‘‘(G) with respect to another entity that 
has accepted a bet or wager from any individual 
in violation of United States law, has purchased 
or otherwise obtained— 
‘‘(i) such entity; 
‘‘(ii) a list of the customers of such 
entity; or 
‘‘(iii) any other part of the equipment 
or operations of such entity; 
‘‘(H) is listed on a State gambling ex-
cluded persons list; or 
‘‘(I) fails to certify in writing, under pen-
alty of perjury, that the applicant or other such 
person, and all affiliated business entities (in-
cluding all entities under common control), has 
through its entire history— 
‘‘(i) not committed an intentional fel-
ony violation of Federal or State gambling 
laws; and 
‘‘(ii) used diligence to prevent any 
United States person from placing a bet on 
an Internet site in violation of Federal or 
State gambling laws. 
‘‘(4) APPEAL
OF
DETERMINATION.—With re-
spect to any applicant or other person that the Sec-
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
retary determines is not suitable for licensing within 
the meaning of this subchapter by reason of sub-
paragraph (E) or (F) of paragraph (3), and where 
the Secretary has not determined that such appli-
cant or person was acting in their capacity as a 
managerial employee of an Internet gambling Web 
site, the Secretary shall establish an appeals process 
by which such applicant or person may appeal the 
Secretary’s determination. 
‘‘(5) ONGOING REQUIREMENT.—A licensee (and 
any other person who is required to be determined 
to be suitable for licensing in connection with such 
licensee) shall meet the standards necessary to be 
suitable for licensing throughout the term of the li-
cense. 
‘‘(6) PROTECTION
OF
THE
PUBLIC
TRUST.— 
The Secretary may take such action as is necessary 
to protect the public trust, including the implemen-
tation of such safeguards as may be necessary to en-
sure the operation of an Internet gambling facility 
licensed under this subchapter is controlled only by 
persons who are suitable for licensing. 
‘‘(7) ENFORCEMENT ACTIONS.— 
‘‘(A) DETERMINATION OF UNSUITABILITY 
FOR CONTINUED LICENSURE.—If the Secretary 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
finds that an individual owner or holder of a se-
curity of a licensee, or of a holding or inter-
mediary company of a licensee or any person 
with an economic interest in a licensee or a di-
rector, partner, or officer of a licensee is not 
suitable for licensing, the Secretary may deter-
mine that the licensee is not qualified to con-
tinue as a licensee. 
‘‘(B) ACTION TO PROTECT THE PUBLIC IN-
TEREST, INCLUDING SUSPENSION.—If the Sec-
retary may determine that the licensee is not 
qualified to continue as a licensee, the Secretary 
shall propose action necessary to protect the 
public interest, including, if deemed necessary, 
the suspension of the authority of the licensee 
to engage in licensed activities. 
‘‘(C) IMPOSITION OF CONDITIONS INCLUD-
ING REMOVAL OF PARTIES.—Notwithstanding a 
determination under subparagraph (A), the 
Secretary may allow a licensee to continue en-
gaging in licensed activities by imposing condi-
tions on the licensee under penalty of revocation 
or suspension of the authority of the licensee to 
engage in licensed activities, including— 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘(i) the identification of any person 
determined to be unsuitable for licensing; 
and 
‘‘(ii) the establishment of appropriate 
safeguards to ensure such person is ex-
cluded from any interest in the licensed ac-
tivities. 
‘‘(e) ASSESSMENTS
FOR
ADMINISTRATIVE
EX-
PENSES.— 
‘‘(1) USER FEES.— 
‘‘(A) IN
GENERAL.—The cost of admin-
istering this subchapter with respect to each li-
censee, including the cost of any review or ex-
amination of a licensee to ensure compliance 
with the terms of the license and this sub-
chapter, shall be assessed by the Secretary 
against the licensee institution by written notice 
in an amount appropriate to meet the Sec-
retary’s expenses in carrying out such adminis-
tration, review, or examination. 
‘‘(B) DISPOSITION.—Amounts assessed by 
the Secretary as user fees under subparagraph 
(A) shall— 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘(i) be maintained by the Secretary 
solely for use in accordance with clause 
(ii); 
‘‘(ii) be available to the Secretary to 
cover all expenses incurred by the Sec-
retary in carrying out this subchapter; and 
‘‘(iii) not be construed to be Govern-
ment funds or appropriated monies, or 
subject to apportionment for the purposes 
of chapter 15 or any other authority. 
‘‘(C) 
HEARING.—Any 
licensee 
against 
whom an assessment is assessed under this 
paragraph shall be afforded an agency hearing 
if such person submits a request for such hear-
ing within 20 days after the issuance of the no-
tice of assessment. 
‘‘(D) COLLECTION.— 
‘‘(i) REFERRAL.—If any licensee fails 
to pay an assessment under this paragraph 
after the assessment has become final, the 
Secretary shall recover the amount as-
sessed by action in the appropriate United 
States district court. 
‘‘(ii) APPROPRIATENESS
OF
ASSESS-
MENT NOT REVIEWABLE.—In any civil ac-
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
tion under clause (i), the validity and ap-
propriateness of the assessment shall not 
be subject to review. 
‘‘(2) DIRECT AND EXCLUSIVE OBLIGATION OF 
LICENSEE.—The user fee shall be the direct and ex-
clusive obligation of the licensee and may not be de-
ducted from amounts available as deposits to any 
person placing a bet. 
‘‘(f) APPROVAL OF LICENSE.—The Secretary shall 
grant licenses under this subchapter if the applicant meets 
the criteria set by the Secretary set forth in this sub-
chapter and in any regulations promulgated thereunder. 
‘‘(g) SAFEGUARDS REQUIRED
OF LICENSEE.—No 
person may operate an Internet gambling facility in ac-
cordance with this subchapter unless the person maintains 
or requires mechanisms so that the following require-
ments, and the standards established under section 5384, 
are met with respect to any Internet bet or wager: 
‘‘(1) LEGAL AGE.—Appropriate safeguards to 
ensure that the individual placing a bet or wager is 
of legal age as defined by the law of the State or 
tribal area in which the individual is located at the 
time the bet or wager is placed. 
‘‘(2) 
PERMISSIBLE
LOCATION.—Appropriate 
safeguards to ensure that the individual placing a 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘(8) PAYMENT OF ASSESSMENTS.—Appropriate 
mechanisms to ensure that any assessment under 
subsection (e) is paid to the Secretary. 
‘‘(9) OTHER REQUIREMENTS.—Such other re-
quirements as the Secretary may establish by regula-
tion or order. 
