1.Short title; table of
contents
(a)This Act may be cited
as the Internet Poker and Game of
Skill Regulation, Consumer Protection, and Enforcement Act of
2009
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—Regulation of Internet games of skill
facilities
Sec. 101. Findings.
Sec. 102. Federal licensing requirement for operation of
Internet games of skill facilities.
Sec. 103. List of unlawful Internet gambling
enterprises.
Sec. 104. Regulations.
Sec. 105. Annual report.
Sec. 106. Conforming amendments.
Sec. 107. Effective date.
Sec. 108. Applicability.
TITLE II—Internet games of skill tax provisions
Sec. 201. Amendment of 1986 code.
Sec. 202. Tax on Internet games of skill; licensee information
reporting.
Sec. 203. Withholding for pari-mutuel pool
winnings.
Sec. 204. Withholding from certain gaming winnings.
Sec. 205. Withholding of tax on nonresident aliens.
Sec. 206. Information at source; pari-mutuel
wagers.
Sec. 207. Exemption from State and Indian tribal government
taxation.
Sec. 208. Territorial extent of wagering tax.
TITLE III—Study and prevention of problem and pathological
gambling
Sec. 301. Authorization of programs for identification,
prevention, and treatment of problem and pathological gambling.
Sec. 302. Public awareness, research, and
treatment.
<enum>I</enum><header>Regulation of
Internet games of skill facilities</header>
<section id="id428CAA49C15E42E3B9241D29E103CBB3"><enum>101.</enum><header>Findings</header><text display-inline="no-display-inline">Congress makes the following
findings:</text>
<paragraph id="ID85cf40e6c5554edb8a2a5fe7c03c8ca8"><enum>(1)</enum><text>In the United
States, gambling and gaming activities, equipment, and operations have
traditionally been subject to various forms of Federal and State control,
regulation, and enforcement, with some form of gambling being permitted in
nearly every State and by many Indian tribes.</text>
</paragraph><paragraph id="ID771dda4e096641838570ba3d55c3f5f5"><enum>(2)</enum><text>The demarcation
between games of chance and games of skill is not always clearly drawn, and the
treatment and definition of <quote>games of skill</quote> has varied from
jurisdiction to jurisdiction.</text>
</paragraph><paragraph id="ID08f99713f8a54107b3ff05fffee47ee5"><enum>(3)</enum><text>Millions of
people in the United States enjoy competing with other players in poker, chess,
bridge, mah-jong, backgammon, and similar games where the outcome turns
predominantly on the skill of the participants. While each of these games
contains an element of chance, over any substantial interval, a player's
ultimate success is determined by that player's relative level of skill.</text>
</paragraph><paragraph id="ID871ccf84a34a4b469a2640224ef0741a"><enum>(4)</enum><text>Poker, in
particular, enjoys a long tradition in the United States. Poker is part of the
cultural and recreational fabric of the United States and has been since the
founding days of the United States. United States poker aficionados have
included presidents, judges, and statesmen throughout the history of the United
States.</text>
</paragraph><paragraph id="ID8d29b71b0d804deba1ecbc83e11d07e3"><enum>(5)</enum><text>Since the
development of the Internet, online sites offering Internet gambling and
similar games have raised numerous policy, consumer protection, and enforcement
concerns for the Federal and State governments as millions of United States
persons have chosen to play online on sites offered by operators located in
many different countries under a variety of licensing and regulatory
regimes.</text>
</paragraph><paragraph id="IDfc38cc37bf7f48db99d7c88662dd0f02"><enum>(6)</enum><text>Bets and wagers
made with respect to games in which success is predominantly determined by the
skill of the players and in which the bets and wagers are between the
participants can and should be treated as distinct from other bets and wagers
made with respect to games in which success is not predominantly determined by
the skill of the players or in which the wagers are not between the
participants such as Internet wagering with off-shore sites on games of chance
and betting on sporting events, all of which (with the exception of certain
betting on horse racing) are barred by the laws of the United States.</text>
</paragraph><paragraph id="IDae7c401ec4c64c07a4282acaef9bfb2e"><enum>(7)</enum><text>The hosting by
Internet operators of games predominantly determined by the skill of players
and in which wagers can be made between the participants should be controlled
by a strict Federal licensing and regulatory framework—</text>
<subparagraph id="idE228566BC1064A06A643000300520044"><enum>(A)</enum><text>to prevent
underage wagering and otherwise to protect vulnerable individuals;</text>
</subparagraph><subparagraph id="id022E2F2121684F0D929C7F87195F31B4"><enum>(B)</enum><text>to ensure the
games are fair;</text>
</subparagraph><subparagraph id="id85964321476A48C7A314A51F37CD4B05"><enum>(C)</enum><text>to address the
concerns of law enforcement; and</text>
</subparagraph><subparagraph id="idBEEE40100AD14CC08F936E1C846D1700"><enum>(D)</enum><text>to enforce
limitations on the activity established by the States and Indian tribes.</text>
</subparagraph></paragraph><paragraph id="IDde65c7f5cea14a1c8d08ac24d4d60e91"><enum>(8)</enum><text>An effective
Federal licensing system would ensure that licenses are issued only to Internet
operators who—</text>
<subparagraph id="id60A6A87B746A43ECB14221112501A0A2"><enum>(A)</enum><text>meet strict
criteria to protect consumers;</text>
</subparagraph><subparagraph id="ID98350b5eeede4805a667cbed5f48a395"><enum>(B)</enum><text>are in good
financial and legal standing;</text>
</subparagraph><subparagraph id="idF85E24E0CB0F4070B891D617430D0C78"><enum>(C)</enum><text>are of good
character, honesty, and integrity;</text>
</subparagraph><subparagraph id="IDf7869a80e0d447fc9c37bc8be62c89d0"><enum>(D)</enum><text>utilize
appropriate technology to prevent those of insufficient age from
participating;</text>
</subparagraph><subparagraph id="ID7d993e14c44d446cae36e025b5ef150b"><enum>(E)</enum><text>adopt and
implement systems to protect compulsive players;</text>
</subparagraph><subparagraph id="ID0bd280652455416caa3bc6c45cce5caf"><enum>(F)</enum><text>have in place
risk-based methods—</text>
<clause id="idA834BA08DC914DDD994B0BD17DB23F6C"><enum>(i)</enum><text>to
identify and combat money laundering and fraud; and</text>
</clause><clause id="id3CC4BCDD085C4C9AB6E10BC9B78D56D9"><enum>(ii)</enum><text>to
protect the privacy and security of users;</text>
</clause></subparagraph><subparagraph id="ID0c37ce5d26604dbeaf29cde1448876f0"><enum>(G)</enum><text>adopt strict
internal controls which are subject to audit; and</text>
</subparagraph><subparagraph id="ID968cfb962f7147848c1ceefb435eff1e"><enum>(H)</enum><text>adopt and
implement systems to collect and remit taxes due.</text>
</subparagraph></paragraph><paragraph id="IDbd4a9459fa7145ba9aad8644a1154d6a"><enum>(9)</enum><text>Effective
regulation requires application of the regulatory provisions prescribed under
subchapter V of chapter 53 of title 31, United States Code, as added by section
102, to all persons seeking a license to operate an Internet game-of-skill
facility (as such term is defined in section 5381 of such subchapter), with
each State and Indian tribe having the ability to prohibit operators of
Internet game-of-skill facilities from accepting bets or wagers from persons
located within the territory of the State or Indian tribe by opting out under
section 5385(a) of such subchapter, as so added.</text>
</paragraph><paragraph id="ID0d746062dac04b1a9ea55c5f36eba0bd"><enum>(10)</enum><text>Maintenance of a
list of unlawful Internet gambling enterprises and the owners and operators of
such enterprises will aid law enforcement efforts to prevent unlawful Internet
gambling.</text>
</paragraph><paragraph id="IDabbd0f7b06014d4e9c6e93c11ae4239e"><enum>(11)</enum><text>Longstanding
Federal policy against gambling on professional, scholastic, or amateur
sporting events, and all criminal laws prohibiting such gambling, should remain
in full force and effect.</text>
</paragraph><paragraph id="ID753624e54bdf4ab09b9bcff646685cee"><enum>(12)</enum><text>Licensing and
regulating Internet game-of-skill facilities (as such term is defined in
section 5381 of title 31, United States Code) in the United States would
provide additional tax revenues for the United States and would reduce tax
avoidance.</text>
</paragraph></section><section id="IDcc5bc279f367487e9c36d76f829e8f77"><enum>102.</enum><header>Federal
licensing requirement for operation of Internet game-of-skill
facilities</header>
<subsection id="ID2c92456da1724a1b92277df2d03aa66c"><enum>(a)</enum><header>In
general</header><text>Chapter 53 of title 31, United States Code, is amended by
adding at the end the following new subchapter:</text>
<quoted-block display-inline="no-display-inline" id="idDD5DB49869D84B01ABC004E08EBE9FBD" style="USC">
<subchapter id="idD25A218DB9754672A0370297598999CD"><enum>V</enum><header>Regulation of
Internet game-of-skill facilities</header>
<section id="ID36dd1a4acf8d4de5afe809421d89b895"><enum>5381.</enum><header>Definitions</header><text display-inline="no-display-inline">In this subchapter:</text>
<paragraph id="ID581676a5790248e9829f3291d734c932"><enum>(1)</enum><header>Applicant</header><text>The
term <term>applicant</term> means any person who has applied for a license
pursuant to this subchapter.</text>
</paragraph><paragraph id="ID64af27817efa44e9b1a9d9373fe3921b"><enum>(2)</enum><header>Bet or
wager</header><text>The term <term>bet or wager</term> has the meaning given
the term in section 5362.</text>
</paragraph><paragraph id="IDc6e66ff289b64a2bbb01d93c1f5e1ca4"><enum>(3)</enum><header>Indian lands
and indian tribe</header><text>The terms <term>Indian lands</term> and
<term>Indian tribe</term> have the meaning given such terms in section 4 of the
Indian Gaming Regulatory Act (25 U.S.C. 2703).</text>
</paragraph><paragraph id="IDd105ff32da034a1588aa907110f1b217"><enum>(4)</enum><header>Internet</header><text>The
term <term>Internet</term> has the same meaning given the term in section
5362.</text>
</paragraph><paragraph id="idA2126B6BF8744104A809EAE67E9ABE50"><enum>(5)</enum><header>Internet game
of skill</header><text>The term <term>Internet game of skill</term> means an
Internet-based game in which success is predominantly determined by the skill
of the players, including poker, chess, bridge, mah-jong, and
backgammon.</text>
</paragraph><paragraph id="idF6827963156146B2B4E6E738431356C3"><enum>(6)</enum><header>Internet
game-of-skill facility</header><text>The term <term>Internet game-of-skill
facility</term> means an Internet site through which a bet or wager is
initiated, received, or otherwise made with respect to an Internet game of
skill, whether transmitted by telephone, Internet, satellite, or other wire or
wireless communication medium.</text>
</paragraph><paragraph id="ID953ffde670204664809ed7936e09d97e"><enum>(7)</enum><header>Licensee</header><text>The
term <term>licensee</term> means a person who operates an Internet
game-of-skill facility under a license issued by the Secretary under this
subchapter.</text>
</paragraph><paragraph id="ID8ecd0493a2e248dc880096652f619476"><enum>(8)</enum><header>Operate an
Internet game-of-skill facility</header><text>The term <term>operate an
Internet game-of-skill facility</term> means to direct, manage, supervise, or
control an Internet game-of-skill facility.</text>
</paragraph><paragraph id="ID680a053ab3464279a7948771c7fd4014"><enum>(9)</enum><header>Poker</header><text>The
term <term>poker</term> means any of several card games—</text>
<subparagraph id="idE1340E9FBDDE4932996D5243D2ABF1BD"><enum>(A)</enum><text>that are commonly
referred to as <quote>poker</quote>;</text>
</subparagraph><subparagraph id="id3DD4B17BDF33460EA5FBF6B26310408B"><enum>(B)</enum><text>that are played
by 2 or more people who bet or wager on cards dealt to them;</text>
</subparagraph><subparagraph id="id124AE683603A417C997032D3237CEC99"><enum>(C)</enum><text>in which players
compete against each other and not against the person operating the game;
and</text>
</subparagraph><subparagraph id="id8816E30B3AAC4BECB14561CFE0F0C56D"><enum>(D)</enum><text>in which the
person operating the game may assess a commission fee or any other type of
fee.</text>
</subparagraph></paragraph><paragraph id="IDd1c6437a60584302b95bff87c15ade67"><enum>(10)</enum><header>Secretary</header><text>The
term <term>Secretary</term> means the Secretary of the Treasury.</text>
</paragraph><paragraph id="ID8c87b61de78e444c90e9ded1a9e4ff97"><enum>(11)</enum><header>Sporting
event</header><text>The term <term>sporting event</term> means any athletic
competition, whether professional, scholastic, or amateur, except that such
term does not include any activity described in section 3704(a)(4) of title
28.</text>
</paragraph><paragraph id="IDc812b2dec86b43a487c9b4bb55963980"><enum>(12)</enum><header>State</header><text>The
term <term>State</term> means any State of the United States, the District of
Columbia, or any commonwealth, territory, or other possession of the United
States.</text>
</paragraph></section><section id="ID5328ee3c580f42479a3c3ffdfb523157"><enum>5382.</enum><header>Establishment
and administration of licensing program</header>
<subsection id="id44C600F82CCA41379088F281F69910E0"><enum>(a)</enum><header>Treasury
responsibilities</header><text>The Secretary shall have responsibility for the
following activities:</text>
<paragraph id="id46763B47BC004218AA4F17AF1600D08E"><enum>(1)</enum><text>Exercising full
regulatory jurisdiction over—</text>
<subparagraph id="idACBCC73B24D94050A172FD04E7ADA720"><enum>(A)</enum><text>the operation of
Internet game-of-skill facilities by licensees; and</text>
</subparagraph><subparagraph id="id07ADB1E564A6441193D18B4FE88363F7"><enum>(B)</enum><text>the licensure of
all applicants.</text>
</subparagraph></paragraph><paragraph id="id8AE2876923AF42F4A5F0CF79F9FD5392"><enum>(2)</enum><text>Prescribing such
regulations as may be necessary to administer and enforce the requirements of
this subchapter.</text>
</paragraph><paragraph id="id46DE3D924F554323826DE635B970E20C"><enum>(3)</enum><text>Employing
enforcement agents with sufficient training and experience to administer the
requirements of this subchapter and the regulations prescribed under this
subchapter.</text>
</paragraph></subsection><subsection id="ID156eba482e5f4279ab0544baf84af42e"><enum>(b)</enum><header>Internet
game-of-skill facility licensing program</header>
<paragraph id="id671DB853C6D1447EB2B49B1B127066CF"><enum>(1)</enum><header>License
required</header><text>It shall be unlawful for a person to operate an Internet
game-of-skill facility in interstate or foreign commerce, in which bets or
wagers are knowingly initiated, received, or otherwise made by individuals
located in the United States, without a license issued to such person by the
Secretary under this subchapter.</text>
</paragraph><paragraph id="id08D17277F2AC4DA3AAE3BE37C6AA0043"><enum>(2)</enum><header>Authority under
valid license</header><text>Notwithstanding any other provision of law and
subject to the provisions of this subchapter, a licensee may accept a bet or
wager with respect to an Internet game of skill from an individual located in
the United States and offer related services.</text>
</paragraph><paragraph id="id5CE42594F48C491FADFB949F28C271C5"><enum>(3)</enum><header>Interstate
off-track wagers</header><text>Notwithstanding anything in this subchapter to
the contrary, a person may accept interstate off-track wagers (as defined by
section 3 of the Interstate Horseracing Act of 1978 (15 U.S.C. 3002)), whether
by telephone, Internet, satellite, or other wire or wireless communication
without need for a license issued pursuant to this subchapter.</text>
</paragraph></subsection><subsection id="ID40ef6f699c33405ebaf127d6012f18a2"><enum>(c)</enum><header>Application for
license</header>
<paragraph id="id9673322E78994814A7FD63ABF8222624"><enum>(1)</enum><header>Application</header><text>A
person seeking a license to operate an Internet game-of-skill facility in
interstate or foreign commerce shall submit to the Secretary an application
therefor in such form and in such manner as the Secretary considers
appropriate.</text>
</paragraph><paragraph id="idDA39CF6A79A9427C836804213E60E29E"><enum>(2)</enum><header>Elements</header><text>Each
application submitted under paragraph (1) shall include such information as the
Secretary considers appropriate, including the following:</text>
<subparagraph id="id6D131DCF22FF44C8A4AFBA30C5F2364F"><enum>(A)</enum><text>Complete
financial information about the applicant.</text>
</subparagraph><subparagraph id="id3AF03E9384BA480FBDB35D2515741B98"><enum>(B)</enum><text>Documentation
showing the corporate structure of the applicant and all related businesses and
affiliates.</text>
</subparagraph><subparagraph id="id964AD51792A54E4587BCE74F99283A37"><enum>(C)</enum><text>The criminal and
credit history of—</text>
<clause id="id977A10C80638401ABF8C114FC19D6E25"><enum>(i)</enum><text>the
applicant;</text>
</clause><clause id="idB5999AB4527F4938B58ECA694F7E92A9"><enum>(ii)</enum><text>each of the
senior executives and directors of the applicant; and</text>
</clause><clause id="id42ED36AB35D34DD19D4E2DD29B13C1EA"><enum>(iii)</enum><text>any other
person who is in control of the applicant.</text>
