[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3793 Introduced in Senate (IS)]
<DOC>
115th CONGRESS
2d Session
S. 3793
To acknowledge the rights of States with respect to sports wagering and
to maintain a distinct Federal interest in the integrity and character
of professional and amateur sporting contests, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 19, 2018
Mr. Hatch (for himself and Mr. Schumer) introduced the following bill;
which was read twice and referred to the Committee on the Judiciary
_______________________________________________________________________
A BILL
To acknowledge the rights of States with respect to sports wagering and
to maintain a distinct Federal interest in the integrity and character
of professional and amateur sporting contests, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Sports Wagering
Market Integrity Act of 2018''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.
TITLE I--SPORTS WAGERING
Sec. 101. General prohibition on sports wagering.
Sec. 102. State sports wagering program.
Sec. 103. State sports wagering program standards.
Sec. 104. Anti-money laundering provisions.
Sec. 105. Interstate sports wagering compacts.
Sec. 106. National Sports Wagering Clearinghouse.
Sec. 107. Law enforcement coordination.
TITLE II--WAGERING TRUST FUND
Sec. 201. Findings.
Sec. 202. Wagering Trust Fund.
TITLE III--WIRE ACT AND SPORTS BRIBERY ACT AMENDMENTS
Sec. 301. Wire Act clarification and authorization of civil
enforcement.
Sec. 302. Sports Bribery Act improvements.
TITLE IV--GAMBLING ADDICTION PREVENTION AND TREATMENT
Sec. 401. Authority to address gambling in Department of Health and
Human Services authorities.
Sec. 402. Advisory committee.
Sec. 403. Surveillance of gambling addiction.
TITLE V--GENERAL PROVISIONS
Sec. 501. State and Tribal authority.
Sec. 502. Severability.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) In 1992, Congress enacted the Professional and Amateur
Sports Protection Act (Public Law 102-559; 106 Stat. 4227) to
ban sports wagering in most States, finding that ``sports
gambling conducted pursuant to State law threatens the
integrity and character of, and public confidence in,
professional and amateur sports, instills inappropriate values
in the Nation's youth, misappropriates the goodwill and
popularity of professional and amateur sports organizations,
and dilutes and tarnishes the service marks of such
organizations.''.
(2) On May 14, 2018, the Supreme Court of the United States
held in Murphy v. NCAA, 138 S. Ct. 1461 (2018), that the
prohibition of State authorization and licensing of sports
wagering schemes under the Professional and Amateur Sports
Protection Act (Public Law 102-559; 106 Stat. 4227) violates
the 10th Amendment to the Constitution of the United States.
(3) After the decision in Murphy v. NCAA, 138 S. Ct. 1461
(2018), any State may legalize and regulate sports wagering, as
determined by the State, consistent with section 1084 of title
18, United States Code (commonly known as the ``Wire Act''),
section 1955 of that title (commonly known as the ``Illegal
Gambling Business Act''), subchapter IV of title 31, United
States Code (commonly known as the ``Unlawful Internet Gambling
Enforcement Act of 2006''), and other Federal law.
(4) Since the decision in Murphy v. NCAA, 138 S. Ct. 1461
(2018), the States of Delaware, Mississippi, New Jersey, New
Mexico, Pennsylvania, Rhode Island, and West Virginia have
joined the State of Nevada in accepting sports wagers, and more
than 2 dozen other States are considering legislation to
legalize sports wagering.
(5) Even before the decision in Murphy v. NCAA, 138 S. Ct.
1461 (2018), there was a significant legal sports wagering
market in the United States, with $4,870,000,000 wagered on
sports in the State of Nevada in 2017. The legal sports
wagering market will continue to grow as legal sports wagering
becomes more widely available.
(6) Overshadowing the legal sports wagering market is a
much larger illegal sports wagering market that circumvents the
taxation, anti-money laundering controls, and other regulations
of the legal sports wagering market. The American Gaming
Association estimates that people of the United States
illegally bet over $150,000,000,000 annually on United States
sporting events.
(7) The estimated size of the illegal sports wagering
market suggests that the laws and enforcement efforts that for
decades have sought to curtail illegal sports wagering have
come up short.
(8) The expansion of legal sports wagering after the
decision in Murphy v. NCAA, 138 S. Ct. 1461 (2018), presents an
opportunity to significantly reduce the illegal sports wagering
market by pairing enhanced authority for law enforcement to
shut down the illegal sports wagering market with policies that
incentivize participants in the illegal sports wagering market
to shift their activity into the legal sports wagering market,
as available, so that such activity can be appropriately
regulated and taxed.
(9) All forms of gaming have historically been regulated
predominantly at the State level, but sports wagering, which
often involves individuals across numerous States placing
sports wagers on a sporting event that takes place in yet
another State, affects interstate commerce more than other
forms of gaming that are generally contained within the walls
of a gaming establishment.
(10) While each State may decide whether to permit sports
wagering and how to regulate sports wagering, there is an
important role for Congress to set standards for sports
wagering and provide law enforcement with additional authority
to target the illegal sports wagering market and bad actors in
the growing legal sports wagering market.
SEC. 3. DEFINITIONS.
In this Act:
(1) Amateur athletic competition.--The term ``amateur
athletic competition'' has the meaning given the term in
section 220501 of title 36, United States Code.
(2) Anonymized sports wagering data.--With respect to a
sports wager accepted by a sports wagering operator, the term
``anonymized sports wagering data'' means--
(A) a unique identifier for the transaction and, if
available, the individual who placed the sports wager,
except that such identifier shall not include any
personally identifiable information of such individual;
(B) the amount and type of sports wager;
(C) the date and time at which the sports wager was
accepted;
(D) the location at which the sports wager was
placed, including the internet protocol address, if
applicable; and
(E) the outcome of the sports wager.
(3) Gambling disorder.--The term ``gambling disorder''
means--
(A) gambling disorder, as the term is used by the
American Psychiatric Association in the publication
entitled ``Diagnostic and Statistical Manual of Mental
Disorders, 5th Edition'' (or a successor edition);
(B) pathological gambling;
(C) gambling addiction; and
(D) compulsive gambling.
(4) Governmental entity.--The term ``governmental entity''
means--
(A) a State;
(B) a political subdivision of a State; and
(C) an entity or organization, including an Indian
Tribe, that has governmental authority within the
territorial boundaries of the United States, including
Indian lands (as defined in section 4 of the Indian
Gaming Regulatory Act (25 U.S.C. 2703)).
(5) Indian tribe.--The term ``Indian Tribe'' has the
meaning given the term ``Indian tribe'' in section 4 of the
Indian Gaming Regulatory Act (25 U.S.C. 2703).
(6) Interactive sports wagering platform.--The term
``interactive sports wagering platform'' means a person or
entity that offers licensed sports wagering over the internet,
including through an internet website and mobile devices, on
behalf of a licensed gaming facility.
(7) International regulatory entity.--The term
``international regulatory entity'' means any entity
responsible for the regulation of sports wagering outside the
United States.
(8) International sports wagering operator.--
(A) In general.--Except as provided in subparagraph
(B), the term ``international sports wagering
operator'' means any person that--
(i) accepts sports wagers; and
(ii) is located outside the United States.
(B) Exception.--The term ``international sports
wagering operator'' does not include a sports wagering
operator.
(9) Interstate sports wagering compact.--The term
``interstate sports wagering compact'' means a compact to offer
sports wagering in accordance with this Act between--
(A) 2 or more States with a State sports wagering
program;
(B) 1 or more States with a State sports wagering
program and 1 or more Indian Tribes; or
(C) 2 or more Indian Tribes.
(10) Licensed gaming facility.--The term ``licensed gaming
facility'' means a person licensed by a State regulatory entity
or an Indian Tribe licensed by a State regulatory agency.
(11) National exclusion list.--The term ``national
exclusion list'' means the list maintained by the National
Sports Wagering Clearinghouse, in cooperation with State
regulatory entities and sports organizations, under section
106(c)(13).
(12) National self-exclusion list.--The term ``national
self-exclusion list'' means the list maintained and
administered by the National Sports Wagering Clearinghouse, in
cooperation with State regulatory entities, under sections
103(b)(6)(A)(ii) and 106(c)(12).
