such manner as the qualified State agency considers 
appropriate, including at a minimum the following: 
(A) Complete financial information about 
the applicant. 
(B) Documentation showing the organiza-
tion of the applicant and all related businesses 
and affiliates. 
(C) The criminal and financial history of— 
(i) the applicant; 
(ii) each of the senior executives and 
directors of the applicant; 
(iii) any other person who is in control 
of the applicant; and 
(iv) such other persons as the quali-
fied State agency considers appropriate. 
(D) Such other information as may be nec-
essary for the suitability analysis required 
under subsection (c). 
(E) Disclosure of all other applications for 
licenses previously or simultaneously submitted 
under this paragraph to other qualified State 
agencies and whether those applications are 
pending, were granted, or were denied. 
(F) A detailed description of the appli-
cant’s plan for complying with all applicable re-
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quirements and regulations prescribed pursuant 
to this title. 
(G) A certification by the applicant that 
the applicant agrees to be subject to— 
(i) jurisdiction in United States Fed-
eral courts and in the courts of the State 
or Indian tribe of the qualified State agen-
cy to which the applicant has applied; and 
(ii) all applicable provisions of United 
States law. 
(2) NOTICE TO THE SECRETARY.—Each quali-
fied State agency shall report all applicants for li-
censure and the dispositions of their applications to 
the Secretary promptly upon disposition of each ap-
plication or in such intervals as the Secretary may 
prescribe. Such report shall include such information 
or documentation as the Secretary may require. 
(c) STANDARDS
FOR LICENSE ISSUANCE; SUIT-
ABILITY
QUALIFICATIONS
AND
DISQUALIFICATION 
STANDARDS.— 
(1) SUITABILITY
FOR
LICENSING.—No appli-
cant shall be eligible to obtain a license under this 
title unless a qualified State agency, with whom the 
applicant has filed an application for a license, has 
determined, upon completion of a background check 
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and investigation, that the applicant, any person 
deemed to be in control of the applicant, all signifi-
cant vendors of the applicant, and any other person 
determined by the qualified State agency as having 
significant influence on the applicant are suitable for 
licensing or for receiving a certificate of suitability 
as applicable. 
(2) INVESTIGATION.— 
(A) DETERMINATION
OF
SUITABILITY.— 
Prior to issuing a license under this section, a 
qualified State agency shall conduct the inves-
tigation and analysis described in paragraph (1) 
to determine whether the applicant or person— 
(i) is a person of good character, hon-
esty, and integrity; 
(ii) is a person whose prior activities, 
criminal record, if any, reputation, habits, 
and associations do not— 
(I) pose a threat to the public in-
terest or to the effective regulation 
and control of Internet poker facili-
ties; or 
(II) create or enhance the dan-
gers of unsuitable, unfair, or illegal 
practices, methods, and activities in 
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the conduct of Internet poker facilities 
or the carrying on of the business and 
financial arrangements incidental to 
such facilities; 
(iii) is capable of and likely to conduct 
the activities for which the applicant is li-
censed or receives a certificate of suit-
ability in accordance with the provisions of 
this title, any regulations prescribed under 
this title, and all other applicable laws; 
(iv) with respect to applicants, has or 
guarantees acquisition of adequate busi-
ness competence and experience in the op-
eration of casino gaming facilities, Internet 
poker facilities, or Internet gambling facili-
ties; 
(v) with respect to applicants, has or 
will obtain sufficient financing for the na-
ture of the proposed operation and from a 
suitable source; and 
(vi) has disclosed to the qualified 
State agency all known affiliations or rela-
tionships, whether direct or indirect. 
(B) UNSUITABLE.—An applicant or any 
other person may not be determined to be suit-
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able under this subsection if the applicant or 
such person— 
(i) has failed to provide information 
and documentation material to a deter-
mination of suitability for licensing under 
paragraph (1); 
(ii) has supplied information which is 
untrue or misleading as to a material fact 
pertaining to any such determination; 
(iii) has been convicted of an offense 
that is punishable by imprisonment of 
more than 1 year; 
(iv) is delinquent in the payment of 
any applicable Federal or State tax, tax 
penalty, addition to tax, or interest owed 
to a jurisdiction in which the applicant or 
person operates or does business, unless 
such payment has been extended or is the 
subject of a pending judicial or administra-
tive dispute; 
(v) has not certified in writing that 
the person submits to personal jurisdiction 
in the United States; or 
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(vi) fails to comply with such other 
standard as the applicable qualified State 
agency considers appropriate. 
(C) CONSIDERATION OF PREVIOUS OPER-
ATION OF INTERNET GAMBLING FACILITY.—In 
carrying out a suitability analysis of a person 
under this subsection, a qualified State agency 
shall consider whether such person operated an 
Internet gambling facility before the date of the 
enactment of this Act and the scope of such 
person’s activities with respect to such oper-
ation. 
(3) ONGOING REQUIREMENT.—A licensee (and 
any other person who is required to be determined 
to be suitable for licensing in connection with such 
licensee) shall meet the standards necessary to be 
suitable for licensing or to receive a certificate of 
suitability, as the case may be, throughout the term 
of the license. 
(4) CERTIFICATE OF SUITABILITY FOR SIGNIFI-
CANT VENDORS.— 
(A) IN GENERAL.—If a qualifying body de-
termines under paragraph (1) that a significant 
vendor of an applicant is suitable under such 
paragraph, the qualifying body shall issue a cer-
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tificate to such vendor that certifies the suit-
ability of such vendor. 
(B) REVOCATION
OF
CERTIFICATE.—A 
qualified State agency that issues a certificate 
to a significant vendor under subparagraph (A) 
shall revoke the certificate if at any time the 
significant vendor no longer meets the stand-
ards necessary for a determination of suit-
ability. 