</clause></subparagraph><subparagraph id="IDc503d706d3bc43f18a792f1ca9ef1734"><enum>(D)</enum><text>A detailed
description of the applicant’s plan for complying with all applicable
regulations prescribed under this subchapter, with particular emphasis on the
applicant’s ability—</text>
<clause id="ID0faa71afeff74ea89c643c90cb69a058"><enum>(i)</enum><text>to prevent
underage play;</text>
</clause><clause id="IDcada5e4e351e41c0a51689b3b6e860c9"><enum>(ii)</enum><text>to protect
compulsive players;</text>
</clause><clause id="ID345ac6c2fb7c425bb300c85ff1af98a6"><enum>(iii)</enum><text>to ensure the
Internet games of skill are being operated fairly; and</text>
</clause><clause id="ID68772a78f1f143d38283ad8a49eed350"><enum>(iv)</enum><text>to comply with
and address any additional concerns identified by the Secretary.</text>
</clause></subparagraph><subparagraph id="idBDF6E091BF0649B18171A3B0337E4670"><enum>(E)</enum><text>A certification
by the applicant that the applicant agrees to be subject to United States
jurisdiction and all applicable United States laws relating to the operation of
an Internet game-of-skill facility and associated activities.</text>
</subparagraph></paragraph></subsection><subsection id="ID27e5c15ce59b4d8c98fbcb6e5083b1b6"><enum>(d)</enum><header>Standards for
license issuance; suitability qualifications and disqualification
standards</header>
<paragraph id="ID61bc1fa923c04221adde0c66e7163d79"><enum>(1)</enum><header>Suitability for
licensing standards</header>
<subparagraph id="IDceb9f810003f4571bcbd29c2a57ef5da"><enum>(A)</enum><header>In
general</header><text>No person shall be eligible to obtain a license unless
the Secretary has determined, upon completion of a background check and
investigation, that the applicant, and any person deemed to be in control of
the applicant, is suitable for licensing.</text>
</subparagraph><subparagraph id="IDfac31fc928a4430b9a78b58c54f8af8b"><enum>(B)</enum><header>Associates of
applicants</header>
<clause id="idF515B7A629A14CD7842D5864061A6CC7"><enum>(i)</enum><header>In
general</header><text>If an applicant is a corporation, partnership, or other
business entity, a background check and investigation 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
Secretary, in the Secretary's sole discretion.</text>
</clause><clause id="id4338F1CDA63F490E8AFB9E0A27C2189F"><enum>(ii)</enum><header>Minimum
determination</header><text>In carrying out clause (i), the Secretary shall, as
a minimum, carry out a background check and investigation of the 5 individuals
receiving the most compensation from the applicant.</text>
</clause></subparagraph></paragraph><paragraph id="ID9bcf536780554aaf93891d48c78a857b"><enum>(2)</enum><header>Suitability for
licensing standards</header><text>For purposes of this subchapter, an applicant
and any other person associated with the applicant, as applicable, is suitable
for licensing if the applicant demonstrates to the Secretary by clear and
convincing evidence that the applicant (or individual associated with the
applicant, as applicable)—</text>
<subparagraph id="ID25147a8167004114a38be079300941d2"><enum>(A)</enum><text>is a person of
good character, honesty, and integrity;</text>
</subparagraph><subparagraph id="ID9eb9d10826764d6f8358852f71340769"><enum>(B)</enum><text>is a person whose
prior activities, reputation, habits, and associations do not—</text>
<clause id="idB378C52C115E4B32B5C05885294C7529"><enum>(i)</enum><text>pose a threat to
the public interest or to the effective regulation and control of Internet
game-of-skill facilities; or</text>
</clause><clause id="idAED3EF99D8F14206B557D14B82D11F60"><enum>(ii)</enum><text>create or
enhance the dangers of unsuitable, unfair, or illegal practices, methods, and
activities in the conduct of Internet game-of-skill facilities or the carrying
on of the business and financial arrangements incidental there to such
facilities;</text>
</clause></subparagraph><subparagraph id="IDa96659f761d14cf287e4821f503ea5a6"><enum>(C)</enum><text>is capable of and
likely to conduct the activities for which the applicant is licensed in
accordance with the provisions of this subchapter and any regulations
prescribed under this subchapter;</text>
</subparagraph><subparagraph id="IDc97425f494f74dec9389133a37c85fc2"><enum>(D)</enum><text>has or guarantees
acquisition of adequate business competence and experience in the operation of
Internet game-of-skill facilities; and</text>
</subparagraph><subparagraph id="ID0621b5d7bdae46f1a97da3c7e5861008"><enum>(E)</enum><text>has or will
obtain sufficient financing for the nature of the proposed operation and from a
suitable source.</text>
</subparagraph></paragraph><paragraph id="ID2e67e9488be743eca508004d27e27421"><enum>(3)</enum><header>Unsuitable for
licensing</header><text>An applicant or any other person may not be determined
to be suitable for licensing within the meaning of this subchapter if the
applicant or such person—</text>
<subparagraph id="IDb1ac91f62a7e40e189f9b938931b16c3"><enum>(A)</enum><text>has failed to
provide information and documentation material to a determination of
suitability for licensing under paragraph (1);</text>
</subparagraph><subparagraph id="ID7723e6aa8c374cc499dd3c9792525696"><enum>(B)</enum><text>has supplied
information which is untrue or misleading as to a material fact pertaining to
any such determination;</text>
</subparagraph><subparagraph id="ID34ef9fb78c89457883a83445fab18ed8"><enum>(C)</enum><text>has been
convicted of an offense punishable by imprisonment of more than 1 year;</text>
</subparagraph><subparagraph id="ID1b74cb77814548a693356c61a91a8d4a"><enum>(D)</enum><text>is delinquent in
filing any applicable Federal or State tax return or in the payment of any
applicable tax, penalty, addition to tax, or interest owed to a jurisdiction in
which the applicant or other person operates or does business;</text>
</subparagraph><subparagraph id="IDe31dbccd679b43fbbca72892a2f32caf"><enum>(E)</enum><text>knowingly accepts
or knowingly has accepted bets or wagers on sporting events from persons
located in the United States in violation of applicable Federal or State law;
or</text>
</subparagraph><subparagraph id="IDa3a108de90be411e9a8a223283904ba1"><enum>(F)</enum><text>has not agreed in
writing to submit to personal jurisdiction in the United States for purposes of
any matter arising from the operation of an Internet game-of-skill facility or
associated activities.</text>
</subparagraph></paragraph><paragraph id="ID2fd9e5060a784625a1ecaa69255ca02a"><enum>(4)</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 throughout the
term of the license.</text>
</paragraph><paragraph id="ID206869838d344e2faf4766f89dfb65b4"><enum>(5)</enum><header>Background
check and investigation</header><text>The Secretary shall establish standards
and procedures for conducting background checks and investigations for purposes
of this subsection.</text>
</paragraph><paragraph id="ID03a9fe3c7f06483fb33efc423ab21e46"><enum>(6)</enum><header>Protection of
the public trust</header><text>The Secretary may take such action as is
necessary to protect the public trust, including the implementation of such
safeguards as may be necessary to ensure that the operation of an Internet
game-of-skill facility licensed under this subchapter is controlled only by
persons who are suitable for licensing.</text>
</paragraph><paragraph id="ID13a6a69f1d06489bbb0d0b57c21c344e"><enum>(7)</enum><header>Enforcement
actions</header>
<subparagraph id="ID6bd63867db9e4f34a7871c1f5ca6cd75"><enum>(A)</enum><header>Determination
of unsuitability for continued licensure</header><text>If the Secretary finds
that an individual owner or holder of a controlling or substantial interest in
a licensee, or of a holding, parent, or intermediary company of a licensee, or
a director, partner, or officer of a licensee is not suitable for licensing,
the Secretary may determine that the licensee is not qualified to continue as a
licensee.</text>
</subparagraph><subparagraph id="IDd795a9b9bf424716bb5697fad8e6755f"><enum>(B)</enum><header>Action to
protect the public interest, including suspension</header><text>If the
Secretary determines that a licensee is not qualified to continue as a
licensee, the Secretary shall propose action the Secretary considers necessary
to protect the public interest, including, if the Secretary considers
necessary, the suspension of the licensee.</text>
</subparagraph><subparagraph id="ID66d06afb03384ca2bfc1f8ab5b06ae64"><enum>(C)</enum><header>Imposition of
conditions including removal of parties</header><text>Notwithstanding a
determination under subparagraph (A), the Secretary may allow a licensee to
continue engaging in licensed activities by imposing conditions on the licensee
under penalty of revocation or suspension of a license, including—</text>
<clause id="ID0a49e671ff8147658c4881c3a5931063"><enum>(i)</enum><text>the
identification of any person determined to be unsuitable for licensing;
and</text>
</clause><clause id="IDa069a4ce817d49f68e01810230beb828"><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></subsection><subsection id="ID828b1968ce8a40fc9ceac66db4e87a99"><enum>(e)</enum><header>Assessments for
administrative expenses</header>
<paragraph id="ID1bc8be2983b2490c84563b8364ff4d69"><enum>(1)</enum><header>User
fees</header>
<subparagraph id="ID6fc6239be7084829baf720794673de2c"><enum>(A)</enum><header>In
general</header><text>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 Secretary against the licensee institution by written notice in
an amount limited to that necessary to meet the Secretary’s expenses in
carrying out such administration, review, or examination to the exclusion of
general overhead and other administrative expenses that are not directly
attributable to that licensee.</text>
</subparagraph><subparagraph id="IDdc61980a73a54ecd917fee6b48c280d1"><enum>(B)</enum><header>Disposition</header><text>Amounts
assessed by the Secretary as user fees under subparagraph (A) shall—</text>
<clause id="ID83578bba28504122a4bb80402b99c88e"><enum>(i)</enum><text>be maintained by
the Secretary solely for use in accordance with clause (ii);</text>
</clause><clause id="ID55b74f32c19d4cb0aad792a1b1590df8"><enum>(ii)</enum><text>be available to
the Secretary to cover expenses incurred by the Secretary in carrying out this
subchapter; and</text>
</clause><clause id="IDf1f59ee9b36746a0909e567fd15f16df"><enum>(iii)</enum><text>not be
construed to be Government funds or appropriated monies, or subject to
apportionment for the purposes of chapter 15 or any other authority.</text>
</clause></subparagraph><subparagraph id="ID5a902644fa0242f28385e2bdf8429957"><enum>(C)</enum><header>Hearing</header><text>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.</text>
</subparagraph><subparagraph id="ID94f2524607854c9caa1f1c1e31adbbfd"><enum>(D)</enum><header>Collection</header>
<clause id="ID37558ce69a61466aaccdec72f6da72f2"><enum>(i)</enum><header>Referral</header><text>If
any licensee fails to pay an assessment under this paragraph after the
assessment has become final, the Secretary may recover the amount assessed by
action in the appropriate United States district court, along with any costs of
collection and attorney fees.</text>
</clause><clause id="IDf8f253d578d94348b60cdf1157d58327"><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 assessment.</text>
</clause></subparagraph></paragraph><paragraph id="ID021ba7e466934d09832a5bd69f53ef72"><enum>(2)</enum><header>Direct and
exclusive obligation of licensee</header><text>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.</text>
</paragraph></subsection><subsection id="IDe5f9e318a2e746deade60aa71c4bc094"><enum>(f)</enum><header>Approval of
license</header><text>The Secretary shall grant licenses under this subchapter
if the applicant meets the criteria established by the Secretary under this
subchapter.</text>
</subsection><subsection id="ID0492a9674f8b4538884362761bcd6017"><enum>(g)</enum><header>Safeguards
required of licensee</header><text>No person shall receive or retain a license
under this section unless the person maintains or requires mechanisms so that
the following requirements, and the standards established under section 5383,
are met with respect to any Internet bet or wager:</text>
<paragraph id="ID2b6af0c6d11b4f4894fed14bb27f2904"><enum>(1)</enum><header>Age</header><text>Appropriate
safeguards reasonably calculated to ensure that the individual placing a bet or
wager is not less than 21 years of age.</text>
</paragraph><paragraph id="ID350cc87003a44bf3999bb527b38195bd"><enum>(2)</enum><header>Location</header><text>Appropriate
safeguards reasonably calculated to ensure that the individual placing a bet or
wager is physically located in a jurisdiction that has not prohibited such bets
or wagers pursuant to section 5385 at the time the bet or wager is
placed.</text>
</paragraph><paragraph id="ID6479988cc144498fb850e045587f3fce"><enum>(3)</enum><header>Collection or
reporting of customer taxes</header><text>Appropriate mechanisms reasonably
calculated to ensure that all taxes relating to Internet games of skill from
persons engaged in bets or wagers relating to such games 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="ID17022296b73440b496ff809e6bb1a224"><enum>(4)</enum><header>Collection or
reporting of taxes of licensee</header><text>Appropriate mechanisms reasonably
calculated to ensure that all taxes relating to the operation of an Internet
game-of-skill 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="ID06f5f921a86d4d92af5219344b40a8bf"><enum>(5)</enum><header>Safeguards
against financial crime</header><text>Appropriate safeguards reasonably
calculated to prevent fraud, money laundering, and terrorist finance.</text>
</paragraph><paragraph id="ID97d2ed95a851438bb6ac26893404bb14"><enum>(6)</enum><header>Safeguards
against compulsive play</header><text>Appropriate safeguards reasonably
calculated to prevent compulsive betting or wagering.</text>
</paragraph><paragraph id="ID79d7c8a70fd44edb92c75e3a8c0a8a97"><enum>(7)</enum><header>Privacy
safeguards</header><text>Appropriate safeguards reasonably calculated to
protect the privacy and security of any person engaged in bets or wagers
relating to Internet games of skill, including customers of the
licensee.</text>
</paragraph><paragraph id="IDea9f8d33a9ea4dd8a3f4c12af43d5cb8"><enum>(8)</enum><header>Payment of
assessments</header><text>Appropriate mechanisms reasonably calculated to
ensure that any assessment under subsection (e) is paid to the
Secretary.</text>
</paragraph><paragraph id="ID06a83d3b19c347ebaa0b9c9c71e6dbf1"><enum>(9)</enum><header>Other
requirements</header><text>Such other requirements as the Secretary may
establish by regulation or order for purposes of this subchapter.</text>
</paragraph></subsection><subsection id="ID3c83872dfc6341659e5cec0f5a0ac7f0"><enum>(h)</enum><header>Term and
renewal of license</header>
<paragraph id="ID6a507d88a423451b8aa9556126298f34"><enum>(1)</enum><header>Term</header><text>Any
license issued under this section shall be issued for a 5-year term beginning
on the date of issuance.</text>
</paragraph><paragraph id="ID45bef3a9b7554877bbf14595dd82a4f9"><enum>(2)</enum><header>Renewal</header><text>Licenses
may be renewed in accordance with requirements prescribed by the Secretary
under this subchapter.</text>
</paragraph></subsection><subsection id="IDfe2278d15e1a4937921fba8ead2acb69"><enum>(i)</enum><header>Revocation or
denial of license</header>
<paragraph id="ID51161a899e664ae5a3454391e0a0250d"><enum>(1)</enum><header>In
general</header><text>Any license granted under this subchapter may be revoked
by the Secretary if—</text>
<subparagraph id="IDc8108f357cf8455181d0a1373b504ec2"><enum>(A)</enum><text>the licensee
fails to comply with any provision of this subchapter; or</text>
</subparagraph><subparagraph id="ID0d2dea5967af42ca896409e28c57d2ed"><enum>(B)</enum><text>the licensee is
determined to be unsuitable within the meaning of this subchapter.</text>
</subparagraph></paragraph><paragraph id="ID8dbc61ccf4b6426fbbf83c9771428748"><enum>(2)</enum><header>Final
action</header><text>Any revocation or denial of a license under paragraph (1)
shall be treated as a final action by the Secretary.</text>
</paragraph></subsection><subsection id="ID79d772942bb944f7a642e063fa570aef"><enum>(j)</enum><header>Administrative
provisions</header>
<paragraph id="IDedff901400584978bfc6de341aa3cf7c"><enum>(1)</enum><header>General powers
of Secretary</header><text>The Secretary shall have the authority to engage in
the following:</text>
<subparagraph id="ID2d72db2c6ca04c9cb17120ed76c82a83"><enum>(A)</enum><text>Investigate the
suitability of each applicant to ensure compliance with this subchapter and
regulations prescribed under this subchapter.</text>
</subparagraph><subparagraph id="ID07488742f44d4b61ad64ca273820e52f"><enum>(B)</enum><text>Require licensees
to maintain appropriate procedures to ensure compliance with this subchapter
and regulations prescribed under this subchapter.</text>
</subparagraph><subparagraph id="ID51e89d48ee774802b12898d24a6a85cf"><enum>(C)</enum><text>Examine any
licensee and any books, papers, records, or other data of licensees relevant to
any recordkeeping or reporting requirements imposed by the Secretary under this
subchapter.</text>
</subparagraph><subparagraph id="IDffaab4605b6945c1a4f0f89c6b7a785c"><enum>(D)</enum><text>When determined
by the Secretary to be necessary, 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 Secretary under this