(13) National sports wagering clearinghouse.--The term
``National Sports Wagering Clearinghouse'' means the entity
designated by the Attorney General under section 106(b).
(14) Official.--The term ``official'' means a referee,
umpire, judge, reviewer, or any other individual authorized to
administer the rules of a sporting event.
(15) Sporting event.--The term ``sporting event'' means any
athletic competition.
(16) Sports organization.--The term ``sports organization''
means--
(A) a person or governmental entity that--
(i) sponsors, organizes, schedules, or
conducts a sporting event; and
(ii) with respect to the sporting event and
the participants in the sporting event--
(I) prescribes final rules; and
(II) enforces a code of conduct;
and
(B) a league or association of 1 or more persons or
governmental entities described in subparagraph (A).
(17) Sports wager.--
(A) In general.--Except as provided in subparagraph
(C), the term ``sports wager'' means the staking or
risking by any person of something of value upon the
outcome of a sporting event, including the outcome of
any portion or aspect thereof, upon an agreement or
understanding that the person or another person will
receive something of value in the event of a certain
outcome.
(B) Inclusion.--With respect to an amateur or
professional sporting event, the term ``sports wager''
includes--
(i) a straight bet;
(ii) a teaser;
(iii) a variation of a teaser;
(iv) a parlay;
(v) a total or over-under;
(vi) a moneyline;
(vii) a betting pool;
(viii) exchange wagering;
(ix) in-game wagering, including in-game
wagering on--
(I) a final or interim game score;
(II) statistics; or
(III) a discrete in-game event;
(x) a sports lottery; and
(xi) a proposition bet.
(C) Exceptions.--The term ``sports wager'' does not
include--
(i) any activity excluded from the
definition of the term bet or wager under
section 5362 of title 31, United States Code;
or
(ii) any activity that does not violate a
provision of the Interstate Horseracing Act of
1978 (15 U.S.C. 3001 et seq.).
(18) Sports wagering.--The term ``sports wagering'' means
the acceptance of a sports wager by a sports wagering operator.
(19) Sports wagering operator.--The term ``sports wagering
operator'' means--
(A) a licensed gaming facility that offers sports
wagering; and
(B) an interactive sports wagering platform.
(20) Sports wagering opt-in state.--The term ``sports
wagering opt-in State'' means a State that administers a State
sports wagering program.
(21) State.--The term ``State'' means--
(A) a State;
(B) the District of Columbia; and
(C) any commonwealth, territory, or possession of
the United States.
(22) State regulatory entity.--The term ``State regulatory
entity'' means the governmental entity--
(A) established or designated by a sports wagering
opt-in State under section 102(a)(2)(A)(ii); and
(B) responsible, solely or in coordination with 1
or more other governmental entities, for the regulation
of sports wagering in the applicable sports wagering
opt-in State.
(23) State social gambling law.--The term ``State social
gambling law'' means a State law that allows sports wagering
that--
(A) is not conducted as a business;
(B) involves 2 or more players who compete on equal
terms; and
(C) does not provide a benefit to--
(i) a player, other than the winnings of
the player; or
(ii) a person who is not involved in a
sports wager.
(24) State sports wagering program.--The term ``State
sports wagering program'' means a program administered and
overseen by a State pursuant to an application approved by the
Attorney General under subsection (b) or (e) of section 102.
(25) Suspicious transaction.--The term ``suspicious
transaction'' means a transaction or an arrangement that a
sports wagering operator or the National Sports Wagering
Clearinghouse, as applicable, knows or has reason to know, as
determined by a director, officer, employee, or agent of the
sports wagering operator or National Sports Wagering
Clearinghouse, is or would be if completed--
(A) a violation of, or part of a plan to violate or
evade, any Federal, State, or local law (including
regulations); or
(B) sports wagering by or on behalf of an
individual described in clause (iii), (iv), or (v) of
section 103(b)(4)(A).
(26) Suspicious transaction report.--The term ``suspicious
transaction report'' means a report submitted to a State
regulatory entity, the National Sports Wagering Clearinghouse,
or a sports organization under section 103(b)(13).
(27) Tribal-state compact.--The term ``Tribal-State
compact'' has the meaning given the term in section 11(d) of
the Indian Gaming Regulatory Act (25 U.S.C. 2710(d)).
TITLE I--SPORTS WAGERING
SEC. 101. GENERAL PROHIBITION ON SPORTS WAGERING.
(a) In General.--Except as provided in subsection (b), it shall be
unlawful for any person to knowingly accept a sports wager.
(b) Exceptions.--It shall not be a violation of subsection (a)
for--
(1) a sports wagering operator located in a sports wagering
opt-in State to accept a sports wager in accordance with State
law; or
(2) a person to accept a sports wager in accordance with an
applicable State social gambling law.
(c) Injunctions.--
(1) In general.--If the Attorney General believes a person
has violated, is violating, or will violate subsection (a), the
Attorney General may bring a civil action in the appropriate
district court of the United States or the appropriate United
States court of a territory or possession of the United States,
which shall have jurisdiction in proceedings in accordance with
the Federal Rules of Civil Procedure to enjoin a violation of
subsection (a).
(2) Jury trial.--In the case of an alleged violation of an
injunction or restraining order issued under paragraph (1),
trial shall be, on demand of the accused, by a jury in
accordance with the Federal Rules of Civil Procedure.
(d) Civil Penalties.--
(1) In general.--Any person who violates this subsection
(a) shall be, with respect to any such violation, subject to a
civil penalty of not more than the greater of $10,000 or 3
times the amount of the applicable sports wager.
(2) Separate violations.--A separate violation occurs for
each sports wager accepted in violation of subsection (a).
(3) Jurisdiction.--The district courts of the United States
and appropriate United States courts of the territories and
possessions of the United States shall have jurisdiction to
enforce this subsection in accordance with section 1355 of
title 28, United States Code.
(4) Effect of law.--A violation of subsection (a) shall not
constitute a crime, and a judgment for the United States and
imposition of a civil penalty pursuant to paragraph (1) shall
not give rise to any disability or legal disadvantage based on
conviction for a criminal offense.
(e) Civil Penalty Not Exclusive of Criminal Penalty.--A civil
penalty, injunction, or temporary restraining order imposed under this
section shall be independent of, and not in lieu of, criminal
prosecutions or any other proceedings under any other law of the United
States, including sections 1084 and 1955 of title 18, United States
Code.
(f) Effective Date.--Subsection (a) shall take effect on the date
that is 18 months after the date of enactment of this Act.
SEC. 102. STATE SPORTS WAGERING PROGRAM.
(a) Initial Application.--
(1) In general.--To request approval to administer a State
sports wagering program, a State shall submit an application to
the Attorney General at such time, in such manner, and
accompanied by such information as the Attorney General may
require.
(2) Contents.--An application under paragraph (1) shall
include--
(A) a full and complete description of the State
sports wagering program the State proposes to
administer under State law, including--
(i) each applicable State law relating to
sports wagering; and
(ii) an identification of the State
regulatory entity; and
(B) an assurance from the attorney general or chief
legal officer of the State that the laws of the State
provide adequate authority to carry out the proposed
State sports wagering program.
(b) Approval by Attorney General.--
(1) In general.--Not later than 180 days after the date on
which the Attorney General receives a complete application
under this section, the Attorney General shall approve the
application unless the Attorney General determines that the
proposed State sports wagering program does not meet the
standards set forth in section 103.
(2) Denial of application.--A decision of the Attorney
General to deny an application submitted under this section
shall--
(A) be made in writing; and
(B) specify the 1 or more standards under section
103 that are not satisfied by the proposed State sports
wagering program.
(c) Notice of Material Changes.--In the case of a material change
to a State law relating to sports wagering, the State regulatory
entity, or other information included in an application submitted
pursuant to subsection (a) or (e), not later than 30 days after the
date on which the change is made, the State shall submit to the
Attorney General a notice of such change.
(d) Duration.--A State sports wagering program shall be valid for a
fixed 3-year period beginning on the date on which the Attorney General
approves the application of the applicable State under subsection (a)
or (e).
(e) Renewal Application and Approval.--Not later than the date on
which the 3-year period referred to in subsection (d) ends, a State
seeking to renew the approval of the State sports wagering program may
submit to the Attorney General a renewal application that--
(1) includes the information described in subsection (a);
and
(2) shall be subject to the approval process under
subsection (b).
