HR 4411 PCS 
‘‘(A) has the same meaning as in section 
903 of the Electronic Fund Transfer Act, ex-
cept that such term includes transfers that 
would otherwise be excluded under section 
903(6)(E) of that Act; and 
‘‘(B) includes any fund transfer covered by 
Article 4A of the Uniform Commercial Code, as 
in effect in any State. 
‘‘(9) The term ‘financial institution’ has the 
same meaning as in section 903 of the Electronic 
Fund 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 re-
ceived. 
‘‘(10) The term ‘financial transaction provider’ 
has the same meaning as in section 5361 of title 31 
(as added by title II of this Act). 
‘‘(11) The term ‘foreign jurisdiction’ means a 
jurisdiction of a foreign country or political subdivi-
sion thereof. 
‘‘(12) The term ‘gambling business’ means a 
business of betting or wagering. 
‘‘(13) The term ‘information assisting in the 
placing of bets or wagers’ means information know-
ingly transmitted by an individual in a gambling 
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business that enables or facilitates a bet or wager 
and does not include— 
‘‘(A) any posting or reporting of any edu-
cational information on how to make a legal bet 
or wager or the nature of betting or wagering, 
as long as such posting or reporting does not 
solicit or provide information for the purpose of 
facilitating or enabling the placing or receipt of 
bets or wagers in a jurisdiction where such bet-
ting is illegal; or 
‘‘(B) advertising relating to betting or wa-
gering in a jurisdiction where such betting or 
wagering is legal, as long as such advertising 
does not solicit or provide information for the 
purpose of facilitating or enabling the placing 
or receipt of bets or wagers in a jurisdiction 
where such betting is illegal. 
‘‘(14) The term ‘insured depository institu-
tion’— 
‘‘(A) has the same meaning as in section 
3 of the Federal Deposit Insurance Act; and 
‘‘(B) includes an insured credit union (as 
defined in section 101 of the Federal Credit 
Union Act). 
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‘‘(15) The term ‘interactive computer service’ 
has the same meaning as in section 230(f) of the 
Communications Act of 1934. 
‘‘(16) The terms ‘money transmitting business’ 
and ‘money transmitting service’ have the same 
meanings as in section 5330(d) (determined without 
regard to any regulations prescribed by the Sec-
retary thereunder). 
‘‘(17) The terms ‘own or control’ and to be 
‘owned or controlled’ include circumstances within 
the meaning of section 2(a)(2) of the Bank Holding 
Company Act of 1956. 
‘‘(18) The term ‘person’ includes a government 
(including any governmental entity (as defined in 
section 3701(2) of title 28)). 
‘‘(19) The term ‘State’ means a State of the 
United States, the District of Columbia, or a com-
monwealth, territory, or possession of the United 
States. 
‘‘(20) The term ‘tribe’ or ‘tribal’ means an In-
dian tribe, as defined under section 4(5) of the In-
dian Gaming Regulatory Act of 1988). 
‘‘(21) For purposes of Section 1085(b), the 
term ‘account’ means— 
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‘‘(A) the unpaid balance of money or its 
equivalent received or held by an insured depos-
itory institution in the usual course of business 
and for which it has given or is obligated to 
give credit, either conditionally or uncondition-
ally, to an account, including interest credited, 
or which is evidenced by an instrument on 
which the depository institution is primarily lia-
ble; and 
‘‘(B) money received or held by an insured 
depository institution, or the credit given for 
money or its equivalent received or held by the 
insured depository institution in the usual 
course of business for a special or specific pur-
pose, regardless of the legal relationships estab-
lished thereby, including escrow funds, funds 
held as security for securities loaned by the de-
pository institution, funds deposited as advance 
payment on subscriptions to United States Gov-
ernment securities, and funds held to meet its 
acceptances.’’. 
SEC. 102. MODIFICATION OF EXISTING PROHIBITION. 