subchapter, to appear before the Secretary 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.</text>
</subparagraph><subparagraph id="IDd1f9dc3afaff4e5ca38bcea6c34c93f9"><enum>(E)</enum><text>Investigate any
violation of this subchapter, any regulation under this subchapter, and any
other violation of law relating to the operation of an Internet game-of-skill
facility.</text>
</subparagraph><subparagraph id="IDc27099f7a7b444e79bea3ea9bcfa5a17"><enum>(F)</enum><text>Conduct
continuing reviews of applicants and licensees and the operation of Internet
game-of-skill facilities by use of technological means, on-site observation of
facilities, including servers, or other reasonable means to assure compliance
with this subchapter and any regulations under this subchapter.</text>
</subparagraph></paragraph><paragraph id="IDb7d7a0b3ed5a418a871b620bc6ef308a"><enum>(2)</enum><header>Administrative
aspects of summons</header>
<subparagraph id="ID7b38d156ffdf4e14a5e672a39bed31c0"><enum>(A)</enum><header>Production at
designated site</header><text>A summons issued pursuant to this subsection may
require that books, papers, records, or other data stored or maintained at any
place be produced—</text>
<clause id="IDc14d4272b7b7403daa14a2b4fd08c396"><enum>(i)</enum><text>at any business
location of a licensee or applicant for a license;</text>
</clause><clause id="ID81290aef92a7462db8601c7e20de5aed"><enum>(ii)</enum><text>if the licensee
or applicant has been deemed suitable by or is seeking a determination of
suitability from a State or tribal regulatory authority, at any designated
location in that State or tribal land; or</text>
</clause><clause id="IDf4f3d4274f1b47178a4fc2578e17bf83"><enum>(iii)</enum><text>if the licensee
or applicant has been deemed suitable or is seeking a determination of
suitability from the Secretary, at any designated location in the District of
Columbia.</text>
</clause></subparagraph><subparagraph id="ID79e7f4f540a44e17a119933ab5c0ea33"><enum>(B)</enum><header>No liability
for expenses</header><text>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.</text>
</subparagraph><subparagraph id="ID052e6c8a53f54f2f982b005930aa29d9"><enum>(C)</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
the Secretary may prescribe by regulation.</text>
</subparagraph></paragraph><paragraph id="IDee6844f227b142a8a02a4ad5e4979c28"><enum>(3)</enum><header>Contumacy or
refusal</header>
<subparagraph id="IDb0c8820056994d9aa2a5843b6f143d37"><enum>(A)</enum><header>Referral to
attorney general</header><text>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 Secretary to conduct an examination, the Secretary shall refer
the matter to the Attorney General.</text>
</subparagraph><subparagraph id="IDd28f3b62bd2c463e8a395c32f37c6c13"><enum>(B)</enum><header>Jurisdiction of
court</header><text>The Attorney General 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="IDf6fa805b8e74441dbe1711bed1392751"><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="ID955ebc49e844479798c9ede77494b250"><enum>(ii)</enum><text>the person
summoned is an inhabitant; or</text>
</clause><clause id="ID54745f38913046568aa695fb28f28ccc"><enum>(iii)</enum><text>the person
summoned carries on business or may be found.</text>
</clause></subparagraph><subparagraph id="IDb41094ba937a4959aa8c4528a63c6cd5"><enum>(C)</enum><header>Court
order</header><text>The court may issue an order requiring the person summoned
to appear before the Secretary or a delegate of the Secretary—</text>
<clause id="id889A856AAD364027B1C032AB91F4A333"><enum>(i)</enum><text>to produce books,
papers, records, and other data;</text>
</clause><clause id="id9B916380C2BD450FA610A855F95B80B5"><enum>(ii)</enum><text>to give
testimony as may be necessary to explain how such material was compiled and
maintained;</text>
</clause><clause id="idB073932B2A1145438F39134094D9D919"><enum>(iii)</enum><text>to allow the
Secretary to examine the business of a licensee; and</text>
</clause><clause id="idEA9E90BEFA0C476CA63DA2A937F24658"><enum>(iv)</enum><text>to pay the costs
of the proceeding.</text>
</clause></subparagraph><subparagraph id="ID6c77fbb41dd04577851a3a825e59ca0d"><enum>(D)</enum><header>Failure to
comply with order</header><text>Any failure to obey the order of the court may
be punished by the court as a contempt thereof.</text>
</subparagraph><subparagraph id="ID783fbf3f6d52414ba887a31df9779b2b"><enum>(E)</enum><header>Service of
process</header><text>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><subsection id="ID76cdc244a785488a81436d699bccf407"><enum>(k)</enum><header>Civil money
penalties</header>
<paragraph id="IDa22f4776aaae452588c53dcc61d3e17e"><enum>(1)</enum><header>In
general</header><text>The Secretary may assess upon any licensee or other
person subject to the requirements of this subchapter for any willful violation
of this subchapter or any regulation prescribed or order issued under this
subchapter a civil penalty of not more than the greater of—</text>
<subparagraph id="ID0b82ed0411d948dbbf0121454963a19d"><enum>(A)</enum><text>the amount (not
to exceed $100,000) involved in the violation, if any; or</text>
</subparagraph><subparagraph id="ID99340c674a3c422d9ecb4884394f23de"><enum>(B)</enum><text>$25,000.</text>
</subparagraph></paragraph><paragraph id="ID3d5f390e1aca43ba867fd8535ddfb158"><enum>(2)</enum><header>Assessment</header>
<subparagraph id="IDbf14df13521146fdbda2582bc966412d"><enum>(A)</enum><header>Written
notice</header><text>Any penalty imposed under paragraph (1) may be assessed
and collected by the Secretary by written notice.</text>
</subparagraph><subparagraph id="ID3597a2edbc9544879f6b2d263efedb16"><enum>(B)</enum><header>Finality of
assessment</header><text>If, with respect to any assessment under paragraph
(1), a hearing is not requested pursuant to subparagraph (E) within the period
of time allowed under such subparagraph, the assessment shall constitute a
final agency order.</text>
</subparagraph><subparagraph id="IDeb817c049c1b4ae6aa719b5d010c6c15"><enum>(C)</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).</text>
</subparagraph><subparagraph id="IDecce8117771e4aa49518129b8565abf5"><enum>(D)</enum><header>Mitigating
factors</header><text>In determining the amount of any penalty imposed under
paragraph (1), the Secretary shall take into account the appropriateness of the
penalty with respect to—</text>
<clause id="ID1ab9ad0647cd48fc874784eaa93776f8"><enum>(i)</enum><text>the size of the
financial resources and the good faith of the person against whom the penalty
is assessed;</text>
</clause><clause id="IDd2f5bce927de454ab2c3d2a67c8fedd9"><enum>(ii)</enum><text>the gravity of
the violation;</text>
</clause><clause id="IDfa4f4644559d45ac841481d82c299540"><enum>(iii)</enum><text>the history of
previous violations; and</text>
</clause><clause id="ID6faa0362254443948c212049610f6b86"><enum>(iv)</enum><text>such other
matters as justice may require.</text>
</clause></subparagraph><subparagraph id="ID4bbdc5d5c9624358b46288bc8e50cff4"><enum>(E)</enum><header>Hearing</header><text>The
person against whom any penalty is assessed under paragraph (1) shall be
afforded an agency hearing if such person submits a request for such hearing
not later than 20 days after the issuance of the notice of assessment.</text>
</subparagraph><subparagraph id="IDe5c7df0b762140c68adab15219a91670"><enum>(F)</enum><header>Collection</header>
<clause id="ID6ff8d96218f1487bab00bacda12ef9e3"><enum>(i)</enum><header>Referral</header><text>If
any person fails to pay an assessment after any penalty assessed under this
paragraph has become final, the Secretary shall recover the amount assessed by
action in the appropriate United States district court.</text>
</clause><clause id="IDdb59f5d8878b47b387fab72cbf0d20ac"><enum>(ii)</enum><header>Scope of
review</header><text>In any civil action under clause (i), the validity and
appropriateness of the penalty shall be subject to review for abuse of agency
discretion.</text>
</clause></subparagraph><subparagraph id="ID7e3f3f1d75b3401aa9d77988bda21bd6"><enum>(G)</enum><header>Disbursement</header><text>All
penalties collected under authority of this subsection shall be deposited into
the Treasury.</text>
</subparagraph></paragraph><paragraph id="ID8e31b1e379b042aa8a358b2a7079875f"><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><subsection id="IDb81c54f89932468a82f95d5a1c1afd35"><enum>(l)</enum><header>Treatment of
records</header><text>In light of business competition, confidentiality and
privacy concerns, the Secretary shall protect from disclosure information
submitted in support of a license application under this subchapter and
information collected in the course of regulating licensees to the full extent
permitted by sections 552 and 552a of title 5.</text>
</subsection><subsection id="ID91d5e91c18984e969a9d4d9735cb63c7"><enum>(m)</enum><header>Suitability
required for certain service providers</header><text>Any person that knowingly
manages, administers, or controls bets or wagers that are initiated, received,
or otherwise made within the United States or that manages, administers, or
controls the games with which such bets or wagers are associated shall meet all
of the suitability for licensing criteria established under this section in the
same manner and to the same extent as if that person itself were a licensee.
Any failure on the part of such person to remain suitable for licensing may be
grounds for revocation of the license of the licensee for whom such service is
provided, in the same manner and in accordance with subsection (i).</text>
</subsection><subsection id="IDb383bc39ca804fbb9be576fec7f82e40"><enum>(n)</enum><header>Reliance on
State and tribal regulatory body certifications of suitability for
applicants</header>
<paragraph id="IDf7107d21faae42d28a4886277ec90488"><enum>(1)</enum><header>Qualification
of State and tribal regulatory bodies</header>
<subparagraph id="id85587EEECD344B68A43B4501DB686B99"><enum>(A)</enum><header>Application for
determination</header><text>Any State agency that regulates gambling that would
be classified as class III gaming under section 4 of the Indian Gaming
Regulatory Act (25 U.S.C. 2703), or a tribal regulatory body that regulates
class III gaming, may—</text>
<clause id="id037B4EAA42BF49B29A9ABC376C7F8C53"><enum>(i)</enum><text>notify the
Secretary of its willingness to review prospective applicants to certify
whether any such applicant meets the qualifications set forth by this
subchapter; and</text>
</clause><clause id="idEB755A00A11346D0B99C98B658A987EC"><enum>(ii)</enum><text>provide the
Secretary with such documentation as the Secretary determines necessary for the
Secretary to determine whether such State or tribal regulatory body—</text>
<subclause id="id61EAB532FFA24C83B3A8058FB6F3DC5C"><enum>(I)</enum><text>is qualified to
conduct such review; and</text>
</subclause><subclause id="id9F89AB2D5EA14F0D92C3CD6314DFB82D"><enum>(II)</enum><text>may be relied
upon by the Secretary to make any such certification.</text>
</subclause></clause></subparagraph><subparagraph id="IDe238e6b87af54c43b8c28fdb93d6f0d5"><enum>(B)</enum><header>Determination
and notice</header><text>Not later than 60 days after receiving a notice by a
State agency or a tribal regulatory body under subparagraph (A)(i), the
Secretary shall—</text>
<clause id="id02AABD2B70D04AC3BC27E019A06DD38B"><enum>(i)</enum><text>make a
determination as to whether such State or tribal regulatory body—</text>
<subclause id="id71CC9DA62D9C49938482F1FCA1B5315B"><enum>(I)</enum><text>is qualified to
conduct a review of prospective applicants; and</text>
</subclause><subclause id="idA5F5DE37D6E149689BD275C049DC1002"><enum>(II)</enum><text>may be relied
upon to certify whether any such applicant meets the qualifications established
under this subchapter; and</text>
</subclause></clause><clause id="idE0AD6F9CE23B4A7EBF64195EA4E864E8"><enum>(ii)</enum><text>notify such
State or tribal regulatory body of such determination.</text>
</clause></subparagraph></paragraph><paragraph id="id0F83A916253A43D38475BD882031B9C8"><enum>(2)</enum><header>Actions by
qualified authorities</header><text>During the period that any determination of
qualification under paragraph (1)(B) is in effect with respect to any such
State or tribal regulatory body, the State or tribal regulatory body—</text>
<subparagraph id="id1B8D97F841AE4163800F4888D424548D"><enum>(A)</enum><text>may undertake
reviews of any applicant to determine whether it meets the criteria for
suitability for licensing established under this subchapter;</text>
</subparagraph><subparagraph id="id31A301E097A34DFD98D3FB42CB424BCA"><enum>(B)</enum><text>may impose on
each such applicant an administrative fee or assessment for conducting such
review in an amount the regulatory body determines to be necessary to meet its
expenses in the conduct of such review; and</text>
</subparagraph><subparagraph id="idE6BFBA86EA3847949BB2F2529B2BAA86"><enum>(C)</enum><text>shall process and
assess each applicant fairly and equally based on objective criteria,
regardless of any prior licensing of an applicant by the State or tribal
regulatory body.</text>
</subparagraph></paragraph><paragraph id="IDf52c47a427514275af7ae4388c7a6261"><enum>(3)</enum><header>Reliance on
State or tribal certification</header><text>An applicant may provide a
certification of suitability made by a State or tribal regulatory body under
paragraph (2), together with all documentation the applicant has submitted to
such State or tribal regulatory body, to the Secretary, and such certification
and documentation shall be relied on by the Secretary as evidence that the
applicant has met the suitability requirements under this section.</text>
</paragraph><paragraph id="ID6a6d2dea08f244b79ac2996ecee81d50"><enum>(4)</enum><header>Authority of
Secretary to review</header><text>Notwithstanding any certification of
suitability made by a State or tribal regulatory body, the Secretary retains
the authority to review, withhold, or revoke a license if the Secretary has
reason to believe that an applicant or licensee does not meet the suitability
requirements established under this section or any other requirement of a
licensee.</text>
</paragraph><paragraph id="IDbb7e7691141d42c5a5ceb58897bde3ed"><enum>(5)</enum><header>Reliance on
qualified regulatory body for other purposes</header><text>At the discretion of
the Secretary, the Secretary may rely on a State and tribal regulatory body
found qualified under this subsection for such other regulatory and enforcement
activities as the Secretary finds to be useful and appropriate to carry out the
purposes of this subchapter.</text>
</paragraph><paragraph id="ID1adb0dac296844f486334a845b07e57b"><enum>(6)</enum><header>Revocation of
qualification</header><text>The Secretary may revoke, at any time and for any
reason, the qualification of a State or tribal regulatory body to certify or to
conduct any other regulatory or enforcement activity to carry out the purposes
of this subchapter.</text>
</paragraph><paragraph id="ID94fab56c6b0848c49f9bb4cdf75cc1d5"><enum>(7)</enum><header>Limitation</header><text>The
Secretary may not rely upon a State or tribal regulatory body for purposes of
this subchapter unless the Secretary determines that the regulations and
procedures of such State or tribal regulatory body for the review of an
applicant’s suitability for a license under this subchapter are no less
stringent than the regulations and procedures established by the Secretary for
such purpose.</text>
</paragraph></subsection></section><section id="IDda0376dbbedc4c6b88236057ddf9d350"><enum>5383.</enum><header>Compulsive
Gaming, Responsible Gaming, and Self-Exclusion Program</header>
<subsection id="IDb49a784e3b3446e4b3b7d50d8f6e9af3"><enum>(a)</enum><header>Regulations
required</header><text>The Secretary and any State or tribal regulatory body
that has been qualified under section 5382(n) shall prescribe regulations for
the development of a Compulsive Gaming, Responsible Gaming, and Self-Exclusion
Program on the basis of standards that each licensee shall implement as a
condition of licensure.</text>
</subsection><subsection id="IDa2d861283381433bb215278ba08248db"><enum>(b)</enum><header>Minimum
requirements</header><text>An application for a license shall include a
submission to the Secretary, qualified State, or tribal regulatory body setting
forth a comprehensive program that is reasonably calculated—</text>
<paragraph id="ID778cd01e2bd541fda4ab2d01a01646e8"><enum>(1)</enum><text>to verify the
identity and age of each customer;</text>
</paragraph><paragraph id="ID984d4bdf4db44721aad7ad9c3ce52bb3"><enum>(2)</enum><text>to ensure that no
customers under the age of 21 may initiate or otherwise make any bets or
wagers;</text>
</paragraph><paragraph id="ID43f8de671b144caaab1a559b8eb6cd75"><enum>(3)</enum><text>to verify the
State or tribal land in which the customer is located at the time the customer
attempts to initiate a bet or wager;</text>
</paragraph><paragraph id="ID21c8d978d13a4ee99bcabba61b88d3d1"><enum>(4)</enum><text>to ensure that no
customer who is located in a State or tribal land that opts out pursuant to
section 5385 can initiate or otherwise make a bet or wager prohibited by such
opt-out;</text>
</paragraph><paragraph id="ID3e376dc712c842f298fd53b12695b2dc"><enum>(5)</enum><text>to ensure that
responsible gaming materials are made available to customers upon
request;</text>
