I 
113TH CONGRESS 
1ST SESSION H. R. 2282 
To regulate Internet gambling, to provide consumer protections, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 6, 2013 
Mr. KING of New York introduced the following bill; which was referred to 
the Committee on Energy and Commerce, and in addition to the Commit-
tees on Financial Services and the Judiciary, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To regulate Internet gambling, to provide consumer 
protections, 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; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Internet Gambling Regulation, Enforcement, and Con-
sumer Protection Act of 2013’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
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TITLE I—INTERNET GAMBLING REGULATION AND CONSUMER 
PROTECTION 
Sec. 101. Findings. 
Sec. 102. Definitions. 
Sec. 103. Prohibition on operation of internet gambling facilities. 
Sec. 104. Office of Internet Gambling Oversight. 
Sec. 105. Qualified bodies. 
Sec. 106. Establishment of licensing program for internet gambling. 
Sec. 107. Compulsive gaming, responsible gaming, and self-exclusion program 
requirements. 
Sec. 108. Prohibition on use of licenses in certain States and Indian lands. 
Sec. 109. Prohibition on bets or wagers on sporting events. 
Sec. 110. Public internet gambling and internet gambling parlors prohibited. 
Sec. 111. Safe harbor. 
Sec. 112. Cheating and other fraud. 
Sec. 113. Construction and relation to other law. 
Sec. 114. Orderly transition. 
Sec. 115. Annual reports. 
Sec. 116. Independent testing of licensed operator equipment. 
Sec. 117. Inclusion of authority to address gambling addiction in samhsa au-
thorities. 
Sec. 118. Compilation of datasets on player behavior. 
Sec. 119. Effective date. 
TITLE II—ENFORCEMENT UNDER TITLES 18 AND 31, UNITED 
STATES CODE 
Sec. 201. Financial service providers. 
Sec. 202. Amendments relating to illegal gambling businesses. 
Sec. 203. Further amendments to subchapter IV of chapter 53 of title 31, 
United States Code. 
Sec. 204. Bettor forfeiture. 
Sec. 205. Regulations. 
Sec. 206. Conforming amendment. 
TITLE III—OTHER MATTERS 
Sec. 301 Severability. 
TITLE I—INTERNET GAMBLING 
REGULATION 
AND 
CON-
SUMER PROTECTION 
SEC. 101. FINDINGS. 
(a) FINDINGS.—Congress makes the following find-
ings: 
(1) Since the development of the Internet, 
Internet sites offering Internet gambling have raised 
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District Attorneys Association and the Fraternal 
Order of Police have expressed support for a law 
that clearly prohibits all unlicensed Internet gam-
bling. Enacting such a law will aid law enforcement, 
prosecutors and courts in their efforts to curtail un-
lawful Internet gambling. 
(4) On December 23, 2011, the Department of 
Justice released a memorandum opinion of the Of-
fice of Legal Counsel dated September 20, 2011, 
that construed section 1084 of title 18, United 
States Code (referred to as the ‘‘Wire Act’’), to 
apply only to sports-related gambling activities in 
interstate and foreign commerce, with the result that 
non-sports related Internet gambling in the United 
States has been found not to be prohibited under 
Federal law if it is lawful under State law. 
(5) A growing number of States and Indian 
tribes have legalized or are considering legalizing 
and promoting Internet gambling to generate rev-
enue. Absent Federal limitations and enforcement, 
State regulation of Internet gambling, including con-
sumer safeguards, could vary widely from State to 
State, and States could have difficulty enforcing 
Internet gambling restrictions within their borders, 
especially against out-of-State operators. 
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(6) A number of States have authorized or are 
considering authorizing Internet purchases of lottery 
subscriptions or other lottery games to generate rev-
enue, which should not be prevented by Federal law. 
(7) Federal law needs to be updated to make 
clear its relationship to Internet gambling to 
strengthen enforcement and to ensure an effective 
Internet gambling enforcement structure that pro-
tects consumers and the ability of States to enforce 
State laws relating to Internet gambling. 
(8) Since the passage of the Professional and 
Amateur Sports Protection Act (Public Law 102– 
559) in 1992, which added chapter 178 to title 28, 
United States Code, such chapter has played an im-
portant and effective role in implementing long-
standing Federal policy against gambling on profes-
sional, scholastic, and amateur sporting events. 
(9) Additional tools to assist law enforcement, 
banks and financial transaction providers, and Inter-
net service providers in the prevention of unlawful 
Internet gambling activities would be important and 
beneficial. Maintenance of a list of licensed Internet 
gambling operators would provide a level of certainty 
as to permitted transactions and law enforcement ef-
forts. 
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(10) Internet gambling, like much other Inter-
net commerce, traverses State boundaries. Any par-
ticular transaction may cross a number of State 
boundaries from origin to destination, and commu-
nications between the same parties at different times 
may travel along markedly different routes, based on 
factors such as traffic, load capacity, and other tech-
nical considerations outside the control of sender 
and recipient. For that reason, among others, the 
Federal courts consistently have ruled that the 
Internet is an instrumentality and channel of inter-
state commerce and, as such, is subject to 
Congress’s plenary authority. For these same rea-
sons, Internet gambling by its very nature implicates 
Federal concerns, and is different in kind and effect 
from traditional gambling activity. 
(11) A Federal regime to regulate Internet 
gambling and to protect consumers should include 
an effective framework— 
(A) to prevent underage wagering and oth-
erwise to protect vulnerable individuals; 
(B) to ensure the games are fair and are 
conducted honestly; 
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(C) to ensure that States and Indian tribes 
that wish to prohibit Internet gambling may do 
so; 
(D) to promote the ability of State and 
Tribal lotteries to generate revenue for the ju-
risdictions that license them; and 
(E) to facilitate the enforcement of Fed-
eral, State, and tribal laws against unauthor-
ized Internet gambling. 
(12) To avoid uneven treatment of Internet 
gambling and land-based gambling and the risk of 
discrimination against existing land-based gambling 
operations and States that have authorized gam-
bling, a Federal regime to regulate Internet gam-
bling should contain revenue measures sufficient to 
ensure that Internet gambling activities generate at 
least equivalent revenues for the Federal Govern-
ment and the States combined as they would gen-
erate if the gambling was carried out at land-based 
operations. 
(13) Federal regulation of Internet gambling 
should be designed and implemented to foster a 
level-playing field among all forms of traditional 
gambling and all types of Internet gambling opera-
tors, including casinos, Indian tribes offering gam-
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bling services, State-licensed lotteries, horseracing, 
and any other form of gambling that is not sports- 
related, as well as among Internet companies with 
relevant expertise in e-commerce who meet the same 
qualifications as traditional casinos for integrity and 
for the capacity to carry out Internet gambling oper-
ations that meet applicable Federal and State stand-
ards. 
SEC. 102. DEFINITIONS. 
In this title: 
(1) APPLICANT.—The term ‘‘applicant’’ means 
any person who has applied for a license under this 
title. 
(2) BET OR WAGER.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘‘bet or wager’’ has 
the meaning given the term in section 5362 of 
title 31, United States Code. 
(B) 
EXCEPTION.—The 
term 
‘‘bet 
or 
wager’’ does not include the following: 
(i) A bet or wager that is permissible 
under the Interstate horseracing Act of 
1978 (15 U.S.C. 3001 et seq.). 
(ii) A qualifying intrastate lottery 
transaction. 
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(3) CASINO GAMING.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘‘casino gaming’’ 
means the full range of casino gaming activity 
licensed by regulatory bodies of States or In-
dian tribes that would be qualified as class III 
gaming under section 4 of the Indian Gaming 
Regulatory Act (25 U.S.C. 2703) if that Act 
were applicable to the gaming. 
(B) EXCEPTION.—The term ‘‘casino gam-
ing’’ does not include lotteries of States or In-
dian tribes in compliance with the law of that 
State or Indian tribe, as applicable, and which 
solely provide lottery tickets to participants 
wholly within the boundaries of such State or 
the Indian lands of such Indian tribe. 
(4) GAMING DEVICE.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘‘gaming device’’ 
means any computer-based gambling machine, 
including slot machines and video lottery termi-
nals that have been approved by a gaming regu-
latory authority of a State or Indian tribe. 
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(B) EXCEPTION.—The term ‘‘gaming de-
vice’’ does not include machines that process 
bets or wagers for pari-mutuel betting pools. 
(5) INDIAN LANDS AND INDIAN TRIBE.—The 
terms ‘‘Indian lands’’ and ‘‘Indian tribe’’ have the 
meaning given the terms in section 4 of the Indian 
Gaming Regulatory Act (25 U.S.C. 2703). 
(6) INTERNET.—The term ‘‘Internet’’ has the 
meaning given the term in section 5362 of title 31, 
United States Code. 
(7) INTERNET GAMBLING FACILITY.—The term 
‘‘Internet gambling facility’’ means an Internet 
website, or similar communications facility in which 
transmissions may cross State boundaries, through 
which a bet or wager is initiated, received, or other-
wise made, whether transmitted by telephone, Inter-
net, satellite, or other wire or wireless communica-
tion facility, service, or medium, including an Inter-
net gambling facility not operating under a license 
in good standing issued under this title, including 
any facility that facilitates qualifying intrastate lot-
tery transactions to the degree that such facility fa-
cilitates such transactions. 
