[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2046 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 2046

To amend title 31, United States Code, to provide for the licensing of 
 Internet gambling facilities by the Director of the Financial Crimes 
              Enforcement Network, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 26, 2007

  Mr. Frank of Massachusetts (for himself, Mr. Paul, Mr. Wexler, Mr. 
Ackerman, Mr. Clay, Mr. Gutierrez, Mr. Capuano, Mr. Watt, Ms. Berkley, 
   Ms. Carson, Mr. King of New York, and Mr. Israel) introduced the 
   following bill; which was referred to the Committee on Financial 
Services, and in addition to the Committee on Energy and Commerce, for 
a period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
To amend title 31, United States Code, to provide for the licensing of 
 Internet gambling facilities by the Director of the Financial Crimes 
              Enforcement Network, 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 ``Internet Gambling Regulation and 
Enforcement Act of 2007''.

SEC. 2. FEDERAL LICENSING REQUIREMENT FOR INTERNET GAMBLING OPERATORS.

    (a) In General.--Chapter 53 of Title 31, United States Code, is 
amended by adding at the end the following new Subchapter:

         ``SUBCHAPTER V--REGULATION OF LAWFUL INTERNET GAMBLING

``Sec. 5381. Congressional findings and purpose
    ``(a) Findings.--The Congress finds the following:
            ``(1) Internet gambling is a $13,000,000,000 and growing 
        industry worldwide.
            ``(2) Gambling is a popular activity domestically, with 
        some form of gambling being permitted in nearly every State.
            ``(3) Internet gambling is a licensed, regulated activity 
        in more than 50 countries, providing billions of dollars in tax 
        revenue to those countries.
            ``(4) The global gaming market grossed about 
        $258,000,000,000 in 2005, with online revenues representing an 
        estimated 5.0 percent. North American residents accounted for 
        an estimated 47 percent of the global gross gaming yield in 
        2005.
            ``(5) A licensing and regulatory regime for Internet 
        gambling in the United States is needed to provide appropriate 
        protections against underage gambling, compulsive gambling, 
        money laundering, and fraud for those citizens who choose to 
        gamble online.
            ``(6) Licensing and regulating Internet gambling in the 
        United States would provide additional tax revenues, and would 
        reduce tax avoidance.
``Sec. 5382. Definitions
    ``For purposes of this subchapter, the following definitions shall 
apply:
            ``(1) Director.--The term `director' means the Director of 
        the Financial Crimes Enforcement Network.
            ``(2) Bet or wager.--The term `bet or wager' shall have the 
        same meaning as in section 5362(1).
            ``(3) Licensee.--The term `licensee' shall mean an Internet 
        gambling operator licensed by the Director in accordance with 
        this subchapter.
            ``(4) State.--The term `State' means any State of the 
        United States, the District of Columbia, or any commonwealth, 
        territory, or other possession of the United States.
            ``(5) Internet.--The term `Internet' means the 
        international computer network of interoperable packet switched 
        data networks.
            ``(6) Sporting league.--The term `sporting league' shall 
        mean any sporting association, whether professional, 
        scholastic, or amateur.
            ``(7) Operate an internet gambling facility.--The term 
        `operate an Internet gambling facility' means the direction, 
        management, supervision, or control of an Internet site through 
        which bets or wagers are placed, accepted, or otherwise made, 
        whether by telephone, Internet or other wire communication.
            ``(8) Indian lands and indian tribe.--The terms `Indian 
        lands' and `Indian tribe' have the same meanings as in section 
        4 of the Indian Gaming Regulatory Act.
``Sec. 5383. Establishment and administration of licensing program
    ``(a) Fincen Requirements.--Subject to the oversight and direction 
of the Secretary of the Treasury, the Director shall prescribe such 
regulations as may be necessary to administer and enforce the 
requirements under this subchapter.
    ``(b) Internet Gambling Licensing Program.--No person shall engage 
in the business of Internet betting or wagering in the United States 
without a license issued by the Director in accordance with this 
subchapter.
    ``(c) Application for License.--
            ``(1) In general.--Any person seeking authority to engage 
        in the business of betting or wagering in the United States may 
        apply for a license issued by the Director.
            ``(2) Information required.--Any application for a license 
        under this subchapter shall contain such information as may be 
        required by the Director, including--
                    ``(A) a complete financial statements of the 
                applicant;
                    ``(B) documentation showing the corporate structure 
                of the applicant and all related businesses and 
                affiliates; and
                    ``(C) a certification that the applicant agrees to 
                be subject to United States jurisdiction and all 
                applicable United States laws relating to Internet 
                gambling activities.
    ``(d) Review of Licensees.--
            ``(1) In general.--After the filing of a complete 
        application, the Director shall evaluate the general fitness of 
        the applicant on the basis of such factors as the Director 
        determines to be appropriate.
            ``(2) Factors.--The factors taken into account by the 
        Director under paragraph (1) shall include--
                    ``(A) the financial condition of the applicant;
