113 HR 2666 IH: Internet Poker Freedom Act of 2013
U.S. House of Representatives
2013-07-11
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 Poker Freedom Act of
2013
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Title I—Prohibition on Unlicensed Internet Poker and Protections
for Internet Poker Consumers
Sec. 101. Definitions.
Sec. 102. Prohibition on unlicensed Internet poker.
Sec. 103. Department of Commerce qualification and oversight of
Qualified Regulatory Authorities.
Sec. 104. Licensing by Qualified Regulatory
Authorities.
Sec. 105. Enforcement.
Sec. 106. Compulsive gaming, responsible gaming, and
self-exclusion program requirements.
Sec. 107. Prohibitions and restrictions.
Sec. 108. Safe harbor.
Sec. 109. Relation to subchapter IV of chapter 53 of title 31,
United States Code.
Sec. 110. Cheating and other fraud.
Sec. 111. Construction and relation to other law.
Sec. 112. Regulations.
Sec. 113. Annual reports.
Sec. 114. Effective date.
Title II—Strengthening of Unlawful Internet Gambling Enforcement
Act of 2006
Sec. 201. Financial transaction providers.
Sec. 202. List of unlicensed Internet gambling
enterprises.
Sec. 203. Regulations.
Sec. 204. Conforming amendments.
2.Congress finds the following:
(1)Since the development of the Internet,
online Web sites offering Internet poker have raised numerous policy, consumer
protection, and enforcement concerns for Federal, State, and tribal governments
as such Web sites are run by operators located in many different countries and
have sought to attract customers from the United States.
(2)The Unlawful
Internet Gambling Enforcement Act of 2006 (title VIII of Public Law 109–347;
120 Stat. 1952) was intended to aid enforcement efforts against unlawful
Internet operators and to limit unlawful Internet gaming involving United
States persons. However, that Act has only been partially successful in doing
so.
(3)There is uncertainty about the laws of the
United States governing Internet poker, though not about laws governing
Internet sports betting. In United States v. DiCristina a Federal District
Court for the Eastern District of New York held that poker is a game in which
skill is the predominant factor in determining the outcome and that in passing
the Illegal Gambling Businesses Act, Congress only intended to criminalize
clear games of chance.
(4)Additional tools
to assist law enforcement in the prevention of unlawful Internet gaming
activities would be important and beneficial. Maintenance of a list of
unlicensed Internet poker enterprises and the owners, operators, and key
personnel of such enterprises (as well as entities and related personnel found
unsuitable) would aid those law enforcement efforts and would make the Unlawful
Internet Gambling Enforcement Act more effective.
(5)Poker is distinct
from the class of games of chance traditionally defined as gambling in that
players compete against each other, and not the person or entity hosting the
game (sometimes called the house), and that over any significant
interval the outcome of a poker game is predominantly determined by the skill
of the participants.
(6)United States consumers would benefit from
a program of Internet poker regulation which recognizes the interstate nature
of the Internet, but nevertheless preserves the prerogatives of States and
federally recognized Indian tribes. Such a system would require strict
licensing of Internet poker providers and would require licensee operators
to—
(A)have effective
means to prevent minors from playing poker on-line;
(B)identify and help
treat problem gamblers;
(C)prevent minors and players in
non-participating States;
(D)allow players to
self-exclude and limit losses; and
(E)prevent money
laundering.
(7)Such a program
would create a new industry within the United States creating thousands of jobs
and substantial revenue for Federal, State, and tribal governments.
<enum>I</enum><header>Prohibition on
Unlicensed Internet Poker and Protections for Internet Poker Consumers
</header>
<section commented="no" id="H2AF3EBB244BF4CD09BC96E734D29176B"><enum>101.</enum><header>Definitions</header><text display-inline="no-display-inline">As used in this title, the following
definitions apply:</text>
<paragraph commented="no" id="H10C3CF8E36E44D10B4BAD1215731AFB2"><enum>(1)</enum><header>Applicant</header><text>The
term <term>applicant</term> means any person who has applied for a license
pursuant to this title.</text>
</paragraph><paragraph id="H168B901A90524C6EB810D53C55E57232"><enum>(2)</enum><header>Bet or
wager</header>
<subparagraph id="HA742A2CB6A434C4CB73E2D1BF4A6FBED"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), the term
<term>bet or wager</term> has the meaning given the term in section 5362 of
title 31, United States Code.</text>
</subparagraph><subparagraph id="H92580607DD474058933EB9EE31D71A8C"><enum>(B)</enum><header>Exception</header><text display-inline="yes-display-inline">The term <term>bet or wager</term> does not
include the following:</text>
<clause id="H876B950CEEEA4A7889DD47C7B1A3D53E"><enum>(i)</enum><header>Interstate
horseracing</header><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 commented="no" id="HAAD862558A3D4CEA8B6A62C5DC8A9838"><enum>(ii)</enum><header>Certain
intrastate transactions</header><text>Placing, receiving, or otherwise
transmitting a bet or wager—</text>
<subclause commented="no" id="HE923AE0A39A2413EA26FF05DB25676C9"><enum>(I)</enum><text>as described in
subparagraph (B) of <external-xref legal-doc="usc" parsable-cite="usc/31/5362">section 5362(10)</external-xref> of title 31, United States Code, and
clarified by subparagraph (E) of such section; and</text>
</subclause><subclause commented="no" id="HB21350AB430645A297C546F31A169C09"><enum>(II)</enum><text>authorized under
a license that was issued by a regulatory body of a State or federally
recognized Indian tribe on or before the date of enactment of this Act.</text>
</subclause></clause><clause id="H7ECC6605DE4940DB8D9F701171A25AD5"><enum>(iii)</enum><header>Intrastate
lottery transactions</header><text>A bet or wager that is—</text>
<subclause id="HFA3077ADF677474CADC92B93DD004211"><enum>(I)</enum><text>a
chance or opportunity to win a lottery or other prize (which opportunity to win
is predominantly subject to chance) authorized by a State or federally
recognized Indian tribe; and</text>
</subclause><subclause id="H4FBEF356B11249C7B3916A439E338F4D"><enum>(II)</enum><text>a placing,
receiving, or transmitting of a bet or wager as described in such subparagraph
(B) and clarified by subparagraph (E) of such section 5362(10).</text>
</subclause></clause><clause id="HE5E1B2A3B89545E9BF6AE5E5BD0E7CD5"><enum>(iv)</enum><header>Intratribal
transactions</header><text>Placing, receiving, or otherwise transmitting a bet
or wager as described in subparagraph (C) of such section 5362(10), as
clarified by such subparagraph (E).</text>
</clause></subparagraph></paragraph><paragraph id="H9DDB26CD9741494CB0F5C53DF3640599"><enum>(3)</enum><header>Casino
gaming</header>
<subparagraph id="HAFEB6A64B42542A7BD5CC25F1D50A983"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), the term
<term>casino gaming</term> means the full range of casino gaming activity
licensed by regulatory bodies of States or federally recognized 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="HF36E2C440FAA483E88CA23BC7C4DC37B"><enum>(B)</enum><header>Exception</header><text>The
term <term>casino gaming</term> does not include lotteries of States or
federally recognized Indian tribes.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA45238850CEC4406ABA6B962500E1F98"><enum>(4)</enum><header>Casino gaming
facility</header><text display-inline="yes-display-inline">The term
<term>casino gaming facility</term> means a facility that provides casino
gaming on a riverboat, at a race track, or in another facility that hosts
gaming devices in one physical location pursuant to a duly authorized license
issued by a gaming regulatory authority of a State or Indian tribe and has not
fewer than 500 slot machines.</text>
</paragraph><paragraph id="H3B828707854349D09F74BDE5C927886B"><enum>(5)</enum><header>Commission</header><text>The
term <term>Commission</term> means the National Indian Gaming Commission.</text>
</paragraph><paragraph id="H0B7D0C989E1B408CA169F98FEC08A5DA"><enum>(6)</enum><header>Gaming
device</header>
<subparagraph id="H2F05319BBFC94219B472D6C66B7C8658"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), the term
<term>gaming device</term> 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 federally recognized Indian tribe.</text>
</subparagraph><subparagraph id="H44D0B6E1C0854F5294624B91C33863A6"><enum>(B)</enum><header>Exceptions</header><text display-inline="yes-display-inline">The term <term>gaming device</term> does
not include—</text>
<clause id="HAEE8466853894EA6B32056DA67375BB3"><enum>(i)</enum><text>machines that
process bets or wagers for parimutuel betting pools or class II gaming devices
qualified 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>);
or</text>
</clause><clause id="H0A56DE2FE23E4BF5AB574CE662C1FC3E"><enum>(ii)</enum><text>a
personal computer.</text>
</clause></subparagraph></paragraph><paragraph id="HD0AB7C75962349138C44026A3722DE87"><enum>(7)</enum><header>Independent
testing laboratory</header><text display-inline="yes-display-inline">The term
<term>independent testing laboratory</term> means a testing laboratory that is
accredited by an international accreditation body approved by the Secretary and
is not owned or controlled by an Internet gaming facility, an electronic
gambling equipment vendor, manufacturer, or retailer, or an Internet gambling
operator.</text>
</paragraph><paragraph id="H75BBF9C12DE84BDBB291A1280C835B7D"><enum>(8)</enum><header>Indian lands and
federally recognized Indian tribe</header><text>The terms <term>Indian
lands</term> and <term>federally recognized Indian tribe</term> have the
meanings given the terms <term>Indian lands</term> and <term>Indian
tribes</term>, respectively, 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="H9CCCA078D3084A918FD351A9E8D1350E"><enum>(9)</enum><header>Internet</header><text>The
term <term>Internet</term> has the meaning given the term in section 5362 of
title 31, United States Code.</text>
</paragraph><paragraph id="H7F265A2FF82F4251B7D2361FAA4C391E"><enum>(10)</enum><header>Internet
poker</header><text>The term <term>Internet poker</term> means a poker game,
hand, tournament, or other contest of poker offered through the use of an
Internet poker facility.</text>
</paragraph><paragraph id="H1B116FEA08344BD583473AB88FAD08BA"><enum>(11)</enum><header>Internet poker
facility</header><text display-inline="yes-display-inline">The term
<term>Internet poker facility</term> means an Internet Web site, or similar
communications facility in which transmissions may cross State boundaries,
through which a bet or wager is initiated, received, or otherwise made, solely
with respect to a game, hand, tournament, or other contest of poker, whether
transmitted by telephone, Internet, satellite, or other wire or wireless
communication facility, service, or medium.</text>
</paragraph><paragraph id="H5FB1C0F5CF014F9E9522EA5B47EAEDD1"><enum>(12)</enum><header>Licensee</header><text>The
term <term>licensee</term> means a person who operates an Internet poker
facility under a license issued by a qualified regulatory authority pursuant to
this title.</text>
</paragraph><paragraph id="HC9FE88E3DF414408B8BDCB36530A4A7C"><enum>(13)</enum><header>Operate an
Internet poker facility</header><text>The term <term>operate an Internet poker
facility</term> means to conduct, direct, manage, own, supervise, or control an
Internet poker facility.</text>
</paragraph><paragraph commented="no" id="H6DA4546201D740FD82558DDFA93D99D2"><enum>(14)</enum><header>Poker</header><text display-inline="yes-display-inline">The term <term>poker</term> means any of
several card games commonly known as poker in which players compete against
each other, and not against any person, entity, or fellow player hosting the
game (sometimes called <term>the house</term>), the outcome of which, over any
significant interval, is predominantly determined by the skill of the
players.</text>
</paragraph><paragraph commented="no" id="HE51DFBE35EF94B7BB06FA0130FC30490"><enum>(15)</enum><header>Qualified
regulatory authority</header><text>The term <term>qualified regulatory
authority</term> means—</text>
<subparagraph commented="no" id="HB4C7A0D5E20E431F96B7882EB12A8F31"><enum>(A)</enum><text>a State agency or
regulatory body that has been designated as a qualified regulatory authority
under section 103(c);</text>
</subparagraph><subparagraph commented="no" id="H4A7BEC23B5E04C559EAD8A3CBD3C5515"><enum>(B)</enum><text display-inline="yes-display-inline">the designated regulatory authority of a
federally recognized Indian tribe authorized to game under the Indian Gaming
Regulatory Act and designated as a qualified regulatory authority under section
103(c); or</text>
</subparagraph><subparagraph commented="no" id="H608F6B8798004B82B34664CC09048079"><enum>(C)</enum><text>the Office of
Internet Poker Oversight established under section 103(b).</text>
</subparagraph></paragraph><paragraph id="HEFC35A7931BA4471AF21CA4E550B81FB"><enum>(16)</enum><header>Qualified card
room</header><text>The term <term>qualified card room</term> means a facility
that has been licensed by a State or federally recognized Indian tribe to
provide at least 175 tables in one physical facility for bets or wagers on
poker.</text>
</paragraph><paragraph id="H11556039C72743068F0286DA44A777D2"><enum>(17)</enum><header>Remote gaming
equipment</header>
<subparagraph id="HF4040312ADDD4876A41CEA46793F0A2A"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), the term
<term>remote gaming equipment</term> means electronic or other equipment
principally used by or on behalf of an operator of an Internet poker facility,
including by any significant vendor to such operator, to—</text>
<clause id="H059949BE65D04E8882EC915736972B1A"><enum>(i)</enum><text>register a
person’s participation in Internet poker and to store information relating
thereto;</text>
</clause><clause id="HA0A0E9AB66E943AA91B0E9F64BEF1511"><enum>(ii)</enum><text>present to
persons who are participating or who may participate in Internet poker the game
that is to be played;</text>
</clause><clause id="H7E942604C4C549C9915D9753F2935CB4"><enum>(iii)</enum><text>determine all or
part of, or the effect of, a result relevant to a game, hand, tournament, or
other contest of Internet poker and to store information relating
thereto;</text>
</clause><clause id="HADA364B1AC5D42E29B320AC1F91ECC77"><enum>(iv)</enum><text>accept payment
with respect to Internet poker from the player; or</text>
</clause><clause id="H71C9B215848347DC84A7572A6B89059A"><enum>(v)</enum><text>authorize payment
of any winnings in respect of Internet poker.</text>
</clause></subparagraph><subparagraph id="H4A802581FC934210A7F82C8FB151310A"><enum>(B)</enum><header>Exception</header><text>The
term <term>remote gaming equipment</term> does not include the
following:</text>
<clause id="H218ECC00B2D94228BE7CE00936AD0B74"><enum>(i)</enum><text>Equipment used for
business continuity, back-up, excess capacity, or other secondary use.</text>
</clause><clause id="H497D957D3F144C6988242B6D895F0BA2"><enum>(ii)</enum><text>A
computer which is used by a person to participate in Internet poker 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="H60B0E27AFBEB441E829AD5A62E877725"><enum>(iii)</enum><text>Equipment
operated in the ordinary course of providing banking, telecommunications, or
payment processing services.</text>
</clause><clause id="HD4D2D60F56334CD48F31CF51F02DEFB3"><enum>(iv)</enum><text>Such other
equipment that provides ancillary services as the Secretary considers
appropriate.</text>
</clause></subparagraph></paragraph><paragraph id="H02A56046B9404354971F3760E5CF027F"><enum>(18)</enum><header>Secretary</header><text>The
term <term>Secretary</term> means the Secretary of Commerce.</text>
</paragraph><paragraph id="HC238B0850EBC47A5B2636C627B813D52"><enum>(19)</enum><header>Significant
vendor</header><text>The term <term>significant vendor</term> means a person
who—</text>
<subparagraph id="H3961961D267045B6B3B63A3B1CC948C1"><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="H02B8100502B94AD0ADBC9FB38B2D1060"><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="H897A8852009447E4A9260846B6527AB8"><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="HCD1ECE1341BC43F99790CDD234E1692D"><enum>(D)</enum><text>provides the
trademarks, trade names, service marks, or similar intellectual property under
which a licensee identifies its Internet poker facility to its customers in the
United States;</text>
</subparagraph><subparagraph id="H3C3EC23DB73347FEBEA7086649DF87A0"><enum>(E)</enum><text display-inline="yes-display-inline">sells, licenses, or otherwise receives
compensation for selling or licensing information via a database or customer
list on individuals in the United States selected in whole or in part because
