international Internet gambling 
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to United States interests and the potential 
means, if any, by which the Federal Govern-
ment may seek international cooperation in ad-
dressing these concerns. 
(b) FINAL REPORT.—Before the end of the 18-month 
period beginning on the date the Commission first meets 
with a quorum present, the Commission shall— 
(1) submit to the President and the Congress a 
comprehensive report containing the findings and 
conclusions of the Commission with regard to the 
study conducted under subsection (a), together with 
such recommendations, if any, for legislative or ad-
ministrative action as the Commission may deter-
mine to be appropriate and advisable, on the basis 
of such findings and conclusions, to provide a sound 
response to Internet gambling in the United States; 
and 
(2) transmit a copy of such report to the Gov-
ernor or chief executive officer of each State and 
Native American tribal government. 
SEC. 5. POWERS OF THE COMMISSION. 
(a) HEARINGS.— 
(1) IN GENERAL.—The Commission may hold 
such hearings, sit and act at such times and places, 
administer such oaths, take such testimony, and re-
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ceive such evidence as the Commission considers ad-
visable to carry out its duties under this Act. 
(2) WITNESS EXPENSES.—Witnesses requested 
to appear before the Commission shall be paid the 
same fees as are paid to witnesses under section 
1821 of title 28, United States Code, from funds ap-
propriated to the Commission. 
(b) SUBPOENAS.— 
(1) IN GENERAL.—If a person fails to supply 
information requested by the Commission, the Com-
mission may by majority vote require by subpoena 
the production of any written or recorded informa-
tion, document, report, answer, record, account, 
paper, computer file, or other data or documentary 
evidence from any place withing the United States 
that the Commission determines is necessary to 
carry out this Act. 
(2) NOTICE
TO
ATTORNEY
GENERAL.—The 
Commission shall transmit to the Attorney General 
a confidential, written notice at least 10 days in ad-
vance of the issuance of any such subpoena. 
(3) INTERROGATORIES.—The Commission may, 
with respect only to information necessary to under-
stand any materials obtained through a subpoena 
under paragraph (1), issue a subpoena requiring the 
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