‘‘(v) any contract of indemnity 
or guarantee; 
‘‘(vi) any contract for insur-
ance; 
‘‘(vii) any deposit or other 
transaction with an insured de-
pository institution; or 
‘‘(viii) any participation in a 
fantasy 
or 
simulation 
sports 
game, an educational game, or a 
contest, that— 
‘‘(I) is not dependent sole-
ly on the outcome of any sin-
gle sporting event or non-
participant’s 
singular 
indi-
vidual performance in any 
single sporting event; 
‘‘(II) has an outcome that 
reflects the relative knowl-
edge of the participants, or 
their skill at physical reaction 
or physical manipulation (but 
not chance), and, in the case 
of a fantasy or simulation 
sports game, has an outcome 
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that is determined predomi-
nantly by accumulated statis-
tical 
results 
of 
sporting 
events, including any non-
participant’s individual per-
formances in such sporting 
events; and 
‘‘(III) offers a prize or 
award to a participant that is 
established in advance of the 
game or contest and is not de-
termined by the number of 
participants or the amount of 
any fees paid by those partici-
pants. 
‘‘(2) BUSINESS
OF
BETTING
OR
WAGER-
ING.—The term ‘business of betting or wa-
gering’ does not include the activities of 
a financial transaction provider, or any 
interactive computer service or tele-
communications service. 
‘‘(3) DESIGNATED
PAYMENT
SYSTEM.— 
The term ‘designated payment system’ 
means any system utilized by a financial 
transaction provider that the Secretary 
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and the Board of Governors of the Fed-
eral Reserve System, in consultation with 
the Attorney General, jointly determine, 
by regulation or order, could be utilized 
in connection with, or to facilitate, any 
restricted transaction. 
‘‘(4) 
FINANCIAL
TRANSACTION
PRO-
VIDER.—The term ‘financial transaction 
provider’ means a creditor, credit card 
issuer, financial institution, operator of a 
terminal at which an electronic fund 
transfer may be initiated, money trans-
mitting business, or international, na-
tional, regional, or local payment net-
work utilized to effect a credit trans-
action, electronic fund transfer, stored 
value product transaction, or money 
transmitting service, or a participant in 
such network, or other participant in a 
designated payment system. 
‘‘(5) INTERNET.—The term ‘Internet’ 
means the international computer net-
work of interoperable packet switched 
data networks. 
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‘‘(6) INTERACTIVE COMPUTER SERVICE.— 
The term ‘interactive computer service’ 
has the same meaning as in section 230(f) 
of the Communications Act of 1934. 
‘‘(7) 
RESTRICTED
TRANSACTION.—The 
term ‘restricted transaction’ means any 
transaction or transmittal involving any 
credit, funds, instrument, or proceeds de-
scribed in any paragraph of section 5363 
which the recipient is prohibited from ac-
cepting under section 5363. 
‘‘(8) SECRETARY.—The term ‘Secretary’ 
means the Secretary of the Treasury. 
‘‘(9) STATE.—The term ‘State’ means 
any State of the United States, the Dis-
trict of Columbia, or any commonwealth, 
territory, or other possession of the 
United States. 
‘‘(10) UNLAWFUL INTERNET GAMBLING.— 
‘‘(A) IN
GENERAL.—The term ‘un-
lawful Internet gambling’ means to 
place, receive, or otherwise know-
ingly transmit a bet or wager by any 
means which involves the use, at 
least in part, of the Internet where 
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such bet or wager is unlawful under 
any applicable Federal or State law 
in the State or Tribal lands in which 
the bet or wager is initiated, re-
ceived, or otherwise made. 
‘‘(B) INTRASTATE
TRANSACTIONS.— 
The term ‘unlawful Internet gam-
bling’ shall not include placing, re-
ceiving, or otherwise transmitting a 
bet or wager where— 
‘‘(i) the bet or wager is initi-
ated and received or otherwise 
made exclusively within a single 
State; 
‘‘(ii) the bet or wager and the 
method by which the bet or 
wager is initiated and received or 
otherwise made is expressly au-
thorized by and placed in accord-
ance with the laws of such State, 
and the State law or regulations 
include— 
‘‘(I) 
age 
and 
location 
verification requirements rea-
sonably designed to block ac-
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cess to minors and persons lo-
cated out of such State; and 
‘‘(II) appropriate data se-
curity standards to prevent 
unauthorized access by any 
person whose age and current 
location has not been verified 
in 
accordance 
with 
such 
State’s law or regulations; and 
‘‘(iii) the bet or wager does 
not violate any provision of the— 
‘‘(I) Interstate Horseracing 
Act; 
‘‘(II) 
Professional 
and 
Amateur 
Sports 
Protection 
Act; 
‘‘(III) 
Gambling 
Devices 
Transportation Act; or 
‘‘(IV) Indian Gaming Reg-
ulatory Act. 