(8) LICENSEE.—The term ‘‘licensee’’ means a 
person who operates an Internet gambling facility 
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under a license issued by a qualified body pursuant 
to this title. 
(9) LIVE
RACING.—The term ‘‘live racing’’ 
means, with respect to a physical race track, the 
conduct of live thoroughbred horse races at such 
race track and does not include any races 
simulcasted from a separate race track. 
(10) OPERATE AN INTERNET GAMBLING FACIL-
ITY.—The term ‘‘operate an Internet gambling facil-
ity’’ means to conduct, direct, manage, own, super-
vise, or control an Internet gambling facility. 
(11) PERSON.—The term ‘‘person’’ means a 
natural person, corporation, casino gambling facility, 
or race track, an Internet gambling facility, an 
Internet poker facility, a State or State agency, or 
an Indian tribe or corporation, agency, or instru-
mentality of an Indian tribe. 
(12) QUALIFIED
BODY.—The term ‘‘qualified 
body’’ means the following: 
(A) The Office of Internet Gambling Over-
sight established under section 104(a) and des-
ignated under section 105(a)(2). 
(B) Any State agency or regulatory body 
of an Indian tribe that has been designated as 
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a qualified body under paragraph (1) or (3) of 
section 105(a). 
(13) QUALIFIED
RACE
TRACK.—The term 
‘‘qualified race track’’ means a race track that has 
been licensed by a regulatory authority of a State or 
Indian tribe. 
(14) QUALIFYING INTRASTATE LOTTERY.—The 
term ‘‘qualifying intrastate lottery’’ means a lottery 
or other prize, through the purchase of a chance or 
opportunity to win, that is offered by a State or In-
dian tribe— 
(A) that is operating lawfully under the 
laws of that State or Indian tribe, as the case 
may be; 
(B) that is not related to a sporting event; 
(C) in which the opportunity to win is pre-
dominately subject to chance; and 
(D) that provides the chances or oppor-
tunity to win for purchase to participants only 
within the boundaries of that State or the In-
dian lands of that Indian tribe, as the case may 
be. 
(15) QUALIFYING
LOTTERY
TRANSACTION.— 
The term ‘‘qualifying lottery transaction’’ means the 
purchase of a chance or opportunity to win a lottery 
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or other prize offered by a State lottery, operating 
lawfully under the laws of a State or Indian tribe, 
that is not sports-related and— 
(A) which opportunity to win is predomi-
nantly subject to chance; and 
(B) which is authorized by a State or In-
dian tribe. 
(16) REMOTE GAMING EQUIPMENT.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘‘remote gaming 
equipment’’ means electronic or other equip-
ment principally used by or on behalf of an op-
erator of an Internet gambling facility, includ-
ing by any significant vendor to such operator, 
to— 
(i) register a person’s participation in 
Internet gambling and to store information 
relating thereto; 
(ii) present to persons who are partici-
pating or who may participate in Internet 
gambling the game that is to be played; 
(iii) determine all or part of, or the ef-
fect of, a result relevant to Internet gam-
bling and to store information relating 
thereto; 
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(iv) accept payment with respect to 
Internet gambling from the player; or 
(v) authorize payment of any winnings 
in respect of Internet gambling. 
(B) EXCEPTION.—The term ‘‘remote gam-
ing equipment’’ does not include the following: 
(i) Equipment used for business con-
tinuity, back-up, excess capacity, or other 
secondary use. 
(ii) A computer which is used by a 
person to participate in Internet gambling 
unless the computer is provided by or on 
behalf of the person who is conducting or 
providing the facilities for the game. 
(iii) Equipment operated in the ordi-
nary course of providing banking, tele-
communications, or payment processing 
services. 
(iv) Such other equipment that pro-
vides ancillary services as the Secretary 
considers appropriate. 
(17) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means the Secretary of the Treasury. 
(18) SIGNIFICANT VENDOR.—The term ‘‘signifi-
cant vendor’’ means a person who— 
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(A) on behalf of a licensee, knowingly man-
ages, administers, or controls bets or wagers 
that are initiated, received, or otherwise made 
within the United States; 
(B) on behalf of a licensee, knowingly 
manages, administers, or controls the games 
with which such bets or wagers are associated; 
(C) on behalf of a licensee, develops, main-
tains, or operates the software or other system 
programs or hardware on which the games or 
the bets or wagers are managed, administered, 
or controlled; 
(D) provides the trademarks, tradenames, 
service marks, or similar intellectual property 
under which a licensee identifies its Internet 
gambling facility to its customers in the United 
States; 
(E) sells, licenses, or otherwise receives 
compensation for selling or licensing informa-
tion on individuals in the United States that 
made bets or wagers with an Internet gambling 
facility not licensed under this title via a data-
base or customer lists; 
(F) provides any products, services, or as-
sets to a licensee and is paid a percentage of 
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gaming revenue or commission fees by the li-
censee (not including fees to financial institu-
tions and payment providers for facilitating a 
deposit by a customer); or 
(G) with respect to an applicant, proposes 
to provide any of the activities, services, or 
items identified in subparagraphs (A) through 
(F). 
(19) SPORTING EVENT.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘‘sporting event’’ 
means any athletic competition, whether profes-
sional, scholastic, or amateur or any perform-
ance of any athlete in such competitions. 
(B) EXCEPTION.—The term ‘‘sporting 
event’’ does not include any activity described 
in section 3704(a)(4) of title 28, United States 
Code. 
(20) STATE.—The term ‘‘State’’ means each of 
the several States of the United States, the District 
of Columbia, and any commonwealth, territory, or 
possession of the United States. 
SEC. 103. PROHIBITION ON OPERATION OF INTERNET GAM-
BLING FACILITIES. 
(a) PROHIBITION.— 
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(1) IN GENERAL.—It shall be unlawful for a 
person to operate an Internet gambling facility that 
offers services to persons in the United States, ex-
cept as authorized under this Act. 
(2) EXCEPTION.—Paragraph (1) shall not 
apply to the operation of an Internet gambling facil-
ity by a person located inside the United States who 
is a licensed operator under this Act; to any quali-
fied race track; to any operator offering qualifying 
lottery transactions; to any operator authorized and 
licensed to provide services relating to bets or wa-
gers by a State or Indian tribe in compliance with 
the law of that State or Indian tribe, as applicable, 
and which solely provides services to participants 
wholly within the boundaries of such State or the In-
dian lands of such Indian tribe; or to any person en-
gaged outside the United States in which bets or wa-
gers are initiated, received, or otherwise made solely 
by individuals located outside the United States. 
(b) CRIMINAL PENALTIES.—Any person who violates 
this section shall be fined under title 18, United States 
Code, imprisoned for not more than 10 years, or both. 
SEC. 104. OFFICE OF INTERNET GAMBLING OVERSIGHT. 
(a) ESTABLISHMENT.— 
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(1) IN
GENERAL.—Not later than 180 days 
after the date of the enactment of this Act, the Sec-
retary shall establish within the Department of the 
Treasury an office to exercise the functions of the 
Secretary under this title. 
(2) 
DESIGNATION.—The 
office 
established 
under paragraph (1) shall be known as the ‘‘Office 
of Internet Gambling Oversight’’ (in this section re-
ferred to as the ‘‘Office’’). 
(b) EXECUTIVE DIRECTOR.— 
(1) IN GENERAL.—The Secretary shall appoint 
as the head of the Office an executive director. 
(2) EXPERIENCE AND EXPERTISE.—The execu-
tive director of the Office shall be appointed by the 
Secretary from among individuals who demonstrate 
the following: 
(A) Skill and experience in gaming regula-
tion and enforcement. 
(B) Experience in criminal investigations 
and law enforcement generally. 
(C) A reputation for good character, hon-
esty, and integrity. 
(3) BACKGROUND INVESTIGATION.—Before ap-
pointing an individual as executive director under 
paragraph (1), the Secretary shall conduct a back-
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ground investigation into the financial stability, in-
tegrity, and responsibility of the individual. 
(4) LIMITATIONS.—The Secretary may not ap-
point under paragraph (1) an individual who— 
(A) has been convicted of a felony; or 
(B) maintains any ownership or equity in-
terest or any ongoing business relationship 
with— 
(i) an operator of a casino gaming fa-
cility, Internet gambling facility, race 
track, lottery, or other regulated gambling 
entity; or 
(ii) A significant vendor. 
(c) DELEGATION OF AUTHORITY.— 
(1) IN GENERAL.—The Secretary may delegate 
to the executive director of the Office any authority, 
duty, or responsibility conferred upon the Secretary 
by this title. 
(2) REGULATORY
AUTHORITY
OF
EXECUTIVE 
DIRECTOR.—The executive director of the office may 
prescribe such regulations and take such actions as 
may be necessary to carry out such authorities, du-
ties, or responsibilities delegated to the executive di-
rector by the Secretary paragraph (1). 