they made bets or wagers with an Internet gambling facility not licensed either
pursuant to this title or by a State or federally recognized Indian tribe as
permitted under this title;</text>
</subparagraph><subparagraph id="HBF8C83F85BD64B07A9560F897305BF68"><enum>(F)</enum><text>provides any
products, services, or assets to a licensee and is paid a percentage of gaming
revenue or Internet poker 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="H6EC17B35FCB74B0BB56555896B222CA2"><enum>(G)</enum><text>with respect to an
applicant, proposes to provide any of the activities, services, or items
identified in subparagraphs (A) through (E).</text>
</subparagraph></paragraph><paragraph id="HA4D45CA20E03467080A9EEEB6BB4FE7B"><enum>(20)</enum><header>State</header><text>The
term <term>State</term> 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 display-inline="no-display-inline" id="HDF934DFC15A74DFE932419BDAF2A7CF2" section-type="subsequent-section"><enum>102.</enum><header>Prohibition on
unlicensed Internet poker</header>
<subsection id="HDFAC51BCFCD747D496B59FEF7A08DB46"><enum>(a)</enum><header>Prohibition</header>
<paragraph commented="no" id="H787BC650747741C195551F794EC8F0B7"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">It shall be unlawful
for a person to operate an Internet poker facility without a license in good
standing issued to such person by a qualified regulatory authority under this
title.</text>
</paragraph><paragraph commented="no" id="H0079F126065840A48259C0B97558EABF"><enum>(2)</enum><header>Exception</header><text display-inline="yes-display-inline">Paragraph (1) shall not apply to the
operation of an Internet poker facility by a person located outside the United
States in which bets or wagers are initiated, received, or otherwise made by
individuals located outside the United States.</text>
</paragraph></subsection><subsection id="HA538EB3915B440C08B72812707CE1A84"><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 5 years, or
both.</text>
</subsection></section><section id="H584E32DB0D494E4C882C99F382220AC0"><enum>103.</enum><header>Department of
Commerce qualification and oversight of Qualified Regulatory
Authorities</header>
<subsection id="HC3DF3497BFA04F52BABB17760D2D0ACC"><enum>(a)</enum><header>Commerce
responsibilities and powers</header><text display-inline="yes-display-inline">The Secretary, in the case of a State, and
the Commission, in the case of a federally recognized Indian tribe, shall have
responsibility and authority for the following activities:</text>
<paragraph id="HA651EDDCE4B541CFAFD1E00FE3F4BA0C"><enum>(1)</enum><text>Reviewing and
qualifying regulatory authorities to issue licenses under this title.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H971D91B538834A438D3A453E503CB1FD"><enum>(2)</enum><text>Exercising
oversight over qualified regulatory authorities to ensure that such
authorities—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H2060A416CE464B0D92A8633539C9C263"><enum>(A)</enum><text>comply with the
requirements of this title; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD0CFDF085DBA4AB29EA23390A379536C"><enum>(B)</enum><text>carry out their
regulatory and enforcement functions under this title with appropriate
diligence.</text>
</subparagraph></paragraph><paragraph id="HC8768642CBE849249455E63804DF34E8"><enum>(3)</enum><text>Investigating and
taking appropriate remedial action with respect to any qualified regulatory
authority.</text>
</paragraph><paragraph id="HAFDC5CD265944A70AE047AF965189F32"><enum>(4)</enum><text>Prescribing such
regulations as may be necessary to administer and enforce the provisions of
this title.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HB573D9E41D1C430D8AAD20AE0B6E9B3E"><enum>(b)</enum><header>Office of
Internet Poker Oversight</header>
<paragraph id="HDB3F528A7D1446B190214BB6CEC63A9E"><enum>(1)</enum><header>Establishment</header><text display-inline="yes-display-inline">The Secretary shall establish an office in
the Department of Commerce to be known as the <term>Office of Internet Poker
Oversight</term> (in this subsection referred to as the <term>office</term>) to
exercise the functions of the Secretary set out in this title.</text>
</paragraph><paragraph id="H88F80C9535214819BF0BA047DD6A099B"><enum>(2)</enum><header>Director and
delegation of authority</header><text>The Secretary shall appoint a Director of
the office from among individuals who have demonstrated experience and
expertise in regulating gaming activities and may delegate to the Director any
authority, duty, or responsibility conferred upon the Secretary by this
title.</text>
</paragraph></subsection><subsection id="HCF0F346780F14CD68D9FB8E7FBECF03C"><enum>(c)</enum><header>Designation of
qualified regulatory authorities</header>
<paragraph id="H2DC203F923434FF6B74A8B11B96933A9"><enum>(1)</enum><header>Qualification of
regulatory authorities</header><text display-inline="yes-display-inline">The
Secretary, in the case of a State, or the Commission, in the case of a
federally recognized Indian tribe, shall qualify any regulatory authority that
is designated to the Secretary or the Commission by a State or federally
recognized Indian tribe, respectively, that wishes to participate in the
licensing program to carry out the licensing and other functions under this
title if the Secretary, in the case of a State, or the Commission, in the case
of a federally recognized Indian tribe, determines that such regulatory
authority meets the minimum standards for qualification prescribed under
paragraph (2).</text>
</paragraph><paragraph id="HFFB28AFF76254BB394FA6E7368FC3109"><enum>(2)</enum><header>Minimum
standards for qualified regulatory authorities</header><text display-inline="yes-display-inline">The Secretary, in consultation with the
National Indian Gaming Commission, shall prescribe minimum standards for
qualifying a qualified regulatory authority under this subsection, including
minimum standards—</text>
<subparagraph id="H3E9A65F3E9B54367A9474F5A0E4A2D65"><enum>(A)</enum><text>relating to the
size and qualification of staff of the regulatory authority to ensure a
sufficient number of enforcement agents with experience in gaming regulatory
enforcement areas to discharge its intended functions and that the applicant
have the sophistication and resources necessary to evaluate issues unique to
the Internet environment;</text>
</subparagraph><subparagraph id="H4124E35D09764CADA3A0DECC97503BC7"><enum>(B)</enum><text>relating to the
length of time the applicant has regulated other forms of gaming to ensure
designations of only those applicants that have a history of demonstrated
regulatory enforcement and oversight commensurate with the responsibilities
imposed under this title;</text>
</subparagraph><subparagraph id="H9D98E1996521475FB50DA185A976FD6D"><enum>(C)</enum><text>for assessing the
applicant’s experience and willingness to work with Federal authorities,
including the Financial Crimes Enforcement Network;</text>
</subparagraph><subparagraph id="H8ED92E7FB91244AEAFE4A016D9F6AF7B"><enum>(D)</enum><text>prohibiting
conflicts of interest to ensure that qualified regulatory authorities are not
controlled, directly or indirectly, by persons that have any significant
ownership interest in entities regulated under this title;</text>
</subparagraph><subparagraph id="HC0220F719AB847CA8AB3CF77860C2F60"><enum>(E)</enum><text>for the capacity
and experience of a qualified regulatory authority in conducting rigorous
suitability reviews;</text>
</subparagraph><subparagraph id="H53C5EF635635415C84C11868590EEE5C"><enum>(F)</enum><text>for the
enforcement and regulatory authorities provided to the applicant under the law
of the applicable State or federally recognized Indian tribe, including
investigative authority, authority to impose requirements on licensees, and
authority to impose civil or other penalties; and</text>
</subparagraph><subparagraph id="H8E1652AF9FD043EBA878AD1F9036C0B5"><enum>(G)</enum><text display-inline="yes-display-inline">the Secretary, in consultation with the
Commission considers relevant to the ability of a regulatory authority to serve
as an effective qualified regulatory authority.</text>
</subparagraph></paragraph><paragraph id="HD4BFFB6A4A554B5AA59CDF916F990208"><enum>(3)</enum><header>Withdrawal of
qualification</header>
<subparagraph id="HD3A6C55B1275428A893DF875CCF684AB"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Beginning on the date
that is 1 year after the date on which the Secretary prescribes final
regulations under this title, the Secretary, in the case of a State, or the
Commission, in the case of a federally recognized Indian tribe, may, after
providing 60 days notice to a qualified regulatory authority, withdraw the
qualification of such regulatory authority under this section if the Secretary
or Commission, respectively, determines that the regulatory authority is not in
compliance with the minimum standards established under paragraph (2) or other
requirements of this title.</text>
</subparagraph><subparagraph id="H37D62C32F7EC44EAB959A2BAE59A0BF5"><enum>(B)</enum><header>Opportunity to
comply</header><text display-inline="yes-display-inline">The Secretary, in the
case of a State, or the Commission, in the case of a federally recognized
Indian tribe, may provide a qualified regulatory authority who receives notice
under subparagraph (A) with an opportunity to come into compliance for a period
of not more than 180 days. The Secretary, in the case of a State, or the
Commission, in the case of a federally recognized Indian tribe, may extend such
period by not more than 180 additional days if the qualified regulatory
authority has made substantial progress toward compliance as of the expiration
of the first 180-day period.</text>
</subparagraph><subparagraph id="HE03327C87A3B4057AC755500364DFD4B"><enum>(C)</enum><header>Effect of
notice</header><text display-inline="yes-display-inline">A qualified regulatory
authority that receives notice under subparagraph (A) may not issue any new
licenses under this title until the Secretary, in the case of a State, or the
Commission, in the case of a federally recognized Indian tribe, determines that
the qualified regulatory authority is in compliance with the requirements of
this title and regulations prescribed thereunder.</text>
</subparagraph><subparagraph id="H8B2E54E3DF1740A0B07EFC343D9597BF"><enum>(D)</enum><header>Right to
appeal</header><text display-inline="yes-display-inline">A qualified regulatory
authority that has had its qualification withdrawn under this paragraph may
appeal to the United States District Court for the District of Columbia that
such withdrawal was an abuse of discretion.</text>
</subparagraph></paragraph><paragraph id="HF5926CA8A47C4FEC99908D22446224E5"><enum>(4)</enum><header>Action upon
withdrawal of qualification</header>
<subparagraph id="H7238CCDEE5254AD0A20244985257C6C0"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as provided in
subparagraph (B), not later than 30 days after the date on which the Secretary,
in the case of a State, or the Commission, in the case of a federally
recognized Indian tribe, withdraws the qualification of a qualified regulatory
authority under paragraph (3), each person with a license issued by the
qualified regulatory authority shall—</text>
<clause id="H7ADD7D3083314C21AFE3A52140AEB19D"><enum>(i)</enum><subclause commented="no" display-inline="yes-display-inline" id="HFDA06B6F7BED4E209D6BE1E4BCFA0759"><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="HC7CD41B83C2D4AF9BED737A9F166A42C" indent="up1"><enum>(II)</enum><text>return all customer deposits 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="HE3EAFC0F4AC6498D892894EA65A69B5B"><enum>(ii)</enum><text>apply for a new
license from a different qualified regulatory authority.</text>
</clause></subparagraph><subparagraph commented="no" id="H65EF8382828741B9BC42E8DAFD7BA139"><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 regulatory authority.</text>
</subparagraph><subparagraph commented="no" id="H079F691B2FA346B38D3AF4FBA1BBB96E"><enum>(C)</enum><header>Interim
regulatory oversight</header><text display-inline="yes-display-inline">Until
final action is taken under subparagraph (B) with respect to a person, the
Secretary, in the case of a State, or the Commission, in the case of a
federally recognized Indian tribe, shall have enforcement and regulatory
authority over the licensed activities of such person.</text>
</subparagraph></paragraph></subsection><subsection id="HD6A6B703B84E4679A6806E162CB9507C"><enum>(d)</enum><header>Oversight of
qualified regulatory authorities</header><text display-inline="yes-display-inline">The Secretary, in the case of a State, or
the Commission, in the case of a federally recognized Indian tribe, may
investigate and take such action as the Secretary considers appropriate with
respect to any qualified regulatory authority that appears, based upon the
Secretary’s or Commission’s own inquiry or based upon credible information
provided by other persons, including licensees or law enforcement officials, to
be deficient or substantially less rigorous than other qualified regulatory
authorities in the discharge of its responsibilities under this title.</text>
</subsection><subsection id="H8E25EBD3CF0A49E08DC315EA3AC83722"><enum>(e)</enum><header>Consultation
with federally recognized Indian tribes</header><text display-inline="yes-display-inline">In implementing this title, the Secretary
and the Commission shall conduct meaningful consultation with federally
recognized Indian tribes regarding all aspects of this title which affect
federally recognized Indian tribes.</text>
</subsection></section><section id="H2F20828DE52A4A71A15388A1396013AD"><enum>104.</enum><header>Licensing by
Qualified Regulatory Authorities</header>
<subsection commented="no" id="H43F19DBC12B545328D6F7A46F4F9A2D2"><enum>(a)</enum><header>Internet poker
facility licensing program</header>
<paragraph commented="no" id="HF3513734965148789BE734427C3FBA4F"><enum>(1)</enum><header>Authority to
operate Internet poker facility under valid license</header><text display-inline="yes-display-inline">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 poker 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>
</paragraph><paragraph commented="no" id="H1DED1AEB2CE44F14A84E58D0181B33AE"><enum>(2)</enum><header>Significant
vendors</header><text display-inline="yes-display-inline">If a person seeks a
certificate of suitability from a qualified regulatory authority to provide
services to a licensee or applicant as a significant vendor with respect to an
Internet poker facility, such person shall not be required to obtain a license
under this title to provide such services with respect to that Internet poker
facility.</text>
</paragraph><paragraph commented="no" id="H084499E8D2F24FF2B91527F28C151846"><enum>(3)</enum><header>Prohibitions
imposed by States or federally recognized Indian tribes</header>
<subparagraph commented="no" id="HB33AD9BC1DBA4BB0A23287B93E843440"><enum>(A)</enum><header>Action by a
State</header><text display-inline="yes-display-inline">No licensee may engage,
under any license issued under this title, in the operation of an Internet
poker facility that knowingly accepts bets or wagers initiated by persons who
reside in any State which provides notice that it will prohibit such bets or
wagers, if the Governor or other chief executive officer of such State informs
the Secretary of such prohibition in a letter that identifies the nature and
extent of such prohibition.</text>
</subparagraph><subparagraph commented="no" id="H1EB9D2BF20B14490816F76C944FB2202"><enum>(B)</enum><header>Changes to State
prohibitions</header><text display-inline="yes-display-inline">The
establishment, repeal, or amendment by a State of any prohibition described in
subparagraph (A) shall apply, for purposes of this title, beginning on the day
that occurs after the end of the 60-day period beginning on the later
of—</text>
<clause commented="no" id="H1D9B6D8DB5264783814BFE8C1BDC6C71"><enum>(i)</enum><text>the date a notice
of such establishment, repeal, or amendment is provided by the Governor or
other chief executive officer of such State in writing to the Secretary;
or</text>
</clause><clause commented="no" id="HD1A868308B244499AD50F1DC61F07AC5"><enum>(ii)</enum><text>the effective
date of such establishment, repeal, or amendment.</text>
</clause></subparagraph><subparagraph commented="no" id="HFE2D8AA11AED4B88AF06FDA128DF82C2"><enum>(C)</enum><header>Application of
State action to tribal lands of federally recognized Indian
tribes</header><text display-inline="yes-display-inline">Any State prohibition
described in subparagraph (A) shall not apply to the acceptance by a licensee
of bets or wagers from persons located within the tribal lands of a federally
recognized Indian tribe that—</text>
<clause commented="no" id="H37C57FCDF5BE43729B95BD995457F597"><enum>(i)</enum><text>has itself not
opted out pursuant to subsection (b); or</text>
</clause><clause commented="no" id="H5DB1226EA0A34D45A911478D8F39E33F"><enum>(ii)</enum><text>would be entitled
