113 HR 2282 IH: Internet Gambling Regulation, Enforcement, and Consumer Protection Act of 2013
U.S. House of Representatives
2013-06-06
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of
contents
(a)This Act may be cited as the Internet Gambling Regulation, Enforcement, and Consumer
Protection Act of 2013
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Title I—INTERNET GAMBLING REGULATION AND CONSUMER PROTECTION
Sec. 101. Findings.
Sec. 102. Definitions.
Sec. 103. Prohibition on operation of internet gambling
facilities.
Sec. 104. Office of Internet Gambling Oversight.
Sec. 105. Qualified bodies.
Sec. 106. Establishment of licensing program for internet
gambling.
Sec. 107. Compulsive gaming, responsible gaming, and
self-exclusion program requirements.
Sec. 108. Prohibition on use of licenses in certain States and
Indian lands.
Sec. 109. Prohibition on bets or wagers on sporting
events.
Sec. 110. Public internet gambling and internet gambling
parlors prohibited.
Sec. 111. Safe harbor.
Sec. 112. Cheating and other fraud.
Sec. 113. Construction and relation to other law.
Sec. 114. Orderly transition.
Sec. 115. Annual reports.
Sec. 116. Independent testing of licensed operator
equipment.
Sec. 117. Inclusion of authority to address gambling addiction
in samhsa authorities.
Sec. 118. Compilation of datasets on player
behavior.
Sec. 119. Effective date.
Title II—ENFORCEMENT UNDER TITLES 18 AND 31, UNITED STATES
CODE
Sec. 201. Financial service providers.
Sec. 202. Amendments relating to illegal gambling
businesses.
Sec. 203. Further amendments to subchapter IV of chapter 53 of
title 31, United States Code.
Sec. 204. Bettor forfeiture.
Sec. 205. Regulations.
Sec. 206. Conforming amendment.
Title III—OTHER MATTERS
Sec. 301 Severability.
<enum>I</enum><header>INTERNET GAMBLING
REGULATION AND CONSUMER PROTECTION </header>
<section id="HE192A062DD134D82BD75900A1176DE67"><enum>101.</enum><header>Findings</header>
<subsection id="HDF200CAEB3B04DD0B6FD7AA464FB07DD"><enum>(a)</enum><header>Findings</header><text>Congress
makes the following findings:</text>
<paragraph id="H55EDAB9E23BB4CAFA2A77C7744DC9EBC"><enum>(1)</enum><text>Since the
development of the Internet, Internet sites offering Internet gambling have
raised consumer protection and enforcement concerns for Federal and State
governments as such Internet sites are often run by unknown operators located
in many different countries, subject to little or no oversight, and have sought
to attract customers from the United States.</text>
</paragraph><paragraph id="H37ED5AFB77A340A288DD1797B677D4AA"><enum>(2)</enum><text display-inline="yes-display-inline">Subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/53">chapter 53</external-xref> of title 31,
United States Code, which was added by the enactment of the Unlawful Internet
Gambling Enforcement Act of 2006 (title VIII of <external-xref legal-doc="public-law" parsable-cite="pl/109/347">Public Law 109–347</external-xref>; 120 Stat.
1952), makes it a Federal crime for gambling businesses to knowingly accept
most forms of payment in connection with the participation of another person in
unlawful Internet gambling. Since the enactment of the Unlawful Internet
Gambling Enforcement Act of 2006, such subchapter IV has helped aid enforcement
efforts against unlawful Internet gambling operators and to limit unlawful
Internet gaming involving United States persons.</text>
</paragraph><paragraph id="HEDED44A28DBF437A8A7147A5FDFBC683"><enum>(3)</enum><text display-inline="yes-display-inline">In 2006, Congress enacted the Unlawful
Internet Gambling Enforcement Act, which prohibited the acceptance or
processing of financial instruments for the purpose of unlawful Internet
gambling, but which did not clarify which bets or wagers are prohibited by law.
Groups such as the National District Attorneys Association and the Fraternal
Order of Police have expressed support for a law that clearly prohibits all
unlicensed Internet gambling. Enacting such a law will aid law enforcement,
prosecutors and courts in their efforts to curtail unlawful Internet
gambling.</text>
</paragraph><paragraph id="HF9886917F3BE46698963C91A9E51B424"><enum>(4)</enum><text>On December 23,
2011, the Department of Justice released a memorandum opinion of the Office of
Legal Counsel dated September 20, 2011, that construed section 1084 of title
18, United States Code (referred to as the <quote>Wire Act</quote>), to apply
only to sports-related gambling activities in interstate and foreign commerce,
with the result that non-sports related Internet gambling in the United States
has been found not to be prohibited under Federal law if it is lawful under
State law.</text>
</paragraph><paragraph id="H7228E5FC94A447639F7773BEEDF1D34C"><enum>(5)</enum><text>A
growing number of States and Indian tribes have legalized or are considering
legalizing and promoting Internet gambling to generate revenue. Absent Federal
limitations and enforcement, State regulation of Internet gambling, including
consumer safeguards, could vary widely from State to State, and States could
have difficulty enforcing Internet gambling restrictions within their borders,
especially against out-of-State operators.</text>
</paragraph><paragraph id="H205D11C9B8864C1DABAC97F0B204ED09"><enum>(6)</enum><text>A
number of States have authorized or are considering authorizing Internet
purchases of lottery subscriptions or other lottery games to generate revenue,
which should not be prevented by Federal law.</text>
</paragraph><paragraph id="H5732D008A46E4BB7A3F07605D27E2498"><enum>(7)</enum><text>Federal law needs
to be updated to make clear its relationship to Internet gambling to strengthen
enforcement and to ensure an effective Internet gambling enforcement structure
that protects consumers and the ability of States to enforce State laws
relating to Internet gambling.</text>
</paragraph><paragraph id="HD81AFA7A87A14B6681A39D7D39710777"><enum>(8)</enum><text>Since the passage
of the Professional and Amateur Sports Protection Act (<external-xref legal-doc="public-law" parsable-cite="pl/102/559">Public Law 102–559</external-xref>) in
1992, which added chapter 178 to title 28, United States Code, such chapter has
played an important and effective role in implementing longstanding Federal
policy against gambling on professional, scholastic, and amateur sporting
events.</text>
</paragraph><paragraph id="H9837F77F15BC4D99ABC743DBA7938C28"><enum>(9)</enum><text>Additional tools
to assist law enforcement, banks and financial transaction providers, and
Internet service providers in the prevention of unlawful Internet gambling
activities would be important and beneficial. Maintenance of a list of licensed
Internet gambling operators would provide a level of certainty as to permitted
transactions and law enforcement efforts.</text>
</paragraph><paragraph id="H56A7A7B43B35419CA42C35FB3D0F7E7D"><enum>(10)</enum><text>Internet
gambling, like much other Internet commerce, traverses State boundaries. Any
particular transaction may cross a number of State boundaries from origin to
destination, and communications between the same parties at different times may
travel along markedly different routes, based on factors such as traffic, load
capacity, and other technical considerations outside the control of sender and
recipient. For that reason, among others, the Federal courts consistently have
ruled that the Internet is an instrumentality and channel of interstate
commerce and, as such, is subject to Congress’s plenary authority. For these
same reasons, Internet gambling by its very nature implicates Federal concerns,
and is different in kind and effect from traditional gambling activity.</text>
</paragraph><paragraph id="H34E64B71CEB64AC2A13AE434DED75164"><enum>(11)</enum><text>A Federal regime
to regulate Internet gambling and to protect consumers should include an
effective framework—</text>
<subparagraph id="H0821C36F14214B7EB3F96CCF184C59E2"><enum>(A)</enum><text>to prevent
underage wagering and otherwise to protect vulnerable individuals;</text>
</subparagraph><subparagraph id="id5FF1500C09F4409B87D254780741CDFA"><enum>(B)</enum><text>to ensure the
games are fair and are conducted honestly;</text>
</subparagraph><subparagraph id="H2C52638AC35646A98B4F12A36A6C2377"><enum>(C)</enum><text>to ensure that
States and Indian tribes that wish to prohibit Internet gambling may do
so;</text>
</subparagraph><subparagraph id="H32B0C9B36A534A8DBF37BCB721CA4965"><enum>(D)</enum><text>to promote the
ability of State and Tribal lotteries to generate revenue for the jurisdictions
that license them; and</text>
</subparagraph><subparagraph id="H834284595D7549B8A017D193E69B8187"><enum>(E)</enum><text>to facilitate the
enforcement of Federal, State, and tribal laws against unauthorized Internet
gambling.</text>
</subparagraph></paragraph><paragraph id="H1B7C6B2D40D946219CE1DE6489343BAC"><enum>(12)</enum><text>To avoid uneven
treatment of Internet gambling and land-based gambling and the risk of
discrimination against existing land-based gambling operations and States that
have authorized gambling, a Federal regime to regulate Internet gambling should
contain revenue measures sufficient to ensure that Internet gambling activities
generate at least equivalent revenues for the Federal Government and the States
combined as they would generate if the gambling was carried out at land-based
operations.</text>
</paragraph><paragraph id="H84FD0D1AD2B244CE97BCBF4CC625C848"><enum>(13)</enum><text>Federal
regulation of Internet gambling should be designed and implemented to foster a
level-playing field among all forms of traditional gambling and all types of
Internet gambling operators, including casinos, Indian tribes offering gambling
services, State-licensed lotteries, horseracing, and any other form of gambling
that is not sports-related, as well as among Internet companies with relevant
expertise in e-commerce who meet the same qualifications as traditional casinos
for integrity and for the capacity to carry out Internet gambling operations
that meet applicable Federal and State standards.</text>
</paragraph></subsection></section><section id="H4A01FF663ECE427DB9FB2B4B2353F02C"><enum>102.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph id="HEAA66571AEE64C07AE37B762D0007B05"><enum>(1)</enum><header>Applicant</header><text>The
term <quote>applicant</quote> means any person who has applied for a license
under this title.</text>
</paragraph><paragraph id="H51670FF8CEDD41C2A357242A6D5AC83B"><enum>(2)</enum><header>Bet or
wager</header>
<subparagraph id="H8B0FD6D9831D4CF29D037738F3B66182"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), the term
<quote>bet or wager</quote> has the meaning given the term in section 5362 of
title 31, United States Code.</text>
</subparagraph><subparagraph id="H41D9F6E6670640A88FADC6EBEC757040"><enum>(B)</enum><header>Exception</header><text>The
term <quote>bet or wager</quote> does not include the following:</text>
<clause id="H10CD4D2B273E467184F10ECF681EB4F6"><enum>(i)</enum><text>A
bet or wager that is permissible under the Interstate horseracing Act of 1978
(<external-xref legal-doc="usc" parsable-cite="usc/15/3001">15 U.S.C. 3001 et seq.</external-xref>).</text>
</clause><clause id="HE3C9AD4CCCFC419598A67E022FFB60D0"><enum>(ii)</enum><text>A
qualifying intrastate lottery transaction.</text>
</clause></subparagraph></paragraph><paragraph id="H4202C84FF4B94EF292F219162B424EAC"><enum>(3)</enum><header>Casino
gaming</header>
<subparagraph id="H167168568EB64F5BBAED5ADDE311CAC5"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), the term
<quote>casino gaming</quote> means the full range of casino gaming activity
licensed by regulatory bodies of States or Indian tribes that would be
qualified as class III gaming under section 4 of the Indian Gaming Regulatory
Act (<external-xref legal-doc="usc" parsable-cite="usc/25/2703">25 U.S.C. 2703</external-xref>) if that Act were applicable to the gaming.</text>
</subparagraph><subparagraph id="H76AA2CAE6A3B4352AC56968CE5FC47DC"><enum>(B)</enum><header>Exception</header><text>The
term <quote>casino gaming</quote> does not include lotteries of States or
Indian tribes in compliance with the law of that State or Indian tribe, as
applicable, and which solely provide lottery tickets to participants wholly
within the boundaries of such State or the Indian lands of such Indian
tribe.</text>
</subparagraph></paragraph><paragraph id="H58DBF89BFD7547079C69472D28FC20F3"><enum>(4)</enum><header>Gaming
device</header>
<subparagraph id="H36B42E523B284638AF74E2681173CB9E"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), the term
<quote>gaming device</quote> means any computer-based gambling machine,
including slot machines and video lottery terminals that have been approved by
a gaming regulatory authority of a State or Indian tribe.</text>
</subparagraph><subparagraph id="H33E0D7DBACFE4942A1E95A4304BCE22F"><enum>(B)</enum><header>Exception</header><text>The
term <quote>gaming device</quote> does not include machines that process bets
or wagers for pari-mutuel betting pools.</text>
</subparagraph></paragraph><paragraph id="H18813C83EABA48A5AC692C2F025072D5"><enum>(5)</enum><header>Indian lands and
Indian tribe</header><text>The terms <quote>Indian lands</quote> and
<quote>Indian tribe</quote> have the meaning given the terms in section 4 of
the Indian Gaming Regulatory Act (<external-xref legal-doc="usc" parsable-cite="usc/25/2703">25 U.S.C. 2703</external-xref>).</text>
</paragraph><paragraph id="H5E73539B19EB403EB5A5D56EA8BF85BF"><enum>(6)</enum><header>Internet</header><text>The
term <quote>Internet</quote> has the meaning given the term in section 5362 of
title 31, United States Code.</text>
</paragraph><paragraph id="HC44AFC6B628241E09388FE6EB8FF27D5"><enum>(7)</enum><header>Internet
gambling facility</header><text display-inline="yes-display-inline">The term
<quote>Internet gambling facility</quote> means an Internet website, or similar
communications facility in which transmissions may cross State boundaries,
through which a bet or wager is initiated, received, or otherwise made, whether
transmitted by telephone, Internet, satellite, or other wire or wireless
communication facility, service, or medium, including an Internet gambling
facility not operating under a license in good standing issued under this
title, including any facility that facilitates qualifying intrastate lottery
transactions to the degree that such facility facilitates such
transactions.</text>
</paragraph><paragraph id="H67BCFF25169349218125005B6EC4A685"><enum>(8)</enum><header>Licensee</header><text>The
term <quote>licensee</quote> means a person who operates an Internet gambling
facility under a license issued by a qualified body pursuant to this
title.</text>
</paragraph><paragraph id="H7CF49C788F584FDB9EB3AF3713500FFB"><enum>(9)</enum><header>Live
racing</header><text>The term <quote>live racing</quote> means, with respect to
a physical race track, the conduct of live thoroughbred horse races at such
race track and does not include any races simulcasted from a separate race
track.</text>
</paragraph><paragraph id="HAE4B7A0148AB42C0AE5786F90EC1FB33"><enum>(10)</enum><header>Operate an
internet gambling facility</header><text>The term <quote>operate an Internet
gambling facility</quote> means to conduct, direct, manage, own, supervise, or
control an Internet gambling facility.</text>
</paragraph><paragraph id="H9527C2FFFCA94330900CE78D6599213A"><enum>(11)</enum><header>Person</header><text>The
term <quote>person</quote> means a natural person, corporation, casino gambling
facility, or race track, an Internet gambling facility, an Internet poker
facility, a State or State agency, or an Indian tribe or corporation, agency,
or instrumentality of an Indian tribe.</text>
</paragraph><paragraph id="HDA7A84FCE4424AC8833CE5AB3AD203FA"><enum>(12)</enum><header>Qualified
body</header><text>The term <quote>qualified body</quote> means the
following:</text>
<subparagraph id="H0FDC23458B1B452AB3E859B68F6BC1A0"><enum>(A)</enum><text>The Office of
Internet Gambling Oversight established under section 104(a) and designated
under section 105(a)(2).</text>
</subparagraph><subparagraph id="HCCCC933C235949B3AD38CD1C98457F62"><enum>(B)</enum><text>Any State agency
or regulatory body of an Indian tribe that has been designated as a qualified
body under paragraph (1) or (3) of section 105(a).</text>
</subparagraph></paragraph><paragraph id="H43169FCCD7984FBD87669BFEDDFD3D1C"><enum>(13)</enum><header>Qualified race
track</header><text>The term <quote>qualified race track</quote> means a race
track that has been licensed by a regulatory authority of a State or Indian
tribe.</text>
</paragraph><paragraph id="H65418ACF1C7843FE81E5FA67AA0C4119"><enum>(14)</enum><header>Qualifying
intrastate lottery</header><text display-inline="yes-display-inline">The term
<quote>qualifying intrastate lottery</quote> means a lottery or other prize,
through the purchase of a chance or opportunity to win, that is offered by a
State or Indian tribe—</text>
<subparagraph id="H0A2E9AC2C8BB42E39797BEEF760E6EA5"><enum>(A)</enum><text>that is operating
lawfully under the laws of that State or Indian tribe, as the case may
be;</text>
</subparagraph><subparagraph id="H9D16244BCA0B4C14849CE31DFD588CAB"><enum>(B)</enum><text>that is not
related to a sporting event;</text>
</subparagraph><subparagraph id="H9D1D0402C9D34FBA95E6FCEED6A4C253"><enum>(C)</enum><text display-inline="yes-display-inline">in which the opportunity to win is
predominately subject to chance; and</text>
</subparagraph><subparagraph id="H4AF6A332C90E4FF8ADC3A3236901AABD"><enum>(D)</enum><text>that provides the
chances or opportunity to win for purchase to participants only within the
boundaries of that State or the Indian lands of that Indian tribe, as the case
may be.</text>
</subparagraph></paragraph><paragraph id="H6FAE83BF90584A41B77489B19DD8C72C"><enum>(15)</enum><header>Qualifying
lottery transaction</header><text>The term <quote>qualifying lottery
transaction</quote> means the purchase of a chance or opportunity to win a
lottery or other prize offered by a State lottery, operating lawfully under the
laws of a State or Indian tribe, that is not sports-related and—</text>
<subparagraph id="HF113F05E0BD24D0C88F96112EEEE1D19"><enum>(A)</enum><text>which opportunity
to win is predominantly subject to chance; and</text>
</subparagraph><subparagraph id="H53503F5B11D84FF89D680200D1A86355"><enum>(B)</enum><text>which is
authorized by a State or Indian tribe.</text>
</subparagraph></paragraph><paragraph id="HA583FE5210914FA486E25BF62B54E61A"><enum>(16)</enum><header>Remote gaming
equipment</header>
<subparagraph id="H79CF70BE8454493CA764968A62FE1CF6"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), the term
<quote>remote gaming equipment</quote> means electronic or other equipment
principally used by or on behalf of an operator of an Internet gambling
facility, including by any significant vendor to such operator, to—</text>
<clause id="HCD402C52EAF1404EBCCA05C8B24F6470"><enum>(i)</enum><text>register a
person’s participation in Internet gambling and to store information relating
thereto;</text>
</clause><clause id="HF3D1B2AA9DEE4F63AFCE80DAACD92277"><enum>(ii)</enum><text>present to
persons who are participating or who may participate in Internet gambling the
game that is to be played;</text>
</clause><clause id="H940810AE61BB47E395A52E16D34623F0"><enum>(iii)</enum><text>determine all or
part of, or the effect of, a result relevant to Internet gambling and to store
information relating thereto;</text>
</clause><clause id="H768A89B4652E488E9EE314FC5AF09C1B"><enum>(iv)</enum><text>accept payment
with respect to Internet gambling from the player; or</text>
</clause><clause id="HE812D7015A4D4DC7A1FC6354FFE4358B"><enum>(v)</enum><text>authorize payment
of any winnings in respect of Internet gambling.</text>
</clause></subparagraph><subparagraph id="HE9A7722B21224D12A536EFBCB0817065"><enum>(B)</enum><header>Exception</header><text>The
term <quote>remote gaming equipment</quote> does not include the
following:</text>
<clause id="H549846A198414FCDB1F3ACFF9E48CDFD"><enum>(i)</enum><text>Equipment used for
business continuity, back-up, excess capacity, or other secondary use.</text>
</clause><clause id="H53C444C165204D2597C3893C2E763452"><enum>(ii)</enum><text>A
computer which is used by a person to participate in Internet gambling unless
the computer is provided by or on behalf of the person who is conducting or
providing the facilities for the game.</text>
</clause><clause id="H89A16B52F1E54119B6CDFED23E0CA05B"><enum>(iii)</enum><text>Equipment
operated in the ordinary course of providing banking, telecommunications, or
payment processing services.</text>
</clause><clause id="H6D2A65B715074A719AFC97393A89756F"><enum>(iv)</enum><text>Such other
equipment that provides ancillary services as the Secretary considers
appropriate.</text>
</clause></subparagraph></paragraph><paragraph id="H1F0432BE162045F7B806745AC104BABF"><enum>(17)</enum><header>Secretary</header><text display-inline="yes-display-inline">The term <quote>Secretary</quote> means the
Secretary of the Treasury.</text>
</paragraph><paragraph id="H64F52110AE484578AD6A677608741310"><enum>(18)</enum><header>Significant
vendor</header><text>The term <quote>significant vendor</quote> means a person
who—</text>
<subparagraph id="HF7C5EA6CC9C54FAD84EE090168DC9DF9"><enum>(A)</enum><text>on behalf of a
licensee, knowingly manages, administers, or controls bets or wagers that are
initiated, received, or otherwise made within the United States;</text>
</subparagraph><subparagraph id="HE0A555F57069411AB475952064FCDB2D"><enum>(B)</enum><text>on behalf of a
licensee, knowingly manages, administers, or controls the games with which such
bets or wagers are associated;</text>
</subparagraph><subparagraph id="H81CE55E5F5C8414B8FFC5A7640377A40"><enum>(C)</enum><text>on behalf of a
licensee, develops, maintains, or operates the software or other system
programs or hardware on which the games or the bets or wagers are managed,
administered, or controlled;</text>
</subparagraph><subparagraph id="H0668BE47776B4008AAD5652EDC85B4FB"><enum>(D)</enum><text>provides the
trademarks, tradenames, service marks, or similar intellectual property under
which a licensee identifies its Internet gambling facility to its customers in
the United States;</text>
</subparagraph><subparagraph id="HC5143D2ED70E43ECAFA6FEA81CE45164"><enum>(E)</enum><text>sells, licenses,
or otherwise receives compensation for selling or licensing information on
individuals in the United States that made bets or wagers with an Internet
gambling facility not licensed under this title via a database or customer
lists;</text>
</subparagraph><subparagraph id="HFD568E698CD744B9B92DFDB2ECB0845C"><enum>(F)</enum><text>provides any
products, services, or assets to a licensee and is paid a percentage of gaming
revenue or commission fees by the licensee (not including fees to financial
institutions and payment providers for facilitating a deposit by a customer);
or</text>
</subparagraph><subparagraph id="H86FC9F486A35432DA2C20BC603A2F4CB"><enum>(G)</enum><text>with respect to an
applicant, proposes to provide any of the activities, services, or items
identified in subparagraphs (A) through (F).</text>
</subparagraph></paragraph><paragraph id="H9BA82751367E470CB21C701A0EE54C04"><enum>(19)</enum><header>Sporting
event</header>
<subparagraph id="H3AF3129F48434BEA9999C5435CC3F320"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), the term
<quote>sporting event</quote> means any athletic competition, whether
professional, scholastic, or amateur or any performance of any athlete in such
competitions.</text>
</subparagraph><subparagraph id="HBCA9B89EAC8440569BAC392E2651C6E9"><enum>(B)</enum><header>Exception</header><text>The
term <quote>sporting event</quote> does not include any activity described in
<external-xref legal-doc="usc" parsable-cite="usc/28/3704">section 3704(a)(4)</external-xref> of title 28, United States Code.</text>
</subparagraph></paragraph><paragraph id="H985F5BAC2AF9498D8372A2C89BFA097D"><enum>(20)</enum><header>State</header><text>The
term <quote>State</quote> means each of the several States of the United
States, the District of Columbia, and any commonwealth, territory, or
possession of the United States.</text>
</paragraph></section><section id="H192B5F01C7284B3F959651384955A801"><enum>103.</enum><header>Prohibition on
operation of internet gambling facilities</header>
<subsection id="HD5A6DF1AB1C043C2A49A62BA54D093C2"><enum>(a)</enum><header>Prohibition</header>
<paragraph id="H32EF559554E249759C48509A2BD9DEA9"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">It shall be unlawful
for a person to operate an Internet gambling facility that offers services to
persons in the United States, except as authorized under this Act.</text>
</paragraph><paragraph id="H159279EE32B44BECBF5355BCDEEF126E"><enum>(2)</enum><header>Exception</header><text>Paragraph
(1) shall not apply to the operation of an Internet gambling facility by a
person located inside the United States who is a licensed operator under this
Act; to any qualified race track; to any operator offering qualifying lottery
transactions; to any operator authorized and licensed to provide services
relating to bets or wagers by a State or Indian tribe in compliance with the
law of that State or Indian tribe, as applicable, and which solely provides
services to participants wholly within the boundaries of such State or the
Indian lands of such Indian tribe; or to any person engaged outside the United
States in which bets or wagers are initiated, received, or otherwise made
solely by individuals located outside the United States.</text>
</paragraph></subsection><subsection id="H80B3EF282E6144ECBE50CDC5DF866050"><enum>(b)</enum><header>Criminal
penalties</header><text>Any person who violates this section shall be fined
under title 18, United States Code, imprisoned for not more than 10 years, or
both.</text>
</subsection></section><section id="H60F9F8181EFD403397D4AF40F489F105"><enum>104.</enum><header>Office of
Internet Gambling Oversight</header>