                    ``(B) the business experience and record of the 
                applicant, including the applicant's compliance with 
                similar laws and requirements in foreign jurisdictions;
                    ``(C) if the applicant is an individual, a 
                background check to determine if the individual has any 
                criminal record; and
                    ``(D) if the applicant is a corporation, 
                partnership, or other business entity, such background 
                check shall occur with respect to the president or 
                other chief executive of the corporation, partnership, 
                or other business entity and other partners or senior 
                executives and directors of the corporation, 
                partnership, or entity, as determined appropriate by 
                the Director, in the Director's sole discretion.
    ``(e) Assessments for Administrative Expenses.--
            ``(1) In general.--
                    ``(A) In general.--The cost of administering this 
                subchapter with respect to each licensee, including the 
                cost of any review or examination of a licensee to 
                ensure compliance with the terms of the license and 
                this subchapter, shall be assessed by the Director 
                against the licensee institution by written notice in 
                an amount appropriate to meet the Director's expenses 
                in carrying out such administration, review, or 
                examination.
                    ``(B) Disposition.--Amounts assessed by the 
                Director as user fees under subparagraph (A) shall--
                            ``(i) be maintained by the Director for 
                        solely for use in accordance with clause (ii);
                            ``(ii) be available to the Director to 
                        cover all expenses incurred by the Director in 
                        carrying out this subchapter; and
                            ``(iii) not be construed to be Government 
                        Funds or appropriated monies, or subject to 
                        apportionment for the purposes of chapter 15 or 
                        any other authority.
                    ``(C) Hearing.--Any licensee against whom an 
                assessment is assessed under this paragraph shall be 
                afforded an agency hearing if such person submits a 
                request for such hearing within 20 days after the 
                issuance of the notice of assessment.
                    ``(D) Collection.--
                            ``(i) Referral.--If any licensee fails to 
                        pay an assessment under this paragraph after 
                        the assessment has become final, the Director 
                        shall recover the amount assessed by action in 
                        the appropriate United States district court.
                            ``(ii) Appropriateness of assessment not 
                        reviewable.--In any civil action under clause 
                        (i), the validity and appropriateness of the 
                        assessment shall not be subject to review.
            ``(2) Direct and exclusive obligation of licensee.--The 
        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.
    ``(f) Approval of License.--The Director shall grant licenses under 
this subchapter if, in the Director's sole discretion, the applicant 
meets the criteria set by the Director and is generally fit to engage 
in the business of Internet gambling.
    ``(g) Safeguards Required of Licensee.--No person shall receive or 
retain a license under this section unless the person implements and 
maintains the following requirements with respect to any Internet bet 
or wager:
            ``(1) Appropriate safeguards to ensure that the individual 
        placing a bet or wager is 18 years of age or older.
            ``(2) Appropriate safeguards to ensure that the individual 
        placing a bet or wager is physically located in a jurisdiction 
        that permits Internet gambling at the time the bet or wager is 
        placed.
            ``(3) Appropriate mechanisms to ensure that all taxes 
        relating to Internet gambling due to Federal and State 
        governments and to Indian tribes from persons engaged in 
        Internet gambling are collected at the time of any payment of 
        any proceeds of Internet gambling.
            ``(4) Appropriate mechanisms to ensure that all taxes 
        relating to Internet gambling due to Federal and State 
        governments and to Indian tribes from any licensee are 
        collected as required by law.
            ``(5) Appropriate safeguards to combat fraud and money 
        laundering as may be prescribed by regulations issued by the 
        Director or a designee of the Director.
            ``(6) Appropriate safeguards to combat compulsive Internet 
        gambling.
            ``(7) Appropriate safeguards to protect the privacy and 
        security of any person engaged in Internet gambling.
            ``(8) Appropriate mechanisms to ensure that any assessment 
        under subsection (e) is paid to the Director.
            ``(9) Such other requirements as the Director may establish 
        by regulation or order.
    ``(h) Licenses Denied.--
            ``(1) In general.--No license shall be granted to any 
        individual who has been convicted under the laws of any foreign 
        country, the United States, or any State for any criminal 
        violation involving gambling laws, financial markets, or 
        financial laws, including any money laundering, fraud, privacy, 
        or information security law.
            ``(2) Applicability to business entities.--If an applicant 
        for a license is a corporation, partnership, or other business 
        entity, paragraph (1) shall apply with respect to each partner, 