(d) REGULATIONS AND STANDARDS.— 
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(1) REGULATIONS AND STANDARDS NECESSARY 
TO FUNCTION AS QUALIFIED BODY.—With respect to 
the application of this title to the functions of the 
Office as a qualified body under section 105(a)(2), 
the Secretary shall, not later than 270 days after 
the date of the enactment of this Act, prescribe reg-
ulations and standards to implement the require-
ments set out in subsections (d) and (g) of section 
106 and section 107. 
(2) MANNER
OF
PRESCRIPTION.—Regulations 
prescribed under paragraph (1) shall be prescribed 
in accordance with section 553 of title 5, United 
States Code. 
(e) PUBLICATION OF INFORMATION TO FACILITATE 
SUBMITTAL OF APPLICATIONS FOR INITIAL DESIGNATION 
AS QUALIFIED BODIES.—Not later than 150 days after 
the date of the enactment of this Act, the Secretary shall 
publish in the Federal Register such information as may 
be necessary for an applicant to submit a complete appli-
cation under section 105(a)(1)(B). 
(f) DETAIL
OF GOVERNMENT EMPLOYEES.—Any 
Federal Government employee may be detailed to the of-
fice without reimbursement, and such detail shall be with-
out interruption or loss of civil service status or privilege. 
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and designations made under sub-
clause (I). 
(B) APPLICATION.—Each State agency or 
regulatory body of an Indian tribe seeking to be 
designated as a qualified body under subpara-
graph (A) shall submit to the Secretary an ap-
plication therefor in such form and containing 
such information as the Secretary may require, 
which shall be submitted not later than 180 
days after the date of the enactment of this Act 
for any such agency or body that seeks to be 
among those designated under subparagraph 
(A)(i). 
(C) STANDARDS
FOR
QUALIFIED
BOD-
IES.—The Secretary shall prescribe strict 
threshold requirements for the designation of 
agencies or regulatory bodies as qualified bodies 
under this paragraph, including standards re-
lating to the following: 
(i) The size and qualification of staff 
of the qualified body to ensure the quali-
fied body employs sufficient number of en-
forcement agents with experience in gam-
ing regulatory enforcement areas to dis-
charge its intended functions and has the 
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sophistication and resources necessary to 
evaluate issues unique to the Internet envi-
ronment. 
(ii) The length of time the qualified 
body has regulated other forms of gaming 
or e-commerce to ensure designations of 
only those regulatory bodies that have a 
history of demonstrated regulatory enforce-
ment and oversight commensurate with the 
responsibilities imposed under this title. 
(iii) The qualified body’s experience 
and willingness to work with Federal au-
thorities, including the Financial Crimes 
Enforcement Network. 
(iv) The capacity and experience of 
the qualified body in conducting rigorous 
suitability reviews under section 106. 
(v) The adequacy of enforcement and 
regulatory authorities for the qualified 
body under the law of the applicable State 
or Indian tribe, including, at a minimum, 
requirements and authorities on the fol-
lowing: 
(I) To investigate the suitability 
of each person required to be found 
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suitable in connection with an applica-
tion or license under this title. 
(II) To require licensees to main-
tain appropriate procedures to ensure 
the compliance of licensees with the 
provisions of this title and the regula-
tions prescribed thereunder. 
(III) To examine any licensee 
and any books, papers, records, or 
other data of licensees and significant 
vendors relevant to any recordkeeping 
or reporting requirements imposed by 
the agency or regulatory body under 
this title. 
(IV) To summon a licensee, an 
applicant, a significant vendor, an of-
ficer or employee of a licensee, appli-
cant, or significant vendor (including 
a former officer or employee), or any 
person having possession, custody, or 
care of the reports and records re-
quired by the agency or regulatory 
body as a qualified body under this 
title to appear before the agency or 
regulatory body at such time and 
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place named in the summons, to 
produce such books, papers, records, 
or other data, and to give such testi-
mony, under oath, as may be relevant 
or material to any investigation in 
connection with the enforcement o 
this title or any application for a li-
cense under this title. 
(V) To enforce or direct enforce-
ment of a summons in State or tribal 
court, as the case may be. 
(VI) To investigate any violation 
of a provision of this title, any appli-
cable regulation prescribed under this 
title, and any other violation of appli-
cable State or tribal law relating to 
the operation of an Internet gambling 
facility. 
(VII) To conduct continuing re-
views of applicants, licensees, and sig-
nificant vendors and the operation of 
Internet gambling facilities by use of 
technological means, on-site observa-
tion of facilities, including servers, or 
other reasonable means to assure 
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compliance with the provisions of this 
title and any applicable regulation 
prescribed thereunder. 
(VIII) To impose civil penalties 
for violations of this title and any ap-
plicable regulation prescribed there-
under or applicable order issued there-
under, including State or tribal law 
described under this subsection. 
(IX) To ensure that the hard-
ware, software, and communications 
equipment, 
randomness, 
configura-
tion, and network security of the 
Internet gambling facility are tested 
by an independent testing laboratory. 
(X) To resolve disputes between 
licensees and the individuals partici-
pating in Internet gambling via the 
Internet gambling facilities of the li-
censees. 
(vi) Such other standards as the Sec-
retary considers relevant to the ability of 
an agency or regulatory body to serve as 
an effective qualified body. 
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(2) DESIGNATION
OF
OFFICE
OF
INTERNET 
GAMBLING OVERSIGHT.— 
(A) IN
GENERAL.—Not later than 270 
days after the date of the enactment of this 
Act, the Secretary shall designate the Office of 
Internet Gambling Oversight established under 
section 104(a) as a qualified body that may 
issue licenses to Internet gambling facility ap-
plicants and regulate the operation of Internet 
gambling facilities by any applicant who seeks 
to operate a licensed Internet gambling facility 
in the United States. 
(B) CONSTRUCTION.—Subparagraph (A) 
shall not be construed to require any applicant 
seeking a license under this title and submitting 
an application under section 106(c)(1) to sub-
mit such application directly to the Office of 
Internet Gambling Oversight, rather than sub-
mitting such application to a State agency or 
regulatory body of an Indian tribe that has 
been designated by the Office of Internet Gam-
bling Oversight as a qualified body. 
(3) NONQUALIFYING STATE AND TRIBAL REGU-
LATORY
AUTHORITIES
DUE
TO
LIMITED
EXPERI-
ENCE OR CONFLICTS.— 
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(A) IN GENERAL.—The Secretary may not 
approve an application from a State agency or 
regulatory body of an Indian tribe under para-
graph (1) if— 
(i) the agency or regulatory body is lo-
cated in a State or Indian lands that— 
(I) has not opted in under sec-
tion 108 and has not demonstrated an 
intent to opt in under such section; or 
(II) has not opted in under such 
section and has demonstrated an in-
tent to opt in under such section but 
has failed to opt in under such section 
during the 1-year period beginning on 
the date of the agency’s or regulatory 
body’s application; or 
(ii) the members of the agency or reg-
ulatory body are selected or controlled, di-
rectly or indirectly, by a person that has 
any ownership interest in an applicant, li-
censee, or significant vendor under this 
title or an Internet gambling facility, un-
less— 
(I) such applicant or licensee is 
licensed by the Secretary; or 
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(II) such significant vendor is 
certified as suitable by the Secretary 
(and remains so certified at all times 
while providing services as a signifi-
cant vendor to any licensee under this 
title). 
(B) NON-CONTROLLING
INVESTMENT.—A 
non-controlling investment of a State, Indian 
tribe, or local government pension, retirement, 
annuity, or endowment fund shall not be con-
sidered an ownership interest for purposes of 
subparagraph (A)(ii). 
(4) WITHDRAWAL OF DESIGNATION.— 
(A) IN GENERAL.—Beginning on the date 
that is 1 year after the date on which the Sec-
retary prescribes final regulations under this 
title, the Secretary may, after providing at least 
60 days notice to a qualified body of the Sec-
retary’s intent to do so, withdraw the designa-
tion of a qualified body under this section if the 
Secretary determines that— 
(i) the qualified body is not in compli-
ance with the requirements of this title or 
regulations prescribed thereunder; or 
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(ii) the qualified body is not in com-
pliance with the conditions under which 
the qualified body was designated. 
(B) OPPORTUNITY TO COMPLY.— 
(i) IN GENERAL.—The Secretary may 
provide a qualified body who receives no-
tice under subparagraph (A) with an op-
portunity to come into compliance as speci-
fied in that notice for a period of not more 
than 90 days. 
(ii) EXTENSION.—The Secretary may 
extend the period in clause (i) by not more 
than 180 additional days if the qualified 
body has made substantial progress toward 
compliance as of the expiration of the first 
90 day period. 
(C) EFFECT OF NOTICE.—The Secretary 
may prohibit a qualified body that receives no-
tice under subparagraph (A) from issuing new 
licenses under this title until the Secretary de-
termines that the qualified body is in compli-
ance with the requirements of this title and reg-
ulations prescribed thereunder. 
