•HR 21 RH2
(i) IN GENERAL.—The attorney general 
of a State (or other appropriate State offi-
cial) in which a violation of this section al-
legedly has occurred or will occur may in-
stitute proceedings under this subsection to 
prevent or restrain the violation. 
(ii) RELIEF.—Upon application of the 
attorney general (or other appropriate State 
official) of an affected State under this sub-
paragraph, the district court may enter a 
preliminary injunction or an injunction 
against any person to prevent or restrain a 
violation of this section, in accordance with 
Rule 65 of the Federal Rules of Civil Proce-
dure. 
(C) INDIAN LANDS.—
(i) 
IN
GENERAL.—Notwithstanding 
subparagraphs (A) and (B), for a violation 
that is alleged to have occurred, or may 
occur, on Indian lands (as that term is de-
fined in section 4 of the Indian Gaming 
Regulatory Act)—
(I) the United States shall have 
the enforcement authority provided 
under subparagraph (A); and
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(II) the enforcement authorities 
specified in an applicable Tribal-State 
compact negotiated under section 11 of 
the Indian Gaming Regulatory Act 
shall be carried out in accordance with 
that compact. 
(ii) RULE OF CONSTRUCTION.—No pro-
vision of this section shall be construed as 
altering, superseding, or otherwise affecting 
the application of the Indian Gaming Regu-
latory Act. 
(3) EXPEDITED PROCEEDINGS.—In addition to 
any proceeding under paragraph (2), a district court 
may, in exigent circumstances, enter a temporary re-
straining order against a person alleged to be in vio-
lation of this section upon application of the United 
States under paragraph (2)(A), or the attorney gen-
eral (or other appropriate State official) of an af-
fected State under paragraph (2)(B), in accordance 
with Rule 65(b) of the Federal Rules of Civil Proce-
dure. 
(4) LIMITATION RELATING TO INTERACTIVE COM-
PUTER SERVICES.—
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(A) IN GENERAL.—Relief granted under this 
subsection against an interactive computer serv-
ice shall—
(i) be limited to the removal of, or dis-
abling of access to, an online site violating 
this section, or a hypertext link to an online 
site violating this section, that resides on a 
computer server that such service controls or 
operates; except this limitation shall not 
apply if the service is subject to liability 
under this section pursuant to subsection 
(e); 
(ii) be available only after notice to the 
interactive computer service and an oppor-
tunity for the service to appear are pro-
vided; 
(iii) not impose any obligation on an 
interactive computer service to monitor its 
service or to affirmatively seek facts indi-
cating activity violating this section; 
(iv) specify the interactive computer 
service to which it applies; and 
(v) specifically identify the location of 
the online site or hypertext link to be re-
moved or access to which is to be disabled.
•HR 21 RH2
(B) COORDINATION WITH OTHER LAW.—An 
interactive computer service that does not violate 
this section shall not be liable under section 1084 
of title 18, except this limitation shall not apply 
if an interactive computer service has actual 
knowledge and control of bets and wagers and—
(i) operates, manages, supervises, or 
directs an Internet website at which unlaw-
ful bets or wagers may be placed, received, 
or otherwise made or at which unlawful bets 
or wagers are offered to be placed, received, 
or otherwise made; or 
(ii) owns or controls, or is owned or 
controlled by, any person who operates, 
manages, supervises, or directs an Internet 
website at which unlawful bets or wagers 
may be placed, received, or otherwise made 
or at which unlawful bets or wagers are of-
fered to be placed, received, or otherwise 
made. 
(5) FACTORS TO BE CONSIDERED IN CERTAIN 
CASES.—In considering granting relief under this 
subsection against any payment system, or any par-
ticipant in a payment system that is a creditor, cred-
it card issuer, financial institution, operator of a ter-
•HR 21 RH2
minal at which an electronic fund transfer may be 
initiated, money transmitting business, or inter-
national, national, regional, or local network utilized 
to effect a credit transaction, electronic fund transfer, 
or money transmitting service, or a participant in 
such network, the court shall consider the following 
factors: 
(A) The extent to which such person is ex-
tending credit or transmitting funds knowing the 
transaction is in connection with unlawful 
Internet gambling.
(B) The history of such person in extending 
credit or transmitting funds knowing the trans-
action is in connection with unlawful Internet 
gambling. 
(C) The extent to which such person has es-
tablished and is maintaining policies and proce-
dures in compliance with regulations prescribed 
under subsection (f). 
