I 
108TH CONGRESS 
1ST SESSION H. R. 1223
To create a commission on Internet gambling licensing and regulation. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 12, 2003
Mr. CONYERS (for himself, Mr. CANNON, Ms. BERKLEY, and Mr. BACA) intro-
duced the following bill; which was referred to the Committee on the Ju-
diciary, and in addition to the Committees on Energy and Commerce, and 
Financial Services, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To create a commission on Internet gambling licensing and 
regulation.
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 shall be known as the ‘‘Internet Gambling 
Licensing and Regulation Commission Act’’. 
SEC. 2. FINDINGS AND POLICY. 
The Congress finds the following: 
(1) Gambling is regulated primarily by State 
and tribal governments, whose statutes and regula-
(7) Online gaming should be subject to the con-
sumer protection laws of the United States. 
(8) Various forms of gambling, including inter 
alia, casino-style, sports wagering, parimutuel wa-
gering (including horse racing, dog racing, and jai 
alai), State lotteries, noncasino slot machines and 
others, are subject to disparate Federal, State, and 
tribal laws and regulations. 
(9) Because of the nature of the Internet, legis-
lative attempts to prohibit Internet gambling are un-
likely to be effective, and may adversely impact 
American’s rights to due process and individual pri-
vacy. 
(10) It is the policy of the Congress in this Act 
to establish a commission to study and resolve issues 
posed by the regulation of interstate commerce with 
respect to Internet gambling. 
SEC. 3. INTERNET GAMBLING LICENSING AND REGULA-
TION STUDY COMMISSION. 
(a) ESTABLISHMENT OF COMMISSION.—There is es-
tablished a commission to be known as the Internet Gam-
bling Licensing and Regulation Study Commission (here-
inafter referred to in this Act as the ‘‘Commission’’). The 
Commission shall—
(1) be composed of 5 members appointed in ac-
cordance with subsection (b); and 
(2) conduct its business in accordance with the 
provisions of this Act. 
(b) MEMBERSHIP.—
(1) IN GENERAL.—The Commissioners shall be 
appointed for the life of the Commission as follows: 
(A) 1 shall be appointed by the Speaker of 
the House of Representatives. 
(B) 1 shall be appointed by the Minority 
Leader of the House of Representatives. 
(C) 1 shall be appointed by the Majority 
Leader of the Senate. 
(D) 1 shall be appointed by the Minority 
Leader of the Senate. 
(E) The 4 commissioners appointed in sub-
paragraphs (A), (B), (C), and (D) shall select 
by consensus the fifth Commissioner, who shall 
be the Chairman of the Commission. 
(2) PERSONS ELIGIBLE.—The members of the 
Commission shall be individuals who have knowledge 
or expertise, whether by experience or training, in 
matters to be studied by the Commission under sec-
tion 4. The members may be from the public or pri-
vate sector, and may include Federal, State, local, or
Native American tribal officers or employees, mem-
bers of academia, nonprofit organizations, industry, 
or other interested individuals. 
(3) CONSULTATION
REQUIRED.—The Speaker 
of the House of Representatives, the Minority Lead-
er of the House of Representatives, the Majority 
Leader of the Senate, and the Minority Leader of 
the Senate shall consult among themselves prior to 
the appointment of the members of the Commission 
in order to achieve, to the maximum extent possible, 
fair and equitable representation of various points of 
view with respect to the matters to be studied by the 
Commission under section 4. 
(4) COMPLETION
OF
APPOINTMENTS; VACAN-
CIES.—The Speaker of the House of Representa-
tives, the Minority Leader of the House of Rep-
resentatives, the Majority Leader of the Senate, and 
the Minority Leader of the Senate shall conduct the 
consultation required under paragraph (3) and shall 
each make their respective appointments not later 
than 60 days after the date of enactment of this 
Act. Any vacancy that occurs during the life of the 
Commission shall not affect the powers of the Com-
mission, and shall be filled in the same manner as
the original appointment not later than 60 days 
after the vacancy occurs. 