(D) CERTIFICATES
ISSUED
BY
OTHER 
QUALIFIED STATE AGENCY.—A qualified State 
agency may, but need not, accept a certificate 
issued to a significant vendor by another quali-
fied State agency as evidence of the suitability 
of the significant vendor. 
(5) OTHER VENDORS.— 
(A) NOTICE.—A licensee shall promptly 
notify the qualified State agency that issued the 
license to the licensee of all persons that are 
not significant vendors that— 
(i) direct, provide, or solicit customers 
to or for the licensee’s Internet poker facil-
ity, or materially assist in any of those 
tasks, in return for a commission or other 
fee; 
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(ii) hold themselves out to the public 
as offering bets or wagers on licensee’s be-
half; 
(iii) offer bets or wagers under their 
own names or brands but using and rely-
ing on licensee’s Internet poker facilities; 
(iv) license trademarks, trade names, 
service marks, or other similar intellectual 
property to the licensee; or 
(v) own a substantial interest in or 
control a person described in clause (i), 
(ii), (iii), or (iv). 
(B) SUITABILITY OF OTHER VENDORS AND 
PERSONS.—A qualified State agency that re-
views an application of an applicant for a li-
cense or issues a license to a licensee may, at 
the sole discretion of the qualified State agency 
and on a case-by-case basis, require as a condi-
tion of such license that a person meet suit-
ability requirements under paragraph (1) if the 
person— 
(i) is described in subparagraph (A) 
with respect to the applicant or licensee; 
(ii) provides services to an applicant 
or licensee and the qualified State agency 
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determines that with respect to such serv-
ices, there is a substantial risk of cir-
cumvention of the suitability requirements 
applicable to significant vendors; or 
(iii) is associated with the applicant or 
licensee or one of the significant vendors of 
the applicant or licensee and the qualified 
State agency determines such person may 
pose a threat to the integrity of Internet 
poker facilities operated by the applicant 
or licensee. 
(C) 
INFORMATION.—A 
qualified 
State 
agency may require such information from an 
applicant, licensee, significant vendor or other 
person identified in this paragraph as the quali-
fied State agency considers necessary to carry 
out this paragraph. 
(6) ENFORCEMENT ACTIONS.— 
(A) IN GENERAL.—If the Secretary or the 
qualified State agency that issued a license to 
a licensee finds that the licensee, or any other 
person that is subject to a required determina-
tion of suitability in connection with such li-
censee, fails to meet the suitability require-
ments of this subsection at any time during the 
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tenure of the license, the Secretary or the quali-
fied State agency may take action to protect the 
public interest, including, if the Secretary or 
qualified State agency considers necessary, the 
suspension or termination of the license. 
(B) IMPOSITION OF CONDITIONS INCLUD-
ING REMOVAL OF PARTIES.—Notwithstanding a 
determination under subparagraph (A), the 
Secretary or the qualified State agency that 
issued a license to a licensee may allow the li-
censee to continue engaging in licensed activi-
ties by imposing conditions on the person to 
which subparagraph (A) is applicable under 
penalty of revocation or suspension of a license 
or certificate of suitability, including— 
(i) the identification of any person de-
termined to be unsuitable; and 
(ii) the establishment of appropriate 
safeguards to ensure such person is ex-
cluded from any management or involve-
ment in operation of the licensed activities. 
(7) ADMINISTRATIVE PROVISIONS.— 
(A) BACKGROUND CHECK AND INVESTIGA-
TION.—Each qualified State agency shall estab-
lish standards and procedures for conducting 
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background checks and investigations for pur-
poses of this subsection. 
(B) PRIVILEGE.—Any written or oral 
statement made in the course of an official pro-
ceeding of the Secretary or a qualified State 
agency, by any member thereof, or any witness 
testifying under oath which is relevant to the 
purpose of the proceeding and relates to the re-
view of an application for a license under this 
title, is privileged and shall not give rise to li-
ability for defamation or relief in any civil ac-
tion. 
(C) 
ADDITIONAL
PRIVILEGE.—Notwith-
standing section 552 of title 5, United States 
Code, or any other Federal, State, or tribal law 
to the contrary, any communication or docu-
ment of an applicant, licensee, significant ven-
dor, or affiliate thereof, which is made or trans-
mitted pursuant to this title to the Secretary or 
a qualified State agency or any of their agents 
or employees, except information that is already 
public, shall be privileged and shall not be dis-
closed by the Secretary or the qualified State 
agency without the prior written consent of the 
applicant, licensee, significant vendor, or affil-
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iate thereof (as applicable), or pursuant to a 
lawful court order, grand jury subpoena, or 
similar procedure. To the extent practicable, the 
Secretary or qualified State agency shall pro-
vide timely notice of the proceedings to the ap-
plicant, licensee, significant vendor, or affiliate 
thereof (as applicable). 
(D) PRESERVATION OF PRIVILEGE RECOG-
NIZED UNDER OTHER PROVISIONS OF LAW.— 
Any privilege recognized under any other appli-
cable provision of Federal, State, or tribal law, 
including attorney-client, physician-patient, and 
accountant-client privileges, shall not be waived 
or lost because a document or communication 
otherwise protected by the privilege is disclosed 
to the Secretary or a qualified State agency. 
(E) CONFIDENTIALITY.—Any communica-
tion or document, except information that is al-
ready public, shall be treated as confidential 
and may not be disclosed, in whole or part, by 
the Secretary or a qualified State agency with-
out a lawful court order or as otherwise ex-
pressly required by law, if the communication 
or document is— 
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(i) required by the Secretary or quali-
fied State agency to be disclosed by the ap-
plicant, licensee, or significant vendor, in-
cluding applications, financial or earnings 
information, and criminal records, whether 
of the applicant or licensee or of any affil-
iate, employee, officer, director or signifi-
cant vendor thereof, or of any other third 
party; or 
(ii) prepared or obtained by an agent 
or employee of the Secretary or qualified 
State agency that contains information de-
scribed in clause (i). 