Section 1084 of title 18, United States Code, is 
amended to read as follows: 
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‘‘§ 1084. Use of a communication facility to transmit 
bets or wagers; criminal penalties 
‘‘(a) Except as otherwise provided in this section, 
whoever, being engaged in a gambling business, know-
ingly— 
‘‘(1) uses a communication facility for the 
transmission in interstate or foreign commerce, 
within the special maritime and territorial jurisdic-
tion of the United States, or to or from any place 
outside the jurisdiction of any nation with respect to 
any transmission to or from the United States, of— 
‘‘(A) bets or wagers; 
‘‘(B) information assisting in the placing 
of bets or wagers; or 
‘‘(C) a communication, which entitles 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; or 
‘‘(2) accepts, in connection with the trans-
mission of a communication in interstate or foreign 
commerce, within the special maritime and terri-
torial jurisdiction of the United States, or to or from 
any place outside the jurisdiction of any nation with 
respect to any transmission to or from the United 
States of bets or wagers or information assisting in 
the placing of bets or wagers— 
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‘‘(A) credit, or the proceeds of credit, ex-
tended to or on behalf of another (including 
credit extended through the use of a credit 
card); 
‘‘(B) an electronic fund transfer or funds 
transmitted by or through a money transmit-
ting business, or the proceeds of an electronic 
fund transfer or money transmitting service, 
from or on behalf of the other person; 
‘‘(C) any check, draft, or similar instru-
ment which is drawn by or on behalf of the 
other person and is drawn on or payable 
through any financial institution; or 
‘‘(D) the proceeds of any other form of fi-
nancial transaction as the Secretary of the 
Treasury and the Board of Governors of the 
Federal Reserve System may prescribe by regu-
lation which involves a financial institution as a 
payor or financial intermediary on behalf of or 
for the benefit of the other person, 
shall be fined under this title or imprisoned not more than 
five years, or both. 
‘‘(b) Nothing in this section prohibits— 
‘‘(1) the transmission of information assisting 
in the placing of bets or wagers for use in news re-
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porting if such transmission does not solicit or pro-
vide information for the purpose of facilitating or 
enabling the placing or receipt of bets or wagers in 
a jurisdiction where such betting is illegal; 
‘‘(2) the transmission of information assisting 
in the placing of bets or wagers from a State or for-
eign country where such betting or wagering is per-
mitted under Federal, State, tribal, or local law into 
a State or foreign country in which such betting on 
the same event is permitted under Federal, State, 
tribal, or local law; or 
‘‘(3) the interstate transmission of information 
relating to a State-specific lottery between a State or 
foreign country where such betting or wagering is 
permitted under Federal, State, tribal, or local law 
and an out-of-State data center for the purposes of 
assisting in the operation of such State-specific lot-
tery. 
‘‘(c) Nothing in this section prohibits the use of a 
communication facility for the transmission of bets or wa-
gers or information assisting in the placing of bets or wa-
gers, if— 
‘‘(1) at the time the transmission occurs, the 
individual or entity placing the bets or wagers or in-
formation assisting in the placing of bets or wagers, 
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the gambling business, and, subject to section 
1084(b)(3), any individual or entity acting in con-
cert with a gambling business to process the bets or 
wagers are physically located in the same State, and 
for class II or class III gaming under the Indian 
Gaming Regulatory Act, are physically located on 
Indian lands within that State; 
‘‘(2) the State or tribe has explicitly authorized 
such bets and wagers, the State or tribal law re-
quires a secure and effective location and age 
verification system to assure compliance with age 
and location requirements, and the gambling busi-
ness and any individual or entity acting in concert 
with a gambling business to process the bets or wa-
gers complies with such law; 
‘‘(3) the State has explicitly authorized and li-
censed the operation of the gambling business and 
any individual or entity acting in concert with a 
gambling business to process the bets and wagers 
within its borders or the tribe has explicitly author-
ized and licensed the operation of the gambling busi-
ness and any individual or entity acting in concert 
with a gambling business to process the bets and 
wagers, on Indian lands within its jurisdiction; 
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‘‘(4) with respect to class II or class III gam-
ing, the game and gambling business complies with 
the requirements of the Indian Gaming Regulatory 
Act; and 
‘‘(5) with respect to class III gaming under the 
Indian Gaming Regulatory Act, the game is author-
ized under, and is conducted in accordance with, the 
respective Tribal-State compact of the Tribe having 
jurisdiction over the Indian lands where the indi-
vidual or entity placing the bets or wagers or infor-
mation assisting in the placing of bets or wagers, the 
gambling business, and any individual or entity act-
ing in concert with a gambling business to process 
those bets or wagers are physically located, and such 
Tribal-State compact expressly provides that the 
game may be conducted using a communication fa-
cility to transmit bets or wagers or information as-
sisting in the placing of bets or wagers. 