(D) RIGHT TO APPEAL.—A State agency 
or regulatory body of an Indian tribe that has 
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had its designation as a qualified body with-
drawn under subparagraph (A) or (B) may seek 
judicial review of such withdrawal under chap-
ter 7 of title 5, United States Code. 
(5) ACTION UPON WITHDRAWAL OF DESIGNA-
TION.— 
(A) IN GENERAL.—Not later than 30 days 
after the date on which the Secretary withdraws 
a designation of a State agency or regulatory 
body of an Indian tribe under paragraph (5), 
each person with a license issued by the agency 
or regulatory body shall— 
(i)(I) cease offering, accepting, and 
providing services with respect to bets or 
wagers from persons located in the United 
States under such license; and 
(II) return all customer deposits of 
United States customers, or place those 
sums the return of which to United States 
customers is not feasible due to change in 
customer address, bank details, or similar 
difficulty in escrow in an account with a fi-
nancial institution in the United States for 
safekeeping and orderly disposition by the 
Secretary; or 
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(ii) apply for a new license from a dif-
ferent qualified body. 
(B) INTERIM OPERATION.—If a person ap-
plies for a new license under clause (ii) of sub-
paragraph (A), the person may continue the ac-
tivities described in clause (i)(I) of such sub-
paragraph until final action is taken on the li-
cense application by the qualified body. 
(C) INTERIM REGULATORY OVERSIGHT.— 
(i) IN GENERAL.—Until final action is 
taken under subparagraph (B) with re-
spect to a person, the Secretary shall have 
enforcement and regulatory authority over 
the licensed activities of such person. 
(ii) 
DELEGATION.—The 
Secretary 
may delegate enforcement and regulatory 
authority under clause (i) to such qualified 
body as the Secretary considers appro-
priate, with the consent of the qualified 
body. 
(b) OVERSIGHT OF QUALIFIED BODIES.—The Sec-
retary may investigate and take such action as the Sec-
retary considers appropriate with respect to any qualified 
body that appears, based upon the Secretary’s own inquiry 
or based upon credible information provided by other 
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qualified bodies, applicants, licensees, or law enforcement 
officials, to be deficient or substantially less rigorous than 
other qualified bodies in the discharge of its responsibil-
ities under this title. 
SEC. 106. ESTABLISHMENT OF LICENSING PROGRAM FOR 
INTERNET GAMBLING. 
(a) TREASURY RESPONSIBILITIES AND POWERS.— 
The Secretary shall have responsibility and authority for 
the following activities: 
(1) Reviewing and qualifying applicants to be-
come Internet gambling facilities under section 
105(a)(2). 
(2) Reviewing and qualifying agencies and regu-
latory bodies under section 105(a)(2). 
(3) Exercising oversight over qualified bodies to 
ensure that qualified bodies— 
(A) comply with the requirements of this 
title; and 
(B) carry out their regulatory and enforce-
ment functions under this title with appropriate 
diligence. 
(4) Investigating and taking appropriate reme-
dial action with respect to any qualified body under 
section 105. 
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(5) Prescribing such regulations as may be nec-
essary to administer and enforce the provisions of 
this title, including issuing regulations establishing 
rules and procedures for dealing with sums placed in 
escrow 
under 
subsection 
(l)(7), 
section 
105(a)(6)(A)(i)(II), and section 114(b)(1)(E). 
(6) Employing enforcement agents with suffi-
cient training and experience to administer the re-
quirements of this title and the regulations pre-
scribed thereunder. 
(7) Enforcing the requirements of this title by 
all appropriate means provided under this title and 
other provisions of law. 
(b) INTERNET GAMBLING FACILITY LICENSING PRO-
GRAM.— 
(1) AUTHORITY TO ISSUE LICENSES LIMITED 
TO NON-SPORTS RELATED INTERNET GAMBLING.—A 
qualified body may issue licenses under this title 
only for the operation of non-sports related Internet 
gambling facilities. 
(2) AUTHORITY TO OPERATE INTERNET GAM-
BLING FACILITY UNDER VALID LICENSE.— 
(A) IN
GENERAL.—Notwithstanding any 
other provision of law and subject to the provi-
sions of this title, a licensee may accept a bet 
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or wager with respect to Internet gambling 
from an individual located in the United States 
and may offer related services so long as the li-
cense of the licensee issued under this title re-
mains in good standing. 
(B) ONLY
ONE
LICENSE
REQUIRED.— 
Nothing in this title may be construed to re-
quire a person to obtain a license from more 
than one qualified body in order to operate an 
Internet gambling facility under this title. 
(C) SIGNIFICANT VENDORS.— 
(i) IN GENERAL.—Except as provided 
in clause (ii), if a person seeks a certificate 
of suitability from a qualified body to pro-
vide services to a licensee or applicant as 
a significant vendor with respect to an 
Internet gambling facility, such person 
shall not be required to obtain a license 
under this title to provide such services 
with respect to that Internet gambling fa-
cility. 
(ii) EXCEPTION.—If a qualified body 
determines that requiring a person de-
scribed in clause (i) to seek a license is 
necessary to prevent evasion of any provi-
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sion of this title, and requiring so would 
otherwise be consistent with the provisions 
of this title, such qualified body may re-
quire such person to seek a license under 
this title instead of a certificate of suit-
ability. 
(3) 
OPERATION
OUTSIDE
THE
UNITED 
STATES.— 
(A) LIMITATION.—A licensee or an affil-
iate of a licensee may not operate an Internet 
gambling facility that accepts a bet or wager 
from an individual located outside of the United 
States unless the transaction is lawful under 
this Act and is not unlawful in the jurisdiction 
in which the individual is located. 
(B) CONSTRUCTION.—Nothing in this title 
shall be construed to authorize a licensee or a 
foreign affiliate thereof to accept a bet or wager 
from an individual located in any jurisdiction 
outside the United States that prohibits the li-
censee or a foreign affiliate from accepting such 
bet or wager. 
(c) APPLICATION FOR LICENSE.— 
(1) APPLICATION.—A person seeking to operate 
an Internet gambling facility under this title shall 
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submit to the Office of Internet Gambling Oversight 
or any other qualified body an application for a li-
cense therefor at such time, in such form, and in 
such manner as the qualified body receiving the ap-
plication considers appropriate. 
(2) ELEMENTS.—Each application submitted 
under paragraph (1) shall include such information 
as the qualified body receiving the application con-
siders appropriate, including at a minimum the fol-
lowing: 
(A) Complete financial information about 
the applicant. 
(B) Documentation showing the organiza-
tion of the applicant and all related businesses 
and affiliates. 
(C) The criminal and financial history of— 
(i) the applicant; 
(ii) each of the senior executives and 
directors of the applicant; 
(iii) any other person who is in control 
of the applicant; and 
(iv) such other persons as the quali-
fied body considers appropriate. 
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(D) Such other information as may be nec-
essary for the suitability analysis required 
under subsection (d). 
(E) Disclosure of all other applications for 
licenses previously or simultaneously submitted 
under paragraph (1) to other qualified bodies 
and whether those applications are pending, 
were granted, or were denied. 
(F) A detailed description of the appli-
cant’s plan for complying with all applicable re-
quirements and regulations prescribed pursuant 
to this title, with particular emphasis on the ap-
plicant’s ability to comply with the regulations 
prescribed under subsection (g). 
(G) A certification by the applicant that 
the applicant consents to personal jurisdiction 
over the applicant by Federal courts and in the 
courts of the State or Indian tribe of the quali-
fied body to which the applicant has applied 
with respect to a civil action relating to the op-
eration of an Internet gambling facility. 
(3) REPORTS.— 
(A) IN
GENERAL.—Each qualified body 
shall report all applicants for licensure and the 
dispositions of their applications to the Sec-
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retary promptly upon disposition of each appli-
cation or in such intervals as the Secretary may 
prescribe. 
(B) CONTENTS.—Each report under sub-
paragraph (A) shall include such information or 
documentation as the Secretary may require. 
(d) STANDARDS
FOR LICENSE ISSUANCE; SUIT-
ABILITY
QUALIFICATIONS
AND
DISQUALIFICATION 
STANDARDS.— 
(1) SUITABILITY FOR LICENSING.— 
(A) IN GENERAL.—No applicant shall be 
eligible to obtain a license under this title un-
less a qualified body, with whom the applicant 
has filed an application for a license, has deter-
mined, upon completion of a background check 
and investigation, that the applicant, any per-
son considered to be in control of the applicant, 
all significant vendors of the applicant, and any 
other person determined by the qualified body 
as having significant influence on the applicant 
are suitable for licensing. 
(B) APPLICATION
AS
REQUEST
FOR
DE-
TERMINATION OF SUITABILITY.—An application 
for a license submitted to a qualified body 
under this title constitutes a request for a de-
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termination of the general character, integrity, 
and ability to participate or engage in or be as-
sociated with an Internet gambling facility, as 
appropriate, of the applicant, any person con-
sidered to be in control of the applicant, all sig-
nificant vendors of the applicant, and all other 
persons determined by the qualified body as 
having significant influence on the applicant. 
