117 
(A) CASINO GAMING FACILITY.—The term 
‘‘casino gaming facility’’ means any facility that 
provides casino gaming on a riverboat, at a race 
track, or in another facility, regardless of the 
number of gaming devices in 1 physical loca-
tion, pursuant to a duly authorized license 
issued by a gaming regulatory authority of a 
State of Indian tribe. 
(B) PARTICIPANTS.—The term ‘‘partici-
pants’’ includes all persons who are party to the 
bet or wager, including, in the case of banked 
games, the casino gaming facility or operator 
itself. 
(h) PRESERVATION
OF EXISTING LAWFUL GAM-
BLING.— 
(1) IN GENERAL.—This title, subchapter IV of 
chapter 53 of title 31, United States Code, section 
1084 of title 18, United States Code, and any other 
provision of Federal law that establishes criminal 
penalties for any activity involved in placing, receiv-
ing, or otherwise transmitting a bet or wager, infor-
mation assisting in the placing of bets or wagers, or 
a communication which entitles the recipient to re-
ceive money or credit as a result of bets or wagers, 
shall not apply to the offering of a bet or wager or 
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118 
gambling game authorized, licensed, and regulated 
by a State or Indian tribe on the day before the date 
of enactment of this Act and otherwise lawful activi-
ties in support of the offering of that bet or wager 
or gambling game, or that is permissible under the 
Interstate Horseracing Act of 1978 (15 U.S.C. 3001 
et seq.); or that is the purchase of a chance or op-
portunity to win a lottery or other prize— 
(A) which opportunity to win is predomi-
nantly subject to chance; and 
(B) which is authorized by a State or In-
dian tribe wholly within its borders; 
(2) APPLICABILITY.—Paragraph (1) shall not 
apply to— 
(A) any expansion of or other change to 
any such bet or wager or gambling game that 
otherwise would violate any applicable provision 
of Federal law if a change in State or tribal law 
is necessary in order to permit such expansion 
or change; 
(B) the offering of a bet or wager or gam-
bling game of the same type and character in 
a State or Indian tribe in which that bet or 
wager or gambling game is not permitted on 
the date of enactment of this Act; and 
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119 
(C) qualifying intrastate lottery trans-
actions. 
(3) CASINO
GAMING
FACILITY
DEFINED.—In 
this subsection, the term ‘‘casino gaming facility’’ 
means any facility that provides casino gaming on a 
riverboat, at a race track, or in another facility, re-
gardless of the number of gaming devices in 1 phys-
ical location, pursuant to a duly authorized license 
issued by a gaming regulatory authority of a State 
of Indian tribe. 
SEC. 114. ORDERLY TRANSITION. 
(a) ISSUANCE OF INITIAL LICENSES.— 
(1) IN
GENERAL.—Each qualified body des-
ignated under section 105 before the date of first 
issuance specified in this subsection, shall, to the ex-
tent practicable while meeting the requirements and 
standards of this title, issue multiple licenses under 
this title before such date in order to ensure a ro-
bust and competitive market for consumers and to 
prevent the first licensees from gaining an unfair 
competitive advantage. 
(2) EFFECTIVE DATE OF INITIAL LICENSES.— 
No license issued under this title shall authorize a 
licensee to accept a bet or wager under this title be-
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120 
fore the date of first issuance specified in this sub-
section. 
(3) DATE OF FIRST ISSUANCE.—The date of 
first issuance specified in this subsection is the date 
that is 270 days after the date of the enactment of 
this Act. 
(b) ORDERLY CESSATION OF UNLICENSED ACTIVITY 
AND SAFEKEEPING OF CUSTOMER FUNDS.— 
(1) IN GENERAL.—Each person shall, with re-
spect to an Internet gambling facility not licensed 
under this Act and to the extent applicable to the 
person— 
(A) not later than 30 days after the date 
of the enactment of this Act, cease offering, ac-
cepting, and providing services with respect to 
bets or wagers from individuals the person 
knows, or reasonably should know, are located 
in the United States; 
(B) provide to each individual located in 
the United States who has outstanding sums on 
deposit with such person notice to such indi-
vidual that operations will be ceasing pursuant 
to paragraph (1) with instructions indicating 
the procedures the individual should use to re-
quest the return of such sums— 
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121 
(i) not later than 7 days after the 
date of the enactment of this Act and not 
less frequently than quarterly thereafter 
until such sums have been returned, by e- 
mail; 
(ii) not later than 30 days after the 
date of the enactment of this Act and not 
less frequently than semi-annually there-
after until such sums have been returned, 
by mail; and 
(iii) beginning not later than 14 days 
after the date of the enactment of this Act 
and ending on the date that such sums 
have been returned, by promptly displaying 
notice each time such individual signs into 
the Internet gambling facility; 
(C) promptly return all outstanding sums 
to individuals located in the United States who 
have sums on deposit with such person, upon 
the request of such individuals; 
(D) during the 2-year period beginning on 
the date of the enactment of this Act, retain all 
outstanding sums on deposit with such person 
that are owed to individuals under subpara-
graph (C) the disposition of which remains un-
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122 
resolved because of a lack of a request by such 
individual under such subparagraph or other 
reason; and 
(E) on the date that is 2 years and 1 day 
after the date of the enactment of this Act, 
place any remaining sums on deposit with such 
person that are owed to individuals under sub-
paragraph (C) the disposition of which remains 
unresolved in escrow with a financial institution 
in the United States for safekeeping and or-
derly disposition as the Secretary may direct. 