pursuant to other applicable law to permit such bets or wagers to be initiated
and received within its territory without use of the Internet.</text>
</clause></subparagraph><subparagraph commented="no" id="H3018DD961BEC4F2F835DAAC8CE8527E9"><enum>(D)</enum><header>Actions by a
federally recognized Indian tribe</header><text display-inline="yes-display-inline">No Internet poker licensee knowingly may
accept a bet or wager from a person located in the tribal lands of any
federally recognized Indian tribe which prohibits such gambling activities or
other contests if the principal chief or other chief executive officer of such
federally recognized Indian tribe informs the Secretary of such prohibition in
a letter that identifies the nature and extent of such prohibition.</text>
</subparagraph><subparagraph commented="no" id="HAE225093E5D54498B5B7A5086908FD8D"><enum>(E)</enum><header>Changes to State
and federally recognized Indian tribe prohibitions</header><text display-inline="yes-display-inline">The
establishment, repeal, or amendment by any federally recognized Indian tribe of
any prohibition referred to in subparagraph (D) shall apply, for purposes of
this title, beginning on the day that occurs after the end of the 60-day period
beginning on the later of—</text>
<clause commented="no" id="HD50819BDD0044E89AEA30959E00E177F"><enum>(i)</enum><text>the date a notice
of such establishment, repeal, or amendment is provided by the principal chief
or other chief executive officer of such federally recognized Indian tribe in
writing to the Secretary; or</text>
</clause><clause commented="no" id="HBFC6F4AEB320442DA7ABECB8D30DA312"><enum>(ii)</enum><text>the effective
date of such establishment, repeal, or amendment.</text>
</clause></subparagraph><subparagraph commented="no" id="H1FB09CBD4B294752961307FCB08947EC"><enum>(F)</enum><header>Notification and
Enforcement of State and Tribe prohibitions</header>
<clause commented="no" id="H2D1791145BE94D88BA8069D21EBB8174"><enum>(i)</enum><header>Notification and
measures to ensure compliance</header><text display-inline="yes-display-inline">The Secretary shall notify all licensees
and applicants of all States and federally recognized Indian tribes that have
provided notice pursuant to subparagraph (A)(ii) or (C)(ii), as the case may
be, promptly upon receipt of such notice and in no event fewer than 30 days
before the effective date of such notice. The Secretary shall take effective
measures to ensure that any licensee under this subchapter, as a condition of
the license, complies with any limitation or prohibition imposed by any State
or federally recognized Indian tribe to which the licensee is subject.</text>
</clause><clause commented="no" id="HDEC4405414ED473AA4C457EF2DCB8150"><enum>(ii)</enum><header>Violations</header><text display-inline="yes-display-inline">A violation of subparagraph (A) or (C)
shall be a violation of this title enforceable under section 105.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H06063A2D50914011A8029A4BC9BA9611"><enum>(b)</enum><header>Application for
license</header>
<paragraph id="H3C1F0CCA45EF4AAF887778E360D0263F"><enum>(1)</enum><header>Application</header><text display-inline="yes-display-inline">Except as provided in subparagraph (B), a
person seeking to operate an Internet poker facility under this title shall
submit to the qualified regulatory authority of the State or federally
recognized Indian tribe where servers for such Internet poker facility are
located or will be located an application for a license at such time, in such
form, and in such manner as the qualified regulatory authority considers
appropriate, including at a minimum the following:</text>
<subparagraph id="H8876AD0965A3462AA3147FA90F8E8876"><enum>(A)</enum><text>Complete financial
information about the applicant.</text>
</subparagraph><subparagraph id="HA24A3D5496AD4D49A5537EA6496747D1"><enum>(B)</enum><text>Documentation
showing the organization of the applicant and all related businesses and
affiliates.</text>
</subparagraph><subparagraph id="H024D1B5D46604ECE82F29F0CA9B73007"><enum>(C)</enum><text>The criminal and
financial history of—</text>
<clause id="H766A4F472EF2443DBFEE4F2DB582EF6B"><enum>(i)</enum><text>the
applicant;</text>
</clause><clause id="H654D4431E6E84249912D9505008293D2"><enum>(ii)</enum><text>each of the
senior executives and directors of the applicant;</text>
</clause><clause id="H43CD181FA17C40CD99A1B70981F880D2"><enum>(iii)</enum><text>any other person
who is in control of the applicant; and</text>
</clause><clause id="H2C00634F02814D8D8E3C760626874DE1"><enum>(iv)</enum><text>such other
persons as the qualified regulatory authority considers appropriate.</text>
</clause></subparagraph><subparagraph id="H293732DD64714550982D848B016ABE6B"><enum>(D)</enum><text>Such other
information as may be necessary for the suitability analysis required under
subsection (c).</text>
</subparagraph><subparagraph id="HF5494C0E125D43DAA24A149B18720CA5"><enum>(E)</enum><text>Disclosure of all
other applications for licenses previously or simultaneously submitted under
this paragraph to other qualified regulatory authorities and whether those
applications are pending, were granted, or were denied.</text>
</subparagraph><subparagraph id="H5D2699294A364B709B576E3EF63F435B"><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.</text>
</subparagraph><subparagraph id="HC945AC1CC5244D3F891A1AB654B7A164"><enum>(G)</enum><text>A certification by
the applicant that the applicant agrees to be subject to—</text>
<clause id="H5E58DDC6E578470A8A942CEC0472A142"><enum>(i)</enum><text>jurisdiction in
Federal courts and in the courts of the State or federally recognized Indian
tribe of the qualified regulatory authority to which the applicant has applied;
and</text>
</clause><clause id="H6298F5F019704DC89BD4F4AC631233B7"><enum>(ii)</enum><text>all
applicable provisions of Federal law.</text>
</clause></subparagraph></paragraph><paragraph id="H279D1E6A78EA4DF9A9C7CEB779BA72BA"><enum>(2)</enum><header>Notice to the
Secretary</header><text>Each qualified regulatory authority 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. Such report shall include such information or
documentation as the Secretary may require.</text>
</paragraph></subsection><subsection id="H1E5D71A839E74A36A7B68269A32D3DA2"><enum>(c)</enum><header>Standards for
license issuance; suitability qualifications and disqualification
standards</header>
<paragraph id="H4BB28D2AE6844E578A6551372080FD55"><enum>(1)</enum><header>Suitability for
licensing</header><text display-inline="yes-display-inline">No applicant shall
be eligible to obtain a license under this title unless a qualified regulatory
authority, 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 deemed to be in control of the applicant, all significant
vendors of the applicant, and any other person determined by the qualified
regulatory authority as having significant influence on the applicant are
suitable for licensing or for receiving a certificate of suitability as
applicable.</text>
</paragraph><paragraph id="H6E8DC63DBBB6459EAB548792F7B8D924"><enum>(2)</enum><header>Investigation</header>
<subparagraph id="HFED2407375B74FDB9E3171B55914D84E"><enum>(A)</enum><header>Determination of
suitability</header><text>Prior to issuing a license under this section, a
qualified regulatory authority shall conduct the investigation and analysis
described in paragraph (1) to determine whether the applicant or person—</text>
<clause id="H9EE7559C0458460E931B291E09BDF0DF"><enum>(i)</enum><text>is a
person of good character, honesty, and integrity;</text>
</clause><clause id="HF1B614DE5C614680BC19DA4CB9E1BEE5"><enum>(ii)</enum><text>is
a person whose prior activities, criminal record, if any, reputation, habits,
and associations do not—</text>
<subclause id="H2DDC076A88854F44AC92B914D960D567"><enum>(I)</enum><text>pose a threat to
the public interest or to the effective regulation and control of Internet
poker facilities; or</text>
</subclause><subclause id="HE99B736337CD4182A822D1A74DE79ED2"><enum>(II)</enum><text>create or enhance
the dangers of unsuitable, unfair, or illegal practices, methods, and
activities in the conduct of Internet poker facilities or the carrying on of
the business and financial arrangements incidental to such facilities;</text>
</subclause></clause><clause id="HB2F1874F88DE49188E2B469218BCA09E"><enum>(iii)</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>
</clause><clause id="H99AAC6E3DF574603AD8E4283D4FD4141"><enum>(iv)</enum><text>with respect to
applicants, has or guarantees acquisition of adequate business competence and
experience in the operation of casino gaming facilities or Internet poker
facilities;</text>
</clause><clause id="H436F23DD08B246EAA8D4F94F30D26E63"><enum>(v)</enum><text>with
respect to applicants, has or will obtain sufficient financing for the nature
of the proposed operation and from a source that the qualified regulatory
authority has not found unsuitable under the criteria established under
subparagraph (B); and</text>
</clause><clause id="H00BABC97AB5440A886BEBDF96C072AEE"><enum>(vi)</enum><text>has
disclosed to the qualified regulatory authority all known affiliations or
relationships, whether direct or indirect.</text>
</clause></subparagraph><subparagraph id="HDE5F72C8286A454C8E9855F9B3DD6549"><enum>(B)</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>
<clause id="HB3B42C53AEDE41B0826CF896DCD8312F"><enum>(i)</enum><text>has
failed to provide information and documentation material to a determination of
suitability for licensing under paragraph (1);</text>
</clause><clause id="HA69E242C77D5425B892FC7D55371E3EE"><enum>(ii)</enum><text>has
supplied information which is untrue or misleading as to a material fact
pertaining to any such determination;</text>
</clause><clause id="H899BDB484BCC4EA989779FAD49E2BA9A"><enum>(iii)</enum><text>has been
convicted of an offense that is punishable by imprisonment of more than 1
year;</text>
</clause><clause id="HDF1D75EB72A54B1599EF6B76C8DE5B0B"><enum>(iv)</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>
</clause><clause id="H3B441F203E3441FD9F3470CEA6D6B9B5"><enum>(v)</enum><text>has
not certified in writing that the person submits to personal jurisdiction in
the United States; or</text>
</clause><clause id="H3EFD11ED0BAC4591B236FDBAB9E5908C"><enum>(vi)</enum><text>fails to comply
with such other standard as the applicable qualified regulatory authority
considers appropriate.</text>
</clause></subparagraph><subparagraph commented="no" id="H2229C85D8BD548D6856D1F8888CC1733"><enum>(C)</enum><header>Ineligibility
due to prior engagement in unlawful Internet poker</header>
<clause commented="no" id="H332F17B736C64690B5987201C52E9CCE"><enum>(i)</enum><text display-inline="yes-display-inline">No applicant nor any other person may be
eligible for a license or certificate of suitability under this section if such
applicant or person has been convicted of accepting bets or wagers from any
other person through an Internet poker facility in felony violation of Federal
or State law. The ineligibility of an applicant or other person under this
subparagraph shall terminate on the date that is 5 years after the date on
which the first license is issued under this section.</text>
</clause><clause commented="no" id="H21356D548ADC41C695B0B0A4545BC21B"><enum>(ii)</enum><text display-inline="yes-display-inline">No applicant or person who has purchased
the assets of a person described in clause (i) subsequent to the enactment of
this Act shall be eligible for a license or certificate of suitability under
this section until the date that is 5 years after the date on which the first
license is issued.</text>
</clause></subparagraph></paragraph><paragraph id="H6032BEF84A0D461B918FA4C7DF568A62"><enum>(3)</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="H6423D46ED041473A9FBA02C5A1C7D248"><enum>(4)</enum><header>Certificate of
suitability for significant vendors</header>
<subparagraph id="HB7DC93D4F0474B258149EA6AA3AB02C1"><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="H15457BC2C1C5418B80E42B613F669F2A"><enum>(B)</enum><header>Revocation of
certificate</header><text>A qualified regulatory authority 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="H7833CEB70CAC4D949AC644AFB2C172D6"><enum>(C)</enum><header>Certificates
issued by other qualified regulatory authority</header><text>A qualified
regulatory authority may, but need not, accept a certificate issued to a
significant vendor by another qualified regulatory authority as evidence of the
suitability of the significant vendor.</text>
</subparagraph></paragraph><paragraph id="HEC43C7CE8C854BCBBD413DF498F1D67D"><enum>(5)</enum><header>Other
vendors</header>
<subparagraph id="H8AF14A77657D42BAAF0848EA9DAEF18E"><enum>(A)</enum><header>Notice</header><text>A
licensee shall promptly notify the qualified regulatory authority that issued
the license to the licensee of all persons that are not significant vendors
that—</text>
<clause id="H60D3AF449AA34A7B95E236FA6F123D28"><enum>(i)</enum><text>direct, provide,
or solicit customers to or for the licensee’s Internet poker facility, or
materially assist in any of those tasks, in return for a commission or other
fee;</text>
</clause><clause commented="no" id="H21CF6BDE18BE44A4851D1D528EEB1F93"><enum>(ii)</enum><text>hold themselves
out to the public as offering bets or wagers on licensee’s behalf;</text>
</clause><clause commented="no" id="HBF4DE70446FF4028BAF30746BF51C681"><enum>(iii)</enum><text>offer bets or
wagers under their own names or brands but using and relying on licensee’s
Internet poker facilities;</text>
</clause><clause commented="no" id="HE0F9145066264CF2990E20E08658139C"><enum>(iv)</enum><text>license
trademarks, trade names, service marks, or other similar intellectual property
to the licensee; or</text>
</clause><clause id="HB1F52BE6974D4B1EB3A19A1CA750E1FF"><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="HA8BC773359FD423BADA58A6F99172B28"><enum>(B)</enum><header>Suitability of
other vendors and persons</header><text>A qualified regulatory authority 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 regulatory authority 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="HE89C1780401F442591F2E8FC77AE4E24"><enum>(i)</enum><text>is
described in subparagraph (A) with respect to the applicant or licensee;</text>
</clause><clause id="HD820D8A3AA4345B1B61A58E9AB4BF88C"><enum>(ii)</enum><text>provides services
to an applicant or licensee and the qualified regulatory authority 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="HC4B4E3D96FB34C578BB80B9D32165397"><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 regulatory authority determines
such person may pose a threat to the integrity of Internet poker facilities
operated by the applicant or licensee.</text>
</clause></subparagraph><subparagraph id="H88B58CFD7CB448F097F45C59D5FA7F56"><enum>(C)</enum><header>Information</header><text>A
qualified regulatory authority may require such information from an applicant,
licensee, significant vendor or other person identified in this paragraph as
the qualified regulatory authority considers necessary to carry out this
paragraph.</text>
</subparagraph></paragraph><paragraph id="HC9A2A003085D40C3B0AB8C9C52F59C98"><enum>(6)</enum><header>Enforcement
actions</header>
<subparagraph id="HD5B1DC80B93C49248B7C2E2BB7D6C09D"><enum>(A)</enum><header>In
general</header><text>If the Secretary or the qualified regulatory authority
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, fails to meet the suitability requirements of this
subsection at any time during the tenure of the license, the Secretary or the
qualified regulatory authority may take action to protect the public interest,
including, if the Secretary or qualified regulatory authority considers
necessary, the suspension or termination of the license.</text>
</subparagraph><subparagraph id="HCED0A0D0961E4A64A8772F9A3AAA0E9A"><enum>(B)</enum><header>Imposition of
conditions including removal of parties</header><text>Notwithstanding a
determination under subparagraph (A), the Secretary or the qualified regulatory
authority 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="HB95A7D5864F24A4A8C77D85085E1695C"><enum>(i)</enum><text>the
identification of any person determined to be unsuitable; and</text>
</clause><clause id="H3ED1987BEA6448809896BDDF36A9A05C"><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></paragraph><paragraph id="H510C9217477745D7A0195AFA8F6DC40B"><enum>(7)</enum><header>Administrative
provisions</header>
<subparagraph id="HE0774C40CDFF45728A023125A0748B81"><enum>(A)</enum><header>Background check
and investigation</header><text>Each qualified regulatory authority shall
establish standards and procedures for conducting background checks and
investigations for purposes of this subsection.</text>
</subparagraph><subparagraph id="H4392946B15D74856839F87472C21578B"><enum>(B)</enum><header>Privilege</header><text>Any
written or oral statement made in the course of an official proceeding of the
Secretary or a qualified regulatory authority, 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, is privileged and shall not give rise to liability for defamation or