(C) ASSOCIATES.— 
(i) IN GENERAL.—If an entity under-
going a determination of suitability under 
this paragraph is a corporation, partner-
ship, or other business entity, a back-
ground check and investigation shall be 
carried out by the applicable qualified body 
with respect to the president or other chief 
executive of the corporation, partnership, 
or business entity and such other partners 
or senior executives and directors or share-
holders of the corporation, partnership, or 
entity as the qualified body considers ap-
propriate. 
(ii) MINIMUM
DETERMINATION.—In 
carrying out clause (i), the qualified body 
shall, at a minimum, carry out a suitability 
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review of the 5 individuals receiving the 
most compensation (whether in the form of 
salary, bonus, dividends, distributions, dis-
bursement of profits, or otherwise) from 
the entity, any person that controls the en-
tity, and such other individuals or entities 
as the qualified body considers appro-
priate. 
(D) PARITY OF INVESTIGATION AND ANAL-
YSIS.— 
(i) DILIGENCE WITH RESPECT TO SIG-
NIFICANT
VENDORS
AND
AFFILIATES.— 
Each investigation and analysis of the suit-
ability of a person with respect to an appli-
cation for a license under this title, other 
than the applicant for such license, shall be 
carried out with the same degree of dili-
gence as the investigation and analysis of 
the suitability of the applicant. 
(ii) STRINGENCY
WITH
RESPECT
TO 
CASINO GAMING FACILITIES.—Each quali-
fied body that also issues licenses to casino 
gaming facilities shall ensure that each in-
vestigation and analysis of the suitability 
of a person carried out by the qualified 
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body under this subsection is no less strin-
gent than a suitability review carried out 
by the qualified body for the licensing of 
casino gaming facilities. 
(2) SUITABILITY STANDARDS.—For purposes of 
this title, an applicant and any other person subject 
to a determination of suitability under paragraph (1) 
may only be considered suitable under this title if 
the applicant or person demonstrates to the applica-
ble qualified body by clear and convincing evidence 
that the applicant or person— 
(A) is a person of good character, honesty, 
and integrity; 
(B) is a person whose prior activities, 
criminal record, if any, reputation, habits, and 
associations do not— 
(i) pose a threat to the public interest 
or to the effective regulation and control of 
Internet gambling facilities; or 
(ii) create or enhance the dangers of 
unsuitable, unfair, or illegal practices, 
methods, and activities in the conduct of 
Internet gambling facilities or the carrying 
on of the business and financial arrange-
ments incidental to such facilities; 
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(C) is capable of and likely to conduct the 
activities for which the applicant is licensed or 
receives a certificate of suitability in accordance 
with the provisions of this title, any regulations 
prescribed under this title, and all other appli-
cable laws; 
(D) in the case of an applicant, has or 
guarantees acquisition of adequate business 
competence and experience in the operation of 
casino gaming facilities, Internet gambling fa-
cilities, or Internet gambling facilities; 
(E) in the case of an applicant, has or will 
obtain sufficient financing for the nature of the 
proposed operation and from a suitable source; 
and 
(F) has disclosed to the qualified body all 
known affiliations or relationships, whether di-
rect or indirect, with persons and assets of per-
sons described by section 114(b)(2). 
(3) UNSUITABLE.—An applicant or any other 
person may not be determined to be suitable under 
this subsection if the applicant or such person— 
(A) has failed to provide information and 
documentation material to a determination of 
suitability for licensing under paragraph (1); 
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(B) has supplied information which is un-
true or misleading as to a material fact per-
taining to any such determination; 
(C) has been convicted of an offense that 
is punishable by imprisonment of more than 1 
year; 
(D) is delinquent in the payment of any 
applicable Federal or State tax, tax penalty, ad-
dition to tax, or interest owed to a jurisdiction 
in which the applicant or person operates or 
does business, unless such payment has been 
extended or is the subject of a pending judicial 
or administrative dispute; 
(E) has not certified in writing, pursuant 
to subsection (c)(2)(G), that the person submits 
to personal jurisdiction in the United States; 
(F) knowingly accepts or knowingly has ac-
cepted bets or wagers on sporting events from 
persons located in the United States in violation 
of a provision of Federal or State law; 
(G) has affiliated with any person that 
knowingly accepts or knowingly has accepted 
bets or wagers on sporting events from persons 
located in the United States in violation of a 
provision of Federal or State law; or 
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(H) fails to comply with such other stand-
ard as the applicable qualified body considers 
appropriate. 
(4) ONGOING REQUIREMENT.—A licensee (and 
any other person who is required to be determined 
to be suitable for licensing in connection with such 
licensee) shall meet the standards necessary to be 
suitable for licensing or to receive a certificate of 
suitability, as the case may be, throughout the term 
of the license. 
(5) CERTIFICATE OF SUITABILITY FOR SIGNIFI-
CANT VENDORS.— 
(A) IN GENERAL.—If a qualifying body de-
termines under paragraph (1) that a significant 
vendor of an applicant is suitable under such 
paragraph, the qualifying body shall issue a cer-
tificate to such vendor that certifies the suit-
ability of such vendor. 
(B) REVOCATION
OF
CERTIFICATE.—A 
qualified body that issues a certificate to a sig-
nificant vendor under subparagraph (A) shall 
revoke the certificate if at any time the signifi-
cant vendor no longer meets the standards nec-
essary for a determination of suitability. 
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(C) RELIANCE ON CERTIFICATE.—A quali-
fied body may, but need not, rely upon a certifi-
cate issued under subparagraph (A) to a signifi-
cant vendor with respect to one application in 
the review of the same significant vendor in 
other license applications. 
(D) CERTIFICATES
ISSUED
BY
OTHER 
QUALIFIED BODIES.—A qualified body may, but 
need not, accept a certificate issued to a signifi-
cant vendor by another qualified body as evi-
dence of the suitability of the significant ven-
dor. 
(6) OTHER VENDORS.— 
(A) NOTICE.—A licensee shall promptly 
notify the qualified body that issued the license 
to the licensee of all persons that are not sig-
nificant vendors that— 
(i) direct, provide, or solicit customers 
to or for the licensee’s Internet gambling 
facility, or materially assist in any of those 
tasks, in return for a commission or other 
fee; 
(ii) hold themselves out to the public 
as offering bets or wagers on the licensee’s 
behalf; 
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(iii) offer bets or wagers under their 
own names or brands but using and rely-
ing on the licensee’s Internet gambling fa-
cilities; 
(iv) license trademarks, trade names, 
service marks, or other similar intellectual 
property to the licensee; or 
(v) own a substantial interest in or 
control a person described in clause (i), 
(ii), (iii), or (iv). 
(B) SUITABILITY OF OTHER VENDORS AND 
PERSONS.—A qualified body that reviews an ap-
plication of an applicant for a license or issues 
a license to a licensee may, at the sole discre-
tion of the qualified body and on a case-by-case 
basis, require as a condition of such license that 
a person meet suitability requirements under 
paragraph (1) if the person— 
(i) is described in subparagraph (A) 
with respect to the applicant or licensee; 
(ii) provides services to an applicant 
or licensee and the qualified body deter-
mines that, with respect to such services, 
there is a substantial risk of circumvention 
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of the suitability requirements applicable 
to significant vendors; or 
(iii) is associated with the applicant or 
licensee or one of the significant vendors of 
the applicant or licensee and the qualified 
body determines such person may pose a 
threat to the integrity of Internet gambling 
facilities operated by the applicant or li-
censee. 
(C) INFORMATION.—A qualified body may 
require such information from an applicant, li-
censee, significant vendor or other person iden-
tified in this paragraph as the qualified body 
considers necessary to carry out this paragraph. 
(7) ENFORCEMENT ACTIONS.— 
(A) IN GENERAL.—If the Secretary or the 
qualified body that issued a license to a licensee 
finds that the licensee, or any other person that 
is subject to a required determination of suit-
ability in connection with such licensee, ceases 
to meet the suitability requirements of this sub-
section at any time during the tenure of the li-
cense, the Secretary or the qualified body may 
take action to protect the public interest, in-
cluding, if the Secretary or qualified body con-
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siders necessary, the suspension or termination 
of the license. 
(B) IMPOSITION OF CONDITIONS INCLUD-
ING REMOVAL OF PARTIES.—Notwithstanding a 
determination under subparagraph (A), the 
Secretary or the qualified body that issued a li-
cense to a licensee may allow the licensee to 
continue engaging in licensed activities by im-
posing conditions on the person to which sub-
paragraph (A) is applicable under penalty of 
revocation or suspension of a license or certifi-
cate of suitability, including— 
(i) the identification of any person de-
termined to be unsuitable; and 
(ii) the establishment of appropriate 
safeguards to ensure such person is ex-
cluded from any management or involve-
ment in operation of the licensed activities. 
(C) SPECIAL RULE FOR ENFORCEMENT OF 
PROHIBITION
ON
UNLAWFUL
SPORTS
WAGER-
ING.—If the Secretary or a qualified body finds 
that a licensee is no longer suitable under this 
subsection because such licensee has accepted 
bets or wagers as described in paragraph (3)(F) 
or has affiliated as described in paragraph 
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(3)(G), the Secretary or the qualified body, as 
the case may be, shall revoke the license of such 
licensee in addition to the imposition of such 
other penalties as the Secretary or qualified 
body considers appropriate under this title. 