<subsection id="HAEF6A566FE2D4A0EA72C49F9200D15E1"><enum>(a)</enum><header>Establishment</header>
<paragraph id="H8F9048DE4FA14D598EBE26930054DA3F"><enum>(1)</enum><header>In
general</header><text>Not later than 180 days after the date of the enactment
of this Act, the Secretary shall establish within the Department of the
Treasury an office to exercise the functions of the Secretary under this
title.</text>
</paragraph><paragraph id="H4F2116730AD74080AFA1318A9E5FAB68"><enum>(2)</enum><header>Designation</header><text>The
office established under paragraph (1) shall be known as the <quote>Office of
Internet Gambling Oversight</quote> (in this section referred to as the
<quote>Office</quote>).</text>
</paragraph></subsection><subsection id="H29D28CBF7E4940C8A1B3FB596271B877"><enum>(b)</enum><header>Executive
director</header>
<paragraph id="HC9D817D9841647C0A6BA6F54F92002E1"><enum>(1)</enum><header>In
general</header><text>The Secretary shall appoint as the head of the Office an
executive director.</text>
</paragraph><paragraph id="H738F209CF9764D499D1BB4C3DA6BC2B2"><enum>(2)</enum><header>Experience and
expertise</header><text>The executive director of the Office shall be appointed
by the Secretary from among individuals who demonstrate the following:</text>
<subparagraph id="H9C70E21C410A48A1B8994FFC0F1DD423"><enum>(A)</enum><text>Skill and
experience in gaming regulation and enforcement.</text>
</subparagraph><subparagraph id="H94C46E089AA94B2CA21CB29496B88EC9"><enum>(B)</enum><text>Experience in
criminal investigations and law enforcement generally.</text>
</subparagraph><subparagraph id="H7CF57C5BC1B943D08234DD1A657DBDBD"><enum>(C)</enum><text>A reputation for
good character, honesty, and integrity.</text>
</subparagraph></paragraph><paragraph id="H5A71CEBDA411411C92EA09887477B44B"><enum>(3)</enum><header>Background
investigation</header><text>Before appointing an individual as executive
director under paragraph (1), the Secretary shall conduct a background
investigation into the financial stability, integrity, and responsibility of
the individual.</text>
</paragraph><paragraph id="H42DDE4FE03DC4B68B7F42B2291394412"><enum>(4)</enum><header>Limitations</header><text>The
Secretary may not appoint under paragraph (1) an individual who—</text>
<subparagraph id="HA1BD91CA86184532BB15F5B07B3D6277"><enum>(A)</enum><text>has been convicted
of a felony; or</text>
</subparagraph><subparagraph id="H75FFADCF7CC6422FB79824C4BEDDE2C5"><enum>(B)</enum><text>maintains any
ownership or equity interest or any ongoing business relationship with—</text>
<clause id="H8E243D34BFAD4E23AB7BD7227C8B17B2"><enum>(i)</enum><text>an
operator of a casino gaming facility, Internet gambling facility, race track,
lottery, or other regulated gambling entity; or</text>
</clause><clause id="H401F4757B2D6439495058186125E08D5"><enum>(ii)</enum><text display-inline="yes-display-inline">A significant vendor.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H987B84DC3EC046B68106ED2CB48F8869"><enum>(c)</enum><header>Delegation of
authority</header>
<paragraph id="HF49EFED416DA4AFD939AA6ADE37F0E9D"><enum>(1)</enum><header>In
general</header><text>The Secretary may delegate to the executive director of
the Office any authority, duty, or responsibility conferred upon the Secretary
by this title.</text>
</paragraph><paragraph id="H7789BC1D34774368A8F953842BB68830"><enum>(2)</enum><header>Regulatory
authority of executive director</header><text>The executive director of the
office may prescribe such regulations and take such actions as may be necessary
to carry out such authorities, duties, or responsibilities delegated to the
executive director by the Secretary paragraph (1).</text>
</paragraph></subsection><subsection id="HDDE58CB7E3E04ACF8078182A1FF9D26D"><enum>(d)</enum><header>Regulations and
standards</header>
<paragraph id="H7304B01E508140CC8288EEF0AC57DC8B"><enum>(1)</enum><header>Regulations and
standards necessary to function as qualified body</header><text>With respect to
the application of this title to the functions of the Office as a qualified
body under section 105(a)(2), the Secretary shall, not later than 270 days
after the date of the enactment of this Act, prescribe regulations and
standards to implement the requirements set out in subsections (d) and (g) of
section 106 and section 107.</text>
</paragraph><paragraph id="H7070B478BA3046D387B4AD27E82825D4"><enum>(2)</enum><header>Manner of
prescription</header><text>Regulations prescribed under paragraph (1) shall be
prescribed in accordance with <external-xref legal-doc="usc" parsable-cite="usc/5/553">section 553</external-xref> of title 5, United States
Code.</text>
</paragraph></subsection><subsection id="HB944FB2FD05941F18A5D9E85E21D90CA"><enum>(e)</enum><header>Publication of
information to facilitate submittal of applications for initial designation as
qualified bodies</header><text>Not later than 150 days after the date of the
enactment of this Act, the Secretary shall publish in the Federal Register such
information as may be necessary for an applicant to submit a complete
application under section 105(a)(1)(B).</text>
</subsection><subsection id="H588F6DCA5EBB440FBFF6DE9E4D6B597F"><enum>(f)</enum><header>Detail of
government employees</header><text>Any Federal Government employee may be
detailed to the office without reimbursement, and such detail shall be without
interruption or loss of civil service status or privilege.</text>
</subsection></section><section id="HF3629EF4C07B4FF7B81557E8F1292A0D"><enum>105.</enum><header>Qualified
bodies</header>
<subsection id="HA83545AE7F874A4594E2A1064641648E"><enum>(a)</enum><header>Designation of
qualified bodies</header>
<paragraph id="H21A570615E5B41F4816CCF8B70822E6A"><enum>(1)</enum><header>Initial
designation of qualified bodies</header>
<subparagraph id="H4A6D26AFB99D4378A6D292E90768FC3C"><enum>(A)</enum><header>Designation</header>
<clause id="H016051FAE4A943A2B8F41509B756E0CD"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">Not later than 270
days after the date of the enactment of this Act, the Secretary shall designate
as qualified bodies all State agencies, and regulatory bodies of Indian tribes,
that submit applications under subparagraph (B) and satisfy the criteria set
forth under subparagraph (C).</text>
</clause><clause id="H0B8269C23D4F4D0CA99703762DEFA163"><enum>(ii)</enum><header>Subsequent
designations</header><text>After the initial designations—</text>
<subclause id="H5A9F48E27261424C92E8BA8AAA47A96C"><enum>(I)</enum><text>the Secretary may
at any time designate additional State agencies or regulatory bodies of Indian
tribes as qualified bodies as deemed appropriate to carry out the goals of this
Act, so long as they meet the criteria set forth under subparagraph (C);
and</text>
</subclause><subclause id="H4FDDEF1192DB4A2B93C0FCECA55C2508"><enum>(II)</enum><text>notify each such
agency or regulatory body of the determinations and designations made under
subclause (I).</text>
</subclause></clause></subparagraph><subparagraph id="H8C1E3DBF6DBF456DB5489785A72D7F16"><enum>(B)</enum><header>Application</header><text>Each
State agency or regulatory body of an Indian tribe seeking to be designated as
a qualified body under subparagraph (A) shall submit to the Secretary an
application therefor in such form and containing such information as the
Secretary may require, which shall be submitted not later than 180 days after
the date of the enactment of this Act for any such agency or body that seeks to
be among those designated under subparagraph (A)(i).</text>
</subparagraph><subparagraph id="HF64A23D96B1248C2B120D6327BC1386B"><enum>(C)</enum><header>Standards for
qualified bodies</header><text>The Secretary shall prescribe strict threshold
requirements for the designation of agencies or regulatory bodies as qualified
bodies under this paragraph, including standards relating to the
following:</text>
<clause id="HF3E56F5AD73A4BDBB78B070F20F86E9C"><enum>(i)</enum><text>The
size and qualification of staff of the qualified body to ensure the qualified
body employs sufficient number of enforcement agents with experience in gaming
regulatory enforcement areas to discharge its intended functions and has the
sophistication and resources necessary to evaluate issues unique to the
Internet environment.</text>
</clause><clause id="H9C1A177BDC134BDFA9BC1EAD54E5E9F2"><enum>(ii)</enum><text>The
length of time the qualified body has regulated other forms of gaming or
e-commerce to ensure designations of only those regulatory bodies that have a
history of demonstrated regulatory enforcement and oversight commensurate with
the responsibilities imposed under this title.</text>
</clause><clause id="H62A2A9A1237D4F36B460EF59872DD0E4"><enum>(iii)</enum><text>The qualified
body’s experience and willingness to work with Federal authorities, including
the Financial Crimes Enforcement Network.</text>
</clause><clause id="H0757B27262BD495A903C35B99A32D843"><enum>(iv)</enum><text>The
capacity and experience of the qualified body in conducting rigorous
suitability reviews under section 106.</text>
</clause><clause id="H71E4E98F04064285A084B5F279F9B49D"><enum>(v)</enum><text>The
adequacy of enforcement and regulatory authorities for the qualified body under
the law of the applicable State or Indian tribe, including, at a minimum,
requirements and authorities on the following:</text>
<subclause id="H7E6C2CB74EAE4007A890EDC09A407782"><enum>(I)</enum><text>To investigate the
suitability of each person required to be found suitable in connection with an
application or license under this title.</text>
</subclause><subclause id="HA78AD54A96734FF3831807449F54D9F6"><enum>(II)</enum><text>To require
licensees to maintain appropriate procedures to ensure the compliance of
licensees with the provisions of this title and the regulations prescribed
thereunder.</text>
</subclause><subclause id="H76CA15C625CC406BB6AAC605F6B957A4"><enum>(III)</enum><text>To examine any
licensee and any books, papers, records, or other data of licensees and
significant vendors relevant to any recordkeeping or reporting requirements
imposed by the agency or regulatory body under this title.</text>
</subclause><subclause id="HC6BBBD4ECC734C668194CB31F6DC5F5B"><enum>(IV)</enum><text>To summon a
licensee, an applicant, a significant vendor, an officer or employee of a
licensee, applicant, or significant vendor (including a former officer or
employee), or any person having possession, custody, or care of the reports and
records required by the agency or regulatory body as a qualified body under
this title to appear before the agency or regulatory body at such time and
place named in the summons, to produce such books, papers, records, or other
data, and to give such testimony, under oath, as may be relevant or material to
any investigation in connection with the enforcement o this title or any
application for a license under this title.</text>
</subclause><subclause id="HC4EB71CBF7FD4C9880204752C4A21C03"><enum>(V)</enum><text>To enforce or
direct enforcement of a summons in State or tribal court, as the case may
be.</text>
</subclause><subclause id="H8A83CA4370FC4B8EB037D76BA304FB1C"><enum>(VI)</enum><text>To investigate
any violation of a provision of this title, any applicable regulation
prescribed under this title, and any other violation of applicable State or
tribal law relating to the operation of an Internet gambling facility.</text>
</subclause><subclause id="H123498552CF64071940F534C3ECA8567"><enum>(VII)</enum><text>To conduct
continuing reviews of applicants, licensees, and significant vendors and the
operation of Internet gambling facilities by use of technological means,
on-site observation of facilities, including servers, or other reasonable means
to assure compliance with the provisions of this title and any applicable
regulation prescribed thereunder.</text>
</subclause><subclause id="H6063272327C24376B2C408F172008C27"><enum>(VIII)</enum><text>To impose civil
penalties for violations of this title and any applicable regulation prescribed
thereunder or applicable order issued thereunder, including State or tribal law
described under this subsection.</text>
</subclause><subclause id="H475C4954681940F3A93497E7EBEF40FA"><enum>(IX)</enum><text>To ensure that
the hardware, software, and communications equipment, randomness,
configuration, and network security of the Internet gambling facility are
tested by an independent testing laboratory.</text>
</subclause><subclause id="H707DBC69BA28414B999810A509ED3BC8"><enum>(X)</enum><text>To resolve
disputes between licensees and the individuals participating in Internet
gambling via the Internet gambling facilities of the licensees.</text>
</subclause></clause><clause id="H03F8BD90CA9A4D07ADA924B61F31A218"><enum>(vi)</enum><text>Such other
standards as the Secretary considers relevant to the ability of an agency or
regulatory body to serve as an effective qualified body.</text>
</clause></subparagraph></paragraph><paragraph id="H10438A60DB9B4E78A71766B4EFEEDCBC"><enum>(2)</enum><header>Designation of
office of internet gambling oversight</header>
<subparagraph id="HDE5990E105BD463DB858AFE88FB4A575"><enum>(A)</enum><header>In
general</header><text>Not later than 270 days after the date of the enactment
of this Act, the Secretary shall designate the Office of Internet Gambling
Oversight established under section 104(a) as a qualified body that may issue
licenses to Internet gambling facility applicants and regulate the operation of
Internet gambling facilities by any applicant who seeks to operate a licensed
Internet gambling facility in the United States.</text>
</subparagraph><subparagraph id="H951751A934574D17B6ED39170C948023"><enum>(B)</enum><header>Construction</header><text>Subparagraph
(A) shall not be construed to require any applicant seeking a license under
this title and submitting an application under section 106(c)(1) to submit such
application directly to the Office of Internet Gambling Oversight, rather than
submitting such application to a State agency or regulatory body of an Indian
tribe that has been designated by the Office of Internet Gambling Oversight as
a qualified body.</text>
</subparagraph></paragraph><paragraph id="HBF2AA0B8FA8648E0B55672897F2DBDA1"><enum>(3)</enum><header>Nonqualifying
State and tribal regulatory authorities due to limited experience or
conflicts</header>
<subparagraph id="HB9DD2E3EE1AB4ADA9E2555B526CFC66F"><enum>(A)</enum><header>In
general</header><text>The Secretary may not approve an application from a State
agency or regulatory body of an Indian tribe under paragraph (1) if—</text>
<clause id="H9DE04E6788E946ECABCA559F3B4C4638"><enum>(i)</enum><text>the
agency or regulatory body is located in a State or Indian lands that—</text>
<subclause id="HFE87518BA0D548A19E17E04CB52D6417"><enum>(I)</enum><text>has not opted in
under section 108 and has not demonstrated an intent to opt in under such
section; or</text>
</subclause><subclause id="H5943EA8CEE754A589093FB26EB18A920"><enum>(II)</enum><text>has not opted in
under such section and has demonstrated an intent to opt in under such section
but has failed to opt in under such section during the 1-year period beginning
on the date of the agency’s or regulatory body’s application; or</text>
</subclause></clause><clause id="HC609A54B10F0401ABE3AE9A8FA2166E3"><enum>(ii)</enum><text>the
members of the agency or regulatory body are selected or controlled, directly
or indirectly, by a person that has any ownership interest in an applicant,
licensee, or significant vendor under this title or an Internet gambling
facility, unless—</text>
<subclause id="HB0CAC41CE2694B5085E7F3724B11CFC0"><enum>(I)</enum><text>such applicant or
licensee is licensed by the Secretary; or</text>
</subclause><subclause id="H426FF56BF837463FB8FFC894AE2CD3F4"><enum>(II)</enum><text>such significant
vendor is certified as suitable by the Secretary (and remains so certified at
all times while providing services as a significant vendor to any licensee
under this title).</text>
</subclause></clause></subparagraph><subparagraph id="H54C987B21BEE4B2694380B2D4FDB6F34"><enum>(B)</enum><header>Non-controlling
investment</header><text>A non-controlling investment of a State, Indian tribe,
or local government pension, retirement, annuity, or endowment fund shall not
be considered an ownership interest for purposes of subparagraph
(A)(ii).</text>
</subparagraph></paragraph><paragraph id="H974D8D731BD847DD8EACAA250F1545F3"><enum>(4)</enum><header>Withdrawal of
designation</header>
<subparagraph id="H79302F40ABBC40E79BB29352E5EF7488"><enum>(A)</enum><header>In
general</header><text>Beginning on the date that is 1 year after the date on
which the Secretary prescribes final regulations under this title, the
Secretary may, after providing at least 60 days notice to a qualified body of
the Secretary’s intent to do so, withdraw the designation of a qualified body
under this section if the Secretary determines that—</text>
<clause id="H3CC50BB4EC2044269E6096F97CE6217A"><enum>(i)</enum><text>the
qualified body is not in compliance with the requirements of this title or
regulations prescribed thereunder; or</text>
</clause><clause id="H820EB06B0AF34B0084355D7A5D1CD3D9"><enum>(ii)</enum><text>the
qualified body is not in compliance with the conditions under which the
qualified body was designated.</text>
</clause></subparagraph><subparagraph id="H221326E83CD34E858C77188873E36D4C"><enum>(B)</enum><header>Opportunity to
comply</header>
<clause id="HE96E294D2720417D9CEA6253E1DE8CD0"><enum>(i)</enum><header>In
general</header><text>The Secretary may provide a qualified body who receives
notice under subparagraph (A) with an opportunity to come into compliance as
specified in that notice for a period of not more than 90 days.</text>
</clause><clause id="HAA233C954E8A42B98C812C21FC2DA363"><enum>(ii)</enum><header>Extension</header><text>The
Secretary may extend the period in clause (i) by not more than 180 additional
days if the qualified body has made substantial progress toward compliance as
of the expiration of the first 90 day period.</text>
</clause></subparagraph><subparagraph id="HD2222C1438194EBE80FFC42ADDE5A9B3"><enum>(C)</enum><header>Effect of
notice</header><text>The Secretary may prohibit a qualified body that receives
notice under subparagraph (A) from issuing new licenses under this title until
the Secretary determines that the qualified body is in compliance with the
requirements of this title and regulations prescribed thereunder.</text>
</subparagraph><subparagraph id="H8C5DD3B994294398AB7F75C29D30C0D7"><enum>(D)</enum><header>Right to
appeal</header><text>A State agency or regulatory body of an Indian tribe that
has had its designation as a qualified body withdrawn under subparagraph (A) or
(B) may seek judicial review of such withdrawal under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/7">chapter 7</external-xref> of title 5,
United States Code.</text>
</subparagraph></paragraph><paragraph id="HF0688CD24EA74796A9F1D82E24F31E7F"><enum>(5)</enum><header>Action upon
withdrawal of designation</header>
<subparagraph id="H0658ACF61E5244C2A720AF0DD8A7DBB4"><enum>(A)</enum><header>In
general</header><text>Not later than 30 days after the date on which the
Secretary withdraws a designation of a State agency or regulatory body of an
Indian tribe under paragraph (5), each person with a license issued by the
agency or regulatory body shall—</text>
<clause id="H88762B69E92E41418ADF5CB7EB253DF6"><enum>(i)</enum><subclause commented="no" display-inline="yes-display-inline" id="H301090BB571A4371B044D7188FF4FF4A"><enum>(I)</enum><text>cease offering,
accepting, and providing services with respect to bets or wagers from persons
located in the United States under such license; and</text>
</subclause><subclause id="H4596C5C82239428CA6A4D040BD43079D" indent="up1"><enum>(II)</enum><text>return all customer deposits of United
States customers, or place those sums the return of which to United States
customers is not feasible due to change in customer address, bank details, or
similar difficulty in escrow in an account with a financial institution in the
United States for safekeeping and orderly disposition by the Secretary;
or</text>
</subclause></clause><clause id="H675D1CEF3D1F4AE1AEDD4502C80AA4F5"><enum>(ii)</enum><text>apply for a new
license from a different qualified body.</text>
</clause></subparagraph><subparagraph id="H45467AB0DB4F4E98A3E85B89164EF964"><enum>(B)</enum><header>Interim
operation</header><text>If a person applies for a new license under clause (ii)
of subparagraph (A), the person may continue the activities described in clause
(i)(I) of such subparagraph until final action is taken on the license
application by the qualified body.</text>
</subparagraph><subparagraph id="HE5F68C61FB8F4E07BECEE142545A0976"><enum>(C)</enum><header>Interim
regulatory oversight</header>
<clause id="HAF4F1430118D4B9888349395E6D1632B"><enum>(i)</enum><header>In
general</header><text>Until final action is taken under subparagraph (B) with
respect to a person, the Secretary shall have enforcement and regulatory
authority over the licensed activities of such person.</text>
</clause><clause id="H1C3D6FCD8BB844ACBF7D3F4A80C8D850"><enum>(ii)</enum><header>Delegation</header><text>The
Secretary may delegate enforcement and regulatory authority under clause (i) to
such qualified body as the Secretary considers appropriate, with the consent of
the qualified body.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H3AC738C9FCAB42CB934C2C69149A2249"><enum>(b)</enum><header>Oversight of
qualified bodies</header><text>The Secretary may investigate and take such
action as the Secretary considers appropriate with respect to any qualified
body that appears, based upon the Secretary’s own inquiry or based upon
credible information provided by other qualified bodies, applicants, licensees,
or law enforcement officials, to be deficient or substantially less rigorous
than other qualified bodies in the discharge of its responsibilities under this
title.</text>
</subsection></section><section id="HC14BC7C258324C859D30E12E77FE76EB"><enum>106.</enum><header>Establishment
of licensing program for internet gambling</header>
<subsection id="H54D44E673FE84ACC88D99F86C8E0D721"><enum>(a)</enum><header>Treasury
responsibilities and powers</header><text>The Secretary shall have
responsibility and authority for the following activities:</text>
<paragraph id="H0BA6EEB1B6C3437AB951F7FD6D24F42D"><enum>(1)</enum><text>Reviewing and
qualifying applicants to become Internet gambling facilities under section
105(a)(2).</text>
</paragraph><paragraph id="H63E15043ACC3440DA183AD512C784079"><enum>(2)</enum><text>Reviewing and
qualifying agencies and regulatory bodies under section 105(a)(2).</text>
</paragraph><paragraph id="HA26430B9C4E5401F86131FF2027F9E54"><enum>(3)</enum><text>Exercising
oversight over qualified bodies to ensure that qualified bodies—</text>
<subparagraph id="H5E6F59C8183241A4A4B5D2ED9363930F"><enum>(A)</enum><text>comply with the
requirements of this title; and</text>
</subparagraph><subparagraph id="H2E2EDF6ABE3A4028851E3B83965226D3"><enum>(B)</enum><text>carry out their
regulatory and enforcement functions under this title with appropriate
diligence.</text>
</subparagraph></paragraph><paragraph id="H590C94A050C9451C8C8ED54CDD3338E1"><enum>(4)</enum><text>Investigating and
taking appropriate remedial action with respect to any qualified body under
section 105.</text>
</paragraph><paragraph id="H301E4E1F2F5A40BA816496129F3A883F"><enum>(5)</enum><text>Prescribing such
regulations as may be necessary to administer and enforce the provisions of
this title, including issuing regulations establishing rules and procedures for
dealing with sums placed in escrow under subsection (l)(7), section
105(a)(6)(A)(i)(II), and section 114(b)(1)(E).</text>
</paragraph><paragraph id="HA564E245838B4F678FE750B1B5CA16FB"><enum>(6)</enum><text>Employing
enforcement agents with sufficient training and experience to administer the
requirements of this title and the regulations prescribed thereunder.</text>
</paragraph><paragraph id="HE34BF5ECD0AB4B9EA45B9A1244893CD0"><enum>(7)</enum><text>Enforcing the
requirements of this title by all appropriate means provided under this title
and other provisions of law.</text>
</paragraph></subsection><subsection id="HE9E57ED3EA0B48478575050541E4BF6D"><enum>(b)</enum><header>Internet
gambling facility licensing program</header>
<paragraph id="H68BB7DCD34BE41D89543C44F4F23C633"><enum>(1)</enum><header>Authority to
issue licenses limited to non-sports related internet gambling</header><text>A
qualified body may issue licenses under this title only for the operation of
non-sports related Internet gambling facilities.</text>
</paragraph><paragraph id="H05280AD9D6D746C69E2387714D3EE8C8"><enum>(2)</enum><header>Authority to
operate internet gambling facility under valid license</header>
<subparagraph id="H782ADEA0F6114C43AEC22D8E126466BE"><enum>(A)</enum><header>In
general</header><text>Notwithstanding any other provision of law and subject to
the provisions of this title, a licensee may accept a bet or wager with respect
to Internet gambling from an individual located in the United States and may
offer related services so long as the license of the licensee issued under this
title remains in good standing.</text>
</subparagraph><subparagraph id="HFA1A4D498E864B4E812FB001E07A0CB5"><enum>(B)</enum><header>Only one license
required</header><text>Nothing in this title may be construed to require a
person to obtain a license from more than one qualified body in order to
operate an Internet gambling facility under this title.</text>
</subparagraph><subparagraph id="H222DFC83933940A593B1D7C4B7E24652"><enum>(C)</enum><header>Significant
vendors</header>
<clause id="HBD81561B47034872B6DAA5EDB4FC2CE5"><enum>(i)</enum><header>In
general</header><text>Except as provided in clause (ii), if a person seeks a
certificate of suitability from a qualified body to provide services to a
licensee or applicant as a significant vendor with respect to an Internet
gambling facility, such person shall not be required to obtain a license under
this title to provide such services with respect to that Internet gambling
facility.</text>