        officer, or director of such corporation, partnership, or 
        entity.
    ``(i) Term and Renewal of License.--
            ``(1) Term.--Any license issued under this section shall be 
        issued for a 1-year term beginning on the date of issuance.
            ``(2) Renewal.--Licenses may be renewed in accordance with 
        the requirements prescribed by the Director pursuant to this 
        subchapter.
    ``(j) Revocation of License.--
            ``(1) In general.--Any license granted under this 
        subchapter shall be terminated or revoked by the Director if--
                    ``(A) the licensee fails to comply with any 
                provision of this subchapter; or
                    ``(B) the licensee, or in any case in which the 
                licensee the licensee is a corporation, partnership, or 
                other business entity, any officer, partner, or 
                director of that corporation, partnership, or other 
                entity, is convicted of a crime involving the payments 
                system, financial markets, or Internet gambling laws of 
                the United States or of the jurisdiction in which the 
                licensee is located.
            ``(2) Final action.--Any revocation of a license under 
        paragraph (1) shall be treated as a final action by the 
        Director.
    ``(k) Compliance With Federal Laws.--Licensees shall be required to 
comply with anti-money laundering, anti-fraud, anti-terrorism, and such 
other regulations, requirements, and limitations as may be prescribed 
by the Director.
    ``(l) Administrative Provisions.--
            ``(1) General powers of director.--Subject to the oversight 
        and direction of the Secretary of the Treasury, the Director 
        may--
                    ``(A) require a class of licensees to maintain 
                appropriate procedures to ensure compliance with this 
                subchapter and regulations prescribed under this 
                subchapter;
                    ``(B) examine any licensee and any books, papers, 
                records, or other data of licensees relevant to any 
                recordkeeping or reporting requirements imposed by the 
                Director under this subchapter;
                    ``(C) summon a licensee or an applicant for a 
                license, an officer or employee of a licensee or any 
                such applicant (including a former officer or 
                employee), or any person having possession, custody, or 
                care of the reports and records required by the 
                Director under this subchapter, to appear before the 
                Director or a designee of the Director at a time and 
                place named in the summons and to produce such books, 
                papers, records, or other data, and to give testimony, 
                under oath, as may be relevant or material to any 
                investigation in connection with the enforcement of 
                this subchapter or any application for a license under 
                this subchapter.
            ``(2) Administrative aspects of summons.--
                    ``(A) Production at designated site.--A summons 
                issued pursuant to this subsection may require that 
                books, papers, records, or other data stored or 
                maintained at any place be produced at any business 
                location of a licensee or applicant for a license or 
                any designated location in any State or in any 
                territory or other place subject to the jurisdiction of 
                the United States not more than 500 miles distant from 
                any place where the licensee or applicant for a license 
                operates or conducts business in the United States.
                    ``(B) No liability for expenses.--The United States 
                shall not be liable for any expense incurred in 
                connection with the production of books, papers, 
                records, or other data under this subsection.
                    ``(C) Service of summons.--Service of a summons 
                issued under this subsection may be by registered mail 
                or in such other manner calculated to give actual 
                notice as the Director may prescribe by regulation.
            ``(3) Contumacy or refusal.--
                    ``(A) Referral to attorney general.--In case of 
                contumacy by a person issued a summons under this 
                subsection or a refusal by such person to obey such 
                summons or to allow the Director to conduct an 
                examination, the Director shall refer the matter to the 
                Secretary of the Treasury for referral to the Attorney 
                General.
                    ``(B) Jurisdiction of court.--The Attorney General 
                may invoke the aid of any court of the United States 
                within the jurisdiction of which--
                            ``(i) the investigation which gave rise to 
                        the summons or the examination is being or has 
                        been carried on;
                            ``(ii) the person summoned is an 
                        inhabitant; or
                            ``(iii) the person summoned carries on 
                        business or may be found,
                to compel compliance with the summons.
                    ``(C) Court order.--The court may issue an order 
                requiring the person summoned to appear before the 
                Director or a delegate of the Director to produce 
                books, papers, records, and other data, to give 
                testimony as may be necessary to explain how such 
                material was compiled and maintained, to allow the 
                Director to examine the business of a licensee, and to 
                pay the costs of the proceeding.
