[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3215 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 3215

  To amend title 18, United States Code, to expand and modernize the 
    prohibition against interstate gambling, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 1, 2001

   Mr. Goodlatte (for himself, Mr. Boucher, Mr. Smith of Texas, Ms. 
Jackson-Lee of Texas, Mr. Oxley, Mr. LaFalce, Mr. Leach, Mr. Wolf, Mr. 
  Roemer, Mr. Gibbons, Mr. Bachus, Mrs. Jo Ann Davis of Virginia, Mr. 
 Duncan, Mr. Fletcher, Mr. Forbes, Mr. Goode, Mr. Graham, Mr. Lewis of 
Kentucky, Mr. Pitts, Mr. Rogers of Michigan, Mr. Shadegg, Mr. Sweeney, 
 Mr. Tauzin, Mr. Vitter, Mr. Wamp, Mr. Peterson of Pennsylvania, Mrs. 
  Kelly, and Mr. Hastings of Florida) introduced the following bill; 
          which was referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
  To amend title 18, United States Code, to expand and modernize the 
    prohibition against interstate gambling, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Combatting Illegal Gambling Reform 
and Modernization Act''.

SEC. 2. DEFINITIONS.

    Section 1081 of title 18, United States Code, is amended--
            (1) by designating the five undesignated paragraphs that 
        begin with ``The term'' as paragraphs (1) through (5), 
        respectively;
            (2) in paragraph (5), as so designated--
                    (A) by striking ``wire communication'' and 
                inserting ``communication'';
                    (B) by inserting ``satellite, microwave,'' after 
                ``cable,''; and
                    (C) by inserting ``(whether fixed or mobile)'' 
                after ``connection''; and
            (3) by adding at the end the following:
            ``(6) The term `bets or wagers'--
                    ``(A) means the staking or risking by any person of 
                something of value upon the outcome of a contest of 
                others, a sporting event, or a game predominantly 
                subject to chance, upon an agreement or understanding 
                that the person or another person will receive 
                something of greater value than the amount staked or 
                risked in the event of a certain outcome;
                    ``(B) includes the purchase of a chance or 
                opportunity to win a lottery or other prize (which 
                opportunity to win is predominantly subject to chance); 
                and
                    ``(C) does not include--
                            ``(i) a bona fide business transaction 
                        governed by the securities laws (as that term 
                        is defined in section 3(a)(47) of the 
                        Securities Exchange Act of 1934 (15 U.S.C. 
                        78c(a)(47))) for the purchase or sale at a 
                        future date of securities (as that term is 
                        defined in section 3(a)(10) of the Securities 
                        Exchange Act of 1934 (15 U.S.C. 78c(a)(10)));
                            ``(ii) a transaction on or subject to the 
                        rules of a contract market designated pursuant 
                        to section 5 of the Commodity Exchange Act (7 
                        U.S.C. 7) or to any transaction subject to an 
                        exemption pursuant to section 4(c) of such Act;
                            ``(iii) any over-the-counter derivative 
                        instrument;
                            ``(iv) a contract of indemnity or 
                        guarantee;
                            ``(v) a contract for life, health, or 
                        accident insurance;
                            ``(vi) participation in any game or contest 
                        in which participants do not stake or risk 
                        anything of value other than--
                                    ``(I) personal efforts of the 
                                participants in playing the game or 
                                contest or obtaining access to the 
                                Internet; or
                                    ``(II) point or credits that the 
                                sponsor of the game or contest provides 
                                to participants free of charge and that 
                                can be used or redeemed only for 
                                participation in games or contests 
                                offered by the sponsor; or
                            ``(vii) participation in any simulation 
                        sports game or educational game or contest in 
                        which (if the game or contest involves a team 
                        or teams) all teams are fictional and no team 
                        is a member of an amateur or professional 
                        sports organization (as those terms are defined 
                        in section 3701 of title 28) and that meets the 
                        following conditions:
                                    ``(I) All prizes and awards offered 
                                to winning participants are established 
                                and made known to the participants in 
                                advance of the game or contest and 
                                their value is not determined by the 
                                number of participants or the amount of 
                                any fees paid by those participants.
                                    ``(II) All winning outcomes reflect 
                                the relative knowledge and skill of the 
                                participants and are determined 
                                predominantly by accumulated 
                                statistical results of the performance 
                                of individuals (athletes in the case of 
                                sports events) in multiple real-world 
                                sporting or other events.
                                    ``(III) No winning outcome is 
                                based--
                                            ``(aa) on the score, point-
                                        spread or any performance or 
                                        performances of any single 
                                        real-world team or any 
                                        combination of such teams; or
                                            ``(bb) solely on any single 
                                        performance of an individual 
                                        athlete in any single real-
                                        world sporting or other event.
            ``(7) The term `foreign jurisdiction' means a jurisdiction 
        of a foreign country or political subdivision thereof.
            ``(8) The term `gambling business' means a business of 
        betting or wagering;
            ``(9) The term `information assisting in the placing of 
        bets or wagers' means information knowingly transmitted by an 
        individual in a gambling business for use in placing, 
        receiving, making, or otherwise enabling or facilitating a bet 
        or wager and does not include--
                    ``(A) any posting or reporting of any educational 
                information on how to make a legal bet or wager or the 
                nature of betting or wagering, as long as such posting 
                or reporting does not solicit or provide information 
                for the purpose of facilitating or enabling the placing 
                or receipt of bets or wagers in a jurisdiction where 
                such betting is illegal; or
                    ``(B) advertising relating to betting or wagering 
                in a jurisdiction where such betting or wagering is 
                legal, as long as such advertising does not solicit or 
                provide information for the purpose of facilitating or 
                enabling the placing or receipt of bets or wagers in a 
                jurisdiction where such betting is illegal.
            ``(10) The term `person' includes a government (including 
        any governmental entity (as defined in section 3701(2) of title 
        28)).
            ``(11) The term `State' means a State of the United States, 
        the District of Columbia, or a commonwealth, territory, or 
        possession of the United States.
            ``(12) The terms `credit', `creditor', and `credit card' 
        have the meanings given such terms in section 103 of the Truth 
        in Lending Act.
            ``(13) The term `electronic fund transfer'--
                    ``(A) has the meaning given such term in section 
                903 of the Electronic Fund Transfer Act; or
                    ``(B) any fund transfer covered by Article 4A of 
                the Uniform Commercial Code, as in effect in any State.
            ``(14) The term `financial institution' has the meaning 
        given such term in section 903 of the Electronic Fund Transfer 
        Act.
            ``(15) The term `insured depository institution'--
                    ``(A) has the same meaning as in section 3(c) of 
                the Federal Deposit Insurance Act; and
                    ``(B) includes any insured credit union (as defined 
                in section 101 of the Federal Credit Union Act).
            ``(16) The terms `money transmitting business' and `money 
        transmitting service' have the meanings given such terms in 
        section 5330(d) of title 31, United States Code.
            ``(17) The terms `own or control' and to be `owned or 
        controlled' have the same meanings as in section 2(a)(2) of the 
        Bank Holding Company Act of 1956.
            ``(18) The term `Secretary' means the Secretary of the 
        Treasury.
            ``(19) The term `Tribe' or `tribal' means an Indian tribe, 
        as defined under section 4(5) of the Indian Gaming Regulatory 
        Act of 1988).''.