(5) OPERATION OF THE COMMISSION.—
(A) MEETINGS.—The Commission shall 
meet at the call of the Chairman. The initial 
meeting of the Commission shall be conducted 
not later than 30 days after the appointment of 
the last member of the Commission, or not later 
than 30 days after the date on which appro-
priated funds are available for the Commission, 
whichever is later. 
(B) QUORUM; VOTING; RULES.—A major-
ity of the members of the Commission shall 
constitute a quorum to conduct business, but 
the Commission may establish a lesser quorum 
for conducting hearings scheduled by the Com-
mission. Each member of the Commission shall 
have 1 vote, and the vote of each member shall 
be accorded the same weight. The Commission 
may establish by majority vote any other rules 
for the conduct of the Commission’s business, if 
such rules are not inconsistent with this Act or 
other applicable law. 
SEC. 4. DUTIES OF THE COMMISSION. 
(a) STUDY.—
(1) IN GENERAL.—It shall be the duty of the 
Commission to conduct a comprehensive study of the 
existing legal framework governing Internet gam-
bling and the issues involved with the licensing and 
regulation of Internet gambling. 
(2) MATTERS TO BE STUDIED.—The matters 
studied by the Commission under paragraph (1) 
shall include, but not be limited to—
(A) a review of existing international, Fed-
eral, State, tribal, and local laws governing var-
ious forms of wagering over the Internet, the 
effectiveness of those laws, and their conformity 
with each other; 
(B) an assessment of the impact of Inter-
net gambling with respect to problem gambling; 
(C) an assessment of the impact of Inter-
net gambling on the availability of gambling to 
minors; 
(D) an assessment of the susceptibility of 
Internet gambling to money laundering by ter-
rorists or criminal enterprises; 
(E) the potential of regulatory measures to 
minimize any adverse impacts of Internet gam-
bling, including the problems identified in sub-
paragraphs (B), (C), and (D);
(F) an evaluation of the personal use of 
credit, credit cards, electronic fund transfers, 
and bank instruments to fund the engagement 
in Internet gambling, including an assessment 
of the potential of these means to minimize any 
adverse impacts of Internet gambling, including 
the problems identified in subparagraphs (B), 
(C), and (D); 
(G) issues of federalism posed by the regu-
lation of Internet gambling, and the reconcili-
ation of a state-based legal framework with an 
inherently interstate and international medium 
such as the Internet; 
(H) the problems of unregulated inter-
national Internet wagering, and options for the 
Federal Government to seek international co-
operation in the licensing and regulation of 
such gambling; and 
(I) an assessment of the activities in the 
European Union member states to regulate and 
license Internet gambling. 
(b) REPORT.—Not later than 1 year after the date 
on which the Commission first meets, the Commission 
shall submit to the President, the Congress, State Gov-
ernors, and Native American tribal governments a com-
prehensive report on the Commission’s findings and con-
clusions. 
(c) RECOMMENDATIONS.—Not later than 6 months 
after the submission of the report under subsection (b) 
the Commission shall issue proposed changes to Federal 
laws and regulations to provide for the licensing and regu-
lation of Internet gambling in the United States. These 
proposals shall—
(1) preserve the prerogatives of States with re-
spect to intrastate gambling and wagering within 
their borders, and the further prerogative of States 
to regulate the placement and acceptance of online 
wagers by their citizens, including to adopt measures 
to prevent wagering by individuals in States where 
all gambling is illegal; 
(2) include measures to minimize adverse im-
pacts of Internet gambling, including—
(A) measures to prevent minors from gam-
bling online; 
(B) measures to prevent the use of Inter-
net gambling as a money laundering channel 
for terrorists and criminal enterprises; and 
(C) measures to identify, and where pos-
sible, provide assistance to problem gamblers 
online;
(3) preserve tribal sovereignty with respect to 
gaming and Internet gaming in a manner consistent 
with the decision of the Supreme Court of the 
United States in California v. Cabazon Band of Mis-
sion Indians, 480 U.S. 202, 107 S. Ct. 1083 (1987); 
(4) clarify and harmonize the Federal laws gov-
erning gambling as they apply to Internet gambling, 
and eliminate the disparate treatment of various 
forms of Internet gambling, except in cases where 
the disparity serves a compelling State interest; 
(5) provide for the appropriate taxation of 
Internet gambling enterprises; 
(6) provide for the licensing of enterprises both 
within the United States and outside of its borders; 
(7) consider and, where possible, remain con-
sistent with the goals, principles, and obligations of 
the United States in other international negotiations 
governing electronic commerce; and 
(8) include measures to discourage, prohibit, or 
prevent United States citizens from wagering with 
unlicensed Internet gambling operations outside of 
the United States. 