</clause><clause id="H0C79C20010D44A699A4EE78035CEBDD8"><enum>(ii)</enum><header>Exception</header><text>If
a qualified body determines that requiring a person described in clause (i) to
seek a license is necessary to prevent evasion of any provision of this title,
and requiring so would otherwise be consistent with the provisions of this
title, such qualified body may require such person to seek a license under this
title instead of a certificate of suitability.</text>
</clause></subparagraph></paragraph><paragraph id="H74B0B05296EE4A3785A4DF27CDDA4DFF"><enum>(3)</enum><header>Operation
outside the United States</header>
<subparagraph id="H1546CEC53ECD4611B4E51939D4CF697F"><enum>(A)</enum><header>Limitation</header><text>A
licensee or an affiliate of a licensee may not operate an Internet gambling
facility that accepts a bet or wager from an individual located outside of the
United States unless the transaction is lawful under this Act and is not
unlawful in the jurisdiction in which the individual is located.</text>
</subparagraph><subparagraph id="HCCE6DEAB67AF403491F0F00A124268ED"><enum>(B)</enum><header>Construction</header><text>Nothing
in this title shall be construed to authorize a licensee or a foreign affiliate
thereof to accept a bet or wager from an individual located in any jurisdiction
outside the United States that prohibits the licensee or a foreign affiliate
from accepting such bet or wager.</text>
</subparagraph></paragraph></subsection><subsection id="HA16C0476E8C24FDA85DFD48510CE0AA4"><enum>(c)</enum><header>Application for
license</header>
<paragraph id="H71F31DD39EDF429985E2BE39EC3BBAC0"><enum>(1)</enum><header>Application</header><text>A
person seeking to operate an Internet gambling facility under this title shall
submit to the Office of Internet Gambling Oversight or any other qualified body
an application for a license therefor at such time, in such form, and in such
manner as the qualified body receiving the application considers
appropriate.</text>
</paragraph><paragraph id="H1791B5B4E2C6483CB4E7DC559AE2D967"><enum>(2)</enum><header>Elements</header><text>Each
application submitted under paragraph (1) shall include such information as the
qualified body receiving the application considers appropriate, including at a
minimum the following:</text>
<subparagraph id="HA0B0B2D6519A437F9B198C8C24893C80"><enum>(A)</enum><text>Complete financial
information about the applicant.</text>
</subparagraph><subparagraph id="H7B9F74B1B38E40A8AB3F0FF5032B99D6"><enum>(B)</enum><text>Documentation
showing the organization of the applicant and all related businesses and
affiliates.</text>
</subparagraph><subparagraph id="H1E9D51D202F94ACABE59AD98900354DF"><enum>(C)</enum><text>The criminal and
financial history of—</text>
<clause id="H8F04BB02494E4C8785B83D63CF945E06"><enum>(i)</enum><text>the
applicant;</text>
</clause><clause id="H0E19D07DDC6A42C08B19CF164D479AF4"><enum>(ii)</enum><text>each of the
senior executives and directors of the applicant;</text>
</clause><clause id="H726B0468105049FAAFBC766D6BD260B0"><enum>(iii)</enum><text>any other person
who is in control of the applicant; and</text>
</clause><clause id="H3DB5BF9620154D22B7EE6FCB003DC100"><enum>(iv)</enum><text>such other
persons as the qualified body considers appropriate.</text>
</clause></subparagraph><subparagraph id="HAAB467CB5A024F80971534EAAFFA82CD"><enum>(D)</enum><text>Such other
information as may be necessary for the suitability analysis required under
subsection (d).</text>
</subparagraph><subparagraph id="HF8A8D28D3FB54FF9903D50014E3BC27D"><enum>(E)</enum><text>Disclosure of all
other applications for licenses previously or simultaneously submitted under
paragraph (1) to other qualified bodies and whether those applications are
pending, were granted, or were denied.</text>
</subparagraph><subparagraph id="HB52F170785804C8581D2FF56FDF751F1"><enum>(F)</enum><text>A detailed
description of the applicant’s plan for complying with all applicable
requirements and regulations prescribed pursuant to this title, with particular
emphasis on the applicant’s ability to comply with the regulations prescribed
under subsection (g).</text>
</subparagraph><subparagraph id="H7018B33EEB3442668F5D23D9BEF669F9"><enum>(G)</enum><text>A certification by
the applicant that the applicant consents to personal jurisdiction over the
applicant by Federal courts and in the courts of the State or Indian tribe of
the qualified body to which the applicant has applied with respect to a civil
action relating to the operation of an Internet gambling facility.</text>
</subparagraph></paragraph><paragraph id="H6EED1927CEB047DCAB91C07EEE317380"><enum>(3)</enum><header>Reports</header>
<subparagraph id="HBA6286530925434792FC9881960E9639"><enum>(A)</enum><header>In
general</header><text>Each qualified body shall report all applicants for
licensure and the dispositions of their applications to the Secretary promptly
upon disposition of each application or in such intervals as the Secretary may
prescribe.</text>
</subparagraph><subparagraph id="H1DF629186028402E90C69F75FECC5ACC"><enum>(B)</enum><header>Contents</header><text>Each
report under subparagraph (A) shall include such information or documentation
as the Secretary may require.</text>
</subparagraph></paragraph></subsection><subsection id="H0AEC648DD1714B34BB4CBB8FF1323329"><enum>(d)</enum><header>Standards for
license issuance; suitability qualifications and disqualification
standards</header>
<paragraph id="HE33A34B4FA834F03A1044F71BF179650"><enum>(1)</enum><header>Suitability for
licensing</header>
<subparagraph id="HA851148A241B4D75841E7CBA9A1DB148"><enum>(A)</enum><header>In
general</header><text>No applicant shall be eligible to obtain a license under
this title unless a qualified body, with whom the applicant has filed an
application for a license, has determined, upon completion of a background
check and investigation, that the applicant, any person considered to be in
control of the applicant, all significant vendors of the applicant, and any
other person determined by the qualified body as having significant influence
on the applicant are suitable for licensing.</text>
</subparagraph><subparagraph id="HF982411767D74C849401ED7CC493FDA5"><enum>(B)</enum><header>Application as
request for determination of suitability</header><text>An application for a
license submitted to a qualified body under this title constitutes a request
for a determination of the general character, integrity, and ability to
participate or engage in or be associated with an Internet gambling facility,
as appropriate, of the applicant, any person considered to be in control of the
applicant, all significant vendors of the applicant, and all other persons
determined by the qualified body as having significant influence on the
applicant.</text>
</subparagraph><subparagraph id="H1E7250ABA4CB44FBB90F82DFDC0C281C"><enum>(C)</enum><header>Associates</header>
<clause id="HD5E39B79083B4508B9A08EB47E7200D3"><enum>(i)</enum><header>In
general</header><text>If an entity undergoing a determination of suitability
under this paragraph is a corporation, partnership, or other business entity, a
background check and investigation shall be carried out by the applicable
qualified body with respect to the president or other chief executive of the
corporation, partnership, or business entity and such other partners or senior
executives and directors or shareholders of the corporation, partnership, or
entity as the qualified body considers appropriate.</text>
</clause><clause id="HE11BCC0239454DC696ACCCE35B4DFA26"><enum>(ii)</enum><header>Minimum
determination</header><text>In carrying out clause (i), the qualified body
shall, at a minimum, carry out a suitability review of the 5 individuals
receiving the most compensation (whether in the form of salary, bonus,
dividends, distributions, disbursement of profits, or otherwise) from the
entity, any person that controls the entity, and such other individuals or
entities as the qualified body considers appropriate.</text>
</clause></subparagraph><subparagraph id="H20CFEE114709446FAEA747FB57E2E648"><enum>(D)</enum><header>Parity of
investigation and analysis</header>
<clause id="H5D1C12464EAE4E9B8F764652F5650A58"><enum>(i)</enum><header>Diligence with
respect to significant vendors and affiliates</header><text>Each investigation
and analysis of the suitability of a person with respect to an application for
a license under this title, other than the applicant for such license, shall be
carried out with the same degree of diligence as the investigation and analysis
of the suitability of the applicant.</text>
</clause><clause id="H14EA534FFBAA466A9A7DDE8CFBC2ED61"><enum>(ii)</enum><header>Stringency with
respect to casino gaming facilities</header><text>Each qualified body that also
issues licenses to casino gaming facilities shall ensure that each
investigation and analysis of the suitability of a person carried out by the
qualified body under this subsection is no less stringent than a suitability
review carried out by the qualified body for the licensing of casino gaming
facilities.</text>
</clause></subparagraph></paragraph><paragraph id="HE35C2DA8E5D34216BF3E9BE7BCA13E1C"><enum>(2)</enum><header>Suitability
standards</header><text>For purposes of this title, an applicant and any other
person subject to a determination of suitability under paragraph (1) may only
be considered suitable under this title if the applicant or person demonstrates
to the applicable qualified body by clear and convincing evidence that the
applicant or person—</text>
<subparagraph id="H3DF7A8B5F337408FB855345733278A8E"><enum>(A)</enum><text>is a person of
good character, honesty, and integrity;</text>
</subparagraph><subparagraph id="H3C5901F5A19943BF96771165FC807E8D"><enum>(B)</enum><text>is a person whose
prior activities, criminal record, if any, reputation, habits, and associations
do not—</text>
<clause id="H355D79E79C8F4C66A89960DE91FDA750"><enum>(i)</enum><text>pose
a threat to the public interest or to the effective regulation and control of
Internet gambling facilities; or</text>
</clause><clause id="H97271152EFCE4D8C9F225160699249C2"><enum>(ii)</enum><text>create or enhance
the dangers of unsuitable, unfair, or illegal practices, methods, and
activities in the conduct of Internet gambling facilities or the carrying on of
the business and financial arrangements incidental to such facilities;</text>
</clause></subparagraph><subparagraph id="HB00D07E55DD84C1C97F1D9FA68AB9774"><enum>(C)</enum><text>is capable of and
likely to conduct the activities for which the applicant is licensed or
receives a certificate of suitability in accordance with the provisions of this
title, any regulations prescribed under this title, and all other applicable
laws;</text>
</subparagraph><subparagraph id="H0F33D8B230E9443BB1CF9167E3A93D1C"><enum>(D)</enum><text>in the case of an
applicant, has or guarantees acquisition of adequate business competence and
experience in the operation of casino gaming facilities, Internet gambling
facilities, or Internet gambling facilities;</text>
</subparagraph><subparagraph id="H37C6E6BE8BF7432CA7E0C1304FC571A6"><enum>(E)</enum><text>in the case of an
applicant, has or will obtain sufficient financing for the nature of the
proposed operation and from a suitable source; and</text>
</subparagraph><subparagraph id="HAF6D0AB6BC3A40EFAA9772ABBEFDAE31"><enum>(F)</enum><text>has disclosed to
the qualified body all known affiliations or relationships, whether direct or
indirect, with persons and assets of persons described by section
114(b)(2).</text>
</subparagraph></paragraph><paragraph id="H715CA5923F1046F398D8560EAF86E2C8"><enum>(3)</enum><header>Unsuitable</header><text>An
applicant or any other person may not be determined to be suitable under this
subsection if the applicant or such person—</text>
<subparagraph id="H258B76EF96FA4DA5A460667708C1E6E1"><enum>(A)</enum><text>has failed to
provide information and documentation material to a determination of
suitability for licensing under paragraph (1);</text>
</subparagraph><subparagraph id="HD8379B3D3A0343FABD68D95C5E2E2532"><enum>(B)</enum><text>has supplied
information which is untrue or misleading as to a material fact pertaining to
any such determination;</text>
</subparagraph><subparagraph id="H0838753EE1DA4124AE7E1BD1394FADAA"><enum>(C)</enum><text>has been convicted
of an offense that is punishable by imprisonment of more than 1 year;</text>
</subparagraph><subparagraph id="H77FD1061B4B84F398910008E2CB787E9"><enum>(D)</enum><text>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 administrative dispute;</text>
</subparagraph><subparagraph id="HA6B5F071E9C8420DA96B8ED77DBB3A32"><enum>(E)</enum><text>has not certified
in writing, pursuant to subsection (c)(2)(G), that the person submits to
personal jurisdiction in the United States;</text>
</subparagraph><subparagraph id="H789A32A90968409A9289F99041C2CE2C"><enum>(F)</enum><text>knowingly accepts
or knowingly has accepted bets or wagers on sporting events from persons
located in the United States in violation of a provision of Federal or State
law;</text>
</subparagraph><subparagraph id="HCECAB10036AC4353A0CC6A79593FA839"><enum>(G)</enum><text>has affiliated
with any person that knowingly accepts or knowingly has accepted bets or wagers
on sporting events from persons located in the United States in violation of a
provision of Federal or State law; or</text>
</subparagraph><subparagraph id="H3DDD60D3EE01418699AED107F061B41E"><enum>(H)</enum><text>fails to comply
with such other standard as the applicable qualified body considers
appropriate.</text>
</subparagraph></paragraph><paragraph id="HF4D8FCFFBCBE4FCE9900819797F570CE"><enum>(4)</enum><header>Ongoing
requirement</header><text>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.</text>
</paragraph><paragraph id="H5D606197CE4645E0B954CBD3F2C350D7"><enum>(5)</enum><header>Certificate of
suitability for significant vendors</header>
<subparagraph id="H1BA90085CF83464CA172E51B2934551D"><enum>(A)</enum><header>In
general</header><text>If a qualifying body determines under paragraph (1) that
a significant vendor of an applicant is suitable under such paragraph, the
qualifying body shall issue a certificate to such vendor that certifies the
suitability of such vendor.</text>
</subparagraph><subparagraph id="H9E361ACA40E045F19E06F3CDB6984E9C"><enum>(B)</enum><header>Revocation of
certificate</header><text>A qualified body 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 standards necessary for a
determination of suitability.</text>
</subparagraph><subparagraph id="HCFC4E0B7532B41EEA02A7752F3779060"><enum>(C)</enum><header>Reliance on
certificate</header><text>A qualified body may, but need not, rely upon a
certificate issued under subparagraph (A) to a significant vendor with respect
to one application in the review of the same significant vendor in other
license applications.</text>
</subparagraph><subparagraph id="H7F3BA35821EC44859DFB3CD52F45C3E1"><enum>(D)</enum><header>Certificates
issued by other qualified bodies</header><text>A qualified body may, but need
not, accept a certificate issued to a significant vendor by another qualified
body as evidence of the suitability of the significant vendor.</text>
</subparagraph></paragraph><paragraph id="H86AE873B223B4DCBB278C5EE617E363A"><enum>(6)</enum><header>Other
vendors</header>
<subparagraph id="HCA425804F12C4AE7A94BE697298C0FFE"><enum>(A)</enum><header>Notice</header><text>A
licensee shall promptly notify the qualified body that issued the license to
the licensee of all persons that are not significant vendors that—</text>
<clause id="H642A8208F8AC4A6D868EB751C2EA5A5B"><enum>(i)</enum><text>direct, provide,
or solicit customers to or for the licensee’s Internet gambling facility, or
materially assist in any of those tasks, in return for a commission or other
fee;</text>
</clause><clause id="H14283B12B44F49A2A0D75E02A1565970"><enum>(ii)</enum><text>hold themselves
out to the public as offering bets or wagers on the licensee’s behalf;</text>
</clause><clause id="HE9943C948A6049868A3CCE33D3D804BD"><enum>(iii)</enum><text>offer bets or
wagers under their own names or brands but using and relying on the licensee’s
Internet gambling facilities;</text>
</clause><clause id="H80A78DB69BB74EADB228CCE24CDD6065"><enum>(iv)</enum><text>license
trademarks, trade names, service marks, or other similar intellectual property
to the licensee; or</text>
</clause><clause id="H8D2A453AFFD54F41A3B39D63533E9E16"><enum>(v)</enum><text>own
a substantial interest in or control a person described in clause (i), (ii),
(iii), or (iv).</text>
</clause></subparagraph><subparagraph id="HF48F336F007143E588DEB67479D1CC4A"><enum>(B)</enum><header>Suitability of
other vendors and persons</header><text>A qualified body that reviews an
application of an applicant for a license or issues a license to a licensee
may, at the sole discretion of the qualified body and on a case-by-case basis,
require as a condition of such license that a person meet suitability
requirements under paragraph (1) if the person—</text>
<clause id="HE36F66CF3DF94B9D82C0DE2FB685AA64"><enum>(i)</enum><text>is
described in subparagraph (A) with respect to the applicant or licensee;</text>
</clause><clause id="H7EBF017305134CC990A2EC21BEEB84A1"><enum>(ii)</enum><text>provides services
to an applicant or licensee and the qualified body determines that, with
respect to such services, there is a substantial risk of circumvention of the
suitability requirements applicable to significant vendors; or</text>
</clause><clause id="HB1985B65B8D34079A1EBC5D3BCE916C5"><enum>(iii)</enum><text>is
associated with the applicant or licensee or one of the significant vendors of
the applicant or licensee and the qualified body determines such person may
pose a threat to the integrity of Internet gambling facilities operated by the
applicant or licensee.</text>
</clause></subparagraph><subparagraph id="HD0957ACBF85540B39B3C964F21F9BEC9"><enum>(C)</enum><header>Information</header><text>A
qualified body may require such information from an applicant, licensee,
significant vendor or other person identified in this paragraph as the
qualified body considers necessary to carry out this paragraph.</text>
</subparagraph></paragraph><paragraph id="H8C9E7FCCBC7646A59FF01624382B2EAB"><enum>(7)</enum><header>Enforcement
actions</header>
<subparagraph id="H4E8DB985A43B4045AB37D906E7B835E2"><enum>(A)</enum><header>In
general</header><text>If the Secretary or the qualified body that issued a
license to a licensee finds that the licensee, or any other person that is
subject to a required determination of suitability in connection with such
licensee, ceases to meet the suitability requirements of this subsection at any
time during the tenure of the license, the Secretary or the qualified body may
take action to protect the public interest, including, if the Secretary or
qualified body considers necessary, the suspension or termination of the
license.</text>
</subparagraph><subparagraph id="HB668C8477DD54826873B1B84553A75A4"><enum>(B)</enum><header>Imposition of
conditions including removal of parties</header><text>Notwithstanding a
determination under subparagraph (A), the Secretary or the qualified body that
issued a license to a licensee may allow the licensee to continue engaging in
licensed activities 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—</text>
<clause id="HA9FDE9E3B22E496892408ADF1D68575A"><enum>(i)</enum><text>the
identification of any person determined to be unsuitable; and</text>
</clause><clause id="H5454FA2710F24A47825C37E8C31B4BEA"><enum>(ii)</enum><text>the
establishment of appropriate safeguards to ensure such person is excluded from
any management or involvement in operation of the licensed activities.</text>
</clause></subparagraph><subparagraph id="HF152D604C71143C79EDAFDC0E3A0513E"><enum>(C)</enum><header>Special rule for
enforcement of prohibition on unlawful sports wagering</header><text>If the
Secretary or a qualified body finds that a licensee is no longer suitable under
this subsection because such licensee has accepted bets or wagers as described
in paragraph (3)(F) or has affiliated as described in paragraph (3)(G), the
Secretary or the qualified body, as the case may be, shall revoke the license
of such licensee in addition to the imposition of such other penalties as the
Secretary or qualified body considers appropriate under this title.</text>
</subparagraph></paragraph><paragraph id="H10CFE276838A4FEAA8E083CF6FD7802E"><enum>(8)</enum><header>Administrative
provisions</header>
<subparagraph id="H883DEC9B5CAD41BB8E6DA55A44F6AF04"><enum>(A)</enum><header>Background check
and investigation</header><text>Each qualified body shall establish standards
and procedures for conducting background checks and investigations for purposes
of this subsection.</text>
</subparagraph><subparagraph id="HF37956263A824126B497CCE87CC095ED"><enum>(B)</enum><header>Non-admissibility
of statements for purposes of defamation actions</header><text>Any written or
oral statement made in the course of an official proceeding of the Secretary or
a qualified body, by any member thereof, or any witness testifying under oath
which is relevant to the purpose of the proceeding and relates to the review of
an application for a license under this title shall not be admissible in any
Federal or State court in a civil action to prove defamation.</text>
</subparagraph><subparagraph id="HD7F13B5B9DE342B1AD07E5B19802327D"><enum>(C)</enum><header>Preservation of
privilege recognized under other provisions of law</header><text>Any privilege
recognized under any other 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 body
under this title.</text>
</subparagraph><subparagraph id="HD657976BD66846D9BB38EA5E90AA2122"><enum>(D)</enum><header>Confidentiality</header>
<clause id="H843DA24579CD4D5FB489C57CFD747242"><enum>(i)</enum><text>Except as set
forth in provision (ii) of this subsection, any communication or document,
except information that is already public, shall be treated as confidential and
may not be disclosed, in whole or part, by the Secretary or a qualified body
without a lawful court order or as otherwise required by law, if the
communication or document is—</text>
<subclause id="HB6DFD876F635430CA6D0A8F95457B369"><enum>(I)</enum><text>required by the
Secretary or qualified body to be disclosed by the applicant, licensee, or
significant vendor, including applications, financial or earnings information,
and criminal records, whether of the applicant or licensee or of any affiliate,
employee, officer, director or significant vendor thereof, or of any other
third-party;</text>
</subclause><subclause id="HC174E12F19784F7091099E943E9C870C"><enum>(II)</enum><text>prepared or
obtained by an agent or employee of the Secretary or qualified body that
contains information described in clause (i); or</text>
</subclause><subclause id="HC07F34F925E84765B646A9CEB05D4F82"><enum>(III)</enum><text>submitted by the
applicant, licensee, or significant vendor in connection with a pending
application or existing license.</text>
</subclause></clause><clause id="HDE9D44647B414E3B84698AC80AD3E91B"><enum>(ii)</enum><text>Nothing in this
subsection shall limit the disclosure of information provided by an applicant,
licensee, or significant vendor to the Secretary or qualified body to any
official of the United States, or to any State regulatory or enforcement
agency, requesting such information for any authorized purpose under Federal or
State law, including but not limited to the administration or enforcement of
Federal or State laws concerning internet gambling, U.S. tax laws, consumer
protection, data protection, financial regulation, or for the purposes of any
civil or criminal investigation.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H77AE7EF3A65144A1AA7D2E828190EE41"><enum>(e)</enum><header>Assessments for
administrative expenses</header>
<paragraph display-inline="no-display-inline" id="H7262D53E5D8A40E8944520235429D972"><enum>(1)</enum><header>User
fees</header>
<subparagraph id="H32284570A2E644F0AB092856E8C20849"><enum>(A)</enum><header>In
general</header><text>The cost of administering 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 body receiving 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 body determines is necessary to meet the
qualified body’s expenses in carrying out such administration, review, or
examination.</text>
</subparagraph><subparagraph id="HD1843CA423A5487A98D31D206310C716"><enum>(B)</enum><header>Expenses for
review or examination</header><text>Expenses that are attributable to review or
examination of a particular applicant, licensee, or significant vendor shall be
assessed under subparagraph (A) against that applicant, licensee, or
significant vendor.</text>
</subparagraph><subparagraph id="H539A4423B3434B59B6581EF28B25859C"><enum>(C)</enum><header>Expenses for
general administration</header><text>Expenses for general administration shall
be assessed against all licensees equally.</text>
</subparagraph><subparagraph id="HFBD096470C7A4F6E9786B499EBCC21F9"><enum>(D)</enum><header>User fees
established by secretary</header>
<clause id="HF5BD07C4C3F8462B8BD561560B72734D"><enum>(i)</enum><header>In
general</header><text>The Secretary may establish user fees to be paid by
applicants, licensees, and significant vendors in amounts the Secretary
determines necessary to meet the Secretary’s cost of administering this
title.</text>
</clause><clause id="H3B99459AD5054BEDB4CC7759C4FD2724"><enum>(ii)</enum><header>Collection by
qualified bodies</header><text>Qualified bodies shall collect user fees
established under clause (i) from applicants, licensees, and significant
vendors and turn them over promptly to the Secretary.</text>
</clause><clause id="H7EA50CB7678D4893B1FFC1737E5DB3E5"><enum>(iii)</enum><header>Disposition of
user fees</header><text>Amounts assessed by the Secretary as user fees under
clause (i) shall—</text>
<subclause id="H74124353673545048D5BB33205F2382B"><enum>(I)</enum><text>be available to
the Secretary to cover expenses incurred by the Secretary in carrying out the
provisions of this title; and</text>