</paragraph><paragraph id="ID5f75831a955a4251a498a20a42f4e9e7"><enum>(6)</enum><text>to make available
individualized responsible gaming options that any customer may choose,
including stake limit, loss limit, deposit limit, and session time limit
option, and other similar options that the Secretary or qualified State or
tribal regulatory body may deem appropriate and require to be made
available;</text>
</paragraph><paragraph id="ID238e55a0b9fa4af7906fcda3c279595e"><enum>(7)</enum><text>to prevent
persons on the list of self-excluded persons established pursuant to subsection
(c) from initiating any bets or wagers;</text>
</paragraph><paragraph id="ID8bf36ba880b64a16900adcbc5cd6f825"><enum>(8)</enum><text>to protect the
privacy and security of any customer in connection with any lawful activity
relating to the operation of an Internet game-of-skill facility; and</text>
</paragraph><paragraph id="ID9dbe02484c704cfb8aa823014a6c2633"><enum>(9)</enum><text>to protect
against fraud and money laundering relating to the operation of an Internet
game-of-skill facility.</text>
</paragraph></subsection><subsection id="IDb880975a1b604b29b0547598818bd168"><enum>(c)</enum><header>List of persons
self-excluded from gaming activities</header>
<paragraph id="id0C6E65EC657C40AAA393ED395EA1F48B"><enum>(1)</enum><header>Establishment</header>
<subparagraph id="ID7370c475183f4b81a83a613b2f8b257a"><enum>(A)</enum><header>In
general</header><text>The Secretary shall provide by regulation for the
establishment of a list of persons self-excluded from gaming activities at all
licensee sites.</text>
</subparagraph><subparagraph id="id8A3AC4D5B6FA4E77989A66707DCADA87"><enum>(B)</enum><header>Placement
request</header><text>Any person may request placement on the list of
self-excluded persons by—</text>
<clause id="id6D0E864D473E4CF98025731CC87E03A0"><enum>(i)</enum><text>acknowledging in
a manner to be established by the Secretary that the person wishes to be denied
gaming privileges; and</text>
</clause><clause id="idB721177BEE4E441A96D7F10FDF88C7F2"><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
licensee sites.</text>
</clause></subparagraph></paragraph><paragraph id="ID2b737a710b4e4bfe80f2267fde81c07d"><enum>(2)</enum><header>Placement and
removal procedures</header><text>The regulations of the Secretary under
paragraph (1)(A) shall establish procedures for placements on, and removals
from, the list of self-excluded persons.</text>
</paragraph><paragraph id="idF868453756754E1882B40815828B5D25"><enum>(3)</enum><header>Limitation on
liability</header>
<subparagraph id="IDba7b19cbf62b4c5c8d728137fdad557f"><enum>(A)</enum><header>In
general</header><text>The United States, the Secretary, an enforcement agent,
and a licensee, and 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="ID682fcdc6137e410fad7825e4731e99a8"><enum>(i)</enum><text>any failure to
withhold gaming privileges from, or to restore gaming privileges to, a
self-excluded person; or</text>
</clause><clause id="ID4fb49f3dfb884a00be74b08fbbaa029e"><enum>(ii)</enum><text>otherwise
permitting a self-excluded person to engage in gaming activity while on the
list of self-excluded persons.</text>
</clause></subparagraph><subparagraph id="idF8A0AC69DF0643499C0984C9F084F99F"><enum>(B)</enum><header>Rule of
construction</header><text>No provision of subparagraph (A) shall be construed
as preventing the Secretary from assessing any regulatory sanction against a
licensee for failing to comply with the minimum standards prescribed pursuant
to this subsection.</text>
</subparagraph></paragraph><paragraph id="ID236ceed457bc4e3ca2ef5af5cc3aaad4"><enum>(4)</enum><header>Disclosure
provisions</header>
<subparagraph id="id317FC9CDD72C4172A6CBE58D4547948D"><enum>(A)</enum><header>In
general</header><text>Notwithstanding any other provision of Federal or State
law, the list of self-excluded persons shall not be open to public
inspection.</text>
</subparagraph><subparagraph id="id90B403490DD44FADBA601A0C6C5CA912"><enum>(B)</enum><header>Affiliate
disclosure</header><text>Any licensees may disclose the identities of persons
on the self excluded list to any affiliated company or, where required to
comply with this subsection, service provider, to the extent that the
affiliated company or service provider maintains such information under
confidentiality provisions comparable to those in this subsection.</text>
</subparagraph></paragraph><paragraph id="IDa732cd3dd6b84b80a411adc0b5cb0462"><enum>(5)</enum><header>Limitation on
liability for disclosure</header><text>A licensee and an employee, agent, or
affiliate of a licensee shall not be liable to any self-excluded person or to
any other party in any judicial proceeding for any harm, monetary or otherwise,
which may arise as a result of disclosure or publication in any manner.</text>
</paragraph></subsection><subsection id="IDb84a6a32cb244a609adb56fbcc7d274a"><enum>(d)</enum><header>Gaming by
prohibited persons</header>
<paragraph id="IDc0bfe2c0ac234a1095283b5282d12b32"><enum>(1)</enum><header>Prohibition
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 or
any court of competent jurisdiction, including any person on the self-exclusion
list in accordance with 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="ID794e52efe461471a9e7c9cc989dafac8"><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 shall be subject to
forfeiture by order of the Secretary, following notice to the prohibited person
and opportunity to be heard.</text>
</paragraph><paragraph id="ID7e6854385a08435bad02113299d9f6c2"><enum>(3)</enum><header>Deposit of
forfeited funds</header><text>Any funds forfeited pursuant to this subsection
shall be deposited into the Treasury.</text>
</paragraph></subsection><subsection id="ID0d4fb038dcc74295bfdb42d23dc703ea"><enum>(e)</enum><header>Compulsive
players not on the list of self-Excluded persons</header>
<paragraph id="ID95752a68fdf84f44a0a950f137aa1660"><enum>(1)</enum><header>Public
awareness program</header>
<subparagraph id="idEFE9FAB7695540A8BD2ADB8AA1E51737"><enum>(A)</enum><header>In
general</header><text>The Secretary and any State or tribal regulatory body
that has been qualified under section 5382(n) shall provide by regulation for
the establishment of a program to alert the public to the existence,
consequences, and availability of the self-exclusion list, and shall prepare
and promulgate written materials to be used in such a program.</text>
</subparagraph><subparagraph id="id74A3A279A9D340C9BCB4B8D64B297D69"><enum>(B)</enum><header>Licensee-provided
publicity</header><text>Regulations prescribed under subparagraph (A) may
require a licensee to make available literature or screen displays relating to
the existence of the program.</text>
</subparagraph></paragraph><paragraph id="IDd00b4b06448745c291f8a2a85d86a220"><enum>(2)</enum><header>Rule of
construction</header><text>No provision of this subsection shall be construed
as creating a legal duty in the Secretary, a qualified State or tribal
regulatory body, a licensee, or any representative of a licensee to identify or
to exclude compulsive players not on the list of self-excluded persons.</text>
</paragraph><paragraph id="ID7f552ddfb1324a42a70317f026a84819"><enum>(3)</enum><header>Immunity</header><text>The
United States, the Secretary, a qualified State or tribal regulatory body, 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="ID004a03aec4a64f8291528cf3ae2e448e"><enum>5384.</enum><header>Financial
transaction providers</header>
<subsection id="IDe78e349904ea4a98875f430cdf411a2b"><enum>(a)</enum><header>In
general</header><text>No financial transaction provider shall be held liable
for engaging in financial activities or transactions, including payments
processing activities, in connection with any bets or wagers permitted by this
subchapter or the Interstate Horseracing Act of 1978 (15 U.S.C. 3001 et seq.)
unless such financial transaction provider has knowledge or reason to know that
the specific financial activities or transactions are conducted in violation of
this subchapter, the Interstate Horseracing Act, or other applicable provision
of Federal or State law.</text>
</subsection><subsection id="ID48d784693c1a4561893a43bb5ec72b16"><enum>(b)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="ID6aaaa94c5c5149b991986e6f09dc1c73"><enum>(1)</enum><header>Financial
transaction provider</header><text>The term <term>financial transaction
provider</term> means a creditor, credit card issuer, financial institution,
operator of a terminal at which an electronic fund transfer may be initiated,
money transmitting business, or international, national, regional, or local
payment network utilized to effect a credit transaction, electronic fund
transfer, stored value product transaction, or money transmitting service, or a
participant in such network, or other participant in a payment system.</text>
</paragraph><paragraph id="ID7fb0e22df5f24ee5839e43628e4f91b2"><enum>(2)</enum><header>Other
terms</header>
<subparagraph id="IDac87cb63e5a94b29a237bd80ffb0f1df"><enum>(A)</enum><header>Credit,
creditor, credit card, and card issuer</header><text>The terms
<term>credit</term>, <term>creditor</term>, <term>credit card</term>, and
<term>card issuer</term> have the meanings given the terms in section 103 of
the Truth in Lending Act (15 U.S.C. 1602).</text>
</subparagraph><subparagraph id="IDdc3ed34877dd41b0974af202aac65dbf"><enum>(B)</enum><header>Electronic fund
transfer</header><text>The term <term>electronic fund transfer</term>—</text>
<clause id="ID4572f633935648c88d7322fda8c68b1f"><enum>(i)</enum><text>has the meaning
given the term in section 903 of the Electronic Fund Transfer Act (15 U.S.C.
1693a), except that the term includes transfers that would otherwise be
excluded under section 903(6)(E) of such Act; and</text>
</clause><clause id="ID8726842d049f43db815c9cd608796135"><enum>(ii)</enum><text>includes any
fund transfer covered by Article 4A of the Uniform Commercial Code, as in
effect in any State.</text>
</clause></subparagraph><subparagraph id="ID9ea32d2bbd6546b180439dbbb687222f"><enum>(C)</enum><header>Financial
institution</header><text>The term <term>financial institution</term> has the
meaning given the term in section 903 of the Electronic Fund Transfer Act (15
U.S.C. 1963a), except that such term does not include a casino, sports book, or
other business at or through which bets or wagers may be placed or
received.</text>
</subparagraph><subparagraph id="ID7c57eac1a77a4f858283b52e3399a756"><enum>(D)</enum><header>Insured
depository institution</header><text>The term <term>insured depository
institution</term>—</text>
<clause id="ID9b94dc0e69444bcfa2769e0418117e0e"><enum>(i)</enum><text>has the meaning
given the term in section 3(c) of the Federal Deposit Insurance Act (12 U.S.C.
1813(c)); and</text>
</clause><clause id="IDc2e052a1ded149cf90d093ca2590af8c"><enum>(ii)</enum><text>includes an
insured credit union (as defined in section 101 of the Federal Credit Union Act
(12 U.S.C. 1752)).</text>
</clause></subparagraph><subparagraph id="ID24d76456011445a899986e43888e42ed"><enum>(E)</enum><header>Money
transmitting business and money transmitting service</header><text>The terms
<term>money transmitting business</term> and <term>money transmitting
service</term> have the meanings given the terms in section 5330(d) (determined
without regard to any regulations prescribed by the Secretary under such
section).</text>
</subparagraph></paragraph></subsection></section><section id="ID87eb4a5af2a048ddbf58b9765764577a"><enum>5385.</enum><header>Limitation on
licenses in States and Indian lands</header>
<subsection id="ID87e0247d258a49e29da5d3d1de56d8f6"><enum>(a)</enum><header>State opt-Out
exercise</header>
<paragraph id="IDf23753a275fd438888dac9563e84f4d5"><enum>(1)</enum><header>Limitations
imposed by States</header>
<subparagraph id="id9E8D8F0FC33A4F908BA13B944F74245F"><enum>(A)</enum><header>In
general</header><text>No licensee may knowingly accept a bet or wager, under a
license issued pursuant to this subchapter, initiated by a person who is
located in any State which provides notice that it will limit such bets or
wagers, if the Governor or other chief executive officer of such State informs
the Secretary of such limitation before the end of the 90-day period beginning
on the date of the enactment of the <short-title>Internet
Poker and Game of Skill Regulation, Consumer Protection, and Enforcement Act of
2009</short-title>, or in accordance with paragraph (2), until such time as
notice of any repeal of such limitation becomes effective under paragraph
(2).</text>
</subparagraph><subparagraph id="idDD5903856D2543219CC7E73B46DD80B1"><enum>(B)</enum><header>Coordination
between State and tribal opt-out exercises</header><text>Any State limitation
under Subparagraph (A) shall not apply to the acceptance by a licensee of bets
or wagers from persons located within the tribal lands of an Indian tribe
that—</text>
<clause id="idA60866A2CC2642CBAD2B62239A755B9A"><enum>(i)</enum><text>has itself not
chosen to opt out pursuant to subsection (b); or</text>
</clause><clause id="id69404BAA2DF042C28B9F4AB8C2DEEF1C"><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></paragraph><paragraph id="IDc33b71cc146b4867b23f7eafbcdaaeab"><enum>(2)</enum><header>Changes to
State limitations</header><text>The establishment or repeal by any State of any
limitation referred to in paragraph (1) after the end of the 90-day period
beginning on the date of the enactment of this subchapter shall apply, for
purposes of this subchapter, beginning on the first January 1 that occurs after
the end of the 60-day period beginning on the later of—</text>
<subparagraph id="IDd61b9d49dc0d422693944e3c42d85aa3"><enum>(A)</enum><text>the date a notice
of such establishment or repeal is provided by the Governor or other chief
executive officer of such State in writing to the Secretary; or</text>
</subparagraph><subparagraph id="ID697878c4170c41eba16a5c49e162949b"><enum>(B)</enum><text>the effective
date of such establishment or repeal.</text>
</subparagraph></paragraph><paragraph id="ID7e0bd5cb0a1047fabaf4726e2edeb151"><enum>(3)</enum><header>Existing State
law</header><text>No provision of State law enacted prior to the
<short-title>Internet Poker and Game of Skill Regulation,
Consumer Protection, and Enforcement Act of 2009</short-title> shall be
construed to require a State to provide notice pursuant to this
subsection.</text>
</paragraph></subsection><subsection id="IDa9985dc9dfda4bc9883dedfd6ef3bf08"><enum>(b)</enum><header>Indian tribe
opt-Out exercise</header>
<paragraph id="IDa5680171945749e99d5862b6b6d033b3"><enum>(1)</enum><header>Limitations
imposed by indian tribes</header><text>No licensee may knowingly accept a bet
or wager, under a license issued pursuant to this subchapter, that is initiated
by a person who is located in the tribal lands of any Indian tribe which limits
such bets or wagers if the principal chief or other chief executive officer of
such Indian tribe informs the Secretary of such limitation before the end of
the 90-day period beginning on the date of the enactment of the
<short-title>Internet Poker and Game of Skill Regulation,
Consumer Protection, and Enforcement Act of 2009</short-title>, or in
accordance with paragraph (2), until such time as notice of any repeal of such
limitation becomes effective under paragraph (2).</text>
</paragraph><paragraph id="IDb430dbc4569946a3ae5f67321af90c4a"><enum>(2)</enum><header>Changes to
indian tribe limitations</header><text>The establishment or repeal by any
Indian tribal government of the limitation referred to in paragraph (1) after
the end of the 90-day period beginning on the date of the enactment of this
subchapter shall apply, for purposes of this subchapter, beginning on the first
January 1 that occurs after the end of the 60-day period beginning on the later
of—</text>
<subparagraph id="ID9d508128786349a59cc66041a510a9e2"><enum>(A)</enum><text>the date a notice
of such establishment or repeal is provided by the principal chief or other
chief executive officer of such Indian tribal government in writing to the
Secretary; or</text>
</subparagraph><subparagraph id="IDfded7f65cf9343a6ae10dfb88952158d"><enum>(B)</enum><text>the effective
date of such establishment or repeal.</text>
</subparagraph></paragraph><paragraph id="ID474c748243b6461d997a0a7e274d909e"><enum>(3)</enum><header>Existing tribal
law</header><text>No provision of tribal law enacted prior to the
<short-title>Internet Poker and Game of Skill Regulation,
Consumer Protection, and Enforcement Act of 2009</short-title> shall be
construed to require an Indian tribal government to provide notice pursuant to
this subsection.</text>
</paragraph></subsection><subsection id="IDfd0b402337074ffbb2c6bf3a8fb09049"><enum>(c)</enum><header>Notification
and enforcement of State and indian tribe limitations</header>
<paragraph id="ID931df1f35e7449eb90e85335f8196194"><enum>(1)</enum><header>In
general</header><text>The Secretary shall notify all licensees and applicants
of all States and Indian tribes that have provided notice pursuant to paragraph
(1) or (2) of subsection (a) or (b), as the case may be, promptly upon receipt
of such notice and in no event later than 30 days before the effective date of
such notice.</text>
</paragraph><paragraph id="ID701f29c9f33f4c44b11e8076b58c6c47"><enum>(2)</enum><header>Compliance</header><text>The
Secretary shall take effective measures to ensure that any licensee under this