                    ``(D) Failure to comply with order.--Any failure to 
                obey the order of the court may be punished by the 
                court as a contempt thereof.
                    ``(E) Service of process.--All process in any case 
                under this subsection may be served in any judicial 
                district in which such person may be found.
``Sec. 5384. Financial institutions
    ``(a) Investment Banking.--No person shall be held liable for 
engaging in investment banking activities for or on behalf of a 
licensee or involving a licensee, if such activities are performed in 
compliance with this subchapter, the Sarbanes-Oxley Act, the Securities 
Act of 1933 Act, the Securities Exchange Act of 1934, and any other 
applicable laws governing securities.
    ``(b) Payment and Transaction Processing.--No person shall be held 
liable for engaging in payments processing activities for or on behalf 
of a licensee or involving a licensee, if such activities are performed 
in compliance with this subchapter.
    ``(c) Financial Institutions.--No financial institution shall be 
held liable for engaging in financial activities and transactions for 
or on behalf of a licensee or involving a licensee, if such activities 
are performed in compliance with this subchapter and with applicable 
Federal, State, and foreign banking laws and regulations.
``Sec. 5385. Prohibition and limitation of licenses in States and 
              Indian lands
    ``(a) State Opt Out.--
            ``(1) In general.--No Internet gambling licensee may 
        engage, under any license issued under this subchapter, in the 
        business of Internet betting or wagering in any State which 
        prohibits such business within such State if the Governor or 
        other chief executive officer of such State informs the 
        Director of such prohibition before the end of the 90-day 
        period beginning on the date of the enactment of the Internet 
        Gambling Regulation and Enforcement Act of 2007, or in 
        accordance with paragraph (3), until such time as any notice of 
        any subsequent repeal of such prohibition becomes effective 
        under paragraph (3).
            ``(2) Limitations imposed by states.--No Internet gambling 
        licensee may engage, under any license issued under this 
        subchapter, in the business of conducting any particular types 
        of gambling activities or other contests in any State which 
        prohibits or limits such particular types of gambling 
        activities or other contests if the Governor or other chief 
        executive officer of such State informs the Director of such 
        prohibition or limitation, in a manner which clearly identifies 
        the nature and extent of such prohibition or limitation, before 
        the end of the 90-day period beginning on the date of the 
        enactment of the Internet Gambling Regulation and Enforcement 
        Act of 2007, or in accordance with paragraph (3), until such 
        time as any notice of any amendment or repeal of such specific 
        prohibition or limitation becomes effective under paragraph 
        (3).
            ``(3) Changes to state limitations.--The establishment, 
        repeal, or amendment by any State of any prohibition or 
        limitation referred to in paragraph (1) or (2) after the end of 
        the 90-day period beginning on the date of the enactment of the 
        Internet Gambling Regulation and Enforcement Act of 2007 shall 
        apply, for purposes of this subchapter, with respect to the 
        business of Internet betting or wagering in such State by any 
        licensee beginning on the first January 1 that occurs after the 
        end of the 30-day period beginning on the later of--
                    ``(A) 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 Director; or
                    ``(B) the effective date of such establishment, 
                repeal, or amendment.
    ``(b) Indian Tribe Opt Out.--
            ``(1) In general.--No Internet gambling licensee may 
        engage, under any license issued under this subchapter, in the 
        business of Internet betting or wagering within the tribal 
        lands of any Indian tribe which prohibits such business within 
        such tribal lands if the principal chief or other chief 
        executive officer of such Indian tribe informs the Director of 
        such prohibition before the end of the 90-day period beginning 
        on the date of the enactment of the Internet Gambling 
        Regulation and Enforcement Act of 2007, or in accordance with 
        paragraph (3), until such time as any notice of any repeal or 
        amendment of such prohibition becomes effective under paragraph 
        (3).
            ``(2) Limitations imposed by indian tribes.--No Internet 
        gambling licensee may engage, under any license issued under 
        this subchapter, in the business of conducting any particular 
        types of gambling activities or other contests in the tribal 
        lands of any Indian tribe which prohibits or limits such 
        particular types of gambling activities or other contests if 
        the principal chief or other chief executive officer of such 
        Indian tribe informs the Director of such prohibition or 
        limitation, in a manner which clearly identifies the nature and 
        extent of such prohibition or limitation, before the end of the 
        90-day period beginning on the date of the enactment of the 
        Internet Gambling Regulation and Enforcement Act of 2007, or in 
        accordance with paragraph (3), until such time as any notice of 
        any amendment or repeal of such specific prohibition or 
        limitation becomes effective under paragraph (3).
            ``(3) Changes to indian tribe limitations.--The 
        establishment, repeal, or amendment by any Indian tribe of any 
        prohibition or limitation referred to in paragraph (1) or (2) 
