IB
Union Calendar No. 356
107TH CONGRESS
2D SESSION
H. R. 3215
[Report No. 107–591, Part I]
To amend title 18, United States Code, to expand and modernize the
prohibition against interstate gambling, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 1, 2001
Mr. GOODLATTE (for himself, Mr. BOUCHER, Mr. SMITH of Texas, Ms. JACK-
SON-LEE of Texas, Mr. OXLEY, Mr. LAFALCE, Mr. LEACH, Mr. WOLF,
Mr. ROEMER, Mr. GIBBONS, Mr. BACHUS, Mrs. JO ANN DAVIS of Vir-
ginia, Mr. DUNCAN, Mr. FLETCHER, Mr. FORBES, Mr. GOODE, Mr.
GRAHAM, Mr. LEWIS of Kentucky, Mr. PITTS, Mr. ROGERS of Michigan,
Mr. SHADEGG, Mr. SWEENEY, Mr. TAUZIN, Mr. VITTER, Mr. WAMP, Mr.
PETERSON of Pennsylvania, Mrs. KELLY, and Mr. HASTINGS of Florida)
introduced the following bill; which was referred to the Committee on the
Judiciary
JULY 18, 2002
Reported with an amendment and referred to the Committee on Energy and
Commerce for a period ending not later than July 19, 2002, for consider-
ation of such provisions of the bill and amendment as fall within the ju-
risdiction of that committee pursuant to clause 1(f), rule X
[Strike out all after the enacting clause and insert the part printed in italic]
JULY 19, 2002
Additional sponsors: Mr. EHLERS, Mr. BALLENGER, Mr. TANCREDO, Mr.
STUMP, Mr. CALLAHAN, Mr. BROWN of South Carolina, Mr. CULBERSON,
Mr. BOEHLERT, Mr. LATOURETTE, Mr. COBLE, Mr. LIPINSKI, Mr.
DELAY, Mr. FOLEY, Mr. LAHOOD, Mr. BAKER, Mr. RILEY, Mr. EVER-
ETT, Mr. DEAL of Georgia, Mr. COLLINS, Mr. JOHNSON of Illinois, Mr.
REYNOLDS, Mr. COMBEST, Mr. TERRY, Mr. HANSEN, Mr. NETHERCUTT,
Ms. PRYCE
of Ohio, Mr. PENCE, Ms. HART, Mr. KELLER, Mr.
HOSTETTLER, Mr. PICKERING, Mr. AKIN, Mr. BASS, Mr. WICKER, Mrs.
NORTHUP, Mr. JEFF MILLER of Florida, Mr. CRENSHAW, Mr. MCINNIS,
Mr. BARTLETT of Maryland, Mrs. ROUKEMA, Mr. PETERSON of Min-
nesota, Mr. HORN, Mr. HERGER, Mr. MANZULLO, Mr. JONES of North
Carolina, Mr. THOMAS, Mr. QUINN, Mr. WALDEN of Oregon, Mr. NOR-
WOOD, Mr. SHIMKUS, Mrs. JOHNSON OF CONNECTICUT, MRS. CAPITO,
Mr. MCKEON, Mr. GILMAN, Mr. BOEHNER, Mr. DIAZ-BALART, Mrs.
NAPOLITANO, Mr. WALSH, Mr. GUTKNECHT, Mr. HAYES, Mr. GRUCCI,
Mr. ISAKSON, Mr. SCHROCK, Mrs. MYRICK, Mr. YOUNG of Alaska, Mr.
RYUN of Kansas, Mr. KING, Mr. GILLMOR, Mr. SOUDER, Mr. WATTS of
Oklahoma, Mr. WATKINS, Mr. SMITH of New Jersey, Mr. BERRY, Mr.
HOBSON, Mr. HYDE, Mr. CUNNINGHAM, Mr. STENHOLM, Mr. SHAW, Mr.
DEMINT, Mr. BEREUTER, Mr. SESSIONS, Mr. LARGENT, Mr. RAMSTAD,
Mr. MCCRERY, Mr. DAN MILLER of Florida, Mr. TAYLOR of North Caro-
lina, Mrs. EMERSON, Mr. FRELINGHUYSEN, Mr. TAYLOR of Mississippi,
Mr. GILCHREST, Mr. PRICE of North Carolina, Mr. SHUSTER, Mr. LEWIS
of California, Mr. REGULA, Mr. SIMMONS, Mr. ISTOOK, Mr. GOSS, Mr.