subchapter, as a condition of the license, complies with any limitation imposed
by any State or Indian tribe to which the licensee is subject under subsection
(a) or (b), as the case may be.</text>
</paragraph><paragraph id="IDafa5589e1a2546a185943dec2d454a9f"><enum>(3)</enum><header>Violations</header><text>It
shall be a violation of this subchapter for any licensee knowingly to accept a
bet or wager initiated or otherwise made by a person located at the time of
such bet or wager within any State or in the tribal lands of any Indian tribe
for which a notice is in effect under subsection (a) or (b), as the case may
be.</text>
</paragraph><paragraph id="IDfbad0682b87d41568f248ae6b4a879c2"><enum>(4)</enum><header>State attorney
general enforcement</header><text>In any case in which the attorney general or
other chief law enforcement officer of a State or any State or local law
enforcement agency, authorized by the attorney general or other chief law
enforcement officer of the State or by State statute to prosecute violations of
consumer protection law, has reason to believe that an interest of the
residents of that State has been or is threatened or adversely affected by a
violation by a licensee pursuant to paragraph (2), the State, or the State or
local law enforcement agency, on behalf of the residents of the agency's
jurisdiction, may bring a civil action on behalf of the residents of that State
or jurisdiction in a district court of the United States located
therein—</text>
<subparagraph id="ID5f66da690e334cc39868ccdd13e61add"><enum>(A)</enum><text>to enjoin that
practice; or</text>
</subparagraph><subparagraph id="IDb8a62c218007466eacb3b6b7602de41d"><enum>(B)</enum><text>to enforce
compliance with this subchapter.</text>
</subparagraph></paragraph></subsection><subsection id="ID4c4113df5e9f4ed284cb7d6d9dee5413"><enum>(d)</enum><header>No impact on
Indian Gaming Regulatory Act</header><text>No decision by a State pursuant to
this section shall be considered in determining the ability of an Indian tribe
to offer any class of gambling activity pursuant to section 11 of the Indian
Gaming Regulatory Act (25 U.S.C. 2710) or any successor provisions.</text>
</subsection></section><section id="IDce5ef4e0fec844009120d24fae4bf2f9"><enum>5386.</enum><header>Prohibition
on bets or wagers on games of chance and sporting events</header>
<subsection id="id5A940FBF4F634079B1BE8A4A89BC655D"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">No provision of this
subchapter shall be construed to authorize any licensee to accept a bet or
wager knowingly from a person located in the United States on—</text>
<paragraph id="IDbe791aabfc80482c91df5ad8b8dd1861"><enum>(1)</enum><text>any game that is
not an Internet game of skill; or</text>
</paragraph><paragraph id="IDf2c3f4790e0d4af48e8e75bfd45581a3"><enum>(2)</enum><text>any sporting
event in violation of section 3702 of title 28 or of any other applicable
provision of State or Federal law.</text>
</paragraph></subsection><subsection id="id3D66F1F29E2046BBA4189E12444B1623"><enum>(b)</enum><header>Construction</header><text>Nothing
in this subchapter shall be construed to repeal or to amend any provision of
State or Federal law prohibiting, restricting, or otherwise addressing bets or
wagers on sporting events.</text>
</subsection></section><section id="ID7782b677b2e34b82b439fcc5dec1deea"><enum>5387.</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 or State 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—</text>
<paragraph id="id1005AF1B840A4F2487E4AF419FF412D4"><enum>(1)</enum><text display-inline="yes-display-inline">this subchapter; or</text>
</paragraph><paragraph id="idC68B46B2E4F544248A2DF4BDFE286071"><enum>(2)</enum><text display-inline="yes-display-inline">the Interstate Horseracing Act of 1978 (15
U.S.C. 3001 et seq.).</text>
</paragraph></section><section id="IDfbd15305501e4ed0875e76ce5bb14bb2"><enum>5388.</enum><header>Relation to
section 1084 of title 18 and subchapter IV of this title</header><text display-inline="no-display-inline">Section 1084 of title 18 and subchapter IV
of this chapter shall not apply to any bet or wager—</text>
<paragraph id="idAD0BD5A0B9B649FC85D1D2256F450997"><enum>(1)</enum><text display-inline="yes-display-inline">occurring pursuant to a license issued by
the Secretary under this subchapter, subject to section 5386; or</text>
</paragraph><paragraph id="id2C8441E989B14F639B0A858A0B4D9AD6"><enum>(2)</enum><text display-inline="yes-display-inline">that is permissible under the Interstate
Horseracing Act of 1978 (15 U.S.C. 3001 et seq.).</text>
</paragraph></section><section id="idB3595FCF96D7405684A6007DF047E054"><enum>5389.</enum><header>Cheating and
other fraud</header>
<subsection id="ID91dd9b31c81e4d0d822a6d4fab691910"><enum>(a)</enum><header>Electronic
cheating devices 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 use, or assist another in the use of, an electronic, electrical, or
mechanical device which is designed, constructed, or programmed specifically
for use in obtaining an advantage in any game authorized under this subchapter,
where such advantage is prohibited or otherwise violates the rules of play
established by the licensee.</text>
</subsection><subsection id="IDc2dfaba7c3da4c0083964a1098a7e216"><enum>(b)</enum><header>Additional
offense</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 use or possess
any cheating device with intent to cheat or defraud any licensee or other
persons placing bets or wagers with such licensee.</text>
</subsection><subsection id="IDcbe069cdae5d46f5866d74e166d8a109"><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="ID8c2df920b9434efe9537499986bcba25"><enum>(d)</enum><header>Criminal
penalty</header><text>Whoever violates subsection (a) or (b) shall be fined
under title 18 or imprisoned for not more than 5 years, or both.</text>
</subsection></section><section id="id718676AB4DD34130B406B1933DC6A41F"><enum>5390.</enum><header>Construction
and relation to State law</header>
<subsection id="IDacd7d028942d47cbbcc6fd28c8b4f497"><enum>(a)</enum><header>No impact on
existing lawful games</header>
<paragraph id="id947098E3EEFD40DDB65459FEEFD01220"><enum>(1)</enum><header>In
general</header><text>If certain games of skill are not regarded as gambling
under an applicable provision of State or Federal law in effect as of the
effective date of the enactment of the <short-title>Internet Poker and Game of Skill Regulation, Consumer
Protection, and Enforcement Act of 2009</short-title>—</text>
<subparagraph id="idE32DCEA074DC41EF8A9CB1051297E66C"><enum>(A)</enum><text>nothing in this
subchapter shall be construed to require licensing under this subchapter with
respect to such games; and</text>
</subparagraph><subparagraph id="id7E921EF33114492B80B3679C4573C3C3"><enum>(B)</enum><text>fees paid to
participate in such games shall not be regarded as bets or wagers for purposes
of this subchapter.</text>
</subparagraph></paragraph><paragraph id="idF485BA742E164CCDBEEC9EE45503350C"><enum>(2)</enum><header>Reliance</header><text>Nothing
in this subchapter 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 subchapter.</text>
</paragraph></subsection><subsection id="IDcf51e835c2b746dcab1bf8deb2421392"><enum>(b)</enum><header>Public gaming
facilities not authorized</header>
<paragraph id="idF26E06A6AF894C0F863EFC2B7E54C3F9"><enum>(1)</enum><header>In
general</header><text>Nothing in this subchapter 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 for the
primary purpose of allowing the public or members access to Internet bets or
wagers.</text>
</paragraph><paragraph id="id2D3FAA9294574F728B8C627B003D0BED"><enum>(2)</enum><header>Assumed public
gaming facilities</header><text>Any place of public accommodation, club, or
similar establishment in which large numbers of computer terminals or similar
access devices are made available that are used principally for the purpose of
Internet bets or wagers shall be considered a place of public accommodation,
club, or similar establishment operated for the primary purpose of allowing the
public or members access to Internet bets or wagers under subparagraph
(A).</text>
</paragraph><paragraph id="id19B9088D123C49B4BD3FA2F8449FAB90"><enum>(3)</enum><header>Relation to
State law</header><text>Places of public accommodation, clubs, or similar
establishments described in this subsection shall be subject to all otherwise
applicable State, tribal, and local police zoning and other regulatory powers,
which are not intended to be limited in any way by this subchapter.</text>
</paragraph></subsection><subsection id="ID8325a3f3700a4115a47325adb74ac1a4"><enum>(c)</enum><header>Interstate
off-Track wagers</header><text>The provisions of this subchapter restricting
acceptance of bets or wagers made by individuals located in the United States
or requiring the blocking or other prevention of restricted transactions shall
not apply with respect to the acceptance of interstate off-track wagers (as
such term is defined by section 3 of the Interstate Horseracing Act of 1978, as
amended (15 U.S.C. 3002)), whether such off-track wager is made by telephone,
Internet, satellite, or other wire or wireless
communication.</text>
</subsection></section></subchapter><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID1b7ff9a5822d4852903e1d32bdc7908d"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of sections for chapter 53 of title 31,
United States Code, is amended by adding at the end the following:</text>
<quoted-block id="id33206762-02c2-4b22-88c0-79aaa6961589" style="USC">
<toc>
<toc-entry idref="idD25A218DB9754672A0370297598999CD" level="subchapter">SUBCHAPTER V—Regulation of Internet game-of-skill
facilities</toc-entry>
<toc-entry level="section">Sec. </toc-entry>
<toc-entry idref="ID36dd1a4acf8d4de5afe809421d89b895" level="section">5381. Definitions.</toc-entry>
<toc-entry idref="ID5328ee3c580f42479a3c3ffdfb523157" level="section">5382. Establishment and administration of licensing
program.</toc-entry>
<toc-entry idref="IDda0376dbbedc4c6b88236057ddf9d350" level="section">5383. Compulsive Gaming, Responsible Gaming, and Self-Exclusion
Program.</toc-entry>
<toc-entry idref="ID004a03aec4a64f8291528cf3ae2e448e" level="section">5384. Financial transaction providers.</toc-entry>
<toc-entry idref="ID87eb4a5af2a048ddbf58b9765764577a" level="section">5385. Limitation on licenses in States and Indian
lands.</toc-entry>
<toc-entry idref="IDce5ef4e0fec844009120d24fae4bf2f9" level="section">5386. Prohibition on bets or wagers on games of chance and
sporting events.</toc-entry>
<toc-entry idref="ID7782b677b2e34b82b439fcc5dec1deea" level="section">5387. Safe harbor.</toc-entry>
<toc-entry idref="IDfbd15305501e4ed0875e76ce5bb14bb2" level="section">5388. Relation to section 1084 of title 18 and subchapter IV of
this title.</toc-entry>
<toc-entry idref="idB3595FCF96D7405684A6007DF047E054" level="section">5389. Cheating and other fraud.</toc-entry>
<toc-entry idref="id718676AB4DD34130B406B1933DC6A41F" level="section">5390. Construction and relation to State
law.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="ID87b4363f1c7248d49252195f83123279"><enum>103.</enum><header>List of
unlawful Internet gambling enterprises</header>
<subsection id="IDc916b56466214346972d1823b4e6aa71"><enum>(a)</enum><header>In
general</header><text>Subchapter IV of chapter 53 of title 31, United States
Code, is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id9F219EFEFB33492B982046552A0901ED" style="USC">
<section id="ID1bfbd3c71262458e882d8799ead8379f"><enum>5368.</enum><header>List of
unlawful Internet gambling enterprises</header>
<subsection id="IDb614feb8ec154637843eb8112d6b2f0e"><enum>(a)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="ID2c7279eefd1d4096a4e194a414d0b2db"><enum>(1)</enum><header>Unlawful
Internet gambling enterprise</header><text>The term <term>unlawful Internet
gambling enterprise</term> means any person who, more than 10 days after the
date of the enactment of this section—</text>
<subparagraph id="IDdb6fe5f3c596451fa6ee54f81876b3c5"><enum>(A)</enum><text>violates a
provision of section 5363;</text>
</subparagraph><subparagraph id="ID07dce5f9ce1048aaa36f42bc596c5ac8"><enum>(B)</enum><text>knowingly
receives or transmits funds intended primarily for a person described in
subparagraph (A); or</text>
</subparagraph><subparagraph id="ID5434d56d11a2434593542f73a10a8458"><enum>(C)</enum><text>knowingly assists
in the conduct of a person described in subparagraph (A) or (B).</text>
</subparagraph></paragraph><paragraph id="ID1070e585d36e4a6d80a6204573850505"><enum>(2)</enum><header>Director</header><text>The
term <term>Director</term> means the Director of the Financial Crimes
Enforcement Network appointed under section 310(b).</text>
</paragraph></subsection><subsection id="ID40135866a6dd4ba18638766b86a57eb9"><enum>(b)</enum><header>List of
unlawful Internet gambling enterprises</header>
<paragraph id="ID416b260fbc124ee290ab5c829d32b37e"><enum>(1)</enum><header>In
general</header><text>Not later than 120 days after the date of the enactment
of this section, the Director shall submit to the Secretary a list of unlawful
Internet gambling enterprises and shall regularly update such list in
accordance with the procedures described in paragraph (3). Such list shall
include the following information for each such unlawful Internet gambling
enterprise:</text>
<subparagraph id="ID948f901651d74a119b80bb1016beb082"><enum>(A)</enum><text>All known
Internet website addresses of the enterprise.</text>
</subparagraph><subparagraph id="ID6dcf9626829e4dd3ac3caec02031a427"><enum>(B)</enum><text>The names of all
known owners and operators of the enterprise.</text>
</subparagraph><subparagraph id="IDe50374e0b96f47ef8a5a7d2beb77ef29"><enum>(C)</enum><text>To the extent
known, information identifying the financial agents and account numbers of the
enterprise and the persons listed under subparagraph (B).</text>
</subparagraph></paragraph><paragraph id="ID448ee888a1ee49e9a6584ce7348da125"><enum>(2)</enum><header>Distribution of
list by Secretary</header><text>The Secretary shall make available—</text>
<subparagraph id="id324E31FA180D4360B9B84B37C9DC81D8"><enum>(A)</enum><text>a copy of the
information provided under subparagraphs (A) and (B) of paragraph (1) on the
Internet website of the Department of the Treasury;</text>
</subparagraph><subparagraph id="id98EF55E14D2A4E4496CF867964DCECBD"><enum>(B)</enum><text>to all persons
who are required to comply with the regulations prescribed under the authority
provided in section 5364 a copy of all the information provided under paragraph
(1) in an electronic format compatible with the Specially Designated Nationals
list maintained by the Office of Foreign Assets Control; and</text>
</subparagraph><subparagraph id="id61081110E0994594B8DE8EF480901089"><enum>(C)</enum><text>any information
required under this paragraph not later than 10 days after receiving any new or
updated list from the Director.</text>
</subparagraph></paragraph><paragraph id="ID7afb3b5574534577910a289c60afef45"><enum>(3)</enum><header>Procedures</header><text>The
procedures described in this paragraph are the following:</text>
<subparagraph id="ID1676788f66454c17ba5b2f5a55c0f6e8"><enum>(A)</enum><header>Investigation</header><text>The
Director shall investigate entities that appear to be unlawful Internet
gambling enterprises. An initial investigation shall be completed before the
end of the 60-day period beginning on the date of enactment of this section.
After the initial investigation, the Director shall regularly investigate
entities that appear to be unlawful Internet gambling enterprises. If the
Director discovers evidence sufficient to prove a prima facie case that any
person is an unlawful Internet gambling enterprise, the Director shall provide
the notice required under subparagraph (C).</text>
</subparagraph><subparagraph id="IDf7a46b01c01043e598d59c1b8d606038"><enum>(B)</enum><header>Requests</header><text>Any
Federal, State, tribal, or local law enforcement official, any affected sports
organization, any person directly harmed by unlawful Internet gambling, any
financial transaction provider, and any interactive computer service (as such
terms are defined in section 5362) 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 unlawful Internet gambling enterprises. If the Director
determines that the evidence submitted is sufficient to prove a prima facie
case that such person is an unlawful Internet gambling enterprise, the Director
shall provide the notice required under subparagraph (C) to each person
identified as an alleged unlawful Internet gambling enterprise. The Director
also shall provide written notice of its decision under this subparagraph,
including a decision not to add a person to the list required under paragraph
(1), to the requesting party no later than 30 days after the request is
received. The Director shall not include on the list any person operating an
Internet game-of-skill facility who falls within the scope of section 108(a) of
the <short-title>Internet Poker and Game of Skill
Regulation, Consumer Protection, and Enforcement Act of
2009</short-title>.</text>
</subparagraph><subparagraph id="ID63fc98307dec40bba5bd47c171e22473"><enum>(C)</enum><header>Notice</header><text>Not
fewer than 30 days before adding an unlawful Internet gambling enterprise, or
an owner or operator thereof, to the list required under paragraph (1), the
Director shall provide written notice to such enterprise, owner, or operator.