relief in any civil action.</text>
</subparagraph><subparagraph id="HEEDD2BD05FBF43E39EB83F8C954D72B1"><enum>(C)</enum><header>Additional
privilege</header><text>Notwithstanding <external-xref legal-doc="usc" parsable-cite="usc/5/552">section 552</external-xref> of title 5, United States
Code, or any other Federal, State, or tribal law to the contrary, any
communication or document of an applicant, licensee, significant vendor, or
affiliate thereof, which is made or transmitted pursuant to this title to the
Secretary or a qualified regulatory authority or any of their agents or
employees, except information that is already public, shall be privileged and
shall not be disclosed by the Secretary or the qualified regulatory authority
without the prior written consent of the applicant, licensee, significant
vendor, or affiliate thereof (as applicable), or pursuant to a lawful court
order, grand jury subpoena, or similar procedure. To the extent practicable,
the Secretary or qualified regulatory authority shall provide timely notice of
the proceedings to the applicant, licensee, significant vendor, or affiliate
thereof (as applicable).</text>
</subparagraph><subparagraph id="H06D50887BB4E4C479663BC65FA796F58"><enum>(D)</enum><header>Preservation of
privilege recognized under other provisions of law</header><text>Any privilege
recognized under any other applicable 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 regulatory authority.</text>
</subparagraph><subparagraph id="HCAC7D32DBC924957B73C44615481BA17"><enum>(E)</enum><header>Confidentiality</header><text>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 regulatory authority without a lawful court order or
as otherwise expressly required by law, if the communication or document
is—</text>
<clause id="H1BDD8B2778334C3A8202664E52B72A40"><enum>(i)</enum><text>required by the
Secretary or qualified regulatory authority 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; or</text>
</clause><clause id="H7A4014AEEB7C4FD8ADE2FDE588F1E8C0"><enum>(ii)</enum><text>prepared or
obtained by an agent or employee of the Secretary or qualified regulatory
authority that contains information described in clause (i).</text>
</clause></subparagraph></paragraph></subsection><subsection id="H7AAF5011EFCE476A96E6A90D2751971D"><enum>(d)</enum><header>Additional
requirements for a license</header><text>In order to obtain a license under
this section, an Internet poker facility shall demonstrate to the qualified
regulatory authority that such facility maintains appropriate safeguards and
mechanisms, in accordance with standards established by the qualified
regulatory authority, including appropriate safeguards and mechanism to—</text>
<paragraph id="HC3ABB55DB9A0450D9570B6CCE2CA7D6C"><enum>(1)</enum><text>ensure, to a
reasonable degree of certainty, that the individual placing a bet or wager is
not less than 21 years of age;</text>
</paragraph><paragraph commented="no" id="H73B2AD159F3942D78CF5068CC8E5E476"><enum>(2)</enum><text>ensure, to a
reasonable degree of certainty, that the individual placing a bet or wager is
physically located in a jurisdiction that has not prohibited such bets or
wagers at the time the bet or wager is placed;</text>
</paragraph><paragraph id="H7C7C24E5080F49A590E3D9D80F733541"><enum>(3)</enum><text>ensure, to a
reasonable degree of certainty, that all taxes relating to Internet poker from
persons engaged in bets or wagers relating to such Internet poker are collected
or reported, as required by law, at the time of any payment of proceeds of such
bets or wagers;</text>
</paragraph><paragraph id="H355F11E701F04891ABF5D40DE8DAFF9F"><enum>(4)</enum><text>ensure that all
taxes relating to the operation of an Internet poker facility from any licensee
are collected and disbursed as required by law and that adequate records to
enable later audit or verification are maintained;</text>
</paragraph><paragraph id="H85741D5540F1486B9149D6E765861EA9"><enum>(5)</enum><text>prevent, to a
reasonable degree of certainty, fraud, money laundering, and terrorist
financing;</text>
</paragraph><paragraph id="H70E70A964DCF4749A0277B4D73AEE243"><enum>(6)</enum><text>ensure, to a
reasonable degree of certainty, compliance with the requirements of section
106;</text>
</paragraph><paragraph id="H490AD252C0AC4287AF6B378C3FDFCBE1"><enum>(7)</enum><text>protect, to a
reasonable degree of certainty, the privacy and online security of any person
engaged in bets or wagers with the licensee’s Internet poker facility;</text>
</paragraph><paragraph id="HF61CF31DE9324A2B9DC2E600CB991405"><enum>(8)</enum><text>ensure that any
user fee required under subsection (e) is paid to the qualified regulatory
authority;</text>
</paragraph><paragraph id="HEB8FA46D98D64C0BA4A1C61520C189EA"><enum>(9)</enum><text>ensure, to a
reasonable degree of certainty, that Internet poker 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 <term>bots</term>) that make bets or wagers according
to algorithms; and</text>
</paragraph><paragraph id="HE838C5D540A64D9E84A427F16B747769"><enum>(10)</enum><text display-inline="yes-display-inline">such other mechanisms and safeguards as the
qualified regulatory authority shall require, including independent testing of
hardware, software, communication equipment, and other necessary devices to
ensure the integrity, accountability, randomness of play and security of the
network.</text>
</paragraph></subsection><subsection commented="no" id="H54177AC0A2B0459F8D82D0655E757127"><enum>(e)</enum><header>Fees for
administrative expenses</header>
<paragraph commented="no" id="H046D4478F2764BEC96B708F2198B76CC"><enum>(1)</enum><header>User
fees</header>
<subparagraph commented="no" id="H8CC8EFBD765347A28C6B7A5FAAF54C34"><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 regulatory authority 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 regulatory authority determines
is necessary to—</text>
<clause commented="no" id="H96D9EF20203048F28862A33C0FF78DCF"><enum>(i)</enum><text>meet the qualified
regulatory authority's expenses in carrying out such administration, review, or
examination; and</text>
</clause><clause commented="no" id="H721C904FA2CF4388A5FE203A435EAB7B"><enum>(ii)</enum><text display-inline="yes-display-inline">to cover the qualified regulatory
authority’s share of the amount determined by the Secretary under paragraph (3)
to cover the expenses incurred by the Secretary in carrying out the provisions
of this title.</text>
</clause></subparagraph><subparagraph commented="no" id="H51388AC4E19C479F9C1C4E077D150856"><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 commented="no" id="H694C9F954EB64E978FD821C07FFFD94A"><enum>(C)</enum><header>Expenses for
general administration</header><text>Expenses for general administration shall
be assessed against all licensees equally.</text>
</subparagraph><subparagraph commented="no" id="H1568BF2C874446E584A850E8ED918824"><enum>(D)</enum><header>Disposition of
user fees</header><text>Amounts assessed by a qualified regulatory authority as
user fees under this paragraph shall—</text>
<clause commented="no" id="H801FEAF741A6449CA908E090355D3B01"><enum>(i)</enum><text display-inline="yes-display-inline">be remitted to the Secretary, in the amount
of that State’s or federally recognized Indian tribe’s share as determined
under paragraph (3) for deposit in the Treasury in accordance with subparagraph
(B) of such paragraph; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H7CC3D962CB02497A9E575AF0A97363CC"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="HC558D93D57104C7EBB3D94423A6B84A7"><enum>(I)</enum><text>be available to the
qualified regulatory authority to cover expenses incurred by the qualified
regulatory authority in carrying out the provisions of this title; and</text>
</subclause><subclause commented="no" id="H6758711B31834C1F89E73D3E3CB79F83" indent="up1"><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 commented="no" id="HD3FFDE7A5BDC4EB4B68F4022FA2B4045"><enum>(E)</enum><header>Collection</header>
<clause commented="no" id="HA7EAC6E0B917440CB988CAEF92A71506"><enum>(i)</enum><header>Referral</header><text>If
a licensee or significant vendor fails to pay a user fee to a qualified
regulatory authority under this paragraph after the assessment of the fee has
become final—</text>
<subclause commented="no" id="HCEF90445605344D0A39311E9B7C26E06"><enum>(I)</enum><text display-inline="yes-display-inline">the qualified regulatory authority may
recover the amount assessed by action in any State or tribal court in the
jurisdiction of the qualified regulatory authority, or in any appropriate
United States district court, along with any costs of collection and attorney
fees; and</text>
</subclause><subclause commented="no" id="H41015BF660B041998A96041A956E6DCE"><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>
</subclause></clause><clause commented="no" id="H0A2B78F4F85D4B6CB96878217BCF9A68"><enum>(ii)</enum><header>Assessment
reviewable</header><text>In any civil action under clause (i), a court may
review the validity and adjust the amount of the user fees.</text>
</clause></subparagraph><subparagraph commented="no" id="H3F6EE15029694A9B950C6E697456C3C5"><enum>(F)</enum><header>User fees of
significant vendors may be paid 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 commented="no" id="H8DFA16BA2D6D4EEE9AB0CFE16655B382"><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><paragraph commented="no" id="H044CD30D798443FDA9F069C34B0F3400"><enum>(3)</enum><header>User fees
established by Secretary</header>
<subparagraph commented="no" id="HD33D2A99D7854C6FA210EA8BF96393BD"><enum>(A)</enum><header>In
general</header><text>The Secretary shall determine the funding requirements
necessary to meet the Secretary’s cost of administering this title and notify
each qualified regulatory authority of its proportional share to be collected
by such regulatory authority under paragraph (1)(A).</text>
</subparagraph><subparagraph commented="no" id="HF5F7BBBA4E464D1182AED487FB7949F1"><enum>(B)</enum><header>Disposition of
user fees</header><text>Amounts remitted to the Secretary under paragraph
(1)(D)(i) shall—</text>
<clause commented="no" id="HB9C5E467C65946049F1E51DF77105CC8"><enum>(i)</enum><text>be deposited into
a separate account in the Treasury to be known as the <term>Internet Poker
Oversight Fund</term>; and</text>
</clause><clause id="H930913B0B5F4405CAAF6F6C3B8DD0EFF"><enum>(ii)</enum><text>be
available to the Secretary in such amounts, subject to appropriations, to cover
expenses incurred by the Secretary in carrying out the provisions of this
title.</text>
</clause></subparagraph></paragraph></subsection><subsection id="HF95FB59212B2445D9D2F1B9091C90E49"><enum>(f)</enum><header>Approval of
license</header>
<paragraph id="H8C11FB0AA06140419CCA0AFABF00A04C"><enum>(1)</enum><header>In
general</header><text>A qualified regulatory authority may issue licenses under
this title for the operation of an Internet poker facility to any applicant
that—</text>
<subparagraph commented="no" id="H40250A7E438B4AEA837CFFD42BA9096D"><enum>(A)</enum><text>owns or controls a
company that operates a casino gaming facility or qualified card room and owned
or controlled such facility or card room on the date that is 10 days before the
date of enactment of this Act;</text>
</subparagraph><subparagraph commented="no" id="H8586DAA414AD42C78044308BFE555857"><enum>(B)</enum><text>for the duration
of the 5-year period ending on the date on which the applicant submits an
application under subsection (b)(1), owned or controlled a casino gaming
facility or qualified card room;</text>
</subparagraph><subparagraph commented="no" id="H3A3F4588F83E4F689DBC4BDB518FC17E"><enum>(C)</enum><text>is owned or
controlled by a person who—</text>
<clause commented="no" id="H365350FD4E91494C81778F0647F56911"><enum>(i)</enum><text>owns or controls a
company that operates a casino gaming facility or qualified card room and owned
or controlled such facility or card room on the date that is 10 days before the
date of enactment of this Act; or</text>
</clause><clause commented="no" id="H92418AAB82B44A35B71FAEA702FCD681"><enum>(ii)</enum><text>for the duration
of the 5-year period ending on the date on which the applicant submits an
application under subsection (b)(1), owned or controlled a casino gaming
facility or qualified card room;</text>
</clause></subparagraph><subparagraph commented="no" id="HD00A33CDA99942888F9620EAB81E9C5F"><enum>(D)</enum><text>for the duration
of the 5-year period ending on the date on which the applicant submits an
application under subsection (b)(1), under license issued by a State or
federally recognized Indian tribe manufactured and supplied to casino gaming
facilities with not fewer than 500 slot machines; and</text>
</subparagraph><subparagraph id="H02F7B50C91134295A0DB7ED4725D897A"><enum>(E)</enum><text>meets other
criteria established by the Secretary or by the qualified regulatory authority
under this title.</text>
</subparagraph></paragraph><paragraph id="HE288D34632D24CE593F4339699C2A792"><enum>(2)</enum><header>Expansion of
licensees only if no risk to public</header><text>Beginning on the date that is
2 years after the date of first issuance specified in section 115(b), the
Secretary may, by rule, authorize the issuance of licenses to applicants other
than those described in paragraph (1) if the Secretary determines, after
providing the public with notice and an opportunity to comment, that such
authorization will not significantly increase the risk that the standards
described in subsection (d) will not be satisfied by licensees.</text>
</paragraph><paragraph id="H6859936168C748C5826BE96D6D4011EE"><enum>(3)</enum><header>Authority of
Secretary to revoke licenses</header><text>Notwithstanding any certificate of
suitability or license issued by a qualified regulatory authority, the
Secretary may suspend or revoke such certificate or license if the Secretary
has reason to believe that the recipient does not meet the suitability
requirements established under subsection (c) or, as applicable, any other
requirement imposed on a licensee under this title. The Secretary may not
overturn a decision by a qualified regulatory authority to deny or to terminate
a license or to deny or revoke a certificate of suitability.</text>
</paragraph><paragraph id="H78265C2290364998982D56C949ABE045"><enum>(4)</enum><header>Conflicts
between qualified regulatory authorities</header><text>If a qualified
regulatory authority denies a license, terminates a license, denies a
certificate of suitability, or revokes a certificate of suitability to a person
and within 12 months of such denial, termination, or revocation another
qualified regulatory authority grants such person a license or certificate of
suitability, the Secretary shall—</text>
<subparagraph id="H8C1B6C01559A4451BC44767ADD0FF9A8"><enum>(A)</enum><text>commence a review
of such license or certificate of suitability; and</text>
</subparagraph><subparagraph id="H6BAB8CF4393340EF86596B17E6776414"><enum>(B)</enum><text>not later than 90
days after such commencement, determine whether to act under paragraph
(3).</text>
</subparagraph></paragraph><paragraph commented="no" id="H9DB80133D2174000808F22BCDE97C9E7"><enum>(5)</enum><header>Control
defined</header><text>In this subsection, the term <term>control</term> means,
with respect to a person, 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="HD833424CCE6342BD89E67CCE66B2F33B"><enum>(g)</enum><header>Location of
remote gaming equipment</header><text display-inline="yes-display-inline">A
licensee shall maintain its remote gaming equipment within the territory of the
United States throughout the term of its license. A qualified regulatory
authority shall require applicants that seek a license from such qualified
regulatory authority to locate that equipment within the territory of the State
or on the Indian land of the tribe of the qualified regulatory
authority.</text>
</subsection><subsection id="H38CB79D67D44415E888C596573F2EB10"><enum>(h)</enum><header>License is a
privilege not a right</header><text>A decision by a qualified regulatory
authority 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 Federal law or the law of any jurisdiction other than the jurisdiction of
the qualified regulatory authority. The State or federally recognized Indian
tribe of the jurisdiction of the qualified regulatory authority may, but need
not, provide an opportunity to appeal.</text>
</subsection><subsection id="H8390F2BA686142A3A6F86CCC81C784D0"><enum>(i)</enum><header>Term, renewal,
and transfer of license</header>
<paragraph id="H363E9959CC4543258789EBDD3488BF92"><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. A license may be renewed in accordance with requirements
prescribed by the qualified regulatory authority that issued the license under
this title.</text>
</paragraph><paragraph id="HCCB40D2698B44A17B45814B5874E3260"><enum>(2)</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 regulatory
authority that issued the license. The qualified regulatory authority shall at