(d) ADDITIONAL REQUIREMENTS FOR A LICENSE.— 
In order to obtain a license under this section, an Internet 
poker facility shall demonstrate to the qualified State 
agency that such facility maintains appropriate safeguards 
and mechanisms, in accordance with standards established 
by the qualified State agency, including appropriate safe-
guards and mechanism to— 
(1) ensure, to a reasonable degree of certainty, 
that the individual placing a bet or wager is not less 
than 21 years of age; 
(2) ensure, to a reasonable degree of certainty, 
that the individual placing a bet or wager is phys-
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ically located in a jurisdiction that has not prohib-
ited such bets or wagers at the time the bet or 
wager is placed; 
(3) ensure, to a reasonable degree of certainty, 
that all taxes relating to Internet poker from per-
sons engaged in bets or wagers relating to such 
Internet poker are collected or reported, as required 
by law, at the time of any payment of proceeds of 
such bets or wagers; 
(4) ensure that all taxes relating to the oper-
ation of an Internet poker facility from any licensee 
are collected and disbursed as required by law and 
that adequate records to enable later audit or 
verification are maintained; 
(5) prevent, to a reasonable degree of certainty, 
fraud, money laundering, and terrorist financing; 
(6) ensure, to a reasonable degree of certainty, 
compliance with the requirements of section 106; 
(7) protect, to a reasonable degree of certainty, 
the privacy and online security of any person en-
gaged in bets or wagers with the licensee’s Internet 
poker facility; 
(8) ensure that any user fee required under 
subsection (e) is paid to the qualified State agency; 
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(9) ensure, to a reasonable degree of certainty, 
that Internet poker games are fair and honest, and 
to prevent, to a reasonable degree of certainty, 
cheating, including collusion, and use of cheating de-
vices, including use of software programs (sometimes 
referred to as ‘‘bots’’) that make bets or wagers ac-
cording to algorithms; and 
(10) such other mechanisms and safeguards as 
the qualified State agency may establish. 
(e) FEES FOR ADMINISTRATIVE EXPENSES.— 
(1) USER FEES.— 
(A) IN
GENERAL.—The cost of admin-
istering this title with respect to each applicant, 
licensee, and significant vendor, including the 
cost of any review or examination of a licensee 
or its significant vendors to ensure compliance 
with the terms of the license and this title, shall 
be assessed by the qualified State agency receiv-
ing an application or issuing a license against 
the applicant, licensee, or significant vendor, as 
the case may be, by written notice in an 
amount that the qualified State agency deter-
mines is necessary to— 
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(i) meet the qualified State agency’s 
expenses in carrying out such administra-
tion, review, or examination; and 
(ii) to cover the qualified State agen-
cy’s share of the amount determined by the 
Secretary under paragraph (3) to cover the 
expenses incurred by the Secretary in car-
rying out the provisions of this title. 
(B) EXPENSES FOR REVIEW OR EXAMINA-
TION.—Expenses that are attributable to review 
or examination of a particular applicant, li-
censee, or significant vendor shall be assessed 
under subparagraph (A) against that applicant, 
licensee, or significant vendor. 
(C) EXPENSES FOR GENERAL ADMINISTRA-
TION.—Expenses for general administration 
shall be assessed against all licensees equally. 
(D) 
DISPOSITION
OF
USER
FEES.— 
Amounts assessed by a qualified State agency 
as user fees under this paragraph shall— 
(i) be remitted to the Secretary, in the 
amount of that State’s share as deter-
mined under paragraph (3) for deposit in 
the Treasury in accordance with subpara-
graph (B) of such paragraph; and 
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(ii)(I) be available to the qualified 
State agency to cover expenses incurred by 
the qualified State agency in carrying out 
the provisions of this title; and 
(II) not be construed to be Govern-
ment funds or appropriated monies, or 
subject to apportionment for the purposes 
of any other provision of law. 
(F) COLLECTION.— 
(i) REFERRAL.—If a licensee or sig-
nificant vendor fails to pay a user fee to a 
qualified State agency under this para-
graph after the assessment of the fee has 
become final— 
(I) the qualified State agency 
may recover the amount assessed by 
action in a court of the State or In-
dian tribe of the qualified State agen-
cy or in the appropriate United States 
district court, along with any costs of 
collection and attorney fees; and 
(II) such failure may be grounds 
for denial of an application for a li-
cense under this title or revocation of 
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a license or certificate of suitability 
under this title. 
(ii) ASSESSMENT
REVIEWABLE.—In 
any civil action under clause (i), a court 
may review the validity and adjust the 
amount of the user fees. 
(G) USER FEES OF SIGNIFICANT VENDORS 
MAY
BE
PAID
BY
APPLICANTS
AND
LICENS-
EES.—A user fee assessed against a significant 
vendor may be paid by an applicant or licensee 
on behalf of the significant vendor. 
(2) DIRECT
AND
EXCLUSIVE
OBLIGATION
OF 
LICENSEE.—With respect to a licensee, a user fee 
shall be the direct and exclusive obligation of the li-
censee and may not be deducted from amounts avail-
able as deposits to any person placing a bet or wager 
with the licensee. 
(3) 
USER
FEES
ESTABLISHED
BY
SEC-
RETARY.— 
(A) IN GENERAL.—The Secretary shall de-
termine the funding requirements necessary to 
meet the Secretary’s cost of administering this 
title and notify each qualified State agency of 
its proportional share to be collected by such 
agency under paragraph (1)(A). 
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(B) 
DISPOSITION
OF
USER
FEES.— 
Amounts remitted to the Secretary under para-
graph (1)(D)(i) shall— 
(i) be deposited into a separate ac-
count in the Treasury to be known as the 
‘‘Internet Poker Oversight Fund’’; and 
(ii) be available to the Secretary in 
such amounts, subject to appropriations, to 
cover expenses incurred by the Secretary in 
carrying out the provisions of this title. 