(f) Revocation and Review.--
(1) Emergency revocation of approval.--The Attorney General
shall promulgate regulations that provide procedures by which
the Attorney General may revoke the approval of a State to
administer a State sports wagering program before the date on
which the 3-year term described in subsection (d) expires if
the Attorney General finds that the sports wagering program
does not meet 1 or more standards set forth in section 103.
(2) Administrative review.--The Attorney General shall
promulgate regulations that provide procedures by which a State
may seek administrative review of any decision by the Attorney
General--
(A) to deny an application under subsection (b);
(B) to deny a renewal application under subsection
(e); or
(C) to revoke an approval under paragraph (1).
SEC. 103. STATE SPORTS WAGERING PROGRAM STANDARDS.
(a) In General.--The Attorney General shall approve an application
under section 102 unless the Attorney General determines that the
proposed State sports wagering program does not meet the standards set
forth in subsection (b).
(b) Standards for State Sports Wagering Programs.--A State sports
wagering program shall meet each of the following standards:
(1) State regulatory entity.--Establish or designate a
public entity in the applicable State as the State regulatory
entity for the purposes of regulating sports wagering operators
and enforcing sports wagering laws in the State.
(2) Permissible sports wagering.--
(A) In-person sports wagering.--Provide that in-
person sports wagering may be offered only by a sports
wagering operator.
(B) Internet sports wagering.--
(i) In general.--With respect to any
authorization of sports wagering on an
interactive sports wagering platform, provide
that such sports wagering, as available, is
available only to--
(I) individuals located in the
State; or
(II) in the case of an interstate
sports wagering compact approved by the
Attorney General pursuant to section
105, individuals located in States and
on Indian lands (as defined in section
4 of the Indian Gaming Regulatory Act
(25 U.S.C. 2703)) of Indian Tribes that
are party to the compact.
(ii) Location verification.--Include
location verification requirements reasonably
designed to prevent an individual from placing
a sports wager on an interactive sports
wagering platform from a location other than a
location described in clause (i).
(C) Sports wager approval.--
(i) In general.--Provide that a sports
wagering operator shall not accept a sports
wager unless such sports wager or class of
sports wagers is expressly approved by the
State regulatory entity.
(ii) Approval criteria.--Direct the State
regulatory entity to establish criteria for
decisions with respect to the approval of a
sports wager or a class of sports wagers, such
as whether the outcome of the event or
contingency on which the sports wager is placed
is--
(I) verifiable;
(II) generated by a reliable and
independent process; and
(III) unlikely to be affected by
any sports wager placed.
(D) Prohibition of sports wagering on certain
amateur sports.--
(i) In general.--Except as provided in
clause (ii), prohibit the State regulatory
entity from approving or a sports wagering
operator from accepting a sports wager on any
amateur athletic competition.
(ii) Exceptions.--A State regulatory entity
may approve, and a sports wagering operator may
accept, a sports wager, as approved by the
applicable State regulatory entity, on--
(I) the Olympic Games;
(II) the Paralympic Games;
(III) the Pan-American Games; or
(IV) any intercollegiate sport (as
defined in the Sports Agent
Responsibility and Trust Act (15 U.S.C.
7801)).
(3) Restrictions on sports wagering to protect contest
integrity.--
(A) Definition of necessary to maintain contest
integrity.--In this paragraph, the term ``necessary to
maintain contest integrity'' means that, in the absence
of a restriction, there is a reasonably foreseeable
risk that the outcome of the sporting event or
contingency on which the wager is placed would be
affected by the wager.
(B) Contest integrity.--Prohibit a sports wagering
operator from accepting a sports wager in violation of
a notice of restriction received by the sports wagering
operator under subparagraph (E)(i).
(C) Request to restrict sports wagering.--
(i) In general.--With respect to a sporting
events sponsored, organized, or conducted by a
sports organization, permit the sports
organization to submit to the State regulatory
entity a request to restrict, limit, or exclude
wagers on 1 or more sporting events, including
by restricting, limiting, and excluding sports
wagers on 1 or more performances of an athlete
in 1 or more sporting events in which such
athlete participates, if the applicable sports
organization determines that such restriction
is necessary to maintain contest integrity.
(ii) Deadlines for submission.--Provide
that the State regulatory entity shall
establish reasonable deadlines for the
submission of a request under clause (i) in
advance of the applicable sporting event.
(D) Determination by the state regulatory entity.--
Provide that the State regulatory entity shall
promptly--
(i) approve a request described in
subparagraph (C)(i) unless the State regulatory
entity determines, considering any information
provided by the sports organization and any
other relevant information, that a restriction
is not necessary to maintain contest integrity;
(ii) provide a written explanation of a
determination under clause (i) to approve or
deny a request;
(iii) make such written explanation
available to the public; and
(iv) provide a process by which the sports
organization that submitted the request may
seek review of such determination.
(E) Notice of restriction.--Provide that the State
regulatory entity shall establish a process--
(i) to provide to sports wagering operators
prompt notice of any restriction approved by
the State regulatory entity; and
(ii) to make such notice publicly
available.
(4) Prevention of sports wagering by prohibited
individuals.--
(A) Prohibited individuals.--Prohibit a sports
wagering operator from accepting sports wagers from
any--
(i) individual younger than 21 years of
age;
(ii) individual on the national self-
exclusion list;
(iii) athlete, coach, official, or employee
of a sports organization or any club or team of
a sports organization, with respect to a
sporting event sponsored, organized, or
conducted by the sports organization;
(iv) employee of a player or an official
union of a sports organization, with respect to
a sporting event sponsored, organized, or
conducted by the sports organization;
(v) individual who, with respect to a
sporting event sponsored, organized, or
conducted by a sports organization, is--
(I) credentialed or accredited by
the sports organization; and
(II) prohibited from placing a
sports wager by the terms of such
credential or accreditation; or
(vi) individual convicted of an offense
under subsection (a) or (b) of section 224 of
title 18, United States Code.
(B) National exclusion list.--
(i) In general.--Provide that sports
wagering operators shall have access to the
national exclusion list maintained by the
National Sports Wagering Clearinghouse.
(ii) Review.--Establish procedures by which
a resident of the State may seek review by the
State regulatory entity of a decision to
include the individual on the national
exclusion list.
(iii) Reasonable steps required.--Provide
that a sports wagering operator shall take
reasonable steps to prevent the sports wagering
operator from accepting a sports wager from an
individual on the national exclusion list.
(5) Authorized data.--
(A) Result of a sports wager.--
(i) Market transition period.--With respect
to any sports wager accepted on or before
December 31, 2024, provide that a sports
wagering operator shall determine the result of
a sports wager only with data that is licensed
and provided by--
(I) the applicable sports
organization; or
(II) an entity expressly authorized
by the applicable sports organization
to provide such information.
(ii) Post-transition period.--With respect
to any sports wager accepted after December 31,
2024, provide that a sports wagering operator
shall determine the result of a sports wager
only with data that is obtained from a source
that the State regulatory entity has--
(I) found to provide--
(aa) data of substantially
similar speed, accuracy, and
consistency to the data
available under clause (i); and
(bb) only data that is--
(AA) legally
obtained; and
(BB) in full
compliance with the
terms of any applicable
contract or license;
(II) expressly authorized to
provide such data to sports wagering
operators; and
(III) identified in the application
of the State regulatory entity under
section 102.
(B) Other purposes.--Provide that the statistics,
result, outcome, or other data used by a sports
wagering operator for a purpose other than to determine
the result of a sports wager shall be in the public
domain or otherwise legally obtained.
(6) Consumer protections.--
(A) Self-exclusion.--
(i) State self-exclusion list.--Provide a
process by which an individual may restrict
himself or herself from placing a sports wager
with a sports wagering operator located in the
State, including by imposing sports wager
limits.
(ii) National self-exclusion list.--
Provide, through the State regulatory entity
acting in cooperation with the National Sports
Wagering Clearinghouse, a process by which an
individual may restrict himself or herself from
placing a sports wager with a sports wagering
operator located in any sports wagering opt-in
State, including by imposing sports wager
limits, and placing himself or herself on the
national self-exclusion list.