(2) APPLICABILITY REGARDLESS OF LICENSE 
APPLICATION
STATUS.—Paragraph (1) applies to 
any person who has operated an Internet gambling 
facility not licensed under this Act regardless of 
whether the person applies for a license or seeks a 
certificate of suitability with respect to an applica-
tion for a license under this title. 
(3) CRIMINAL
PENALTY.—Whoever violates 
paragraph (1) shall be fined under title 18, United 
States Code, in an amount not to exceed 3 times the 
amount of the funds subject to this subsection or 
imprisoned under such title for not more than 2 
years, or both. 
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123 
(4) REGULATIONS.—The Office of Internet 
Gambling Oversight shall prescribe regulations to 
carry out this subsection. 
(5) JUDICIAL REVIEW.—An applicant may seek 
judicial review of a determination under paragraph 
(1) or (2) only by the United States district court 
for the District of Columbia in accordance with 
chapter 7 of title 5, United States Code. 
(c) NO EFFECT ON EXISTING LAW.—Nothing in this 
section shall be construed to repeal, to amend, or to affect 
the interpretation of any provision of Federal or State law 
that was in effect before the date of the enactment of this 
Act that— 
(1) authorizes the provision of services relating 
to bets or wagers by facilities authorized and li-
censed by that State or Indian tribe in compliance 
with the law of that State or Indian tribe, as appli-
cable, and solely provides services to participants 
wholly within the boundaries of such State or the In-
dian lands of such Indian tribe; 
(2) prohibits, restricts, or otherwise addresses 
bets or wagers; or 
(3) prohibits fraud, unfair or deceptive acts or 
practices, or other criminal activity. 
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124 
SEC. 115. ANNUAL REPORTS. 
(a) LICENSING
AND REGULATION
OF INTERNET 
GAMBLING FACILITIES.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of first issuance specified in section 114(a) 
and not less frequently than annually thereafter, the 
Secretary shall submit to Congress a report on the 
licensing and regulation of Internet gambling facili-
ties under this title. 
(2) ELEMENTS.—Each report submitted under 
paragraph (1) shall include the following: 
(A) A description of all notices received by 
the Secretary under subsections (b) and (c) of 
section 108. 
(B) The amount of assessments collected 
under section 106(e) and, in cooperation with 
the Secretary of the Treasury, an estimate of 
the amount of income tax revenue that is at-
tributable to the operation of Internet gambling 
facilities during the period covered by the re-
port. 
(C) A list of qualified bodies, the number 
of licensees reviewed by the qualified bodies 
under this title, and the outcomes of such re-
views. 
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125 
(D) A description of the efforts the Sec-
retary has undertaken to ensure that qualified 
bodies are properly issuing licenses and regu-
lating licensees under this title. 
(E) A detailed description of each type of 
game offered by licensees and how each type is 
consistent with the definition of ‘‘poker’’ under 
section 102. 
(F) Such other information as the Sec-
retary considers appropriate. 
(b) CONSUMER PROTECTION.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of first issuance specified in section 114(a) 
and not less frequently than annually thereafter, the 
Secretary shall submit to the Committee on Bank-
ing, Housing and Urban Affairs of the Senate and 
the Committee on Financial Services of the House of 
Representatives a report on commercial and regu-
latory practices carried out to protect consumers 
with respect to Internet gambling, including the 
practices carried out pursuant to the requirements 
of section 107 and the regulations prescribed pursu-
ant to such section. 
(2) ELEMENTS.—Each report submitted under 
paragraph (1) shall include the following: 
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126 
(A) A detailed description of the efforts of 
each qualifying body to protect consumers from 
unfair or deceptive acts or practices, including 
deceptive advertising and marketing to minors. 
(B) A description of the practices that the 
Secretary recommends qualifying bodies adopt 
to protect consumers. 
(C) Such recommendations as the Sec-
retary may have for legislative action as the 
Secretary considers necessary to protect con-
sumers with respect to Internet gambling. 
(D) Such other information as the Sec-
retary considers appropriate. 
SEC. 116. INDEPENDENT TESTING OF LICENSED OPERATOR 
EQUIPMENT. 
(a) REQUIREMENT.—The Secretary shall require 
independent testing of hardware, software, communica-
tions equipment, and other necessary devices for Internet 
gambling facilities to ensure the integrity, accountability, 
and randomness of play and network security. 
(b) DEFINITION.—For purposes of this section, the 
term ‘‘independent testing’’ means testing conducted by 
a scientific laboratory— 
(1) that is accredited by an intentional accredi-
tation body approved by the Secretary; 
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127 
(2) that is competent and qualified to scientif-
ically test and evaluate equipment, software, commu-
nications and functionality relating to the operation 
of an Internet gambling facility; and 
(3) that is not be owned or controlled by an 
Internet gambling facility, an electronic gaming 
equipment vendor, manufacturer, or retailer, or an 
Internet gaming operator. 
SEC. 117. INCLUSION OF AUTHORITY TO ADDRESS GAM-
BLING ADDICTION IN SAMHSA AUTHORITIES. 
Section 501(d) of the Public Health Service Act (42 
U.S.C. 290aa(d)) is amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(17); 
(2) by striking the period at the end of para-
graph (18) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(19) establish and implement programs for the 
identification, prevention, and treatment of patholog-
ical and other problem gambling.’’. 
SEC. 118. COMPILATION OF DATASETS ON PLAYER BEHAV-
IOR. 
The Secretary shall compile and make available to the 
public, on the Web site of the Department of the Treasury, 
datasets, with respect to Internet gambling, on player be-
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