are defined in section 3701 of title 28) and 
that meets the following conditions: 
‘‘(I) All prizes and awards offered 
to winning participants are established 
and made known to the participants 
in advance of the game or contest and 
their value is not determined by the 
number of participants or the amount 
of any fees paid by those participants. 
‘‘(II) All winning outcomes reflect 
the relative knowledge and skill of the 
participants and are determined pre-
dominantly by accumulated statistical 
results of the performance of individ-
uals (athletes in the case of sports 
events) in multiple real-world sporting 
or other events. 
‘‘(III) No winning outcome is 
based— 
‘‘(aa) on the score, point- 
spread or any performance or per-
formances of any single real-world 
team or any combination of such 
teams; or 
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‘‘(bb) solely on any single 
performance of an individual ath-
lete in any single real-world 
sporting or other event. 
‘‘(7) The term ‘foreign jurisdiction’ means a ju-
risdiction of a foreign country or political subdivision 
thereof. 
‘‘(8) The term ‘gambling business’ means a busi-
ness of betting or wagering; 
‘‘(9) 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 in-
clude— 
‘‘(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 
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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. 
‘‘(10) The term ‘person’ includes a government 
(including any governmental entity (as defined in 
section 3701(2) of title 28)). 
‘‘(11) 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. 
‘‘(12) The terms ‘credit’, ‘creditor’, and ‘credit 
card’ have the meanings given such terms in section 
103 of the Truth in Lending Act. 
‘‘(13) 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. 
‘‘(14) The term ‘financial institution’ has the 
meaning given such term in section 903 of the Elec-
tronic Fund Transfer Act. 
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‘‘(15) The term ‘insured depository institu-
tion’— 
‘‘(A) has the same meaning as in section 
3(c) of the Federal Deposit Insurance Act; and 
‘‘(B) includes any insured credit union (as 
defined in section 101 of the Federal Credit 
Union Act). 
‘‘(16) 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. 
‘‘(17) The terms ‘own or control’ and to be 
‘owned or controlled’ have the same meanings as in 
section 2(a)(2) of the Bank Holding Company Act of 
1956. 
‘‘(18) The term ‘Secretary’ means the Secretary 
of the Treasury. 
‘‘(19) 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. 
Section 1084 of title 18, United States Code, is amend-
ed to read as follows: 
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‘‘§ 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) Except as otherwise provided in this section, who-
ever, being engaged in a gambling business, knowingly ac-
cepts, in connection with the transmission of a communica-
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tion 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 na-
tion 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— 
‘‘(1) credit, or the proceeds of credit, extended to 
or on behalf of another (including credit extended 
through the use of a credit card); 
‘‘(2) 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; 
‘‘(3) 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 
‘‘(4) 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. 
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‘‘(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 this section prohibits the use of a com-
munication facility for the transmission of bets or wagers 
or information assisting in the placing of bets or wagers, 
if— 
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‘‘(1) at the time the transmission occurs, the in-
dividual or entity placing the bets or wagers or infor-
mation assisting in the placing of bets or wagers, the 
gambling business, and any facility or support service 
processing those bets or wagers is physically located 
in the same State, and the State has a secure and ef-
fective customer verification and age verification sys-
tem to assure compliance with age and residence re-
quirements, and for class II or class III gaming 
under the Indian Gaming Regulatory Act, are phys-
ically located on Indian lands within that State; 
‘‘(2) the State or Tribe has explicitly authorized 
such bets and wagers; 
‘‘(3) the State has explicitly authorized and li-
censed the operation of the gambling business, any fa-
cility processing the bets and wagers, and the support 
service within its borders or the Tribe has explicitly 
authorized and licensed the operation of such gam-
bling business, any facility processing the bets and 
wagers, and the support service on Indian lands with-
in its jurisdiction; 
‘‘(4) with respect to class II or class III gaming, 
the game is permitted under and conducted in accord-
ance with the Indian Gaming Regulatory Act; 
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‘‘(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 facility or support service 
processing those bets or wagers are physically located; 
and 
‘‘(6) with respect to class III gaming under the 
Indian Gaming Regulatory Act, each such Tribal- 
State compact expressly provides that the game may 
be conducted using a communication facility to trans-
mit bets or wagers or information assisting in the 
placing of bets or wagers. 
‘‘(e) Nothing in this section creates immunity from 
criminal prosecution under any laws of any State or Tribe. 
‘‘(f) Nothing in this section authorizes activity that is 
prohibited under chapter 178 of title 28, United States 
Code. 
‘‘(g) When any common carrier, subject to the jurisdic-
tion of the Federal Communications Commission, is noti-
fied in writing by a Federal, State, tribal or local law en-
forcement agency, acting within its jurisdiction, that any 
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communication facility furnished by it is being used or will 
be used by its subscriber for the purpose of transmitting 
or receiving gambling information, in interstate or foreign 
commerce, within the special maritime and territorial ju-
risdiction of the United States, or to or from any place out-
side the jurisdiction of any nation with respect to any 
transmission to or from the United States in violation of 
Federal, State, tribal or local law, it shall discontinue or 
refuse, the leasing, furnishing, or maintaining of such facil-
ity, after reasonable notice to the subscriber, but no dam-
ages, penalty or forfeiture, civil or criminal, shall be found 
against any common carrier for any act done in compli-
ance with any notice received from a law enforcement agen-
cy. Nothing in this section shall be deemed to prejudice the 
right of any person affected thereby to secure an appro-
priate 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 re-
moved, or should be restored. 
‘‘(h)(1) A Federal, State, tribal, or local law enforce-
ment agency, acting within its jurisdiction may, in a civil 
action, obtain injunctive or declaratory relief to restrain 
or prevent any person from paying or assisting in the pay-
ment of bets or wagers, or communicating information as-
sisting in the placing of bets or wagers, in interstate or 
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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 violation 
of Federal, State, tribal, or local law. 
‘‘(2) 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. 
‘‘(3) Relief granted under paragraph (1) against an 
interactive computer service (as defined in section 230(f) 
of the Communications Act of 1934) shall— 
‘‘(A) be limited to the removal of, or disabling of 
access to, an online site violating this section, or a 
hypertext link to an online site violating this section, 
that resides on a computer server that such service 
controls or operates; except this limitation shall not 
apply if the service is violating this section or is in 
active concert with a person who is violating this sec-
tion and receives actual notice of the relief; 
‘‘(B) be available only after notice to the inter-
active computer service and an opportunity for the 
service to appear are provided; 
‘‘(C) not impose any obligation on an interactive 
computer service to monitor its service or to affirma-
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tively seek facts indicating activity violating this sec-
tion; 
‘‘(D) specify the interactive computer service to 
which it applies; and 
‘‘(E) specifically identify the location of the on-
line site or hypertext link to be removed or access to 
which is to be disabled.’’. 
SEC. 4. 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 and pros-
ecutions of violations of section 1084 of title 18, United 
States Code. 
SEC. 5. RULE OF CONSTRUCTION. 
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.). 
SEC. 6. 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 5 is intended to ad-
dress concerns that this Act could have the effect of changing 
the existing relationship between the Interstate Horseracing 
Act (15 U.S.C. 3001 et seq.), and other Federal statutes that 
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