(f) APPROVAL OF LICENSE.— 
(1) IN
GENERAL.—A qualified State agency 
may issue licenses under this title for the operation 
of an Internet poker facility to any applicant that— 
(A) owns or controls a company that oper-
ates a casino gaming facility, qualified race 
track, or qualified card room and owned or con-
trolled such facility, race track, or card room on 
the date that is 10 days before the date of the 
enactment of this Act; 
(B) for the duration of the 5-year period 
ending on the date on which the applicant sub-
mits an application under subsection (b)(1), 
owned or controlled a casino gaming facility, 
qualified race track, or qualified card room; 
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(C) is owned or controlled by a person 
who— 
(i) owns or controls a company that 
operates a casino gaming facility, qualified 
race track, or qualified card room and 
owned or controlled such facility, race 
track, or card room on the date that is 10 
days before the date of the enactment of 
this Act; or 
(ii) for the duration of the 5-year pe-
riod ending on the date on which the appli-
cant submits an application under sub-
section (b)(1), owned or controlled a casino 
gaming facility, qualified race track, or 
qualified card room; 
(D) for the duration of the 5-year period 
ending on the date on which the applicant sub-
mits an application under subsection (b)(1), 
under license issued by a State or Indian tribe 
manufactured and supplied to casino gaming 
facilities with— 
(i) not fewer than 500 slot machines; 
or 
(ii) qualified mobile gaming systems; 
and 
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(E) meets other criteria established by the 
Secretary or by the qualified State agency 
under this title. 
(3) EXPANSION
OF
LICENSEES
ONLY
IF
NO 
RISK TO PUBLIC.—Beginning on the date that is 2 
years after the date of first issuance specified in sec-
tion 115(b), the Secretary may, by rule, authorize 
the issuance of licenses to applicants other than 
those described in paragraph (2) if the Secretary de-
termines, after providing the public with notice and 
an opportunity to comment, that such authorization 
will not significantly increase the risk that the 
standards described in subsection (d) will not be sat-
isfied by licensees. 
(4) AUTHORITY OF SECRETARY TO REVOKE LI-
CENSES.—Notwithstanding any certificate of suit-
ability or license issued by a qualified State agency, 
the Secretary may suspend or revoke such certificate 
or license if the Secretary has reason to believe that 
the recipient does not meet the suitability require-
ments established under subsection (c) or, as appli-
cable, any other requirement imposed on a licensee 
under this title. The Secretary may not overturn a 
decision by a qualified State agency to deny or to 
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terminate a license or to deny or revoke a certificate 
of suitability. 
(5) CONFLICTS
BETWEEN
QUALIFIED
STATE 
AGENCIES.—If a qualified State agency denies a li-
cense, terminates a license, denies a certificate of 
suitability, or revokes a certificate of suitability to a 
person and within 12 months of such denial, termi-
nation, or revocation another qualified State agency 
grants such person a license or certificate of suit-
ability, the Secretary shall— 
(A) commence a review of such license or 
certificate of suitability; and 
(B) not later than 90 days after such com-
mencement, determine whether to act under 
paragraph (4). 
(6) CONTROL
DEFINED.—In this subsection, 
the term ‘‘control’’ means, with respect to a person, 
the possession, directly or indirectly, of the power to 
direct or influence the direction of the management 
or policies of the person, whether through the owner-
ship of voting securities, through a management, ex-
ecutive officer, or board position, by shareholders or 
similar agreement, or otherwise. 
(g) LOCATION OF REMOTE GAMING EQUIPMENT.— 
A licensee shall maintain its remote gaming equipment 
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within the territory of the United States throughout the 
term of its license. A qualified State agency may require 
applicants that seek a license from such qualified State 
agency to locate that equipment within the territory of the 
State or Indian tribe of the qualified State agency if the 
qualified State agency determines that such requirement 
will advance the regulatory interests of this title. 
(h) LICENSE IS A PRIVILEGE NOT A RIGHT.—A deci-
sion by a qualified State agency not to grant a person 
a license or certificate of suitability, or to terminate a li-
cense, or revoke a certificate of suitability, is not review-
able under Federal law or the law of any jurisdiction other 
than the jurisdiction of the qualified State agency. The 
State or Indian tribe of the jurisdiction of the qualified 
State agency may, but need not, provide an opportunity 
to appeal. 
(i) TERM, RENEWAL, AND TRANSFER OF LICENSE.— 
(1) TERM.—Any license issued under this title 
shall be issued for a 5-year term beginning on the 
date of issuance. A license may be renewed in ac-
cordance with requirements prescribed by the quali-
fied State agency that issued the license under this 
title. 
(2) TRANSFER.—A transfer of a license, change 
of control of a licensee, or change in significant ven-
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dor shall require prior approval by the qualified 
State agency that issued the license. The qualified 
State agency shall at a minimum ensure the suit-
ability requirements of subsection (c) continue to be 
satisfied before approving any such transfer or 
change. 
(j) ADMINISTRATIVE PROVISIONS.— 
(1) DETERMINATION OF INTERNET POKER.— 
(A) INITIAL
DETERMINATION
BY
QUALI-
FIED
STATE
AGENCY.—A determination of 
whether a game, hand, tournament, or other 
contest of a licensee is Internet poker shall be 
made in the first instance by the qualified State 
agency that issued the license to such licensee 
under this title. 
(B) CHALLENGES.— 
(i) CHALLENGE
MADE
WITH
SEC-
RETARY.—A licensee or qualified State 
agency may file a challenge with the Sec-
retary regarding any determination of the 
State agency under subparagraph (A) that 
a game, hand, tournament, or other con-
test of another licensee is Internet poker. 