‘‘(h) TERM AND RENEWAL OF LICENSE.— 
‘‘(1) TERM.—Any license issued under this sec-
tion shall be issued for a 5-year term beginning on 
the date of issuance. 
‘‘(2) RENEWAL.—Licenses may be renewed in 
accordance with the requirements prescribed by the 
Secretary pursuant to this subchapter. 
‘‘(i) REVOCATION OF LICENSE.— 
‘‘(1) IN GENERAL.—Any license granted under 
this subchapter may be revoked by the Secretary 
if— 
‘‘(A) the licensee fails to comply with any 
provision of this subchapter; 
‘‘(B) the licensee is determined to be un-
suitable for licensing, within the meaning of 
this subchapter; or 
‘‘(C) the licensee is determined to be tar-
geting marketing or advertising materials at in-
dividuals who are not of legal age to place a bet 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
or wager, as defined by the law of the State or 
tribal area in which the individuals are located. 
‘‘(2) FINAL ACTION.—Any revocation of a li-
cense under paragraph (1) shall be treated as a final 
action by the Secretary. 
‘‘(j) REGULATIONS.—The regulations prescribed by 
the Secretary under this subchapter shall include regula-
tions to fully implement— 
‘‘(1) safeguards required for licensees under 
subsection (g); and 
‘‘(2) the requirements for programs relating to 
the Problem Gambling, Responsible Gambling, and 
Self-Exclusion Program under section 5384. 
‘‘(k) ADMINISTRATIVE PROVISIONS.— 
‘‘(1) GENERAL POWERS OF SECRETARY.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
have the authority to engage in the following: 
‘‘(i) Investigate the suitability of each 
licensee to ensure compliance with this 
subchapter 
and 
regulations 
prescribed 
under this subchapter. 
‘‘(ii) Require licensees to maintain ap-
propriate procedures to ensure compliance 
with this subchapter and regulations pre-
scribed under this subchapter. 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘(iii) Require licensees to maintain 
substantial facilities involved with the proc-
essing of bets or wagers from the United 
States within the United States. 
‘‘(iv) Require that a majority of all of 
the employees of the applicant or licensee, 
and of its affiliated business entities, be 
residents or citizens of the United States. 
All entities under common control shall be 
considered affiliated business entities for 
the purposes of this subparagraph. 
‘‘(v) Require licensees to maintain in 
the United States all facilities that are es-
sential to the regulation of bets or wagers 
placed from the United States at a location 
that is accessible to the appropriate regu-
latory personnel at all times. 
‘‘(vi) Examine any licensee and any 
books, papers, records, or other data of li-
censees relevant to any recordkeeping or 
reporting requirements imposed by the 
Secretary under this subchapter. 
‘‘(vii) Require licensees to maintain all 
facilities within the United States for proc-
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
essing of bets or wagers made or placed 
from the United States. 
‘‘(viii) When determined by the Sec-
retary to be necessary, summon a licensee 
or an applicant for a license, an officer or 
employee of a licensee or any such appli-
cant (including a former officer or em-
ployee), or any person having possession, 
custody, or care of the reports and records 
required by the Secretary under this sub-
chapter, to appear before the Secretary or 
a designee of the Secretary at a time and 
place named in the summons and to 
produce such books, papers, records, or 
other data, and to give testimony, under 
oath, as may be relevant or material to any 
investigation in connection with the en-
forcement of this subchapter or any appli-
cation for a license under this subchapter. 
‘‘(ix) Investigate any violation of this 
subchapter and any regulation under this 
subchapter and any other violation of law 
relating to the operation of an Internet 
gambling facility. 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘(x) Conduct continuing reviews of 
applicants and licensees and the operation 
of Internet gambling facilities by use of 
technological means, onsite observation of 
facilities, including servers, or other rea-
sonable means to assure compliance with 
this subchapter and any regulations pro-
mulgated hereunder. 
‘‘(xi) Prohibit inappropriate adver-
tising practices by licensees, including un-
solicited emails targeting members of vul-
nerable populations, including problem 
gamblers and minors, or Internet adver-
tising linked to search terms associated 
with children, problem gamblers, or other 
topics deemed inappropriate. 
‘‘(B) EFFECT OF WTO RULING.—Clauses 
(iii) and (iv) of subparagraph (A) shall cease to 
have effect if a tribunal of the World Trade Or-
ganization of final arbitration rules that the im-
plementation of such clauses would violate the 
trade commitments of the United States under 
the World Trade Organization. 
‘‘(2) CONSULTATION WITH INDIAN TRIBES.—In 
implementing this subchapter, the Secretary shall 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
conduct meaningful consultation with Indian tribes 
regarding all aspects of this subchapter which affect 
Indian tribes, both as potential licensing entities or 
operating entities. 
‘‘(3) 
ADMINISTRATIVE
ASPECTS
OF
SUM-
MONS.— 
‘‘(A) 
PRODUCTION
AT
DESIGNATED 
SITE.—A summons issued pursuant to this sub-
section may require that books, papers, records, 
or other data stored or maintained at any place 
be produced at any business location of a li-
censee or applicant for a license or any des-
ignated location in any State or in any territory 
or other place subject to the jurisdiction of the 
United States not more than 500 miles distant 
from any place where the licensee or applicant 
for a license operates or conducts business in 
the United States. 
‘‘(B) NO LIABILITY FOR EXPENSES.—The 
United States shall not be liable for any ex-
pense incurred in connection with the produc-
tion of books, papers, records, or other data 
under this subsection. 
‘‘(C) SERVICE OF SUMMONS.—Service of a 
summons issued under this subsection may be 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
by registered mail or in such other manner cal-
culated to give actual notice as the Secretary 
may prescribe by regulation. 
‘‘(4) CONTUMACY OR REFUSAL.— 
‘‘(A) REFERRAL
TO
ATTORNEY
GEN-
ERAL.—In case of contumacy by a person 
issued a summons under this subsection or a 
refusal by such person to obey such summons 
or to allow the Secretary to conduct an exam-
ination, the Secretary shall refer the matter to 
the Secretary of the Treasury for referral to the 
Attorney General. 
‘‘(B) JURISDICTION OF COURT.—The At-
torney General may invoke the aid of any court 
of the United States to compel compliance with 
the summons within the jurisdiction of which— 
‘‘(i) the investigation which gave rise 
to the summons or the examination is 
being or has been carried on; 
‘‘(ii) the person summoned is an in-
habitant; or 
‘‘(iii) the person summoned carries on 
business or may be found. 