        after the end of the 90-day period beginning on the date of the 
        enactment of the Internet Gambling Regulation and Enforcement 
        Act of 2007 shall apply, for purposes of this subchapter, with 
        respect to the business of Internet betting or wagering in the 
        tribal lands of such Indian tribe by any licensee beginning on 
        the first January 1 that occurs after the end of the 30-day 
        period beginning on the later of--
                    ``(A) the date a notice of such establishment, 
                repeal, or amendment is provided by the principal chief 
                or other chief executive officer of such Indian tribe 
                in writing to the Director; or
                    ``(B) the effective date of such establishment, 
                repeal, or amendment.
    ``(c) Enforcing State and Indian Tribe Limitations.--
            ``(1) In general.--The Director 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 Indian tribe to which the 
        licensee is subject under paragraph (1), (2) or (3) of 
        subsection (a) or (b), as the case may be.
            ``(2) Violations.--It shall be a violation of this 
        subchapter for any licensee knowingly to accept bets or wagers, 
        or engage in any Internet gambling activity within any State or 
        in the tribal lands of any Indian tribe for which a notice is 
        in effect under paragraph (1), (2), or (3) of subsection (a) or 
        (b), as the case may be.
    ``(d) Intermediate Routing.--The intermediate routing of electronic 
data shall not determine the location or locations in which a bet or 
wager is initiated, received or otherwise made.
``Sec. 5386. Sporting leagues may prohibit internet gambling on league 
              activities
    ``(a) Sporting League Opt-Out.--No Internet gambling licensee may 
engage, under any license issued under this subchapter, in the business 
of Internet betting or wagering in connection with any sport event or 
contest of any sporting league which prohibits such business if the 
chief executive officer of such sporting league informs the Director of 
such prohibition before the end of the 90-day period beginning on the 
date of the enactment of the Internet Gambling Regulation and 
Enforcement Act of 2007, or in accordance with subsection (c), until 
such time as any notice of any repeal of such prohibition becomes 
effective under paragraph (3).
    ``(b) Establishment or Repeal of Sporting.--The establishment or 
repeal by any sporting league of any prohibition referred to in 
subsection (a) after the end of the 90-day period beginning on the date 
of the enactment of the Internet Gambling Regulation and Enforcement 
Act of 2007 shall apply, for purposes of this subchapter, with respect 
to the business of Internet betting or wagering in connection with any 
sport event or contest of such sporting league by any licensee 
beginning on the first January 1 that occurs after the end of the 30-
day period beginning on the later of--
            ``(1) the date a notice of such establishment or repeal is 
        provided by the chief executive officer of such sporting league 
        in writing to the Director; or
            ``(2) the effective date of such establishment or repeal.
    ``(c) Violation of Sporting League Limitation.--
            ``(1) In general.--The Director shall take effective 
        measures to ensure that any licensee under this subchapter, as 
        a condition of the license, complies with any prohibition 
        imposed by any sporting league to which the licensee is subject 
        under subsection (a) or (b).
            ``(2) Violations.--It shall be a violation of this 
        subchapter for any licensee knowingly to engage in the business 
        of Internet betting or wagering in connection with any sport 
        event or contest of any sporting league for which a notice is 
        in effect under subsection (a) or (b).
``Sec. 5387. Safe harbors
    ``It shall be a defense against any prosecution or enforcement 
action under any Federal or State law against any person possessing a 
valid license under this subchapter that the activity is authorized 
under and has been carried out lawfully under the terms of this 
subchapter.
``Sec. 5388. Criminal penalties
    ``(a) In General.--Whoever knowingly violates any provision of this 
subchapter shall be fined under title 18, or imprisoned for not more 
than 5 years, or both.
    ``(b) Permanent Injunction.--Upon conviction of a person under this 
section, the court may enter a permanent injunction enjoining such 
person from placing, receiving, or otherwise making bets or wagers or 
sending, receiving, or inviting information assisting in the placing of 
bets or wagers.
``Sec. 5389. Rules of construction
    ``(a) No Effect on Other Law.--No provision of this subchapter 
shall be construed as altering, limiting, or extending any Federal or 
State law or Tribal-State compact prohibiting, permitting, or 
regulating gambling within the United States.
    ``(b) Coordination With Certain Gambling Laws.--No provision of 
this chapter shall be construed as permitting any bet or wager that 
would otherwise violate any provision of--
            ``(1) the Interstate Horse Racing Act;
            ``(2) the Professional and Amateur Sports Protection Act;
            ``(3) the Gambling Devices Transportation Act; or
            ``(4) the Indian Gaming Regulatory Act.''.
    (b) Technical and Conforming Amendment.--Section 310(b)(2) of title 
31, United States Code is amended--
            (1) by redesignating subparagraphs (J) and (K) as 
        subparagraphs (K) and (L), respectively; and
            (2) by inserting after subparagraph (I) the following new 
        subparagraph:
                    ``(J) Administer the requirements of subchapter V 
                of chapter 53.''
    (c) Clerical Amendment.--The table of sections for chapter 53 of 
title 31, United States Code, is amended by adding at the end the 
following:

         ``subchapter v--regulation of lawful internet gambling

``5381. Congressional findings and purpose.
``5382. Definitions.
``5383. Establishment and administration of licensing program.
``5384. Financial institutions.
``5385. Prohibition and limitation of licenses in States and Indian 
                            lands.
``5386. Sporting leagues may prohibit Internet gambling on league 
                            activities.
``5387. Safe harbors.
``5388. Criminal penalties.
``5389. Rules of construction.''.

SEC. 3. REPORT REQUIRED.

    (a) In General.--Before the end of the 1-year period beginning on 
the effective date of the regulations prescribed under section 4(a), 
and annually thereafter, the Director shall submit a report to the 
Congress on the licensing and regulation of Internet gambling 
operators.
    (b) Information Required.--Each report submitted under subsection 
(a) shall include the following information:
            (1) A comprehensive statement regarding the limitations 
        imposed by the States, Indian tribes, and sporting leagues.
            (2) Relevant statistical information on applicants and 
        licenses.
            (3) The amount of licensing and user fees collected during 
        the period covered by the report.
            (4) Information on regulatory or enforcement actions 
        undertaken during the period.
            (5) Any other information that may be useful to the 
        Congress in evaluating the effectiveness of the Act in meeting 
        its purpose, including the provision of protections against 
        underage gambling, compulsive gambling, money laundering, and 
        fraud, and in combating tax avoidance relating to online 
        gambling.

SEC. 4. EFFECTIVE DATE.

    (a) Regulations.--The Director of the Financial Crimes Enforcement 
Network shall prescribe such regulations as may appropriate to 
implement subchapter V of chapter 53 of title 31, United States Code 
(as added by section 2(a) of this Act) and shall publish such 
regulations in final form in the Federal Register before the end of the 
180-day period beginning on the date of the enactment of this Act.
    (b) Scope of Application.--The amendment made by section 2(a) shall 
apply after the end of the 90-day period beginning on the date of the 
publication of the regulations in final form in accordance with 
subsection (a).
                                 <all>