(iii) Reasonable steps required.--Provide
that a sports wagering operator shall take
reasonable steps to prevent from placing a
sports wager an individual who is--
(I) described in clause (i); or
(II) included on the national self-
exclusion list.
(B) Withdrawal restrictions.--Prohibit a sports
wagering operator from--
(i) requiring an individual engaged in
sports wagering to participate in a publicity
or an advertising activity of the sports
wagering operator as a condition of withdrawal
of the winnings of the individual; and
(ii) imposing on any individual engaged in
sports wagering--
(I) a minimum or maximum withdrawal
limit for the account of the
individual;
(II) any restriction on the right
of the individual to make a withdrawal
from the account of the individual
based on the extent of the sports
wagering by the individual;
(III) an unreasonable deadline for
the provision of information relating
to the identity of the individual as a
condition of withdrawal from the
account of the individual; or
(IV) a dormancy charge for an
account of the individual that is not
used to place a sports wager.
(C) Disclosure.--
(i) Restrictions or conditions.--Provide
that a sports wagering operator shall provide
an individual with adequate and clear
information relating to any applicable
restriction or condition before the individual
opens an account with the sports wagering
operator.
(ii) Bonuses offered.--Provide that a
sports wagering operator shall provide to an
individual engaged in sports wagering clear
information relating to any bonus offered,
including the terms of withdrawal of the bonus.
(iii) Public availability.--Provide that
the information described in clauses (i) and
(ii) be available to the public.
(D) Treatment and education funding.--Provide that
a sports wagering operator shall allocate an
appropriate percentage of the revenue from sports
wagering to--
(i) treatment for gambling disorder; and
(ii) education on responsible gaming.
(E) Reserve requirement.--Provide that a sports
wagering operator shall maintain a reserve in an amount
not less than the sum of--
(i) the amounts held by the sports wagering
operator for the account of patrons;
(ii) the amounts accepted by the sports
wagering operator as sports wagers on
contingencies the outcomes of which have not
been determined; and
(iii) the amounts owed but unpaid by the
sports wagering operator on winning wagers
during the period for honoring winning wagers
established by State law or the sports wagering
operator.
(7) Advertising.--Provide that advertisements for a sports
wagering operator--
(A) shall--
(i) disclose the identity of the sports
wagering operator; and
(ii) provide information about how to
access resources relating to gambling
addiction; and
(B) shall not recklessly or purposefully target--
(i) problem gamblers;
(ii) individuals suffering from gambling
disorder; or
(iii) individuals who are ineligible to
place a sports wager, including individuals
younger than 21 years of age.
(8) Licensing requirement.--
(A) In general.--Provide that a sports wagering
operator located in the State shall be licensed by the
State regulatory entity.
(B) Suitability for licensing.--
(i) In general.--Provide that before
granting a license to a prospective sports
wagering operator, the State regulatory entity
shall, make a determination, based on a
completed background check and investigation,
with respect to whether the prospective sports
wagering operator and any person considered to
be in control of the prospective sports
wagering operator is suitable for license in
accordance with suitability standards
established by the State regulatory entity.
(ii) Associates of applicants.--Provide
that if a prospective sports wagering operator
is a corporation, partnership, or other
business entity, a background check and
investigation shall occur with respect to--
(I) the president or other chief
executive of the corporation,
partnership, or other business entity;
and
(II) any other partner or senior
executive and director of the
corporation, partnership, or other
business entity, as determined by the
State regulatory entity.
(iii) Background check and investigation.--
Establish standards and procedures for
conducting the background checks and
investigations described in this subparagraph.
(C) Unsuitability for licensing.--With respect to
the suitability standards under in subparagraph (B)(1),
provide that a prospective sports wagering operator
shall not be determined to be suitable for licensing as
a sports wagering operator if the prospective sports
wagering operator--
(i) has failed to provide information and
documentary material for a determination of
suitability for licensing as a sports wagering
operator;
(ii) has supplied information which is
untrue or misleading as to a material fact
pertaining to any such determination;
(iii) has been convicted of an offense
punishable by imprisonment of more than 1 year;
(iv) is delinquent in--
(I) filing any applicable Federal
or State tax returns; or
(II) the payment of any taxes,
penalties, additions to tax, or
interest owed to the United States or a
State;
(v) on or after October 13, 2006--
(I) has knowingly participated in,
or should have known the prospective
sports wagering operator was
participating in, an illegal internet
gambling activity, including--
(aa) taking an illegal
internet wager;
(bb) payment of winnings on
an illegal internet wager;
(cc) promotion through
advertising of an illegal
internet gambling website or
service; or
(dd) collection of any
payment on behalf of an entity
operating an illegal internet
gambling website; or
(II) has knowingly been owned,
operated, managed, or employed by, or
should have known the prospective
sports wagering operator was owned,
operated, managed, or employed by, any
person who was knowingly participating
in, or should have known the person was
participating in, an illegal internet
gambling activity, including an
activity described in items (aa)
through (dd) of subclause (I);
(vi) has--
(I) received any assistance,
financial or otherwise, from a person
who has, before the date of enactment
of this Act, knowingly accepted bets or
wagers from any other person who is
physically present in the United States
in violation of Federal or State law;
or
(II) provided any assistance,
financial or otherwise, to a person who
has, before the date of enactment of
this Act, knowingly accepted bets or
wagers from any other person who is
physically present in the United States
in violation of Federal or State law;
(vii) with respect to any other entity that
has accepted a bet or wager from any individual
in violation of United States law, has
purchased or otherwise obtained--
(I) such entity;
(II) a list of the customers of
such entity; or
(III) any other part of the
equipment or operations of such entity;
or
(viii) fails to certify in writing, under
penalty of perjury, that the applicant or other
such person, and all affiliated business
entities (including all entities under common
control), during the entire history of such
applicant or other such person and all
affiliated business entities--
(I) have not committed an
intentional felony violation of Federal
or State sports wagering law; and
(II) have used diligence to prevent
any United States person from placing a
sports wager on an internet site in
violation of Federal or State sports
wagering laws.
(D) Revocation and suspension.--Establish standards
and procedures for suspending or revoking the license
of a sports wagering operator.
(9) Employee background checks.--Provide that a sports
wagering operator--
(A) shall ensure that each existing and newly hired
employee or contractor of the sports wagering operator
undergo an annual criminal history background check;
and
(B) shall not employ or enter into a contract with
any individual who has been convicted of a Federal or
State crime relating to sports wagering.
(10) Recordkeeping requirements.--
(A) In general.--Except as provided in subparagraph
(B), with respect to each sports wager accepted by a
sports wagering operator or attempted to be placed by
an individual with a sports wagering operator, provide
that the sports wagering operator shall secure and
maintain a record of the following:
(i) The name, permanent address, date of
birth, and social security number or passport
number of the individual who placed, or
attempted to place, the sports wager, which the
sports wagering operator shall verify in
accordance with the requirements for
verification of identity in parts 1010.312 and
1021.312 of title 31, Code of Federal
Regulations (or successor regulations).
(ii) The amount and type of the sports
wager.
(iii) The date and time at which the sports
wager was placed or attempted to be placed.
(iv) The location at which the sports wager
was placed or attempted to be placed, including
the internet protocol address, if applicable.
(v) The outcome of the sports wager.
(B) Exception.--Provide that a sports wagering
operator shall not be required to maintain a record of
the information described in subparagraph (A) if--
(i) the sports wager is not placed by an
individual through an account with the sports
wagering operator;
(ii) the amount of the sports wager does
not exceed $10,000;
(iii) the sports wagering operator and any
officer, employee, or agent of the sports
wagering operator does not have knowledge, or
would not in the ordinary course of business
have reason to have knowledge, that the sports
wager is one of multiple sports wagers placed
by an individual or on behalf of an individual
during one day that are, in the aggregate, in
excess of $10,000; and
(iv) the sports wagering operator is not
required, pursuant to section 31.3402(q)-1 of
title 26, Code of Federal Regulations (or a
successor regulation), to furnish a Form W-2G
to the individual who placed the sports wager
with respect to winnings from the sports wager.
(C) Records relating to suspicious transactions.--
Provide that, in addition to the records required to be
maintained pursuant paragraph (A), a sports wagering
operator shall be required to maintain any other
records relating to a suspicious transaction, including
video recordings, in the possession, custody, or
control of the sports wagering operator.