a minimum ensure the suitability requirements of subsection (c) continue to be
satisfied before approving any such transfer or change.</text>
</paragraph></subsection><subsection id="HFBDBE6E80B2B400CB3A7039C9F8A59B1"><enum>(j)</enum><header>Administrative
provisions</header>
<paragraph id="H6444802171D54939819A07BA894E7168"><enum>(1)</enum><header>Determination of
Internet poker</header>
<subparagraph id="H4F274FA5B4964220ACF2879AEAD1BF8E"><enum>(A)</enum><header>Initial
determination by qualified regulatory authority</header><text>A determination
of whether a game, hand, tournament, or other contest of a licensee is Internet
poker shall be made in the first instance by the qualified regulatory authority
that issued the license to such licensee under this title.</text>
</subparagraph><subparagraph id="HD7216D34CAD740D189CDBDDD564EEFC2"><enum>(B)</enum><header>Challenges</header>
<clause id="H6C58E558CCF2473CA2F65549BA32890B"><enum>(i)</enum><header>Challenge made
with Secretary</header><text>A licensee or qualified regulatory authority may
file a challenge with the Secretary regarding any determination of the
qualified regulatory authority under subparagraph (A) that a game, hand,
tournament, or other contest of another licensee is Internet poker.</text>
</clause><clause id="H916E00FC1A2E408E9D2AB95FFDF06AF2"><enum>(ii)</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 of whether the game, hand,
tournament, or other contest is Internet poker not later than 30 days after the
date on which the challenge is made.</text>
</clause><clause id="H901141E92E26414E8D6C683A5C97B9BE"><enum>(iii)</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 (ii).</text>
</clause></subparagraph><subparagraph id="HC5B15AA5054A46DBA579C6B8762717BF"><enum>(C)</enum><header>Appeals</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 regulatory authority may
appeal such determination to the United States District Court for the District
of Columbia. Such court shall set aside the Secretary’s determination if the
court determines that the Secretary's determination was—</text>
<clause id="H66D1A4384CBC490F94C51F1E7C39ED6D"><enum>(i)</enum><text>arbitrary,
capricious, an abuse of discretion, or otherwise not consistent with law;
or</text>
</clause><clause id="H8500309B87804D5F92123ADB97311705"><enum>(ii)</enum><text>without
observance of procedure required by law.</text>
</clause></subparagraph></paragraph><paragraph id="HBA37B3EC1B8A455FB9CD173058713CCD"><enum>(2)</enum><header>Challenges under
State or federally recognized Indian tribal law</header><text>Except as
provided in paragraph (1) and unless otherwise specifically provided in this
title, actions taken by a qualified regulatory authority may be challenged by
applicants and licensees only as permitted under the law of the State or
federally recognized Indian tribe in which the qualified regulatory authority
is located.</text>
</paragraph><paragraph id="HABB5C9E7C0104AFFB1B903FEB1B63A61"><enum>(3)</enum><header>Summons</header>
<subparagraph id="HDD763BEAD254444C951389AD8CCBE3E6"><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="H8D5F6228DDFD432BA1184C929E6335F6"><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="HE5097A4AE84A42C3976C4265B435286D"><enum>(i)</enum><text>business location
of a licensee or applicant for a license;</text>
</clause><clause id="H14958C83A8524439821E0EC756753F16"><enum>(ii)</enum><text>designated
location in the State or Indian lands of the applicable qualified regulatory
authority; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HBC214D3F6A2140068B8EB41F04CA043E"><enum>(iii)</enum><text>designated
location in the District of Columbia.</text>
</clause></subparagraph><subparagraph id="HB945C7A765D54E4A8A63E7323E0B7596"><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="HE578052B83F14A3A950374E22E33C225"><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="H8760A44754724CC0A3EC96E1AA8F9B57"><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="H9258AF51142F44E4999925B45FFBA22E"><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="H5740AF7161FB4E6FBF907BD31A8B86B6"><enum>(ii)</enum><text>the
person summoned is an inhabitant; or</text>
</clause><clause id="HB57AD568199441D7B2B666010BA8DB48"><enum>(iii)</enum><text>the person
summoned carries on business or may be found.</text>
</clause></subparagraph><subparagraph commented="no" id="HD6977A97D8D341ABB95BFE8E38EC436F"><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 commented="no" id="HE042BF2C985E40DA8CF449603A5921B6"><enum>(i)</enum><text>to produce books,
papers, records, and other data;</text>
</clause><clause commented="no" id="HFBDC2078400F4E308DACF760E1656DFE"><enum>(ii)</enum><text>to give testimony
as may be necessary to explain how such material was compiled and
maintained;</text>
</clause><clause commented="no" id="H723579DC3EDB489E82C4EB5B80B8FD7A"><enum>(iii)</enum><text>to allow the
Secretary to examine the business of a licensee; and</text>
</clause><clause commented="no" id="HB7A090B58C6F4E22BF320CFDB8B7A5C0"><enum>(iv)</enum><text>to pay the costs
of the proceeding.</text>
</clause></subparagraph><subparagraph commented="no" id="HA902BC9C90494ECE8940431DC9ADCEA3"><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></section><section id="H20C62C7B5E3645DFB11A7A4C6D2C32B9"><enum>105.</enum><header>Enforcement</header>
<subsection id="HFCD17B326267444482C8B8ED1F45EC00"><enum>(a)</enum><header>Disciplinary
action</header>
<paragraph id="HA68760174D7746A483C75D8D83F7D52D"><enum>(1)</enum><header>In
general</header><text>A licensee may be subject to disciplinary action,
including suspension or revocation of its license, by a qualified regulatory
authority 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="H4E9FDD9562AE4AF2A2E01B027D527E18"><enum>(2)</enum><header>Initiating
enforcement</header><text>Only the Secretary or the qualified regulatory
authority which granted the license may initiate disciplinary action under this
title.</text>
</paragraph><paragraph id="HE92827FC9C984C208D15886A0E641814"><enum>(3)</enum><header>Savings
provision</header><text>Nothing in this subsection shall be construed to
prohibit a law enforcement authority or regulatory body that has authority over
a licensee or an affiliated person, independent from this title, from taking
action under the law of that law enforcement authority or regulatory
body.</text>
</paragraph><paragraph id="HA5A21D3B8CD742EB816523FEB3DD21E5"><enum>(4)</enum><header>Disciplinary
procedures</header>
<subparagraph id="H2E23C93C4DB2458E8FD2966BBFDD861C"><enum>(A)</enum><header>In
general</header><text>A qualified regulatory authority 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="H50778922EECE42A29A3C1EFB28BF8EB7"><enum>(B)</enum><header>In accordance
with law of jurisdiction of qualified regulatory authority</header><text>The
disciplinary process shall proceed according to the law of the jurisdiction of
the applicable qualified regulatory authority.</text>
</subparagraph></paragraph><paragraph id="HAC5FF159DFD34D82A7BA2809BD510058"><enum>(5)</enum><header>Finality of
action and appeals</header>
<subparagraph commented="no" id="HB64C9E11A5994FAEB8324DEFC3F4A7E6"><enum>(A)</enum><header>Finality</header><text>Any
disciplinary action shall be treated as a final action.</text>
</subparagraph><subparagraph id="H287FB8028B4642B8B3212BE40DE621EA"><enum>(B)</enum><header>Action by
qualified regulatory authorities</header><text>A licensee aggrieved by
disciplinary action by a qualified regulatory authority may file an appeal in
the jurisdiction where the qualified regulatory authority taking such action is
located only to the extent permitted by the law of such jurisdiction.</text>
</subparagraph><subparagraph id="H4914309C89EF4B64B4E3C103913AA5F4"><enum>(C)</enum><header>Action by
Secretary</header><text>A licensee aggrieved by disciplinary action by the
Secretary may file an appeal in the United States District Court for the
District of Columbia. Such court shall set aside the action if it determines
that the action was—</text>
<clause id="H62A75C19DC784FD690B159905B39F0FF"><enum>(i)</enum><text>arbitrary,
capricious, an abuse of discretion, or otherwise not consistent with law;
or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H6421B797A9AF41ACA89219496E67614D"><enum>(ii)</enum><text>without
observance of procedure required by law.</text>
</clause></subparagraph></paragraph><paragraph id="H946747672C6349D1AB54486D5070A6FD"><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="H1B1358A9617A45B2A8C7BA6A04154BB2"><enum>(A)</enum><text>the appellant has
a reasonable likelihood of success on the merits; and</text>
</subparagraph><subparagraph id="H1592FD9121D14A00B524FDC879209BF9"><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="H0350EDBE5B4745DA9641C5AD9C275012"><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="H4A263AED0F604FA6AF5D8EA6B87DFB66"><enum>(A)</enum><text>return all
customer funds in an orderly manner not later than 30 days after the date of
the revocation of the license; or</text>
</subparagraph><subparagraph id="H37B3CF6FFE2543B8B4025B0D145867E0"><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="HE42E0A4165474F799A08DF983991333F"><enum>(8)</enum><header>Referral to
Attorney General</header><text display-inline="yes-display-inline">If, in the
course of carrying out the provisions of this title, the Secretary or a
qualified regulatory authority finds a substantial basis to believe that a
person has violated section 103, the Secretary or qualified regulatory
authority shall refer such matter to the Attorney General.</text>
</paragraph></subsection><subsection id="H0E468AFC466C459D9791D2B95C57ECE9"><enum>(b)</enum><header>Civil money
penalties</header>
<paragraph id="H3EA8E2EB33244E70813F561FDDCDC105"><enum>(1)</enum><header>In
general</header>
<subparagraph id="H74405CC260C94FA6B643A407459AAC20"><enum>(A)</enum><header>Penalties
assessed by qualified regulatory authorities</header><text>A qualified
regulatory authority 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="H7D4B9B2083434A729E22717D0A8D8595"><enum>(i)</enum><text>the
amount involved in the violation, if any;</text>
</clause><clause id="H7E72927211374724929458E2FD1C15B7"><enum>(ii)</enum><text>$250,000 for an
individual and $750,000 for a corporation; or</text>
</clause><clause id="HD301E8C8C16B4AA38D6609C773BD5A5B"><enum>(iii)</enum><text>such other
amount as provided under the applicable State or tribal law of the qualified
regulatory authority.</text>
</clause></subparagraph><subparagraph id="H9C2E47D592904347B578E7B0D7E0B08E"><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="H17583ABE1E6A46C5B4BDCE41F88FAB78"><enum>(i)</enum><text>the
amount involved in the violation, if any; or</text>
</clause><clause id="H016A0113DD1F4480BFBBB10B696E02CC"><enum>(ii)</enum><text>$250,000 for an
individual and $750,000 for a corporation.</text>
</clause></subparagraph><subparagraph id="H6C310AA16CC649EBA999E157FD84264C"><enum>(C)</enum><header>Not
cumulative</header>
<clause id="H24EE846802BC42C6993A5D1EC9328432"><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="H089F8F48F2824F32A02C7E55C995F1D5"><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="H6120BE2AEF4C402D9C204A0357C72AAF"><enum>(D)</enum><header>Failure to
obtain a license</header><text>Notwithstanding any other provision of law, the
Secretary may assess upon a person that is required to obtain a license under
this title, but fails to obtain a license under this title, a civil penalty of
not more than the greater of—</text>
<clause id="H80E47D81F6E44EE9A10C5D99EE38D5C8"><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="H70EFED2C83C54B0E93FB9C8E81C3C882"><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="HDEE241B83203434F9F2C463B550562B6"><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="HDF5A8D29F051436BB43FA3924341073A"><enum>(2)</enum><header>Assessment</header>
<subparagraph id="H904A5A35C8064B11B0A6807038029108"><enum>(A)</enum><header>Enforcement by
qualified regulatory authorities</header><text display-inline="yes-display-inline">Qualified regulatory authorities and such
other entities as are authorized by applicable State and tribal law shall
enforce the provisions of this title under the law of the applicable State or
federally recognized Indian tribe, and penalties shall be determined,
reviewable, collectable, and disposed of as provided under such law.</text>
</subparagraph><subparagraph id="HDB3B1A5F042D4856874A47108DE8543B"><enum>(B)</enum><header>Enforcement by
Secretary</header>
<clause id="H379C6F75219C413A95682D5B5B2FDA4B"><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="H5575A8180835412887AE6B0F2EF0EDC8"><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="HB3CCFD109D554366B226D69F7B9DCCC1"><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="HECB541168EE645C1AF0224ED0D50A1C2"><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="HFEF07C7A66174900A4600EEF66603147"><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="H02F8A4DF8F584FBD8D5A6A250340C165"><enum>(II)</enum><text>The gravity of
the violation.</text>
</subclause><subclause id="H75CED7F2513D44F0AA8A9AA08A309890"><enum>(III)</enum><text>The history of
previous violations.</text>
</subclause><subclause id="H926EF70184BC4406B7473947133170CF"><enum>(IV)</enum><text>Such other
matters as justice may require.</text>
</subclause></clause><clause id="H43A1B173970445A3AD73A49F0FD68920"><enum>(v)</enum><header>Hearing</header><text>The
person against whom any penalty is assessed under paragraph (1)(B) shall be
afforded an agency hearing if such person submits 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="H43BFE9DA160F4846AE76A62F1EFCDC0E"><enum>(vi)</enum><header>Collection</header>
<subclause id="HD57FBBB2BD3D4DA5AC928A29F5E39181"><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="HF809BE9272B14B8493BCDC4E1B6CDF45"><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="HE816B34D9CA54F758900F9AA2583F95B"><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="H11B1AA8E4AAE493EBB217B65C4F22072"><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></section><section id="H2536AD6E37C840B19BEA866BE9A3BEE7"><enum>106.</enum><header>Compulsive
gaming, responsible gaming, and self-exclusion program requirements</header>
<subsection id="HEB406E5C308A4AEAB427FCF7742880FD"><enum>(a)</enum><header>Regulations
required</header><text display-inline="yes-display-inline">Each qualified
regulatory authority shall, before issuing any licenses under this title,
establish requirements for the development of a gambling addiction, responsible
gaming, and self exclusion program that each licensee of that qualified
regulatory authority shall implement as a condition of licensure. Such
requirements 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>
</subsection><subsection id="HE402CD11DF004BB7B307DFE2A2ED6E16"><enum>(b)</enum><header>Minimum
requirements</header><text>At a minimum, each qualified regulatory authority
shall require that licensees—</text>
<paragraph id="HDB8CC8F04F3A4A9897C41E4E1F55B517"><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="H8CAA4C604D534A309F60EE05C0FA7217"><enum>(2)</enum><text>provide
informational materials about responsible gaming to any player that requests
such materials;</text>
</paragraph><paragraph id="H4171403D52A14C31AC5B8212022D4183"><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 their deposit, time and bet amounts, as well as
self-limit 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 regulatory authority may consider appropriate;</text>
</paragraph><paragraph id="H67BBBFC8B95242E5B73DCB814BAFF520"><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;</text>
</paragraph><paragraph id="HF17778B0A6AC47ECB523A23F87A9E96C"><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
poker facility of the licensee are offered; and</text>
</paragraph><paragraph id="H381B1771D89A49C49669E22CAB57F0DA"><enum>(6)</enum><text display-inline="yes-display-inline">ensure that the qualified regulatory
authority adopt any practices that the Secretary recommends to protect
consumers, taking into account the National Council on Problem Gambling
Internet Responsible Gambling Standards.</text>
</paragraph></subsection><subsection id="HDD22072803764A9282798E2AD3A9753D"><enum>(c)</enum><header>List of persons
self-Excluded</header>
<paragraph id="H7032BE7C5F0943F180B0535A1562C5A9"><enum>(1)</enum><header>Establishment</header>
<subparagraph id="HAF3F3ACBADBF402385B104481A6E8375"><enum>(A)</enum><header>Lists maintained
by qualified regulatory authorities</header><text display-inline="yes-display-inline">Each qualified regulatory authority shall
establish and maintain a list of persons self-excluded from playing Internet
poker through Internet poker facilities licensed by the qualified regulatory
authority. Each week, each qualified regulatory authority shall submit to the
Secretary a current copy of the list.</text>
</subparagraph><subparagraph id="H7D68A6E01D94442D8A3C9BE73CF250D9"><enum>(B)</enum><header>Master list
maintained by Secretary</header><text display-inline="yes-display-inline">The