‘‘(C) COURT ORDER.—The court may issue 
an order requiring the person summoned to ap-
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
pear before the Secretary or a delegate of the 
Secretary to produce books, papers, records, 
and other data, to give testimony as may be 
necessary to explain how such material was 
compiled and maintained, to allow the Secretary 
to examine the business of a licensee, and to 
pay the costs of the proceeding. 
‘‘(D) FAILURE TO COMPLY WITH ORDER.— 
Any failure to obey the order of the court may 
be punished by the court as a contempt thereof. 
‘‘(E) SERVICE OF PROCESS.—All process 
in any case under this subsection may be served 
in any judicial district in which such person 
may be found. 
‘‘(5) COMPILATION OF DATASETS ON PLAYER 
BEHAVIOR.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
compile and make available to the public, on the 
Web site of the Secretary, datasets on player 
behavior. 
‘‘(B) REGULATIONS
REQUIRING
SUBMIS-
SION
OF
INFORMATION.—The Secretary shall 
prescribe regulations to require licensees under 
this subchapter to provide information on play-
er behavior that the Secretary determines is ap-
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
propriate for the datasets under subparagraph 
(A). 
‘‘(C) INFORMATION REQUIRED TO BE IN-
CLUDED.—Datasets prepared under this para-
graph shall include information on any indi-
vidual player, if requested by the Secretary, in-
cluding but not limited to information con-
cerning gambling frequency, gaming duration, 
the amount wagered, the number of bets placed, 
and net losses, provided that such request com-
plies with the provisions of subparagraph (D). 
‘‘(D) PROTECTION OF PRIVACY.—All infor-
mation provided pursuant to this paragraph 
shall be aggregated and anonymized, and shall 
not contain information that either alone or in 
combination with other data elements would 
permit identification of any individual player. 
‘‘(l) CIVIL MONEY PENALTIES.— 
‘‘(1) IN GENERAL.—The Secretary may assess 
upon any licensee or other person subject to the re-
quirements of this subchapter for any willful viola-
tion of this subchapter or any regulation prescribed 
or order issued under this subchapter, a civil penalty 
of not more than the greater of— 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘(A) the amount (not to exceed $100,000) 
involved in the violation, if any; or 
‘‘(B) $25,000. 
‘‘(2) ASSESSMENT.— 
‘‘(A) WRITTEN NOTICE.—Any penalty im-
posed under paragraph (1) may be assessed and 
collected by the Secretary by written notice. 
‘‘(B) FINALITY OF ASSESSMENT.—If, with 
respect to any assessment under paragraph (1), 
a hearing is not requested pursuant to subpara-
graph (E) within the period of time allowed 
under such subparagraph, the assessment shall 
constitute a final and unappealable order. 
‘‘(C) AUTHORITY
TO
MODIFY
OR
REMIT 
PENALTY.—The Secretary may compromise, 
modify, or remit any penalty which the Sec-
retary may assess or has already assessed 
under paragraph (1). 
‘‘(D) MITIGATING
FACTORS.—In deter-
mining the amount of any penalty imposed 
under paragraph (1), the Secretary shall take 
into account the appropriateness of the penalty 
with respect to— 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘(i) the size of the financial resources 
and the good faith of the person against 
whom the penalty is assessed; 
‘‘(ii) the gravity of the violation; 
‘‘(iii) the history of previous viola-
tions; and 
‘‘(iv) such other matters as justice 
may require. 
‘‘(E) 
HEARING.—The 
person 
against 
whom any penalty is assessed under paragraph 
(1) shall be afforded an agency hearing if such 
person submits a request for such hearing with-
in 20 days after the issuance of the notice of 
assessment. 
‘‘(F) COLLECTION.— 
‘‘(i) REFERRAL.—If any person fails 
to pay an assessment after any penalty as-
sessed under this paragraph has become 
final, the Secretary shall recover the 
amount assessed by action in the appro-
priate United States district court. 
‘‘(ii) APPROPRIATENESS OF PENALTY 
NOT
REVIEWABLE.—In any civil action 
under clause (i), the validity and appro-
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
priateness of the penalty shall not be sub-
ject to review. 
‘‘(G) DISBURSEMENT.—All penalties col-
lected under authority of this subsection shall 
be deposited into the Treasury. 
‘‘(3) CONDITION FOR LICENSURE.—Payment by 
a licensee of any civil penalty assessed under this 
subsection that has become final shall be a require-
ment for the retention of its license. 
‘‘(m) TREATMENT OF RECORDS.—In light of busi-
ness competition, confidentiality, and privacy concerns, 
the Secretary shall protect from disclosure information 
submitted in support of a license application under this 
subchapter and information collected in the course of reg-
ulating licensees to the full extent permitted by sections 
552 and 552a of title 5. 
‘‘(n) SUITABILITY FOR LICENSING REQUIREMENTS 
FOR CERTAIN SERVICE PROVIDERS.— 
‘‘(1) IN
GENERAL.—Any person that know-
ingly— 
‘‘(A) manages, administers, or controls 
bets or wagers that are initiated, received, or 
otherwise made within the United States, 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00032
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘(B) otherwise manages or administers the 
games with which such bets or wagers are asso-
ciated, or 
‘‘(C) develops, maintains or operates, or 
distributes or makes available for downloading 
software, other system programs or hardware 
that create, operate, or otherwise affect the out-
come of a game, 
shall meet all of the suitability for licensing criteria 
established under this section in the same manner 
and to the same extent as if that person were itself 
a licensee. 
‘‘(2) SUITABILITY
FOR
LICENSING
REQUIRE-
MENTS
FOR
CERTAIN
SERVICE
PROVIDERS.—Any 
failure on the part of person described in any sub-
paragraph of paragraph (1) to remain suitable for li-
censing shall be grounds for revocation of the au-
thority of the licensee for whom such service is pro-
vided to operate an Internet gambling facility, in the 
same manner and in accordance with subsection (i). 
‘‘(o) RELIANCE ON STATE AND TRIBAL REGULATORY 
BODY CERTIFICATIONS
OF SUITABILITY
FOR APPLI-
CANTS.— 
‘‘(1) QUALIFICATION
OF
STATE
AND
TRIBAL 
REGULATORY BODIES.— 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00033
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘(A) 
APPLICATION
FOR
DETERMINA-
TION.—Any State or tribal regulatory body with 
expertise in regulating gambling may— 
‘‘(i) notify the Secretary of its willing-
ness to review prospective applicants to 
certify whether any such applicant meets 
the qualifications established under this 
subchapter; and 
‘‘(ii) provide the Secretary with such 
documentation as the Secretary determines 
necessary for the Secretary to determine 
whether such State or tribal regulatory 
body is qualified to conduct such review 
and may be relied upon by the Secretary to 
make any such certification. 