(D) Duration of recordkeeping obligation.--Provide
that a sports wagering operator shall be required to
maintain each record required under this paragraph for
not less than 5 years after the date on which the
record is created.
(11) Data security.--Provide that a sports wagering
operator and the State regulatory entity shall take reasonable
steps to prevent unauthorized access to, or dissemination of,
sports wagering and customer data.
(12) Real-time information sharing.--Provide that a sports
wagering operator shall provide to the National Sports Wagering
Clearinghouse anonymized sports wagering data in real-time or
as soon as practicable, but not later than 24 hours, after the
time at which a sports wager is accepted by the sports wagering
operator.
(13) Suspicious transaction reporting.--
(A) Reporting to state regulatory entity.--Provide
that each sports wagering operator located in the State
shall promptly report the information described in
paragraph (10)(A) for any suspicious transaction to the
State regulatory entity, in such manner and accompanied
by such additional information as the State regulatory
entity may require.
(B) Reporting to the national sports wagering
clearinghouse and sports organizations.--
(i) In general.--Subject to clause (ii),
provide that a sports wagering operator shall
simultaneously transmit to the National Sports
Wagering Clearinghouse, applicable sports
organization, and any component of the
Department of Justice or other Federal law
enforcement entity designated by the Attorney
General to receive such reports, any suspicious
transaction report submitted to a State
regulatory entity under subparagraph (A).
(ii) Personally identifiable information.--
(I) In general.--Except as provided
in subclause (II), a suspicious
transaction report submitted to the
National Sports Wagering Clearinghouse
or a sports organization shall not
contain any personally identifiable
information relating to any individual
who placed, or attempted to place, a
sports wager.
(II) Exception.--A suspicious
transaction report submitted to the
National Sports Wagering Clearinghouse
or a sports organization shall include
any available personally identifiable
information relating to an individual
described in clause (iii), (iv), or (v)
of paragraph (4)(A).
(14) Monitoring and enforcement.--
(A) In general.--Provide that the State regulatory
entity, in consultation with law enforcement, shall
develop and implement a strategy to enforce the sports
wagering laws of the State.
(B) Authority to monitor and enforcement.--Provide
adequate authority to the State regulatory entity and
law enforcement, as appropriate, to monitor compliance
with and enforce the sports wagering laws of the State,
including--
(i) the authority and responsibility to
conduct periodic audits and inspect the books
and records of each sports wagering operator
located or operating in the State; and
(ii) a requirement that the State
regulatory entity shall refer evidence of
potential criminal violations to the
appropriate law enforcement entity.
(15) Cooperation with investigations.--
(A) Sports wagering operators.--Provide that any
sports wagering operator located or operating in the
State shall cooperate with any lawful investigation
conducted by--
(i) the State regulatory entity;
(ii) Federal or State law enforcement; or
(iii) a sports organization, with respect
to a sports wager--
(I) on a sporting event sponsored,
organized, or conducted by the sports
organization;
(II) placed by or on behalf of an
individual described in clause (iii),
(iv), or (v) of paragraph (4)(A); and
(III) accepted by the sports
wagering operator.
(B) State regulatory entity.--Provide that the
State regulatory entity shall cooperate with any lawful
investigation conducted by--
(i) Federal or State law enforcement; or
(ii) a sports organization, with respect to
a sports wager--
(I) on a sporting event sponsored,
organized, or conducted by the sports
organization; and
(II) accepted by a sports wagering
operator located or operating in the
State.
(16) Internal controls.--
(A) In general.--Provide that each sports wagering
operator shall devise and maintain a system of internal
controls sufficient to provide reasonable assurances
that sports wagers are accepted in accordance with all
applicable laws, regulations, and policies.
(B) Minimum standards.--Provide that the State
regulatory entity shall adopt and publish minimum
standards for internal control procedures.
(C) Report.--Provide that each sports wagering
operator shall submit to the State regulatory entity
not less frequently than annually the written system of
internal controls of the sports wagering operator.
(D) Audit.--Provide that system of internal
controls of a sports wagering operator shall be
evaluated on a periodic basis, but not less frequently
than every 3 years, by the State regulatory entity or
an independent third-party auditor.
SEC. 104. ANTI-MONEY LAUNDERING PROVISIONS.
(a) Bank Secrecy Act.--Section 5312(a)(2)(X) of title 31, United
States Code, is amended--
(1) in the matter preceding clause (i), by inserting
``sports wagering operator (as defined in section 3 of the
Sports Wagering Market Integrity Act of 2018),'' after
``gambling casino,''; and
(2) in clause (i), by inserting ``sports wagering
operator,'' after ``gambling casino,''.
(b) Rules for Sports Wagering Operators.--Not later than 180 days
after the date of enactment of this Act, the Secretary of the Treasury
shall amend--
(1) part 1021 of title 31, Code of Federal Regulations, to
provide that sports wagering operators shall be treated the
same as casinos with respect to any requirement under that
part; and
(2) sections 1010.312, 1021.311, and 1021.312 of title 31,
Code of Federal Regulations, to specifically address the means
by which a sports wagering operator shall, under each such
section, verify the identity of an individual who conducts a
transaction described in that section over the internet.
(c) Application.--
(1) Definition.--In this subsection, the term ``Bank
Secrecy Act'' means subchapter II of chapter 53 of title 31,
United States Code.
(2) Effect of compliance with state requirements.--The
submission of a suspicious transaction report to a State
regulatory entity, the National Sports Wagering Clearinghouse,
or a sports organization shall not be considered to violate--
(A) any provision of the Bank Secrecy Act; or
(B) any regulation promulgated under the Bank
Secrecy Act that limits the disclosure of information
that would reveal the existence of a suspicious
activity report filed with the Financial Crimes
Enforcement Network under chapter X of title 31, Code
of Federal Regulations.
SEC. 105. INTERSTATE SPORTS WAGERING COMPACTS.
(a) In General.--Each sports wagering opt-in State may enter into
such interstate sports wagering compact as may be necessary to provide
for sports wagering on an interactive sports wagering platform between
and among individuals located in any State that is party to such
compact.
(b) Effective Date.--The effective date of an interstate sports
wagering compact entered into under subsection (a), or any amendment of
such interstate sports wagering compact, shall be not earlier than 90
days after the date on which such interstate sports wagering compact or
amendment is approved by the Attorney General under subsection (c).
(c) Attorney General Review.--
(1) In general.--The parties to an interstate sports
wagering compact shall submit to the Attorney General a copy of
the interstate sports wagering compact at such time, in such
manner, and accompanied by such information as the Attorney
General may require.
(2) Effect on state sports wagering programs.--In addition
to any other information required by the Attorney General, each
party to an interstate sports wagering compact submitted to the
Attorney General under paragraph (1) shall provide to the
Attorney General a full and complete description of any changes
or proposed changes to be made to the sports wagering program
of the State to comply with the terms of the interstate sports
wagering compact.
(3) Approval by attorney general.--Not later than 180 days
after the Attorney General receives an interstate sports
wagering compact and any other information required under this
subsection, the Attorney General shall approve the interstate
sports wagering compact unless the Attorney General determines
that--
(A) the terms of such interstate sports wagering
compact conflict with this Act or any other Federal
law;
(B) any change to a State sports wagering program
submitted to the Attorney General under paragraph (2)
does not meet the standards set forth in section 103;
or
(C) such interstate sports wagering compact would
permit a sports wagering operator or an individual
located in any State party to the compact to accept or
place a sports wager from or in another State through
an interactive sports wagering platform that the sports
wagering operator or individual would have been
prohibited from accepting or placing in the State in
which the individual is located, but for the interstate
sports wagering compact.
(4) Denial by attorney general.--A decision of the Attorney
General not to approve an interstate sports wagering compact
submitted under paragraph (3) shall--
(A) be made in writing; and
(B) specify the reason that the interstate sports
wagering compact was not approved.
(5) Modification.--Any proposed amendment to an interstate
sports wagering compact shall be submitted by the parties and
reviewed by the Attorney General in the same manner as an
interstate sports wagering compact under this subsection.
(6) Administrative review.--The Attorney General shall
promulgate regulations that provide procedures by which a party
to an interstate sports wagering compact may seek
administrative review of any decision by the Attorney General
not to approve an interstate sports wagering compact or
amendment under this subsection.
