II 
Calendar No. 519 
109TH CONGRESS 
2D SESSION 
H. R. 4411 
IN THE SENATE OF THE UNITED STATES 
JULY 12, 2006 
Received and read the first time 
JULY 13, 2006 
Read the second time and placed on the calendar 
AN ACT 
To prevent the use of certain payment instruments, credit 
cards, and fund transfers for unlawful Internet gambling, 
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 AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Internet Gambling Prohibition and Enforcement Act’’. 
(b) TABLE OF CONTENTS.—The table of contents is 
as follows: 
Sec. 1. Short title and table of contents. 
TITLE I—MODERNIZATION OF THE WIRE ACT OF 1961 
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Sec. 101. Definitions. 
Sec. 102. Modification of existing prohibition. 
Sec. 103. Authorization of civil enforcement. 
Sec. 104. Authorization of appropriations. 
Sec. 105. Rules of construction. 
Sec. 106. Sense of Congress. 
TITLE II—POLICIES AND PROCEDURES REQUIRED TO PREVENT 
PAYMENTS FOR UNLAWFUL GAMBLING 
Sec. 201. Policies and procedures required to prevent payments for unlawful 
gambling. 
Sec. 202. Technical and conforming amendment. 
TITLE III—INTERNET GAMBLING IN OR THROUGH FOREIGN 
JURISDICTIONS 
Sec. 301. Internet gambling in or through foreign jurisdictions. 
TITLE I—MODERNIZATION OF 
THE WIRE ACT OF 1961 
SEC. 101. DEFINITIONS. 
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; 
(2) by amending paragraph (5), as so des-
ignated, to read as follows: 
‘‘(5) The term ‘communication facility’ means 
any and all instrumentalities, personnel, and services 
(among other things, the receipt, forwarding, or de-
livery of communications) used or useful in the 
transmission of writings, signs, pictures, and sounds 
of all kinds by aid of wire, cable, radio, or an elec-
tromagnetic, photoelectronic or photooptical system, 
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or other like connection (whether fixed or mobile) 
between the points of origin and reception of such 
transmission.’’; and 
(3) by adding at the end the following: 
‘‘(6) The term ‘bets or wagers’— 
‘‘(A) means the staking or risking by any 
person of something of value upon the outcome 
of a contest of others, a sporting event, or a 
game predominantly subject to chance, upon an 
agreement or understanding that the person or 
another person will receive something of value 
in the event of a certain outcome; 
‘‘(B) includes the purchase of a chance or 
opportunity to win a lottery or other prize 
(which opportunity to win is predominantly sub-
ject to chance); 
‘‘(C) includes any scheme of a type de-
scribed in section 3702 of title 28; and 
‘‘(D) does not include— 
‘‘(i) any activity governed by the secu-
rities laws (as that term is defined in sec-
tion 3(a)(47) of the Securities Exchange 
Act of 1934) for the purchase or sale of se-
curities (as that term is defined in section 
3(a)(10) of that Act); 
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‘‘(ii) any transaction conducted on or 
subject to the rules of a registered entity 
or exempt board of trade under the Com-
modity Exchange Act; 
‘‘(iii) any over-the-counter derivative 
instrument; 
‘‘(iv) any other transaction that— 
‘‘(I) is excluded or exempt from 
regulation under the Commodity Ex-
change Act; or 
‘‘(II) is exempt from State gam-
ing or bucket shop laws under section 
12(e) of the Commodity Exchange Act 
or section 28(a) of the Securities Ex-
change Act of 1934; 
‘‘(v) any contract of indemnity or 
guarantee; 
‘‘(vi) any contract for insurance; 
‘‘(vii) any deposit or other transaction 
with an insured depository institution; 
‘‘(viii) participation in any game or 
contest in which participants do not stake 
or risk anything of value other than— 
‘‘(I) personal efforts of the par-
ticipants in playing the game or con-
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test or obtaining access to the Inter-
net; or 
‘‘(II) points or credits that the 
sponsor of the game or contest pro-
vides to participants free of charge 
and that can be used or redeemed 
only for participation in games or con-
tests offered by the sponsor; or 
‘‘(ix) participation in any fantasy or 
simulation sports game or educational 
game or contest in which (if the game or 
contest involves a team or teams) no fan-
tasy or simulation sports team is based on 
the current membership of an actual team 
that is a member of an amateur or profes-
sional sports organization (as those terms 
are defined in section 3701 of title 28) and 
that meets the following conditions: 
‘‘(I) All prizes and awards of-
fered to winning participants are es-
tablished and made known to the par-
ticipants in advance of the game or 
contest and their value is not deter-
mined by the number of participants 
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or the amount of any fees paid by 
those participants. 
‘‘(II) All winning outcomes re-
flect the relative knowledge and skill 
of the participants and are determined 
predominantly by accumulated statis-
tical results of the performance of in-
dividuals (athletes in the case of 
sports events) in multiple real-world 
sporting or other events. 
‘‘(III) No winning outcome is 
based— 
‘‘(aa) on the score, point- 
spread, or any performance or 
performances of any single real- 
world team or any combination of 
such teams; or 
‘‘(bb) solely on any single 
performance of an individual ath-
lete in any single real-world 
sporting or other event. 
‘‘(7) The terms ‘credit’, ‘creditor’, ‘credit card’, 
and ‘card issuer’ have the same meanings as in sec-
tion 103 of the Truth in Lending Act. 
‘‘(8) The term ‘electronic fund transfer’— 
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