‘‘(C) INTRATRIBAL
TRANSACTIONS.— 
The term ‘unlawful Internet gam-
bling’ shall not include placing, re-
ceiving, or otherwise transmitting a 
bet or wager where— 
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‘‘(i) the bet or wager is initi-
ated and received or otherwise 
made exclusively— 
‘‘(I) 
within 
the 
Indian 
lands of a single Indian tribe 
(as those terms are defined by 
the 
Indian 
Gaming 
Regu-
latory Act); or 
‘‘(II) between the Indian 
lands of 2 or more Indian 
tribes to the extent that inter-
tribal gaming is authorized by 
the 
Indian 
Gaming 
Regu-
latory Act; 
‘‘(ii) the bet or wager and the 
method by which the bet or 
wager is initiated and received or 
otherwise made is expressly au-
thorized by and complies with the 
requirements of— 
‘‘(I) the applicable tribal 
ordinance or resolution ap-
proved by the Chairman of 
the National Indian Gaming 
Commission; and 
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‘‘(II) with respect to class 
III 
gaming, 
the 
applicable 
Tribal-State Compact; 
‘‘(iii) the applicable tribal or-
dinance or resolution or Tribal- 
State compact includes— 
‘‘(I) 
age 
and 
location 
verification requirements rea-
sonably designed to block ac-
cess to minors and persons lo-
cated out of the applicable 
Tribal lands; and 
‘‘(II) appropriate data se-
curity standards to prevent 
unauthorized access by any 
person whose age and current 
location has not been verified 
in accordance with the appli-
cable tribal ordinance or reso-
lution or Tribal-State Com-
pact; and 
‘‘(iv) the bet or wager does not 
violate any provision of the— 
‘‘(I) Interstate Horseracing 
Act; 
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‘‘(II) the Professional and 
Amateur 
Sports 
Protection 
Act; 
‘‘(III) the Gambling De-
vices Transportation Act; or 
‘‘(IV) the Indian Gaming 
Regulatory Act. 
‘‘(D) INTERSTATE
HORSERACING.— 
The term ‘unlawful Internet gam-
bling’ shall not include placing, re-
ceiving, or otherwise transmitting a 
bet or wager that is governed by and 
complies with the Interstate Horse-
racing Act of 1978. 
‘‘(E) INTERMEDIATE
ROUTING.—The 
intermediate routing of electronic 
data shall not determine the location 
or locations in which a bet or wager 
is initiated, received, or otherwise 
made. 
‘‘(11) OTHER TERMS.— 
‘‘(A) 
CREDIT; 
CREDITOR; 
CREDIT 
CARD; AND
CARD
ISSUER.—The terms 
‘credit’, ‘creditor’, ‘credit card’, and 
‘card issuer’ have the same meanings 
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ccoleman on PROD1PC71 with BILLS
as in section 103 of the Truth in 
Lending Act. 
‘‘(B) ELECTRONIC FUND TRANSFER.— 
The term ‘electronic fund transfer’— 
‘‘(i) has the same meaning as 
in section 903 of the Electronic 
Fund Transfer Act, except that 
such term includes transfers that 
would 
otherwise 
be 
excluded 
under section 903(6)(E) of that 
Act; and 
‘‘(ii) includes any fund trans-
fer covered by Article 4A of the 
Uniform Commercial Code, as in 
effect in any State. 
‘‘(C) FINANCIAL
INSTITUTION.—The 
term ‘financial institution’ has the 
same meaning as in section 903 of the 
Electronic Fund Transfer Act, except 
that such term does not include a ca-
sino, sports book, or other business at 
or through which bets or wagers may 
be placed or received. 
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‘‘(D) INSURED DEPOSITORY INSTITU-
TION.—The term ‘insured depository 
institution’— 
‘‘(i) has the same meaning as 
in section 3 of the Federal De-
posit Insurance Act; and 
‘‘(ii) includes an insured cred-
it union (as defined in section 101 
of the Federal Credit Union Act). 
