‘‘(8) The term ‘information assisting in the plac-
ing of bets or wagers’ means information knowingly
transmitted by an individual in a gambling business
for use in placing, receiving, making, or otherwise en-
abling or facilitating 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 facili-
tating or enabling the placing or receipt of bets
or wagers in a jurisdiction where such betting 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; or
‘‘(C) information that is exchanged between
or among 1 or more pari-mutuel wagering facili-
ties licensed by the State or approved by the for-
eign jurisdiction in which the facility is located,
and any support services, wherever located, if the
information exchanged is used exclusively for the
pooling or processing of bets or wagers made by
or with the facility or facilities under each
State’s applicable law.
‘‘(9) The term ‘person’ includes a government
(including any governmental entity (as defined in
section 3701(2) of title 28)).
‘‘(10) 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.
‘‘(11) The terms ‘credit’, ‘creditor’, and ‘credit
card’ have the meanings given such terms in section
103 of the Truth in Lending Act.
‘‘(12) The term ‘electronic fund transfer’—
‘‘(A) has the meaning given such term in
section 903 of the Electronic Fund Transfer Act;
or
‘‘(B) any fund transfer covered by Article
4A of the Uniform Commercial Code, as in effect
in any State.
‘‘(13) The term ‘financial institution’ has the
meaning given such term in section 903 of the Elec-
tronic Fund Transfer Act.
‘‘(14) The terms ‘money transmitting business’
and ‘money transmitting service’ have the meanings
given such terms in section 5330(d) of title 31, United
States Code.
‘‘(15) The term ‘Tribe’ or ‘tribal’ means an In-
dian tribe, as defined under section 4(5) of the Indian
Gaming Regulatory Act of 1988).’’.
SEC. 3. MODIFICATION OF EXISTING PROHIBITION.
(a) IN GENERAL.—Section 1084 of title 18, United
States Code, is amended to read as follows:
‘‘§ 1084. Use of a communication facility to transmit
bets or wagers; Penalties
‘‘(a) Except as otherwise provided in this section, who-
ever, being engaged in a gambling business, knowingly uses
a communication facility—
‘‘(1) for the transmission in interstate or foreign
commerce, within the special maritime and territorial
jurisdiction of the United States, or to or from any
place outside the jurisdiction of any nation with re-
spect to any transmission to or from the United
States, of bets or wagers, or information assisting in
the placing of bets or wagers; or
‘‘(2) for the transmission of a communication in
interstate or foreign commerce, within the special
maritime and territorial jurisdiction of the United
States, or to or from any place outside the jurisdic-
tion of any nation with respect to any transmission
to or from the United States, which entitles the recipi-
ent to receive money or credit as a result of bets or
wagers, or for information assisting in the placing of
bets or wagers;
shall be fined under this title or imprisoned not more than
five years, or both.
‘‘(b)(1) Except as provided in paragraph (2), whoever,
being engaged in a gambling business, knowingly accepts,
in connection with the transmission of a communication
in interstate or foreign commerce, within the special mari-
time and territorial 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—
‘‘(A) credit, or the proceeds of credit, extended to
or on behalf of another (including credit extended
through the use of a credit card);
‘‘(B) an electronic fund transfer or funds trans-
mitted by or through a money transmitting 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 instrument
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 financial
transaction as the Secretary of the Treasury may pre-
scribe by regulation which involves a financial insti-
tution 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.
‘‘(2) Paragraph (b)(1) does not apply if 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 is permitted under subsections (c) or (d).
‘‘(c) Nothing in this section prohibits—
‘‘(1) the transmission of information assisting in
the placing of bets or wagers for use in news reporting
if such transmission does not solicit or provide infor-
mation 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 foreign
country where such betting or wagering is permitted
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 as-
sisting in the operation of such State-specific lottery.
‘‘(d) Nothing in subsection (c) or (d) shall allow the
use of a communication facility for the transmission of bets
or wagers involving the purchase of a chance or opportunity
to win a lottery, or the use of a communication facility
for the transmission of information assisting in the placing
of bets or wagers involving the purchase of a chance or op-
portunity to win a lottery, except that communication fa-
cilities may be used for the transmission of such bets or
wagers and the transmission of information assisting such
bets or wagers as long as such bets or wagers are placed
on the premises of a retail outlet that is open to the public
and licensed by the State in which it is located to sell
chances or opportunities to win a lottery.
‘‘(e) Nothing in this section prohibits the use of a com-
munication facility for the transmission of bets or wagers