For purposes of this subsection, the intermediate routing 
of electronic data constituting or containing all or part of 
a bet or wager, or all or part of information assisting in 
the placing of bets or wagers, shall not determine the loca-
tion or locations in which a bet or wager is transmitted, 
initiated, received or otherwise made; or from or to which 
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a bet or wager, or information assisting in the placing of 
bets or wagers, is transmitted. 
‘‘(d) Nothing in this section creates immunity from 
criminal prosecution under any laws of any State or tribe. 
‘‘(e) Nothing in this section authorizes activity that 
is prohibited under chapter 178 of title 28, United States 
Code. 
‘‘(f) When any common carrier, subject to the juris-
diction of the Federal Communications Commission, is no-
tified in writing by a Federal, State, tribal, or local law 
enforcement agency, acting within its jurisdiction, that 
any communication facility furnished by it is being used 
or will be used by its subscriber for the purpose of trans-
mitting or receiving gambling information in interstate or 
foreign commerce, within the special maritime and terri-
torial jurisdiction of the United States, or to or from any 
place outside the jurisdiction of any nation with respect 
to any transmission to or from the United States in viola-
tion of Federal, State, tribal, or local law, it shall dis-
continue or refuse, the leasing, furnishing, or maintaining 
of such facility, after reasonable notice to the subscriber, 
but no damages, penalty or forfeiture, civil or criminal, 
shall be found against any common carrier for any act 
done in compliance with any notice received from a law 
enforcement agency. Nothing in this section shall be 
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deemed to prejudice the right of any person affected there-
by to secure an appropriate determination, as otherwise 
provided by law, in a Federal court or in a State, tribal, 
or local tribunal or agency, that such facility should not 
be discontinued or removed, or should be restored.’’. 
SEC. 103. AUTHORIZATION OF CIVIL ENFORCEMENT. 
Chapter 50 of title 18, United States Code, is amend-
ed by adding at the end the following new section: 
‘‘§ 1085. Civil remedies 
‘‘(a) JURISDICTION.—The district courts of the 
United States (in addition to any other remedies under 
current law) shall have original and exclusive jurisdiction 
to prevent and restrain violations of section 1084 by 
issuing appropriate orders in accordance with this section, 
regardless of whether a prosecution has been initiated 
under section 1084. 
‘‘(b) PROCEEDINGS.— 
‘‘(1) The United States may institute pro-
ceedings under this section— 
‘‘(A) to obtain injunctive or declarative re-
lief, including but not limited to a temporary 
restraining order and a preliminary injunction, 
against any person (other than a financial 
transaction provider) to prevent or restrain a 
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violation or a threatened violation of section 
1084; 
‘‘(B) in the case of an insured depository 
institution that is a financial transaction pro-
vider, to— 
‘‘(i) restrain an account maintained at 
such insured depository institution if such 
account is— 
‘‘(I) owned or controlled by a 
gambling business; and 
‘‘(II) includes proceeds of, or is 
used to facilitate a violation of, sec-
tion 1084; or 
‘‘(ii) seize funds in an account de-
scribed in subparagraph (i) if such funds— 
‘‘(I) are owned or controlled by a 
gambling business; and 
‘‘(II) constitute the proceeds of, 
were derived from, or facilitated, a 
violation of section 1084. 
