Internet Gambling Prohibition and Enforcement Act

Bill: 109-hr-4411
Sponsor: Rep. Leach, James A. [R-IA-2]
Introduced: 2005-11-18 in the House
Policy area: Finance and Financial Sector
Subjects: Administrative procedure
Bank loans
Checks
Civil actions and liability
Commerce
Computer crimes
Congress
Congressional reporting requirements
Consumer credit
Credit
Credit cards
Crime and Law Enforcement
Department of the Treasury
Electronic commerce
Electronic funds transfers
Financial institutions
Fines (Penalties)
Gambling
Government Operations and Politics
Indian lands
Injunctions
Interactive media
International Affairs
International cooperation
Internet
Law
Liability (Law)
Minorities
Money laundering
Native Americans
Science, Technology, Communications
Sports and Recreation
Web sites

Summary:
action_date: 2005-11-18
text: 
Unlawful Internet Gambling Enforcement Act of 2005 - Prohibits any person engaged in the business of betting or wagering from knowingly accepting on behalf of another person participating in Internet gambling: (1) credit; (2) electronic fund transfers or funds transmitted through money transmitting businesses; (3) any instrument payable through any financial institution; or (4) the proceeds of any other form of financial transaction involving a financial institution as payer or financial intermediary.
 
Directs the Secretary of the Treasury to prescribe regulations requiring each designated payment system and all participants in such system to establish policies and procedures to identify and block restricted transactions and to prevent acceptance of products and services of a payment system in connection with such transactions.
 
Grants federal district courts exclusive jurisdiction to prevent or restrain violations. Specifies requirements regarding relief granted against an interactive computer service. Provides that this Act shall not be construed as authorizing the Attorney General or a state official to institute proceedings to prevent or restrain a violation against a financial transaction provider with respect to that provider's designated payment system. Establishes liability for any financial transaction provider or any interactive computer service or telecommunications service that has actual knowledge and control of bets and wagers and that owns or operates an Internet website at which unlawful wagers are offered or may be made. 
Calls for the United States, in deliberations with foreign governments, to: (1) encourage cooperation in identifying whether Internet gambling operations are being used for money laundering or other crimes; (2) advance policies that promote international cooperation in enforcement; and (3) encourage the Financial Action Task Force on Money Laundering to study the extent to which Internet gambling operations are being used for money laundering purposes. 

action_date: 2006-04-06
text: 
Unlawful Internet Gambling Enforcement Act of 2006 - Amends the federal criminal code to prohibit persons engaged in the business of betting or wagering from knowingly accepting credit, electronic fund transfers, checks, drafts, or similar instruments, or the proceeds of any other financial transaction in connection with unlawful Internet gambling (this prohibition is defined by this Act as a &quot;restricted transaction&quot;).
 
Directs the Secretary of the Treasury and the Board of Governors of the Federal Reserve System to prescribe regulations to identify and block restricted transactions. Grants financial organizations immunity from civil liability for blocking transactions which they reasonably believe are restricted transactions.
 
Grants U.S. district courts original and exclusive jurisdiction to prevent and restrain restricted transactions. Authorizes the Attorney General or any state attorney general to institute proceedings to prevent or restrain a restricted transaction.
 
Imposes fines and/or a five-year term of imprisonment for violations of this Act. Authorizes a court to enter a permanent injunction prohibiting an individual convicted of a violation of this Act from engaging in betting or wagering activities.
 
Authorizes the prosecution of otherwise exempt financial transaction providers, interactive computer services, or telecommunications services that have actual knowledge and control of bets and wagers and that operate, or are controlled by an entity that operates, an unlawful Internet gambling site.
 
 Calls for the U.S. government, in deliberations with foreign governments, to: (1) encourage cooperation by foreign governments in identifying whether Internet gambling operations are being used for money laundering, corruption, or other crimes; (2) advance policies that promote international cooperation in enforcing this Act; and (3) encourage the Financial Action Task Force on Money Laundering to study the extent to which Internet gambling operations are being used for money laundering purposes. 
 
Directs the Secretary to report to Congress annually on deliberations between the United States and other countries on Internet gambling.

action_date: 2006-05-26
text: 
Unlawful Internet Gambling Enforcement Act of 2006 - Amends the federal criminal code to prohibit persons engaged in the business of betting or wagering from knowingly accepting credit, electronic fund transfers, checks, drafts, or similar instruments, or the proceeds of any other financial transaction in connection with unlawful Internet gambling (this prohibition is defined by this Act as a &quot;restricted transaction&quot;).