Any enterprise, owner, or operator receiving such notice may contest the
Director’s determination by written appeal to the Director not more than 30
days after receiving notice.</text>
</subparagraph><subparagraph id="ID92a3b5c30a804764ab358502c1f24878"><enum>(D)</enum><header>Opportunity for
hearing</header><text>If a person properly submits a written appeal under
subparagraph (C), the Director shall not include such person in the list
required under paragraph (1) unless and until the Director provides such person
with an opportunity for a hearing not more than 30 days after receiving written
notice of appeal. Not more than 10 days after an opportunity for hearing is
afforded, whether or not the person requesting the hearing appears at such
hearing, the Director shall proceed to add such person to the list of unlawful
Internet gambling enterprises unless the Director determines, based on a
preponderance of the evidence, that such person is not an unlawful Internet
gambling enterprise.</text>
</subparagraph><subparagraph id="IDc85c17b7c1cb441186f92a982560f4d3"><enum>(E)</enum><header>Injunctive
relief</header><text>Any person that the Director determines shall be included
in the list required under paragraph (1) after such person appears at a hearing
described in subparagraph (D) and any person included in such list who did not
receive the notice required under subparagraph (C), may petition for injunctive
relief in the United States District Court for the District of Columbia, which
shall have exclusive jurisdiction to hear challenges pursuant to this section.
The petitioner shall have the burden of establishing by a preponderance of the
evidence that such person is not an unlawful Internet gambling enterprise. Only
persons designated by the Director for inclusion on the list of unlawful
Internet gambling enterprises, and other owners or operators of an enterprise
to be so listed, shall have standing to contest the Director’s determination.
The court may enjoin the Director and the Secretary not to add or remove the
petitioner from the list of unlawful Internet gambling enterprises, and no
other judicial recourse shall be permitted.</text>
</subparagraph></paragraph></subsection><subsection id="IDa1dc9bb31e144203b189445cb72577de"><enum>(c)</enum><header>Effect of
list</header><text>A financial transaction provider shall be deemed to have
actual knowledge that a person is an unlawful Internet gambling enterprise to
the extent that such person is identified on the list available to the public,
or on a non-public list made available to such financial transaction provider,
by the Secretary as described in subsection (b)(2), provided that the list
shall not be deemed to be the sole source of actual
knowledge.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idCD927672D50940D48832297792D2AFA1"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of sections at the beginning of such chapter
53 is amended by inserting after the item relating to section 5367 the
following:</text>
<quoted-block display-inline="no-display-inline" id="id3901EC77699E47659EA4BC2EA68D9B5C" style="OLC">
<toc>
<toc-entry bold="off" level="section">5368. List of unlawful Internet
gambling
enterprises.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="idA5D1E28B29DE43738CA0D762E7EEECE8"><enum>104.</enum><header>Regulations</header>
<subsection id="ID3a263d8ff7dc4683b8b5ff56eb117ee5"><enum>(a)</enum><header>Licensing of
Internet game-of-skill facilities</header><text display-inline="yes-display-inline">Not later than 180 days after the date of
the enactment of this Act, the Secretary shall—</text>
<paragraph id="id96E4502D88F144FA89FD7359F9439578"><enum>(1)</enum><text display-inline="yes-display-inline">prescribe regulations to carry out
subchapter V of chapter 53 of title 31, United States Code, as added by section
102(a); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6E694851B92A4CE5BB51732FA335E9A7"><enum>(2)</enum><text>publish such
regulations in final form in the Federal Register.</text>
</paragraph></subsection><subsection id="IDa38816be71a44b798abd950958c8aec0"><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 display-inline="yes-display-inline">Subsection (a) of section 5364 of such
title is amended by striking <quote>Before the end of the 270-day period
beginning on the date of the 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="ID7215bdec1c75480e99e028cd5d5c8862"><enum>(c)</enum><header>Modification of
requirements for policies and procedures</header><text>Subsection (b) of such
section is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id092ADD0191EC4F76B29CE42621C827AF" style="OLC">
<subsection id="ID8c0e2518d89d4f4d9f5aa4a742c6674e"><enum>(b)</enum><header>Requirements
for policies and procedures</header><text>In prescribing regulations under
subsection (a), the Secretary shall—</text>
<paragraph id="ID95294bb189ee4f41bfe34ce7e63625d0"><enum>(1)</enum><text>identify types of
policies and procedures, including nonexclusive examples, which would be
deemed, as applicable, to be reasonably designed to identify and block or
otherwise prevent or prohibit the acceptance of the products or services of the
payment system or participant with respect to each type of restricted
transaction;</text>
</paragraph><paragraph id="IDaa6b1844c8c641eda17f62a195a9e89c"><enum>(2)</enum><text>permit any
participant in a payment system to rely on the policies and procedures of such
payment system if such policies and procedures are reasonably designed to
identify and block or otherwise prevent or prohibit a transaction in which any
participant in that payment system in such transaction has actual knowledge
that the intended recipient is an unlawful Internet gambling enterprise;</text>
</paragraph><paragraph id="ID554eabec0ca340d393cdf785208be7dd"><enum>(3)</enum><text>exempt certain
participants from any requirement imposed under such regulations if the
Secretary finds that—</text>
<subparagraph id="idA72EDCE41BDB4098919FB01C321112A5"><enum>(A)</enum><text>such requirement
is not reasonably practical for such participants; and</text>
</subparagraph><subparagraph id="id9899D0CE5FA84CE6BB6D376CD9D4563F"><enum>(B)</enum><text>such regulations
are reasonably calculated to require at least 1 participant under the
jurisdiction of the United States in each designated payment system to identify
and block or otherwise prevent or prohibit the acceptance of the products or
services of the payment system with respect to each type of restricted
transaction; and</text>
</subparagraph></paragraph><paragraph id="ID8e8e156e199f48769109761f3755ae5e"><enum>(4)</enum><text>ensure that
transactions in connection with any activity excluded from the definition of
unlawful Internet gambling in subparagraphs (B), (C), (D)(i), or (E) of section
5362(10) or that are lawfully conducted pursuant to section 5382 are not
blocked or otherwise prevented or prohibited by the prescribed
regulations.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDa615415fe41e406fa7e8b95fa0144913"><enum>(d)</enum><header>Temporary
suspension of certain regulations</header>
<paragraph id="id9C09397977104EE29A68C637D3B562D5"><enum>(1)</enum><header>In
general</header><text>Subject to paragraph (2), during the period beginning on
the date of the enactment of this Act and ending on June 1, 2010, 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.</text>
</paragraph><paragraph id="idD268420A0A66438A8A97676C2917C264"><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 the enactment of this Act.</text>
</paragraph></subsection><subsection id="id05A5387658974F6A9EC248FF34B621B7"><enum>(e)</enum><header>Revision of
regulations</header><text>The Secretary of the Treasury shall, in consultation
with the Attorney General, revise the regulations described in subsection
(d)(1) in accordance with the amendments made to subchapter IV of chapter 53 of
title 31, United States Code, by this Act.</text>
</subsection></section><section id="ID8633fcf3cafc40c5926f4785155b3f4f"><enum>105.</enum><header>Annual
report</header>
<subsection id="ID20160efb18714864ad06bf36d4adc972"><enum>(a)</enum><header>In
general</header><text>Not later than 1 year after the date on which the
Secretary of the Treasury prescribes regulations under section 104(a) and
annually thereafter, the Secretary shall submit to Congress a report on the
licensing and regulation of Internet game-of-skill facilities (as such term is
defined in section 5382 of title 31, United States Code, as added by section
102(a)).</text>
</subsection><subsection id="IDb5c0d1f85d264e76a57185965420bd6c"><enum>(b)</enum><header>Elements</header><text>Each
report submitted under subsection (a) shall include the following:</text>
<paragraph id="idEC9535EEB8724F06BD7EFA2F84A1940D"><enum>(1)</enum><text>A description of
all notices received by the Secretary of the Treasury under subsections (a) and
(b) of section 5385 of title 31, United States Code, as added by section
102(a).</text>
</paragraph><paragraph id="IDaf2e2609d95b4752a1d64c647eaae08f"><enum>(2)</enum><text>The amount of
user fees received under section 5382(e) of such title (as added by section
102(a)), the amount of Federal, State, and tribal licensing fees collected, and
an estimate of the amount of income tax revenue that is attributable to the
operation of Internet game-of-skill facilities (as such term is defined in
section 5381 of such title, as so added) during the period covered by the
report.</text>
</paragraph><paragraph id="IDb0820a30ef7047d1971798eac668a4b7"><enum>(3)</enum><text>A list of the
State and tribal regulatory bodies that the Secretary has made an affirmative
determination under section 5382(n)(1)(B) of such title, as so added, the
number of licensees reviewed by such regulatory bodies, and the outcomes of
such reviews.</text>
</paragraph><paragraph id="id30EE66119BDA4B238B3411E2FBDEB0E6"><enum>(4)</enum><text>A description of
the efforts the Secretary has undertaken to ensure that licensees qualified by
State and tribal regulatory bodies meet the requirements of subchapter V of
chapter 53 of such title, as so added.</text>
</paragraph><paragraph id="IDe6af4083000940a69f2f4947e105a34c"><enum>(5)</enum><text>Information on
regulatory and enforcement actions undertaken during the period for which the
report is submitted with respect to the provisions of such subchapter.</text>
</paragraph><paragraph id="ID94437327970e4a378116954d9c7e80ba"><enum>(6)</enum><text>Data regarding
the list required by 5368(b)(1) of such title, as added by section 103(a),
including its size, the number of persons and websites added and removed,
number and description of challenges to inclusion on the list, and resolution
of those challenges.</text>
</paragraph><paragraph id="ID04686f0b135d4c0e8ff73579fd2625b6"><enum>(7)</enum><text>Any other
information the Secretary determines may be useful to Congress in evaluating
the effectiveness of subchapter V of chapter 53 of such title, as added by
section 102(a), 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 Internet gambling.</text>
</paragraph></subsection></section><section id="ID9bff8375dd674c03b31580f99e226229"><enum>106.</enum><header>Conforming
amendments</header>
<subsection id="id59348BFFC7524F128A905122CE372F45"><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) of
title 31, United States Code, is amended—</text>
<paragraph id="ID0be81b9fcda34521b43f9d81327da76d"><enum>(1)</enum><text>by redesignating
subparagraphs (I) and (J) as subparagraphs (J) and (K), respectively;
and</text>
</paragraph><paragraph id="IDdfe72f37ccec49d0b67cb7607c2bfc77"><enum>(2)</enum><text>by inserting
after subparagraph (H) the following:</text>
<quoted-block display-inline="no-display-inline" id="id2D27798DCBC04233AA516BF38C2B7BC9" style="OLC">
<clause id="ID2d0e1e437b894937928d180c8b504090"><enum>(i)</enum><text>Administer the
requirements of subchapter V of chapter
53.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID54321511556449d19fc7722aa2ad2229"><enum>(b)</enum><header>Exclusion of
licensed Internet game-of-skill facility operations from definition of unlawful
Internet gambling</header><text>Section 5362(10) of such title is
amended—</text>
<paragraph id="IDcee29a65415440f68005424d1b40114b"><enum>(1)</enum><text>in subparagraph
(D), by striking clause (iii);</text>
</paragraph><paragraph id="id73F50423CB394CE2A3E08559ABE371F1"><enum>(2)</enum><text>by redesignating
subparagraph (E) as subparagraph (F); and</text>
</paragraph><paragraph id="ID8f8b7a511c2c4f6cb47d6364b3353faa"><enum>(3)</enum><text>by inserting
after subparagraph (D) the following:</text>
<quoted-block display-inline="no-display-inline" id="id1107337BC8BB4AB19AEBBB4DF14F31E8" style="OLC">
<subparagraph id="ID1b38179eb0384be68bb5e56f1efb1641"><enum>(E)</enum><header>Licensed
Internet game-of-skill facilities</header><text>The term <term>unlawful
Internet gambling</term> shall not include an activity carried out by an
Internet game-of-skill facility (as such term is defined in section 5382)
operated by a person under a license provided under subchapter V in accordance
with the provisions of such
subchapter.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="idDCD81DAFE6E842099272B36887C59974"><enum>107.</enum><header>Effective
date</header><text display-inline="no-display-inline">Subchapter V of chapter
53 of title 31, United States Code, and the regulations prescribed under
section 104(a) shall take effect on the date that is 90 days after the date on
which the Secretary of the Treasury publishes regulations under paragraph (2)
of such section.</text>
</section><section id="id10CEAB6524E64619A8693F50786BDEA6"><enum>108.</enum><header>Applicability</header>
<subsection id="idBBB5A48EED1E4A898EAD61ABCDA5579D"><enum>(a)</enum><header>In
general</header><text>Subsection (b)(1) of 5382 of title 31, United States
Code, as added by section 102(a), shall not apply to a person who, not later
than 90 days after enactment of this Act, notifies in writing the Secretary of
the Treasury of their intent to seek a license under subchapter V of such
chapter, as so added, and who not later than 90 days after the date on which
the Secretary of the Treasury begins accepting applications for licenses under
subchapter V of such chapter, as so added, submits to the Secretary of the
Treasury an application for a license under such subchapter may operate an
Internet game-of-skill facility in interstate or foreign commerce, in which
bets or wagers are knowingly initiated, received, or otherwise made by
individuals located in the United States, without a license issued to such
person by the Secretary under such subchapter during the period beginning on
the date of such submittal and ending on the earlier of—</text>
<paragraph id="idEE314A03CD9140608BDD75B7D00CA339"><enum>(1)</enum><text display-inline="yes-display-inline">the date the Secretary grants such
license;</text>
</paragraph><paragraph id="idF81E0499E656440B83C07C1AE09FF9C6"><enum>(2)</enum><text display-inline="yes-display-inline">the date that is 2 years after the date of
such submittal; or</text>
</paragraph><paragraph id="id16A720402AA9458D8E12F5452D7FD77A"><enum>(3)</enum><text>the date on which
the Secretary denies such application.</text>
</paragraph></subsection><subsection id="IDf1aa748687c34516ab138a23911dd43e"><enum>(b)</enum><header>Construction</header><text>Subsection
(a) shall not be construed to modify, amend, or affect in any way any other
provision of law with respect to unlawful Internet gambling (as such term is
defined in section 5361 of such title).</text>
</subsection><subsection id="id5C53187C4FEF49AB849C17168164C989"><enum>(c)</enum><header>Previous
operation</header><text>The Secretary of the Treasury may not deny an
application for a license under subchapter V of such title, as so added, that
is submitted by an applicant during the 90-day period beginning on the date
that the Secretary begins accepting applications under such subchapter because
the applicant operated an Internet game-of-skill facility, in interstate or
foreign commerce, in which bets or wagers were knowingly initiated, received,
or otherwise made by individuals located in the United States, without a
license issued to such person by the Secretary under such subchapter.</text>
</subsection><subsection id="idDD2F7FE807B446A297EFF8121F6BFF74"><enum>(d)</enum><header>Definitions</header><text>The
terms <term>bet or wager</term> and <term>operate an Internet game-of-skill
facility</term> have the meaning given such terms in section 5381 of such
title, as added by section 102(a).</text>
</subsection></section><enum>II</enum><header>Internet games
of skill tax provisions</header>
<section id="idCCC290D6EE8B47E38FCFF95A0A37D9AA"><enum>201.</enum><header>Amendment of
1986 code</header>
<subsection id="IDf2fae056a9394971b1b6e018066fa349"><enum>(a)</enum><header>Amendment of
1986 code</header><text>Except as otherwise expressly provided, whenever in
this title an amendment or repeal is expressed in terms of an amendment to, or
repeal of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Internal Revenue Code of
1986.</text>
</subsection></section><section id="IDebdb85a7983d4a0c8bd2714a86b171ea"><enum>202.</enum><header>Tax on
internet games of skill; licensee information reporting</header>
<subsection id="IDeee02ada81c54f348bb007abf8f52d8b"><enum>(a)</enum><header>In
general</header><text>Chapter 36 is amended by adding at the end the following
new subchapter:</text>
<quoted-block display-inline="no-display-inline" id="id41241DD809B64E8A92F8E8AA231E36C4" style="OLC">
<subchapter id="idACB85B9E610649B3BE1FD8DD167EEB7D"><enum>E</enum><header>Internet gambling
and games of skill</header>
<section id="id638EE3FCB03F4BF896E50DB5A00A462D"><enum>4491.</enum><header>Imposition of