(D) The feasibility that any specific remedy 
prescribed in the order issued under this sub-
section can be implemented by such person with-
out substantial deviation from normal business 
practice.
•HR 21 RH2
(E) The costs and burdens the specific rem-
edy will have on such person. 
(6) NOTICE TO REGULATORS AND FINANCIAL IN-
STITUTIONS.—Before initiating any proceeding under 
paragraph (2) with respect to a violation or potential 
violation of this section by any creditor, credit card 
issuer, financial institution, operator of a terminal at 
which an electronic fund transfer may be initiated, 
money transmitting business, or international, na-
tional, regional, or local network utilized to effect a 
credit transaction, electronic fund transfer, or money 
transmitting service, or any participant in such net-
work, the Attorney General of the United States or an 
attorney general of a State (or other appropriate 
State official) shall—
(A) notify such person, and the appropriate 
regulatory agency (as determined in accordance 
with subsection (f)(5)) for such person, of such 
violation or potential violation and the remedy 
to be sought in such proceeding; and 
(B) allow such person 30 days to implement 
a reasonable remedy for the violation or poten-
tial violation, consistent with the factors de-
scribed in paragraph (5) and in conjunction
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with such action as the appropriate regulatory 
agency may take. 
(d) CRIMINAL PENALTY.—
(1) IN GENERAL.—Whoever violates this section 
shall be fined under title 18, United States Code, or 
imprisoned for not more than 5 years, or both. 
(2) PERMANENT INJUNCTION.—Upon conviction 
of a person under this subsection, the court may enter 
a permanent injunction enjoining such person from 
placing, receiving, or otherwise making illegal bets or 
wagers or sending, receiving, or inviting information 
assisting in the placing of bets or wagers. 
(e) CIRCUMVENTIONS PROHIBITED.—Notwithstanding 
subsection (b)(2), a creditor, credit card issuer, financial 
institution, operator of a terminal at which an electronic 
fund transfer may be initiated, money transmitting busi-
ness, or international, national, regional, or local network 
utilized to effect a credit transaction, electronic fund trans-
fer, or money transmitting service, or any participant in 
such network, or any interactive computer service or tele-
communications service, may be liable under this section 
if such creditor, issuer, institution, operator, business, net-
work, or participant has actual knowledge and control of 
bets and wagers and—
•HR 21 RH2
(1) operates, manages, supervises, or directs an 
Internet website at which unlawful bets or wagers 
may be placed, received, or otherwise made or at 
which unlawful bets or wagers are offered to be 
placed, received, or otherwise made; or 
(2) owns or controls, or is owned or controlled 
by, any person who operates, manages, supervises, or 
directs an Internet website at which unlawful bets or 
wagers may be placed, received, or otherwise made or 
at which unlawful bets or wagers are offered to be 
placed, received, or otherwise made.
(f) POLICIES AND PROCEDURES TO IDENTIFY AND 
PREVENT RESTRICTED TRANSACTIONS IN PAYMENT FOR 
UNLAWFUL INTERNET GAMBLING.—
(1) REGULATIONS.—Before the end of the 6-
month period beginning on the date of the enactment 
of this Act, the Secretary of the Treasury, in consulta-
tion with the Board of Governors of the Federal Re-
serve System and the Attorney General, shall pre-
scribe regulations requiring any designated payment 
system to establish policies and procedures reasonably 
designed to identify and prevent restricted trans-
actions in any of the following ways: 
(A) The establishment of policies and proce-
dures that—
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(i) allow the payment system and any 
person involved in the payment system to 
identify restricted transactions by means of 
codes in authorization messages or by other 
means; and 
(ii) block restricted transactions identi-
fied as a result of the policies and proce-
dures developed pursuant to clause (i).
(B) The establishment of policies and proce-
dures that prevent the acceptance of the products 
or services of the payment system in connection 
with a restricted transaction. 
(2) REQUIREMENTS FOR POLICIES AND PROCE-
DURES.—In prescribing regulations pursuant to 
paragraph (1), the Secretary shall—
(A) identify types of policies and proce-
dures, including nonexclusive examples, which 
would be deemed to be ‘‘reasonably designed to 
identify’’ and ‘‘reasonably designed to block’’ or 
to ‘‘prevent the acceptance of the products or 
services’’ with respect to each type of transaction, 
such as, should credit card transactions be so 
designated, identifying transactions by a code or 
codes in the authorization message and denying
•HR 21 RH2
authorization of a credit card transaction in re-
sponse to an authorization message; 
(B) to the extent practical, permit any par-
ticipant in a payment system to choose among 
alternative means of identifying and blocking, or 
otherwise preventing the acceptance of the prod-
ucts or services of the payment system or partici-
pant in connection with, restricted transactions; 
and 
(C) consider exempting restricted trans-
actions from any requirement under paragraph
(1) if the Secretary finds that it is not reason-
ably practical to identify and block, or otherwise 
prevent, such transactions. 
