[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 3006 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 3006

                     To prohibit Internet gambling.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 25, 2002

  Mr. Johnson introduced the following bill; which was read twice and 
               referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
                     To prohibit Internet gambling.

    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 ``Comprehensive Internet Gambling 
Prohibition Act of 2002''.

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 `information assisting in the placing of 
        bets or wagers' means information knowingly transmitted by an 
        individual in the business of betting or wagering for use in 
        placing, receiving, making, or otherwise enabling or 
        facilitating a bet or wager that violates applicable Federal, 
        State, tribal, or local law, but does not include--
                    ``(A) the transmission of information for use in 
                news reporting of wagering activities, as long as 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;
                    ``(B) 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 
                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;
                    ``(C) 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;
                    ``(D) the transmission of information assisting in 
                the placing of bets or wagers from a State or foreign 
                country where such bets or wagers are legal into a 
                State or foreign country in which such betting or 
                wagering is legal; or
                    ``(E) information exchanged through 
                telecommunications connections using bi-directional 
                communication with external associated equipment 
                utilizing communication protocols that ensure that 
                erroneous data or signals will not adversely affect or 
                influence the operation of gaming devices connected to 
                an accounting system, if the information is used only 
                to monitor gaming device play, display prize amounts, 
                provide security information, or provide other 
                accounting information when such information is 
                transmitted among one or more Class II or Class III 
                gaming facilities as defined in section 4 of the Indian 
                Gaming Regulatory Act (25 U.S.C. 2703).
            ``(7) The term `transmission' or `transmit' means to place, 
        send, receive, transfer, post, disseminate, or otherwise convey 
        from one person or place to another.
            ``(8) The term `fantasy sports league or rotisserie league' 
        means an activity that--
                    ``(A) consists of persons who pay an entrance or 
                administrative fee to participate in a league that 
                allows each participant to create a fictitious team 
                composed of athletes from a professional sport;
                    ``(B) allows for the selection or subsequent 
                replacement of players without charging any fees in 
                excess of the initial entrance or administrative fee;
                    ``(C) allows a participant to accrue points for the 
                performance of that participant's team that can be 
                compared to the points secured by other participants 
                and may award de minimis prizes daily, weekly, or 
monthly during the regular season or after each round of postseason 
play based on total points accrued, or other prizes at the conclusion 
of the regular season or postseason, or both based on the cumulative 
points accrued during the regular season or postseason, or both;
                    ``(D) designates the specific prizes (including 
                amounts, if monetary prizes) to be won by participants 
                in the league at the start of the regular season before 
                the registration of, or acceptance of fees from, the 
                participants and does not base the value of prizes on 
                the number of participants or the total amount of 
                entrance or administrative fees collected; and
                    ``(E) provides to each participant the rules 
                governing the conduct of the fantasy sports league.
            ``(9) The term `bets or wagers' means the staking or 
        risking by any person of something of value upon--
                    ``(A) any contest or game based in whole or in part 
                on chance, including a lottery;
                    ``(B) one or more sporting events or contests, or 
                one or more performances of the participants in such 
                events or contests, including any scheme of a type 
                described in section 3702 of title 28; or
                    ``(C) a future contingent event not under the 
                person's control or influence;
        with an agreement or understanding that the person or another 
        person will or may receive something of value as a result of 
        such stake or risk. However, such term does not include a bona 
        fide business transaction in securities or commodities of the 
        nature governed by the Federal securities and trading laws of 
        the United States, a contract of indemnity or guarantee, a 
        contract for insurance, or an entrance or administrative fee 
        collected by a fantasy sports or rotisserie league where the 
        operation of or participation in such league does not violate 
        applicable Federal, State, tribal, or local laws and such 
        league does not collect fees from or allow participation by 
        individuals under the age of 18.''.

SEC. 3. MODIFICATION OF EXISTING PROHIBITION.