‘‘(B) DETERMINATION
AND
NOTICE.— 
Within 60 days after receiving any notice under 
subparagraph (A)(i), the Secretary shall— 
‘‘(i) make the determination as to 
whether a State or tribal regulatory body 
is qualified to conduct a review of prospec-
tive applicants and may be relied upon to 
certify whether any such applicant meets 
the qualifications established under this 
subchapter; and 
VerDate Mar 15 2010 
22:40 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00034
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘(ii) notify the State or tribal regu-
latory body of such determination. 
‘‘(2) ACTIONS BY QUALIFIED AUTHORITIES.— 
During the period that any determination of quali-
fication under paragraph (1)(B) is in effect with re-
spect to any such State or tribal regulatory body, 
the State or tribal regulatory body— 
‘‘(A) may undertake reviews of any appli-
cant to determine whether the applicant or any 
person associated with the applicant meets the 
criteria for suitability for licensing established 
under this subchapter; 
‘‘(B) may impose on each such applicant 
an administrative fee or assessment for con-
ducting such review in an amount the regu-
latory body determines to be necessary to meet 
its expenses in the conduct of such review; and 
‘‘(C) shall process and assess each appli-
cant fairly and equally based on objective cri-
teria, regardless of any prior licensing of an ap-
plicant by the State or tribal regulatory body. 
‘‘(3) RELIANCE ON STATE OR TRIBAL CERTIFI-
CATION.—Any applicant may provide a certification 
of suitability for licensing made by any State or trib-
al regulatory body under paragraph (2), together 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00035
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
with all documentation the applicant has submitted 
to any such State or tribal regulatory body, to the 
Secretary, and any such certification and docu-
mentation shall be relied on by the Secretary as evi-
dence that an applicant has met the suitability for 
licensing requirements under this section. 
‘‘(4) AUTHORITY OF SECRETARY TO REVIEW.— 
Notwithstanding any certification of suitability for 
licensing made by any State or tribal regulatory 
body, the Secretary retains the authority to review, 
withhold, or revoke any license if the Secretary has 
reason to believe that any applicant or licensee does 
not meet the suitability requirements for licensing 
established under this section, or any other require-
ment of a licensee. 
‘‘(5) RELIANCE
ON
QUALIFIED
REGULATORY 
BODY FOR OTHER PURPOSES, INCLUDING EXAMINA-
TION AND ENFORCEMENT.—The Secretary shall rely 
on any State and tribal regulatory body found quali-
fied under this subsection for such other regulatory 
and enforcement activities as the Secretary finds to 
be useful and appropriate to carry out the purposes 
of this subchapter, including authority under para-
graph (6). 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00036
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘(6) ADDITIONAL
AUTHORITY
OF
QUALIFIED 
STATE
OR
TRIBAL
AUTHORITIES.—The qualified 
state or tribal authorities may— 
‘‘(A) examine licensees who are licensed 
under a State or tribal program referred to in 
paragraph (1); 
‘‘(B) employ enforcement agents with suf-
ficient training and experience to administer the 
requirements of this subchapter; and 
‘‘(C) enforce any requirement of this sub-
chapter that is within the jurisdiction of the 
qualified state or tribal authority through all 
appropriate means provided under this sub-
chapter and other provisions of law. 
‘‘(7) REVOCATION
OF
QUALIFICATION.—The 
Secretary may revoke, at any time and for any rea-
son, the qualification of any State or tribal regu-
latory body to certify or to conduct any other regu-
latory or enforcement activity to carry out the pur-
poses of this subchapter. 
‘‘(p) PREVENTION OF MINORS FROM PLACING BETS 
OR WAGERS.—The Secretary shall— 
‘‘(1) frequently monitor, evaluate, and measure 
compliance effectiveness of each licensee’s software, 
mechanisms, and other systems for preventing mi-
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00037
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
nors from placing bets or wagers through the Inter-
net site of the licensee; and 
‘‘(2) impose a sanction of either a fine, a rev-
ocation of license, or both, on a licensee whose minor 
protection software, mechanisms, and other systems 
are found to be insufficiently effective. 
‘‘(q) REQUIREMENTS WITH RESPECT TO CHILD SUP-
PORT DELINQUENTS.— 
‘‘(1) IN GENERAL.—When it is made known to 
the Secretary by a Federal or State court or a com-
petent State agency involved with the administration 
or enforcement of a court-ordered child support pay-
ment that a particular individual is delinquent with 
respect to court-ordered child support payments, the 
Secretary shall include that individual on the list es-
tablished under section 5384(c)(1)(A). 
‘‘(2) REMOVAL FROM LIST.—Individuals placed 
on the list pursuant to paragraph (1) shall be re-
moved from such list if the court or agency that 
made such individual’s delinquency known to the 
Secretary notifies the Secretary that such individual 
is no longer delinquent. 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00038
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘§ 5384. Problem Gambling, Responsible Gambling, 
Consumer Safeguards, and Self-Exclusion 
Program 
‘‘(a) REGULATIONS REQUIRED.—The Secretary and 
any State or tribal regulatory body that has been qualified 
under subsection 5383(o) shall prescribe regulations for 
the development of a Problem Gambling, Responsible 
Gambling, Consumer Safeguards, and Self-Exclusion Pro-
gram on the basis of standards that each licensee shall 
implement as a condition of licensure. 