Directs the Secretary of the Treasury and the Board of Governors of the Federal Reserve System to prescribe regulations to identify and block restricted transactions and transmissions of wagering information. Grants financial organizations immunity from civil liability for blocking transactions which they reasonably believe are restricted transactions.

Grants U.S. district courts original and exclusive jurisdiction to prevent and restrain restricted transactions. Authorizes the Attorney General or any state attorney general to institute proceedings to prevent or restrain a restricted transaction.

Imposes fines and/or a five-year term of imprisonment for violations of this Act. Authorizes a court to enter a permanent injunction prohibiting an individual convicted of a violation of this Act from engaging in betting or wagering activities.

Authorizes the prosecution of otherwise exempt financial transaction providers, interactive computer services, or telecommunications services that have actual knowledge and control of bets and wagers and that operate, or are controlled by an entity that operates, an unlawful Internet gambling site.

 Calls for the U.S. government, in deliberations with foreign governments, to: (1) encourage cooperation by foreign governments in identifying whether Internet gambling operations are being used for money laundering, corruption, or other crimes; (2) advance policies that promote international cooperation in enforcing this Act; and (3) encourage the Financial Action Task Force on Money Laundering to study the extent to which Internet gambling operations are being used for money laundering purposes. 

Directs the Secretary to report to Congress annually on deliberations between the United States and other countries on Internet gambling.

action_date: 2006-07-11
text: 
Internet Gambling Prohibition and Enforcement Act - 
Title I: Modernization of the Wire Act of 1961 
- (Sec. 101) Amends the federal criminal code to expand the definition of &quot;wire communication facility&quot; (renamed &quot;communication facility&quot;) to include fixed or mobile (i.e., wireless) communication facilities.
 
Defines &quot;bets and wagers&quot; to include bets for contests, sporting events, games predominantly subject to chance, and lotteries. Excludes from such definition: (1) activities governed by securities laws: (2) transactions under the Commodity Exchange Act; (3) over-the-counter derivative instruments; (4) contracts of indemnity or guarantee; (4) contracts for life, health, or accident insurance; and (5) reward programs or contests conducted by businesses. 
 
(Sec. 102) Modifies existing prohibitions against interstate gambling to prohibit the use of a communication facility to transmit: (1) bets or wagers; (2) information assisting in the placing of bets or wagers; or (3) a communication which entitles the recipient to receive money or credit as a result of bets or wages or for information assisting in the placing of bets or wagers.
 
Prohibits any individual from accepting, in connection with the placing of bets or wagers to or from the United States: (1) credit, or the proceeds of credit; (2) electronic funds transfers; (3) checks, drafts, or similar instruments; or (4) the proceeds of any other form of financial transaction as prescribed by Treasury regulations.
 
Imposes a fine and/or prison term of up to five years for violations.
 
Requires any common carrier which receives notice of a violation of this Act by one of its communication facilities to discontinue or refuse service to such facility. Grants such common carrier immunity from liability for discontinuing or refusing such service. 
 
(Sec. 103) Grants U.S. district courts original and exclusive jurisdiction to prevent and restrain violations of the Internet gambling ban. Authorizes the Attorney General or any state attorney general to institute proceeding to enforce an Internet gambling ban. 
 
(Sec. 104) Authorizes appropriations to the Department of Justice in FY2007-FY2010 for investigations and prosecutions of unlawful Internet gambling. 
 
(Sec. 105) Declares that nothing in this Act may be construed to prohibit any activity allowed under the Interstate Horseracing Act or to preempt any state law prohibiting gambling.
 
(Sec. 106) Expresses the sense of Congress that this Act does not address the legality of certain horse racing activities under federal law. 
 

Title II: Policies and Procedures Required to Prevent Payments for Unlawful Gambling
 - Amends the federal criminal code to prohibit persons engaged in a gambling business from knowingly accepting credit, electronic fund transfers, checks, drafts, or similar financial instruments or the proceeds of any other financial transaction in connection with unlawful Internet gambling (this prohibition is defined by this Act as a &quot;restricted transaction&quot;). 
 
Directs the Secretary of the Treasury and the Board of Governors of the Federal Reserve System to prescribe regulations to identify and block restricted transactions. Grants immunity from civil liability for blocking a restricted transaction or one which is reasonably believed to be a restricted transaction.
 