‘‘(C) The limitation in subparagraph (A) 
shall not apply if the financial transaction pro-
vider is a gambling business within the meaning 
of section 1081(12), in which case such finan-
cial transaction provider shall be subject to the 
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enforcement provisions under subparagraph 
(A). 
‘‘(2) The attorney general (or other appropriate 
State official) of a State in which a communication 
in violation of section 1084 allegedly has been or will 
be initiated or received may institute proceedings 
under this section to obtain injunctive or declarative 
relief to prevent or restrain the violation or threat-
ened violation. Upon application of the attorney gen-
eral (or other appropriate State official) of an af-
fected State under this paragraph, the district court 
may enter a temporary restraining order, a prelimi-
nary injunction, an injunction, or declaratory relief 
against any person (other than a financial trans-
action provider) to prevent or restrain a violation or 
threatened violation of section 1084, in accordance 
with rule 65 of the Federal Rules of Civil Procedure. 
‘‘(3) Notwithstanding paragraphs (1) and (2), 
for a communication in violation of section 1084 
that allegedly has been or will be initiated or re-
ceived on Indian lands (as that term is defined in 
section 4 of the Indian Gaming Regulatory Act)— 
‘‘(A) the United States shall have the en-
forcement authority provided under paragraph 
(1); 
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‘‘(B) the enforcement authorities specified 
in an applicable Tribal-State compact nego-
tiated under section 11 of the Indian Gaming 
Regulatory Act (25 U.S.C. 2710) shall be car-
ried out in accordance with that compact; and 
‘‘(C) if there is no applicable Tribal-State 
compact, an appropriate tribal official may in-
stitute proceedings in the same manner as an 
attorney general of a State. 
No provision of this section shall be construed as al-
tering, superseding, or otherwise affecting the appli-
cation of the Indian Gaming Regulatory Act. 
‘‘(4) Notwithstanding paragraph (3), no relief 
shall be granted under this section against a finan-
cial transaction provider except as provided in para-
graph (1). 
‘‘(c) No damages, penalty, or forfeiture, civil or crimi-
nal, shall be found against any person or entity for any 
act done in compliance with any notice received from a 
law enforcement agency. 
‘‘(d) Relief granted under this section against an 
interactive computer service (as defined in section 230(f) 
of the Communications Act of 1934) shall— 
‘‘(1) be limited to the removal of, or disabling 
of access to, an online site violating section 1084, or 
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a hypertext link to an online site violating such sec-
tion, that resides on a computer server that such 
service controls or operates; except this limitation 
shall not apply if the service is violating section 
1084 or is in active concert with a person who is vio-
lating section 1084 and receives actual notice of the 
relief; 
‘‘(2) be available only after notice to the inter-
active computer service and an opportunity for the 
service to appear are provided; 
‘‘(3) not impose any obligation on an interactive 
computer service to monitor its service or to affirma-
tively seek facts indicating activity violating section 
1084; 
‘‘(4) specify the interactive computer service to 
which it applies; and 
‘‘(5) specifically identify the location of the on-
line site or hypertext link to be removed or access 
to which is to be disabled.’’. 
SEC. 104. AUTHORIZATION OF APPROPRIATIONS. 
In addition to any other sums authorized to be appro-
priated for this purpose, there are authorized to be appro-
priated to the Department of Justice for each of fiscal 
years 2007 through 2010 $10,000,000 for investigations 
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and prosecutions of violations of section 1084 of title 18, 
United States Code. 
SEC. 105. RULES OF CONSTRUCTION. 
(a) Nothing in this Act may be construed to prohibit 
any activity that is allowed under Public Law 95–515 as 
amended (15 U.S.C. 3001 et seq.). 
(b) Nothing in this Act may be construed to preempt 
State law prohibiting gambling. 
