‘‘(B) The financial statements of the appli-
cant. 
‘‘(C) Documentation showing the corporate 
structure of the applicant and all related busi-
nesses and affiliates. 
‘‘(D) Documentation containing detailed 
evidence of the applicant’s plan for complying 
with all applicable regulations should a license 
be issued, with particular emphasis on the ap-
plicant’s ability to— 
‘‘(i) protect underage and problem 
gamblers; 
‘‘(ii) ensure games are being operated 
fairly; and 
‘‘(iii) comply with and address the 
concerns of law enforcement. 
‘‘(E) Certification that the applicant 
agrees to submit to United States jurisdiction 
and all applicable United States laws relating to 
acceptance by the applicant of bets or wagers 
over the Internet from persons located in the 
United States and all associated activities. 
‘‘(F) Certification that the applicant has 
established a corporate entity or other separate 
business entity in the United States, a majority 
VerDate Mar 15 2010 
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of whose officers are United States persons 
and, if there is a board of directors, that the 
board is majority-controlled by directors who 
are United States persons. 
‘‘(d) STANDARDS
FOR LICENSE ISSUANCE; SUIT-
ABILITY
QUALIFICATIONS
AND
DISQUALIFICATION 
STANDARDS.— 
‘‘(1) SUITABILITY
FOR
LICENSING
STAND-
ARDS.— 
‘‘(A) IN GENERAL.—No person shall be eli-
gible to obtain a license unless the Secretary or 
an appropriate State officer or agency has de-
termined, upon completion of a background 
check and investigation, that the applicant, and 
any person deemed to be in control of the appli-
cant, is suitable for licensing. 
‘‘(B) ASSOCIATES OF APPLICANTS.—If the 
applicant is a corporation, partnership, or other 
business entity, a background check and inves-
tigation shall occur with respect to the presi-
dent or other chief executive of the corporation, 
partnership, or other business entity and other 
partners or senior executives and directors of 
the corporation, partnership, or entity, as deter-
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mined appropriate by the Secretary or any ap-
propriate State or tribal officer or agency. 
‘‘(C) BACKGROUND
CHECK
AND
INVES-
TIGATION.—The 
Secretary 
shall 
establish 
standards and procedures for conducting back-
ground checks and investigations for purposes 
of this subsection. 
‘‘(2) SUITABILITY FOR LICENSING STANDARDS 
DESCRIBED.—For purposes of this subchapter, an 
applicant and any other person associated with the 
applicant, as applicable, is suitable for licensing if 
the applicant demonstrates to the Secretary or ap-
propriate State or tribal officer or agency by clear 
and convincing evidence that the applicant (or indi-
vidual associated with the applicant, as applicable)— 
‘‘(A) is a person of good character, hon-
esty, and integrity; 
‘‘(B) is a person whose prior activities, 
reputation, habits, and associations do not— 
‘‘(i) pose a threat to the public inter-
est or to the effective regulation and con-
trol of the licensed activities; or 
‘‘(ii) create or enhance the dangers of 
unsuitable, unfair, or illegal practices, 
methods, and activities in the conduct of 
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the licensed activities or the carrying on of 
the business and financial arrangements 
incidental to such activities; 
‘‘(C) is capable of and likely to conduct the 
activities for which the applicant is licensed in 
accordance with the provisions of this sub-
chapter and any regulations prescribed under 
this subchapter; 
‘‘(D) has or guarantees acquisition of ade-
quate business competence and experience in 
the operation of Internet gambling facilities; 
and 
‘‘(E) has or will obtain sufficient financing 
for the nature of the proposed operation and 
from a suitable source. 
‘‘(3) UNSUITABLE FOR LICENSING.—An appli-
cant or any other person may not be determined to 
be suitable for licensing within the meaning of this 
subchapter if the applicant or such person— 
‘‘(A) has failed to provide information and 
documentation material to a determination of 
suitability for licensing under paragraph (1); 
‘‘(B) has supplied information which is un-
true or misleading as to a material fact per-
taining to any such determination; 
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‘‘(C) has been convicted of an offense pun-
ishable by imprisonment of more than 1 year; 
‘‘(D) is delinquent in filing any applicable 
Federal or State tax returns or in the payment 
of any taxes, penalties, additions to tax, or in-
terest owed to a State or the United States; 
‘‘(E) has, on or after the date of the enact-
ment of the Unlawful Internet Gambling En-
forcement Act of 2006— 
‘‘(i) knowingly participated in, or 
should have known they were participating 
in, any illegal Internet gambling activity, 
including the taking of an illegal Internet 
wager, the payment of winnings on an ille-
gal Internet wager, the promotion through 
advertising of any illegal Internet gambling 
Web site or service, or the collection of any 
payments to an entity operating an illegal 
Internet gambling Web site; or 
‘‘(ii) knowingly been owned, operated, 
managed, or employed by, or should have 
known they were owned, operated, man-
aged, or employed by, any person who was 
knowingly participating in, or should have 
known they were participating in, any ille-
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gal Internet gambling activity, including 
the taking of an illegal Internet wager, the 
payment of winnings on an illegal Internet 
wager, the promotion through advertising 
of any illegal Internet gambling Web site 
or service, or the collection of any pay-
ments to an entity operating an illegal 
Internet gambling Web site; 
‘‘(F) has— 
‘‘(i) received any assistance, financial 
or otherwise, from any person who has, be-
fore the date of the enactment of the 
Internet Gambling Regulation, Consumer 
Protection, and Enforcement Act, know-
ingly accepted bets or wagers from a per-
son located in the United States in viola-
tion of Federal or State law; or 
‘‘(ii) provided any assistance, financial 
or otherwise, to any person who has, before 
the date of the enactment of the Internet 
Gambling Regulation, Consumer Protec-
tion, and Enforcement Act, knowingly ac-
cepted bets or wagers from a person lo-
cated in the United States in violation of 
Federal or State law; 
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