‘‘(b) MINIMUM REQUIREMENTS.— 
‘‘(1) IN GENERAL.—Any application for a li-
cense shall include a submission to the Secretary or 
qualified State or tribal regulatory body setting forth 
a comprehensive program that is intended— 
‘‘(A) to verify the identity and age of each 
customer through the use of commercially avail-
able data sources or any approved government 
database that is available for access in real-time 
through an automated process; 
‘‘(B) to ensure that no customers under 
the legal age 21 may initiate or otherwise make 
any bets or wagers for real money; 
‘‘(C) to verify the State or tribal land in 
which the customer is located at the time the 
customer attempts to initiate a bet or wager; 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00039
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘(D) to ensure that no customer who is lo-
cated in a State or tribal land that opts out 
pursuant to section 5387 can initiate or other-
wise make a bet or wager prohibited by such 
opt-out; 
‘‘(E) to ensure that responsible gambling 
materials including materials on problem gam-
bling, services and resources to address problem 
gambling, descriptions of games offered by the 
licensee, and when appropriate, odds of winning 
or payout rates of games, and any other mate-
rials that the Secretary or qualified State or 
tribal regulatory body may deem appropriate 
are made available to customers; 
‘‘(F) to make available player-selectable re-
sponsible gambling options that may include, as 
appropriate to specific gambling games, a stake 
limit, loss limit, time-based loss limits, deposit 
limit, session time limit, time-based exclusion 
from all gambling and other similar options 
that the Secretary or qualified State or tribal 
regulatory body may deem appropriate and re-
quire to be made available; 
‘‘(G) to require each customer, before mak-
ing or placing any bet or wager, to establish 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00040
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
personal limits as a condition of play that apply 
across all betting sites, which may be in hourly, 
daily, weekly or monthly increments, at the dis-
cretion of the customer; 
‘‘(H) to protect the privacy and security of 
any customer in connection with any lawful 
Internet gambling activity; 
‘‘(I) to protect against fraud and to pro-
vide for dispute resolution relating to internet 
gambling activity through programs to insure 
the integrity and fairness of the games; and 
‘‘(J) to protect against money laundering 
relating to Internet gambling activities. 
‘‘(2) REQUIREMENTS FOR PROGRAMS ENSURING 
INTEGRITY AND FAIRNESS.—The programs referred 
to in paragraph (1)(I) to insure the integrity and 
fairness of the games shall include requirements 
for— 
‘‘(A) real-time, multiparty cryptographic 
protocols for random number generation where 
one of the parties is the player; 
‘‘(B) secure audit trails; 
‘‘(C) detailed player betting logs that 
record and store each wager placed by the play-
er; 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00041
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘(D) real time confirmation of high value 
bets or wagers, where appropriate; or 
‘‘(E) equally effective options that the Sec-
retary or qualified State or tribal regulatory of-
ficer or agency may determine to be appro-
priate. 
‘‘(c) PERIODIC REVIEW.— 
‘‘(1) IN GENERAL.—The Secretary shall, on a 
regular basis, review the minimum requirements 
under this section and may, based on the best avail-
able technology, update the standards that each li-
censee shall implement as a condition of licensure. 
‘‘(2) CONSULTATION.—In conducting the review 
required under paragraph (1), the Secretary shall 
consult with— 
‘‘(A) State and tribal gaming regulatory 
officials; 
‘‘(B) law enforcement officials; 
‘‘(C) experts in underage and problem 
gaming; 
‘‘(D) experts on individual privacy; 
‘‘(E) consumers; 
‘‘(F) on-line retailers of other age re-
stricted materials such as tobacco and alcohol 
products; 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00042
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘(G) licensees and other representatives of 
the gaming industry; 
‘‘(H) software developers with expertise in 
gaming, privacy, the payments systems avail-
able, and other relevant areas; and 
‘‘(I) such other relevant individuals as the 
Secretary may determine to be appropriate. 
‘‘(d) LIST
OF PERSONS SELF-EXCLUDED FROM 
GAMBLING ACTIVITIES.— 
‘‘(1) ESTABLISHMENT.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
provide by regulation for the establishment of a 
list of persons self-excluded from gambling ac-
tivities at all licensee sites. 
‘‘(B) PLACEMENT REQUEST.—Any person 
may request placement on the list of self-ex-
cluded persons by— 
‘‘(i) acknowledging in a manner to be 
established by the Secretary that the per-
son wishes to be denied gambling privi-
leges; and 
‘‘(ii) agreeing that, during any period 
of voluntary exclusion, the person may not 
collect any winnings or recover any losses 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00043
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
resulting from any gambling activity at 
any licensee sites. 
‘‘(2) 
PLACEMENT
AND
REMOVAL
PROCE-
DURES.—The regulations prescribed by the Sec-
retary under paragraph (1)(A) shall establish proce-
dures for placements on, and removals from, the list 
of self-excluded persons. 
‘‘(3) LIMITATION ON LIABILITY.— 
‘‘(A) IN
GENERAL.—The United States, 
the Secretary, an enforcement agent, or a li-
censee, or any employee or agent of the United 
States, the Secretary, an enforcement agent, or 
a licensee, shall not be liable to any self-ex-
cluded person or to any other party in any judi-
cial or administrative proceeding for any harm, 
monetary or otherwise, which may arise as a re-
sult of— 
‘‘(i) any failure to withhold gambling 
privileges from, or to restore gambling 
privileges to, a self-excluded person; or 
‘‘(ii) otherwise permitting a self-ex-
cluded person to engage in gambling activ-
ity while on the list of self-excluded per-
sons. 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00044
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘(B) RULE OF CONSTRUCTION.—No provi-
sion of subparagraph (A) shall be construed as 
preventing the Director from assessing any reg-
ulatory sanction against a licensee for failing to 
comply with the minimum standards prescribed 
pursuant to this subsection. 
‘‘(4) DISCLOSURE PROVISIONS.— 
‘‘(A) IN GENERAL.—Notwithstanding any 
other provision of Federal or State law, the list 
of self-excluded persons shall not be open to 
public inspection. 
‘‘(B) AFFILIATE
DISCLOSURE.—Any li-
censees may disclose the identities of persons on 
the self-excluded list to any affiliated company 
or, where required to comply with this sub-
section, any service provider, to the extent that 
the licensee ensures that any affiliated company 
or service provider maintains such information 
under confidentiality provisions comparable to 
those in this subsection. 
‘‘(5) LIMITATION ON LIABILITY FOR DISCLO-
SURE.—A licensee or an employee, agent, or affiliate 
of a licensee shall not be liable to any self-excluded 
person or to any other party in any judicial pro-
ceeding for any harm, monetary or otherwise, which 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00045
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
may arise as a result of disclosure or publication in 
any manner. 
‘‘(e) GAMBLING BY PROHIBITED PERSONS.— 
‘‘(1) PROHIBITION
BENEFITTING
FROM
PRO-
HIBITED
GAMBLING
ACTIVITY.—A person who is 
prohibited from gambling with a licensee by law, or 
by order of the Secretary or any court of competent 
jurisdiction, including any person on the self-exclu-
sion list as established in accordance with subsection 
(d), shall not collect, in any manner or proceeding, 
any winnings or recover any losses arising as a re-
sult of any prohibited gambling activity. 
