I 
110TH CONGRESS 
1ST SESSION H. R. 2046 
To amend title 31, United States Code, to provide for the licensing of 
Internet gambling facilities by the Director of the Financial Crimes 
Enforcement Network, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 26, 2007 
Mr. FRANK of Massachusetts (for himself, Mr. PAUL, Mr. WEXLER, Mr. ACK-
ERMAN, Mr. CLAY, Mr. GUTIERREZ, Mr. CAPUANO, Mr. WATT, Ms. 
BERKLEY, Ms. CARSON, Mr. KING of New York, and Mr. ISRAEL) intro-
duced the following bill; which was referred to the Committee on Finan-
cial Services, and in addition to the Committee on Energy and Com-
merce, 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 
A BILL 
To amend title 31, United States Code, to provide for the 
licensing of Internet gambling facilities by the Director 
of the Financial Crimes Enforcement Network, 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 ‘‘Internet Gambling Reg-
ulation and Enforcement Act of 2007’’. 
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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 and purpose 
‘‘(a) FINDINGS.—The Congress finds the following: 
‘‘(1) Internet gambling is a $13,000,000,000 
and growing industry worldwide. 
‘‘(2) Gambling is a popular activity domesti-
cally, with some form of gambling being permitted 
in nearly every State. 
‘‘(3) Internet gambling is a licensed, regulated 
activity in more than 50 countries, providing billions 
of dollars in tax revenue to those countries. 
‘‘(4) The global gaming market grossed about 
$258,000,000,000 in 2005, with online revenues rep-
resenting an estimated 5.0 percent. North American 
residents accounted for an estimated 47 percent of 
the global gross gaming yield in 2005. 
‘‘(5) A licensing and regulatory regime for 
Internet gambling in the United States is needed to 
provide appropriate protections against underage 
gambling, compulsive gambling, money laundering, 
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and fraud for those citizens who choose to gamble 
online. 
‘‘(6) Licensing and regulating Internet gam-
bling in the United States would provide additional 
tax revenues, and would reduce tax avoidance. 
‘‘§ 5382. Definitions 
‘‘For purposes of this subchapter, the following defi-
nitions shall apply: 
‘‘(1) DIRECTOR.—The term ‘director’ means 
the Director of the Financial Crimes Enforcement 
Network. 
‘‘(2) BET OR WAGER.—The term ‘bet or wager’ 
shall have the same meaning as in section 5362(1). 
‘‘(3) LICENSEE.—The term ‘licensee’ shall 
mean an Internet gambling operator licensed by the 
Director in accordance with this subchapter. 
‘‘(4) STATE.—The term ‘State’ means any 
State of the United States, the District of Columbia, 
or any commonwealth, territory, or other possession 
of the United States. 
‘‘(5) INTERNET.—The term ‘Internet’ means 
the international computer network of interoperable 
packet switched data networks. 
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‘‘(6) SPORTING LEAGUE.—The term ‘sporting 
league’ shall mean any sporting association, whether 
professional, scholastic, or amateur. 
‘‘(7) OPERATE AN INTERNET GAMBLING FACIL-
ITY.—The term ‘operate an Internet gambling facil-
ity’ means the direction, management, supervision, 
or control of an Internet site through which bets or 
wagers are placed, accepted, or otherwise made, 
whether by telephone, Internet or other wire commu-
nication. 
‘‘(8) INDIAN LANDS AND INDIAN TRIBE.—The 
terms ‘Indian lands’ and ‘Indian tribe’ have the 
same meanings as in section 4 of the Indian Gaming 
Regulatory Act. 
‘‘§ 5383. Establishment and administration of licens-
ing program 
‘‘(a) FINCEN REQUIREMENTS.—Subject to the over-
sight and direction of the Secretary of the Treasury, the 
Director shall prescribe such regulations as may be nec-
essary to administer and enforce the requirements under 
this subchapter. 
‘‘(b) INTERNET GAMBLING LICENSING PROGRAM.— 
No person shall engage in the business of Internet betting 
or wagering in the United States without a license issued 
by the Director in accordance with this subchapter. 
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‘‘(c) APPLICATION FOR LICENSE.— 
‘‘(1) IN GENERAL.—Any person seeking author-
ity to engage in the business of betting or wagering 
in the United States may apply for a license issued 
by the Director. 
‘‘(2) INFORMATION
REQUIRED.—Any applica-
tion for a license under this subchapter shall contain 
such information as may be required by the Direc-
tor, including— 
‘‘(A) a complete financial statements of the 
applicant; 
‘‘(B) documentation showing the corporate 
structure of the applicant and all related busi-
nesses and affiliates; and 
‘‘(C) a certification that the applicant 
agrees to be subject to United States jurisdic-
tion and all applicable United States laws relat-
ing to Internet gambling activities. 
‘‘(d) REVIEW OF LICENSEES.— 
‘‘(1) IN GENERAL.—After the filing of a com-
plete application, the Director shall evaluate the gen-
eral fitness of the applicant on the basis of such fac-
tors as the Director determines to be appropriate. 
‘‘(2) FACTORS.—The factors taken into account 
by the Director under paragraph (1) shall include— 
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