(ii) DETERMINATION MADE BY SEC-
RETARY WITHIN 30 DAYS.—If a challenge 
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(iii) designated location in the District 
of Columbia. 
(C) NO LIABILITY FOR EXPENSES.—The 
Secretary shall not be liable for any expense in-
curred in connection with the production of 
books, papers, records, or other data under this 
paragraph. 
(D) SERVICE OF SUMMONS.—Service of a 
summons issued under this subsection may be 
by registered mail or in such other manner cal-
culated to give actual notice as determined by 
the Secretary. 
(E) AUTHORIZATION TO INVOKE AID OF 
COURTS.—The Secretary may invoke the aid of 
any court of the United States to compel com-
pliance with the summons within the jurisdic-
tion of which— 
(i) the investigation which gave rise to 
the summons or the examination is being 
or has been carried on; 
(ii) the person summoned is an inhab-
itant; or 
(iii) the person summoned carries on 
business or may be found. 
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(F) POWER OF COURTS TO COMPEL AP-
PEARANCE.—The court may issue an order re-
quiring the person summoned to appear before 
the Secretary— 
(i) to produce books, papers, records, 
and other data; 
(ii) to give testimony as may be nec-
essary to explain how such material was 
compiled and maintained; 
(iii) to allow the Secretary to examine 
the business of a licensee; and 
(iv) to pay the costs of the proceeding. 
(G) CONTUMACY OR REFUSAL.—Any fail-
ure to obey the order of the court under this 
paragraph may be punished by the court as a 
contempt thereof. All process in any case under 
this subsection may be served in any judicial 
district in which such person may be found. 
SEC. 105. ENFORCEMENT. 
(a) DISCIPLINARY ACTION.— 
(1) IN GENERAL.—A licensee may be subject to 
disciplinary action, including suspension or revoca-
tion of its license, by a qualified State agency that 
issued a license to the licensee or by the Secretary 
if the licensee fails to comply with any provision of 
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this title, any regulation prescribed thereunder, or 
any other applicable provision of State or tribal law. 
(2) INITIATING
AGENCY.—Only the Secretary 
or the qualified State agency which granted the li-
cense may initiate disciplinary action under this 
title. 
(3) SAVINGS PROVISION.—Nothing in this sub-
section shall be construed to prohibit a law enforce-
ment authority or regulatory body that has authority 
over a licensee or an affiliated person, independent 
from this title, from taking action under the law of 
that law enforcement authority or regulatory body. 
(4) DISCIPLINARY PROCEDURES.— 
(A) IN GENERAL.—A qualified State agen-
cy shall commence disciplinary action under this 
subsection against a licensee upon service of a 
formal written complaint upon the licensee, 
with a copy forwarded to the Secretary, that 
sets forth the grounds for the disciplinary ac-
tion and the proposed penalty that is being 
sought, which may include any or all of the im-
position of a fine as provided pursuant to sub-
section (m)(1) or limitation, condition, suspen-
sion or revocation of the license. 
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(B) IN ACCORDANCE WITH LAW OF JURIS-
DICTION OF QUALIFIED STATE AGENCY.—The 
disciplinary process shall proceed according to 
the law of the jurisdiction of the applicable 
qualified State agency. 
(5) FINALITY OF ACTION AND APPEALS.— 
(A) FINALITY.—Any disciplinary action 
shall be treated as a final action. 
(B) ACTION BY QUALIFIED STATE AGEN-
CIES.—A licensee aggrieved by disciplinary ac-
tion by a qualified State agency may file an ap-
peal in the jurisdiction where the qualified 
State agency taking such action is located only 
to the extent permitted by the law of such juris-
diction. 
(C) ACTION
BY
SECRETARY.—A licensee 
aggrieved by disciplinary action by the Sec-
retary may file an appeal in the United States 
District Court for the District of Columbia. 
Such court shall set aside the action if it deter-
mines that the action was— 
(i) arbitrary, capricious, an abuse of 
discretion, or otherwise not consistent with 
law; or 
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(ii) without observance of procedure 
required by law. 
(6) PENDING APPEAL.—During the period in 
which a suspension or revocation of an existing li-
cense is being challenged through a pending judicial 
proceeding, the court handling the challenge may 
allow the licensee to continue offering bets and wa-
gers in full compliance with the terms of its existing 
license and any other conditions the court considers 
necessary, if the court determines that— 
(A) the appellant has a reasonable likeli-
hood of success on the merits; and 
(B) allowing the appellant to continue of-
fering bets and wagers while the appeal is pend-
ing will not threaten the public interest. 
(7) RETURN OF CUSTOMER FUNDS.—If a li-
censee’s license is revoked and no appeal pursuant 
to paragraph (5) is pending, the licensee shall— 
(A) return all customer funds in an orderly 
manner not later than 30 days after the date 
of the revocation of the license; or 
(B) place in escrow those sums return of 
which to United States customers is not feasible 
due to change in customer address, bank de-
tails, or similar difficulty, in an account with a 
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financial institution in the United States for 
safekeeping and orderly disposition by the Sec-
retary. 
(8) REFERRAL TO ATTORNEY GENERAL.—If, in 
the course of carrying out the provisions of this title, 
the Secretary or a qualified State agency finds a 
substantial basis to believe that a person has vio-
lated section 103, the Secretary or qualified State 
agency shall refer such matter to the Attorney Gen-
eral. 
(b) CIVIL MONEY PENALTIES.— 
(1) IN GENERAL.— 
(A) PENALTIES ASSESSED BY QUALIFIED 
STATE
AGENCIES.—A qualified State agency 
may assess upon any licensee or other person 
subject to the requirements of this title for each 
violation of this title or any regulation pre-
scribed or order issued under this title, a civil 
penalty of not more than the greater of— 
(i) the amount involved in the viola-
tion, if any; 
(ii) $250,000 for an individual and 
$750,000 for a corporation; or 
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(iii) such other amount as provided 
under the applicable State or tribal law of 
the qualified State agency. 