internet gaming license fee</header>
<subsection id="IDe01705a8bad24f10947bdd80c6633052"><enum>(a)</enum><header>Imposition of
fee</header><text>Each person who is a licensee shall be required to pay not
later than 15 days after the end of each calendar month a fee equal to the sum
of—</text>
<paragraph id="id4D03367283DB45849A030F52F0D74095"><enum>(1)</enum><text>the Federal
Internet gaming license fee; and</text>
</paragraph><paragraph id="id9BC06033873C4C9AA62F4F5AC1FB40A0"><enum>(2)</enum><text>the State or
Indian tribal government gaming license fee.</text>
</paragraph></subsection><subsection id="id4B76D515E5A149459665E3ABC14CE74F"><enum>(b)</enum><header>Amount of
fees</header><text>For purposes of this section—</text>
<paragraph id="idDEBA5325D7A64381933B127762C86F14"><enum>(1)</enum><header>Federal
Internet gaming license fee</header><text>The Federal Internet gaming license
fee is a fee equal to 5 percent of a licensee's Internet gaming deposited funds
for a calendar month.</text>
</paragraph><paragraph id="id1CC54D9A648A417481FC8E68835C6692"><enum>(2)</enum><header>State or Indian
tribal government gaming license fee</header><text>The State or Indian tribal
government gaming license fee is a fee equal to 5 percent of a licensee's
Internet gaming deposited funds for a calendar month.</text>
</paragraph><paragraph id="idE9D695EB30C545F7ABC3CEBD85AC935F"><enum>(3)</enum><header>Internet gaming
deposited funds</header><text>The term <term>Internet gaming deposited
funds</term> means all funds deposited by persons located within the United
States into any account maintained by the licensee or any agent of the licensee
into which funds are deposited for the purpose of being used to place a bet or
wager with respect to an Internet game of skill. Funds received from a customer
by an operator of an Internet game-of-skill facility and made available in any
form to a customer for the purpose of placing a bet or wager, and funds paid to
reimburse an operator of an Internet game-of-skill facility for value
previously advanced to the customer for such purpose, shall be regarded as
Internet gaming deposited funds unless the funds received or paid were already
considered Internet gaming deposited funds prior to their transmittal to the
operator of the Internet game-of-skill facility.</text>
</paragraph><paragraph id="ID5896cbd67b0c415d999825165ca4403f"><enum>(4)</enum><header>Limitation to
imposition of one State or indian tribal gaming license fee for any
transaction</header><text>In the case of a customer located within the
jurisdiction of an Indian tribe at the time of a transaction, only one fee
described in paragraph (2) shall be imposed on a licensee’s Internet gaming
deposited funds in connection with that transaction, and no additional fee
shall be collected on behalf of the State in which the customer is located. All
of the fee described in paragraph (2) in such case shall be allocated to the
Indian tribe in which the customer is located at the time of the transaction,
and no portion of the fee shall be allocated to the State.</text>
</paragraph></subsection><subsection id="ID01be7762b4b8428dbbe1bc3355e40709"><enum>(c)</enum><header>Unauthorized
gaming</header>
<paragraph id="idBF1B7374694140D5885731A282B69E50"><enum>(1)</enum><header>Penalty</header><text>Each
person who is not a licensee and who operates an Internet game-of-skill
facility for which a license is required under section 5390(a)(1) of title 31,
United States Code, except as provided in section 108(a) shall be required to
pay not later than the end of each calendar month a fee equal to the amount of
the Federal Internet gaming license fee that would be applicable to such person
for such month if such person were a licensee, determined by substituting
<quote>50 percent</quote> for <quote>5 percent</quote> in subsection
(b)(1).</text>
</paragraph><paragraph id="idA950A275A53A460B80A1081E08D966CD"><enum>(2)</enum><header>Exception</header><text>Paragraph
(1) shall not apply to a game described in paragraph (3) of section 5382(b) of
title 31, United States Code.</text>
</paragraph></subsection><subsection id="idAA8847049B9B4EC098E135A52143D6D2"><enum>(d)</enum><header>Definitions and
special rules</header><text>For purposes of this subchapter—</text>
<paragraph id="id55E726D0DF2049B4A0042767FDA3226C"><enum>(1)</enum><header>In
general</header><text>The terms <term>licensee</term>, <term>bet or
wager</term>, <term>Internet game of skill</term>, and <term>Internet
game-of-skill facility</term> have the meaning given such terms by section 5381
of title 31, United States Code.</text>
</paragraph><paragraph id="ID7aaa5700a92943baaa3e7716001b5279"><enum>(2)</enum><header>Deposits</header><text>Deposits
made by or on behalf of a licensee of Internet gaming winnings, and returns of
funds by or on behalf of a licensee to the account of a customer, shall not be
treated as a deposit.</text>
</paragraph></subsection><subsection id="ID0929c034d2b244d193397ac58c80ab7d"><enum>(e)</enum><header>Persons
liable</header>
<paragraph id="id44ACC13298B14185823BD8420B30CB60"><enum>(1)</enum><header>In
general</header><text>Each licensee or other person who operates an Internet
game-of-skill facility for which a license is required under section 5382(b)(1)
of title 31, United States Code, shall be liable for and shall pay the
applicable fees under this section with respect to all Internet gaming
deposited funds.</text>
</paragraph><paragraph id="idEA4BAA8F9FCF4734A9F977C1E2AE0994"><enum>(2)</enum><header>Joint and
several liability for unauthorized gambling</header><text>In the case of any
deposit with respect to which a fee is imposed under subsection (c), the person
described in paragraph (1) of such subsection and the person making such
deposit for the purposes of placing a bet or wager shall be jointly and
severally liable for the fee under such subsection with respect to such
deposit.</text>
</paragraph></subsection><subsection id="IDdc7500e6448d44feb301c77d11f4e5f1"><enum>(f)</enum><header>Administrative
provisions</header><text>Except to the extent the Secretary shall by
regulations prescribe, the administrative provisions of this title applicable
to the excise taxes imposed by chapter 35 shall apply to the fees imposed by
this section.</text>
</subsection></section><section id="ID02775acf4a1846b89c44d2e4c5e37439"><enum>4492.</enum><header>Record
keeping requirements</header>
<subsection id="id56D8EE3516FB4599A5C844FE7CD9C910"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Each licensee who is
liable for the fees imposed by this subchapter shall keep a daily record
showing all deposits to which this subchapter applies, in addition to all other
records required pursuant to section 6001(a).</text>
</subsection><subsection id="id030C7AB0650B4302BB67C6F3F8050662"><enum>(b)</enum><header>Records with
respect to State or Indian tribal government gaming license fee</header><text display-inline="yes-display-inline">Each licensee to which subsection (a)
applies shall keep a record, using methods determined to be satisfactory by the
Secretary or, in the case of a licensee who is certified by a State or tribal
regulatory body under section 5382(o) of title 31, United States Code, by such
State or tribal regulatory body, of the location of each person making a
deposit to which this subchapter applies, for purposes of determining the State
or Indian tribal government gaming license fee applicable to such deposit for
purposes of section
9511.</text>
</subsection></section></subchapter><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDd3bcd91888e749de8230d40f2bbb8d58"><enum>(b)</enum><header>Information
returns</header><text>Subpart B of part III of subchapter A of chapter 61 is
amended by adding at the end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="id52E12AF39C794FFE84EA4C1951040DEE" style="OLC">
<section id="idD5E43A24D88D470397D9275DFE1E45B4"><enum>6050X.</enum><header>Returns
relating to internet gambling and games of skill</header>
<subsection id="IDd01db76051314c178fd4a4f0368613eb"><enum>(a)</enum><header>Requirement</header><text>Every
person described in section 4491(e)(1) with respect to any month during a
taxable year shall furnish, at such time and in such manner as the Secretary
shall by regulations prescribe, the information described in subsection (b),
and such person shall maintain (in the location and manner and to the extent
prescribed in such regulations) such records as may be appropriate with respect
to such information.</text>
</subsection><subsection id="ID158fc1ab464b49918dad15e5e3882ca1"><enum>(b)</enum><header>Required
information</header><text>For purposes of subsection (a), the information
described in this subsection is—</text>
<paragraph id="ID5f71f98b09d94cfeb0108ecf2f392087"><enum>(1)</enum><text>the name,
address, and TIN of the person described in subsection (a);</text>
</paragraph><paragraph id="ID8328c7500b354269b3c29dedc229e81a"><enum>(2)</enum><text>the name,
address, and TIN of each person placing a bet or wager (within the meaning of
section 4491) with the person described in subsection (a) during the calendar
year;</text>
</paragraph><paragraph id="ID135a38008bf94fee89867680b898ec0c"><enum>(3)</enum><text>the gross
winnings, gross wagers, and gross losses for the calendar year of each person
placing a bet or wager as described in paragraph (2);</text>
</paragraph><paragraph id="ID9819c1c6b38246b380772fb7b79c3371"><enum>(4)</enum><text>the net Internet
gaming winnings for each such person for the calendar year;</text>
</paragraph><paragraph id="IDeaa8101ee57f4c6eb8006536dae7c092"><enum>(5)</enum><text>the amount of tax
withheld, if any, with respect to each such person by the person described in
subsection (a) for the calendar year;</text>
</paragraph><paragraph id="id4461E119C4BD4E0997FE7AE6BB4A458A"><enum>(6)</enum><text>the balance of
any account maintained for each person placing a bet or wager as described in
paragraph (2) by the person described in subsection (a), at the beginning and
the end of the calendar year; and</text>
</paragraph><paragraph id="ID44817250525641bd846a2343e74f1f91"><enum>(7)</enum><text>the amounts of
all deposits and withdrawals from each such account during such calendar
year.</text>
</paragraph></subsection><subsection id="ID5750c40f4fd04aa190210c9f1b6874de"><enum>(c)</enum><header>Statement To be
furnished to persons with respect to whom information is
required</header><text>Every person required to make a return under subsection
(a) shall furnish to each person whose name is required to be set forth in such
return a written statement showing—</text>
<paragraph id="ID259fe2516985484dbb657106be6ef562"><enum>(1)</enum><text>the name,
address, and phone number of the information contact of the person required to
make such return; and</text>
</paragraph><paragraph id="IDe8fff655c6854e838dd90a06d9190fdf"><enum>(2)</enum><text>the information
required to be shown on such return with respect to each person whose name is
required to be set forth in such return.</text>
</paragraph><continuation-text continuation-text-level="subsection">The
written statement required under the preceding sentence shall be furnished to
the person on or before January 31 of the year following the calendar year for
which the return under subsection (a) was required to be made.</continuation-text></subsection><subsection id="ID34148d99907d4ba5a8ec316989bf4096"><enum>(d)</enum><header>Net internet
gaming winnings</header><text>The term <term>net Internet gaming
winnings</term> means gross winnings from bets or wagers with an Internet
game-of-skill facility (within the meaning of section 4491) for which a license
is required under section 5382(b)(1) of title 31, United States Code, reduced
(but not below zero) by the amounts bet or
wagered.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idF46F71D071644706B1FFFB9F1BD7C206"><enum>(c)</enum><header>State and
Indian tribal government gaming license fee trust fund</header><text>Subchapter
A of chapter 98 is amended by adding at the end the following new
section:</text>
<quoted-block act-name="" id="id26CD78D59D9B446FA3965B8448E897B2" style="OLC">
<section id="id2F836BE35151417BABAB9CBCAB6B570D"><enum>9511.</enum><header>State and
Indian Tribal Government Gaming License Fee Trust Fund</header>
<subsection id="id95282202DA7B41C18CBC311B5FCD30A4"><enum>(a)</enum><header>Creation of
trust fund</header><text>There is established in the Treasury of the United
States a trust fund to be known as the <quote>State and Indian Tribal
Government Gaming License Fee Trust Fund</quote> (hereafter in this section
referred to as the <quote>Trust Fund</quote>), consisting of such amounts as
may be appropriated or credited to such Trust Fund as provided in this section
and section 9602(b).</text>
</subsection><subsection id="id2CC54CE9FD114A808A8F12A7D30CD175"><enum>(b)</enum><header>Transfers to
fund</header><text>There are hereby appropriated to the Trust Fund amounts
equivalent to the fees received in the Treasury with respect to each calendar
month under section 4491 by reason of subsection (a)(2) thereof.</text>
</subsection><subsection id="id01BC60EFA4C942A499B59CCEEA40209B"><enum>(c)</enum><header>Expenditures
from Fund</header>
<paragraph id="id48A9D99CFC0149A49CAA6391D8F77A1E"><enum>(1)</enum><header>In
general</header><text>The Secretary shall pay to each qualified State and each
qualified Indian tribal government, out of the amounts in the Trust Fund, an
amount equal to the monthly pro rata gaming license fee amount.</text>
</paragraph><paragraph id="idB655B60E81E948B9B554B9531771284A"><enum>(2)</enum><header>Monthly pro
rata gaming license fee amount</header><text>For purposes of this section, with
respect to a qualified State and a qualified Indian tribal government for any
calendar month, the monthly pro rata gaming license fee amount is the amount of
the fees described in subsection (b) received with respect to such calendar
month that are attributable to deposits made by persons located within the
jurisdiction of such State or tribal government (determined by the Secretary on
the basis of records kept under section 4492(b)).</text>
</paragraph><paragraph id="id9CC5FE58945747F4B39051B6A4CB6691"><enum>(3)</enum><header>Qualified
State; qualified Indian tribal government</header>
<subparagraph id="idE2FD0D032DED43558F2E5974E58DD92D"><enum>(A)</enum><header>In
general</header><text>For purposes of this section, the terms <term>qualified
State</term> and <term>qualified Indian tribal government</term> mean a State
or an Indian tribal government, respectively, that has not elected (by notice
provided by the Governor, principal chief, or other chief executive officer and
in such form and manner as the Secretary may prescribe) to be excluded from the
receipt of funds under this section.</text>
</subparagraph><subparagraph id="id14681F33C0CF49C8B7D8FB08FD60AC55"><enum>(B)</enum><header>State election
not to affect tribal election</header><text>An election by a State under
subparagraph (A) to be excluded from the receipt of funds under this section
shall not constitute an election to be so excluded on behalf of any Indian
tribe located within or partially within the geographic boundaries of such
State.</text>
</subparagraph><subparagraph id="id89128E35A2E94A8AB9FF468F121AC674"><enum>(C)</enum><header>Applicability
of election</header><text>An election made under subparagraph (A) shall be
effective—</text>
<clause id="id28606372528F4A56B0AA8B9DED08CB6A"><enum>(i)</enum><text>upon receipt by
the Secretary, if such election is received within 90 days of the date of the
enactment of the <short-title>Internet Poker and Game of
Skill Regulation, Consumer Protection, and Enforcement Act of
2009</short-title>; and</text>
</clause><clause id="id2828F58890BF4C5587E3C7487BECEC10"><enum>(ii)</enum><text>in any other
case, on the first January 1 that occurs at least 60 days after the later
of—</text>
<subclause id="id82808049223148EDA723E869B49E9708"><enum>(I)</enum><text>the receipt of
such election by the Secretary; or</text>
</subclause><subclause id="id8FE72D00AC8F44D99B71D780A2457462"><enum>(II)</enum><text>the effective
date specified in such election.</text>
</subclause></clause></subparagraph><subparagraph id="idBAB0AC6DF56B45BEA785275BBD07D50E"><enum>(D)</enum><header>State</header><text>The
term <term>State</term> means any State of the United States, the District of
Columbia, or any commonwealth, territory or other possession of the United
States.</text>
</subparagraph><subparagraph id="idE4858F1EB27D47698BEB8E513716B8F4"><enum>(E)</enum><header>Indian tribal
government</header><text>The term <term>Indian tribal government</term> means
the government of an Indian tribe (within the meaning of section 4 of the
Indian Gaming Regulatory Act).</text>
</subparagraph></paragraph><paragraph id="id787D9B7D5E474907B01D61418C3BB930"><enum>(4)</enum><header>Time of
payments</header><text>The payment made under this subsection with respect to
any calendar month shall be made not later than the 11th day of the succeeding
calendar
month.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID999972a17a7f4b558e4de88b4e0ff846"><enum>(d)</enum><header>Clerical
amendments</header>
<paragraph id="id24E2F3C240364AA490763B4114BA985E"><enum>(1)</enum><text>The table of
subchapters for chapter 36 is amended by adding at the end the following
item:</text>
<quoted-block display-inline="no-display-inline" id="idF8389B673CF944789145D3666F80B7BC" style="OLC">
<toc>
<toc-entry bold="off" level="subchapter">Subchapter E. Internet
gambling and games of
skill.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDbbf8b549f68c439a899627c20e46a335"><enum>(2)</enum><text>The table of