‘‘(2) FORFEITURE.—In addition to any other 
penalty provided by law, any money or thing of value 
that has been obtained by, or is owed to, any prohib-
ited person by a licensee as a result of bets or wa-
gers made by a prohibited person shall be subject to 
forfeiture by order of the Secretary, following notice 
to the prohibited person and opportunity to be 
heard. 
‘‘(3) DEPOSIT
OF
FORFEITED
FUNDS.—Any 
funds forfeited pursuant to this subsection shall be 
deposited into the general fund of the Treasury. 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00046
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘(4) 
PERSONS
SELF-EXCLUDED.—Licensees 
may not accept bets or wagers from persons on the 
list established pursuant to subsection (d)(1)(A). 
‘‘(f) PROBLEM OR COMPULSIVE GAMBLERS NOT ON 
THE LIST OF SELF-EXCLUDED PERSONS.— 
‘‘(1) PUBLIC AWARENESS PROGRAM.— 
‘‘(A) IN
GENERAL.—The Secretary and 
any State or tribal regulatory body that has 
been qualified under subsection 5383(o) shall 
provide by regulation for the establishment of a 
program to alert the public to the existence, 
consequences, and availability of the self-exclu-
sion list, and shall prepare and promulgate 
written materials to be used in such a program. 
‘‘(B) LICENSEE-PROVIDED
PUBLICITY.— 
Regulations prescribed under subparagraph (A) 
may require a licensee to make available lit-
erature or screen displays relating to the exist-
ence of the program. 
‘‘(2) RULE OF CONSTRUCTION.—No provision 
of this subsection shall be construed as creating a 
legal duty in the Secretary, a qualified State or trib-
al regulatory body, a licensee, or any representative 
of a licensee to identify or to exclude problem or 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00047
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
compulsive gamblers not on the list of self-excluded 
persons. 
‘‘(3) IMMUNITY.—The United States, the Sec-
retary, a qualified State or tribal regulatory body, a 
licensee, and any employee or agent of a licensee, 
shall not be liable to any person in any proceeding 
for losses or other damages of any kind arising out 
of that person’s gambling activities based on a claim 
that the person was a compulsive, problem, or patho-
logical gambler. 
‘‘§ 5385. Financial transaction providers 
‘‘(a) IN GENERAL.—No financial transaction pro-
vider shall be held liable for engaging in financial activities 
and transactions for or on behalf of a licensee or involving 
a licensee, including payments processing activities, unless 
such provider has knowledge that the specific financial ac-
tivities or transactions are conducted in violation of this 
subchapter and with applicable Federal and State laws. 
‘‘(b) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
‘‘(1) FINANCIAL
TRANSACTION
PROVIDER.— 
The term ‘financial transaction provider’ means a 
creditor, credit card issuer, financial institution, op-
erator of a terminal at which an electronic fund 
transfer may be initiated, money transmitting busi-
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00048
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
ness, or international, national, regional, or local 
payment network utilized to effect a credit trans-
action, electronic fund transfer, stored value product 
transaction, or money transmitting service, or a par-
ticipant in such network, or other participant in a 
payment system. 
‘‘(2) OTHER TERMS.— 
‘‘(A) CREDIT, CREDITOR, CREDIT
CARD, 
AND CARD ISSUER.—The terms ‘credit’, ‘cred-
itor’, ‘credit card’, and ‘card issuer’ have the 
meanings given the terms in section 103 of the 
Truth in Lending Act. 
‘‘(B) ELECTRONIC FUND TRANSFER.—The 
term ‘electronic fund transfer’— 
‘‘(i) has the meaning given the term 
in section 903 of the Electronic Fund 
Transfer Act, except that the term includes 
transfers that would otherwise be excluded 
under section 903(6)(E) of such Act; and 
‘‘(ii) includes any fund transfer cov-
ered by Article 4A of the Uniform Com-
mercial Code, as in effect in any State. 
‘‘(C) FINANCIAL INSTITUTION.—The term 
‘financial institution’ has the meaning given the 
term in section 903 of the Electronic Fund 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00049
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
Transfer Act, except that such term does not 
include a casino, sports book, or other business 
at or through which bets or wagers may be 
placed or received. 
‘‘(D) 
INSURED
DEPOSITORY
INSTITU-
TION.—The term ‘insured depository institu-
tion’— 
‘‘(i) has the meaning given the term 
in section 3(c) of the Federal Deposit In-
surance Act; and 
‘‘(ii) includes an insured credit union 
(as defined in section 101 of the Federal 
Credit Union Act). 
‘‘(E) MONEY
TRANSMITTING
BUSINESS 
AND
MONEY
TRANSMITTING
SERVICE.—The 
terms 
‘money 
transmitting 
business’ 
and 
‘money transmitting service’ have the meanings 
given the terms in section 5330(d) (determined 
without regard to any regulations prescribed by 
the Secretary under such section). 
‘‘§ 5386. List of unlawful Internet gambling enter-
prises 
‘‘(a) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00050
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘(1) UNLAWFUL INTERNET GAMBLING ENTER-
PRISE.—The term ‘unlawful Internet gambling en-
terprise’ means any person who, more than 10 days 
after the date of the enactment of this section— 
‘‘(A) violates a provision of section 5363; 
‘‘(B) knowingly receives or transmits funds 
intended primarily for a person described in 
subparagraph (A); or 
‘‘(C) knowingly assists in the conduct of a 
person described in subparagraph (A) or (B). 
‘‘(2) DIRECTOR.—The term ‘Director’ means 
the Director of the Financial Crimes Enforcement 
Network. 
‘‘(b) LIST OF UNLAWFUL INTERNET GAMBLING EN-
TERPRISES.— 
‘‘(1) IN GENERAL.—Not later than 120 days 
after the date of the enactment of this section, the 
Director shall submit to the Secretary a list of un-
lawful Internet gambling enterprises and shall regu-
larly update such list in accordance with the proce-
dures described in paragraph (3). 
‘‘(2) CONTENTS
OF
LIST.—The list prepared 
under paragraph (1) shall include the following in-
formation for each such unlawful Internet gambling 
enterprise: 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00051
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘(A) All known Internet Web site address-
es of the enterprise. 
‘‘(B) The names of all known owners and 
operators of the enterprise. 
‘‘(C) To the extent known, information 
identifying the financial agents and account 
numbers of the enterprise and the persons list-
ed under subparagraph (B). 