</subclause><subclause id="H32BE0BA1CA484A75AC573888C693DA93"><enum>(II)</enum><text>not be construed
to be Government funds or appropriated monies, or subject to apportionment for
the purposes of any other provision of law.</text>
</subclause></clause></subparagraph><subparagraph id="HDDFE49889D21417293FCBE8187983137"><enum>(E)</enum><header>Disposition of
user fees</header><text>Except as provided in subparagraph (D), amounts
assessed by a qualified body as user fees under this paragraph shall—</text>
<clause id="H45E182FB4B1F4A598E9396075F484B55"><enum>(i)</enum><text>be
available to the qualified body to cover expenses incurred by the qualified
body in carrying out the provisions of this title; and</text>
</clause><clause id="H94436953587E42C7BFC1872FB0A8C500"><enum>(ii)</enum><text>except in the
case of the Office of Internet Gambling Oversight established under section
104, not be construed to be Government funds or appropriated monies, or subject
to apportionment for the purposes of any other provision of law.</text>
</clause></subparagraph><subparagraph id="H49A2B0A2E40D48F8AF9678B62AD3C343"><enum>(F)</enum><header>Collection</header><text>If
a licensee or significant vendor fails to pay a user fee to a qualified body
under this paragraph after the assessment of the fee has become final—</text>
<clause id="H7EBAEC3A41F94EB3AD6AE81E04547DE0"><enum>(i)</enum><text>the
qualified body may recover the amount assessed by action in a court of the
State or Indian tribe of the qualified body or in the United States district
court in the State in which such qualified body is located, along with any
costs of collection and attorney fees; and</text>
</clause><clause id="HE42E1E7C4E9C4F25993DCAEC87E07F78"><enum>(ii)</enum><text>such failure may
be grounds for denial of an application for a license under this title or
revocation of a license or certificate of suitability under this title.</text>
</clause></subparagraph><subparagraph id="H3812FE87289C4139962AF2989BC88B44"><enum>(G)</enum><header>Payment of
significant vendor user fees by applicants and licensees</header><text>A user
fee assessed against a significant vendor may be paid by an applicant or
licensee on behalf of the significant vendor.</text>
</subparagraph></paragraph><paragraph id="H9CF6DF281BD340428DE792103C47167E"><enum>(2)</enum><header>Direct and
exclusive obligation of licensee</header><text>With respect to a licensee, a
user fee shall be the direct and exclusive obligation of the licensee and may
not be deducted from amounts available as deposits to any person placing a bet
or wager with the licensee.</text>
</paragraph></subsection><subsection id="HABFF69010EAA4B7F88E5DB89FA525D45"><enum>(f)</enum><header>Approval of
license</header>
<paragraph id="HC6A60773B29F49BDBBD320E93CB765F6"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), a qualified body may
issue to an applicant a license under this title for the operation of an
Internet gambling facility if the applicant meets the criteria established by
the qualified body under this title.</text>
</paragraph><paragraph id="H73AD7A87734B43D3AE02E6DAFD8C45F4"><enum>(2)</enum><header>Authority of
secretary to revoke licenses</header>
<subparagraph id="H38F8B1AA490A495E9F30469AC5DF7D8A"><enum>(A)</enum><header>In
general</header><text>Notwithstanding any license or certificate of suitability
issued by a qualified body, the Secretary may suspend or revoke such license or
certificate if the Secretary has reason to believe that the recipient does not
meet the suitability requirements established under subsection (d) or, as
applicable, any other requirement imposed on a licensee under this
title.</text>
</subparagraph><subparagraph id="H749F160163674DB985F6FD78F1B0E8FE"><enum>(B)</enum><header>No authority to
overturn denials and terminations</header><text>The Secretary may not overturn
a decision by a qualified body (other than the Office of Internet Gambling
Oversight) to deny or to terminate a license or to deny or revoke a certificate
of suitability.</text>
</subparagraph></paragraph><paragraph id="H6ED4BE9698014CF59CCAA1D2E05955B8"><enum>(3)</enum><header>Conflicts
between qualified bodies</header><text>If a qualified body denies a license,
terminates a license, denies a certificate of suitability, or revokes a
certificate of suitability to a person and within 1 year of such denial,
termination, or revocation another qualified body grants such person a license
or certificate of suitability, the Secretary shall—</text>
<subparagraph id="H4D2987C0552742CC93343AB418769863"><enum>(A)</enum><text>commence a review
of such license or certificate of suitability; and</text>
</subparagraph><subparagraph id="H3F6E31AE451C4CD0A6D75E8D60BB66E5"><enum>(B)</enum><text>not later than 90
days after such commencement, determine whether to act under paragraph
(2).</text>
</subparagraph></paragraph><paragraph id="H3635FF45030D4EC5812ED0B7559FF5A7"><enum>(4)</enum><header>Control
defined</header><text>In this subsection, the term <quote>control</quote>, with
respect to a person, means 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 ownership of voting securities, through a
management, executive officer, or board position, by shareholders or similar
agreement, or otherwise.</text>
</paragraph></subsection><subsection id="H2687C61683994CADA1E7E24737D968A0"><enum>(g)</enum><header>Safeguards
required of licensee</header>
<paragraph id="H92725D1EBDC446C1BA3DFB2FF19C15D7"><enum>(1)</enum><header>In
general</header><text>No qualified body shall issue a license under this title
unless the qualified body—</text>
<subparagraph id="H28A0CAEE27AE44B6B7D888FDA9EA5629"><enum>(A)</enum><text>prescribes
regulations that prohibit a person from receiving or retaining a license under
this title unless the person maintains or requires mechanisms so that the
requirements described in paragraph (2) are met with respect to the operation
of an Internet gambling facility; and</text>
</subparagraph><subparagraph id="H33A67A8119B344518316E1AA08C3AD74"><enum>(B)</enum><text>reviews the
applicant’s ability to comply with the requirements of this subsection,
including by testing the applicant’s systems and software, or by mandating such
testing by an independent, qualified entity.</text>
</subparagraph></paragraph><paragraph id="HEEE29D5E538E4F59A348D7EF89D64404"><enum>(2)</enum><header>Safeguards</header><text>The
requirements described in this paragraph are as follows:</text>
<subparagraph id="H9E9D46233E7F428CB9A31DF29D018B46"><enum>(A)</enum><header>Prohibition on
underage gaming</header><text>Appropriate safeguards to ensure, to a reasonable
degree of certainty, that the individual placing a bet or wager is not younger
than 21 years of age, at the time of registration and all log ons.</text>
</subparagraph><subparagraph id="H54B19B949D1549CE8A1ED09EE5FE0DBE"><enum>(B)</enum><header>Prohibited
locations</header><text>Appropriate safeguards to ensure, to a reasonable
degree of certainty, that the individual placing a bet or wager is physically
located in a jurisdiction that has opted in under section 108 at the time the
bet or wager is placed, at the time of registration and all log ons.</text>
</subparagraph><subparagraph id="H9D3DD5E1B0EF450E9D1718795FC1A8CD"><enum>(C)</enum><header>Collection or
reporting of customer taxes</header><text>Appropriate mechanisms to ensure, to
a reasonable degree of certainty, that all taxes relating to Internet gambling
from persons engaged in bets or wagers relating to such Internet gambling are
collected or reported, as required by law, at the time of any payment of
proceeds of such bets or wagers.</text>
</subparagraph><subparagraph id="H398F343E01CF48A895E6549BBA833EE0"><enum>(D)</enum><header>Collection or
reporting of taxes of licensee</header><text>Appropriate mechanisms to ensure
that all taxes relating to the operation of an Internet gambling facility from
any licensee are collected as required by law and that adequate records to
enable later audit or verification are maintained.</text>
</subparagraph><subparagraph id="H41AE3811DEA1424682B5D7D35A7FB5E0"><enum>(E)</enum><header>Reporting of
fees of licensee</header><text>Appropriate mechanisms to ensure that adequate
records are maintained to enable later audit or verification that the licensee
has paid all fees required under this title.</text>
</subparagraph><subparagraph id="HF74C89EC07A34442ACF97A1D2D255DE2"><enum>(F)</enum><header>Safeguards
against financial crime</header><text>Appropriate safeguards to prevent, to a
reasonable degree of certainty, fraud, money laundering, tax evasion, and
terrorist financing.</text>
</subparagraph><subparagraph id="H3956663AF45D47658EF11FEEEAE928AF"><enum>(G)</enum><header>Safeguards
against compulsive play</header><text>Appropriate safeguards to ensure, to a
reasonable degree of certainty, compliance with the requirements of section
107(b).</text>
</subparagraph><subparagraph id="HE5DD5DFB1B054EBCBC48D5C03BE1F743"><enum>(H)</enum><header>Privacy
safeguards</header><text>Appropriate safeguards to protect, to a reasonable
degree of certainty, the privacy and Internet security of any person engaged in
bets or wagers with the licensee’s Internet gambling facility.</text>
</subparagraph><subparagraph id="H3CDE150DB2294B17AA77E995257BF188"><enum>(I)</enum><header>Payment of
assessments</header><text>Appropriate mechanisms to ensure that any user fee
required under subsection (e) is paid to the qualified body.</text>
</subparagraph><subparagraph id="H7BD9D2D0130649928A1B561A7115AF45"><enum>(J)</enum><header>Honest
games</header><text>Appropriate safeguards to ensure, to a reasonable degree of
certainty, that Internet gambling games are fair and honest, and to prevent, to
a reasonable degree of certainty, cheating, including collusion, and use of
cheating devices, including use of software programs (sometimes referred to as
<quote>bots</quote>) that make bets or wagers according to algorithms.</text>
</subparagraph><subparagraph id="H207B5D6C88874646BE128AB8E65F3C6B"><enum>(K)</enum><header>Segregation of
player funds</header><text>Appropriate safeguards to ensure player funds are
held in accounts segregated from the funds of licensees and are otherwise
protected from corporate insolvency, financial risk, or criminal or civil
actions against the licensee.</text>
</subparagraph><subparagraph id="HE47B585D95B74C58B66659065EB23A01"><enum>(L)</enum><header>Other
requirements</header><text>Such other mechanisms and safeguards as the
qualified body may establish by regulation.</text>
</subparagraph></paragraph></subsection><subsection id="H39450417677742A68BD347A5373C65A1"><enum>(h)</enum><header>Location of
remote gaming equipment</header>
<paragraph id="H75EA9FDFB704460592F878FC8A6EDB9A"><enum>(1)</enum><header>Within the
United States</header><text>A licensee shall maintain its remote gaming
equipment within the territory of the United States throughout the term of its
license.</text>
</paragraph><paragraph id="HEA0C89B2FAE94ADC9C4ACAD37A9E5B78"><enum>(2)</enum><header>Within territory
of qualified body</header><text>A qualified body may require a licensee of the
qualified body to locate the remote gaming equipment of the licensee within the
territory of the State or Indian tribe of the qualified body if the qualified
body determines that such requirement will advance the regulatory interests of
this title.</text>
</paragraph></subsection><subsection id="H6BCE26A8EE1A4877A2689331ECE2C87F"><enum>(i)</enum><header>License is a
privilege not a right</header>
<paragraph id="H9A1F30BA68864EB08B34358F82975FF9"><enum>(1)</enum><header>In
general</header><text>A decision by a qualified body not to grant a person a
license or certificate of suitability, or to terminate a license or revoke a
certificate of suitability, is not reviewable under the law of any jurisdiction
other than the jurisdiction of the qualified body.</text>
</paragraph><paragraph id="H06AA8FD29A904464A37E015664C1FFB3"><enum>(2)</enum><header>Appeal</header><text>With
respect to a decision described in paragraph (1) of a qualified body, the State
or Indian tribe of the jurisdiction of the qualified body may, but need not,
provide an opportunity to appeal such decision.</text>
</paragraph></subsection><subsection id="H5D18879322D0412599DF7AC5A639D6C6"><enum>(j)</enum><header>Term, renewal,
and transfer of license</header>
<paragraph id="H1D2C2E08B7E84BDD85C98D2694074885"><enum>(1)</enum><header>Term</header><text>Any
license issued under this title shall be issued for a 5-year term beginning on
the date of issuance.</text>
</paragraph><paragraph id="H2AFE64BA3D344AECBCC229F75981B0CB"><enum>(2)</enum><header>Renewal</header><text>A
license may be renewed in accordance with requirements prescribed by the
qualified body that issued the license under this title.</text>
</paragraph><paragraph id="H261994729E5C48569CF9A52BAAA35068"><enum>(3)</enum><header>Transfer</header><text>A
transfer of a license, change of control of a licensee, or change in
significant vendor shall require prior approval by the qualified body that
issued the license. The qualified body shall at a minimum ensure the
suitability requirements of subsection (d) continue to be satisfied before
approving any such transfer or change.</text>
</paragraph></subsection><subsection id="HC0EBCEDC82724202AD0908F0CF2F50C9"><enum>(k)</enum><header>Administrative
provisions</header>
<paragraph id="H5B18FBB024874F8BAEE7B518CB097BC1"><enum>(1)</enum><header>Determination of
internet gambling</header>
<subparagraph id="H78D45566BD374A2EBA490667D2F16542"><enum>(A)</enum><header>Initial
determination by qualified body</header><text>A determination whether a game,
hand, tournament, or other contest of a licensee is authorized Internet
gambling under this Act, and not prohibited sports-related Internet gambling,
shall be made in the first instance by the qualified body that issued the
license to such licensee under this title.</text>
</subparagraph><subparagraph id="H4B78F7D93E8D46F984512B3F8D29D38E"><enum>(B)</enum><header>Challenges</header>
<clause id="HD27FD07619C14504A834CF649A6FD23C"><enum>(i)</enum><header>In
general</header><text>A licensee or qualified body may challenge whether a
game, hand, tournament, or other contest of another licensee is sports-related
Internet gambling.</text>
</clause><clause id="HC983A9E935894C5686D23145CCB33DBA"><enum>(ii)</enum><header>Challenge made
with secretary</header><text>A challenge made under clause (i) shall be made
with the Secretary.</text>
</clause><clause id="H4489A7167098443BBA53F370A6E68A0A"><enum>(iii)</enum><header>Determination
made by secretary within 30 days</header><text>If a challenge is made under
clause (i), the Secretary shall make a determination whether the game, hand,
tournament, or other contest is sports-related Internet gambling not later than
30 days after the date on which the challenge is made.</text>
</clause><clause id="H3B5E7383E8B24506891553003688003D"><enum>(iv)</enum><header>Operation until
determination</header><text>A licensee that offers a game, hand, tournament, or
other contest that is challenged under clause (i) may continue to offer such
game, hand, tournament, or other contest until the Secretary makes a
determination under clause (iii).</text>
</clause></subparagraph><subparagraph id="H01AA823AD783404E86E535A73C81A662"><enum>(C)</enum><header>Appeals</header>
<clause id="H13C954C5477D4DDB81796E4B16112646"><enum>(i)</enum><header>In
general</header><text>Not later than 30 days after the date on which the
Secretary makes a determination under subparagraph (B)(iii), a licensee or a
qualified body may appeal such determination under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/7">chapter 7</external-xref> of title 5, United
States Code.</text>
</clause><clause id="HC41312BE0D7543899C2A0A544F2F84A1"><enum>(ii)</enum><header>Operation
pending appeal</header><text>During the period in which a game, hand,
tournament, or other contest is being challenged through an appeal under clause
(i), the United States District Court for the District of Columbia may allow a
licensee to continue offering the game, hand, tournament, or other contest in
full compliance with the terms of its existing license and any other conditions
the court considers necessary, if the court determines that—</text>
<subclause id="H4C1D0F11D5F14980A1A90C10E34D9156"><enum>(I)</enum><text>the licensee has a
reasonable likelihood of success on the merits; and</text>
</subclause><subclause id="H659407BA20E546EDACA8020BFC0550BD"><enum>(II)</enum><text>allowing the
licensee to continue offering the challenged game, hand, tournament, or other
contest while the appeal is pending will not threaten the public
interest.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="H64D6BFF207C94063B9EBEC46E6739187"><enum>(2)</enum><header>Challenges under
State law</header><text>Except as provided in paragraph (1) and unless
otherwise specifically provided in this title, actions taken by a qualified
body other than the Office of Internet Gambling Oversight may be challenged by
applicants and licensees only as permitted under the law of the State or Indian
tribe in which the qualified body is located.</text>
</paragraph><paragraph id="H3A4AC5BBE7E044839589FE88E4D4D935"><enum>(3)</enum><header>Summons</header>
<subparagraph id="HDCE8C26267A54220A03645E4D7BD0935"><enum>(A)</enum><header>In
general</header><text>The Secretary may issue a summons with respect to an
applicant or licensee necessary to carry out the provisions of this
title.</text>
</subparagraph><subparagraph id="H6ACE8E4D69B4411596A2BC53BC7A2584"><enum>(B)</enum><header>Production at
designated site</header><text>A summons issued by the Secretary pursuant to
this paragraph may require that books, papers, records, or other data stored or
maintained at any place be produced at any—</text>
<clause id="HD796FA5800DD44878E5FAE52D2F93CDF"><enum>(i)</enum><text>business location
of a licensee or applicant for a license;</text>
</clause><clause id="H0788D49D78F241DEB393C0C5E3E43DF9"><enum>(ii)</enum><text>designated
location in the State or Indian lands of the applicable qualified body;
or</text>
</clause><clause id="HF20698D572604E48A627DE5F389F8FFE"><enum>(iii)</enum><text>designated
location in the District of Columbia.</text>
</clause></subparagraph><subparagraph id="HB5A104D80803430498122C56A483C7B0"><enum>(C)</enum><header>No liability for
expenses</header><text>The Secretary shall not be liable for any expense
incurred in connection with the production of books, papers, records, or other
data under this paragraph.</text>
</subparagraph><subparagraph id="HC476C6593DA842EAA92F81BBE17FDCED"><enum>(D)</enum><header>Service of
summons</header><text>Service of a summons issued under this subsection may be
by registered mail or in such other manner calculated to give actual notice as
determined by the Secretary.</text>
</subparagraph><subparagraph id="HFF0BE02541CE43FFAD456B0AD1E17BB7"><enum>(E)</enum><header>Authorization to
invoke aid of courts</header><text>The Secretary may invoke the aid of any
court of the United States to compel compliance with the summons within the
jurisdiction of which—</text>
<clause id="H307BE28C62DC4193A201458941B2880E"><enum>(i)</enum><text>the
investigation which gave rise to the summons or the examination is being or has
been carried on;</text>
</clause><clause id="H5EE4AF15E7004E9DA400664E8278EE83"><enum>(ii)</enum><text>the
person summoned is an inhabitant; or</text>
</clause><clause id="H9F985E67AF284C1294F624DEFA61C8DF"><enum>(iii)</enum><text>the person
summoned carries on business or may be found.</text>
</clause></subparagraph><subparagraph id="H2C190B3C8DC1404AB5A0CFEF51E051E5"><enum>(F)</enum><header>Power of courts
to compel appearance</header><text>The court may issue an order requiring the
person summoned to appear before the Secretary—</text>
<clause id="H24322B1A07394984A0EAA0FAA676FE56"><enum>(i)</enum><text>to
produce books, papers, records, and other data;</text>
</clause><clause id="HFB5C2E5494FF4994ACB268620ED32E91"><enum>(ii)</enum><text>to
give testimony as may be necessary to explain how such material was compiled
and maintained;</text>
</clause><clause id="HA4EE031607584DBCA574F42D9B713277"><enum>(iii)</enum><text>to
allow the Secretary to examine the business of a licensee; and</text>
</clause><clause id="HB39987473151472E8BCCA1F5D05F8801"><enum>(iv)</enum><text>to
pay the costs of the proceeding.</text>
</clause></subparagraph><subparagraph id="H33BCDF1F45054CA2A28C5F0E6EF9B4D6"><enum>(G)</enum><header>Contumacy or
refusal</header><text>Any failure 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.</text>
</subparagraph></paragraph></subsection><subsection id="H4A62035B3F2C413C9D1458C30FE22B97"><enum>(l)</enum><header>Disciplinary
action</header>
<paragraph id="HFABC8C4371F14E679CEBC7811E03CA4A"><enum>(1)</enum><header>In
general</header><text>A licensee may be subject to disciplinary action,
including the imposition of civil penalties or suspension or revocation of its
license, by a qualified body that issued a license to the licensee or by the
Secretary if the licensee fails to comply with any provision of this title, any
regulation prescribed thereunder, or any other applicable provision of State or
tribal law.</text>
</paragraph><paragraph id="HA8696C6B87E34381934D0FAA257FA0B8"><enum>(2)</enum><header>Initiating
agency</header><text>Only the Secretary or the qualified body which granted the
license to a licensee may initiate disciplinary action under this title against
the licensee.</text>
</paragraph><paragraph id="H9E0B511F747248A1B31E3A11FF4F0825"><enum>(3)</enum><header>Savings
provision</header><text>Nothing in this subsection shall be construed to limit
or alter the application of any law other than this title to a licensee or
affiliated person, or to effect the enforcement of such law by the appropriate
law enforcement administrative, or regulatory entity.</text>
</paragraph><paragraph id="HFAE3DFD94C01485BA2FB9E3700B13743"><enum>(4)</enum><header>Disciplinary
procedures</header>
<subparagraph id="H5A0157D937004F0C998FB9DC22E5344A"><enum>(A)</enum><header>In
general</header><text>A qualified body 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 action and the proposed penalty that is being
sought, which may include any or all of the imposition of a fine as provided
pursuant to subsection (m)(1) or limitation, condition, suspension or
revocation of the license.</text>
</subparagraph><subparagraph id="HB757B38ACB4C4A938235C24CAFC0C436"><enum>(B)</enum><header>In accordance
with law of jurisdiction of qualified body</header><text>The process for
disciplinary action under this subsection shall proceed according to the law of
the jurisdiction of the applicable qualified body.</text>
</subparagraph></paragraph><paragraph id="H65F2D5466C404447A5D6900E442C3C52"><enum>(5)</enum><header>Finality of
action and appeals</header>
<subparagraph id="HE72BEBDAF7774474945056D564B19087"><enum>(A)</enum><header>Finality</header><text>Any
disciplinary action under this subsection shall be treated as a final
action.</text>
</subparagraph><subparagraph id="HE98E6B851BE84025A491851E3C26A2A7"><enum>(B)</enum><header>Action by
qualified bodies</header><text>A licensee aggrieved by disciplinary action
under this subsection by a qualified body may file an appeal in the
jurisdiction where the qualified body taking such action is located only to the
extent permitted by the law of such jurisdiction, or in Federal court as
authorized by Federal law.</text>
</subparagraph></paragraph><paragraph id="H4167D7D9F3F547F38E575AD3E990B323"><enum>(6)</enum><header>Pending
appeal</header><text>During the period in which a suspension or revocation of
an existing license is being challenged through a pending judicial proceeding,
the court handling the challenge may allow the licensee to continue offering
bets and wagers in full compliance with the terms of its existing license and
any other conditions the court considers necessary, if the court determines
that—</text>
<subparagraph id="HD678E4B98D9E494985E23FE918255737"><enum>(A)</enum><text>the appellant has
a reasonable likelihood of success on the merits; and</text>
</subparagraph><subparagraph id="H737613053E08469D82008CCAC6922098"><enum>(B)</enum><text>allowing the
appellant to continue offering bets and wagers while the appeal is pending will
not threaten the public interest.</text>
</subparagraph></paragraph><paragraph id="H817A953E85B149FC92B37B15A2AC2C29"><enum>(7)</enum><header>Return of
customer funds</header><text>If a licensee’s license is revoked and no appeal
pursuant to paragraph (5) is pending, the licensee shall—</text>
<subparagraph id="HDF93A6DA51DB4A5FBDF543E7A0F2A32C"><enum>(A)</enum><text>to the degree
feasible, return all customer funds to United States customers in an orderly
manner not later than 30 days after the date of the revocation of the license;
and</text>
</subparagraph><subparagraph id="H93AD158518914C608B8D5F37D84A615E"><enum>(B)</enum><text>place in escrow
those sums return of which to United States customers is not feasible due to
change in customer address, bank details, or similar difficulty in an account
with a financial institution in the United States for safekeeping and orderly
disposition by the Secretary.</text>
</subparagraph></paragraph><paragraph id="H4C147C7B7EAC4A0C8A1BFB9692178E49"><enum>(8)</enum><header>Referral to
attorney general</header><text>If, in the course of carrying out the provisions
of this title, the Secretary or a qualified body finds a substantial basis to
believe that a person has violated section 103(a), the Secretary or qualified
body shall refer such matter to the Attorney General.</text>
</paragraph></subsection><subsection id="HD5E3D19B17D54A7F81653D0E523C3563"><enum>(m)</enum><header>Civil monetary
penalties</header>
<paragraph display-inline="no-display-inline" id="H55268431D20D4B3F8E19865064EF1B75"><enum>(1)</enum><header>In
general</header>
<subparagraph id="H843D1CE0B7AC43F1815FA775044E72F3"><enum>(A)</enum><header>Penalties
assessed by qualified bodies</header><text>A qualified body may assess upon any
licensee or other person subject to the requirements 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—</text>
<clause id="HF340EF71BEEA4F3CBCBC6302B6D8397E"><enum>(i)</enum><text>the