(8) ADMINISTRATIVE PROVISIONS.— 
(A) BACKGROUND CHECK AND INVESTIGA-
TION.—Each qualified body shall establish 
standards and procedures for conducting back-
ground checks and investigations for purposes 
of this subsection. 
(B) NON-ADMISSIBILITY OF STATEMENTS 
FOR
PURPOSES
OF
DEFAMATION
ACTIONS.— 
Any written or oral statement made in the 
course of an official proceeding of the Secretary 
or a qualified body, by any member thereof, or 
any witness testifying under oath which is rel-
evant to the purpose of the proceeding and re-
lates to the review of an application for a li-
cense under this title shall not be admissible in 
any Federal or State court in a civil action to 
prove defamation. 
(C) PRESERVATION OF PRIVILEGE RECOG-
NIZED UNDER OTHER PROVISIONS OF LAW.— 
Any privilege recognized under any other provi-
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sion of Federal, State, or tribal law, including 
attorney-client, physician-patient, and account-
ant-client privileges, shall not be waived or lost 
because a document or communication other-
wise protected by the privilege is disclosed to 
the Secretary or a qualified body under this 
title. 
(D) CONFIDENTIALITY.— 
(i) Except as set forth in provision (ii) 
of this subsection, any communication or 
document, except information that is al-
ready public, shall be treated as confiden-
tial and may not be disclosed, in whole or 
part, by the Secretary or a qualified body 
without a lawful court order or as other-
wise required by law, if the communication 
or document is— 
(I) required by the Secretary or 
qualified body to be disclosed by the 
applicant, licensee, or significant ven-
dor, including applications, financial 
or earnings information, and criminal 
records, whether of the applicant or li-
censee or of any affiliate, employee, 
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officer, director or significant vendor 
thereof, or of any other third-party; 
(II) prepared or obtained by an 
agent or employee of the Secretary or 
qualified body that contains informa-
tion described in clause (i); or 
(III) submitted by the applicant, 
licensee, or significant vendor in con-
nection with a pending application or 
existing license. 
(ii) Nothing in this subsection shall 
limit the disclosure of information provided 
by an applicant, licensee, or significant 
vendor to the Secretary or qualified body 
to any official of the United States, or to 
any State regulatory or enforcement agen-
cy, requesting such information for any au-
thorized purpose under Federal or State 
law, including but not limited to the ad-
ministration or enforcement of Federal or 
State laws concerning internet gambling, 
U.S. tax laws, consumer protection, data 
protection, financial regulation, or for the 
purposes of any civil or criminal investiga-
tion. 
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(e) 
ASSESSMENTS
FOR
ADMINISTRATIVE
EX-
PENSES.— 
(1) USER FEES.— 
(A) IN
GENERAL.—The cost of admin-
istering this title with respect to each applicant, 
licensee, and significant vendor, including the 
cost of any review or examination of a licensee 
or its significant vendors to ensure compliance 
with the terms of the license and this title, shall 
be assessed by the qualified body receiving an 
application or issuing a license against the ap-
plicant, licensee, or significant vendor, as the 
case may be, by written notice in an amount 
that the qualified body determines is necessary 
to meet the qualified body’s expenses in car-
rying out such administration, review, or exam-
ination. 
(B) EXPENSES FOR REVIEW OR EXAMINA-
TION.—Expenses that are attributable to review 
or examination of a particular applicant, li-
censee, or significant vendor shall be assessed 
under subparagraph (A) against that applicant, 
licensee, or significant vendor. 
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(C) EXPENSES FOR GENERAL ADMINISTRA-
TION.—Expenses for general administration 
shall be assessed against all licensees equally. 
(D) USER
FEES
ESTABLISHED
BY
SEC-
RETARY.— 
(i) IN GENERAL.—The Secretary may 
establish user fees to be paid by applicants, 
licensees, 
and 
significant 
vendors 
in 
amounts the Secretary determines nec-
essary to meet the Secretary’s cost of ad-
ministering this title. 
(ii) COLLECTION BY QUALIFIED BOD-
IES.—Qualified bodies shall collect user 
fees established under clause (i) from ap-
plicants, licensees, and significant vendors 
and turn them over promptly to the Sec-
retary. 
(iii) DISPOSITION
OF
USER
FEES.— 
Amounts assessed by the Secretary as user 
fees under clause (i) shall— 
(I) be available to the Secretary 
to cover expenses incurred by the Sec-
retary in carrying out the provisions 
of this title; and 
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(II) not be construed to be Gov-
ernment funds or appropriated mon-
ies, or subject to apportionment for 
the purposes of any other provision of 
law. 
(E) DISPOSITION OF USER FEES.—Except 
as provided in subparagraph (D), amounts as-
sessed by a qualified body as user fees under 
this paragraph shall— 
(i) be available to the qualified body 
to cover expenses incurred by the qualified 
body in carrying out the provisions of this 
title; and 
(ii) except in the case of the Office of 
Internet Gambling Oversight established 
under section 104, not be construed to be 
Government funds or appropriated monies, 
or subject to apportionment for the pur-
poses of any other provision of law. 
(F) COLLECTION.—If a licensee or signifi-
cant vendor fails to pay a user fee to a qualified 
body under this paragraph after the assessment 
of the fee has become final— 
(i) the qualified body may recover the 
amount assessed by action in a court of 
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the State or Indian tribe of the qualified 
body or in the United States district court 
in the State in which such qualified body 
is located, along with any costs of collec-
tion and attorney fees; and 
(ii) such failure may be grounds for 
denial of an application for a license under 
this title or revocation of a license or cer-
tificate of suitability under this title. 
(G) PAYMENT
OF
SIGNIFICANT
VENDOR 
USER FEES BY APPLICANTS AND LICENSEES.— 
A user fee assessed against a significant vendor 
may be paid by an applicant or licensee on be-
half of the significant vendor. 
(2) DIRECT
AND
EXCLUSIVE
OBLIGATION
OF 
LICENSEE.—With respect to a licensee, a user fee 
shall be the direct and exclusive obligation of the li-
censee and may not be deducted from amounts avail-
able as deposits to any person placing a bet or wager 
with the licensee. 
(f) APPROVAL OF LICENSE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), a qualified body may issue to an appli-
cant a license under this title for the operation of an 
Internet gambling facility if the applicant meets the 
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criteria established by the qualified body under this 
title. 
(2) AUTHORITY OF SECRETARY TO REVOKE LI-
CENSES.— 
(A) IN GENERAL.—Notwithstanding any li-
cense or certificate of suitability issued by a 
qualified body, the Secretary may suspend or 
revoke such license or certificate if the Sec-
retary has reason to believe that the recipient 
does not meet the suitability requirements es-
tablished under subsection (d) or, as applicable, 
any other requirement imposed on a licensee 
under this title. 
(B) NO AUTHORITY TO OVERTURN DENI-
ALS AND TERMINATIONS.—The Secretary may 
not overturn a decision by a qualified body 
(other than the Office of Internet Gambling 
Oversight) to deny or to terminate a license or 
to deny or revoke a certificate of suitability. 
(3) CONFLICTS
BETWEEN
QUALIFIED
BOD-
IES.—If a qualified body denies a license, terminates 
a license, denies a certificate of suitability, or re-
vokes a certificate of suitability to a person and 
within 1 year of such denial, termination, or revoca-
tion another qualified body grants such person a li-
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cense or certificate of suitability, the Secretary 
shall— 
(A) commence a review of such license or 
certificate of suitability; and 
(B) not later than 90 days after such com-
mencement, determine whether to act under 
paragraph (2). 
(4) CONTROL
DEFINED.—In this subsection, 
the term ‘‘control’’, with respect to a person, means 
the possession, directly or indirectly, of the power to 
direct or influence the direction of the management 
or policies of the person, whether through the owner-
ship of voting securities, through a management, ex-
ecutive officer, or board position, by shareholders or 
similar agreement, or otherwise. 
(g) SAFEGUARDS REQUIRED OF LICENSEE.— 
(1) IN GENERAL.—No qualified body shall issue 
a license under this title unless the qualified body— 
(A) prescribes regulations that prohibit a 
person from receiving or retaining a license 
under this title unless the person maintains or 
requires mechanisms so that the requirements 
described in paragraph (2) are met with respect 
to the operation of an Internet gambling facil-
ity; and 
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(B) reviews the applicant’s ability to com-
ply with the requirements of this subsection, in-
cluding by testing the applicant’s systems and 
software, or by mandating such testing by an 
independent, qualified entity. 
(2) SAFEGUARDS.—The requirements described 
in this paragraph are as follows: 
(A) PROHIBITION
ON
UNDERAGE
GAM-
ING.—Appropriate safeguards to ensure, to a 
reasonable degree of certainty, that the indi-
vidual placing a bet or wager is not younger 
than 21 years of age, at the time of registration 
and all log ons. 