‘‘(3) DISTRIBUTION OF LIST BY SECRETARY.— 
The Secretary shall make available— 
‘‘(A) a copy of the information provided 
under subparagraphs (A) and (B) of paragraph 
(2) on the Internet Web site of the Secretary of 
the Treasury; 
‘‘(B) to all persons who are required to 
comply with the regulations prescribed under 
the authority provided in section 5364 a copy of 
all the information provided under paragraph 
(1) in an electronic format compatible with the 
Specially Designated Nationals list maintained 
by the Office of Foreign Assets Control; and 
‘‘(C) any information required under this 
paragraph not later than 10 days after receiv-
ing any new or updated list from the Director. 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00052
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘(4) PROCEDURES.—The procedures described 
in this paragraph are the following: 
‘‘(A) INVESTIGATION.—The Director shall 
investigate entities that appear to be unlawful 
Internet gambling enterprises. An initial inves-
tigation shall be completed before the end of the 
60-day period beginning on the date of enact-
ment of this section. After the initial investiga-
tion, the Director shall regularly investigate en-
tities that appear to be unlawful Internet gam-
bling enterprises. If the Director discovers evi-
dence sufficient to prove a prima facie case that 
any person is an unlawful Internet gambling 
enterprise, the Director shall provide the notice 
required under subparagraph (C). 
‘‘(B) REQUESTS.—Any Federal, State, 
tribal, or local law enforcement official, any af-
fected sports organization, any person directly 
harmed by unlawful Internet gambling, any fi-
nancial transaction provider, and any inter-
active computer service (as such terms are de-
fined in section 5362) shall have the right, but 
not the obligation, to make a written request to 
the Director for the addition of any person to 
the list of unlawful Internet gambling enter-
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00053
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
prises. If the Director determines that the evi-
dence submitted is sufficient to prove a prima 
facie case that such person is an unlawful 
Internet gambling enterprise, the Director shall 
provide the notice required under subparagraph 
(C) to each person identified as an alleged un-
lawful Internet gambling enterprise. The Direc-
tor also shall provide written notice of its deci-
sion under this subparagraph, including a deci-
sion not to add a person to the list required 
under paragraph (1), to the requesting party no 
later than 30 days after the request is received. 
‘‘(C) NOTICE.—Not fewer than 30 days 
before adding an unlawful Internet gambling 
enterprise, or an owner or operator thereof, to 
the list required under paragraph (1), the Di-
rector shall provide written notice to such en-
terprise, owner, or operator. Any enterprise, 
owner, or operator receiving such notice may 
contest the Director’s determination by written 
appeal to the Director not more than 30 days 
after receiving notice. 
‘‘(D) OPPORTUNITY FOR HEARING.—If a 
person properly submits a written appeal under 
subparagraph (C), the Director shall not in-
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00054
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
clude such person in the list required under 
paragraph (1) unless and until the Director 
provides such person with an opportunity for a 
hearing not more than 30 days after receiving 
written notice of appeal. Not more than 10 days 
after an opportunity for hearing is afforded, 
whether or not the person requesting the hear-
ing appears at such hearing, the Director shall 
proceed to add such person to the list of unlaw-
ful Internet gambling enterprises unless the Di-
rector determines, based on a preponderance of 
the evidence, that such person is not an unlaw-
ful Internet gambling enterprise. 
‘‘(E) INJUNCTIVE
RELIEF.—Any person 
that the Director determines shall be included 
in the list required under paragraph (1) after 
such person appears at a hearing described in 
subparagraph (D) and any person included in 
such list who did not receive the notice required 
under subparagraph (C), may petition for in-
junctive relief in the United States District 
Court for the District of Columbia, which shall 
have exclusive jurisdiction to hear challenges 
pursuant to this section. The petitioner shall 
have the burden of establishing by a preponder-
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00055
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
ance of the evidence that such person is not an 
unlawful Internet gambling enterprise. Only 
persons designated by the Director for inclusion 
on the list of unlawful Internet gambling enter-
prises, and other owners or operators of an en-
terprise to be so listed, shall have standing to 
contest the Director’s determination. The court 
may enjoin the Director and the Secretary not 
to add or remove the petitioner from the list of 
unlawful Internet gambling enterprises, and no 
other judicial recourse shall be permitted. 
‘‘(c) EFFECT OF LIST.—A financial transaction pro-
vider shall be deemed to have actual knowledge that a per-
son is an unlawful Internet gambling enterprise to the ex-
tent that such person is identified on the list available to 
the public, or on a non-public list made available to such 
financial transaction provider, by the Secretary as de-
scribed in subsection (b)(2), provided that the list shall 
not be deemed to be the sole source of actual knowledge. 
‘‘§ 5387. Limitation of licenses in States and Indian 
lands 
‘‘(a) STATE OPT-OUT EXERCISE.— 
‘‘(1) LIMITATIONS IMPOSED BY STATES.— 
‘‘(A) IN GENERAL.—No licensee may en-
gage, under any license issued under this sub-
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00056
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
chapter, in the operation of an Internet gam-
bling facility that knowingly accepts bets or wa-
gers initiated by persons who reside in any 
State which provides notice that it will limit 
such bets or wagers, if the Governor or other 
chief executive officer of such State informs the 
Director of such limitation, in a manner which 
clearly identifies the nature and extent of such 
limitation, before the end of the period begin-
ning on the date of the enactment of the Inter-
net Gambling Regulation, Consumer Protection, 
and Enforcement Act and ending on the date 
on which such State’s legislature has conducted 
one full general legislative session, where such 
session began after the date of the enactment 
of such 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). 
‘‘(B) COORDINATION BETWEEN STATE AND 
TRIBAL OPT-OUT EXERCISES.—Any State limi-
tation under subparagraph (A) shall not apply 
to the acceptance by a licensee of bets or wa-
gers from persons located within the tribal 
lands of an Indian tribe that— 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00057
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘(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 
making 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. 
‘‘(D) TRIBAL STATUS OR CATEGORY NOT 
IMPACTED.—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
RE-
QUIRED.—Operating under a license issued pur-
suant to this subchapter shall not require, or 
impose any requirement on, an Indian tribe to 
negotiate a new agreement, or renegotiate any 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00058
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
existing agreement, limitation or other provision 
of a tribal-State compact, agreement, or other 
understanding with respect to gaming or rev-
enue-sharing, with regard to any Internet bet or 
wager occurring pursuant to a license issued by 
the Secretary under this subchapter. 