Secretary shall establish and maintain a master list of all persons
self-excluded from playing Internet poker through Internet poker facilities
licensed under this title. Such list shall consist of all persons submitted
under subparagraph (A). The Secretary shall make the master list available to
all qualified regulatory authorities and licensees.</text>
</subparagraph><subparagraph id="H514256D9C4B142C582A3F9330E462E37"><enum>(C)</enum><header>Placement
request</header><text>Any person may request placement on the list of
self-excluded persons by—</text>
<clause id="HA403843A0B10437F87F5D7DE37F4AA6C"><enum>(i)</enum><text>acknowledging in a
manner to be established by each qualified regulatory authority 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="H70BD67BFB75948EE839B3C0EFEFB782C"><enum>(ii)</enum><text>agreeing that,
during any period of voluntary exclusion, the person may not collect any
winnings or recover any losses resulting from any gaming activity at any
Internet poker facility of a licensee.</text>
</clause></subparagraph></paragraph><paragraph id="HD42DCCF179E644A4862DB6F568E8C874"><enum>(2)</enum><header>Limitation on
liability</header>
<subparagraph id="HB458E144232A49DD88D7835997915CAB"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), the United
States, the Secretary, a qualified regulatory authority, the State, or
federally recognized Indian tribe in which that qualified regulatory authority
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="H0FC6A5B9F9AC41979A91FFCD9EB049B1"><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="H8C10468AD45C479E82AA32D1AF555B05"><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="HB3E8E67F08B848EAA9953F9AB80CA2CA"><enum>(iii)</enum><text>disclosure of
information about individuals placed on the list of self-excluded
persons.</text>
</clause></subparagraph><subparagraph id="HDC845C6501414C06B21B40C02115DCE9"><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 federally recognized
Indian tribe of the qualified regulatory authority that issued the
license.</text>
</subparagraph><subparagraph id="HB90365E46DDF4F14B3D74FA1FC19BDFA"><enum>(C)</enum><header>Rule of
construction</header><text>Nothing in this paragraph shall be construed to
prevent the Secretary or a qualified regulatory authority 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="HBA10D748129F4A269F37DC86AE22BFDD"><enum>(3)</enum><header>Disclosure
provisions</header>
<subparagraph id="H67C405DD5E8E40FAB38A6BF811E1514F"><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="HB2E5A4630C9E4004AE9248624BB07E82"><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="HC364588751594BE8BD4F1CA1845718FF"><enum>(d)</enum><header>Gaming by
prohibited persons</header>
<paragraph id="H50A7EA59167340DB98B92502A63CC0A1"><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 regulatory authority, 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 any prohibited gaming activity.</text>
</paragraph><paragraph id="H124C0DDB0C2E4757ACAA192C3A9A1410"><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 after the applicable
prohibition has become effective shall be subject to forfeiture by order of the
Secretary or a qualified regulatory authority, following notice to the
prohibited person and opportunity to be heard.</text>
</paragraph><paragraph id="HA083BB3B55124C0E915A81BBA72B47DA"><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 regulatory authority, as provided by the applicable
State or tribal law.</text>
</paragraph></subsection><subsection id="HBC99E5C4BE214E61BF73DD6BF283ED7B"><enum>(e)</enum><header>Requirements
with respect to Child Support Delinquents</header>
<paragraph id="H1C951FEB475E4052AA44BF87B6AA210F"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">When it is made known
to the Secretary or a qualified regulatory authority by a Federal or State
court or a competent qualified regulatory authority involved with the
administration or enforcement of a court-ordered child support payment that a
particular individual is delinquent with respect to court-ordered child support
payments, the Secretary shall include that individual on the list established
under subsection (c).</text>
</paragraph><paragraph id="H6989D53E560340E59725240F38F720B6"><enum>(2)</enum><header>Removal from
list</header><text display-inline="yes-display-inline">Individuals placed on
the list pursuant to paragraph (1) shall be removed from such list if the court
or agency that made such individual's delinquency known to the Secretary
notifies the Secretary that such individual is no longer delinquent.</text>
</paragraph></subsection><subsection id="H2A68F51D3BFE4FE8930FA4ADF025283C"><enum>(f)</enum><header>Authority To
address gambling addiction in SAMHSA Authorities</header><text display-inline="yes-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="H9FF82A1DCAF84780BE11D80680CF785D"><enum>(1)</enum><text>by striking
<quote>and</quote> at the end of paragraph (17);</text>
</paragraph><paragraph id="H1EE6E33FB9314745AF51299BF1E51CE7"><enum>(2)</enum><text>by striking the
period at the end of paragraph (18) and inserting <quote>; and</quote>;
and</text>
</paragraph><paragraph id="H60A7D425726041C297BEC59D1038CCDD"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HF97D0253AB214414A5B23442C76D2F14" style="OLC">
<paragraph id="H1B2C291A40954B38AFAD61AA7003F908"><enum>(19)</enum><text display-inline="yes-display-inline">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></subsection><subsection id="HFCA8E23F68AA4CB6BD4A859FBB3C792C"><enum>(g)</enum><header>Compilation of
datasets on player behavior</header><text display-inline="yes-display-inline">The Secretary shall compile and make
available to the public, on the Web site of the Secretary, datasets 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 is removed from the data. The data shall retain 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>
</subsection><subsection id="H73E706C8BD2D497FAAA9B8D016A5BFCF"><enum>(h)</enum><header>Administrative
provisions</header>
<paragraph id="HFDA1DAB4F42F4B1F919D5B43518799CA"><enum>(1)</enum><header>Rule of
construction</header><text>No provision of this section shall be construed as
creating a legal duty in the Secretary, a qualified regulatory authority, 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="HDC1C2889A6CA4293A7AF62AB1FD094B8"><enum>(2)</enum><header>No cause of
action</header><text>The Secretary, a qualified regulatory authority, 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></subsection></section><section id="HC093F545280247C0B885F211FFB363FB"><enum>107.</enum><header>Prohibitions
and restrictions</header>
<subsection commented="no" id="H896D653BD0994D0AB169154F85D88A22"><enum>(a)</enum><header>Prohibition on
bets or wagers on games other than Internet poker</header><text display-inline="yes-display-inline">No provision of this title shall be
construed to authorize any licensee to accept a bet or wager on any game,
event, or activity that is not Internet poker.</text>
</subsection><subsection commented="no" id="HDCADA6D3E3A3420DA141BA04F3E58C10"><enum>(b)</enum><header>Prohibition on
the use of credit cards for Internet poker</header><text display-inline="yes-display-inline">No licensee, no person operating on behalf
of a licensee, and no person accepting payment for or settlement of a bet or
wager who intends to transmit such payment to a person licensee, may accept a
bet or wager or payment for or settlement of a bet or wager that is transmitted
or otherwise facilitated with a credit card (as defined in section 5362(11) of
title 31, United States Code).</text>
</subsection><subsection id="HEBF4CA9DBCDE4BAD9817CE6E3F67E606"><enum>(c)</enum><header>Public Internet
poker parlors prohibited</header>
<paragraph id="H959860B64FFE41F1A560585946B2D359"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">It shall be
considered a violation of this title to operate an unlicensed 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 poker facilities.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H38D5FD9BA9B844CFB31269989FFD63BC"><enum>(2)</enum><header display-inline="yes-display-inline">Criminal penalties</header><text display-inline="yes-display-inline">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>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H81D201AE52EF4FED8ADC8818B5BE584B"><enum>(3)</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 poker facilities.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF10AB5C35AFB4436A917A05617315B29"><enum>(4)</enum><header>Relation to
State, local, and tribal law</header><text display-inline="yes-display-inline">Places of public accommodation, clubs, or
similar establishments described in paragraph (1) shall be subject to all
otherwise applicable State, local, and tribal laws.</text>
</paragraph></subsection></section><section id="HEF6AC07EDF8E40B29099D93B544C4A8D"><enum>108.</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="HE472BBC036AD4927A238BE537E2C3655"><enum>109.</enum><header>Relation 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">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, shall not apply to any bet or wager occurring pursuant to a
license issued under this title, subject to section 110.</text>
</section><section id="H8970AAEA9DCB4A32AEE7D45113265EA6"><enum>110.</enum><header>Cheating and
other fraud</header>
<subsection id="H43E2C4751C174970B0E06B2834E6D9A4"><enum>(a)</enum><header>Cheating and
cheating devices prohibited</header>
<paragraph id="H06A63F2C34F642FE835BB0D93384E9BF"><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="HDDC42A030F2948519E9BF6516E97DD49"><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="H8922AB9566D14782A5D573D8328F89B9"><enum>(3)</enum><header>Permissible
uses</header><text>It shall not be a violation of this subsection for a
licensee, its agents, a qualified regulatory authority, or its agent to use or
possess a device described in the preceding sentence if—</text>
<subparagraph id="H146A6847D0D148609AE2B0AB81EF8142"><enum>(A)</enum><text>such use or
possession is solely for purposes of testing an Internet poker facility;</text>
</subparagraph><subparagraph id="HDF94CF8A0C3540919E9E762B118F1302"><enum>(B)</enum><text>such device is not
used in live play involving actual bets or wagers; and</text>
</subparagraph><subparagraph id="H90CCE9421408450C91D33834C23E2095"><enum>(C)</enum><text>such device is
registered with the Secretary and the qualified regulatory authority that
issued the applicable license.</text>
</subparagraph></paragraph><paragraph id="H6DA8C430EF0F44BBBB8B7C0E255AF086"><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="HA13DABD42D6B4B0C9F63E50DF25E1631"><enum>(b)</enum><header>Additional
offense</header>
<paragraph id="H6C509C5B838C4F96BCBB91C114E79C54"><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="H6811A57598BE4DD58D2A47D2E2D01C97"><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="H1814FF7071354B6DAC5BDAAA118ED6BB"><enum>(3)</enum><header>Permissible
uses</header><text>It shall not be a violation of this subsection for a
licensee, its agents, a qualified regulatory authority, or its agent to use or
posses a device described in paragraph (1) or (2) if—</text>
<subparagraph id="H3C73482078D14F059B182B8B4D192AE0"><enum>(A)</enum><text>such use or
possession is solely for purposes of testing an Internet poker facility;</text>
</subparagraph><subparagraph id="HD6A4E65624FD408EA40E01DD04E12BDA"><enum>(B)</enum><text>such device is not
used in live play involving actual bets or wagers; and</text>
</subparagraph><subparagraph id="H01162C9E3A6E4F038D4BADE49DF9D453"><enum>(C)</enum><text>such device is
registered with the qualified regulatory authority that issued the applicable
license.</text>
</subparagraph></paragraph><paragraph id="HC125F977D0A9406C91DBF8EBD2CD1AFD"><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="HF6B8E421FBAB49C7A3FB3D0D619A23BC"><enum>(c)</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="HF37DA0323F6845459596A7B2F474FF4F"><enum>(d)</enum><header>Criminal
penalty</header><text>Whoever violates subsection (a) or (b) shall be fined
under title 18, United States Code, or imprisoned for not more than 3 years, or
both.</text>
</subsection><subsection id="H7B2986FBEC39403EA0F06C730961FAAA"><enum>(e)</enum><header>Reports</header>
<paragraph id="H57A51CBF3C994BD59EB35A0EB6562D5D"><enum>(1)</enum><header>Recommended
minimum standards</header><text>Not later than 180 days after the date of
enactment of this Act, the Secretary shall submit to Congress a report
containing the recommendations of the Secretary on what minimum standards
qualifying bodies should adopt to carry out the requirements of subsection
(a).</text>
</paragraph><paragraph id="HC92E2C96A5124159A4B22C9933E0C426"><enum>(2)</enum><header>Identification
of threats to operation of Internet poker facilities</header><text>Not later
than 1 year after the date that licenses are first issued under section 118(a),
the Director of the National Institute of Standards and Technology shall submit
to Congress a report that identifies threats to the integrity of Internet poker
facilities operated by licensees, including 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>
</paragraph></subsection></section><section id="H2DFA875CEC1F47F5B8B6CA6EF20219B7"><enum>111.</enum><header>Construction
and relation to other law</header>
<subsection commented="no" id="HD9BE049DD93341248002084069D05B05"><enum>(a)</enum><header>No impact on
existing lawful games</header>
<paragraph commented="no" id="HF4ABE365A020498F9097583514B89498"><enum>(1)</enum><header>In
general</header><text>If bets or wagers on certain games of skill are not
regarded as gambling under all provisions of Federal, State, or tribal law in
effect as of the date of enactment of this Act—</text>
<subparagraph commented="no" id="H8FC7FF41DD58420CAB1B727F935547C1"><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 commented="no" id="H13891D31095E478792152EAD90BD46E9"><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 commented="no" id="H02336E60003A4EFCAAF49279E8F7A1B9"><enum>(2)</enum><header>Reliance</header><text>Nothing
in this title may be relied on as support for the legality or permissibility of
games described in paragraph (1) without compliance with the licensing and
other requirements of this title.</text>
</paragraph></subsection><subsection commented="no" id="H209B4A952EFE4356859322355C1FF833"><enum>(b)</enum><header>No effect on
existing law</header><text display-inline="yes-display-inline">Nothing in this
section shall be construed to repeal, to amend, or to affect the interpretation
of any provision of State, or tribal law that was in effect before the date of
enactment of this Act that—</text>
<paragraph commented="no" id="HE6FCD53144F1440387874CBA50C4C5F7"><enum>(1)</enum><text>prohibits,
restricts, or otherwise addresses bets or wagers; or</text>
</paragraph><paragraph commented="no" id="HB983A65ADC914BE2933B2CE924463B3C"><enum>(2)</enum><text>prohibits fraud,
unfair or deceptive acts or practices, or other criminal activity.</text>
</paragraph></subsection><subsection id="HE12A1E7DC63743C18653C0A6727ECA27"><enum>(c)</enum><header>Preemption of
State and tribal laws</header>
<paragraph id="HEF209DB429234F6092590E74CE0B68F1"><enum>(1)</enum><header>In
general</header><text>Except as otherwise expressly provided in this title and
excluding any prohibitions described in section 104(a)(3), the provisions of
this title shall supersede any provisions of the law of any State or federally
recognized Indian tribe expressly relating to the permitting, prohibiting,
licensing, or regulating of Internet poker facilities, including Internet poker
facilities, and the law of any State or federally recognized Indian tribe
expressly relating to the permitting, prohibiting, licensing, or regulation of
gambling, except to the extent such State or tribal laws are not inconsistent
with this title.</text>
</paragraph><paragraph id="HE9E6DB070D754C5E9086C62856A56010"><enum>(2)</enum><header>Lotteries</header><text>No
provision of this title shall be construed to have any effect on the rights,
privileges, or obligations of a State or tribal lottery as may be provided
under other applicable Federal, State, or tribal law.</text>
</paragraph><paragraph id="H3EFEDD6B4C9D468CA29E6A3D599B96D9"><enum>(3)</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 or
preempt the applicability of State or tribal trespass, contract, or tort
law.</text>
</paragraph></subsection><subsection id="HED7B1C49F3D74AF18BFA83EC6B386490"><enum>(d)</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 commented="no" id="HC61959E2AE924C3F8289B205557BF180"><enum>(e)</enum><header>No impact on
Indian Gaming Regulatory Act</header>
<paragraph commented="no" id="H36DD5F279B43456F9DE4F67DB67FB47D"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">No provision of this
title or decision or action taken by a federally recognized Indian tribe or
State pursuant to this title shall have any effect on non-Internet gaming
activities within the scope of the Indian Gaming Regulatory Act (25 U.S.C.
