SEC. 2. CONGRESSIONAL FINDINGS AND PURPOSE. 
(a) FINDINGS.—Congress finds the following: 
(1) Prior to the passage of the Unlawful Inter-
net Gambling Enforcement Act of 2006 (hereafter in 
this section referred to as the ‘‘UIGEA’’), Public 
Law 109–347, on October 13, 2006, Federal law 
was both vague and outdated regarding Internet 
gambling activities, as Federal criminal gambling 
statutes were passed decades before the commercial 
use of the Internet. 
(2) To date, all Federal Internet gambling pros-
ecutions have involved sports betting, creating a lack 
of authoritative court decisions on the applicability 
of other federal criminal statutes to Internet poker 
and casino-style gambling. 
(3) Sports betting, which is illegal in 49 of the 
50 States, is viewed as particularly harmful because 
its potential adverse impact on the integrity of pro-
fessional and amateur sports, and is the one form of 
gambling where there is settled Federal case law 
clarifying it as illegal on the Internet. 
(4) Many European Internet gambling compa-
nies offering services not including sports betting to 
persons in the United States were fully listed on the 
London Stock Exchange, and thereby subject to high 
standards of transparency and scrutiny, but upon 
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receiving clarification of United States law regarding 
Internet gaming through the enactment of the 
UIGEA, these companies closed their sites to per-
sons in the United States. 
(5) Continued legal jeopardy for companies that 
made a good faith effort to comply voluntarily with 
clarified United States law following the passage of 
the UIGEA punishes behavior that the law intended 
to foster and inadvertently rewards continued non-
compliance by other foreign entities. 
(6) In light of the foregoing and in deference to 
long-standing constitutional requirements of fair no-
tice and transparency in the criminal law, the Con-
gress finds it necessary to clarify that criminal stat-
utes applicable to gambling do not apply to any per-
son who offered Internet gambling services that did 
not include sports betting prior to October 13, 2006, 
and who ceased offering Internet gambling services 
to persons in the United States upon passage of the 
UIGEA. 
(7) To effect the purposes and intent of the 
UIGEA, it is the sense of the Congress that the At-
torney General should focus any prosecutorial efforts 
on those persons who— 
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(A) offer Internet sports betting in the 
United States; or 
(B) process payments for illegal Internet 
sports betting in the United States. 
SEC. 3. UIGEA CLARIFICATION AND IMPLEMENTATION. 
(a) IN GENERAL.—Subchapter IV of chapter 53 of 
title 31, United States Code, is amended by adding at the 
end the following new section: 
‘‘§ 5368. Voluntary compliance 
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of law— 
‘‘(1) except as provided in paragraphs (2) and 
(3), no person shall be subject to criminal liability 
arising out of— 
‘‘(A) the offering, receipt or facilitation of 
bets or wagers by means of the Internet; 
‘‘(B) financial transactions in connection 
with or involving the consideration for, or pro-
ceeds of, bets or wagers by means of the Inter-
net; 
‘‘(C) the administration, advising, audit, 
direction, operation, lending, management, mar-
keting or supplying of a business or services in-
volving activities or transactions referred to in 
subparagraph (A) or (B); or 
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‘‘(D) the banking, brokerage, custody, 
issuance, placement, promotion, sale or transfer 
of shares or proceeds from a business involving 
activities or transactions referred to in subpara-
graph (A), (B), or (C); 
‘‘(2) paragraph (1) shall not apply to any per-
son who knowingly— 
‘‘(A) offered illegal bets or wagers to, or 
received bets or wagers from, any person within 
the United States by means of the Internet 
after October 13, 2006; 
‘‘(B) in violation of section 1084 of title 
18, United States Code, used the Internet for 
the transmission in interstate or foreign com-
merce of bets or wagers on any sporting event 
or sporting contest, or information assisting in 
the placing of bets or wagers on any sporting 
event or contest, by any person within the 
United States; or 
‘‘(C) processed or facilitated financial 
transactions in connection with or involving the 
consideration for, or proceeds of, involving ac-
tivities or transactions referred to in subpara-
graph (A) or (B); and 
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‘‘(3) paragraph (1) shall not apply to conduct 
that violated sections 1956 or 1957 of title 18, 
United States Code, by a financial or monetary 
transaction, or the transfer or transportation of 
funds, with the intent to promote unlawful activity 
other than the offering, receipt, or facilitation of 
bets or wagers by means of the Internet, or to con-
ceal or disguise the nature, location, source, owner-
ship, or control of the proceeds of unlawful activity 
other than the offering, receipt, or facilitation of 
bets or wagers by means of the Internet. 
‘‘(b) CRIMINAL LIABILITY DEFINED.—For purposes 
of subsection (a), the term ‘criminal liability’ includes ac-
tions against real or personal property that arise from or 
depend upon the allegedly criminal nature of the bet or 
wager or of the transmission or receipt of funds in connec-
tion with that bet or wager.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subchapter IV of chapter 53 of title 31, United States 
Code, is amended by inserting after the item relating to 
section 5367 the following new item: 
‘‘5368. Voluntary compliance.’’. 
SEC. 4. RULE OF CONSTRUCTION. 
No provision of this Act, or any amendment made 
by this Act, shall be construed as clarifying or implying 
that Internet bets or wagers, other than sports bets or 
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wagers, which were accepted subsequent to October 13, 
2006, are in violation of Federal law. 
Æ 
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