‘‘(2) CHANGES TO STATE LIMITATIONS.—The 
establishment, 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 establish-
ment, repeal, or amendment is provided by the 
Governor or other chief executive officer of such 
State in writing to the Secretary; or 
‘‘(B) the effective date of such establish-
ment, 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 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00059
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
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 ex-
tent 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 Enforcement Act, or in accordance with para-
graph (2), until such time as any notice of any 
amendment or repeal of such specific limitation be-
comes effective under paragraph (2). 
‘‘(2) CHANGES
TO
INDIAN
TRIBE
LIMITA-
TIONS.—The establishment, repeal, or amendment 
by any Indian tribe of any limitation referred to in 
paragraph (1) after the end of the 90-day period be-
ginning on the date of the enactment of this sub-
chapter 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 establish-
ment, repeal, or amendment is provided by the 
principal chief or other chief executive officer of 
such Indian tribe in writing to the Secretary; or 
‘‘(B) the effective date of such establish-
ment, repeal, or amendment. 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00060
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘(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 
effective measures to ensure that any licensee under 
this subchapter, as a condition of the license, com-
plies 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. 
‘‘(3) VIOLATIONS.—It shall be a violation of 
this subchapter for any licensee knowingly to accept 
bets or wagers initiated or otherwise made by per-
sons located within any State or in the tribal lands 
of any Indian tribe for which a notice is in effect 
under subsection (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 agen-
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00061
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
cy 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 residents of that State has been or is threat-
ened or adversely affected by a violation by a li-
censee 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 behalf 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. 
‘‘§ 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 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00062
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
is transmitted or otherwise facilitated with a credit card 
(as defined in section 5362(11)). 
‘‘(b) EXCEPTION.— 
‘‘(1) CLARIFICATION OF SCOPE.—For any per-
son 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 conducted 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. 
‘‘§ 5390. State and tribal lotteries 
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of this subchapter, this subchapter shall not apply 
to Internet gambling conducted by any State or tribal lot-
tery authority when conducted in accordance with sub-
paragraph (B) or (C) of section 5362(10), as clarified by 
section 5362(10)(E). 
‘‘(b) RULE OF CONSTRUCTION.—For purposes of the 
clarification made by subparagraph (E) of section 
5362(10) to the meaning and intent of subparagraphs (B) 
and (C) of such section, Internet gambling described in 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00063
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
subsection (a) is hereby expressly permitted, and operators 
of any State or tribal lottery authority conducting Internet 
gambling facilities operating in accordance with such sub-
paragraph (B) or (C), as clarified by such subparagraph 
(E), and vendors, suppliers and service providers to such 
State or tribal lottery authority, shall not be required to 
be licensed under this subchapter. 
‘‘(c) APPLICABILITY OF OTHER PROVISIONS TO LOT-
TERY ACTIVITY.—To clarify existing law, section 1084 of 
title 18 shall not apply to any of the following that occurs 
in connection with any Internet gambling conducted by 
any State or tribal lottery authority when conducted in 
accordance with subparagraph (B) or (C) of section 
5362(10), as clarified by section 5362(10)(E): 
‘‘(1) Any Internet bet or wager, including any 
transmission thereof. 
‘‘(2) Any transmission of information assisting 
in the placing of bets or wagers. 
‘‘(3) Any transmission entitling the recipient to 
receive money or credit as a result of bets or wagers, 
or for information assisting in the placing of bets or 
wagers. 
‘‘(d) AUTHORIZATION
OF SPONSOR.—No licensee 
may offer services relating to any lottery sponsored by a 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00064
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
State, tribal, or other governmental body without the au-
thorization of the official sponsor. 
‘‘§ 5391. Safe harbors 
‘‘It shall be a complete defense against any prosecu-
tion or enforcement action under any Federal or State law 
against any person possessing a valid license under this 
subchapter that the activity is authorized under and has 
been carried out lawfully under the terms of this sub-
chapter. 
‘‘§ 5392. Relation to section 1084 of title 18 and the 
Unlawful Internet Gambling Enforcement 
Act 
‘‘Section 1084 of title 18 and subchapter IV of this 
chapter shall not apply to any Internet bet or wager occur-
ring pursuant to a license issued in accordance with this 
subchapter. 
‘‘§ 5393. Cheating and other fraud 
‘‘(a) ELECTRONIC
CHEATING
DEVICES
PROHIB-
ITED.—No person initiating, receiving, or otherwise mak-
ing a bet or wager with a licensee, or sending, receiving, 
or inviting information assisting with a bet or wager with 
a licensee, knowingly shall use, or assist another in the 
use of, an electronic, electrical, or mechanical device which 
is designed, constructed, or programmed specifically for 
use in obtaining an advantage in any game authorized 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00065
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
under this subchapter, where such advantage is prohibited 
or otherwise violates the rules of play established by the 
licensee. 
‘‘(b) ADDITIONAL OFFENSE.—No person initiating, 
receiving, or otherwise making a bet or wager with a li-
censee, or sending, receiving, or inviting information as-
sisting with a bet or wager with a licensee, knowingly shall 
use or possess any cheating device with intent to cheat 
or defraud any licensee or other persons placing bets or 
wagers with such licensee. 
‘‘(c) PERMANENT INJUNCTION.—Upon conviction of 
a person for violation of this section, the court may enter 
a permanent injunction enjoining such person from initi-
ating, receiving, or otherwise making bets or wagers or 
sending, receiving, or inviting information assisting in the 
placing of bets or wagers. 
‘‘(d) CRIMINAL PENALTY.—Whoever violates sub-
section (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 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00066
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
(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.’’. 
SEC. 3. REPORT REQUIRED. 
(a) IN GENERAL.—Before the end of the 1-year pe-
riod beginning on the effective date of the regulations pre-
scribed 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 sub-
mitted under subsection (a) shall include the following in-
formation: 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00067
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
(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 
actions 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, compul-
sive gambling, money laundering, and fraud, and in 
combating tax avoidance relating to Internet gam-
bling. 
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 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00068
Fmt 6652
Sfmt 6201
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS
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 de-
termine to be appropriate to implement subchapter V of 
chapter 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 enactment 
of this Act. 
(b) SCOPE OF APPLICATION.—The amendment made 
by section 2(a) shall apply after the end of the 90-day 
period beginning on the date of the publication of the reg-
ulations in final form in accordance with subsection (a). 
Æ 
VerDate Mar 15 2010 
22:01 Mar 21, 2011
Jkt 099200
PO 00000
Frm 00069
Fmt 6652
Sfmt 6301
E:\BILLS\H1174.IH
H1174
mstockstill on DSKH9S0YB1PROD with BILLS