cordance with paragraph (2), until such time as 
any notice of any amendment or repeal of such 
specific limitation becomes effective under para-
graph (2). 
‘‘(B) COORDINATION BETWEEN STATE AND 
TRIBAL OPT-OUT EXERCISES.—Any State limita-
tion under subparagraph (A) shall not apply to 
the acceptance by a licensee of bets or wagers 
from persons located within the tribal lands of 
an Indian tribe that— 
‘‘(i) has itself opted out pursuant to 
subsection (b) (in which case the tribal opt- 
out exercise under such subsection shall 
apply); or 
‘‘(ii) would be entitled pursuant to 
other applicable law to permit such bets or 
wagers to be initiated and received within 
its territory without use of the Internet. 
‘‘(C) COORDINATION WITH INDIAN GAMING 
REGULATORY
ACT.—No decision by a State 
under this subsection shall be considered in mak-
ing any determination with regard to the ability 
of an Indian tribe to offer any class of gambling 
activity pursuant to section 11 of the Indian 
Gaming Regulatory Act. 
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‘‘(D) TRIBAL STATUS OR CATEGORY NOT IM-
PACTED.—Tribal operations of Internet gam-
bling facilities under this subchapter shall not 
impact an Indian tribe’s status or category or 
class under its land-based activities. 
‘‘(E) NEW NEGOTIATIONS NOT REQUIRED.— 
Operating under a license issued pursuant to 
this subchapter shall not require, or impose any 
requirement on, an Indian tribe to negotiate a 
new agreement, or renegotiate any existing 
agreement, limitation or other provision of a 
tribal-State compact, agreement, or other under-
standing with respect to gaming or revenue-shar-
ing, with regard to any Internet bet or wager oc-
curring pursuant to a license issued by the Sec-
retary under this subchapter. 
‘‘(2) CHANGES TO STATE LIMITATIONS.—The es-
tablishment, repeal, or amendment by any State of 
any limitation referred to in paragraph (1) after the 
end of the period referred to in paragraph (1) shall 
apply, for purposes of this subchapter, beginning on 
the first January 1 that occurs after the end of the 
60-day period beginning on the later of— 
‘‘(A) the date a notice of such establishment, 
repeal, or amendment is provided by the Gov-
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ernor or other chief executive officer of such State 
in writing to the Secretary; or 
‘‘(B) the effective date of such establishment, 
repeal, or amendment. 
‘‘(b) INDIAN TRIBE OPT-OUT EXERCISE.— 
‘‘(1) 
LIMITATIONS
IMPOSED
BY
INDIAN 
TRIBES.—No Internet gambling licensee knowingly 
may accept a bet or wager from a person located in 
the tribal lands of any Indian tribe which limits such 
gambling activities or other contests if the principal 
chief or other chief executive officer of such Indian 
tribe informs the Secretary of such limitation, in a 
manner which clearly identifies the nature and extent 
of such limitation, before the end of the 90-day period 
beginning on the date of the enactment of the Internet 
Gambling Regulation, Consumer Protection, and En-
forcement Act, or in accordance with paragraph (2), 
until such time as any notice of any amendment or 
repeal of such specific limitation becomes effective 
under paragraph (2). 
‘‘(2) CHANGES TO INDIAN TRIBE LIMITATIONS.— 
The establishment, repeal, or amendment by any In-
dian tribe of any limitation referred to in paragraph 
(1) after the end of the 90-day period beginning on 
the date of the enactment of this subchapter shall 
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apply, for purposes of this subchapter, beginning on 
the first January 1 that occurs after the end of the 
60-day period beginning on the later of— 
‘‘(A) the date a notice of such establishment, 
repeal, or amendment is provided by the prin-
cipal chief or other chief executive officer of such 
Indian tribe in writing to the Secretary; or 
‘‘(B) the effective date of such establishment, 
repeal, or amendment. 
‘‘(c) NOTIFICATION AND ENFORCEMENT OF STATE AND 
INDIAN TRIBE LIMITATIONS.— 
‘‘(1) IN GENERAL.—The Secretary shall notify 
all licensees and applicants of all States and Indian 
tribes that have provided notice pursuant to para-
graph (1) or (2) of subsection (a) or (b), as the case 
may be, promptly upon receipt of such notice and in 
no event fewer than 30 days before the effective date 
of such notice. 
‘‘(2) COMPLIANCE.—The Secretary shall take ef-
fective measures to ensure that any licensee under this 
subchapter, as a condition of the license, complies 
with any limitation or prohibition imposed by any 
State or Indian tribe to which the licensee is subject 
under subsection (a) or (b), as the case may be. 
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‘‘(3) VIOLATIONS.—It shall be a violation of this 
subchapter for any licensee knowingly to accept bets 
or wagers initiated or otherwise made by persons lo-
cated within any State or in the tribal lands of any 
Indian tribe for which a notice is in effect under sub-
section (a) or (b), as the case may be. 
‘‘(4) STATE
ATTORNEY
GENERAL
ENFORCE-
MENT.—In any case in which the attorney general of 
a State, or any State or local law enforcement agency 
authorized by the State attorney general or by State 
statute to prosecute violations of consumer protection 
law, has reason to believe that an interest of the resi-
dents of that State has been or is threatened or ad-
versely affected by a violation by a licensee pursuant 
to paragraph (2), the State, or the State or local law 
enforcement agency on behalf of the residents of the 
agency’s jurisdiction, may bring a civil action on be-
half of the residents of that State or jurisdiction in 
a district court of the United States located therein, 
to— 
‘‘(A) enjoin that practice; or 
‘‘(B) enforce compliance with this sub-
chapter. 