(B) 
PROHIBITED
LOCATIONS.—Appro-
priate safeguards to ensure, to a reasonable de-
gree of certainty, that the individual placing a 
bet or wager is physically located in a jurisdic-
tion that has opted in under section 108 at the 
time the bet or wager is placed, at the time of 
registration and all log ons. 
(C) COLLECTION OR REPORTING OF CUS-
TOMER
TAXES.—Appropriate mechanisms to 
ensure, to a reasonable degree of certainty, that 
all taxes relating to Internet gambling from 
persons engaged in bets or wagers relating to 
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such Internet gambling are collected or re-
ported, as required by law, at the time of any 
payment of proceeds of such bets or wagers. 
(D) COLLECTION OR REPORTING OF TAXES 
OF LICENSEE.—Appropriate mechanisms to en-
sure that all taxes relating to the operation of 
an Internet gambling facility from any licensee 
are collected as required by law and that ade-
quate 
records 
to 
enable 
later 
audit 
or 
verification are maintained. 
(E) REPORTING OF FEES OF LICENSEE.— 
Appropriate mechanisms to ensure that ade-
quate records are maintained to enable later 
audit or verification that the licensee has paid 
all fees required under this title. 
(F) SAFEGUARDS
AGAINST
FINANCIAL 
CRIME.—Appropriate safeguards to prevent, to 
a reasonable degree of certainty, fraud, money 
laundering, tax evasion, and terrorist financing. 
(G) SAFEGUARDS
AGAINST
COMPULSIVE 
PLAY.—Appropriate safeguards to ensure, to a 
reasonable degree of certainty, compliance with 
the requirements of section 107(b). 
(H) PRIVACY
SAFEGUARDS.—Appropriate 
safeguards to protect, to a reasonable degree of 
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certainty, the privacy and Internet security of 
any person engaged in bets or wagers with the 
licensee’s Internet gambling facility. 
(I) PAYMENT
OF
ASSESSMENTS.—Appro-
priate mechanisms to ensure that any user fee 
required under subsection (e) is paid to the 
qualified body. 
(J) HONEST
GAMES.—Appropriate safe-
guards to ensure, to a reasonable degree of cer-
tainty, that Internet gambling games are fair 
and honest, and to prevent, to a reasonable de-
gree of certainty, cheating, including collusion, 
and use of cheating devices, including use of 
software programs (sometimes referred to as 
‘‘bots’’) that make bets or wagers according to 
algorithms. 
(K) SEGREGATION OF PLAYER FUNDS.— 
Appropriate safeguards to ensure player funds 
are held in accounts segregated from the funds 
of licensees and are otherwise protected from 
corporate insolvency, financial risk, or criminal 
or civil actions against the licensee. 
(L) OTHER REQUIREMENTS.—Such other 
mechanisms and safeguards as the qualified 
body may establish by regulation. 
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(h) LOCATION OF REMOTE GAMING EQUIPMENT.— 
(1) WITHIN THE UNITED STATES.—A licensee 
shall maintain its remote gaming equipment within 
the territory of the United States throughout the 
term of its license. 
(2) WITHIN TERRITORY OF QUALIFIED BODY.— 
A qualified body may require a licensee of the quali-
fied body to locate the remote gaming equipment of 
the licensee within the territory of the State or In-
dian tribe of the qualified body if the qualified body 
determines that such requirement will advance the 
regulatory interests of this title. 
(i) LICENSE IS A PRIVILEGE NOT A RIGHT.— 
(1) IN
GENERAL.—A decision by a qualified 
body not to grant a person a license or certificate of 
suitability, or to terminate a license or revoke a cer-
tificate of suitability, is not reviewable under the law 
of any jurisdiction other than the jurisdiction of the 
qualified body. 
(2) APPEAL.—With respect to a decision de-
scribed in paragraph (1) of a qualified body, the 
State or Indian tribe of the jurisdiction of the quali-
fied body may, but need not, provide an opportunity 
to appeal such decision. 
(j) TERM, RENEWAL, AND TRANSFER OF LICENSE.— 
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(1) TERM.—Any license issued under this title 
shall be issued for a 5-year term beginning on the 
date of issuance. 
(2) RENEWAL.—A license may be renewed in 
accordance with requirements prescribed by the 
qualified body that issued the license under this 
title. 
(3) TRANSFER.—A transfer of a license, change 
of control of a licensee, or change in significant ven-
dor shall require prior approval by the qualified body 
that issued the license. The qualified body shall at 
a minimum ensure the suitability requirements of 
subsection (d) continue to be satisfied before approv-
ing any such transfer or change. 
(k) ADMINISTRATIVE PROVISIONS.— 
(1) 
DETERMINATION
OF
INTERNET
GAM-
BLING.— 
(A) INITIAL
DETERMINATION
BY
QUALI-
FIED BODY.—A determination whether a game, 
hand, tournament, or other contest of a licensee 
is authorized Internet gambling under this Act, 
and not prohibited sports-related Internet gam-
bling, shall be made in the first instance by the 
qualified body that issued the license to such li-
censee under this title. 
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(B) CHALLENGES.— 
(i) IN GENERAL.—A licensee or quali-
fied body may challenge whether a game, 
hand, tournament, or other contest of an-
other licensee is sports-related Internet 
gambling. 
(ii) CHALLENGE
MADE
WITH
SEC-
RETARY.—A challenge made under clause 
(i) shall be made with the Secretary. 
(iii) DETERMINATION MADE BY SEC-
RETARY WITHIN 30 DAYS.—If a challenge 
is made under clause (i), the Secretary 
shall make a determination whether the 
game, hand, tournament, or other contest 
is sports-related Internet gambling not 
later than 30 days after the date on which 
the challenge is made. 
(iv) OPERATION
UNTIL
DETERMINA-
TION.—A licensee that offers a game, 
hand, tournament, or other contest that is 
challenged under clause (i) may continue 
to offer such game, hand, tournament, or 
other contest until the Secretary makes a 
determination under clause (iii). 
(C) APPEALS.— 
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(i) IN GENERAL.—Not later than 30 
days after the date on which the Secretary 
makes a determination under subpara-
graph (B)(iii), a licensee or a qualified 
body may appeal such determination under 
chapter 7 of title 5, United States Code. 
(ii) OPERATION PENDING APPEAL.— 
During the period in which a game, hand, 
tournament, or other contest is being chal-
lenged through an appeal under clause (i), 
the United States District Court for the 
District of Columbia may allow a licensee 
to continue offering the game, hand, tour-
nament, or other contest in full compliance 
with the terms of its existing license and 
any other conditions the court considers 
necessary, if the court determines that— 
(I) the licensee has a reasonable 
likelihood of success on the merits; 
and 
(II) allowing the licensee to con-
tinue offering the challenged game, 
hand, tournament, or other contest 
while the appeal is pending will not 
threaten the public interest. 
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(2) CHALLENGES UNDER STATE LAW.—Except 
as provided in paragraph (1) and unless otherwise 
specifically provided in this title, actions taken by a 
qualified body other than the Office of Internet 
Gambling Oversight may be challenged by applicants 
and licensees only as permitted under the law of the 
State or Indian tribe in which the qualified body is 
located. 
(3) SUMMONS.— 
(A) IN
GENERAL.—The Secretary may 
issue a summons with respect to an applicant 
or licensee necessary to carry out the provisions 
of this title. 
(B) PRODUCTION AT DESIGNATED SITE.— 
A summons issued by the Secretary pursuant to 
this paragraph may require that books, papers, 
records, or other data stored or maintained at 
any place be produced at any— 
(i) business location of a licensee or 
applicant for a license; 
(ii) designated location in the State or 
Indian lands of the applicable qualified 
body; or 
(iii) designated location in the District 
of Columbia. 
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(C) NO LIABILITY FOR EXPENSES.—The 
Secretary shall not be liable for any expense in-
curred in connection with the production of 
books, papers, records, or other data under this 
paragraph. 
(D) SERVICE OF SUMMONS.—Service of a 
summons issued under this subsection may be 
by registered mail or in such other manner cal-
culated to give actual notice as determined by 
the Secretary. 
(E) AUTHORIZATION TO INVOKE AID OF 
COURTS.—The Secretary may invoke the aid of 
any court of the United States to compel com-
pliance with the summons within the jurisdic-
tion of which— 
(i) the investigation which gave rise to 
the summons or the examination is being 
or has been carried on; 
(ii) the person summoned is an inhab-
itant; or 
(iii) the person summoned carries on 
business or may be found. 
(F) POWER OF COURTS TO COMPEL AP-
PEARANCE.—The court may issue an order re-
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quiring the person summoned to appear before 
the Secretary— 
(i) to produce books, papers, records, 
and other data; 
(ii) to give testimony as may be nec-
essary to explain how such material was 
compiled and maintained; 
(iii) to allow the Secretary to examine 
the business of a licensee; and 
(iv) to pay the costs of the proceeding. 
(G) CONTUMACY OR REFUSAL.—Any fail-
ure to obey the order of the court under this 
paragraph may be punished by the court as a 
contempt thereof. All process in any case under 
this subsection may be served in any judicial 
district in which such person may be found. 