amount involved in the violation, if any;</text>
</clause><clause id="H862DC275C4B643EF9D2473FD011C19BC"><enum>(ii)</enum><text>$250,000 for an
individual and $750,000 for a corporation; or</text>
</clause><clause id="H9082236B27C744518E787ACAA66495FF"><enum>(iii)</enum><text>such other
amount as provided under the applicable State or tribal law of the qualified
body.</text>
</clause></subparagraph><subparagraph id="H8940F6C498E749CDB614113BE8C6F421"><enum>(B)</enum><header>Penalties
assessed by secretary</header><text>The Secretary may assess upon any licensee
or other person subject to the requirements 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—</text>
<clause id="HBD64518294E345FDBA7AEAE2E6A9F5DF"><enum>(i)</enum><text>the
amount involved in the violation, if any; or</text>
</clause><clause id="HC19A071918454EA0A9591BEE74D22105"><enum>(ii)</enum><text display-inline="yes-display-inline">$250,000 for an individual and $750,000 for
a corporation.</text>
</clause></subparagraph><subparagraph id="H477B45892A3B4932AF095C013F57F851"><enum>(C)</enum><header>Not
cumulative</header>
<clause id="H4B7A8CB6472C4082949B9B481FF17B20"><enum>(i)</enum><header>In
general</header><text>The penalties authorized under subparagraphs (A) and (B)
shall not be cumulative and only one such penalty may be assessed per
violation.</text>
</clause><clause id="H238D88563C724321B10EB4040CE19318"><enum>(ii)</enum><header>Construction</header><text>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 violations.</text>
</clause></subparagraph><subparagraph id="HB5F7E7F6A7BF4AF984246746FDB7E4AF"><enum>(D)</enum><header>Failure to
obtain a license</header><text>Notwithstanding any other provision of law, the
Secretary shall assess upon a person that is required to maintain a license
under this title, but fails to maintain a license under this title, a civil
penalty of not more than the greater of—</text>
<clause id="H40F0C65C9DCE4611A88031535ACFC379"><enum>(i)</enum><text>the
amount of bets or wagers taken by the person from players in the United States
during the period that a license was needed but not held by the person;
or</text>
</clause><clause id="H4B8AC56B25AB41728DB2BFD0ACA97FD1"><enum>(ii)</enum><text>$1,000,000 per
day that the person accepts bets or wagers from players in the United States
during the period that a license was needed but not held by the person.</text>
</clause></subparagraph><subparagraph id="HD3CF6CF70B484F0A9826D644E589A0CB"><enum>(E)</enum><header>Construction</header><text>Nothing
in this paragraph shall be construed to affect the ability of a law enforcement
official to seek criminal penalties against a person.</text>
</subparagraph></paragraph><paragraph id="H1368B3159A4F4AFD82A29F5F7448C51A"><enum>(2)</enum><header>Assessment</header>
<subparagraph id="HC6C3363750D94E06A24A51A559FDB4B7"><enum>(A)</enum><header>Enforcement by
qualified bodies</header><text>Qualified bodies and such other entities as are
authorized by applicable State or tribal law shall enforce the provisions of
this title under the law of the applicable State or Indian tribe, and penalties
shall be determined, reviewable, collectable, and disposed of as provided under
such law.</text>
</subparagraph><subparagraph id="H5D278B7419064C3AA93764F0308D85AB"><enum>(B)</enum><header>Enforcement by
secretary</header>
<clause id="HE250CF1225714AEFBEEED6C79B02C6E4"><enum>(i)</enum><header>Written
notice</header><text>Any penalty imposed under paragraph (1)(B) shall be
assessed and collected by the Secretary by written notice.</text>
</clause><clause id="H76B2B8C6C1B248DEAA1145170F93B03B"><enum>(ii)</enum><header>Finality of
assessment</header><text>If, with respect to any assessment under paragraph
(1)(B), a hearing is not requested pursuant to clause (v) within the period of
time allowed under such clause, the assessment shall constitute a final agency
order.</text>
</clause><clause id="HCEB5FF3BA0D24C2AA68ED053193A202B"><enum>(iii)</enum><header>Authority to
modify or remit penalty</header><text>The Secretary may compromise, modify, or
remit any penalty which the Secretary may assess or has already assessed under
paragraph (1)(B).</text>
</clause><clause id="HBFE724298AA8402384B3429526867A2C"><enum>(iv)</enum><header>Mitigating
factors</header><text>In determining the amount of any penalty imposed under
paragraph (1)(B), the Secretary shall take into account the appropriateness of
the penalty with respect to the following:</text>
<subclause id="HE24209702447474085EBAF4EB7287C7A"><enum>(I)</enum><text>The size of the
financial resources and the good faith of the person against whom the penalty
is assessed.</text>
</subclause><subclause id="H35D07F84C46F4ED2895CA6537329297B"><enum>(II)</enum><text>The gravity of
the violation.</text>
</subclause><subclause id="H225ADE0151644E7F9BF3B825C9418314"><enum>(III)</enum><text>The history of
previous violations.</text>
</subclause><subclause id="H340A0EBFF40B478E83B9DB42708FAD4A"><enum>(IV)</enum><text>Such other
matters as justice may require.</text>
</subclause></clause><clause id="H8FCB6B260AA2491E81FD991451DFCE73"><enum>(v)</enum><header>Hearing</header><text>The
person against whom any penalty is assessed under paragraph (1)(B) shall be
afforded a hearing by the Secretary if such person submits to the Secretary a
request for such hearing not later than 20 days after the date of the issuance
of the notice of assessment.</text>
</clause><clause id="HADF08181F7864167B7ED95016D6125F1"><enum>(vi)</enum><header>Collection</header>
<subclause id="HA1CFFF94934F4EB5AD2E007EEB614FF0"><enum>(I)</enum><header>Referral</header><text>If
any person fails to pay an assessment after any penalty assessed under this
subparagraph has become final, the Secretary shall recover the amount assessed
by action in the appropriate United States district court.</text>
</subclause><subclause id="H5940E3ABA2B3483C902ED4078E683A94"><enum>(II)</enum><header>Scope of
review</header><text>In any civil action under subclause (I), the validity and
appropriateness of the penalty shall be subject to review for abuse of agency
discretion.</text>
</subclause></clause><clause id="H4869C56FDEEE4B9D9B2691FE0CC51B49"><enum>(vii)</enum><header>Disbursement</header><text>All
penalties collected under authority of paragraph (1)(B) shall be deposited into
the Treasury of the United States.</text>
</clause></subparagraph></paragraph><paragraph id="HBD3554A3A2B04E2B88099ABEC2F16AAC"><enum>(3)</enum><header>Condition for
licensure</header><text>Payment by a licensee of any civil penalty assessed
under this subsection that has become final shall be a requirement for the
retention of its license.</text>
</paragraph></subsection><subsection id="H172C4C5F123E4884B8A19BD01931DD33"><enum>(n)</enum><header>List of licensed
internet gambling facilities</header><text>The Secretary shall establish and
maintain a list of all Internet gambling facilities licensed under this
section. The Secretary shall update such list regularly and make such list
publicly available on an Internet website.</text>
</subsection></section><section id="H86E1C9173CE34AF99D4CE60399C86D78"><enum>107.</enum><header>Compulsive
gaming, responsible gaming, and self-exclusion program requirements</header>
<subsection id="H65BD91F37B8344478A4F68137CA43560"><enum>(a)</enum><header>Regulations
required</header>
<paragraph id="H3C82D156D24148DAAEC7F0B4EDD283F6"><enum>(1)</enum><header>In
general</header><text>Each qualified body shall, before issuing any licenses
under this title, prescribe regulations for the development of a Compulsive
Gaming, Responsible Gaming, and Self-Exclusion Program that each licensee of
that qualified body shall implement as a condition of licensure.</text>
</paragraph><paragraph id="HC6D9D940AF97497E8AAD52160B7EB5A9"><enum>(2)</enum><header>Outreach</header><text>The
regulations required by paragraph (1) shall also provide for the establishment
of a program to alert the public to the existence, consequences, and
availability of the self-exclusion list established under subsection
(c).</text>
</paragraph></subsection><subsection id="H4BBBE912C1EE4B1DBB07236012F60DAB"><enum>(b)</enum><header>Minimum
requirements</header><text>Under each program under subsection (a), a licensee
shall, under the scope of the license issued the licensee under this title, at
a minimum—</text>
<paragraph id="H5FD92F1E6EF24BC584CBAC501846BD94"><enum>(1)</enum><text>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 provided via a
prominently displayed hyperlink or comparable mechanism;</text>
</paragraph><paragraph id="H2C083D0C2D454FB2ACE93AB05C569D54"><enum>(2)</enum><text>provide
informational materials about responsible gaming to any player that requests
such materials;</text>
</paragraph><paragraph id="HA41996EF717A45B59801F773DD996E09"><enum>(3)</enum><text display-inline="yes-display-inline">make continuously available individualized
responsible gaming options that any customer may choose, including allowing
customers to self-limit deposits amounts, frequency of play, and losses, as
well as 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
body may consider appropriate;</text>
</paragraph><paragraph id="H1F98097527E945C4A9B5651B746C3DB9"><enum>(4)</enum><text>ensure to a
reasonable degree of certainty that persons on the list of self-excluded
persons established pursuant to subsection (c) are prevented from initiating
any bets or wagers within the scope of this title; and</text>
</paragraph><paragraph id="H30171EFB4AA74E75B5E7BBFE5A168AA7"><enum>(5)</enum><text>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
gambling facility of the licensee are offered.</text>
</paragraph></subsection><subsection id="H81F9FC0ADDD145FB899F0A9EFF459C54"><enum>(c)</enum><header>List of persons
self-Excluded</header>
<paragraph display-inline="no-display-inline" id="H9830FF90AFB0489B97485EDAC2E2EE42"><enum>(1)</enum><header>Establishment</header>
<subparagraph id="H2EBC755027584B41A5BDF99E596BE283"><enum>(A)</enum><header>Lists maintained
by qualified bodies</header>
<clause id="HAA44526D2B334B88B714FE7B38F40219"><enum>(i)</enum><header>In
general</header><text>Each qualified body shall establish and maintain a list
of persons self-excluded from playing Internet gambling through Internet
gambling facilities licensed by the qualified body.</text>
</clause><clause id="HC1B2F9D8AA244C41A78F571FE3B03A1E"><enum>(ii)</enum><header>Submittal to
secretary</header><text>At the end of each day, each qualified body shall
submit to the Secretary a current copy of the list established and maintained
by the qualified body under clause (i).</text>
</clause></subparagraph><subparagraph id="HB620BABFAA944253A334BC199F96F955"><enum>(B)</enum><header>Master list
maintained by secretary</header>
<clause id="H8A84AAE713794289B2330152D99A4FE6"><enum>(i)</enum><header>In
general</header><text>The Secretary shall establish and maintain a master list
of all persons self-excluded from playing Internet gambling through Internet
gambling facilities licensed under this title. Such list shall consist of all
persons submitted under subparagraph (A)(ii).</text>
</clause><clause id="H4914C8C763BA4B59ABC30BFB88DCB51A"><enum>(ii)</enum><header>Availability</header><text>The
Secretary shall make the master list established and maintained under clause
(i) available to all qualified bodies and licensees on an ongoing basis and
licensees shall ensure to a reasonable degree of certainty that persons on the
master list of self-excluded persons are prevented from initiating any bets or
wagers within the scope of this title.</text>
</clause><clause id="HF115FBE9CFF443F38974766A4DB65E09"><enum>(iii)</enum><header>Sharing of
information</header><subclause commented="no" display-inline="yes-display-inline" id="HC0B46EFF9B4C4FAB9130243213BBB940"><enum>(I)</enum><text display-inline="yes-display-inline">Notwithstanding any other provision of law,
qualified bodies and licensees may share information relating to persons on the
master list among one another and with other regulators, whether Federal,
State, tribal, local, or foreign, for the purpose of facilitating the
prevention of self-excluded persons from initiating any bets or wagers within
the scope of this title.</text>
</subclause><subclause id="H0B2BFD0E9F9942DBA62E7A3C081A66A1" indent="up1"><enum>(II)</enum><text display-inline="yes-display-inline">The
Secretary shall establish appropriate safeguards for the purpose of protecting
the confidentiality of any personal information shared pursuant to this clause,
to prevent the disclosure of such information to unauthorized persons or for
any purpose other than facilitating the prevention of self-excluded persons
from initiating any bets or wagers within the scope of this title.</text>
</subclause></clause></subparagraph><subparagraph id="HA9A08A746C4945D8A71179EE42107407"><enum>(C)</enum><header>Placement
request</header><text>Any person may request placement on the list of self-
excluded persons by—</text>
<clause id="HB567643D8BEA4141B1AEC418CF29B8CF"><enum>(i)</enum><text>acknowledging in a
manner to be established by each qualified body with respect to its licensees
that the person wishes to be denied gaming privileges within the scope of this
title; and</text>
</clause><clause id="HCBF0915AC51D467FBE9280F67240DFEC"><enum>(ii)</enum><text>agreeing that,
during any period of voluntary exclusion, the person may not participate in
Internet gambling or collect any winnings or recover any losses resulting from
any gaming activity at any Internet gambling facility of a licensee.</text>
</clause></subparagraph></paragraph><paragraph id="H52BA8A458BC8409F9D5E45BF783F7892"><enum>(2)</enum><header>Limitation on
liability</header>
<subparagraph id="HF3EF7C9B00B34E3AA8DA30B2F3041F5F"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), the United
States, the Secretary, a qualified body, the State or Indian tribe in which
that qualified body is located, an enforcement agent, licensee, or any employee
or agent thereof, shall not be liable to any self-excluded person or to any
other party in any judicial or administrative proceeding for any harm, monetary
or otherwise, which may arise as a result of—</text>
<clause id="H98BA8309DAE94077A1876A745510A63B"><enum>(i)</enum><text>any
failure to withhold gaming privileges from, or to restore gaming privileges to,
a self-excluded person;</text>
</clause><clause id="H58DB66207AA04BBEA5CDC296C7B7F490"><enum>(ii)</enum><text>otherwise
permitting a self-excluded person to engage in gaming activity while on the
list of self-excluded persons; or</text>
</clause><clause id="H59EE90AE444646898D74212F2ED3A870"><enum>(iii)</enum><text>disclosure to
licensees, significant vendors, or employees or agents of licensees or
significant vendors of the fact that an individual has been placed on the list
of self-excluded persons and of other information that is reasonably necessary
to identify that individual in order to carry out this subsection, including
the address, date of birth, and taxpayer identification number of the
individual.</text>
</clause></subparagraph><subparagraph id="H6D100297B7F449F99468ABAD53B89272"><enum>(B)</enum><header>Licensees</header><text>A
licensee or employee or agent thereof may be liable to a self- excluded person
in a judicial or administrative proceeding for a harm described in subparagraph
(A) to the extent provided under the law of the State or Indian tribe of the
qualified body that issued the license.</text>
</subparagraph><subparagraph id="H63F6EBC747D04B74BDD1A449F4581423"><enum>(C)</enum><header>Rule of
construction</header><text>Nothing in this paragraph shall be construed to
prevent the Secretary or a qualified body from assessing a regulatory sanction
against a licensee or person for failing to comply with a provision of this
section or a regulation prescribed thereunder or for misuse of any list of
self-excluded persons for purposes not authorized under this section.</text>
</subparagraph></paragraph><paragraph id="H98C5AB22C04C4AF5AF0987077D35339D"><enum>(3)</enum><header>Disclosure
provisions</header>
<subparagraph id="H0263F3163D0548E688D21E0E8746DB35"><enum>(A)</enum><header>In
general</header><text>Notwithstanding any other provision of Federal, State, or
tribal law, the list of self-excluded persons shall not be open to public
inspection.</text>
</subparagraph><subparagraph id="H9D37199F35184606AC9189E2F020CE3C"><enum>(B)</enum><header>Affiliate
disclosure</header><text>If necessary to effectuate the self-exclusion purposes
of this subsection, any licensee may disclose the identities of persons on the
self- excluded list to any significant vendor, service provider, or affiliated
company to the extent that the significant vendor, service provider, or
affiliated company maintains such information under confidentiality provisions
comparable to those in this subsection.</text>
</subparagraph></paragraph></subsection><subsection id="H00EBEC44A8414C86A2ED3888E694748D"><enum>(d)</enum><header>Gaming by
prohibited persons</header>
<paragraph id="HA8983B1D7D0A4197AFC5B78D209BE926"><enum>(1)</enum><header>Prohibition on
benefitting from prohibited gaming activity</header><text>A person who is
prohibited from gaming with a licensee by law, or by order of the Secretary, a
qualified body, or any court of competent jurisdiction, including any person on
the self-exclusion list under subsection (c), shall not collect, in any manner
or proceeding, any winnings or recover any losses arising as a result of
prohibited gaming activity with a licensee.</text>
</paragraph><paragraph id="H96D3A64B2EBD40B9A034FD375277B4A6"><enum>(2)</enum><header>Forfeiture</header><text>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 prohibited person by a licensee as a
result of bets or wagers made by a prohibited person while the applicable
prohibition is effective shall be subject to forfeiture by order of the
Secretary or a qualified body, following notice to the prohibited person and
opportunity to be heard.</text>
</paragraph><paragraph id="H427997B367934506AD3492BF2830A7C4"><enum>(3)</enum><header>Deposit of
forfeited funds</header><text>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 body, as provided by the applicable State or tribal
law.</text>
</paragraph></subsection><subsection id="H0184879E8F30473BAF7B36759981063F"><enum>(e)</enum><header>Administrative
provisions</header>
<paragraph id="HF0730DBBFD8E40E89E3A30D3E83ACAA6"><enum>(1)</enum><header>No duty to
identify or exclude compulsive players not on list</header><text>No provision
of this section shall be construed as creating a legal duty in the Secretary, a
qualified body, a licensee, or any employee or agent thereof to identify or to
exclude compulsive players not on the list of self-excluded persons.</text>
</paragraph><paragraph id="HF6E222C1503F4744B25BA60A5C969287"><enum>(2)</enum><header>No cause of
action</header><text>The Secretary, a qualified body, 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.</text>
</paragraph><paragraph id="H7F6DAE485F294B42A708931B405B1F52"><enum>(3)</enum><header>No private right
of action</header><text>Nothing in this section shall be construed to create a
private right of action.</text>
</paragraph></subsection></section><section id="H6D443240DCD14A8D8ED0E45ACD7A0513"><enum>108.</enum><header>Prohibition on
use of licenses in certain States and Indian lands</header>
<subsection id="H909338043EB440B58E87D46D258373AF"><enum>(a)</enum><header>In
general</header><text>Internet gambling provided by Internet gambling
facilities licensed under this title shall be lawful in the United States only
with respect to the acceptance of bets or wagers from individuals located in
States and Indian lands that have opted-in under this section.</text>
</subsection><subsection id="H3137CC2202E54397BC6517FC61E77019"><enum>(b)</enum><header>State
participation</header>
<paragraph id="HB7EBA7D2920B47C89D4929399361FC90"><enum>(1)</enum><header>Opt-in
election</header><text>A State shall be considered to have opted-in under this
section if its Governor or any other person authorized to make such
notification under the laws of such State has not notified the Secretary within
120 days of enactment that—</text>
<subparagraph id="H87C495492760470F909DFB4418FDC023"><enum>(A)</enum><text>Internet gambling
is prohibited in such State, or</text>
</subparagraph><subparagraph id="H613B3F2348C442DF9D1936DC99B80F10"><enum>(B)</enum><text>the State declines
to participate in Internet gambling authorized under this Act.</text>
</subparagraph></paragraph><paragraph id="H0FDF7A4132BA40C794FD965934B172D8"><enum>(2)</enum><header>Opt-out
election</header><text>A State shall be considered not to have opted-in under
this section if—</text>
<subparagraph id="H404751E9005946B3AE46A5ED89128BF6"><enum>(A)</enum><text>a majority of a
quorum of each chamber of the legislature of the State has approved a bill,
resolution, or similar measure that expresses that bets or wagers authorized
under this title should be prohibited in such State; and</text>
</subparagraph><subparagraph id="H3A198C0A467F41C8B6F5F0A53E5DBB85"><enum>(B)</enum><text>such bill,
resolution, or similar measure is the most recent bill, resolution, or similar
measure approved by a majority of a quorum of each chamber of the legislature
of the State that expresses whether bets or wagers authorized under this title
should be prohibited in such State.</text>
</subparagraph></paragraph><paragraph id="H365FBFE829154051B469D5D284BE6954"><enum>(3)</enum><header>Limitation on
State participation</header><text>Notwithstanding any other provision of law,
for purposes of determining whether a State has opted-in under this section,
neither the Secretary nor any provision of State law may require a State to
undertake any additional or different procedures than those specified in
paragraphs (1) and (2).</text>
</paragraph><paragraph id="H74F71E06F3044202A396FBE67BC04326"><enum>(4)</enum><header>Effective date
of changes</header><text>If a State changes its election to participate or not
to participate under paragraph (1) or (2), such change shall apply, for
purposes of this title, beginning on the later of—</text>
<subparagraph id="HF52A6D92CC234C5D86227F1D7E28C28F"><enum>(A)</enum><text>60 days after the
date of the notification to the Secretary by the Governor any other person
authorized under the laws of such State that the State has changed its election
to participate or not; or</text>
</subparagraph><subparagraph id="HB020E59A369D435799D1AA9F7192DFFE"><enum>(B)</enum><text>the effective date
specified in any bill, resolution, or similar measure determining the
participation of the State in Internet gambling under the laws of such
State.</text>
</subparagraph></paragraph></subsection><subsection id="HC244959852484B8288AB05EF69B954E8"><enum>(c)</enum><header>Indian tribe
notice and participation</header>
<paragraph id="HCC9DEA31C27040A7AD49315C1C9E82EF"><enum>(1)</enum><header>Opt-in
election</header><text>Except as provided in paragraphs (3) and (4), an Indian
tribe shall be considered to have opted-in under this section if the principal
chief or other chief executive officer or designated authority of such Indian
tribe has not notified the Secretary within 120 days of enactment that—</text>
<subparagraph id="HD8989A120F0A447191C4406D5825AB33"><enum>(A)</enum><text>Internet gambling
is prohibited by such Indian tribe, or</text>
</subparagraph><subparagraph id="H7D3B108C92764E34A5E19A5827D50943"><enum>(B)</enum><text>the Indian tribe
declines to participate in Internet gambling authorized under this Act.</text>
</subparagraph></paragraph><paragraph id="H49C35C0181CF4F88AB1C4EAE35BAE6EE"><enum>(2)</enum><header>Opt-out
election</header><text>Except as provided in paragraph (3) and subsection (d),
an Indian tribe shall be considered not to have opted-in under this section if
the principal chief or other chief executive officer or designated authority of
such Indian tribe submits written notice to the Secretary that bets or wagers
otherwise authorized under this title should be prohibited on the Indian lands
of such Indian tribe.</text>
</paragraph><paragraph id="HAD7FC3AE4319440FA2C5A3DD58B224FB"><enum>(3)</enum><header>Subsequent
change of election</header>
<subparagraph id="H1243E0C4EB0D4589B42805B1ADAA31D6"><enum>(A)</enum><header>Notice of
change</header><text>Except as provided in paragraph (4), in a case in which
the principal chief or other chief executive officer or designated authority of
an Indian tribe has submitted notice under paragraph (1) or (2) to opt-in or
opt-out, respectively, such Indian tribe may change its election at any time
under this subsection if the principal chief or other chief executive officer
or designated authority of such Indian tribe submits to the Secretary a written
notice indicating such change.</text>
</subparagraph><subparagraph id="H6E4D00B28D07492BB76991D797B4F049"><enum>(B)</enum><header>Status</header><text>An
Indian tribe that submits notice under subparagraph (A) shall be
considered—</text>
<clause id="H972F6F861E244B9D99255C3934EAAD77"><enum>(i)</enum><text>to
have opted-in under this section if the most recent notice submitted under such
subparagraph indicates that bets or wagers authorized under this title should
not be prohibited on the Indian lands of such Indian tribe; and</text>
</clause><clause id="HC1583A193B314F6D9AB83CD7C10D1CAD"><enum>(ii)</enum><text>not
to have opted-in under this section if such notice indicates that bets or
wagers authorized under this title should be prohibited on the Indian lands of
such Indian tribe.</text>
</clause></subparagraph><subparagraph id="H8A39CC18E04F42E08939C77552A7FD12"><enum>(C)</enum><header>Effective
date</header><text>A change in election under this paragraph shall apply, for
purposes of this title, beginning on the later of—</text>
<clause id="HBB207866BC7B445AB715547C27056905"><enum>(i)</enum><text>60
days after the date the most recent notice is submitted under subparagraph (A);
or</text>
</clause><clause id="H8AD6946F846342D482B86563E2C243FD"><enum>(ii)</enum><text>the
effective date specified in such notice.</text>
</clause></subparagraph></paragraph><paragraph id="H97038271F4EF479EB2A73271B11FDF9E"><enum>(4)</enum><header>Indian lands