(B) 
PENALTIES
ASSESSED
BY
SEC-
RETARY.—The Secretary may assess upon any 
licensee or other person subject to the require-
ments of this title for each violation of this title 
or any regulation prescribed or order issued 
under this title, a civil penalty of not more than 
the greater of— 
(i) the amount involved in the viola-
tion, if any; or 
(ii) $250,000 for an individual and 
$750,000 for a corporation. 
(C) NOT CUMULATIVE.— 
(i) IN GENERAL.—The penalties au-
thorized under subparagraphs (A) and (B) 
shall not be cumulative and only one such 
penalty may be assessed per violation. 
(ii) CONSTRUCTION.—Clause (i) shall 
not be construed to limit the authority of 
a qualifying body or the Secretary, as the 
case may be, to pursue a civil penalty for 
each violation of a related series of viola-
tions. 
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(D) FAILURE
TO
OBTAIN
A
LICENSE.— 
Notwithstanding any other provision of law, the 
Secretary may assess upon a person that is re-
quired to obtain a license under this title, but 
fails to obtain a license under this title, a civil 
penalty of not more than the greater of— 
(i) the amount of bets or wagers 
taken by the person from players in the 
United States during the period that a li-
cense was needed but not held by the per-
son; or 
(ii) $1,000,000 per day that the per-
son accepts bets or wagers from players in 
the United States during the period that a 
license was needed but not held by the per-
son. 
(E) 
CONSTRUCTION.—Nothing 
in 
this 
paragraph shall be construed to affect the abil-
ity of a law enforcement official to seek crimi-
nal penalties against a person. 
(2) ASSESSMENT.— 
(A) ENFORCEMENT BY QUALIFIED STATE 
AGENCIES.—Qualified State agencies and such 
other entities as are authorized by applicable 
State law shall enforce the provisions of this 
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title under the law of the applicable State or In-
dian tribe, and penalties shall be determined, 
reviewable, collectable, and disposed of as pro-
vided under such law. 
(B) ENFORCEMENT BY SECRETARY.— 
(i) WRITTEN
NOTICE.—Any penalty 
imposed under paragraph (1)(B) shall be 
assessed and collected by the Secretary by 
written notice. 
(ii) FINALITY
OF
ASSESSMENT.—If, 
with respect to any assessment under para-
graph (1)(B), a hearing is not requested 
pursuant to clause (v) within the period of 
time allowed under such clause, the assess-
ment shall constitute a final agency order. 
(iii) 
AUTHORITY
TO
MODIFY
OR 
REMIT
PENALTY.—The Secretary may 
compromise, modify, or remit any penalty 
which the Secretary may assess or has al-
ready assessed under paragraph (1)(B). 
(iv) MITIGATING FACTORS.—In deter-
mining the amount of any penalty imposed 
under paragraph (1)(B), the Secretary 
shall take into account the appropriateness 
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of the penalty with respect to the fol-
lowing: 
(I) The size of the financial re-
sources and the good faith of the per-
son against whom the penalty is as-
sessed. 
(II) The gravity of the violation. 
(III) The history of previous vio-
lations. 
(IV) Such other matters as jus-
tice may require. 
(v) HEARING.—The person against 
whom any penalty is assessed under para-
graph (1)(B) shall be afforded an agency 
hearing if such person submits a request 
for such hearing not later than 20 days 
after the date of the issuance of the notice 
of assessment. 
(vi) COLLECTION.— 
(I) REFERRAL.—If any person 
fails to pay an assessment after any 
penalty assessed under this subpara-
graph has become final, the Secretary 
shall recover the amount assessed by 
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action in the appropriate United 
States district court. 
(II) SCOPE OF REVIEW.—In any 
civil action under subclause (I), the 
validity and appropriateness of the 
penalty shall be subject to review for 
abuse of agency discretion. 
(vii) DISBURSEMENT.—All penalties 
collected under authority of paragraph 
(1)(B) shall be deposited into the Treasury 
of the United States. 
(3) CONDITION FOR LICENSURE.—Payment by 
a licensee of any civil penalty assessed under this 
subsection that has become final shall be a require-
ment for the retention of its license. 
SEC. 106. COMPULSIVE GAMING, RESPONSIBLE GAMING, 
AND SELF-EXCLUSION PROGRAM REQUIRE-
MENTS. 
(a) REGULATIONS REQUIRED.—Each qualified State 
agency shall, before issuing any licenses under this title, 
establish requirements for the development of a Compul-
sive Gaming, Responsible Gaming, and Self-Exclusion 
Program that each licensee of that qualified State agency 
shall implement as a condition of licensure. Such require-
ments shall also provide for the establishment of a pro-
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gram to alert the public to the existence, consequences, 
and availability of the self-exclusion list established under 
subsection (c). 
(b) MINIMUM REQUIREMENTS.—At a minimum, each 
qualified State agency shall require that licensees— 
(1) provide informational materials written in 
plain language about responsible gaming, including 
information about the self-exclusion list established 
under subsection (c) and how a player may request 
placement on the list, each time a player signs in to 
make a bet or wager, which materials shall be pro-
vided via a prominently displayed hyperlink or com-
parable mechanism; 
(2) provide informational materials about re-
sponsible gaming to any player that requests such 
materials; 
(3) make continuously available individualized 
responsible gaming options that any customer may 
choose, including allowing customers to self-limit 
their access to the issuance of credit, check cashing, 
or direct mail marketing by the licensee, in each 
case as and to the extent that the qualified State 
agency may consider appropriate; 
(4) ensure to a reasonable degree of certainty 
that persons on the list of self-excluded persons es-
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tablished pursuant to subsection (c) are prevented 
from initiating any bets or wagers within the scope 
of this title; and 
(5) ensure that the information required under 
this subsection is clearly and prominently made 
available by the licensee in each language in which 
services of the Internet poker facility of the licensee 
are offered. 