‘‘(E) MONEY
TRANSMITTING
BUSI-
NESS
AND
MONEY
TRANSMITTING
SERV-
ICE.—The terms ‘money transmitting 
business’ and ‘money transmitting 
service’ have the same meanings as in 
section 5330(d) (determined without 
regard to any regulations prescribed 
by the Secretary thereunder). 
‘‘§ 5363. Prohibition on acceptance of any financial 
instrument for unlawful Internet gam-
bling 
‘‘No person engaged in the business of bet-
ting or wagering may knowingly accept, in 
connection with the participation of another 
person in unlawful Internet gambling— 
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‘‘(1) credit, or the proceeds of credit, 
extended to or on behalf of such other 
person 
(including 
credit 
extended 
through the use of a credit card); 
‘‘(2) an electronic fund transfer, or 
funds transmitted by or through a money 
transmitting business, or the proceeds of 
an electronic fund transfer or money 
transmitting service, from or on behalf of 
such other person; 
‘‘(3) any check, draft, or similar in-
strument which is drawn by or on behalf 
of such other person and is drawn on or 
payable at or through any financial insti-
tution; or 
‘‘(4) the proceeds of any other form of 
financial transaction, as the Secretary 
and the Board of Governors of the Fed-
eral Reserve System may jointly pre-
scribe by regulation, which involves a fi-
nancial institution as a payor or financial 
intermediary on behalf of or for the ben-
efit of such other person. 
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‘‘§ 5364. Policies and procedures to identify and pre-
vent restricted transactions 
‘‘(a) REGULATIONS.—Before the end of the 
270-day period beginning on the date of the 
enactment of this subchapter, the Secretary 
and the Board of Governors of the Federal Re-
serve System, in consultation with the Attor-
ney General, shall prescribe regulations 
(which the Secretary and the Board jointly 
determine to be appropriate) requiring each 
designated payment system, and all partici-
pants therein, to identify and block or other-
wise prevent or prohibit restricted trans-
actions through the establishment of policies 
and procedures reasonably designed to iden-
tify and block or otherwise prevent or pro-
hibit the acceptance of restricted transactions 
in any of the following ways: 
‘‘(1) The establishment of policies and 
procedures that— 
‘‘(A) allow the payment system 
and any person involved in the pay-
ment system to identify restricted 
transactions by means of codes in au-
thorization messages or by other 
means; 
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‘‘(B) block restricted transactions 
identified as a result of the policies 
and procedures developed pursuant 
to subparagraph (A); and 
‘‘(C) block transactions that are in 
violation of section 1084 of title 18. 
‘‘(2) The establishment of policies and 
procedures that prevent or prohibit the 
acceptance of the products or services of 
the payment system in connection with a 
restricted transaction. 
‘‘(b) REQUIREMENTS FOR POLICIES AND PRO-
CEDURES.—In prescribing regulations under 
subsection (a), the Secretary and the Board of 
Governors of the Federal Reserve System 
shall— 
‘‘(1) identify types of policies and pro-
cedures, including nonexclusive exam-
ples, which would be deemed, as applica-
ble, to be reasonably designed to identify 
and block or otherwise prevent or pro-
hibit the acceptance of the products or 
services with respect to each type of re-
stricted transaction; 
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‘‘(2) to the extent practical, permit 
any participant in a payment system to 
choose among alternative means of iden-
tifying and blocking, or otherwise pre-
venting or prohibiting the acceptance of 
the products or services of the payment 
system or participant in connection with, 
restricted transactions; and 
‘‘(3) consider exempting certain re-
stricted transactions or designated pay-
ment systems from any requirement im-
posed under such regulations, if the Sec-
retary and the Board jointly find that it 
is not reasonably practical to identify 
and block, or otherwise prevent or pro-
hibit the acceptance of, such trans-
actions. 
‘‘(c) COMPLIANCE WITH PAYMENT SYSTEM 
POLICIES AND PROCEDURES.—A financial trans-
action provider shall be considered to be in 
compliance with the regulations prescribed 
under subsection (a), if— 
‘‘(1) such person relies on and com-
plies with the policies and procedures of 
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a designated payment system of which it 
is a member or participant to— 
‘‘(A) identify and block restricted 
transactions; or 
‘‘(B) otherwise prevent or prohibit 
the acceptance of the products or 
services of the payment system, mem-
ber, or participant in connection with 
restricted transactions; and 
‘‘(2) such policies and procedures of 
the designated payment system comply 
with the requirements of regulations pre-
scribed under subsection (a). 