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‘‘§ 5388. Sports betting prohibited on Internet 
‘‘No licensee under this subchapter shall accept Inter-
net bets or wagers on sporting events, with the exception 
of pari-mutuel racing as permitted by law. 
‘‘§ 5389. Prohibition on the use of credit cards for 
Internet gambling 
‘‘(a) IN GENERAL.—No licensee, no person operating 
on behalf of a licensee, and no person accepting payment 
for or settlement of a bet or wager who intends to transmit 
such payment to a person licensee, may accept a bet or 
wager or payment for or settlement of a bet or wager that 
is transmitted or otherwise facilitated with a credit card 
(as defined in section 5362(11)). 
‘‘(b) EXCEPTION.— 
‘‘(1) CLARIFICATION OF SCOPE.—For any person 
licensed to take bets or wagers in accordance with the 
Interstate Horseracing Act of 1978, the prohibition in 
subsection (a) shall only apply to those activities con-
ducted pursuant to a license under this subchapter. 
‘‘(2) INTRASTATE ACTIVITIES.—For any person 
involved in legal, land-based or State- or tribal-regu-
lated intrastate gambling, the prohibition in sub-
section (a) shall only apply to those activities con-
ducted pursuant to a license under this subchapter. 
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‘‘(d) CRIMINAL PENALTY.—Whoever violates subsection 
(a) or (b) of this section shall be fined under title 18 or 
imprisoned for not more than 5 years, or both.’’. 
(b) RULES OF CONSTRUCTION.— 
(1) 
TECHNICAL
AND
CONFORMING
AMEND-
MENT.—Section 310(b)(2) of title 31, United States 
Code is amended— 
(A) by redesignating subparagraph (J) as 
subparagraph (K); and 
(B) by inserting after subparagraph (I) the 
following new subparagraph: 
‘‘(J) Administer the requirements of sub-
chapter V of chapter 53.’’. 
(c) CLERICAL AMENDMENT.—The table of sections for 
chapter 53 of title 31, United States Code, is amended by 
adding at the end the following: 
‘‘SUBCHAPTER V—REGULATION OF LAWFUL INTERNET GAMBLING 
‘‘5381. Congressional findings. 
‘‘5382. Definitions. 
‘‘5383. Establishment and administration of licensing program. 
‘‘5384. Problem Gambling, Responsible Gambling, Consumer Safeguards, and Self- 
Exclusion Program. 
‘‘5385. Financial transaction providers. 
‘‘5386. List of unlawful Internet gambling enterprises. 
‘‘5387. Limitation of licenses in States and Indian lands. 
‘‘5388. Sports betting prohibited on Internet. 
‘‘5389. Prohibition on the use of credit cards for Internet gambling. 
‘‘5390. State and tribal lotteries. 
‘‘5391. Safe harbors. 
‘‘5392. Relation to section 1084 of title 18 and the Unlawful Internet Gambling 
Enforcement Act. 
‘‘5393. Cheating and other fraud.’’. 
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SEC. 3. REPORT REQUIRED. 
(a) IN GENERAL.—Before the end of the 1-year period 
beginning on the effective date of the regulations prescribed 
under section 5(a), and annually thereafter, the Secretary 
shall submit a report to the Congress on the licensing and 
regulation of Internet gambling operators. 
(b) INFORMATION REQUIRED.—Each report submitted 
under subsection (a) shall include the following informa-
tion: 
(1) A comprehensive statement regarding the 
prohibitions notified by the States and Indian tribes 
pursuant to section 5387 of title 31, United States 
Code. 
(2) Relevant statistical information on appli-
cants and licenses. 
(3) The amount of licensing and user fees col-
lected during the period covered by the report. 
(4) Information on regulatory or enforcement ac-
tions undertaken during the period. 
(5) Any other information that may be useful to 
the Congress in evaluating the effectiveness of the Act 
in meeting its purpose, including the provision of 
protections against underage gambling, compulsive 
gambling, money laundering, and fraud, and in com-
bating tax avoidance relating to Internet gambling. 
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SEC. 4. FEASIBILITY STUDY. 
The Secretary of the Treasury, in consultation with 
appropriate State or tribal officers or agencies, shall con-
duct a feasibility study on safeguards to address gambling 
while impaired through programs such as periodic notices, 
periodic testing of individuals to establish cognitive com-
petence, and any other similar option that the Secretary 
or appropriate State or tribal officers or agencies may de-
termine to be appropriate. 
SEC. 5. EFFECTIVE DATE. 
(a) REGULATIONS.—The Secretary of the Treasury 
shall prescribe such regulations as the Secretary may deter-
mine to be appropriate to implement subchapter V of chap-
ter 53 of title 31, United States Code (as added by section 
2(a) of this Act) and shall publish such regulations in final 
form in the Federal Register before the end of the 180-day 
period beginning on the date of the enactment of this Act. 
(b) SCOPE OF APPLICATION.—The amendment made 
by section 2(a) shall apply after the end of the 90-day pe-
riod beginning on the date of the publication of the regula-
tions in final form in accordance with subsection (a). 
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Union Calendar No. 398 
111TH CONGRESS 
2D SESSION 
H. R. 2267 
[Report No. 111–656, Part I] 
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. 
NOVEMBER 30, 2010 
Committee on Energy and Commerce discharged; com-
mitted to the Committee of the Whole House on the 
State of the Union and ordered to be printed 
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