SEC. 106. NATIONAL SPORTS WAGERING CLEARINGHOUSE.
(a) In General.--An entity designated as the National Sports
Wagering Clearinghouse shall--
(1) be a nonprofit organization that--
(A) is not owned by any other entity; and
(B) is established for the purpose of carrying out
the activities described in subsection (c);
(2) have articles of incorporation, a constitution, bylaws,
or any other governing document that establishes and maintains
provisions with respect to the governance and conduct of the
affairs of the National Sports Wagering Clearinghouse for
reasonable representation of--
(A) sports wagering operators;
(B) sports organizations;
(C) State regulatory entities;
(D) Federal and State law enforcement; and
(E) 1 or more individuals not affiliated or
associated with an entity described in subparagraphs
(A) through (D) who, in the judgment of the Attorney
General, represent the interests of the United States
public in the activities of the National Sports
Wagering Clearinghouse;
(3) demonstrate to the Attorney General that the National
Sports Wagering Clearinghouse has or will have the
administrative and technological capabilities to carry out the
activities described in subsection (c); and
(4) be designated by the Attorney General in accordance
with subsection (b).
(b) Designation of National Sports Wagering Clearinghouse.--
(1) Initial designation.--
(A) Solicitation of information.--Not later than 90
days after the date of enactment of this Act, the
Attorney General shall publish in the Federal Register
a notice soliciting information to assist in
identifying an appropriate entity to serve as the
National Sports Wagering Clearinghouse.
(B) Designation.--Not later than 270 days after the
date of enactment of this Act and after reviewing the
information requested under subparagraph (A), the
Attorney General shall make an initial designation of
the National Sports Wagering Clearinghouse.
(C) Publication.--Not later than 300 days after the
date of enactment of this Act, the Attorney General
shall publish in the Federal Register a notice setting
forth the identity of, and contact information for, the
National Sports Wagering Clearinghouse designated under
subparagraph (B).
(2) Periodic review of designation.--
(A) In general.--Not less frequently than every
fifth January beginning in the fifth calendar year
after the initial designation under paragraph (1)(B),
the Attorney General shall publish in the Federal
Register a notice soliciting information relating to
whether--
(i) the existing designation should be
continued; or
(ii) a different entity meeting the
criteria described in paragraphs (1) through
(3) of subsection (a) should be designated as
the National Sports Wagering Clearinghouse.
(B) Publication.--After the publication of the
notice under subparagraph (A), a review of the
information submitted pursuant to the notice, and any
additional proceedings as the Attorney General
considers appropriate, the Attorney General shall
publish in the Federal Register a notice--
(i) continuing the existing designation; or
(ii) designating another entity as the
National Sports Wagering Clearinghouse.
(C) Effective date of new designation.--A new
designation under subparagraph (B)(ii) shall be
effective as of the first day of the month that is not
less than 180 days and not more than 270 days after the
date of publication of the notice under subparagraph
(B), as specified by the Attorney General.
(c) Authorities and Functions.--The National Sports Wagering
Clearinghouse shall--
(1) operate the official national resource center and
information clearinghouse for sports wagering integrity;
(2) coordinate public and private programs and resources
relating to--
(A) sports wagering integrity;
(B) practices for responsible betting; and
(C) addressing gambling disorder;
(3) contribute to and disseminate, on a national basis,
information relating to best practices and model programs and
resources that benefit--
(A) sports wagering integrity;
(B) responsible betting; and
(C) responses to gambling disorder;
(4) operate a national repository of anonymized sports
wagering data and suspicious transaction reports;
(5) receive from sports wagering operators anonymized
sports wagering data and suspicious transaction reports;
(6) promptly make available to State regulatory entities
anonymized sports wagering data and suspicious transaction
reports received from sports wagering operators;
(7) with respect to sporting events sponsored, organized,
or conducted by a sports organization, promptly make available
to the applicable sports organization anonymized sports
wagering data and suspicious transaction reports received from
sports wagering operators;
(8) enter into memoranda of understanding or such other
agreements with public or private third parties as may be
necessary to provide for the sharing of anonymized sports
wagering data and suspicious transaction reports under
paragraphs (5) through (7) and other information between the
National Sports Wagering Clearinghouse and--
(A) sports wagering operators;
(B) sports organizations;
(C) State regulatory entities;
(D) Federal and State law enforcement; and
(E) an international regulatory entity or
international law enforcement, with respect to
anonymized sports wagering data and suspicious
transaction reports relating to sporting events that
occur--
(i) outside the United States; and
(ii) within the jurisdiction of the
international regulatory entity or
international law enforcement;
(9) receive from international sports wagering operators,
international regulatory entities, or international law
enforcement any information such entities make available to the
National Sports Wagering Clearinghouse;
(10) analyze anonymized sports wagering data received under
paragraph (5) for the purpose of identifying patterns, trends,
and irregularities that may indicate potential violations of
Federal or State law, which shall be referred to the
appropriate sports organization, State regulatory entity, and
Federal or State law enforcement;
(11) provide technical assistance and consultation to
sports wagering operators, sports organizations, State
regulatory entities, and Federal and State law enforcement to
assist in--
(A) the identification of suspicious sports
wagering activity; and
(B) the prevention, investigation, and prosecution
of cases relating to unlawful sports wagering or any
other activity relating to sports wagering that may
threaten the integrity of sporting events;
(12) in cooperation with State regulatory entities,
maintain and administer--
(A) the national self-exclusion list; and
(B) the process by which an individual may add or
remove himself or herself from the national self-
exclusion list;
(13) in cooperation with State regulatory entities and
sports organizations, maintain and make available to sports
wagering operators the national exclusion list, which shall
include any individual--
(A) identified to the National Sports Wagering
Clearinghouse by an appropriate sports organization as
an individual described in clause (iii), (iv), or (v)
of section 103(b)(4)(A);
(B) included on the national self-exclusion list;
or
(C) identified to the National Sports Wagering
Clearinghouse by the Attorney General as having been
convicted of any offense under section 224(a) or (b) of
title 18, United States Code;
(14) establish procedures by which any individual may
determine--
(A) whether the individual is included on the
national exclusion list; and
(B) the reason the individual is included on the
national exclusion, including, as applicable, the
sports organization or State regulatory entity that
provided the name of the individual for inclusion on
the national exclusion list;
(15) coordinate with the National Council on Problem
Gambling and other organizations, as appropriate, to develop
and disseminate information relating to best practices and
model programs and resources for--
(A) ensuring appropriate consumer protections; and
(B) the prevention of, intervention and treatment
for, and recovery from gambling disorder; and
(16) any other activity considered by the National Sports
Wagering Clearinghouse to be necessary to carry out an activity
described in this subsection.
(d) Permitted Disclosures by the National Sports Wagering
Clearinghouse.--The National Sports Wagering Clearinghouse may only
disclose information received under subsection (c)(5) to--
(1) a State regulatory entity;
(2) a Federal or State law enforcement agency;
(3) with respect to sporting events sponsored, organized,
or conducted by a sports organization, the sports organization;
and
(4) an international regulatory entity or international law
enforcement, with respect to anonymized sports wagering data
and suspicious transaction reports relating to sporting events
that occur--
(A) outside the United States; and
(B) within the jurisdiction of the international
regulatory entity or international law enforcement.
(e) Annual Report.--
(1) In general.--Not less frequently than annually, the
National Sports Wagering Clearinghouse shall submit to the
Attorney General, the Committee on the Judiciary and the
Committee on Commerce, Science, and Transportation of the
Senate, and the Committee on the Judiciary and the Committee on
Energy and Commerce of the House of Representatives a report on
the operations of the National Sports Wagering Clearinghouse
that includes a description of the activities of the National
Sports Wagering Clearinghouse with respect to each function and
authority under subsection (c).
(2) Public availability.--The reports required under
paragraph (1) shall be made available to the public.
(f) Annual Grant to National Sports Wagering Clearinghouse.--
(1) In general.--Not less frequently than annually, the
Attorney General shall make a grant to the National Sports
Wagering Clearinghouse for the purposes described in this
section.
(2) Funds.--The grants required under paragraph (1) shall
be made with amounts made available under section 9511(c)(3)(A)
of the Internal Revenue Code of 1986.