BARCIA, Mr. REHBERG, Mr. THORNBERRY, Mr. BURTON of Indiana, Mr.
WHITFIELD, Mr. HEFLEY, Mr. LUCAS of Kentucky, Mr. EDWARDS, Mr.
GANSKE, Mr. BILIRAKIS, Mr. CHAMBLISS, Mr. SAXTON, Mr. WELDON of
Florida, Mr. LINDER, Ms. DUNN, Mr. GEKAS, Mr. BRADY of Texas, Mr.
TIAHRT, Ms. ROS-LEHTINEN, Mr. COOKSEY, Mrs. MORELLA, Mr. TURN-
ER, Mr. SANDLIN, Mr. SPRATT, Mr. OSBORNE, Mr. NUSSLE, Mr. KEN-
NEDY of Minnesota, Mr. MCINTYRE, Mr. MORAN of Virginia, Mr. BARR
of Georgia, Mr. LATHAM, and Mr. PUTNAM
Deleted sponsors: Mr. GIBBONS (added November 1, 2001; deleted March 12,
2002), and Mr. GREEN of Wisconsin (added December 6, 2001; deleted
May 15, 2002)
JULY 19, 2002
Committee on Energy and Commerce discharged; committed to the Committee
of the Whole House on the State of the Union and ordered to be printed
[For text of introduced bill, see copy of bill as introduced on November 1, 2001]
A BILL
To amend title 18, United States Code, to expand and mod-
ernize the prohibition against interstate gambling, and
for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Combating Illegal Gam-
bling Reform and Modernization Act’’.
SEC. 2. DEFINITIONS.
Section 1081 of title 18, United States Code, is
amended—
(1) by designating the five undesignated para-
graphs that begin with ‘‘The term’’ as paragraphs (1)
through (5), respectively;
(2) in paragraph (5), as so designated—
(A) by striking ‘‘wire communication’’ and
inserting ‘‘communication’’;
(B) by inserting ‘‘satellite, microwave,’’
after ‘‘cable,’’; and
(C) by inserting ‘‘(whether fixed or mobile)’’
after ‘‘connection’’; and
(3) by adding at the end the following:
‘‘(6) The term ‘bets or wagers’—
‘‘(A) means the staking or risking by any
person of something of value upon the outcome of
a contest of others, a sporting event, or a game
predominantly subject to chance, not skill, upon
an agreement or understanding that the person
or another person will receive something of great-
er value than the amount staked or risked in the
event of a certain outcome;
‘‘(B) includes the purchase of a chance or
opportunity to win a lottery or other prize
(which opportunity to win is predominantly
subject to chance); and
‘‘(C) does not include—
‘‘(i) a bona fide business transaction
governed by the securities laws (as that
term is defined in section 3(a)(47) of the
Securities Exchange Act of 1934 (15 U.S.C.
78c(a)(47))) for the purchase or sale at a
future date of securities (as that term is de-
fined in section 3(a)(10) of the Securities
Exchange 
Act 
of 
1934 
(15 
U.S.C.
78c(a)(10)));
‘‘(ii) a transaction on or subject to the
rules of a contract market designated pursu-
ant to section 5 of the Commodity Exchange
Act (7 U.S.C. 7) or to any transaction sub-
ject to an exemption pursuant to section
4(c) of such Act;
‘‘(iii) any over-the-counter derivative
instrument;
‘‘(iv) a contract of indemnity or guar-
antee;
‘‘(v) a contract for life, health, or acci-
dent insurance;
‘‘(vi) participation in any game or
contest in which participants do not stake
or risk anything of value other than—
‘‘(I) personal efforts of the partici-
pants in playing the game or contest
or obtaining access to the Internet; or
‘‘(II) point or credits that the
sponsor of the game or contest provides
to participants free of charge and that
can be used or redeemed only for par-
ticipation in games or contests offered
by the sponsor; or
‘‘(vii) participation in any simulation
sports game or educational game or contest
in which (if the game or contest involves a
team or teams) all teams are fictional and
no team is a member of an amateur or pro-
fessional sports organization (as those terms
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
‘‘(bb) solely on any single
performance of an individual ath-
lete in any single real-world
sporting or other event.
‘‘(7) The term ‘gambling business’ means a busi-
ness of betting or wagering;