‘‘(d) NO LIABILITY FOR BLOCKING OR REFUS-
ING TO HONOR RESTRICTED TRANSACTIONS.—A 
person that identifies and blocks a trans-
action, prevents or prohibits the acceptance 
of its products or services in connection with 
a transaction, or otherwise refuses to honor 
a transaction— 
‘‘(1) that is a restricted transaction; 
‘‘(2) that such person reasonably be-
lieves to be a restricted transaction; or 
‘‘(3) as a designated payment system 
or a member of a designated payment 
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system in reliance on the policies and 
procedures of the payment system, in an 
effort to comply with regulations pre-
scribed under subsection (a), 
shall not be liable to any party for such ac-
tion. 
‘‘(e) REGULATORY ENFORCEMENT.—The re-
quirements of this section shall be enforced 
exclusively by— 
‘‘(1) the Federal functional regulators, 
with respect to the designated payment 
systems and financial transaction pro-
viders subject to the respective jurisdic-
tion of such regulators under section 
505(a) of the Gramm-Leach-Bliley Act and 
section 5g of the Commodities Exchange 
Act; and 
‘‘(2) the Federal Trade Commission, 
with respect to designated payment sys-
tems and financial transaction providers 
not otherwise subject to the jurisdiction 
of any Federal functional regulators (in-
cluding the Commission) as described in 
paragraph (1). 
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‘‘§ 5365. Civil remedies 
‘‘(a) JURISDICTION.—The district courts of 
the United States shall have original and ex-
clusive jurisdiction to prevent and restrain 
restricted transactions by issuing appropriate 
orders in accordance with this section, re-
gardless of whether a prosecution has been 
initiated under this subchapter. 
‘‘(b) PROCEEDINGS.— 
‘‘(1) INSTITUTION BY FEDERAL GOVERN-
MENT.— 
‘‘(A) 
IN
GENERAL.—The 
United 
States, acting through the Attorney 
General, may institute proceedings 
under this section to prevent or re-
strain a restricted transaction. 
‘‘(B) RELIEF.—Upon application of 
the United States under this para-
graph, the district court may enter a 
temporary restraining order, a pre-
liminary injunction, or an injunction 
against any person to prevent or re-
strain a restricted transaction, in ac-
cordance with rule 65 of the Federal 
Rules of Civil Procedure. 
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‘‘(2) INSTITUTION
BY
STATE
ATTORNEY 
GENERAL.— 
‘‘(A) IN
GENERAL.—The attorney 
general (or other appropriate State 
official) of a State in which a re-
stricted 
transaction 
allegedly 
has 
been or will be initiated, received, or 
otherwise made may institute pro-
ceedings under this section to pre-
vent or restrain the violation or 
threatened violation. 
‘‘(B) RELIEF.—Upon application of 
the attorney general (or other appro-
priate State official) of an affected 
State under this paragraph, the dis-
trict court may enter a temporary re-
straining order, a preliminary injunc-
tion, or an injunction against any 
person to prevent or restrain a re-
stricted transaction, in accordance 
with rule 65 of the Federal Rules of 
Civil Procedure. 
‘‘(3) INDIAN LANDS.— 
‘‘(A) 
IN
GENERAL.—Notwith-
standing paragraphs (1) and (2), for a 
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restricted transaction that allegedly 
has been or will be initiated, re-
ceived, or otherwise made on Indian 
lands (as that term is defined in sec-
tion 4 of the Indian Gaming Regu-
latory Act)— 
‘‘(i) the United States shall 
have the enforcement authority 
provided under paragraph (1); 
and 
‘‘(ii) the enforcement authori-
ties specified in an applicable 
Tribal-State compact negotiated 
under section 11 of the Indian 
Gaming Regulatory Act (25 U.S.C. 
2710) shall be carried out in ac-
cordance with that compact. 
‘‘(B) RULE
OF
CONSTRUCTION.—No 
provision of this section shall be con-
strued as altering, superseding, or 
otherwise affecting the application of 
the Indian Gaming Regulatory Act. 
‘‘(c) LIMITATION RELATING TO INTERACTIVE 
COMPUTER SERVICES.— 
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