sections for subpart B of part III of subchapter A of chapter 61 is amended by
inserting after the item relating to section 6050W the following new
item:</text>
<quoted-block display-inline="no-display-inline" id="id69E8EC0CAF5D42FFB36A59ED271F0228" style="OLC">
<toc>
<toc-entry bold="off" level="section">Sec. 6050X. Returns relating to
Internet gambling and games of
skill.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id8A504BF2AABB492B9D5046073BE4AD92"><enum>(3)</enum><text>The table of
sections for subchapter A of chapter 98 of such Code is amended by adding at
the end the following new item:</text>
<quoted-block display-inline="no-display-inline" id="idFBFE970A55FC4A059F897522385D512D" style="OLC">
<toc>
<toc-entry bold="off" level="section">Sec. 9511. State and Indian
Tribal Government Gaming License Fee Trust
Fund.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID3b1a8330b1774b0981dabc26241b4e02"><enum>(e)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to deposits
made after the date of the enactment of this Act.</text>
</subsection></section><section id="ID42e946948b5d466e889864053de0b6b6"><enum>203.</enum><header>Withholding
for parimutuel pool winnings</header>
<subsection id="ID49372ff890fd4477a767272caec66ed0"><enum>(a)</enum><header>Winnings
subject to withholding</header><text>Subparagraph (C) of section 3402(q)(3) is
amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idEA00806274614F6F80787861FEEFB15B" style="OLC">
<subparagraph id="IDbe3328807fda47beb6a6b698f48799d6"><enum>(C)</enum><header>Sweepstakes,
wagering pools, and lotteries</header><text>Proceeds of more than $5,000 from a
wager placed in a sweepstakes, wagering pool, or
lottery.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID9bab5836a0a0440c9c7e23e18d731099"><enum>(b)</enum><header>Exception for
parimutuel pools</header><text>Paragraph (5) of section 3402(q) is
amended—</text>
<paragraph id="id0406A44162B4434F9ADC9010FBC2EFBD"><enum>(1)</enum><text>by striking
<quote>shall not apply to</quote> and all that follows, and inserting “shall
not apply—</text>
<quoted-block display-inline="no-display-inline" id="idFA4B9DBAA0E841168A9A786EE8A5DB91" style="OLC">
<subparagraph id="id206A2D3383024510AC4526F20DCF4E59"><enum>(A)</enum><text>to winnings from
a slot machine, keno, or bingo; and</text>
</subparagraph><subparagraph id="idC9378F03A66149B48AFA7628D4C8E533"><enum>(B)</enum><text>to proceeds from
a wagering transaction in a parimutuel pool with respect to horse races, dog
races, or jai alai.</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID98fa115b307d438789d44d9424c5184d"><enum>(2)</enum><text>by inserting
<quote><header-in-text level="paragraph" style="OLC">and certain parimutuel
pools</header-in-text></quote> after <quote><header-in-text level="paragraph" style="OLC">slot machines</header-in-text></quote> in the heading.</text>
</paragraph></subsection><subsection id="ID2e1ca7816211412198efcf8003ca502f"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to payments
made after the date of the enactment of this Act.</text>
</subsection></section><section id="ID0f01b5df95c24b9fbeed5a69efb9ecb4"><enum>204.</enum><header>Withholding
from certain gaming winnings</header>
<subsection id="ID0b133902c6a24813ae5ca180aaa706c9"><enum>(a)</enum><header>Net internet
gaming winnings</header><text>Paragraph (3) of section 3406(b) is
amended—</text>
<paragraph id="IDb95295fbd4f04a4fabe10440ebaa374d"><enum>(1)</enum><text>by striking
<quote>or</quote> at the end of subparagraph (E);</text>
</paragraph><paragraph id="ID3d43c65cdb92447e9a11d42a8ead481f"><enum>(2)</enum><text>by striking the
period at the end of subparagraph (F) and inserting <quote>, or</quote>;
and</text>
</paragraph><paragraph id="IDf7d178995c6e4265a627c0f486c87cc3"><enum>(3)</enum><text>by adding at the
end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="id70A571CF8C2C47E7BD0AEEC0B7F04B8B" style="OLC">
<subparagraph id="ID552c8de4c4ad422d9d4d12cb882d24e2"><enum>(G)</enum><text>section
6050X(b)(4) (relating to net internet gaming
winnings).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID81299b9803074b65b6d7e91d124796c5"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to amounts
paid after the date of the enactment of this Act.</text>
</subsection></section><section id="IDddcdd1e4a423406aaad2207596185a05"><enum>205.</enum><header>Withholding of
tax on nonresident aliens</header>
<subsection id="ID52a025ac994b4896a941114d8264308b"><enum>(a)</enum><header>Tax on
nonresident alien individuals</header><text>Paragraph (1) of section 871(a) is
amended—</text>
<paragraph id="ID44c33fcc094545d78f2bdfa6e8f40303"><enum>(1)</enum><text>by striking
<quote>and</quote> at the end of subparagraph (C);</text>
</paragraph><paragraph id="ID86b8e99943cb42c49df2f2319f31b8c0"><enum>(2)</enum><text>by inserting
<quote>and</quote> at the end of subparagraph (D); and</text>
</paragraph><paragraph id="IDd62b5bac5c34468cb889a1eeeebe7e98"><enum>(3)</enum><text>by inserting
after subparagraph (D) the following new subparagraph—</text>
<quoted-block display-inline="no-display-inline" id="id6C711A7E66CB4E7C9D68BCD0B8C1F5A5" style="OLC">
<subparagraph id="ID1c8caeab3f7c4aa99d3ef05d29018bcc"><enum>(E)</enum><text>the net Internet
gaming winnings (as defined in section
6050X(d)),</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID8d88af6c52664901ba49c0cb5eda29a0"><enum>(b)</enum><header>Exemption for
certain gaming winnings</header><text>The first sentence of section 871(j) is
amended by inserting <quote>, or to net Internet gaming winnings (as defined in
section 6050X(d))</quote> before the period.</text>
</subsection><subsection id="IDd21ea2e609da4752a6c01f2b1d1c2e55"><enum>(c)</enum><header>Withholding of
tax on nonresident alien individuals</header><text>The first sentence of
subsection (b) of section 1441 is amended by inserting <quote>amounts described
in section 871(a)(1)(E),</quote> after <quote>gains subject to tax under
section 871(a)(1)(D),</quote>.</text>
</subsection><subsection id="ID0a4494082ddd4e5ba0c0e57db305e09d"><enum>(d)</enum><header>Foreign
off-Track wagers</header><text>Subsection (b)(5) of section 872 is amended by
inserting <quote>, including a legal wagering transaction placed over the
Internet or other remote means from outside the United States. Any payment to
any person with respect to income derived from a legal wagering transaction
excluded by this subsection shall not be subject to any obligation under
section 1441, 1442, 3402(q), or 6041</quote> before the period.</text>
</subsection><subsection id="ID8e664cc15a294397a19158418b6938a7"><enum>(e)</enum><header>Source of
internet gambling winnings</header><text>Subsection (a) of section 861 is
amending by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idC2FE8B8B649A4289964AC2A673EF361C" style="OLC">
<paragraph id="ID4737735d637d4882976624c6bdd45fb4"><enum>(9)</enum><header>Internet gaming
winnings</header><text>Net Internet gaming winnings (as defined in section
6050X(d)).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID169f0381193f4806a8480d3142b8d66c"><enum>(f)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to payments
made after the date of the enactment of this Act.</text>
</subsection></section><section id="ID420c6a16f7584e53b6dbd1fa1304b408"><enum>206.</enum><header>Information at
source; parimutuel wagers</header>
<subsection id="id5E799E7755364A35BCC19B41DCB39F6D"><enum>(a)</enum><header>In
general</header><text>Section 6041 is amended by adding at the end the
following new subsection:</text>
<quoted-block act-name="" id="idB4D3DAC529924139BEB9B3C9782C1920" style="OLC">
<subsection id="id5438F701B9B841F1B96405FB70D18C81"><enum>(h)</enum><header>Certain
gambling winnings</header><text>Subsection (a) shall apply to payments made as
proceeds of a parimutuel wager only if the amount paid with respect to such
wager is at least $1,200, and if the amount of the proceeds of such wager is at
least 300 times of the amount
wagered.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id3EC328E33B914FF29478BD1A565C3B1E"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to payments
made after the date of the enactment of this Act.</text>
</subsection></section><section id="idE7431DF2834148F49B49F373EDD8AEAD"><enum>207.</enum><header>Exemption from
State and Indian tribal government taxation</header>
<subsection id="idF85995DEA63B4495A7CE0DB835E617CD"><enum>(a)</enum><header>Exemption from
tax on Internet games of skill</header><text display-inline="yes-display-inline">A State or political subdivision thereof,
and an Indian tribe or political subdivision thereof, shall impose no tax
on—</text>
<paragraph id="id717BAE04F5CA439C8DE84B5BDC581062"><enum>(1)</enum><text>deposits or bets
or wagers placed with a licensee that is subject to the fees under section 4491
of the Internal Revenue Code of 1986; or</text>
</paragraph><paragraph id="id2BE9E4A0EAD0406D96EE434564627004"><enum>(2)</enum><text>income of a
licensee relating to such deposits or bets or wagers, unless such licensee
maintains a permanent physical presence in such State or within the area of the
jurisdiction of such Indian tribe.</text>
</paragraph></subsection><subsection id="idC75E482751A245329E5E16CBA5AB6EFC"><enum>(b)</enum><header>Exemption not
To apply to States and Indian tribes not receiving Trust Fund
appropriations</header>
<paragraph id="id92EEF78527FC4F54B9729FD5D75E749C"><enum>(1)</enum><header>In
general</header><text>Subsection(a) shall not apply to any State or Indian
tribal government with respect to which an election is in effect under section
9511(c)(3) of the Internal Revenue Code of 1986 for such State or Indian tribal
government to be excluded from the receipt of funds from the State and Indian
Tribal Government Gaming License Fee Trust Fund.</text>
</paragraph><paragraph commented="no" id="id0A94BD2A910E467B8A305E97782588ED"><enum>(2)</enum><header>Activity not
exempt from taxation</header><text>A State or Indian tribal government
described in paragraph (1) may impose a tax on deposits or bets or wagers only
if initiated or otherwise made by a person located within the jurisdiction of
that State or Indian tribe at the time of the deposit, bet, or wager and placed
with a licensee that is subject to the fees under section 4491 of the Internal
Revenue Code of 1986, and on a licensee with respect to income relating to such
deposits or bets or wagers in each case (with respect to taxes on deposits,
bets, or wagers and income) only if such licensee maintains a permanent
physical presence in such State or within the area of the jurisdiction of such
Indian tribe.</text>
</paragraph></subsection><subsection id="id8AF6B36BEDFB4EB691A12D81D7D2DCD9"><enum>(c)</enum><header>Definitions</header><text>For
purposes of this section—</text>
<paragraph id="id1F37B933DD434A498C21022AC0589234"><enum>(1)</enum><header>In
general</header><text>The terms <term>deposit</term>, <term>bet or
wager</term>, and <term>licensee</term> have the same meaning as when used in
section 4491 of the Internal Revenue Code of 1986. The terms <term>State</term>
and <term>Indian tribal government</term> have the same meaning as when used in
section 9511 of such Code. The term <term>State and Indian Tribal Government
Gaming License Fee Trust Fund</term> means the Trust Fund established by
section 9511(a) of such Code.</text>
</paragraph><paragraph id="id3AF58DBB2A044C8DBE040679EABDD8D8"><enum>(2)</enum><header>Tax</header><text>The
term <term>tax</term> includes any tax, charge, or fee levied by a taxing
jurisdiction, whether such tax, charge, or fee is imposed on a licensee or on a
customer of a licensee, and without regard to the terminology used to describe
such tax, charge, or fee.</text>
</paragraph><paragraph id="id903A3E143B904524B88EA2F1DD3AEAED"><enum>(3)</enum><header>Permanent
physical presence</header>
<subparagraph id="idD96BE35B67A5424CA7F23F4610DE9DAF"><enum>(A)</enum><header>In
general</header><text>The term <term>permanent physical presence</term> means a
substantial and continuous physical presence for the majority of the applicable
taxable year. Such determination shall be made solely by reference to the
assets of a licensee and the activities conducted by its employees or
agents.</text>
</subparagraph><subparagraph id="id56F67928C95244EB9A8B0BFEE3E06B6E"><enum>(B)</enum><header>Presence in
Indian tribe not to affect State presence</header><text>If a licensee has
permanent physical presence within the area of jurisdiction of an Indian tribal
government for purposes of this section, such presence shall not be deemed to
constitute permanent physical presence in any State in which such area of
jurisdiction is located or partially located.</text>
</subparagraph></paragraph></subsection><subsection id="idC11E5AF87A754C20876C9BB7B15DE9DE"><enum>(d)</enum><header>Effective
date</header><text>This section shall apply to taxes on deposits and bets or
wagers after the date of the enactment of this Act.</text>
</subsection></section><section id="ID81a103aa244d41da82bc15466180bf5e"><enum>208.</enum><header>Territorial
extent of wagering tax</header>
<subsection id="id59828B87BD9746ADBA646FC701A3ADB0"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (2) of
section 4404 is amended—</text>
<paragraph id="id416A9ADD267B477187BCFE2A4660C67A"><enum>(1)</enum><text>by striking
<quote>or</quote> at the end of subparagraph (A);</text>
</paragraph><paragraph id="id7D8B479FAEBA404599F148C3C2E4A823"><enum>(2)</enum><text>by striking the
period at the end of subparagraph (B) and inserting <quote>, or</quote>;
and</text>
</paragraph><paragraph id="id2008F4B2BE9A47208CC24D63E1CC498B"><enum>(3)</enum><text>by adding at the
end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="id16AE5DD28F8940DB8EF9D1CE22F80143" style="OLC">
<subparagraph id="ID10f6a18dc001434e9fc7a8c19589a10f"><enum>(C)</enum><text>with a person who
is required to be licensed (whether or not such person is so licensed) under
section 5382(b)(1) of title 31, United States Code, with respect to such
wagers.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id8626E9ABD1C14B87BBE9C290D2DE298B"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to wagers
made after the date of the enactment of this Act.</text>
</subsection></section><enum>III</enum><header>Study and
prevention of problem and pathological gambling</header>
<section id="idB40B25967D7144BCAAD9D66D6924F1C5"><enum>301.</enum><header>Authorization
of programs for identification, prevention, and treatment of problem and
pathological gambling</header><text display-inline="no-display-inline">Section
501(d) of the Public Health Service Act (42 U.S.C. 290aa(d)) is amended—</text>
<paragraph id="IDc76a4c96209a470fa73d163b34368b57"><enum>(1)</enum><text>in paragraph
(17), by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="ID60f7ad47027d46439116000d1a68ebc8"><enum>(2)</enum><text>in paragraph
(18), by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</paragraph><paragraph id="ID87344d22de6f434fa748cbdf7482958c"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idF9087F24F98A45CDB4DFBD1815FF26D1" style="OLC">
<paragraph id="id04B5DC3FE8234C239F30C779BA2F3D97"><enum>(19)</enum><text>establish and
implement programs for the identification, prevention, and treatment of problem
and pathological
gambling.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="ID255625d420d0473fb2f1dd299b4b39d5"><enum>302.</enum><header>Public
awareness, research, and treatment</header><text display-inline="no-display-inline">Section 501 of the Public Health Service Act
(42 U.S.C. 290aa) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idA422D1B402644A859F038AF317EE4712" style="OLC">
<subsection id="IDa15bee0672904229b763464b7120f461"><enum>(p)</enum><header>Public
awareness</header>
<paragraph id="ID95c4e5312ecd4fb2a5004173fd3b56e3"><enum>(1)</enum><header>In
general</header><text>The Secretary shall carry out a national campaign to
increase knowledge and improve awareness with respect to problem gambling
within the general public, including supporting and augmenting existing
national campaigns.</text>
</paragraph><paragraph id="ID2692ae8f01bb43788df59b1f68c93812"><enum>(2)</enum><header>Authorization
of appropriations</header><text>For the purpose of carrying out this
subsection, there is authorized to be appropriated $200,000 for each of fiscal
years 2010 through 2014.</text>
</paragraph></subsection><subsection id="ID40959466e6a147aea6ca4a1990d4f1ad"><enum>(q)</enum><header>Research</header>
<paragraph id="IDc52b606fc0064d009a7e493a3e233015"><enum>(1)</enum><header>In
general</header><text>The President shall establish and implement a national
program of research on problem and pathological gambling.</text>
</paragraph><paragraph id="IDe433918c22a8450a89ffd40f149c8c7a"><enum>(2)</enum><header>Authorization
of appropriations</header><text>For the purpose of carrying out this
subsection, there is authorized to be appropriated $4,000,000 for each of
fiscal years 2010 through 2014.</text>
</paragraph></subsection><subsection id="IDf935a3d44211445893bc4be2c92c99ca"><enum>(r)</enum><header>Treatment</header>
<paragraph id="ID7da82e086f1e4865bfb7e1f415b09597"><enum>(1)</enum><header>Grants</header><text>The
Secretary may make grants to States, local governments, and nonprofit agencies
to provide comprehensive education, prevention, and treatment services with
respect to problem and pathological gambling.</text>
</paragraph><paragraph id="ID0c8457ee671244a6a90f3c6680d2c327"><enum>(2)</enum><header>Authorization
of appropriations</header><text>For the purpose of carrying out this
subsection, there is authorized to be appropriated $10,000,000 for each of
fiscal years 2010 through
2014.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section>