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‘‘(10) UNLAWFUL GAMBLING.— 
‘‘(A) IN
GENERAL.—The term ‘unlawful 
gambling’ means to place, receive, or otherwise 
knowingly transmit a bet or wager by any 
means which involves the use of a communica-
tion facility where such bet or wager is unlawful 
under any applicable Federal or State law in 
the State or tribal lands in which the bet or 
wager is initiated, received, or otherwise made. 
‘‘(B) EXCLUSION
OF
CERTAIN
AUTHOR-
IZED
TRANSACTIONS.—The 
term 
‘unlawful 
gambling’ does not include any intrastate or 
intratribal transactions authorized under sec-
tion 1084(c) of title 18, United States Code. 
‘‘(C) INTERMEDIATE ROUTING.—With re-
spect to section 5362, the intermediate routing 
of electronic data shall not determine the loca-
tion or locations in which a bet or wager is ini-
tiated, received, or otherwise made. 
‘‘(11) OTHER
TERMS.—The terms ‘bet or 
wager’, ‘communication facility’, ‘gambling business’, 
‘own and control’, ‘person’, ‘State’, and ‘tribal’ have 
the same meanings as in section 1081 of title 18. 
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‘‘§ 5362. Prohibition on acceptance of any financial 
instrument for unlawful gambling 
‘‘No person engaged in a gambling business may 
knowingly accept, in connection with the participation of 
another person in unlawful gambling— 
‘‘(1) credit, or the proceeds of credit, extended 
to or on behalf of such other person (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 
such other person; 
‘‘(3) any check, draft, or similar instrument 
which is drawn by or on behalf of such other person 
and is drawn on or payable at or through any finan-
cial institution; or 
‘‘(4) the proceeds of any other form of financial 
transaction, as the Secretary and the Board of Gov-
ernors of the Federal Reserve System may jointly 
prescribe by regulation, which involves a financial in-
stitution as a payor or financial intermediary on be-
half of or for the benefit of such other person. 
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‘‘§ 5363. Policies and procedures to identify and pre-
vent restricted transactions 
‘‘(a) REGULATIONS.—Before the end of the 270-day 
period beginning on the date of the enactment of this sub-
chapter, the Secretary and the Board of Governors of the 
Federal Reserve System, in consultation with the Attorney 
General, shall prescribe regulations (which the Secretary 
and the Board jointly determine to be appropriate) requir-
ing each designated payment system, and all participants 
therein, to identify and block or otherwise prevent or pro-
hibit restricted transactions through the establishment of 
policies and procedures reasonably designed to identify 
and block or otherwise prevent or prohibit the acceptance 
of restricted transactions in any of the following ways: 
‘‘(1) The establishment of policies and proce-
dures that— 
‘‘(A) allow the payment system and any 
person involved in the payment system to iden-
tify restricted transactions by means of codes in 
authorization messages or by other means; and 
‘‘(B) block restricted transactions identi-
fied as a result of the policies and procedures 
developed pursuant to subparagraph (A). 
‘‘(2) The establishment of policies and proce-
dures that prevent or prohibit the acceptance of the 
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products or services of the payment system in con-
nection with a restricted transaction. 
‘‘(b) REQUIREMENTS
FOR POLICIES
AND PROCE-
DURES.—In prescribing regulations under subsection (a), 
the Secretary and the Board of Governors of the Federal 
Reserve System shall— 
‘‘(1) identify types of policies and procedures, 
including nonexclusive examples, which would be 
deemed, as applicable, to be reasonably designed to 
identify and block or otherwise prevent or prohibit 
the acceptance of the products or services with re-
spect to each type of restricted transaction; 
‘‘(2) to the extent practical, permit any partici-
pant in a payment system to choose among alter-
native means of identifying and blocking, or other-
wise preventing or prohibiting the acceptance of the 
products or services of the payment system or par-
ticipant in connection with, restricted transactions; 
and 
‘‘(3) consider exempting certain restricted 
transactions or designated payment systems from 
any requirement imposed under such regulations, if 
the Secretary and the Board jointly find that it is 
not reasonably practical to identify and block, or 
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otherwise prevent or prohibit the acceptance of, such 
transactions. 
‘‘(c) COMPLIANCE WITH PAYMENT SYSTEM POLI-
CIES AND PROCEDURES.—A financial transaction provider 
shall be considered to be in compliance with the regula-
tions prescribed under subsection (a), if— 
‘‘(1) such person relies on and complies with 
the policies and procedures of a designated payment 
system of which it is a member or participant to— 
‘‘(A) identify and block restricted trans-
actions; or 
‘‘(B) otherwise prevent or prohibit the ac-
ceptance of the products or services of the pay-
ment system, member, or participant in connec-
tion with restricted transactions; and 
‘‘(2) such policies and procedures of the des-
ignated payment system comply with the require-
ments of regulations prescribed under subsection 
(a). 
‘‘(d) NO LIABILITY FOR BLOCKING OR REFUSING TO 
HONOR RESTRICTED TRANSACTIONS.—A person that 
identifies and blocks a transaction, prevents or prohibits 
the acceptance of its products or services in connection 
with a transaction, or otherwise refuses to honor a trans-
action— 
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‘‘(1) that is a restricted transaction; 
‘‘(2) that such person reasonably believes to be 
a restricted transaction; or 
‘‘(3) as a designated payment system or a mem-
ber of a designated payment system in reliance on 
the policies and procedures of the payment system, 
in an effort to comply with regulations prescribed 
under subsection (a), 
shall not be liable to any party for such action. 
‘‘(e) REGULATORY ENFORCEMENT.—The require-
ments of this subchapter shall be enforced exclusively by— 
‘‘(1) the Federal functional regulators, with re-
spect to the designated payment systems and finan-
cial transaction providers subject to the respective 
jurisdiction of such regulators under section 505(a) 
of the Gramm-Leach-Bliley Act and section 5g of 
the Commodities Exchange Act; and 
‘‘(2) the Federal Trade Commission, with re-
spect to designated payment systems and financial 
transaction providers not otherwise subject to the ju-
risdiction of any Federal functional regulators (in-
cluding the Commission) as described in paragraph 
(1).’’. 
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