Title III: Internet Gambling in or through Foreign Jurisdictions 
- Calls upon the U.S. government, in deliberations with foreign governments, to: (1) encourage cooperation by foreign governments in identifying whether Internet gambling operations are being used for money laundering, corruption, or other crimes; (2) advance policies that promote international cooperation in enforcing this Act; and (3) encourage the Financial Action Task Force on Money Laundering to study the extent to which Internet gambling operations are being used for money laundering purposes. 
 
Directs the Secretary of the Treasury to report to Congress annually on deliberations between the United States and other countries on Internet gambling.


Legislative actions:
action_date: 2006-07-13
text: Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 519.
action_date: 2006-07-12
text: Received in the Senate. Read the first time. Placed on Senate Legislative Calendar under Read the First Time.
action_date: 2006-07-11
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2006-07-11
text: On passage Passed by recorded vote: 317 - 93 (Roll no. 363). (text: CR H4980-4983)
action_date: 2006-07-11
text: Passed/agreed to in House: On passage Passed by recorded vote: 317 - 93 (Roll no. 363).(text: CR H4980-4983)
action_date: 2006-07-11
text: On motion to recommit with instructions Failed by recorded vote: 167 - 243 (Roll no. 362).
action_date: 2006-07-11
text: The previous question on the motion to recommit with instructions was ordered without objection. (consideration: CR H5007)
action_date: 2006-07-11
text: DEBATE - The House proceeded with 10 minutes of debate on the Conyers motion to recommit with instructions. The instructions contained in the motion seek to require the bill to be reported back with an amendment which inserts a new section outlining a rule to protect against under-age gambling.
action_date: 2006-07-11
text: Mr. Conyers moved to recommit with instructions to Judiciary. (consideration: CR H5006-5008; text: CR H5006)
action_date: 2006-07-11
text: UNFINISHED BUSINESS - The Chair announced that the unfinished business was the question of adoption of the amendment offered by Ms. Berkely of Nevada, which had been debated earlier and on which further proceedings had been postponed.
action_date: 2006-07-11
text: Considered as unfinished business. (consideration: CR H5005-5008)
action_date: 2006-07-11
text: POSTPONED PROCEEDINGS - At the conclusion of debate on the Berkley amendment, the Chair put the question on adoption of the amendment and by voice vote, announced that the noes had prevailed. Ms. Berkley demanded the yeas and nays and the Chair postponed further proceedings on the question of adoption of the amendment until later in the legislative day.
action_date: 2006-07-11
text: DEBATE - Pursuant to H. Res. 907, the House proceeded with 20 minutes of debate on the Berkley amendment.
action_date: 2006-07-11
text: DEBATE - The House proceeded with one hour of debate on H.R. 4411.
action_date: 2006-07-11
text: Rule provides for consideration of H.R. 4411 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. A specified amendment is in order.
action_date: 2006-07-11
text: Considered under the provisions of rule H. Res. 907. (consideration: CR H4978-5001; text of measure as introduced: CR H4978-4980)
action_date: 2006-07-11
text: Rule H. Res. 907 passed House.
action_date: 2006-07-10
text: Rules Committee Resolution H. Res. 907 Reported to House. Rule provides for consideration of H.R. 4411 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. A specified amendment is in order.
action_date: 2006-05-26
text: Placed on the Union Calendar, Calendar No. 267.
action_date: 2006-05-26
text: Reported (Amended) by the Committee on Judiciary. H. Rept. 109-412, Part II.
action_date: 2006-05-26
text: Reported (Amended) by the Committee on Judiciary. H. Rept. 109-412, Part II.
action_date: 2006-05-25
text: Ordered to be Reported (Amended) by Voice Vote.
action_date: 2006-05-25
text: Committee Consideration and Mark-up Session Held.
action_date: 2006-04-06
text: Referred sequentially to the House Committee on the Judiciary for a period ending not later than May 26, 2006 for consideration of such provisions of the bill and amendment as fall within the jurisdiction of that committee pursuant to clause 1(l), rule X.
action_date: 2006-04-06
text: Reported (Amended) by the Committee on 109-412, Part I.
action_date: 2006-04-06
text: Reported (Amended) by the Committee on 109-412, Part I.
action_date: 2006-03-15
text: Ordered to be Reported (Amended) by Voice Vote.
action_date: 2006-03-15
text: Committee Consideration and Mark-up Session Held.
action_date: 2006-01-05
text: Referred to the Subcommittee on Financial Institutions and Consumer Credit.
action_date: 2005-11-18
text: Referred to the House Committee on Financial Services.
action_date: 2005-11-18
text: Introduced in House
action_date: 2005-11-18
text: Introduced in House