located in States that have opted-out</header><text>The decision of a State to
opt-in or opt-out shall have no effect on Internet gambling in the lands of an
Indian tribe located within a State, which shall be governed solely by
determinations made by the Indian tribe, as communicated to the Secretary by
the principal chief or other chief executive officer or designated authority of
an Indian tribe.</text>
</paragraph></subsection><subsection id="H110B9317E6E640E181DD0129F7B24B8B"><enum>(d)</enum><header>Prohibition on
unlicensed bets or wagers</header>
<paragraph id="H8C2A4E2F71374C549C0D95B1A277235D"><enum>(1)</enum><header>In
general</header><text>Except as expressly authorized in this title, no State or
Indian tribe may authorize or operate a facility that offers Internet gambling
unless the Internet gambling facility is authorized and licensed by that State
or Indian tribe in compliance with the law of that State or Indian tribe, as
applicable, and solely provides services to participants wholly within the
boundaries of such State or the Indian lands of such Indian tribe..</text>
</paragraph><paragraph id="H994F546700234418A8524298962809C4"><enum>(2)</enum><header>Limitation</header><text>The
prohibition set out in paragraph (1) shall not apply to any bet or wager
authorized pursuant to a State or tribal law enacted or authorized by a license
issued pursuant to this title.</text>
</paragraph></subsection><subsection id="HFBEFD0BC5CA7458CAA483E3BBB5695E3"><enum>(e)</enum><header>Notification and
enforcement of State and Indian tribe prohibitions</header>
<paragraph id="HAD92E2EA8A044858966FDE4B43E4847B"><enum>(1)</enum><header>In
general</header><text>The Secretary shall notify qualified bodies, all
licensees, and applicants of all States and Indian tribes that are considered
to have opted-in under this section, promptly upon receipt of any notice
received under subsection (b) or (c) and not fewer than 30 days before the
effective date of such notice.</text>
</paragraph><paragraph id="H53310ECF8F394EA1BE80B6E30FA3BC39"><enum>(2)</enum><header>Violations</header><text>It
shall be a violation of this title for any licensee to accept a bet or wager
initiated or otherwise made by a person who the licensee knows is located at
the time of placing such bet or wager within any State or on the Indian lands
of any Indian tribe which is not considered to have opted-in under this
section.</text>
</paragraph><paragraph id="H1573BF1FF0374A2893E94D73F8714D20"><enum>(3)</enum><header>State attorney
general enforcement</header><text>In any case in which the attorney general of
a State or any State or local law enforcement agency, authorized by the
attorney general of the State or by State statute to prosecute violations of
consumer protection law, has reason to believe that an interest of the
residents of that State has been or is threatened or adversely affected by a
violation by a licensee under paragraph (2), the State, or the State or local
law enforcement agency, may bring a civil action on behalf of the residents of
that State or jurisdiction in a district court of the United States located
therein—</text>
<subparagraph id="H3C23FACE676E476BB82803E6931D52BC"><enum>(A)</enum><text>to enjoin that
practice; or</text>
</subparagraph><subparagraph id="H2F154090D16442A1995A4A32F282C713"><enum>(B)</enum><text>to enforce
compliance with this section.</text>
</subparagraph></paragraph><paragraph id="H9EFD7F593F4E4B448EFBCC88D638256C"><enum>(4)</enum><header>Indian tribe
enforcement</header><text>In any case in which the chief law enforcement
officer of an Indian tribe or tribal law enforcement agency, authorized by the
chief law enforcement officer of the Indian tribe or by tribal law to prosecute
violations of consumer protection law, has reason to believe that an interest
of the residents of the Indian lands within the tribe’s jurisdiction has been
or is threatened or adversely affected by a violation by a licensee under
paragraph (2), the Indian tribe, or the tribal law enforcement agency, may
bring a civil action on behalf of the residents of those Indian lands in a
district court of the United States located nearest to those Indian
lands—</text>
<subparagraph id="H756F00B9AAA04CD4A1FF652E0B9FA2F3"><enum>(A)</enum><text>to enjoin that
practice; or</text>
</subparagraph><subparagraph id="H675B7E246D364650A78D1CBA9808121D"><enum>(B)</enum><text display-inline="yes-display-inline">otherwise to enforce compliance with this
section.</text>
</subparagraph></paragraph></subsection><subsection id="HDBDA4D5108F44257A2ED08C12DA09DA4"><enum>(f)</enum><header>No Impact on
Indian Gaming Regulatory Act</header>
<paragraph id="H0F42B512999F422B8D6AA9BF7411FCDE"><enum>(1)</enum><header>In
general</header><text>No provision of this title or decision or action taken by
an Indian tribe or State pursuant thereto shall have any effect on non-Internet
gaming activities within the scope of section 11 of the Indian Gaming
Regulatory Act (<external-xref legal-doc="usc" parsable-cite="usc/25/2710">25 U.S.C. 2710</external-xref>) or any successor provisions or on any
Tribal-State compacts or authorities pursuant thereto.</text>
</paragraph><paragraph id="H3102D1B5D6504EDFA299A30E78B87EDA"><enum>(2)</enum><header>Tribal status or
category not affected</header><text>Tribal operation of Internet gambling
facilities under this title shall not be considered class II or class III
gaming under such section, and an Indian tribe’s status, category, or class
under such section shall not impact its status or ability to offer bets or
wagers pursuant to this title.</text>
</paragraph><paragraph id="HCA1B66AEE3AA41F281DE6E18AE162583"><enum>(3)</enum><header>New negotiations
not required</header>
<subparagraph id="HBE08F4DD9BCE4E92862941068119736F"><enum>(A)</enum><header>Indian
tribes</header><text>The fact that an Indian tribe is operating under a license
issued under this title or that a tribal regulatory body is acting as a
qualified body under this title shall not require an Indian tribe to negotiate
a new agreement, limitation, or other provision of tribal-State compact,
agreement, or other understanding with respect to gaming or revenue-sharing,
with regard to any bet or wager occurring pursuant to a license issued under
this title.</text>
</subparagraph><subparagraph id="HAB6D40625B8B43D5BE0F5855D55B5B16"><enum>(B)</enum><header>States</header><text>The
fact that a State has opted in under this section or that a State regulatory
body is acting as a qualified body under this title shall not require the State
to negotiate a new agreement, limitation, or other provision of tribal-State
compact, agreement, or other understanding with respect to gaming or
revenue-sharing, with regard to any bet or wager occurring pursuant to a
license issued under this title.</text>
</subparagraph></paragraph></subsection><subsection id="H854C01FA978B4754BFB66945563AFFE6"><enum>(g)</enum><header>No Impact on
Activities Carried Out Solely Within a State or Within Tribal
Lands</header><text display-inline="yes-display-inline">No provision of this
title shall have any effect on Internet gaming activities that are authorized
and licensed by that State or Indian tribe (as the case may be) in compliance
with the law of that State or Indian tribe as of the date before the date of
the enactment of this Act, as applicable, and that solely provide services to
participants wholly within the boundaries of that State or the Indian lands of
that Indian tribe.</text>
</subsection></section><section id="HDB250F845D4A4C0FB39033E5E178473A"><enum>109.</enum><header>Prohibition on
bets or wagers on sporting events</header>
<subsection id="HE6183195E398405AB6CDBA0EB58C7443"><enum>(a)</enum><header>In
general</header><text>No provision of this title shall be construed to
authorize any licensee to accept a bet or wager on any sporting event in
violation of any applicable provision of Federal or State law.</text>
</subsection><subsection id="H5E923C05B632448AB40CF07957EB7A3E"><enum>(b)</enum><header>Construction</header><text>Nothing
in this title shall be construed to repeal or amend any provision of Federal or
State law prohibiting, restricting, or otherwise addressing bets or wagers on
sporting events, including provisions of Federal and State law that permit
participation in any fantasy or simulation sports games.</text>
</subsection></section><section id="HC8E49F6AC8624D119F1D7E27725A572F"><enum>110.</enum><header>Public internet
gambling and internet gambling parlors prohibited</header>
<subsection id="H2A712EAF0FFE4A098B33542A167EB562"><enum>(a)</enum><header>In
general</header><text>It shall be considered a violation of this title to
operate a place of public accommodation, club (including a club or association
limited to dues-paying members or similar restricted groups), or similar
establishment in which computer terminals or similar access devices are made
available to be used principally for the purpose of accessing Internet gambling
facilities.</text>
</subsection><subsection id="HA9C0E8D70910495DB017439F254B445D"><enum>(b)</enum><header>Criminal
penalties</header><text>Any person who violates subsection (a) shall be fined
under title 18, United States Code, imprisoned for not more than 5 years, or
both.</text>
</subsection><subsection id="H08234F599DA042B69EB9E1670DE2404B"><enum>(c)</enum><header>Construction</header><text>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-paying members or similar restricted groups) and
similar establishments that permit access to Internet gambling
facilities.</text>
</subsection><subsection id="HD3701E1E2F7C4F799412E58A73426E9F"><enum>(d)</enum><header>Relation to
State, local, and tribal law</header><text>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 limited in any way by
this title.</text>
</subsection></section><section id="HA8F41EC5D79F4DC49353CF125D972650"><enum>111.</enum><header>Safe
harbor</header><text display-inline="no-display-inline">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 this
title.</text>
</section><section id="HB4124AE5F0824E95B84B31960F062680"><enum>112.</enum><header>Cheating and
other fraud</header>
<subsection id="H221A2E37C02C477790AD0542362F8209"><enum>(a)</enum><header>Cheating and
cheating devices prohibited</header>
<paragraph id="H25AA1756A5B044D2AE91D29CEA3CBE44"><enum>(1)</enum><header>Cheating
prohibited</header><text>No person initiating, receiving, or otherwise making a
bet or wager with a licensee, or sending, receiving, or inviting information
assisting with a bet or wager with a licensee shall knowingly violate, attempt
to violate, or assist another in violating the rules of play established by the
licensee for the purpose of obtaining prohibited or unfair advantage in any
game authorized under this title.</text>
</paragraph><paragraph id="HF6AA5A4A9C7D444390D8B16307865B07"><enum>(2)</enum><header>Cheating
devices</header><text>Except as provided in paragraph (3), no person
initiating, receiving, or otherwise making a bet or wager with a licensee, or
sending, receiving, or inviting information assisting with a bet or wager with
a licensee shall knowingly use, possess, or assist another in the use of, an
electronic, electrical, or mechanical device or software or other program or
tool which is designed, constructed, or programmed specifically for use in
obtaining an advantage in any game authorized under this title, where such
advantage is prohibited or otherwise violates the rules of play established by
the licensee.</text>
</paragraph><paragraph id="HA56CC525A1DA4D7095434060B1D493A5"><enum>(3)</enum><header>Permissible
uses</header><text>It shall not be a violation of this subsection for a
licensee, its agents, a qualified body, or its agents to use or possess a
device described in the preceding sentence if—</text>
<subparagraph id="H4009C6C3DE1C444A90E76EB5CC883F81"><enum>(A)</enum><text>such use or
possession is solely for purposes of testing an Internet gambling
facility;</text>
</subparagraph><subparagraph id="id3F33E70CB93E4D66BA77EB5C3FBB78E4"><enum>(B)</enum><text>such device is
not used in live play involving actual bets or wagers; and</text>
</subparagraph><subparagraph id="H48920324EED74850B13FA14B4ED4AF7B"><enum>(C)</enum><text>such device is
registered with the qualified body that issued the applicable license.</text>
</subparagraph></paragraph><paragraph id="H903ED8E7300E4E89A59C7BCAACF6C064"><enum>(4)</enum><header>Disclosure to
public not required</header><text>Notwithstanding any other provision of law, a
registration under paragraph (3)(C) is not required to be made available to the
public.</text>
</paragraph></subsection><subsection id="H2E6DB8CD9B9E439B8AE8E94B47FB74B1"><enum>(b)</enum><header>Additional
offense</header>
<paragraph id="HA54BE801A9A140C0B75802CBE7925B9C"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (3), no person
initiating, receiving, or otherwise making a bet or wager with a licensee, or
sending, receiving, or inviting information assisting with a bet or wager with
a licensee, shall knowingly use, possess, or assist another in the use of any
cheating device with intent to cheat or defraud any licensee or other persons
placing bets or wagers with such licensee.</text>
</paragraph><paragraph id="H4BF4B12952354505A0FF456B45E441FA"><enum>(2)</enum><header>Bots</header><text>A
software program that makes bets or wagers according to an algorithm shall
constitute a type of cheating device under this subsection.</text>
</paragraph><paragraph id="HEACF7900291542E5B331055757D5649E"><enum>(3)</enum><header>Permissible
uses</header><text>It shall not be a violation of this subsection for a
licensee, its agents, a qualified body, or its agent to use or possess a device
described in paragraph (1) or (2) if—</text>
<subparagraph id="H58D56AD89F704DEAA0B4D49DF22CE251"><enum>(A)</enum><text>such use or
possession is solely for purposes of testing an Internet gambling
facility;</text>
</subparagraph><subparagraph id="id539B5B2E727644ECAE54A915526E56B3"><enum>(B)</enum><text>such device is
not used in live play involving actual bets or wagers; and</text>
</subparagraph><subparagraph id="H63F9BB08DB0643B9B78E75A053F26573"><enum>(C)</enum><text>such device is
registered with the qualified body that issued the applicable license.</text>
</subparagraph></paragraph><paragraph id="H4887FF54313B4654AF2D2BA70FEC90AC"><enum>(4)</enum><header>Disclosure to
public not required</header><text>Notwithstanding any other provision of law, a
registration under paragraph (3)(C) is not required to be made available to the
public.</text>
</paragraph></subsection><subsection id="HD43D980E882E49C19E56A8E4984E90E6"><enum>(c)</enum><header>Criminal
penalty</header><text>Whoever violates subsection (a) or (b) shall be fined
under title 18, United States Code, imprisoned for not more than 3 years, or
both.</text>
</subsection><subsection id="HDA5D43A4DA8E4F34ABA7BFF539D13252"><enum>(d)</enum><header>Permanent
injunction</header><text>Upon conviction of a person for violation of this
section, the court may enter a permanent injunction enjoining such person from
initiating, receiving, or otherwise making bets or wagers or sending,
receiving, or inviting information assisting in the placing of bets or
wagers.</text>
</subsection><subsection id="H89566E4770AF4E158ADD2468B9DD419E"><enum>(e)</enum><header>Report on
threats to operation of internet gambling facilities</header>
<paragraph id="H4BA2D413934A47D68F13E6D33F760EAD"><enum>(1)</enum><header>In
general</header><text>Not later than 1 year after the date of first issuance
specified in section 114(a), the Director of the National Institute of
Standards and Technology shall submit to Congress a report on threats to the
integrity of Internet gambling facilities operated by licensees.</text>
</paragraph><paragraph id="H1F59E1858B9844DD8FC379574F89A6DB"><enum>(2)</enum><header>Elements</header><text>The
report required by paragraph (1) shall include the following:</text>
<subparagraph id="H667388FE7FFE4EE4A20A9B3293C3CC82"><enum>(A)</enum><text>Identification of
threats to the integrity of Internet gambling facilities operated by
licensees.</text>
</subparagraph><subparagraph id="H0D52637E209D46A4AE10FE1C861FB489"><enum>(B)</enum><text>Identification of
technologies that could be used to hack computer networks, facilitate cheating,
or otherwise place consumers at risk of fraud or monetary loss.</text>
</subparagraph><subparagraph id="HCB7011FDDB954A2ABA9DE4369CD984BA"><enum>(C)</enum><text>An evaluation of
steps taken by Internet gambling facilities licensed under this title to
respond to the threats identified pursuant to subparagraph (A).</text>
</subparagraph><subparagraph id="HF97F925AFAC9497EAB454F2B83B65F1C"><enum>(D)</enum><text>Recommendations
for such measures as the Director considers appropriate to deal with the
threats identified pursuant subparagraph (A).</text>
</subparagraph></paragraph></subsection></section><section id="H53D1977CE0124BD190D73481E3887D36"><enum>113.</enum><header>Construction
and relation to other law</header>
<subsection id="H298A4AE33A534A8E8B2DFC909B8663AF"><enum>(a)</enum><header>No impact on
existing lawful games</header>
<paragraph id="H1809F9E00B0A420B9C0A0D4FEFEB8BBA"><enum>(1)</enum><header>In
general</header><text>If bets or wagers on certain games of skill that are not
Internet gambling are not regarded as gambling or otherwise prohibited under
all provisions of Federal, applicable State, or tribal law—</text>
<subparagraph id="H7627ADA21FF548CAAB8D79205C424A29"><enum>(A)</enum><text>nothing in this
title shall be construed to require licensing under this title with respect to
such games; and</text>
</subparagraph><subparagraph id="HB9477814AD354D92BE4BCC51C74F3B55"><enum>(B)</enum><text>fees paid to
participate in such games shall not be regarded as bets or wagers for purposes
of this title.</text>
</subparagraph></paragraph><paragraph id="H50A2C187FD5A4B67B990083346C91BDC"><enum>(2)</enum><header>Reliance</header><text>Nothing
in this title may be relied on as support for the legality or permissibility of
any games without compliance with the licensing and other requirements of this
title.</text>
</paragraph></subsection><subsection id="H6F7BFC1F947D402D9FB6B93B5511A7A5"><enum>(b)</enum><header>Preemption of
State and tribal laws</header>
<paragraph id="H1A48FBF61856443BA4282A6AB1BEFE5C"><enum>(1)</enum><header>In
general</header><text>Except as otherwise expressly 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 permitting, prohibiting, licensing,
or regulating of Internet gambling facilities and the law of any State or
Indian tribe expressly relating to the authorization, prohibiting, licensing,
expansion, or regulation of gambling, except to the extent such State or tribal
laws are not inconsistent with this title.</text>
</paragraph><paragraph id="HA8ABF8C4EE5C4AAE8F023722428265A5"><enum>(2)</enum><header>Savings
provision</header><text>Nothing in this title may be construed to limit the
applicability or enforcement of any State or tribal consumer protection law of
general applicability or preempt the applicability of State or tribal trespass,
contract, or tort law.</text>
</paragraph></subsection><subsection id="HAC1AAFB7DAA44D159EE00CC3FD44093F"><enum>(c)</enum><header>Relation to
gambling devices transportation act</header><text>Equipment used by a licensee
or significant vendor in the furtherance of licensed activities pursuant to
this title (but not to the extent it is used for other purposes) shall not be
considered a gambling device within the meaning of section 1 of the Act of
January 2, 1951, prohibiting the transportation of gambling devices in
interstate and foreign commerce (<external-xref legal-doc="usc" parsable-cite="usc/15/1171">15 U.S.C. 1171</external-xref>).</text>
</subsection><subsection id="H03F1048A0B464CE2936E20B23DA9EBA1"><enum>(d)</enum><header>Exemptions from
subchapter iv of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/53">chapter 53</external-xref> of title 31, United States
Code</header><text>Subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/53">chapter 53</external-xref> of title 31, United States Code,
is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H0D42B1E590EC4FB5A5FF88E67E5ECB1D" style="USC">
<section id="HF7DB6ABB374E4DE4AD0DC582BD03C158"><enum>5368.</enum><header>Inapplicability
to certain gaming and wagers</header><text display-inline="no-display-inline">The provisions of this subchapter—</text>
<paragraph id="H13494947C87D47CC9ABEE014DD0AB641"><enum>(1)</enum><text>restricting
acceptance of bets or wagers made by individuals located in the United States
or requiring the blocking or other prevention of restricted transactions shall
not apply with respect to the placing, transmitting, or receiving of interstate
off-track wagers, as such term is defined in section 3 of the Interstate
horseracing Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/15/3002">15 U.S.C. 3002</external-xref>), that are permissible under such Act
(<external-xref legal-doc="usc" parsable-cite="usc/15/3001">15 U.S.C. 3001 et seq.</external-xref>), whether such off-track wager is made by telephone,
Internet, satellite, or other wire or wireless communication facility, service,
or medium; and</text>
</paragraph><paragraph id="HBA97C20F80C047CC899CE20C8F3E355F"><enum>(2)</enum><text>shall not apply to
any bet or wager—</text>
<subparagraph id="HFCA36FCCC96D4ACB9F9EEE11768678F3"><enum>(A)</enum><text display-inline="yes-display-inline">occurring pursuant to a license issued
under title I of the Internet Gambling Regulation, Enforcement, and Consumer
Protection Act of 2013, subject to section 109 of that Act;</text>
</subparagraph><subparagraph id="HACE32F01669848A9A3E41549AAC9F758"><enum>(B)</enum><text>that is
permissible under the Interstate horseracing Act of 1978 (15 U.S.C. 3001 et
seq.); or</text>
</subparagraph><subparagraph id="HAD9C36EB60494A6085197FB52FB49B63"><enum>(C)</enum><text>is the purchase of
a chance or opportunity to win a lottery or other prize—</text>
<clause id="H648A48C9F89748BCB9802CB91D6A329C"><enum>(i)</enum><text>which opportunity
to win is predominantly subject to chance; and</text>
</clause><clause id="HF9F22DBC636F47F7B64852EF70BF8A12"><enum>(ii)</enum><text>which is
authorized by a State or Indian tribe wholly within its
borders.</text>
</clause></subparagraph></paragraph></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H3E5A16F81F0D4EC894DBD82F6091CA7B"><enum>(e)</enum><header>Inapplicability
of certain provisions to interstate off-track wagers</header><text>The
provisions of this title requiring a license shall not apply with respect to
the placing, transmitting, or receiving of interstate off-track wagers, as such
term is defined in section 3 of the Interstate horseracing Act of 1978 (15
U.S.C. 3002), that are permissible under such Act (<external-xref legal-doc="usc" parsable-cite="usc/15/3001">15 U.S.C. 3001 et seq.</external-xref>),
whether such off-track wager is made by telephone, Internet, satellite, or
other wire or wireless communication facility, service, or medium.</text>
</subsection><subsection id="H3748765EB2F54B3DBD4C970181FE093A"><enum>(f)</enum><header>Wire act
amendments</header>
<paragraph id="H8D14E544947E45DDA6905AE22AB5CEF7"><enum>(1)</enum><header>Definitions</header><text>Section
1081 of title 18, United States Code, is amended—</text>
<subparagraph id="H083518477D5D4E6AB9C57D55406895F3"><enum>(A)</enum><text>by designating the
five undesignated paragraphs as paragraphs (1) through (5),
respectively;</text>
</subparagraph><subparagraph id="HBF5AE82BD1C24966898121D482B1E545"><enum>(B)</enum><text>in paragraph (2),
as so designated by subparagraph (A), by striking <quote>value.</quote> and
inserting <quote>value, including any Internet gambling
facility.</quote>;</text>
</subparagraph><subparagraph id="H5A7581C8ABF94FDAA16D71865465B823"><enum>(C)</enum><text>by amending
paragraph (5), as so designated by subparagraph (A), to read as follows:</text>
<quoted-block id="HB011966A717343199EF41535DE8C873E" style="OLC">
<paragraph id="H979CF137C58F42E3880080D0D89F3922"><enum>(5)</enum><text>The term
<quote>communication facility</quote> includes any instrumentality, personnel,
and services (including, the receipt, forwarding, or delivery of
communications) used in the transmission of a writing, sign, picture, or sound
of any kind by aid of wire, cable, radio, or an electromagnetic,
photoelectronic, or photooptical system, or other like connection (whether
fixed or mobile) between the points of origin and reception of such
transmission.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H54340EDCC8F04FA4AC408E0EE1E546D7"><enum>(D)</enum><text>by adding at the
end the following:</text>
<quoted-block id="H606E2B4658524A8AB10166DC0F41C10D" style="OLC">
<paragraph id="H3F9C215319A7411EA4E6E874FCD028DE"><enum>(6)</enum><text>The term
<quote>bet or wager</quote> has the meaning given the term in section 102 of
the Internet Gambling Regulation, Enforcement, and Consumer Protection Act of
2013.</text>
</paragraph><paragraph id="H33472FA25A594F52BA5CA5B9F83E3998"><enum>(7)</enum><text>The term
<quote>Internet</quote> means the international computer network of
interoperable packet switched data networks.</text>
</paragraph><paragraph id="HC9B5B902362F4EFE804A7A10B504F0CE"><enum>(8)</enum><text>The term
<quote>Internet gambling facility</quote> has the same meaning given the term
in section 102 of the Internet Gambling Regulation, Enforcement, and Consumer
Protection Act of 2013.</text>
</paragraph><paragraph id="HB6A524DA117841889CDB957E80404671"><enum>(9)</enum><text>The terms
<quote>financial transaction provider</quote> and <quote>insured depository
institution</quote> have the meanings given those terms in section 5362 of
title 31, United States Code.</text>
</paragraph><paragraph id="HC825D9C2187D43CBB43D4D9A231122AD"><enum>(10)</enum><text>The term
<quote>gambling business</quote> means a business of betting or
wagering.</text>
</paragraph><paragraph id="H7F37883E5FE24464AD86894E5A68533D"><enum>(11)</enum><text>The terms
<quote>own or control</quote> and <quote>owned or controlled</quote> include
circumstances within the meaning of section 2(a)(2) of the Bank Holding Company
Act of 1956 (12 U.S.C.