2710) or any successor provisions or on any tribal-State compacts or
authorities pursuant thereto.</text>
</paragraph><paragraph commented="no" id="H934315D7D95341159AF5AAABF040EE0E"><enum>(2)</enum><header>Tribal status or
category not affected</header><text>Tribal operation of Internet poker
facilities under this title shall not be considered class II or class III
gaming under such section, and a federally recognized 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 commented="no" id="H69AA4577D63A4FFDB6EBAC6962FEBC92"><enum>(3)</enum><header>New negotiations
not required</header>
<subparagraph commented="no" id="HC2CFC8DA8FF846D3AA733F4010916F38"><enum>(A)</enum><header>federally
recognized Indian tribes</header><text>The fact that a federally recognized
Indian tribe is operating under a license issued pursuant to this title or that
a tribal regulatory body is acting as a qualified body pursuant to this title
shall not require a federally recognized 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 commented="no" id="H15F9761D8DE64400A7E7660A98DF9726"><enum>(B)</enum><header>States</header><text>The
fact that a State has prohibited or limited Internet bets or wagers under
section 104(a)(3) or that a State regulatory body is acting as a qualified body
pursuant to 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></section><section id="H5BA83F0818524ECA927B1B756E1A8D07"><enum>112.</enum><header>Regulations</header><text display-inline="no-display-inline">Not later than 180 days after the date of
enactment of this Act, the Secretary shall prescribe such regulations as the
Secretary considers necessary and where expressly required or authorized to
carry out this title.</text>
</section><section id="H5ADC780119044C7789E29D61E6A12CCC"><enum>113.</enum><header>Annual
reports</header>
<subsection id="HFC7A1564ABEE4384A0349AB6ACEB7725"><enum>(a)</enum><header>Licensing and
regulation of Internet poker facilities</header><text>Not later than 1 year
after the date that licenses first issue under this title and annually
thereafter, the Secretary shall transmit to Congress a report on the licensing
and regulation of Internet poker facilities under this title, including—</text>
<paragraph id="H03927A0F9AB144F28BBB1334B928FC5D"><enum>(1)</enum><text>the amount of fees
collected under section 104(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 poker facilities during the period covered by the
report;</text>
</paragraph><paragraph id="H7E4D75E16A6442C793103C6E53555EAD"><enum>(2)</enum><text>a
list of qualified regulatory authorities, the number of licensees reviewed by
the qualified regulatory authorities under this title, and the outcomes of such
reviews;</text>
</paragraph><paragraph id="H2C93510875824980AB8877E8A17DC889"><enum>(3)</enum><text>a
description of the efforts the Secretary has undertaken to ensure that
qualified regulatory authorities are properly issuing licenses and regulating
licensees under this title;</text>
</paragraph><paragraph id="HEF9D9C977EC647D1851ECC4E9DC057F4"><enum>(4)</enum><text>a
detailed description of each type of game offered by licensees and how each
type is consistent with the definition of poker under section 102; and</text>
</paragraph><paragraph id="HC9DE1B92BD45489CAA5B9A87E1734BA9"><enum>(5)</enum><text>any other
information the Secretary determines may be useful to Congress.</text>
</paragraph></subsection><subsection id="HC6EDA534907C46DCBC28595818939ADD"><enum>(b)</enum><header>Consumer
protection</header><text>Not later than 1 year after the date that licenses
first issue under this title and annually thereafter, the Secretary shall
transmit to the Committee on Energy and Commerce of the House of
Representatives and the Committee on Commerce, Science, and Transportation of
the Senate a report on commercial and regulatory practices carried out to
protect consumers with respect to Internet poker, including the practices
carried out pursuant to the requirements of section 106 and the regulations
prescribed pursuant to such section. Such report shall include—</text>
<paragraph id="H511FF630161D491099CED682173D1750"><enum>(1)</enum><text>a
detailed description of the efforts of each qualified regulatory authority to
protect consumers from unfair or deceptive acts or practices, including
deceptive advertising and marketing to minors;</text>
</paragraph><paragraph id="HEDE87506DC364A92831F8482E84F078C"><enum>(2)</enum><text>a
description of the practices that the Secretary recommends a qualified
regulatory authority to adopt to protect consumers;</text>
</paragraph><paragraph id="H1F57E65769BC47348BF06192D9191395"><enum>(3)</enum><text>such
recommendations as the Secretary may have for legislative action as the
Secretary considers necessary to protect consumers with respect to Internet
poker; and</text>
</paragraph><paragraph id="HADDA4AA5880D4FCDB4DFE94E3FDD32DE"><enum>(4)</enum><text>such other
information as the Secretary considers appropriate.</text>
</paragraph></subsection></section><section id="H62F673361AB74A38B460AB2CC5203373"><enum>114.</enum><header>Effective
date</header>
<subsection id="H6AA2CC438DE6456FB2C9282B247558BE"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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 enactment of this Act.</text>
</subsection><subsection id="H646CE001091641E4890CD555A9A9DB63"><enum>(b)</enum><header>Regulations
required before issuing licenses</header><text>Notwithstanding any other
provision of this title, a qualified regulatory authority may not issue a
license under this title before the later of—</text>
<paragraph id="HFF8A236C58034EFA8FC08C91CB5800A1"><enum>(1)</enum><text>the date on which
the Secretary prescribes final regulations under section 113;</text>
</paragraph><paragraph commented="no" id="HDF02D8C3F20E4D6E9CE07E8DF46A15BE"><enum>(2)</enum><text>the date on which
the Secretary of the Treasury prescribes final regulations pursuant to
subsections (a) and (d) of section 203; and</text>
</paragraph><paragraph commented="no" id="HBACE93357A7C409AB79254D4D192255B"><enum>(3)</enum><text>the date on which
the Director of the Financial Crimes Enforcement Network submits to the
Secretary of the Treasury a list of unlicensed Internet gambling enterprises
pursuant to <external-xref legal-doc="usc" parsable-cite="usc/31/5369">section 5369(a)(1)(B)</external-xref> of title 31, United States Code, as added by
section 202(a).</text>
</paragraph></subsection></section><enum>II</enum><header>Strengthening of
Unlawful Internet Gambling Enforcement Act of 2006</header>
<section id="HAAC9E87256DE4AE2A77FF3B2314272B4"><enum>201.</enum><header>Financial
transaction providers</header>
<subsection id="H7174CBFE3D7A4A5E85EE7544B6DD66E1"><enum>(a)</enum><header>In
general</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="H7003147C62D74C96B54E783B59E712CA" style="USC">
<section id="HE9EC477B4EA44EB5BBDAC2ABDA4F535D"><enum>5368.</enum><header>Liability of
financial transaction providers</header>
<subsection id="H4A883DFD976046AEAEC64798C06566A5"><enum>(a)</enum><header>Liability for
certain financial activities and transactions</header><text>A financial
transaction provider shall not be held liable for engaging in a financial
activity or transaction, including a payments processing activity, in
connection with a bet or wager permitted by the
<short-title>Internet Poker Freedom Act of
2013</short-title> or the Interstate Horseracing Act of 1978 (15 U.S.C. 3001 et
seq.) unless the financial transaction provider has actual knowledge that the
financial activity or transaction was conducted in violation of either such Act
or any other applicable provision of Federal or State law.</text>
</subsection><subsection id="H18DBDADBE283495BA87D4C67736B740C"><enum>(b)</enum><header>No liability for
blocking or refusing To honor certain transactions</header>
<paragraph id="HD6975D74B59F48CE911A81E8EB50C599"><enum>(1)</enum><header>In
general</header><text>A financial transaction provider that takes an action
described in paragraph (2) with respect to a transaction shall not be liable to
any party for that action if the financial transaction provider takes the
action because the originator of the transaction or a party to the transaction
is—</text>
<subparagraph id="H27552429A3494EA4B1582E68E620F174"><enum>(A)</enum><text>a person or entity
that is included in the list of unlicensed Internet gambling enterprises
required by section 5369(a);</text>
</subparagraph><subparagraph id="H002CEED529EC4324A03186DF8EEEC36C"><enum>(B)</enum><text>a person or entity
that the financial transaction provider reasonably believes is included in that
list;</text>
</subparagraph><subparagraph id="H2B11B6E32CFD4BD9BDB1E00413E6B44A"><enum>(C)</enum><text>a person or entity
that is included in a list of unlicensed Internet gambling enterprises made
available to the financial transaction provider by the Secretary under section
5369(a)(3);</text>
</subparagraph><subparagraph id="H3608B37E55AF4B20A95C28888B5777C6"><enum>(D)</enum><text>a person or entity
that the financial transaction provider reasonably believes is included in a
list described in subparagraph (C);</text>
</subparagraph><subparagraph id="H1AB17965DF9F4329985AC3097D4E0DA0"><enum>(E)</enum><text>a person or entity
that is demonstrated to be an unlicensed Internet gambling enterprise based on
information, other than a list described in subparagraph (C), that is made
available to the financial transaction provider; or</text>
</subparagraph><subparagraph id="H9D56AD54559A49A9B48994453BD8670B"><enum>(F)</enum><text>a person or entity
that the financial transaction provider reasonably believes is demonstrated to
be an unlicensed Internet gambling enterprise based on information described in
subparagraph (E).</text>
</subparagraph></paragraph><paragraph id="H58FC3715D5324D818A875D0DE5693012"><enum>(2)</enum><header>Actions
described</header><text>A financial transaction provider takes an action
described in this paragraph if the financial transaction provider—</text>
<subparagraph id="H7F2807ABF9D940FCB32496F722E5EA7E"><enum>(A)</enum><text>identifies and
blocks a transaction;</text>
</subparagraph><subparagraph id="HDF1053BE07914E48B90EB46E00845767"><enum>(B)</enum><text>prevents or
prohibits the acceptance of its products or service in connection with a
transaction or otherwise refuses to honor a transaction; or</text>
</subparagraph><subparagraph id="HEE5334B646964BE8BAFE2D62BCB22CC4"><enum>(C)</enum><text>closes an account
or ends a financial
relationship.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H5C0C9CEE337D480D9A84CED7726E0C84"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of sections for <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="H494B9B04A685449DBEF6DAF60ED053CA" style="OLC">
<toc>
<toc-entry idref="HE9EC477B4EA44EB5BBDAC2ABDA4F535D" level="section">5368. Liability of financial transaction
providers.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HB16D849E193C4C9B9FDC087C0291A8B1"><enum>(c)</enum><header>Technical
correction</header><text><external-xref legal-doc="usc" parsable-cite="usc/31/5362">Section 5362(11)(B)(i)</external-xref> of title 31, United States
Code, is amended by striking <quote>section 903(6)(E)</quote> and inserting
<quote>section 903(7)(E)</quote>.</text>
</subsection></section><section id="H32621CADD9D34512840DCB3FD4D3D396"><enum>202.</enum><header>List of
unlicensed Internet gambling enterprises</header>
<subsection id="H731C43312B5C432EAB467AEE9E092744"><enum>(a)</enum><header>In
general</header><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, as amended by section 201(a), is
further amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H7E0C196C2878402DA0F2BF44CFE1D854" style="USC">
<section id="H15A4CD42AB7542C886D2F3B731A4F5D1"><enum>5369.</enum><header>List of
unlicensed Internet gambling enterprises</header>
<subsection id="H26246CAF7EEA44349700E69D7730BEC0"><enum>(a)</enum><header>List of
unlicensed Internet gambling enterprises</header>
<paragraph id="HB7D319CBDF014CC4B09D5F085E2ACEEC"><enum>(1)</enum><header>In
general</header><text>The Director shall—</text>
<subparagraph id="H7CBEA47DA67341CAB33E794756F58840"><enum>(A)</enum><text>identify
unlicensed Internet gambling enterprises in accordance with the procedures
described in subsection (b);</text>
</subparagraph><subparagraph id="H5F09496C3383442D90319B1AD76783CA"><enum>(B)</enum><text>not later than 120
days after the date of enactment of the <short-title>Internet Poker Freedom Act of 2013</short-title>, submit
to the Secretary a list of unlicensed Internet gambling enterprises that
includes the information described in paragraph (2); and</text>
</subparagraph><subparagraph id="H85AC00F030DD483C863DD52DA8FAA93B"><enum>(C)</enum><text>not less
frequently than every 60 days thereafter, submit to the Secretary an updated
list that reflects the results of subsequent investigations carried out under
this section.</text>
</subparagraph></paragraph><paragraph id="H8F7BC1F3826B46218B43B1981C1BFFAA"><enum>(2)</enum><header>Information
required</header><text>The information described in this paragraph is, with
respect to each unlicensed Internet gambling enterprise included on the list
required by paragraph (1), the following:</text>
<subparagraph id="H5470AD4A876A4D4EBF37B9A152127CAB"><enum>(A)</enum><text>All known Internet
Web site addresses of the enterprise.</text>
</subparagraph><subparagraph id="HA6C51CEF99BA4979A3E416007115289C"><enum>(B)</enum><text>The name of any
person who controls, finances, manages, supervises, directs, or owns all or
part of the enterprise (as such terms are used in section 1955 of title
18).</text>
</subparagraph><subparagraph id="HAD3FD42BF9D34658ABC102B6F4372AF6"><enum>(C)</enum><text>To the extent
known, information identifying the financial agents and account numbers of the
enterprise and the persons described in subparagraph (B).</text>
</subparagraph></paragraph><paragraph id="HCBD6EA3142734085923F8CA8ED3D64BB"><enum>(3)</enum><header>Distribution of
list</header><text>Not later than 10 days after receiving the list or an
updated version of the list required by paragraph (1) from the Director, the
Secretary shall—</text>
<subparagraph id="H5E03CC1CEB224A29BCA87C945D871CB8"><enum>(A)</enum><text>post the
information provided under subparagraphs (A) and (B) of paragraph (2) on the
Internet Web site of the Department of the Treasury; and</text>
</subparagraph><subparagraph id="H5D1394512C8748779DED77A81ADD3774"><enum>(B)</enum><text>provide to each
person that is required to comply with the regulations prescribed pursuant to
section 5364 a copy of the information included with the list required by
paragraph (1) in an electronic format compatible with the list of Specially
Designated Nationals and Blocked Persons maintained by the Office of Foreign
Assets Control.</text>
</subparagraph></paragraph></subsection><subsection id="H0A606BA08E0B4141B48F09D33E71F82B"><enum>(b)</enum><header>Procedures for
identifying unlicensed Internet gambling enterprises</header>
<paragraph id="H33B56DC2E418475F80458155CCA83DE7"><enum>(1)</enum><header>Investigations</header>
<subparagraph id="H92DB8A6C3FA640489ACF996AAE5B2AE7"><enum>(A)</enum><header>Initial
investigation</header><text>Not later than the date that is 60 days after the
date of enactment of the <short-title>Internet Poker
Freedom Act of 2013</short-title>, the Director shall complete an initial
investigation of entities that appear to be unlicensed Internet gambling
enterprises.</text>
</subparagraph><subparagraph id="H319C3B5FA92C4FEA91ED4B2DBF7C3A04"><enum>(B)</enum><header>Subsequent
investigations</header><text>After completing the initial investigation
required by subparagraph (A), the Director shall regularly investigate entities
that appear to be unlicensed Internet gambling enterprises.</text>