SEC. 106. SENSE OF CONGRESS. 
It is the sense of Congress that this Act does not 
change which activities related to horse racing may or may 
not be allowed under Federal law. Section 105 is intended 
to address concerns that this Act could have the effect 
of changing the existing relationship between the Inter-
state Horseracing Act (15 U.S.C. 3001 et seq.), and other 
Federal statutes that were in effect at the time of this 
Act’s consideration; this Act is not intended to change that 
relationship; and this Act is not intended to resolve any 
existing disagreements over how to interpret the relation-
ship between the Interstate Horseracing Act and other 
Federal statutes. 
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TITLE II—POLICIES AND PROCE-
DURES REQUIRED TO PRE-
VENT PAYMENTS FOR UNLAW-
FUL GAMBLING 
SEC. 201. POLICIES AND PROCEDURES REQUIRED TO PRE-
VENT PAYMENTS FOR UNLAWFUL GAMBLING. 
Chapter 53 of title 31, United States Code, is amend-
ed by adding at the end the following new subchapter: 
‘‘SUBCHAPTER IV—POLICIES AND PROCEDURES 
REQUIRED TO PREVENT PAYMENTS FOR 
UNLAWFUL GAMBLING 
‘‘§ 5361. Definitions 
‘‘For purposes of this subchapter, the following defi-
nitions shall apply: 
‘‘(1) CREDIT; CREDITOR; CREDIT
CARD; AND 
CARD ISSUER.—The terms ‘credit’, ‘creditor’, ‘credit 
card’, and ‘card issuer’ have the same meanings as 
in section 103 of the Truth in Lending Act. 
‘‘(2) DESIGNATED
PAYMENT
SYSTEM.—The 
term ‘designated payment system’ means any system 
utilized by a financial transaction provider that the 
Secretary and the Board of Governors of the Fed-
eral Reserve System, in consultation with the Attor-
ney General, jointly determine, by regulation or 
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order, could be utilized in connection with, or to fa-
cilitate, any restricted transaction. 
‘‘(3) ELECTRONIC FUND TRANSFER.—The term 
‘electronic fund transfer’— 
‘‘(A) has the same meaning as in section 
903 of the Electronic Fund Transfer Act, ex-
cept that such term includes transfers that 
would otherwise be excluded under section 
903(6)(E) of that Act; and 
‘‘(B) includes any fund transfer covered by 
Article 4A of the Uniform Commercial Code, as 
in effect in any State. 
‘‘(4) FINANCIAL INSTITUTION.—The term ‘fi-
nancial institution’ has the same meaning as in sec-
tion 903 of the Electronic Fund Transfer Act, ex-
cept 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. 
‘‘(5) 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-
ness, or international, national, regional, or local 
payment network utilized to effect a credit trans-
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action, electronic fund transfer, stored value product 
transaction, or money transmitting service, or a par-
ticipant in such network, or other participant in a 
designated payment system. 
‘‘(6) INSURED DEPOSITORY INSTITUTION.—The 
term ‘insured depository institution’— 
‘‘(A) has the same meaning as in section 
3 of the Federal Deposit Insurance Act; and 
‘‘(B) includes an insured credit union (as 
defined in section 101 of the Federal Credit 
Union Act). 
‘‘(7) MONEY
TRANSMITTING
BUSINESS
AND 
MONEY TRANSMITTING SERVICE.—The terms ‘money 
transmitting business’ and ‘money transmitting serv-
ice’ have the same meanings as in section 5330(d) 
(determined without regard to any regulations pre-
scribed by the Secretary thereunder). 
‘‘(8) RESTRICTED
TRANSACTION.—The term 
‘restricted transaction’ means any transaction or 
transmittal involving any credit, funds, instrument, 
or proceeds described in any paragraph of section 
5362 which the recipient is prohibited from accept-
ing under such section. 
‘‘(9) SECRETARY.—The term ‘Secretary’ means 
the Secretary of the Treasury. 
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