I 
112TH CONGRESS 
1ST SESSION H. R. 1174 
To amend title 31, United States Code, to provide for the licensing of 
Internet gambling activities by the Secretary of the Treasury, to provide 
for consumer protections on the Internet, to enforce the tax code, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 17, 2011 
Mr. CAMPBELL (for himself, Mr. FRANK of Massachusetts, Mr. KING of New 
York, and Mr. PERLMUTTER) introduced the following bill; which was re-
ferred to the Committee on Financial Services, and in addition to the 
Committees on the Judiciary and Energy and Commerce, for a period to 
be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To amend title 31, United States Code, to provide for the 
licensing of Internet gambling activities by the Secretary 
of the Treasury, to provide for consumer protections 
on the Internet, to enforce the tax code, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Internet Gambling 
Regulation, Consumer Protection, and Enforcement Act’’. 
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SEC. 2. FEDERAL LICENSING REQUIREMENT FOR INTER-
NET GAMBLING OPERATORS. 
(a) IN GENERAL.—Chapter 53 of title 31, United 
States Code, is amended by adding at the end the fol-
lowing new subchapter: 
‘‘SUBCHAPTER V—REGULATION OF LAWFUL 
INTERNET GAMBLING 
‘‘§ 5381. Congressional findings 
‘‘The Congress finds the following: 
‘‘(1) Since the development of the Internet, mil-
lions of people have chosen to gamble online, and 
today Internet gambling is offered by operators lo-
cated in many different countries under a variety of 
licensing and regulatory regimes. 
‘‘(2) Despite the increasing use of the Internet 
for gambling by persons in the United States, there 
is no Federal or State regulatory regime in place to 
protect United States citizens who choose to engage 
in this interstate activity, or to oversee operators to 
establish and enforce standards of integrity and fair-
ness. 
‘‘(3) In the United States, gambling activities, 
equipment, and operations have been subject to var-
ious forms of Federal and State control, regulation, 
and enforcement, with some form of gambling being 
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permitted in nearly every State and by many Indian 
tribes. 
‘‘(4) Internet gambling in the United States 
should be controlled by a strict Federal, State, and 
tribal licensing and regulatory framework to protect 
underage and otherwise vulnerable individuals, to 
ensure the games are fair, to address the concerns 
of law enforcement, and to enforce any limitations 
on the activity established by the States and Indian 
tribes. 
‘‘(5) An effective Federal, State, and tribal li-
censing system would ensure that licenses are issued 
only to Internet gambling operators which meet 
strict criteria to protect consumers, and which— 
‘‘(A) are in good financial and legal stand-
ing, and of good character, honesty, and integ-
rity; 
‘‘(B) utilize appropriate technology to de-
termine the age and location of users; 
‘‘(C) adopt and implement systems to pro-
tect minors and problem gamblers; 
‘‘(D) adopt and implement systems to en-
force any applicable Federal, State, and Indian 
tribe limitations on Internet gambling; and 
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‘‘(E) have in place risk-based methods to 
identify and combat money laundering and 
fraud relating to Internet gambling, and to pro-
tect the privacy and security of users. 
‘‘(6) There is a need to extend the regulatory 
provisions of this Act to all persons, locations, equip-
ment, practices, and associations related to Internet 
gambling, with each State and Indian tribe having 
the ability to limit Internet gambling operators from 
offering Internet gambling to persons located within 
its territory by opting out of the provisions of this 
Act. 
‘‘§ 5382. Definitions 
‘‘For purposes of this subchapter, the following defi-
nitions shall apply: 
‘‘(1) APPLICANT.—The term ‘applicant’ means 
any person who has applied for a license pursuant 
to this subchapter. 
‘‘(2) BET OR WAGER.—The term ‘bet or wager’ 
has the same meaning as in section 5362(1). 
‘‘(3) ENFORCEMENT
AGENT.—The term ‘en-
forcement agent’ means any individual authorized by 
the Secretary to enforce the provisions of this sub-
chapter and regulations prescribed under this sub-
chapter. 
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‘‘(4) INDIAN LANDS AND INDIAN TRIBE.—The 
terms ‘Indian lands’ and ‘Indian tribe’ have the 
same meanings as in section 4 of the Indian Gaming 
Regulatory Act. 
‘‘(5) INTERNET.—The term ‘Internet’ has the 
same meaning as in section 5362(5). 
‘‘(6) LICENSEE.—The term ‘licensee’ means an 
entity authorized to operate an Internet gambling 
facility in accordance with this subchapter. 
‘‘(7) OPERATE AN INTERNET GAMBLING FACIL-
ITY.—The term ‘operate an Internet gambling facil-
ity’ or ‘operation of an Internet gambling facility’ 
means the direction, management, supervision, or 
control of an Internet site through which bets or wa-
gers are initiated, received, or otherwise made, 
whether by telephone, Internet, satellite, or other 
wire or wireless communication. 
‘‘(8) SECRETARY.—The term ‘Secretary’ means 
the Secretary of the Treasury, or any person des-
ignated by the Secretary. 
‘‘(9) STATE.—The term ‘State’ means any 
State of the United States, the District of Columbia, 
or any commonwealth, territory, or other possession 
of the United States. 
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‘‘(10) SPORTING EVENT.—The term ‘sporting 
event’ means any athletic competition, whether pro-
fessional, scholastic, or amateur. 
‘‘§ 5383. Establishment and administration of licens-
ing program 
‘‘(a) TREASURY RESPONSIBILITIES.—The Secretary 
shall have responsibility for the following activities: 
‘‘(1) Exercising full regulatory jurisdiction 
over— 
‘‘(A) the operation of Internet gambling fa-
cilities by licensees; and 
‘‘(B) the licensure and regulation of all ap-
plicants, except to the extent that powers have 
been delegated to qualified State and tribal reg-
ulatory bodies pursuant to this subchapter. 
‘‘(2) Prescribing such regulations as may be 
necessary to administer and enforce the require-
ments of this subchapter. 
‘‘(3) Employing enforcement agents with suffi-
cient training and experience to administer the re-
quirements of this subchapter and the regulations 
prescribed under this subchapter. 
‘‘(4) Enforcing the requirements of this sub-
chapter through all appropriate means provided 
under this subchapter and other provisions of law. 
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‘‘(b) INTERNET GAMBLING LICENSING PROGRAM.— 
‘‘(1) LICENSING
REQUIRED
FOR
CERTAIN 
INTERNET GAMBLING.—No person may operate an 
Internet gambling facility that knowingly accepts 
bets or wagers from persons located in the United 
States without a license issued by the Secretary in 
accordance with this subchapter. 
‘‘(2) AUTHORITY UNDER VALID LICENSE.—A li-
censee may accept bets or wagers from persons lo-
cated in the United States, subject to the limitations 
set forth in this subchapter, so long as its license re-
mains in good standing. 
‘‘(c) APPLICATION FOR LICENSE.— 
‘‘(1) IN GENERAL.—Any person seeking author-
ity to operate an Internet gambling facility offering 
services to persons in the United States may apply 
for a license issued by the Secretary. 
‘‘(2) INFORMATION
REQUIRED.—Any applica-
tion for a license under this subchapter shall contain 
such information as may be required by the Sec-
retary, including the following: 
‘‘(A) The criminal and credit history of the 
applicant, any senior executive and director of 
the applicant, and any person deemed to be in 
control of the applicant. 
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