</subparagraph></paragraph><paragraph id="H225E0435322543B0A3FC594F3F2841B0"><enum>(2)</enum><header>Requests</header>
<subparagraph id="HD6CED68DE0DD4ED7A594DC2074E6F5EB"><enum>(A)</enum><header>In
general</header><text>Any Federal, State, tribal, or local law enforcement
official, any affected sports organization, any person directly harmed by
unlicensed Internet gambling, any financial transaction provider, and any
interactive computer service shall have the right, but not the obligation, to
make a written request to the Director for the addition of any person to the
list of unlicensed Internet gambling enterprises required by subsection
(a).</text>
</subparagraph><subparagraph id="H6819A841E172437AA0D85DC7EE8C3807"><enum>(B)</enum><header>Determinations;
notice to person that submitted a request</header><text>Not later than 30 days
after receiving a request under subparagraph (A), the Director shall—</text>
<clause id="H835C6320AA1F456581EE325DFF7CE39F"><enum>(i)</enum><text>determine if the
request contains information sufficient to constitute a prima facie case that
an entity is an unlicensed Internet gambling enterprise; and</text>
</clause><clause id="HFD8E6D900A6C47309CC309C33351AC13"><enum>(ii)</enum><text>notify the person
that submitted the request of the determination of the Director.</text>
</clause></subparagraph></paragraph><paragraph id="H0F287DA6283C44C0925802FC5E98F079"><enum>(3)</enum><header>Notice</header><text>Not
later than 30 days before including a person in the list of unlicensed Internet
gambling enterprises required by subsection (a), the Director shall provide
written notice to the person of the determination of the Director to include
the person in the list.</text>
</paragraph><paragraph id="H7C6693E122814AA68C883BDDBA80CA59"><enum>(4)</enum><header>Opportunity to
contest</header>
<subparagraph id="HD41122CA81F14914BC06ECAE113FD79B"><enum>(A)</enum><header>In
general</header><text>A person that receives notice under paragraph (3) that
the Director has determined to include the person in the list of unlicensed
Internet gambling enterprises required by subsection (a) may, not later than 30
days after receiving the notice, contest the determination—</text>
<clause id="H6363283B1DF0434ABE826AFB20DC24D2"><enum>(i)</enum><text>by
submitting a written appeal to the Director; and</text>
</clause><clause id="H8009BF454250421C998C738B65F5DE58"><enum>(ii)</enum><text>by agreeing in
the written appeal to submit to the jurisdiction of the United States.</text>
</clause></subparagraph><subparagraph id="H77352FFB76A547DAB88EC706571A4004"><enum>(B)</enum><header>Effect of not
contesting</header><text>If a person described in subparagraph (A) does not
contest the determination of the Director to include the person in the list of
unlicensed Internet gambling enterprises required by subsection (a) in
accordance with subparagraph (A), the Director shall include the person in the
list.</text>
</subparagraph></paragraph><paragraph id="HC65B5F60376A4549B293C3E3A796E594"><enum>(5)</enum><header>Opportunity for
hearing</header><text>The Director—</text>
<subparagraph id="H7BFDDA25F2AD401F9AC1CE1C51FD19D9"><enum>(A)</enum><text>may not include a
person that submits a written appeal pursuant to paragraph (4) in the list of
unlicensed Internet gambling enterprises required by subsection (a) until the
Director provides the person with an opportunity for a hearing; and</text>
</subparagraph><subparagraph id="HC3DD3E7E9B3544BB91BB1CD77DC8E9B0"><enum>(B)</enum><text>shall provide the
person the opportunity for a hearing not later than 30 days after receiving the
written appeal from the person.</text>
</subparagraph></paragraph><paragraph id="H3B1C79F8ADA2442CA189586F5A51656A"><enum>(6)</enum><header>Determinations
after hearing</header><text>Not later than 10 days after the date of a hearing
provided for a person under paragraph (5) (without regard to whether the person
appears at the hearing), the Director shall—</text>
<subparagraph id="HD4446AEFEEE34FB1BD59F463E30A10B4"><enum>(A)</enum><text>determine if the
person should be included in the list of unlicensed Internet gambling
enterprises required by subsection (a); and</text>
</subparagraph><subparagraph id="HF8A8ECE6B0354274B721336734201C35"><enum>(B)</enum><text>if the Director
determines that the person should be included in the list, add the person to
the list.</text>
</subparagraph></paragraph><paragraph id="H184FC51BA06E42988CF88427808489E8"><enum>(7)</enum><header>Injunctive
relief</header>
<subparagraph id="HE92835649142444397F9C705543C7EF0"><enum>(A)</enum><header>In
general</header><text>A person described in subparagraph (B) may petition for
injunctive relief in the United States District Court for the District of
Columbia, which shall have exclusive jurisdiction to hear cases arising under
this section.</text>
</subparagraph><subparagraph id="HCD2A886BD99A4CB2B430CAF3E6FFE296"><enum>(B)</enum><header>Person
described</header><text>A person described in this subparagraph is a person
that the Director determines to include in the list of unlicensed Internet
gambling enterprises required by subsection (a)—</text>
<clause id="H5C2C9E35D2B84ED0AD645C38E47400F7"><enum>(i)</enum><text>after the person
appears at a hearing described in paragraph (5); or</text>
</clause><clause id="HA05AD2A72C0F4E3BB43A87C2695C62A5"><enum>(ii)</enum><text>that did not
receive the notice required by paragraph (3).</text>
</clause></subparagraph><subparagraph id="H7B066BEB51C44ADB878C9110D06BCA5E"><enum>(C)</enum><header>Burden of
proof</header><text>The petitioner shall have the burden of establishing that
the person should not be included in the list of unlicensed Internet gambling
enterprises required by subsection (a).</text>
</subparagraph><subparagraph id="H6ABF167286D9485ABEB3B36B31B0E9AD"><enum>(D)</enum><header>Standing</header><text>Only
persons that the Director determines to include in the list of unlicensed
Internet gambling enterprises required by subsection (a) and owners or
operators of such enterprises shall have standing to contest the determination
of the Director.</text>
</subparagraph><subparagraph id="H4B3ED36E5D13439EB7994F4E42F1DCC0"><enum>(E)</enum><header>Available
relief</header><text>The court may direct the Director and the Secretary not to
add, or to remove, the petitioner from the list of unlicensed Internet gambling
enterprises.</text>
</subparagraph><subparagraph id="HD70C76DD3EB548F6B08BF2038966B806"><enum>(F)</enum><header>Unavailability
of other remedies</header><text>There shall be no judicial review of a
determination under this section other than pursuant to this paragraph.</text>
</subparagraph></paragraph></subsection><subsection id="H95BFA21671AB420E805B1A75C71F734D"><enum>(c)</enum><header>Effect of
list</header><text>A financial transaction provider shall be deemed to have
actual knowledge that a person or entity is an unlicensed Internet gambling
enterprise if—</text>
<paragraph id="HCA966CB81B724ACFBC6CC930AEC5AE53"><enum>(1)</enum><text>the person or
entity is included in the list of unlicensed Internet gambling enterprises
required by subsection (a); or</text>
</paragraph><paragraph id="HFDA79507A0334AAB81AA6886B5100A25"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HAA66D262A51A42AE8243BB7DC2CEB88C"><enum>(A)</enum><text>the person or entity is
included in a list of unlicensed Internet gambling enterprises made available
to the financial transaction provider by the Secretary under subsection (a)(3);
and</text>
</subparagraph><subparagraph id="H336337F262C24726818F3A170A566314" indent="up1"><enum>(B)</enum><text>information in addition to the list
described in subparagraph (A) is available to the financial transaction
provider that demonstrates that the person or entity is an unlicensed Internet
gambling enterprise.</text>
</subparagraph></paragraph></subsection><subsection id="H9EFF5C16D32A44B58A68ADE3C6A37BC6"><enum>(d)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H7803EF7BAEE6470B8571B17D6ECBE55D"><enum>(1)</enum><header display-inline="yes-display-inline">Director</header><text display-inline="yes-display-inline">The term <term>Director</term> means the
Director of the Financial Crimes Enforcement Network appointed under section
310(b).</text>
</paragraph><paragraph id="H019FCF074F3A441F967BA18C2C6A2525"><enum>(2)</enum><header>Sports
organization</header><text>The term <term>sports organization</term> means an
amateur sports organization or a professional sports organization (as those
terms are defined in <external-xref legal-doc="usc" parsable-cite="usc/28/3701">section 3701</external-xref> of title 28).</text>
</paragraph><paragraph id="H41AFEFD1167045D1ABC316637FA5A4B9"><enum>(3)</enum><header>Unlicensed
Internet gambling enterprise</header><text>The term <term>unlicensed Internet
gambling enterprise</term> means any person who, on or after the date of
enactment of the <short-title>Internet Poker Freedom Act
of 2013</short-title>—</text>
<subparagraph id="H2C10A59CE33743C99CFC30CF3E20B06D"><enum>(A)</enum><text>violates a
provision of section 5363; or</text>
</subparagraph><subparagraph id="HC647324570D74987BAB7676804BD9CE8"><enum>(B)</enum><text>knowingly assists
a person in conduct described in subparagraph
(A).</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H955AD6F2DFE447A384100CDDB52E3139"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of sections at the beginning of such chapter
53, as amended by section 201(b), is further amended by adding at the end the
following:</text>
<quoted-block id="H071A2605B1D94E35B3DC5E66D1D2EA4E" style="OLC">
<toc>
<toc-entry idref="H15A4CD42AB7542C886D2F3B731A4F5D1" level="section">5369. Unlicensed Internet gambling
enterprises.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H35F9F726B2F44EDAA658AE4EB3DC99FB"><enum>203.</enum><header>Regulations</header>
<subsection id="H4FC5E66C139F4E9FA2D3C6E5DC9E9D08"><enum>(a)</enum><header>Regulations</header><text display-inline="yes-display-inline">Not later than 180 days after the date of
enactment of this Act, the Secretary of the Treasury shall—</text>
<paragraph id="HB0E75EC27F414CEF9271C823D29BDBDB"><enum>(1)</enum><text>prescribe
regulations to carry out sections <external-xref legal-doc="usc" parsable-cite="usc/31/5368">5368</external-xref> and <external-xref legal-doc="usc" parsable-cite="usc/31/5369">5369</external-xref> of title 31, United States
Code, as added by sections 201(a) and 202(a), and publish such regulations in
final form in the Federal Register; and</text>
</paragraph><paragraph id="HBD21E4C785374DD5B316E3472D1EBE95"><enum>(2)</enum><text>prescribe such
regulations as the Secretary of the Treasury considers necessary to ensure
compliance with chapter 2 of title I of <external-xref legal-doc="public-law" parsable-cite="pl/91/508">Public Law 91–508</external-xref> (12 U.S.C. 1951 et
seq.) and subchapter II of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/53">chapter 53</external-xref> of title 31, United States Code (commonly
known, collectively, as the <quote><act-name>Bank Secrecy
Act</act-name></quote>), by licensees, significant vendors to such licensees,
and financial service providers to such licensees (as such terms are defined in
section 102).</text>
</paragraph></subsection><subsection id="HD746A0AF4F854B5CB83BE0EAFAA8547A"><enum>(b)</enum><header>Exclusion of
Board of Governors of the Federal Reserve System from requirement To prescribe
regulations concerning prevention of restricted
transactions</header><text>Subsection (a) of <external-xref legal-doc="usc" parsable-cite="usc/31/5364">section 5364</external-xref> of title 31, United
States Code, is amended by striking <quote>Before the end of the 270-day period
beginning on the date of enactment of this subchapter, the Secretary and the
Board of Governors of the Federal Reserve System, in consultation with the
Attorney General, shall prescribe regulations (which the Secretary and the
Board jointly determine to be appropriate)</quote> and inserting <quote>The
Secretary shall prescribe regulations</quote>.</text>
</subsection><subsection id="H8D7E78D0DE604B4587E65C522E867D12"><enum>(c)</enum><header>Temporary
suspension of certain regulations</header>
<paragraph id="HD12391FC82454B74A73630226D232D36"><enum>(1)</enum><header>In
general</header><text>Subject to paragraph (2), during the period beginning on
the date of enactment of this Act and ending on the date set forth in
subsection (d), part 233 of title 12, Code of Federal Regulations, and part 132
of title 31, Code of Federal Regulations, shall have no force or effect to the
extent that those regulations require or impose any obligation that is
inconsistent with the provisions of title I.</text>
</paragraph><paragraph id="HD857DBD856BD4A95AD3EEDA37C9BD5F1"><enum>(2)</enum><header>Previous
violation</header><text>Paragraph (1) shall not apply with respect to any
violation of a regulation described in such paragraph that occurred before the
date of enactment of this Act.</text>
</paragraph></subsection><subsection id="H313CD70E750C4077B83046F630A1CEA4"><enum>(d)</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><subsection id="H9D35FF23399F45BEA0F56FA2A05CB5E7"><enum>(e)</enum><header>Annual
report</header><text>Not later than 1 year after the date on which the
Secretary of the Treasury prescribes regulations under this section, and
annually thereafter, the Secretary shall submit to Congress a report on the
list required by <external-xref legal-doc="usc" parsable-cite="usc/31/5369">section 5369(a)</external-xref> of title 31, United States Code, as added by
section 202(a), including the following:</text>
<paragraph id="HCE7E16BC7AF347B2BF82F90DAA1B0998"><enum>(1)</enum><text>The size of the
list.</text>
</paragraph><paragraph id="HF22C27095A7343668EB5E9EE1A15A6EA"><enum>(2)</enum><text>The number of
persons and Web sites added to and removed from the list.</text>
</paragraph><paragraph id="H0B8D1C0A5C1949B999AA5C9F4D09AB05"><enum>(3)</enum><text>The number and
description of challenges to inclusion on the list and a description of how
such challenges were resolved.</text>
</paragraph></subsection></section><section id="H0B1845D20E53442B88AA5D1E4DD34B69"><enum>204.</enum><header>Conforming
amendments</header>
<subsection id="H585F8114483E4EF0B4CB5E6887F51B99"><enum>(a)</enum><header>Duties and
powers of the Director of the Financial Crimes Enforcement
Network</header><text display-inline="yes-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>
</subsection><subsection id="HA6FBCE56608042B88BBB39B36EB08104"><enum>(b)</enum><header>Exclusion of
licensed Internet poker facility operations from definition of unlawful
Internet gambling enterprise</header><text>Section 5362(10) of such title is
amended—</text>
<paragraph id="HC95150150B0C41DDB99933B4FCA9B4E6"><enum>(1)</enum><text>in subparagraph
(D), by striking clause (iii);</text>
</paragraph><paragraph id="H61CFCB81E23545EEB2FF69CE443ADB08"><enum>(2)</enum><text>by redesignating
subparagraph (E) as subparagraph (F); and</text>
</paragraph><paragraph id="H07D6C8EFAE6E45129B044B3DEA40528A"><enum>(3)</enum><text>by inserting after
subparagraph (D) the following:</text>
<quoted-block display-inline="no-display-inline" id="H9D328EA67F7945AC8F61EEE5C8E996F7" style="OLC">
<subparagraph id="H0D31B3411EE0466EBDBCB75BB2AFB30D"><enum>(E)</enum><header>Licensed
Internet poker facilities</header><text>The term <term>unlawful Internet
gambling</term> does not include an activity carried out by an Internet poker
facility, as such term is defined in section 102 of the
<short-title>Internet Poker Freedom Act of
2013</short-title>, operated by a person under a license provided under title I
of such Act in accordance with the provisions of such
title.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section>