1841(a)(2)).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H6C7C9AB93E9C4648B5438A18078665C6"><enum>(2)</enum><header>Modification of
existing prohibition</header><text><external-xref legal-doc="usc" parsable-cite="usc/18/1084">Section 1084</external-xref> of title 18, United States
Code, is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HD094EB737E9442F8A890983FD38E08E7" style="USC">
<section id="H0AF9757F74704C0E9CD75E99B0B13261"><enum>1084.</enum><header>Transmission
of wagering information; penalties</header>
<subsection id="H74A091B0FBAE48D7B5F1D5663E1DE995"><enum>(a)</enum><header>Offense</header><text>Except
as otherwise provided in this section or in the Internet Gambling Regulation,
Enforcement, and Consumer Protection Act of 2013, it shall be unlawful for a
person that is engaged in a gambling business to knowingly use a communication
facility for the transmission in interstate or foreign commerce, within the
special maritime and territorial jurisdiction of the United States, or to or
from any place outside the jurisdiction of any country with respect to any
transmission to or from the United States, of—</text>
<paragraph id="HA5F15B5FCE9148638FB3DECB4C373B6B"><enum>(1)</enum><text>bets or
wagers;</text>
</paragraph><paragraph id="H4BB6347FD476469899DF12FCB4ECE8DD"><enum>(2)</enum><text>information
assisting in the placing of bets or wagers; or</text>
</paragraph><paragraph id="HBDCAAEEA1942498C939D1AC7EE81634C"><enum>(3)</enum><text>a communication,
which entitles the recipient to receive money or credit as a result of bets or
wagers, or for information assisting in the placing of bets or wagers.</text>
</paragraph></subsection><subsection id="HBB586703BCD94595A6A5A69912362307"><enum>(b)</enum><header>Penalty</header><text>Any
person who violates subsection (a) shall be fined under this title, imprisoned
for not more than 5 years, or both.</text>
</subsection><subsection id="H3857B123317D4903857293AAFF9A8170"><enum>(c)</enum><header>Transmission in
interstate or foreign commerce</header><text>Except as otherwise provided in
this section, the transmission of bets or wagers, information assisting in the
placing of bets or wagers, or a communication which entitles the recipient to
receive money or credit as a result of bets or wagers, or for information
assisting in the placing of bets or wagers shall be considered a transmission
in interstate or foreign commerce subject to this section if such transmission
involved the use, in some part, of the Internet.</text>
</subsection><subsection id="H896ECDD032CE49CA822F8BF46220EDC9"><enum>(d)</enum><header>Rules of
construction</header><text>Nothing in this section shall be construed
to—</text>
<paragraph id="HC65837074F524E229F4CDCC17AA927B2"><enum>(1)</enum><text>prohibit—</text>
<subparagraph id="H3B4DF899F4094B30B06C4F3E49AAE2EB"><enum>(A)</enum><text>the transmission
of information assisting in the placing of bets or wagers for use in news
reporting if such transmission does not solicit or provide information for the
purpose of facilitating or enabling the placing or receipt of bets or
wagers;</text>
</subparagraph><subparagraph id="H59FC9B8E483E47A6A438E3B2F0DF9C78"><enum>(B)</enum><text>the interstate
transmission of information relating to a State-specific lottery between a
State or foreign country where such betting or wagering is permitted under
Federal, State, tribal, or local law and an out-of-State data center for the
purposes of assisting in the operation of such State-specific lottery;
or</text>
</subparagraph><subparagraph id="H27C81A092F5F4111A326A5BC14629BD7"><enum>(C)</enum><text>a qualifying
intrastate lottery transaction (as defined in section 102 of the Internet
Gambling Regulation, Enforcement, and Consumer Protection Act of 2013;</text>
</subparagraph><subparagraph id="HE4126F47D9FC456288CBD989486E16AF"><enum>(D)</enum><text>any authorized
activity carried out in connection with a license issued under the Internet
Gambling Regulation, Enforcement, and Consumer Protection Act of 2013.</text>
</subparagraph></paragraph><paragraph id="HB111B3CCFB3841ADB37E32DDA24B7FA3"><enum>(2)</enum><text>create immunity
from criminal prosecution under any laws of a State or tribe; or</text>
</paragraph><paragraph id="H1268F083C1144520B078089C68746F56"><enum>(3)</enum><text>authorize activity
that is prohibited under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/28/178">chapter 178</external-xref> of title 28.</text>
</paragraph></subsection><subsection id="H25C1029C7B6F4504AA10EA1CB89EF441"><enum>(e)</enum><header>Applicability</header><text display-inline="yes-display-inline">This section shall not apply to any
activity that is permissible under the Interstate horseracing Act of 1978 (15
U.S.C. 3001 et seq.), or any activity that is permissible under title I of the
Internet Gambling Regulation, Enforcement, and Consumer Protection Act of
2013.</text>
</subsection><subsection id="H75F91B4B9F824503BD6C5C82EC9DB3CA"><enum>(f)</enum><header>Duty of common
carrier</header>
<paragraph id="HAEC7B2D5B4A84D62BCCF0359060BD318"><enum>(1)</enum><header>In
general</header><text>If a common carrier (as defined in section 3 of the
Communications Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/47/153">47 U.S.C. 153</external-xref>)), subject to the jurisdiction of the
Federal Communications Commission, is notified in writing by a Federal, State,
tribal, or local law enforcement agency, acting within the jurisdiction of the
law enforcement agency, that a communication facility furnished by the common
carrier is being used or will be used by a subscriber of the common carrier for
the purpose of transmitting or receiving gambling information in interstate or
foreign commerce, within the special maritime and territorial jurisdiction of
the United States, or to or from any place outside the jurisdiction of any
country with respect to any transmission to or from the United States in
violation of Federal, State, tribal, or local law, the common carrier shall
discontinue or refuse, the leasing, furnishing, or maintaining of such
facility, after reasonable notice to the subscriber.</text>
</paragraph><paragraph id="HDE3F2CDB4AAC486787086AC5D0F2F7A4"><enum>(2)</enum><header>Limitation on
liability</header><text>No damages, penalty, or forfeiture, civil or criminal,
shall be found against a common carrier for any act done in compliance with any
notice received from a law enforcement agency.</text>
</paragraph><paragraph id="HBEFD9FDA46494791A5346A778D9D66B3"><enum>(3)</enum><header>Rule of
construction</header><text>Nothing in this subsection shall be construed to
prejudice the right of any person affected to secure an appropriate
determination, as otherwise provided by law, in a Federal court or in a State,
tribal, or local tribunal or agency, that such facility should not be
discontinued or removed, or should be restored.</text>
</paragraph></subsection><subsection id="HF81BF52C1FC04B1A9764DC372A72249C"><enum>(g)</enum><header>Exclusions</header><text display-inline="yes-display-inline">This section, subchapter IV of chapter 53
of title 31, and any other provision of Federal law that establishes criminal
penalties for any activity involved in placing, receiving or otherwise
transmitting a bet or wager shall not apply to any bet or wager that—</text>
<paragraph id="H6A4E95407AE44E35AE8C3B92289FAA51"><enum>(1)</enum><text>is permissible
under the Interstate horseracing Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/15/3001">15 U.S.C. 3001 et seq.</external-xref>);</text>
</paragraph><paragraph id="H550C0B0E913641CE9AD90023AD2112BF"><enum>(2)</enum><text>is an
international off-track wager on horseracing, or the combination of
international horseracing pari-mutuel wagering pools, that is lawful in the
State or foreign jurisdiction involved;</text>
</paragraph><paragraph id="H8EF31DD523144AE3BE8439CE0E3BEA7C"><enum>(3)</enum><text>is permissible
under the Prohibition of Internet Gambling, Regulation, and Consumer Protection
Act of 2013; or</text>
</paragraph><paragraph id="H71D22E1ED9C1404DA9C3A1E572C566EF"><enum>(4)</enum><text>is a qualifying
intrastate lottery bet or wager as defined in section 102 of the Act referred
to in paragraph
(3).</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HAAB19691078544F0B6DC44A0382DD0F8"><enum>(3)</enum><header>Authorization of
civil enforcement</header>
<subparagraph id="H7778EA6CE7764917AF4478A17EBE74DB"><enum>(A)</enum><header>In
general</header><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/18/50">Chapter 50</external-xref> of title 18, United States Code, is amended by
adding at the end the following:</text>
<quoted-block id="H33E5423772B4452AB896B621D78FB9F9" style="USC">
<section id="H39090501A3C9463BB2D92F1A01578AF9"><enum>1085.</enum><header>Civil
remedies</header>
<subsection id="HB849C48D20AC492CA4B1AD27FD67766A"><enum>(a)</enum><header>Jurisdiction</header><text>The
district courts of the United States (in addition to any other remedies under
current law) shall have original and exclusive jurisdiction to prevent and
restrain violations of section 1084 by issuing appropriate orders in accordance
with this section, regardless of whether a prosecution has been initiated under
section 1084.</text>
</subsection><subsection id="H2C225177DC4D4E738E2F6BFBAF0B06EF"><enum>(b)</enum><header>Proceedings</header>
<paragraph id="H394A7310ECCC4E7D99E6583F3B54C9C0"><enum>(1)</enum><header>Definition</header><text>In
this subsection, the term <quote>account</quote> means—</text>
<subparagraph id="HE966DD6EB1F341D6A165FC43D8CD9B86"><enum>(A)</enum><text>the unpaid balance
of money or its equivalent received or held by an insured depository
institution in the usual course of business and for which it has given or is
obligated to give credit, either conditionally or unconditionally, to an
account, including interest credited, or which is evidenced by an instrument on
which the depository institution is primarily liable; and</text>
</subparagraph><subparagraph id="H8286440444784651AC4C75FA2C635975"><enum>(B)</enum><text>money received or
held by an insured depository institution, or the credit given for money or its
equivalent received or held by the insured depository institution in the usual
course of business for a special or specific purpose, regardless of the legal
relationships established thereby, including escrow funds, funds held as
security for securities loaned by the depository institution, funds deposited
as advance payment on subscriptions to United States Government securities, and
funds held to meet its acceptances.</text>
</subparagraph></paragraph><paragraph id="H2F26BC9471204BF4BECF8DCA0B80F41E"><enum>(2)</enum><header>Proceedings</header><text>The
United States may institute proceedings under this section—</text>
<subparagraph id="HD3178F8B033344939D8161303EA5C8C5"><enum>(A)</enum><text>to obtain
injunctive or declarative relief, including a temporary restraining order and a
preliminary injunction, against any person (other than a financial transaction
provider, except as provided in paragraph (3)) to prevent or restrain a
violation or a threatened violation of section 1084;</text>
</subparagraph><subparagraph id="H518B24A2F49C4CE8AA0844D63F27464F"><enum>(B)</enum><text>in the case of an
insured depository institution that is a financial transaction provider,
to—</text>
<clause id="H3D8FF1154DC44E6EA97941317974D9BD"><enum>(i)</enum><text>restrain an
account maintained at such insured depository institution if such account
is—</text>
<subclause id="HBCCF3F1AD9D045FE9A1C5E568C24BBB7"><enum>(I)</enum><text>owned or
controlled by a gambling business; and</text>
</subclause><subclause id="H31DDB8DF7AE54701A0D099D481D48740"><enum>(II)</enum><text>includes proceeds
of, or is used to facilitate a violation of section 1084; or</text>
</subclause></clause><clause id="H3297E72FBBD04417A9105B68A69AB997"><enum>(ii)</enum><text>seize funds in an
account described in clause (i) if such funds—</text>
<subclause id="H11BD17D6AE77417D907B63318908FD1E"><enum>(I)</enum><text>are owned or
controlled by a gambling business; and</text>
</subclause><subclause id="H4893DC8F2B9A40908667855F5491CF20"><enum>(II)</enum><text display-inline="yes-display-inline">constitute the proceeds of, were derived
from, or facilitated, a violation of section 1084.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="H7C94AC82E2AC44E186662D137E054A1F"><enum>(3)</enum><header>Financial
transaction providers</header><text>The limitation in paragraph (2)(A) shall
not apply if the financial transaction provider is a gambling business, in
which case, such financial transaction provider shall be subject to the
enforcement provisions under paragraph (2).</text>
</paragraph><paragraph id="HE0263C9CEBC8488D85A8A62CBC82FF7F"><enum>(4)</enum><header>Injunctive
proceedings</header>
<subparagraph id="H2A1E98D66E6C402C827EDAC439CAD320"><enum>(A)</enum><header>In
general</header><text>The attorney general (or other appropriate State
official) of a State in which a communication in violation of section 1084
allegedly has been or will be initiated or received may institute proceedings
under this section to obtain injunctive or declarative relief to prevent or
restrain the violation or threatened violation.</text>
</subparagraph><subparagraph id="H4779497E1A3347768382E5CA869C0FBA"><enum>(B)</enum><header>Relief</header><text>Upon
application of the attorney general (or other appropriate State official) of an
affected State under subparagraph (A), the district court may enter a temporary
restraining order, a preliminary injunction, an injunction, or declaratory
relief against any person (other than a financial transaction provider) to
prevent or restrain a violation or threatened violation of section 1084, in
accordance with rule 65 of the Federal Rules of Civil Procedure.</text>
</subparagraph></paragraph><paragraph id="H7D23216321154E668DCBAC02130E5FEE"><enum>(5)</enum><header>Enforcement
authority</header><text>Notwithstanding paragraphs (2) and (4), for a
communication in violation of section 1084 that allegedly has been or will be
initiated or received on Indian lands (as that term is defined in section 4 of
the Indian Gaming Regulatory Act (<external-xref legal-doc="usc" parsable-cite="usc/25/2703">25 U.S.C. 2703</external-xref>))—</text>
<subparagraph id="H56E1B43240DC4263AAFFBADF23EDD335"><enum>(A)</enum><text>the United States
shall have the enforcement authority provided under paragraph (2);</text>
</subparagraph><subparagraph id="HCC677FD027C24724B961B8ED251ABAB4"><enum>(B)</enum><text>the enforcement
authorities specified in an applicable Tribal-State compact negotiated under
section 11 of the Indian Gaming Regulatory Act (<external-xref legal-doc="usc" parsable-cite="usc/25/2710">25 U.S.C. 2710</external-xref>) shall be
carried out in accordance with that compact; and</text>
</subparagraph><subparagraph id="HB45790DF931A4D9290008F831847D443"><enum>(C)</enum><text>if there is no
applicable Tribal-State compact, an appropriate tribal official may institute
proceedings in the same manner as an attorney general of a State.</text>
</subparagraph></paragraph><paragraph id="HF3C7748D7871437BB7CF6EFF82A6B6B2"><enum>(6)</enum><header>Rule of
construction</header><text>Nothing in this subsection shall be construed to
alter, supersede, or otherwise affect the application of the Indian Gaming
Regulatory Act (<external-xref legal-doc="usc" parsable-cite="usc/25/2701">25 U.S.C. 2701 et seq.</external-xref>).</text>
</paragraph><paragraph id="HC9C6A90F68C2428EA0B5E7A163578478"><enum>(7)</enum><header>Limitation on
relief</header><text>Notwithstanding paragraph (4), no relief shall be granted
under this section against a financial transaction provider except as provided
in paragraph (3).</text>
</paragraph></subsection><subsection id="H0CEC3F5E8DB6442FA3B69077F530E29F"><enum>(c)</enum><header>Limitation on
liability</header><text>No damages, penalty, or forfeiture, civil or criminal,
shall be found against any person or entity for any act done in compliance with
any notice received from a law enforcement
agency.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H9CB0608001004D518EAC059B21958EE8"><enum>(B)</enum><header>Clerical
amendment</header><text>The table of sections for <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/18/50">chapter 50</external-xref> of title 18,
United States Code, is amended by inserting after the item relating to section
1084 the following:</text>
<quoted-block id="H88C11F8B22CE4D469437150625F97E6A" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">1085. Civil
remedies.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection id="H898B14893B974C2C85DB0FC3308C7BCE"><enum>(g)</enum><header>Systems used in
support of lawful gambling</header>
<paragraph id="HC6F9D690ED7A4E93BF7A44A4882114C8"><enum>(1)</enum><header>In
general</header><text>This title, subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/53">chapter 53</external-xref> of title 31,
United States Code, <external-xref legal-doc="usc" parsable-cite="usc/18/1084">section 1084</external-xref> of title 18, United States Code, and any other
provision of Federal law that establishes criminal penalties for any activity
involved in placing, receiving, or otherwise transmitting a bet or wager,
information assisting in the placing of bets or wagers, or a communication
which entitles the recipient to receive money or credit as a result of bets or
wagers, shall not apply to gaming devices, information, or communications, to
the extent used to support bets or wagers offered by a casino gaming facility
that—</text>
<subparagraph id="H79285D4DC31B4F50A95658E0F1FF5836"><enum>(A)</enum><text>occur between
participants who are located on the premises of the same casino gaming
facility; and</text>
</subparagraph><subparagraph id="HA32E9A0BE369462E9F95DF785242099C"><enum>(B)</enum><text>are lawful in the
State or on the Indian lands in or on which the casino gaming facility is
located.</text>
</subparagraph></paragraph><paragraph id="H59DFABA04C6A42D3BDC3E8B68E7B652F"><enum>(2)</enum><header>Definitions</header><text>In
this subsection:</text>
<subparagraph id="HBBF71C50AD9A40FE9D1A43533DFFDA3C"><enum>(A)</enum><header>Casino gaming
facility</header><text>The term <quote>casino gaming facility</quote> 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
location, pursuant to a duly authorized license issued by a gaming regulatory
authority of a State of Indian tribe.</text>
</subparagraph><subparagraph id="HD09396F6A52B41818996231CBE7B58EC"><enum>(B)</enum><header>Participants</header><text>The
term <quote>participants</quote> 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.</text>
</subparagraph></paragraph></subsection><subsection id="HF0EB6D1421F94E69830F69455B82FE41"><enum>(h)</enum><header>Preservation of
existing lawful gambling</header>
<paragraph id="H6308449C332340F1A57D0328D0616F7D"><enum>(1)</enum><header>In
general</header><text>This title, subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/53">chapter 53</external-xref> of title 31,
United States Code, <external-xref legal-doc="usc" parsable-cite="usc/18/1084">section 1084</external-xref> of title 18, United States Code, and any other
provision of Federal law that establishes criminal penalties for any activity
involved in placing, receiving, or otherwise transmitting a bet or wager,
information assisting in the placing of bets or wagers, or a communication
which entitles the recipient to receive money or credit as a result of bets or
wagers, shall not apply to the offering of a bet or wager or 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 activities 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 opportunity to win a lottery or
other prize—</text>
<subparagraph id="H437468F0CBB04A388EAD3546EB8ED9DE"><enum>(A)</enum><text>which opportunity
to win is predominantly subject to chance; and</text>
</subparagraph><subparagraph id="H72E23ED139B04C8898084ED96AF7D07C"><enum>(B)</enum><text>which is
authorized by a State or Indian tribe wholly within its borders;</text>
</subparagraph></paragraph><paragraph id="H190ADDCF1EF34555B95DF06427039301"><enum>(2)</enum><header>Applicability</header><text>Paragraph
(1) shall not apply to—</text>
<subparagraph id="HAEF4CB04F4B64665AA012BB6F30DBFE1"><enum>(A)</enum><text>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;</text>
</subparagraph><subparagraph id="H6032EDBB79894B34B7320807203B1F25"><enum>(B)</enum><text>the offering of a
bet or wager or gambling 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</text>
</subparagraph><subparagraph id="H7855000CB19C46FAA02943B97F258986"><enum>(C)</enum><text>qualifying
intrastate lottery transactions.</text>
</subparagraph></paragraph><paragraph id="HEA8F168AE7BE404E9DFB763D8CE6C82C"><enum>(3)</enum><header>Casino gaming
facility defined</header><text>In this subsection, the term <quote>casino
gaming facility</quote> 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 location, pursuant to a duly authorized license
issued by a gaming regulatory authority of a State of Indian tribe.</text>
</paragraph></subsection></section><section id="H17974909B43E4D889BECF7795C047330"><enum>114.</enum><header>Orderly
transition</header>
<subsection id="HCB3E14790B6E462681721B09EA60D049"><enum>(a)</enum><header>Issuance of
initial licenses</header>
<paragraph id="H91F2AF5B4E7343948AC0F8C81F069B71"><enum>(1)</enum><header>In
general</header><text>Each qualified body designated under section 105 before
the date of first issuance specified in this subsection, shall, to the extent
practicable while meeting the requirements and standards of this title, issue
multiple licenses under this title before such date in order to ensure a robust
and competitive market for consumers and to prevent the first licensees from
gaining an unfair competitive advantage.</text>
</paragraph><paragraph id="H3822D22DBE89495B9DA49737BC158BA3"><enum>(2)</enum><header>Effective date
of initial licenses</header><text>No license issued under this title shall
authorize a licensee to accept a bet or wager under this title before the date
of first issuance specified in this subsection.</text>
</paragraph><paragraph id="H4D6CF67C98B74EB59C00F7ED7B8BECE9"><enum>(3)</enum><header>Date of first