(c) LIST OF PERSONS SELF-EXCLUDED.— 
(1) ESTABLISHMENT.— 
(A) LISTS
MAINTAINED
BY
QUALIFIED 
STATE AGENCIES.—Each qualified State agency 
shall establish and maintain a list of persons 
self-excluded 
from 
playing 
Internet 
poker 
through Internet poker facilities licensed by the 
qualified State agency. Each week, each quali-
fied State agency shall submit to the Secretary 
a current copy of the list. 
(B) MASTER
LIST
MAINTAINED
BY
SEC-
RETARY.—The Secretary shall establish and 
maintain a master list of all persons self-ex-
cluded from playing Internet poker through 
Internet poker facilities licensed under this title. 
Such list shall consist of all persons submitted 
under subparagraph (A). The Secretary shall 
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make the master list available to all qualified 
State agencies and licensees. 
(C) PLACEMENT
REQUEST.—Any person 
may request placement on the list of self-ex-
cluded persons by— 
(i) acknowledging in a manner to be 
established by each qualified State agency 
with respect to its licensees that the person 
wishes to be denied gaming privileges with-
in the scope of this title; and 
(ii) agreeing that, during any period 
of voluntary exclusion, the person may not 
collect any winnings or recover any losses 
resulting from any gaming activity at any 
Internet gambling facility of a licensee. 
(2) LIMITATION ON LIABILITY.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the United States, the Sec-
retary, a qualified State agency, the State or 
Indian tribe in which that qualified State agen-
cy is located, an enforcement agent, licensee, or 
any employee or agent thereof, shall not be lia-
ble to any self-excluded person or to any other 
party in any judicial or administrative pro-
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ceeding for any harm, monetary or otherwise, 
which may arise as a result of— 
(i) any failure to withhold gaming 
privileges from, or to restore gaming privi-
leges to, a self-excluded person; 
(ii) otherwise permitting a self-ex-
cluded person to engage in gaming activity 
while on the list of self-excluded persons; 
or 
(iii) disclosure of information about 
individuals placed on the list of self-ex-
cluded persons. 
(B) LICENSEES.—A licensee or employee 
or agent thereof may be liable to a self-excluded 
person in a judicial or administrative pro-
ceeding for a harm described in subparagraph 
(A) to the extent provided under the law of the 
State or Indian tribe of the qualified State 
agency that issued the license. 
(C) RULE OF CONSTRUCTION.—Nothing in 
this paragraph shall be construed to prevent the 
Secretary or a qualified State agency from as-
sessing a regulatory sanction against a licensee 
or person for failing to comply with a provision 
of this section or a regulation prescribed there-
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under or for misuse of any list of self-excluded 
persons for purposes not authorized under this 
section. 
(3) DISCLOSURE PROVISIONS.— 
(A) IN
GENERAL.—Notwithstanding any 
other provision of Federal, State, or tribal law, 
the list of self-excluded persons shall not be 
open to public inspection. 
(B) AFFILIATE DISCLOSURE.—If necessary 
to effectuate the self-exclusion purposes of this 
subsection, any licensee may disclose the identi-
ties of persons on the self-excluded list to any 
significant vendor, service provider, or affiliated 
company to the extent that the significant ven-
dor, service provider, or affiliated company 
maintains such information under confiden-
tiality provisions comparable to those in this 
subsection. 
(d) GAMING BY PROHIBITED PERSONS.— 
(1) PROHIBITION ON BENEFITTING FROM PRO-
HIBITED GAMING ACTIVITY.—A person who is pro-
hibited from gaming with a licensee by law, or by 
order of the Secretary, a qualified State agency, or 
any court of competent jurisdiction, including any 
person on the self-exclusion list under subsection (c), 
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shall not collect, in any manner or proceeding, any 
winnings or recover any losses arising as a result of 
any prohibited gaming activity. 
(2) FORFEITURE.—In addition to any other 
penalty provided by law, any money or thing of value 
that has been obtained by, or is owed to, any prohib-
ited person by a licensee as a result of bets or wa-
gers made by a prohibited person after the applica-
ble prohibition has become effective shall be subject 
to forfeiture by order of the Secretary or a qualified 
State agency, following notice to the prohibited per-
son and opportunity to be heard. 
(3) DEPOSIT
OF
FORFEITED
FUNDS.—Any 
funds forfeited pursuant to this subsection shall be 
deposited into the Treasury of the United States, or, 
in the case of a forfeiture to a qualified State agen-
cy, as provided by the applicable State or tribal law. 
(e) REQUIREMENTS WITH RESPECT TO CHILD SUP-
PORT DELINQUENTS.— 
(1) IN GENERAL.—When it is made known to 
the Secretary or a qualified State agency by a Fed-
eral or State court or a competent State agency in-
volved with the administration or enforcement of a 
court-ordered child support payment that a par-
ticular individual is delinquent with respect to court- 
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ordered child support payments, the Secretary shall 
include that individual on the list established under 
subsection (c). 
(2) REMOVAL FROM LIST.—Individuals placed 
on the list pursuant to paragraph (1) shall be re-
moved from such list if the court or agency that 
made such individual’s delinquency known to the 
Secretary notifies the Secretary that such individual 
is no longer delinquent. 
(f) ADMINISTRATIVE PROVISIONS.— 
(1) RULE OF CONSTRUCTION.—No provision of 
this section shall be construed as creating a legal 
duty in the Secretary, a qualified State agency, a li-
censee, or any employee or agent thereof to identify 
or to exclude compulsive players not on the list of 
self-excluded persons. 
(2) NO CAUSE OF ACTION.—The Secretary, a 
qualified State agency, a licensee, and any employee 
or agent thereof, shall not be liable to any person in 
any proceeding for losses or other damages of any 
kind arising out of that person’s gaming activities 
based on a claim that the person was a compulsive, 
problem, or pathological player. 