(3) COMPLIANCE WITH PAYMENT SYSTEM POLI-
CIES
AND
PROCEDURES.—A creditor, credit card 
issuer, financial institution, operator of a terminal at 
which an electronic fund transfer may be initiated, 
money transmitting business, or international, na-
tional, regional, or local network utilized to effect a 
credit transaction, electronic fund transfer, or money 
transmitting service, or a participant in such net-
work, meets the requirement of paragraph (1) if—
(A) such person relies on and complies with 
the policies and procedures of a designated pay-
•HR 21 RH2
ment system of which it is a member or partici-
pant to—
(i) identify and block restricted trans-
actions; or 
(ii) otherwise prevent the acceptance of 
the products or services of the payment sys-
tem, member, or participant in connection 
with restricted transactions; and 
(B) such policies and procedures of the des-
ignated payment system comply with the re-
quirements of regulations prescribed under para-
graph (1). 
(4) NO LIABILITY FOR BLOCKING OR REFUSING 
TO
HONOR
RESTRICTED
TRANSACTIONS.—A person 
that is subject to a regulation prescribed or order 
issued under this subsection and blocks, or otherwise 
refuses to honor, a restricted transaction, or as a 
member of a designated payment system relies on the 
policies and procedures of the payment system, in an 
effort to comply with this section shall not be liable 
to any party for such action. 
(5) ENFORCEMENT.—This subsection shall be en-
forced by the Federal functional regulators and the 
Federal Trade Commission under applicable law in
•HR 21 RH2
the manner provided in section 505(a) of the Gramm-
Leach-Bliley Act. 
SEC. 4. INTERNET GAMBLING IN OR THROUGH FOREIGN JU-
RISDICTIONS. 
(a) IN GENERAL.—In deliberations between the United 
States Government and any other country on money laun-
dering, corruption, and crime issues, the United States Gov-
ernment should—
(1) encourage cooperation by foreign govern-
ments and relevant international fora in identifying 
whether Internet gambling operations are being used 
for money laundering, corruption, or other crimes; 
(2) advance policies that promote the cooperation 
of foreign governments, through information sharing 
or other measures, in the enforcement of this Act; and 
(3) encourage the Financial Action Task Force 
on Money Laundering, in its annual report on money 
laundering typologies, to study the extent to which 
Internet gambling operations are being used for 
money laundering. 
(b) REPORT REQUIRED.—The Secretary of the Treas-
ury shall submit an annual report to the Congress on the 
deliberations between the United States and other countries 
on issues relating to Internet gambling.
•HR 21 RH2
SEC. 5. AMENDMENTS TO GAMBLING PROVISIONS. 
(a) AMENDMENT TO DEFINITION.—Section 1081 of 
title 18, United States Code, is amended—
(1) by designating the five undesignated para-
graphs that begin with ‘‘The term’’ as paragraphs (1) 
through (5), respectively; and 
(2) in paragraph (5), as so designated—
(A) by striking ‘‘wire communication’’ and 
inserting ‘‘communication’’; 
(B) by inserting ‘‘satellite, microwave,’’ 
after ‘‘cable,’’; and 
(C) by inserting ‘‘(whether fixed or mobile)’’ 
after ‘‘connection’’. 
(b) INCREASE
IN PENALTY
FOR UNLAWFUL WIRE 
TRANSFERS OF WAGERING INFORMATION AND CONFORMING 
AMENDMENT.—Section 1084(a) of title 18, United States 
Code, is amended—
(1) by striking ‘‘two years’’ and inserting ‘‘5 
years’’; and 
(2) by striking ‘‘wire’’ each place it appears.
Union Calendar No. 65
108TH CONGRESS 
1ST SESSION 
H. R. 21
[Report No. 108–51, Parts I and II] 
A BILL 
To prevent the use of certain bank instruments for 
unlawful Internet gambling, and for other purposes. 
MAY 22, 2003
Reported from the Committee on the Judiciary with an 
amendment