(g) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated
for each of fiscal years 2019 through 2021, such sums as may be
necessary to carry out this section, but not more than the
amount that is the lesser of--
(A) $3,000,000; and
(B) the revenue collected during the preceding
fiscal year pursuant to the Federal excise tax on
sports wagering under sections 4401 and 4411 of the
Internal Revenue Code of 1986.
(2) Sense of congress.--It is the sense of Congress that--
(A) any funds appropriated to carry out this
section shall not be the sole or primary source of
funding to operate the National Sports Wagering
Clearinghouse; and
(B) the National Sports Wagering Clearinghouse
should primarily be funded through voluntary
contributions by, or reasonable fees assessed by the
National Sports Wagering Clearinghouse to participating
entities, such as sports wagering operators, sports
organizations, and State regulatory entities.
SEC. 107. LAW ENFORCEMENT COORDINATION.
The Attorney General, in coordination with the Secretary of the
Treasury and appropriate Federal law enforcement agencies, shall
establish procedures to ensure coordination among Federal law
enforcement, State law enforcement, State regulatory entities, and the
National Sports Wagering Clearinghouse to identify and respond to
illegal or suspicious activity in the sports wagering market
nationwide.
TITLE II--WAGERING TRUST FUND
SEC. 201. FINDINGS.
Congress makes the following findings:
(1) A Federal excise tax on sports wagering was established
in 1951.
(2) Over time, the Federal excise tax has ranged from a
high of 10 percent of total handle for State-authorized wagers
to a low of 0.25 percent, at which level the Federal excise tax
has remained since 1982.
(3) Revenue from the Federal excise tax--
(A) is estimated to be $12,000,000 annually and is
expected to increase as legal sports wagering becomes
more widely available; and
(B) on sports wagering should be dedicated to
purposes relating to sports wagering, specifically to--
(i) the enforcement of Federal law relating
to sports wagering; and
(ii) programs for the prevention and
treatment of gambling disorder.
SEC. 202. WAGERING TRUST FUND.
(a) In General.--Subchapter A of chapter 98 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new section:
``SEC. 9511. WAGERING TRUST FUND.
``(a) Creation of Trust Fund.--There is established in the Treasury
of the United States a trust fund to be known as the `Wagering Trust
Fund', consisting of such amounts as may be apportioned or credited to
such Trust Fund as provided in this section or section 9602(b).
``(b) Transfers to Trust Fund.--There are hereby appropriated to
the Wagering Trust Fund amounts equivalent to the taxes received in the
Treasury under sections 4401 and 4411 for taxable years beginning after
December 31, 2017.
``(c) Expenditures.--
``(1) Surveillance of gambling addiction.--There shall be
available without further appropriation an amount not to exceed
$5,000,000 for each of fiscal years 2019 through 2029 to the
Secretary of Health and Human Services to carry out section
317U of the Public Health Service Act, to remain available
until expended.
``(2) Department of justice.--
``(A) National sports wagering clearinghouse.--
There shall be available without further appropriation
an amount not to exceed $3,000,000 for each of fiscal
years 2019 through 2021 to the Attorney General for the
purpose of making grants to the National Sports
Wagering Clearinghouse established under section 106(b)
of the Sports Wagering Market Integrity Act of 2018, to
remain available until expended.
``(B) Other purposes.--Amounts in the Wagering
Trust Fund not appropriated under paragraph (1) or (2)
or subparagraph (A) shall be available, as provided in
appropriation Acts, only for use by the Attorney
General for the investigation or prosecution of--
``(i) violations of the standards for the
acceptance of sports wagers under section 101
of the Sports Wagering Market Integrity Act of
2018,
``(ii) bribery to which section 224 of
title 18, United States Code, applies,
``(iii) illegal transmission of wagering
information to which section 1084 of such title
applies,
``(iv) activities to which section 1955 of
such title applies,
``(v) violation of any provision of
subchapter IV of chapter 53 of title 31, United
States Code,
``(vi) violations under the Bank Secrecy
Act (Public Law 91-508; 84 Stat. 1114) which
involve sports wagering, and
``(vii) any other crime which is committed
incident to or is part of a scheme involving
any crime or violation described in the
preceding clauses.''.
(b) Clerical Amendment.--The table of sections for subchapter A of
chapter 98 of the Internal Revenue Code of 1986 is amended by adding at
the end the following new item:
``Sec. 9511. Wagering Trust Fund.''.
TITLE III--WIRE ACT AND SPORTS BRIBERY ACT AMENDMENTS
SEC. 301. WIRE ACT CLARIFICATION AND AUTHORIZATION OF CIVIL
ENFORCEMENT.
Section 1084 of title 18, United States Code, is amended--
(1) in subsection (b)--
(A) by striking ``for the transmission of
information assisting'' and inserting ``for the
transmission of a sports wager accepted pursuant to an
interstate sports wagering compact (as defined in
section 3 of the Sports Wagering Market Integrity Act
of 2018), layoff bet or wager, or information
assisting''; and
(B) by adding at the end the following: ``For
purposes of this section, the intermediate routing of
electronic data shall not determine the location or
locations in which a bet or wager, or information
assisting in the placing of a bet or wager, is
initiated, received, or otherwise made.'';
(2) by redesignating subsection (e) as subsection (g);
(3) by inserting after subsection (d) the following:
``(e) State Cause of Action.--
``(1) In general.--In any case in which a State has reason
to believe that an interest of the residents of the State has
been or is being threatened or adversely affected by the
conduct of a person that violates this section, the State may
bring a civil action on behalf of those residents in an
appropriate district court of the United States to enjoin the
conduct.
``(2) Service, intervention.--
``(A) Service.--
``(i) Prior service.--Before filing a
complaint under paragraph (1), the State shall
serve a copy of the complaint upon the Attorney
General and the United States Attorney for the
judicial district in which the complaint is to
be filed.
``(ii) Concurrent service.--If prior
service under clause (i) is not feasible, the
State shall serve the complaint on the Attorney
General and the appropriate United States
Attorney on the day on which the State files
the complaint in an appropriate district court
of the United States.
``(iii) Relation to criminal proceedings.--
A proceeding under paragraph (1) shall be
independent of, and not in lieu of, a criminal
prosecution or any other proceeding under this
section or any other law of the United States.
``(B) Intervention.--The United States may--
``(i) intervene in a civil action brought
by a State under paragraph (1); and
``(ii) upon intervening--
``(I) be heard on all matters
arising in the civil action; and
``(II) file petitions for appeal of
a decision in the civil action.
``(C) Federal rules of civil procedure.--The
Federal Rules of Civil Procedure shall apply to service
of a complaint on the United States under this
paragraph.
``(3) Powers conferred by state law.--For purposes of a
civil action brought under paragraph (1), nothing in this
chapter shall prevent an attorney general of a State from
exercising the powers conferred on the attorney general by the
laws of the State to--
``(A) conduct investigations;
``(B) administer oaths or affirmations; or
``(C) compel--
``(i) the attendance of witnesses; or
``(ii) the production of documentary or
other evidence.
``(4) Venue; service of process.--
``(A) Venue.--A civil action brought under
paragraph (1) may be brought in--
``(i) the district court of the United
States for the judicial district in which the
defendant--
``(I) is found;
``(II) is an inhabitant; or
``(III) transacts business; or
``(ii) any judicial district in which venue
is proper under section 1391 of title 28.
``(B) Service of process.--In an action brought
under paragraph (1), process may be served in any
judicial district in which the defendant--
``(i) is an inhabitant; or
``(ii) may be found.
``(5) No private right of action.--Nothing in this
subsection shall be construed to create any private right of
action.
``(6) Limitation.--A civil action may not be brought under
paragraph (1) against--
``(A) the United States; or
``(B) any employee or agent of the United States if
the employee or agent is acting--
``(i) in the usual course of business or
employment; and
``(ii) within the scope of the official
duties of the employee or agent.
``(f) Enhancing Enforcement Against Unlicensed, Offshore Sports
Wagering Websites.--
``(1) Commencement of an action.--
``(A) In personam.--The Attorney General may bring
an action against--
``(i) a registrant of a nondomestic domain
name used by an internet site dedicated to
unlicensed sports wagering; or
``(ii) an owner or operator of an internet
site dedicated to unlicensed sports wagering
accessed through a nondomestic domain name.