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SEC. 107. PROHIBITIONS AND RESTRICTIONS. 
(a) PROHIBITION ON BETS OR WAGERS ON SPORT-
ING
EVENTS
AND
GAMES
OTHER
THAN
INTERNET 
POKER.— 
(1) IN
GENERAL.—No provision of this title 
shall be construed to authorize any licensee to accept 
a bet or wager on— 
(A) any game, event, or activity that is not 
Internet poker; or 
(B) any sporting event in violation of any 
applicable provision of Federal or State law. 
(2) CONSTRUCTION.—Nothing in this title shall 
be construed to repeal or to amend any provision of 
Federal or State law prohibiting, restricting, or oth-
erwise addressing bets or wagers on sporting events, 
including provisions of Federal and State law that 
permit participation in any fantasy or simulation 
sports games. 
(b) PROHIBITION ON THE USE OF CREDIT CARDS 
FOR INTERNET GAMBLING.— 
(1) IN GENERAL.—No licensee, no person oper-
ating on behalf of a licensee, and no person accept-
ing payment for or settlement of a bet or wager who 
intends to transmit such payment to a person li-
censee, may accept a bet or wager or payment for 
or settlement of a bet or wager that is transmitted 
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or otherwise facilitated with a credit card (as defined 
in section 5362(11) of title 31, United States Code). 
(2) EXCEPTION.— 
(A) CLARIFICATION AND SCOPE.—For any 
person licensed to take bets or wagers in ac-
cordance with the Interstate Horseracing Act of 
1978, the prohibition in paragraph (1) shall 
only apply to those activities conducted pursu-
ant to a license under this title. 
(B) INTRASTATE
ACTIVITIES.—For any 
person involved in legal, land-based or State- or 
tribal-regulated intrastate gambling, the prohi-
bition in paragraph (1) shall only apply to those 
activities conducted pursuant to a license under 
this title. 
(c) PUBLIC INTERNET POKER PARLORS PROHIB-
ITED.— 
(1) IN GENERAL.—It shall be considered a vio-
lation of this title to operate a place of public accom-
modation, club (including a club or association lim-
ited to dues-paying members or similar restricted 
groups), or similar establishment in which computer 
terminals or similar access devices are made avail-
able to be used principally for the purpose of access-
ing Internet gambling facilities. 
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(2) CRIMINAL
PENALTIES.—Any person who 
violates subsection (a) shall be fined under title 18, 
United States Code, imprisoned for not more than 
5 years, or both. 
(3) CONSTRUCTION.—Nothing in this title shall 
be construed to authorize or otherwise to permit the 
operation of places of public accommodation, clubs 
(including clubs or associations limited to dues-pay-
ing members or similar restricted groups) and simi-
lar establishments that permit access to Internet 
gambling facilities. 
(4) RELATION TO STATE, LOCAL, AND TRIBAL 
LAW.—Places of public accommodation, clubs, or 
similar establishments described in subsection (c) 
shall be subject to all otherwise applicable State, 
local, and tribal police, criminal, zoning, and other 
regulatory powers which are not intended to be lim-
ited in any way by this title. 
SEC. 108. SAFE HARBOR. 
It shall be an affirmative defense to any prosecution 
or enforcement action under any provision of Federal, 
State, or tribal law that the activity forming the basis of 
such prosecution or enforcement action is authorized 
under and has been carried out lawfully in accordance with 
and under the terms of— 
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(1) this title; or 
(2) the Interstate Horseracing Act of 1978 (15 
U.S.C. 3001 et seq.). 
SEC. 109. RELATION TO SUBCHAPTER IV OF CHAPTER 53 OF 
TITLE 31, UNITED STATES CODE. 
Subchapter IV of chapter 53 of title 31, United 
States Code, shall not apply to any bet or wager— 
(1) occurring pursuant to a license issued under 
this title, subject to section 109; or 
(2) that is permissible under the Interstate 
Horseracing Act of 1978 (15 U.S.C. 3001 et seq.). 
SEC. 110. CHEATING AND OTHER FRAUD. 
(a) CHEATING
AND CHEATING DEVICES PROHIB-
ITED.— 
(1) CHEATING PROHIBITED.—No person initi-
ating, receiving, or otherwise making a bet or wager 
with a licensee, or sending, receiving, or inviting in-
formation assisting with a bet or wager with a li-
censee shall knowingly violate, attempt to violate, or 
assist another in violating the rules of play estab-
lished by the licensee for the purpose of obtaining 
prohibited or unfair advantage in any game author-
ized under this title. 
(2) CHEATING DEVICES.—Except as provided in 
paragraph (3), no person initiating, receiving, or 
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(1) prohibits, restricts, or otherwise addresses 
bets or wagers; or 
(2) prohibits fraud, unfair or deceptive acts or 
practices, or other criminal activity. 
(c) PREEMPTION OF STATE AND TRIBAL LAWS.— 
(1) IN
GENERAL.—Except as otherwise ex-
pressly provided in this title, the provisions of this 
title shall supersede any provisions of the law of any 
State or Indian tribe expressly relating to the per-
mitting, prohibiting, licensing, or regulating of Inter-
net gambling facilities, including Internet poker fa-
cilities, and the law of any State or Indian tribe ex-
pressly relating to the permitting, prohibiting, licens-
ing, or regulation of gambling, except to the extent 
such State or tribal laws are not inconsistent with 
this title. 
(2) LOTTERIES.—No provision of this title shall 
be construed to have any effect on the rights, privi-
leges, or obligations of a State or tribal lottery as 
may be provided under other applicable Federal, 
State, or tribal law. 
(3) SAVINGS PROVISION.—Nothing in this title 
may be construed to limit the applicability or en-
forcement of any State or tribal consumer protection 
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