(l) DISCIPLINARY ACTION.— 
(1) IN GENERAL.—A licensee may be subject to 
disciplinary action, including the imposition of civil 
penalties or suspension or revocation of its license, 
by a qualified body that issued a license to the li-
censee or by the Secretary if the licensee fails to 
comply with any provision of this title, any regula-
tion prescribed thereunder, or any other applicable 
provision of State or tribal law. 
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(2) INITIATING
AGENCY.—Only the Secretary 
or the qualified body which granted the license to a 
licensee may initiate disciplinary action under this 
title against the licensee. 
(3) SAVINGS PROVISION.—Nothing in this sub-
section shall be construed to limit or alter the appli-
cation of any law other than this title to a licensee 
or affiliated person, or to effect the enforcement of 
such law by the appropriate law enforcement admin-
istrative, or regulatory entity. 
(4) DISCIPLINARY PROCEDURES.— 
(A) IN GENERAL.—A qualified body shall 
commence disciplinary action under this sub-
section against a licensee upon service of a for-
mal written complaint upon the licensee, with a 
copy forwarded to the Secretary, that sets forth 
the grounds for the disciplinary action and the 
proposed penalty that is being sought, which 
may include any or all of the imposition of a 
fine as provided pursuant to subsection (m)(1) 
or limitation, condition, suspension or revoca-
tion of the license. 
(B) IN ACCORDANCE WITH LAW OF JURIS-
DICTION OF QUALIFIED BODY.—The process for 
disciplinary action under this subsection shall 
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proceed according to the law of the jurisdiction 
of the applicable qualified body. 
(5) FINALITY OF ACTION AND APPEALS.— 
(A) FINALITY.—Any disciplinary action 
under this subsection shall be treated as a final 
action. 
(B) ACTION BY QUALIFIED BODIES.—A li-
censee aggrieved by disciplinary action under 
this subsection by a qualified body may file an 
appeal in the jurisdiction where the qualified 
body taking such action is located only to the 
extent permitted by the law of such jurisdiction, 
or in Federal court as authorized by Federal 
law. 
(6) PENDING APPEAL.—During the period in 
which a suspension or revocation of an existing li-
cense is being challenged through a pending judicial 
proceeding, the court handling the challenge may 
allow the licensee to continue offering bets and wa-
gers in full compliance with the terms of its existing 
license and any other conditions the court considers 
necessary, if the court determines that— 
(A) the appellant has a reasonable likeli-
hood of success on the merits; and 
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(B) allowing the appellant to continue of-
fering bets and wagers while the appeal is pend-
ing will not threaten the public interest. 
(7) RETURN OF CUSTOMER FUNDS.—If a li-
censee’s license is revoked and no appeal pursuant 
to paragraph (5) is pending, the licensee shall— 
(A) to the degree feasible, return all cus-
tomer funds to United States customers in an 
orderly manner not later than 30 days after the 
date of the revocation of the license; and 
(B) place in escrow those sums return of 
which to United States customers is not feasible 
due to change in customer address, bank de-
tails, or similar difficulty in an account with a 
financial institution in the United States for 
safekeeping and orderly disposition by the Sec-
retary. 
(8) REFERRAL TO ATTORNEY GENERAL.—If, in 
the course of carrying out the provisions of this title, 
the Secretary or a qualified body finds a substantial 
basis to believe that a person has violated section 
103(a), the Secretary or qualified body shall refer 
such matter to the Attorney General. 
(m) CIVIL MONETARY PENALTIES.— 
(1) IN GENERAL.— 
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(A) PENALTIES ASSESSED BY QUALIFIED 
BODIES.—A qualified body may assess upon 
any licensee or other person subject to the re-
quirements of this title for each violation of this 
title or any regulation prescribed or order 
issued under this title, a civil penalty of not 
more than the greater of— 
(i) the amount involved in the viola-
tion, if any; 
(ii) $250,000 for an individual and 
$750,000 for a corporation; or 
(iii) such other amount as provided 
under the applicable State or tribal law of 
the qualified body. 
(B) 
PENALTIES
ASSESSED
BY
SEC-
RETARY.—The Secretary may assess upon any 
licensee or other person subject to the require-
ments of this title for each violation of this title 
or any regulation prescribed or order issued 
under this title, a civil penalty of not more than 
the greater of— 
(i) the amount involved in the viola-
tion, if any; or 
(ii) $250,000 for an individual and 
$750,000 for a corporation. 
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(C) NOT CUMULATIVE.— 
(i) IN GENERAL.—The penalties au-
thorized under subparagraphs (A) and (B) 
shall not be cumulative and only one such 
penalty may be assessed per violation. 
(ii) CONSTRUCTION.—Clause (i) shall 
not be construed to limit the authority of 
a qualifying body or the Secretary, as the 
case may be, to pursue a civil penalty for 
each violation of a related series of viola-
tions. 
(D) FAILURE
TO
OBTAIN
A
LICENSE.— 
Notwithstanding any other provision of law, the 
Secretary shall assess upon a person that is re-
quired to maintain a license under this title, but 
fails to maintain a license under this title, a 
civil penalty of not more than the greater of— 
(i) the amount of bets or wagers 
taken by the person from players in the 
United States during the period that a li-
cense was needed but not held by the per-
son; or 
(ii) $1,000,000 per day that the per-
son accepts bets or wagers from players in 
the United States during the period that a 
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license was needed but not held by the per-
son. 
(E) 
CONSTRUCTION.—Nothing 
in 
this 
paragraph shall be construed to affect the abil-
ity of a law enforcement official to seek crimi-
nal penalties against a person. 
(2) ASSESSMENT.— 
(A) ENFORCEMENT
BY
QUALIFIED
BOD-
IES.—Qualified bodies and such other entities 
as are authorized by applicable State or tribal 
law shall enforce the provisions of this title 
under the law of the applicable State or Indian 
tribe, and penalties shall be determined, review-
able, collectable, and disposed of as provided 
under such law. 
(B) ENFORCEMENT BY SECRETARY.— 
(i) WRITTEN
NOTICE.—Any penalty 
imposed under paragraph (1)(B) shall be 
assessed and collected by the Secretary by 
written notice. 
(ii) FINALITY
OF
ASSESSMENT.—If, 
with respect to any assessment under para-
graph (1)(B), a hearing is not requested 
pursuant to clause (v) within the period of 
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time allowed under such clause, the assess-
ment shall constitute a final agency order. 
(iii) 
AUTHORITY
TO
MODIFY
OR 
REMIT
PENALTY.—The Secretary may 
compromise, modify, or remit any penalty 
which the Secretary may assess or has al-
ready assessed under paragraph (1)(B). 
(iv) MITIGATING FACTORS.—In deter-
mining the amount of any penalty imposed 
under paragraph (1)(B), the Secretary 
shall take into account the appropriateness 
of the penalty with respect to the fol-
lowing: 
(I) The size of the financial re-
sources and the good faith of the per-
son against whom the penalty is as-
sessed. 
(II) The gravity of the violation. 
(III) The history of previous vio-
lations. 
(IV) Such other matters as jus-
tice may require. 
(v) HEARING.—The person against 
whom any penalty is assessed under para-
graph (1)(B) shall be afforded a hearing 
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by the Secretary if such person submits to 
the Secretary a request for such hearing 
not later than 20 days after the date of the 
issuance of the notice of assessment. 
(vi) COLLECTION.— 
(I) REFERRAL.—If any person 
fails to pay an assessment after any 
penalty assessed under this subpara-
graph has become final, the Secretary 
shall recover the amount assessed by 
action in the appropriate United 
States district court. 
(II) SCOPE OF REVIEW.—In any 
civil action under subclause (I), the 
validity and appropriateness of the 
penalty shall be subject to review for 
abuse of agency discretion. 
(vii) DISBURSEMENT.—All penalties 
collected under authority of paragraph 
(1)(B) shall be deposited into the Treasury 
of the United States. 
(3) CONDITION FOR LICENSURE.—Payment by 
a licensee of any civil penalty assessed under this 
subsection that has become final shall be a require-
ment for the retention of its license. 
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be prohibited on the Indian lands of such Indian 
tribe. 
(3) SUBSEQUENT CHANGE OF ELECTION.— 
(A) NOTICE OF CHANGE.—Except as pro-
vided in paragraph (4), in a case in which the 
principal chief or other chief executive officer or 
designated authority of an Indian tribe has sub-
mitted notice under paragraph (1) or (2) to 
opt-in or opt-out, respectively, such Indian tribe 
may change its election at any time under this 
subsection if the principal chief or other chief 
executive officer or designated authority of such 
Indian tribe submits to the Secretary a written 
notice indicating such change. 
(B) STATUS.—An Indian tribe that sub-
mits notice under subparagraph (A) shall be 
considered— 
(i) to have opted-in under this section 
if the most recent notice submitted under 
such subparagraph indicates that bets or 
wagers authorized under this title should 
not be prohibited on the Indian lands of 
such Indian tribe; and 
(ii) not to have opted-in under this 
section if such notice indicates that bets or 
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