    (a) In General.--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) Whoever being engaged in the business of betting or wagering 
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 two years, 
or both.
    ``(b) Nothing contained in this section creates immunity from 
criminal prosecution under any laws of any State or tribe.
    ``(c)(1) When any person or entity 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 bets or wagers, or 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, 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 person or entity 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.
    ``(2) A notice described in this subsection must--
            ``(A) identify the communication facility, gambling related 
        material, or activity that allegedly violates this section, and 
        allege that such facility, material, or activity violates this 
        section;
            ``(B) provide information reasonably sufficient to permit 
        the provider of the communication facility to locate (and, as 
        appropriate, to discontinue or refuse the leasing, furnishing, 
        or maintaining) of such facility;
            ``(C) be supplied to any agent of a provider of the 
        communication facility designated in accordance with section 
        512(c)(2) of title 17, if information regarding such 
        designation is readily available to the public;
            ``(D) provide information that is reasonably sufficient to 
        permit the provider of the wire communication facility to 
        contact the law enforcement agency that issued the notice, 
        including the name of the law enforcement agency, and the name 
        and telephone number of an individual to contact at the law 
        enforcement agency (and, if available, the electronic mail 
        address of that individual); and
            ``(E) declare under penalties of perjury that the person 
        submitting the notice is an official of the law enforcement 
        agency described in subparagraph (D).
    ``(d) Nothing in this section shall repeal or amend the rights or 
privileges secured tribes under the Indian Gaming Regulatory Act of 
1988 (25 U.S.C. 2701 et seq.) or under Indian treaties.
    ``(e)(1) An interactive computer service provider shall not be 
liable, under this section or any other provision of Federal or State 
law prohibiting or regulating gambling or gambling-related activities, 
for the use of its facilities or services by another person to engage 
in Internet gambling activity that violates such law--
            ``(A) arising out of any transmitting, routing, or 
        providing of connections for gambling-related material or 
        activity (including intermediate and temporary storage in the 
        course of such transmitting, routing, or providing connections) 
        by the provider, if--
                    ``(i) the material or activity was initiated by or 
                at the direction of a person other than the provider;
                    ``(ii) the transmitting, routing, or providing of 
                connections is carried out through an automatic process 
                without selection of the material or activity by the 
                provider;
                    ``(iii) the provider does not select the recipients 
                of the material or activity, except as an automatic 
                response to the request of another person; and
                    ``(iv) the material or activity is transmitted 
                through the system or network of the provider without 
                modification of its content; or
            ``(B) arising out of any gambling-related material or 
        activity at an online site residing on a computer server owned, 
        controlled, or operated by or for the provider, or arising out 
        of referring or linking users to an online location containing 
        such material or activity, if the material or activity was 
        initiated by or at the direction of a person other than the 
        provider.
    ``(2) An interactive computer service provider shall not be liable, 
under any provision of Federal or State law prohibiting or regulating 
gambling or gambling-related activities, or under any State law 
prohibiting or regulating advertising and promotional activities, for 
content, provided by another person, that advertises or promotes 
gambling activity that violates such law, unless the provider is 
engaged in the business of such gambling.
    ``(3)(A) An interactive computer service provider shall not be 
liable for any damages, penalty, or forfeiture, civil or criminal, 
under Federal or State law for taking in good faith any action to 
comply with a notice described in subsection (c).
    ``(B) Nothing in this section may be construed to impose or 
authorize an obligation on an interactive computer service provider--
            ``(i) to monitor material or use of its service; or
            ``(ii) except as required by a notice under subsection (c), 
        to discontinue or refuse the leasing, furnishing, or 
        maintaining of a facility.
    ``(4) As used in this subsection:
            ``(A) The term `interactive computer service' means any 
        interactive computer service that operates in interstate or 
        foreign commerce and provides or enables access by multiple 
        users to a computer server, including a service that--
                    ``(i) provides an information location tool to 
                refer to link users to an online location, including a 
                directory, index, or hypertext link;
                    ``(ii) is engaged in the transmission, storage, 
                retrieval, hosting, formatting, or translation of a 
                communication made by another person without selection 
                or alteration of the content of that communication, 
                other than that done in good faith to prevent or avoid 
                a violation of law; or
                    ``(iii) provides access to the Internet.
            ``(B) The term `interactive computer service provider' 
        means any person that provides an interactive computer service, 
        to the extent that such person offers or provides such service.
            ``(C) The term `Internet' means the international computer 
        network of both Federal and non-Federal interoperable packet 
        switched data networks.
    ``(f) As used in this section:
            ``(1) The term `State' means a State of the United States, 
        the District of Columbia, the Commonwealth of Puerto Rico, or a 
        commonwealth, territory, or possession of the United States.
            ``(2) The term `tribe' or `tribal' refers to an Indian 
        tribe, as defined under section 4(5) of the Indian Gaming 
        Regulatory Act of 1988 (25 U.S.C. 2703(5)).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 50 of that title is amended by striking the item relating to 
section 1084 and inserting the following new item:

``1084. Use of a communication facility to transmit bets or wagers; 
                            penalties.''.
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