[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.''.
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