injunction enjoining such person from placing, receiving, 
or otherwise making bets or wagers or sending, receiving, 
or inviting information assisting in the placing of bets or 
wagers. 
‘‘§ 5367. Circumventions prohibited 
‘‘Notwithstanding section 5362(2), a financial trans-
action provider, or any interactive computer service or tele-
communications service, may be liable under this sub-
chapter if such person has actual knowledge and control of 
bets and wagers, and— 
‘‘(1) operates, manages, supervises, or directs an 
Internet website at which unlawful bets or wagers 
may be placed, received, or otherwise made, or at 
which unlawful bets or wagers are offered to be 
placed, received, or otherwise made; or 
‘‘(2) owns or controls, or is owned or controlled 
by, any person who operates, manages, supervises, or 
directs an Internet website at which unlawful bets or 
wagers may be placed, received, or otherwise made, or 
at which unlawful bets or wagers are offered to be 
placed, received, or otherwise made.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.—The 
table of sections for chapter 53 of title 31, United States 
Code, is amended by adding at the end the following: 
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‘‘SUBCHAPTER IV—PROHIBITION ON FUNDING OF UNLAWFUL INTERNET 
GAMBLING 
‘‘5361. Congressional findings and purpose. 
‘‘5362. Definitions. 
‘‘5363. Prohibition on acceptance of any financial instrument for unlawful Inter-
net gambling. 
‘‘5364. Policies and procedures to identify and prevent restricted transactions. 
‘‘5365. Civil remedies. 
‘‘5366. Criminal penalties. 
‘‘5367. Circumventions prohibited.’’. 
SEC. 4. INTERNET GAMBLING IN OR THROUGH FOREIGN JU-
RISDICTIONS. 
(a) IN GENERAL.—In deliberations between the United 
States Government and any other country on money laun-
dering, corruption, and crime issues, the United States Gov-
ernment should— 
(1) encourage cooperation by foreign govern-
ments and relevant international fora in identifying 
whether Internet gambling operations are being used 
for money laundering, corruption, or other crimes; 
(2) advance policies that promote the cooperation 
of foreign governments, through information sharing 
or other measures, in the enforcement of this Act; and 
(3) encourage the Financial Action Task Force 
on Money Laundering, in its annual report on money 
laundering typologies, to study the extent to which 
Internet gambling operations are being used for 
money laundering purposes. 
(b) REPORT REQUIRED.—The Secretary of the Treas-
ury shall submit an annual report to the Congress on any 
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deliberations between the United States and other countries 
on issues relating to Internet gambling. 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Unlawful 
Internet Gambling Enforcement Act of 2006’’. 
SEC. 2. PROHIBITION ON ACCEPTANCE OF ANY PAYMENT 
INSTRUMENT 
FOR 
UNLAWFUL 
INTERNET 
GAMBLING. 
(a) IN GENERAL.—Chapter 53 of title 31, 
United States Code, is amended by adding at 
the end the following new subchapter: 
‘‘SUBCHAPTER 
IV—PROHIBITION 
ON 
FUNDING OF UNLAWFUL INTERNET 
GAMBLING 
‘‘§ 5361. Congressional findings and purpose 
‘‘(a) FINDINGS.—The Congress finds the fol-
lowing: 
‘‘(1) Internet gambling is primarily 
funded through personal use of payment 
system instruments, credit cards, and 
wire transfers. 
‘‘(2) The National Gambling Impact 
Study Commission in 1999 recommended 
the passage of legislation to prohibit wire 
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transfers to Internet gambling sites or 
the banks which represent such sites. 
‘‘(3) Internet gambling is a growing 
cause of debt collection problems for in-
sured depository institutions and the 
consumer credit industry. 
‘‘(4) New mechanisms for enforcing 
gambling laws on the Internet are nec-
essary because traditional law enforce-
ment mechanisms are often inadequate 
for enforcing gambling prohibitions or 
regulations on the Internet, especially 
where such gambling crosses State or na-
tional borders. 
‘‘(b) RULE
OF CONSTRUCTION.—No provi-
sion of this subchapter shall be construed as 
altering, limiting, or extending any Federal or 
State law or Tribal-State compact prohibiting, 
permitting, or regulating gambling within the 
United States. 
‘‘§ 5362. Definitions 
‘‘For purposes of this subchapter, the fol-
lowing definitions shall apply: 
‘‘(1) BET OR WAGER.—The term ‘bet or 
wager’— 
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‘‘(A) means the staking or risking 
by any person of something of value 
upon the outcome of a contest of oth-
ers, a sporting event, or a game sub-
ject to chance, upon an agreement or 
understanding that the person or an-
other person will receive something 
of value in the event of a certain out-
come; 
‘‘(B) includes the purchase of a 
chance or opportunity to win a lot-
tery or other prize (which oppor-
tunity to win is predominantly sub-
ject to chance); 
‘‘(C) includes any scheme of a 
type described in section 3702 of title 
28; 
‘‘(D) includes any instructions or 
information pertaining to the estab-
lishment or movement of funds by the 
bettor or customer in, to, or from an 
account with the business of betting 
or wagering; and 
‘‘(E) does not include— 
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‘‘(i) any activity governed by 
the securities laws (as that term 
is defined in section 3(a)(47) of 
the Securities Exchange Act of 
1934 for the purchase or sale of 
securities (as that term is defined 
in section 3(a)(10) of that Act); 
‘‘(ii) 
any 
transaction 
con-
ducted on or subject to the rules 
of a registered entity or exempt 
board of trade under the Com-
modity Exchange Act; 
‘‘(iii) any over-the-counter de-
rivative instrument; 
‘‘(iv) any other transaction 
that— 
‘‘(I) is excluded or exempt 
from 
regulation 
under 
the 
Commodity Exchange Act; or 
‘‘(II) is exempt from State 
gaming or bucket shop laws 
under section 12(e) of the 
Commodity Exchange Act or 
section 28(a) of the Securities 
Exchange Act of 1934; 
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