SEC. 5. POWERS OF THE COMMISSION. 
(a) HEARINGS.—
(1) IN GENERAL.—The Commission may hold 
such hearings, sit and act at such times and places, 
administer such oaths, take such testimony, and re-
ceive such evidence as the Commission considers ad-
visable to carry out its duties under section 4. 
(2) WITNESS EXPENSES.—Witnesses requested 
to appear before the Commission shall be paid the 
same fees as are paid to witnesses under section 
1821 of title 28, United States Code. The per diem 
and mileage allowances for witnesses shall be paid 
from funds appropriated to the Commission. 
(b) SUBPOENAS.—
(1) IN GENERAL.—If a person fails to supply 
information requested by the Commission, the Com-
mission may by majority vote require by subpoena 
the production of any written or recorded informa-
tion, document, report, answer, record, account, 
paper, computer file, or other data or documentary 
evidence necessary to carry out its duties under sec-
tion 4. The Commission shall transmit to the Attor-
ney General a confidential, written notice at least 10 
days in advance of the issuance of any such sub-
poena. A subpoena under this paragraph may re-
quire the production of materials from any place 
within the United States.
(2) INTERROGATORIES.—The Commission may, 
with respect only to information necessary to under-
stand any materials obtained through a subpoena 
under paragraph (1), issue a subpoena requiring the 
person producing such materials to answer, either 
through a sworn deposition or through written an-
swers provided under oath (at the election of the 
person upon whom the subpoena is served), to inter-
rogatories from the Commission regarding such in-
formation. A complete recording or transcription 
shall be made of any deposition made under this 
paragraph. 
(3) CERTIFICATION.—Each person who submits 
materials or information to the Commission pursu-
ant to a subpoena issued under paragraph (1) or (2) 
shall certify to the Commission the authenticity and 
completeness of all materials or information sub-
mitted. The provisions of section 1001 of title 18, 
United States Code, shall apply to any false state-
ments made with respect to the certification required 
under this paragraph. 
(4) TREATMENT
OF
SUBPOENAS.—Any sub-
poena issued by the Commission under paragraph 
(1) or (2) shall comply with the requirements for
subpoenas issued by a United States district court 
under the Federal Rules of Civil Procedure. 
(5) FAILURE TO OBEY A SUBPOENA.—If a per-
son refuses to obey a subpoena issued by the Com-
mission under paragraph (1) or (2), the Commission 
may apply to a United States district court for an 
order requiring that person to comply with such sub-
poena. The application may be made within the judi-
cial district in which that person is found, resides, 
or transacts business. Any failure to obey the order 
of the court may be punished by the court as civil 
contempt. 
(c) INFORMATION FROM FEDERAL AGENCIES.—The 
Commission may secure directly from any Federal depart-
ment or agency such information as the Commission con-
siders necessary to carry out its duties under section 4. 
Upon the request of the Commission, the head of such 
department or agency may furnish such information to the 
Commission. 
(d) INFORMATION TO BE KEPT CONFIDENTIAL.—
The Commission shall be considered an agency of the Fed-
eral Government for purposes of section 1905 of title 18, 
United States Code, and any individual employed by an 
individual, entity, or organization under contract to the 
Commission under section 7 shall be considered an em-