issuance</header><text>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.</text>
</paragraph></subsection><subsection id="H4921CA7B0B93494BA8D8C4C2243138A1"><enum>(b)</enum><header>Orderly
cessation of unlicensed activity and safekeeping of customer funds</header>
<paragraph display-inline="no-display-inline" id="H2290823A8ED7413F9DD515720DB74886"><enum>(1)</enum><header>In
general</header><text>Each person shall, with respect to an Internet gambling
facility not licensed under this Act and to the extent applicable to the
person—</text>
<subparagraph id="H0A50A39ED45B4E2DB699FA34F2A0B7DB"><enum>(A)</enum><text>not later than 30
days after the date of the enactment of this Act, cease offering, accepting,
and providing services with respect to bets or wagers from individuals the
person knows, or reasonably should know, are located in the United
States;</text>
</subparagraph><subparagraph id="H4A174391743D46FE8A10C5DD6CAB668F"><enum>(B)</enum><text>provide to each
individual located in the United States who has outstanding sums on deposit
with such person notice to such individual that operations will be ceasing
pursuant to paragraph (1) with instructions indicating the procedures the
individual should use to request the return of such sums—</text>
<clause id="HE79E4EE3A5CE44CF84E09D284A77DEC1"><enum>(i)</enum><text>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;</text>
</clause><clause id="HE78BFB724178452E9607B65D05CFDDC3"><enum>(ii)</enum><text>not
later than 30 days after the date of the enactment of this Act and not less
frequently than semi-annually thereafter until such sums have been returned, by
mail; and</text>
</clause><clause id="H531D0801621E4BE78128794CE1819084"><enum>(iii)</enum><text>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;</text>
</clause></subparagraph><subparagraph id="H58296F98580D496C85162586AD7266EC"><enum>(C)</enum><text>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;</text>
</subparagraph><subparagraph id="H7EC70B3AC2564FF0A55AC1F23A80DD5B"><enum>(D)</enum><text>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
subparagraph (C) the disposition of which remains unresolved because of a lack
of a request by such individual under such subparagraph or other reason;
and</text>
</subparagraph><subparagraph id="HC5A38F0307624EEEA4517C994EB9F523"><enum>(E)</enum><text>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
subparagraph (C) the disposition of which remains unresolved in escrow with a
financial institution in the United States for safekeeping and orderly
disposition as the Secretary may direct.</text>
</subparagraph></paragraph><paragraph id="H78B6F294D4E848E1B91DF5C347399CEB"><enum>(2)</enum><header>Applicability
regardless of license application status</header><text>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 application for a license under
this title.</text>
</paragraph><paragraph id="H18E25DDC5A224C9AB99647366F2C9583"><enum>(3)</enum><header>Criminal
penalty</header><text>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.</text>
</paragraph><paragraph id="H2A5F8AD2909D421EAF5A16C2E09E7C4E"><enum>(4)</enum><header>Regulations</header><text>The
Office of Internet Gambling Oversight shall prescribe regulations to carry out
this subsection.</text>
</paragraph><paragraph id="HBB4C2D0D4AF245D4A2BCE4E3C335C86E"><enum>(5)</enum><header>Judicial
review</header><text>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 <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/7">chapter 7</external-xref> of title 5, United States
Code.</text>
</paragraph></subsection><subsection id="HACD0A4D985A841EE86A0B20083D354F3"><enum>(c)</enum><header>No effect on
existing law</header><text>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—</text>
<paragraph id="H920A783795D949E1A954E38986D483C4"><enum>(1)</enum><text>authorizes the
provision of services relating to bets or wagers by facilities authorized and
licensed by that State or Indian tribe in compliance with the law of that State
or Indian tribe, as applicable, and solely provides services to participants
wholly within the boundaries of such State or the Indian lands of such Indian
tribe;</text>
</paragraph><paragraph id="H9183C1CA6CF74F36970F771585F62B3B"><enum>(2)</enum><text>prohibits,
restricts, or otherwise addresses bets or wagers; or</text>
</paragraph><paragraph id="H5371081AD3D1461484340BBAD4FFBD56"><enum>(3)</enum><text>prohibits fraud,
unfair or deceptive acts or practices, or other criminal activity.</text>
</paragraph></subsection></section><section id="HFB747F7BBA2B498FB46495E9885EC820"><enum>115.</enum><header>Annual
reports</header>
<subsection id="H733EE0B906F6479EB9688190A7E05C00"><enum>(a)</enum><header>Licensing and
regulation of internet gambling facilities</header>
<paragraph id="H3D559BCACC4D410D93124E15246AEA5A"><enum>(1)</enum><header>In
general</header><text>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 facilities under this title.</text>
</paragraph><paragraph id="HBAA2A5966E794134B313C8D063927C27"><enum>(2)</enum><header>Elements</header><text>Each
report submitted under paragraph (1) shall include the following:</text>
<subparagraph id="H0A00C898BCC54E7CB304B30712092439"><enum>(A)</enum><text>A description of
all notices received by the Secretary under subsections (b) and (c) of section
108.</text>
</subparagraph><subparagraph id="H49F5EEDDFC5240B9AA9157E0339BB5B2"><enum>(B)</enum><text>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 attributable to the operation of Internet gambling facilities during the
period covered by the report.</text>
</subparagraph><subparagraph id="H6CBA4FE0BF124B0EBABE642CD26B833C"><enum>(C)</enum><text>A list of
qualified bodies, the number of licensees reviewed by the qualified bodies
under this title, and the outcomes of such reviews.</text>
</subparagraph><subparagraph id="H072197C204D4434085D442AAEF511F41"><enum>(D)</enum><text>A description of
the efforts the Secretary has undertaken to ensure that qualified bodies are
properly issuing licenses and regulating licensees under this title.</text>
</subparagraph><subparagraph id="H5E676E34A179455D985EE8AE0840D029"><enum>(E)</enum><text>A detailed
description of each type of game offered by licensees and how each type is
consistent with the definition of <quote>poker</quote> under section
102.</text>
</subparagraph><subparagraph id="H0C975213020649B8A2D0CFE9C7ADB114"><enum>(F)</enum><text>Such other
information as the Secretary considers appropriate.</text>
</subparagraph></paragraph></subsection><subsection id="HF7DB36DFA7FB471FB6FE37AF45CC61B9"><enum>(b)</enum><header>Consumer
protection</header>
<paragraph id="HBF5471CC7F8543F78FD856A1B3C83BA1"><enum>(1)</enum><header>In
general</header><text>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 Banking, Housing and Urban
Affairs of the Senate and the Committee on Financial Services of the House of
Representatives a report on commercial and regulatory 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 pursuant to such section.</text>
</paragraph><paragraph id="H7680A86E9255495E86AE89B8ADB60CE0"><enum>(2)</enum><header>Elements</header><text>Each
report submitted under paragraph (1) shall include the following:</text>
<subparagraph id="HE19263D21EFE452E911E2C1535079264"><enum>(A)</enum><text>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.</text>
</subparagraph><subparagraph id="H03D42AA5A54C4713B74EC88BAB9EAE1E"><enum>(B)</enum><text>A description of
the practices that the Secretary recommends qualifying bodies adopt to protect
consumers.</text>
</subparagraph><subparagraph id="HD7BE1896233E4B759192BA901E8DB962"><enum>(C)</enum><text>Such
recommendations as the Secretary may have for legislative action as the
Secretary considers necessary to protect consumers with respect to Internet
gambling.</text>
</subparagraph><subparagraph id="H28AF6A56635D45B182F29F6B63F1F69F"><enum>(D)</enum><text>Such other
information as the Secretary considers appropriate.</text>
</subparagraph></paragraph></subsection></section><section id="H9039F169A23B48379E5487367D0343D5"><enum>116.</enum><header>Independent
testing of licensed operator equipment</header>
<subsection id="HBCE541EB6D75409084C8A512A6A13342"><enum>(a)</enum><header>Requirement</header><text display-inline="yes-display-inline">The Secretary shall require independent
testing of hardware, software, communications equipment, and other necessary
devices for Internet gambling facilities to ensure the integrity,
accountability, and randomness of play and network security.</text>
</subsection><subsection id="H9855CEF577B745E689CBF96D677839F6"><enum>(b)</enum><header>Definition</header><text>For
purposes of this section, the term <quote>independent testing</quote> means
testing conducted by a scientific laboratory—</text>
<paragraph id="H2E9E93B1F17C4F91B7E6A666B184C134"><enum>(1)</enum><text>that is accredited
by an intentional accreditation body approved by the Secretary;</text>
</paragraph><paragraph id="H0C4239914C4347F58C8598C04F1EA91B"><enum>(2)</enum><text>that is competent
and qualified to scientifically test and evaluate equipment, software,
communications and functionality relating to the operation of an Internet
gambling facility; and</text>
</paragraph><paragraph id="H64484DE4AA4340399D7F3B7110D96E55"><enum>(3)</enum><text>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.</text>
</paragraph></subsection></section><section id="H4D817804EE5E4905B0152B6F2569CAC2"><enum>117.</enum><header>Inclusion of
authority to address gambling addiction in samhsa authorities</header><text display-inline="no-display-inline">Section 501(d) of the Public Health Service
Act (<external-xref legal-doc="usc" parsable-cite="usc/42/290aa">42 U.S.C. 290aa(d)</external-xref>) is amended—</text>
<paragraph id="HF992D8C47E904C178B537E6399A49182"><enum>(1)</enum><text>by striking
<quote>and</quote> at the end of paragraph (17);</text>
</paragraph><paragraph id="HFC608591A6B247A4B3C106ABA06500F5"><enum>(2)</enum><text>by striking the
period at the end of paragraph (18) and inserting <quote>; and</quote>;
and</text>
</paragraph><paragraph id="HB43B1F6603944C66BB4F695AB4272A01"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block id="H9F042AC48D664316B0DDAB555020EB4B" style="OLC">
<paragraph id="H37A1A785DD39404BB426D7B2F0DB6054"><enum>(19)</enum><text>establish and
implement programs for the identification, prevention, and treatment of
pathological and other problem
gambling.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HAEDD6FC995AC4DE09EF681B0037C357C"><enum>118.</enum><header>Compilation of
datasets on player behavior</header><text display-inline="no-display-inline">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 behavior from customer
tracking data collected or generated by loyalty programs, player tracking
software, online gambling transactions, or any other information system. The
Secretary shall ensure that personally identifying information, including
player name, street address, and bank or credit information, are automatically
removed from the data. The data shall include information on player
characteristics including gender, age and region of residence, player behavior
including frequency of play, length of play, speed of play, denomination of
play, amounts wagered and, if applicable, number of lines or hands played, and
characteristics of games played.</text>
</section><section id="H7E9E9901AF9A4307B8FB133FF5C5ADE2"><enum>119.</enum><header>Effective
date</header>
<subsection id="H9D4E7A97C8B74626A038652070FCB227"><enum>(a)</enum><header>In
general</header><text>Except as otherwise provided in this title, the
provisions of this title shall take effect on the date that is 30 days after
the date of the enactment of this Act.</text>
</subsection><subsection id="HB5D6A48FA9D740F5BE4DC7529B6DD507"><enum>(b)</enum><header>Regulations
required before issuing licenses</header><text>Notwithstanding any other
provision of this title, a qualified body may not issue a license under this
title until the qualified body has issued regulations to meet its obligations
as a qualified body.</text>
</subsection></section><enum>II</enum><header>ENFORCEMENT UNDER
TITLES 18 AND 31, UNITED STATES CODE</header>
<section id="H883B5CF150D348E2B3866A0BB528050A"><enum>201.</enum><header>Financial
service providers</header><text display-inline="no-display-inline">Subchapter
IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/53">chapter 53</external-xref> of title 31, United States Code, is amended—</text>
<paragraph id="H55CD8AEEBDD84B92A80BEBF83F42A6C0"><enum>(1)</enum><text>in section
5362—</text>
<subparagraph id="H47EDFC63BC0E4B4A9A5927771CC0E53C"><enum>(A)</enum><text>by redesignating
paragraph (11) as paragraph (12); and</text>
</subparagraph><subparagraph id="H5F43C767FE3949C0B60110183E50C76B"><enum>(B)</enum><text>by inserting after
paragraph (10) the following:</text>
<quoted-block id="H9329B1D3B4834983A8A80277A03BC77E" style="OLC">
<paragraph id="H81302FC573624202B8E769CF448C5761"><enum>(11)</enum><header>List of
licensed internet gambling facilities</header><text display-inline="yes-display-inline">The term <quote>list of licensed Internet
gambling facilities</quote> means the list established and maintained under
section 106(n) of the Internet Gambling Regulation, Enforcement, and Consumer
Protection Act of 2013.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HC4D8CB752DBC4786BD3C2909C35205C8"><enum>(2)</enum><text display-inline="yes-display-inline">in section 5364, by striking subsection (d)
and inserting the following:</text>
<quoted-block id="H8D9A65117D434709AA47B29E601FEB78" style="OLC">
<subsection id="HBFFEC2F4FA3945A9A8BCEF9324DF644F"><enum>(d)</enum><header>Financial
transaction providers</header>
<paragraph id="HDE76EA1325FF407BAE45F0270D1D8A57"><enum>(1)</enum><header>In
general</header><text>A financial transaction provider shall prevent, prohibit,
or suspend its service from completing payment transactions involving customers
within the United States and a person or entity that is—</text>
<subparagraph id="H286A9BE3E5B04C7D9BE1F1A84F786EE9"><enum>(A)</enum><text>an Internet
gambling facility not included on the list of licensed Internet gambling
facilities, or that the financial transaction provider reasonably believes is
included on such list;</text>
</subparagraph><subparagraph id="HA9E9935D2C324480AB9876A77039787E"><enum>(B)</enum><text>demonstrated to
be, or that the financial transaction provider reasonably believes to be, an
unlicensed Internet gambling enterprise, based on information other than the
list of licensed Internet gambling facilities; or</text>
</subparagraph><subparagraph id="H521E60C09D0D42E5B91A3FF91BDA184E"><enum>(C)</enum><text>acting on behalf
of an Internet gambling facility that is not included on the list of licensed
Internet gambling facilities, or that the financial transaction provider
reasonably believes is included on such list, if the financial transaction
provider has knowledge that such person or entity is acting on behalf of the
unlicensed person or entity.</text>
</subparagraph></paragraph><paragraph id="H82D7DD25E12D4F28B29FDF3A5344114D"><enum>(2)</enum><header>Safe
harbor</header><text>A financial transaction provider shall not be held liable
to any person—</text>
<subparagraph id="HEE3FBA882E7742DEB193D3CE93F9D21C"><enum>(A)</enum><text display-inline="yes-display-inline">for engaging in a financial activity or
transaction, including a payments processing activity, in connection with a bet
or wager that the provider believes is permitted by the Internet Gambling
Regulation, Enforcement, and Consumer Protection Act of 2013 or the Internet
horseracing Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/15/3001">15 U.S.C. 3001 et seq.</external-xref>), unless the financial
transaction provider has actual knowledge that the financial activity or
transaction was conducted in violation of either such Act or any applicable
provision of Federal or State law; or</text>
</subparagraph><subparagraph id="H3AA90963CEED473FB2DFF7D2DF3891CC"><enum>(B)</enum><text>for taking any
action pursuant to paragraph
(1).</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H233557C3D2F2490290034403C6C5AFD3"><enum>202.</enum><header>Amendments
relating to illegal gambling businesses</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/18/1955">Section 1955(b)(1)</external-xref> of title 18, United
States Code, is amended—</text>
<paragraph id="H4717C44E04EE4DD79DAE81401A86B85A"><enum>(1)</enum><text>in clause (i), by
striking <quote>(i) is</quote> and inserting <quote>(A)(i) is</quote>;</text>
</paragraph><paragraph id="HD85586AA65ED4C28B9C60BB878B2310B"><enum>(2)</enum><text>in clause (iii),
by striking the period at the end and inserting <quote>; or</quote>; and</text>
</paragraph><paragraph id="H2F9FA22E080F4D08BF1265C400252E14"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block id="HA37E8B66900B43E5B3896BDF9000BA6A" style="OLC">
<subparagraph id="H30C66628457D4CB48407B080B0BB8525"><enum>(B)</enum><text>is an unlawful
Internet gambling facility, as defined in section 102 of the Internet Gambling
Regulation, Enforcement, and Consumer Protection Act of
2013.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H7334334CC8B2406B9F485C1C47307297"><enum>203.</enum><header>Further
amendments to subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/53">chapter 53</external-xref> of title 31, United States
Code</header><text display-inline="no-display-inline">Section 5362(10) of title
31, United States Code, is amended—</text>
<paragraph id="H076C1B1493D34496BA6FBB8E4F4048BA"><enum>(1)</enum><text>by striking
subparagraphs (A) through (C) and inserting the following:</text>
<quoted-block id="H4AEBBFD8AC1D4B08BED0FB53299AF5FD" style="OLC">
<subparagraph id="H475AA00E2F2549D9890E9C2E4BFB2F17"><enum>(A)</enum><header>In
general</header><text>The term <quote>unlawful Internet gambling</quote> means
to place, receive, or otherwise knowingly transmit a bet or wager by or on
behalf of a person located in the United States by any means which involves the
use, at least in part, of the Internet, unless such bet or wager is expressly
permitted under applicable Federal
law.</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H2DEACA76475E4E80AABBD2E2BCD9FFE6"><enum>(2)</enum><text>by redesignating
subparagraph (D) as subparagraph (B);</text>
</paragraph><paragraph id="H607B10DAB0DC49B299767A7FFB35E8E9"><enum>(3)</enum><text>in subparagraph
(B), as so redesignated, by striking clause (iii); and</text>
</paragraph><paragraph id="H428DE507489A41BE9C28376EBFF9C272"><enum>(4)</enum><text>by striking
subparagraph (E) and inserting the following:</text>
<quoted-block id="H7375D7F64E144636A09CBA7855144674" style="OLC">
<subparagraph id="H57943B63031D4B9CA821367FE4CAAF0A"><enum>(C)</enum><header>Qualifying
intrastate lottery transactions</header><text>The term <quote>unlawful Internet
gambling</quote> does not include the purchase of a chance or opportunity to
win a lottery or other prize that satisfies all of the conditions and
limitations set out in section 102(3)(B) of the Internet Gambling Regulation,
Enforcement, and Consumer Protection Act of 2013.</text>
</subparagraph><subparagraph id="H44B96CCD27994D7AA6AB589F9A4971C2"><enum>(D)</enum><header>Licensed
internet gambling facilities</header><text display-inline="yes-display-inline">The term <quote>unlawful Internet
gambling</quote> does not include an activity carried out by an Internet
gambling facility, as such term is defined in section 102 of the Internet
Gambling Regulation, Enforcement, and Consumer Protection Act of 2013, operated
by a person under a license provided under title I of that Act, in accordance
with the provisions of that title
I.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H2F1D24EF97FC4CAD9E0F68B3E9631B1E"><enum>204.</enum><header>Bettor
forfeiture</header><text display-inline="no-display-inline">Section 981(a)(1)
of title 18, United States Code, is amended by adding at the end the
following:</text>
<quoted-block id="H900BF301037941938D3FC02636C147F9" style="OLC">
<subparagraph id="H3C11102A029B4B8A8480C88D08D6882B"><enum>(I)</enum><text display-inline="yes-display-inline">Any property, real or personal, involved in
a transaction or attempted transaction in violation of section 103 of the
Internet Gambling Regulation, Enforcement, and Consumer Protection Act of 2013,
or any property traceable to such
property.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HC6A3B323520F45EDA0310B6B29857E59"><enum>205.</enum><header>Regulations</header>
<subsection id="H76E9845FE8594D3ABB1BA8C5D0CD9B8E"><enum>(a)</enum><header>Regulations</header><text>Not
later than 180 days after the date of enactment of this Act, the Secretary of
the Treasury shall prescribe such regulations as the Secretary of the Treasury
considers necessary to ensure compliance with the Bank Secrecy Act (12 U.S.C.
1951 et seq.; <external-xref legal-doc="usc" parsable-cite="usc/31/5311">31 U.S.C. 5311 et seq.</external-xref>), by licensees, significant vendors to
such licensees, and financial service providers to such licensees (as those
terms are defined in section 102).</text>
</subsection><subsection id="H6D4E584D5F6A44E78D2C13DAE314EDE8"><enum>(b)</enum><header>Revision of
regulations</header><text>Not later than 180 days after the date of enactment
of this Act, the Secretary of the Treasury shall revise part 233 of title 12,
Code of Federal Regulations, and part 132 of title 31, Code of Federal
Regulations, to conform with the provisions of title I.</text>
</subsection></section><section id="H8F383ADBE9E64DF089FC64FD16F575DB"><enum>206.</enum><header>Conforming
amendment</header><text display-inline="no-display-inline">Section 310(b)(2)(I)
of title 31, United States Code, is amended by striking <quote>subchapter
II</quote> and inserting <quote>subchapters II and IV</quote>.</text>
</section><enum>III</enum><header>OTHER
MATTERS</header>
<section id="HEF8F7E4AA6C240F59751DEC16ECE1AAA"><enum>301</enum><header>Severability</header><text display-inline="no-display-inline">If any provision of this Act is declared
unconstitutional, or the applicability thereof to any person or circumstances
is held invalid, the remainder of the Act shall remain in effect and will
continue to apply to other persons and circumstances.</text>
</section>