SEC. 3. MODIFICATION OF EXISTING PROHIBITION.

    Section 1084 of title 18, United States Code, is amended to read as 
follows:
``Sec. 1084. Use of a communication facility to transmit bets or 
              wagers; Penalties
    ``(a) Except as otherwise provided in this section, whoever, being 
engaged in a gambling business, knowingly uses a communication 
facility--
            ``(1) for the transmission in interstate or foreign 
        commerce, within the special maritime and territorial 
        jurisdiction of the United States, or to or from any place 
        outside the jurisdiction of any nation with respect to any 
        transmission to or from the United States, of bets or wagers, 
        or information assisting in the placing of bets or wagers; or
            ``(2) for the transmission of a communication in interstate 
        or foreign commerce, within the special maritime and 
        territorial jurisdiction of the United States, or to or from 
        any place outside the jurisdiction of any nation with respect 
        to any transmission to or from the United States, which 
        entitles the recipient to receive money or credit as a result 
        of bets or wagers, or for information assisting in the placing 
        of bets or wagers;
shall be fined under this title or imprisoned not more than five years, 
or both.
    ``(b)(1) Except as provided in paragraph (2), whoever, being 
engaged in a gambling business, knowingly accepts, in connection with 
the transmission of a communication in interstate or foreign commerce, 
within the special maritime and territorial jurisdiction of the United 
States, or to or from any place outside the jurisdiction of any nation 
with respect to any transmission to or from the United States of bets 
or wagers or information assisting in the placing of bets or wagers--
            ``(A) credit, or the proceeds of credit, extended to or on 
        behalf of another (including credit extended through the use of 
        a credit card);
            ``(B) an electronic fund transfer or funds transmitted by 
        or through a money transmitting business, or the proceeds of an 
        electronic fund transfer or money transmitting service, from or 
        on behalf of the other person;
            ``(C) any check, draft, or similar instrument which is 
        drawn by or on behalf of the other person and is drawn on or 
        payable through any financial institution; or
            ``(D) the proceeds of any other form of financial 
        transaction as the Secretary of the Treasury may prescribe by 
        regulation which involves a financial institution as a payor or 
        financial intermediary on behalf of or for the benefit of the 
        other person,
shall be fined under this title or imprisoned not more than five years, 
or both.
    ``(2) Paragraph (b)(1) does not apply if the use of a communication 
facility for the transmission of bets or wagers or information 
assisting in the placing of bets or wagers is permitted under 
subsections (c) or (d).
    ``(c) Nothing in this section prohibits--
            ``(1) the transmission of information assisting in the 
        placing of bets or wagers for use in news reporting if such 
        transmission does not solicit or provide information for the 
        purpose of facilitating or enabling the placing or receipt of 
        bets or wagers in a jurisdiction where such betting is illegal; 
        or
            ``(2) the transmission of information assisting in the 
        placing of bets or wagers from a State or foreign country where 
        such betting or wagering is permitted under Federal, State, 
        tribal, or local law into a State or foreign country in which 
        such betting on the same event is permitted under Federal, 
        State, tribal, or local law.
    ``(d) Nothing in this section prohibits the use of a communication 
facility for the transmission of bets or wagers or information 
assisting in the placing of bets or wagers, if--
            ``(1) at the time the transmission occurs, the individual 
        or entity placing the bets or wagers or information assisting 
        in the placing of bets or wagers, the gambling business, and 
        any facility or support service processing those bets or wagers 
        is physically located in the same State, and the State has a 
        secure and effective customer verification and age verification 
        system to assure compliance with age and residence 
        requirements, and for class II or class III gaming under the 
        Indian Gaming Regulatory Act, are physically located on Indian 
        lands within that State;
            ``(2) the State or Tribe has explicitly authorized such 
        bets and wagers;
            ``(3) the State has explicitly authorized and licensed the 
        operation of the gambling business, any facility processing the 
        bets and wagers, and the support service within its borders or 
        the Tribe has explicitly authorized and licensed the operation 
        of such gambling business, any facility processing the bets and 
        wagers, and the support service on Indian lands within its 
        jurisdiction;
            ``(4) with respect to class II or class III gaming, the 
        game is permitted under and conducted in accordance with the 
        Indian Gaming Regulatory Act;
            ``(5) with respect to class III gaming under the Indian 
        Gaming Regulatory Act, the game is authorized under, and is 
        conducted in accordance with, the respective Tribal-State 
        compact of the Tribe having jurisdiction over the Indian lands 
        where the individual or entity placing the bets or wagers or 
        information assisting in the placing of bets or wagers, the 
        gambling business, and any facility or support service 
        processing those bets or wagers are physically located; and
            ``(6) with respect to class III gaming under the Indian 
        Gaming Regulatory Act, each such Tribal-State compact expressly 
        provides that the game may be conducted using a communication 
        facility to transmit bets or wagers or information assisting in 
        the placing of bets or wagers.
    ``(e) Nothing in this section creates immunity from criminal 
prosecution under any laws of any State or Tribe.
    ``(f) Nothing in this section shall be construed to prohibit an 
activity allowed under Public Law 95-515 (15 U.S.C. 3001 et seq.).
    ``(g) Nothing in this section authorizes activity that is 
prohibited under chapter 178 of title 28, United States Code.
    ``(h) When any common carrier, subject to the jurisdiction of the 
Federal Communications Commission, is notified in writing by a Federal, 
State, tribal or local law enforcement agency, acting within its 
jurisdiction, that any communication facility furnished by it is being 
used or will be used by its subscriber for the purpose of transmitting 
or receiving gambling information, in interstate or foreign commerce, 
within the special maritime and territorial jurisdiction of the United 
States, or to or from any place outside the jurisdiction of any nation 
with respect to any transmission to or from the United States in 
violation of Federal, State, tribal or local law, it shall discontinue 
or refuse, the leasing, furnishing, or maintaining of such facility, 
after reasonable notice to the subscriber, but no damages, penalty or 
forfeiture, civil or criminal, shall be found against any common 
carrier for any act done in compliance with any notice received from a 
law enforcement agency. Nothing in this section shall be deemed to 
prejudice the right of any person affected thereby to secure an 
appropriate determination, as otherwise provided by law, in a Federal 
court or in a State, tribal, or local tribunal or agency, that such 
facility should not be discontinued or removed, or should be restored.
    ``(i)(1) A Federal, State, tribal, or local law enforcement agency, 
acting within its jurisdiction may, in a civil action, obtain 
injunctive or declaratory relief to restrain or prevent any person from 
paying or assisting in the payment of bets or wagers, or communicating 
information assisting in the placing of bets or wagers, in interstate 
or foreign commerce, within the special maritime and territorial 
jurisdiction of the United States, or to or from any place outside the 
jurisdiction of any nation with respect to any transmission to or from 
the United States in violation of Federal, State, tribal, or local law.
    ``(2) No damages, penalty, or forfeiture, civil or criminal, shall 
be found against any person or entity for any act done in compliance 
with any notice received from a law enforcement agency.
    ``(3) No relief requiring the blocking of websites may be granted 
under paragraph (1) against an interactive computer service (as defined 
in section 230(f) of the Communications Act of 1934), unless the 
service is acting in concert with a person who is violating the law and 
the service receives actual notice of the relief.''.
                                 <all>