``(B) In rem.--If through due diligence the
Attorney General is unable to find a person described
in clause (i) or (ii) of subparagraph (A), or no such
person found has an address within a judicial district
of the United States, the Attorney General may bring an
in rem action against a nondomestic domain name used by
an internet site dedicated to unlicensed sports
wagering.
``(C) Identification of entities.--In an action
brought under this paragraph, the Attorney General
shall, in the complaint or an amendment thereto,
identify the entities that may be required to take
actions under paragraph (4) if an order issues under
paragraph (2).
``(2) Orders of the court.--
``(A) In general.--On application of the Attorney
General following the commencement of an action under
paragraph (1), the court may issue a temporary
restraining order, a preliminary injunction, or an
injunction, in accordance with rule 65 of the Federal
Rules of Civil Procedure, against the nondomestic
domain name used by an internet site dedicated to
unlicensed sports wagering, or against a registrant of
that domain name, or the owner or operator of the
internet site dedicated to unlicensed sports wagering,
to cease and desist from undertaking any further
activity as an internet site dedicated to unlicensed
sports wagering, if--
``(i) the domain name is used within the
United States to access the internet site; and
``(ii) the internet site--
``(I) conducts business directed to
residents of the United States; and
``(II) violates this section.
``(B) Determination by the court.--For purposes of
determining whether an internet site conducts business
directed to residents of the United States under
subparagraph (A)(ii)(I), a court may consider, among
other indicia, whether--
``(i) there is evidence that the internet
site is not intended to provide unlicensed
sports wagering to users located in the United
States;
``(ii) the internet site has reasonable
measures in place to prevent unlicensed sports
wagering from being accessed from the United
States; and
``(iii) the internet site offers unlicensed
sports wagering on sporting events that take
place in the United States.
``(3) Notice and service of process.--
``(A) In general.--Upon commencing an action under
paragraph (1), the Attorney General shall send a notice
of the alleged violation and intent to proceed under
this subsection to the registrant of the domain name of
the internet site--
``(i) at the postal and e-mail address
appearing in the applicable publicly accessible
database of registrations, if any and to the
extent those addresses are reasonably
available;
``(ii) via the postal and e-mail address of
the registrar, registry, or other domain name
registration authority that registered or
assigned the domain name, to the extent those
addresses are reasonably available; and
``(iii) in any other such form as the court
finds necessary, including as may be required
by rule 4(f) of the Federal Rules of Civil
Procedure.
``(B) Rule of construction.--For purposes of this
subsection, the actions described in subparagraph (A)
shall constitute service of process.
``(C) Other notice.--Upon commencing an action
under paragraph (1), the Attorney General shall also
provide notice to entities identified in the complaint,
or any amendments thereto, that may be required to take
action under paragraph (4).
``(4) Required actions based on court orders.--
``(A) Service.--
``(i) In general.--A Federal law
enforcement officer, with the prior approval of
the court, may serve a copy of a court order
issued under paragraph (2) on similarly
situated entities within each class described
in that paragraph, that have been identified in
the complaint, or any amendments thereto, filed
under paragraph (1).
``(ii) Proof of service.--Proof of service
made under clause (i) shall be filed with the
court.
``(B) Reasonable measures.--
``(i) Operators.--
``(I) In general.--After being
served with a copy of an order under
this paragraph, an operator of a
nonauthoritative domain name system
server shall take the least burdensome
technically feasible and reasonable
measures designed to prevent the domain
name described in the order from
resolving to that domain name's
internet protocol address, except
that--
``(aa) the operator shall
not be required--
``(AA) other than
as directed under this
subclause, to modify
its network, software,
systems, or facilities;
``(BB) to take any
measures with respect
to domain name lookups
not performed by its
own domain name server
or domain name system
servers located outside
the United States; or
``(CC) to continue
to prevent access to a
domain name to which
access has been
effectively disabled by
other means; and
``(bb) nothing in this
subclause shall affect the
limitation on the liability of
such an operator under section
512 of title 17.
``(II) Text of notice.--
``(aa) In general.--The
Attorney General shall
prescribe the text of the
notice displayed to users or
customers of an operator taking
an action under this paragraph.
``(bb) Requirement.--The
text prescribed under item (aa)
shall specify that the action
is being taken pursuant to a
court order obtained by the
Attorney General.
``(ii) Financial transaction providers.--
After being served with a copy of an order
under this paragraph, a financial transaction
provider shall take reasonable measures, as
expeditiously as possible, designed to prevent,
prohibit, or suspend its service from
completing payment transactions involving
customers located within the United States and
the internet site associated with the domain
name set forth in the order.
``(iii) Internet advertising services.--
After being served with a copy of an order
under this paragraph, an internet advertising
service that contracts with the internet site
associated with the domain name set forth in
the order to provide advertising to or for that
site, or that knowingly serves advertising to
or for that site, shall take technically
feasible and reasonable measures, as
expeditiously as possible, designed to--
``(I) prevent its service from
providing advertisements to the
internet site associated with the
domain name; or
``(II) cease making available
advertisements for that site, or paid
or sponsored search results, links or
other placements that provide access to
the domain name.
``(iv) Information location tools.--After
being served with a copy of an order under this
paragraph, a service provider of an information
location tool shall take technically feasible
and reasonable measures, as expeditiously as
possible, to--
``(I) remove or disable access to
the internet site associated with the
domain name set forth in the order; or
``(II) not serve a hyptertext link
to the internet site described in
subclause (I).
``(C) Communication with users.--Except as provided
under subparagraph (B)(i)(II), an entity taking an
action described in this paragraph shall determine
whether and how to communicate the action to the
entity's users or customers.
``(D) Rule of construction.--For purposes of an
action brought under paragraph (1)--
``(i) the obligations of an entity
described in this paragraph shall be limited to
the actions set out in each clause of
subparagraph (B) of this paragraph that applies
to the entity; and
``(ii) an order issued under paragraph (2)
may not impose any additional obligation on, or
require any additional action by, the entity.
``(E) Actions pursuant to court order.--
``(i) Immunity from suit.--No cause of
action shall lie in any Federal or State court
or administrative agency against any entity
served with a copy of an order under this
paragraph, or against any director, officer,
employee, or agent thereof, for any act
reasonably designed to comply with this
subsection or reasonably arising from the
order, other than in an action under paragraph
(5).
``(ii) Immunity from liability.--Any entity
served with a copy of an order under this
paragraph, and any director, officer, employee,
or agent thereof, shall not be liable to any
party for any acts reasonably designed to
comply with this subsection or reasonably
arising from the order, other than in an action
under paragraph (5), and any actions taken by
customers of the entity to circumvent any
restriction on access to the internet domain
instituted pursuant to this subsection or any
act, failure, or inability to restrict access
to an internet domain that is the subject of a
court order issued under paragraph (2) despite
good faith efforts to do so by the entity shall
not be used by any person in any claim or cause
of action against the entity, other than in an
action under paragraph (5).
``(5) Enforcement of orders.--
``(A) In general.--In order to compel compliance
with this subsection, the Attorney General may bring an
action for injunctive relief against any party served
with a copy of a court order under paragraph (4) that
knowingly fails to comply with the order.
``(B) Rule of construction.--The authority granted
the Attorney General under subparagraph (A) shall be
the sole legal remedy for enforcing the obligations
under this subsection of any entity described in
paragraph (4).
``(C) Defense.--
``(i) In general.--It shall be an
affirmative defense in an action under
subparagraph (A) that--
``(I) the defendant does not have
the technical means to comply with the
order without incurring an unreasonable
economic burden; or
``(II) the order is inconsistent
with this section.
``(ii) Scope.--A showing under subclause
(I) or (II) of clause (i) shall serve as a
defense only to the extent of such inability to
comply or inconsistency, respectively.
``(6) Modification or vacation of orders.--
``(A) In general.--At any time after the issuance
of an order under paragraph (2), a motion to modify,
suspend, or vacate the order may be filed by--
``(i) any person, or owner or operator of
property, bound by the order;
``(ii) any registrant of the domain name,
or the owner or operator of the internet site
subject to the order;
``(iii) any domain name registrar or
registry that has registered or assigned the
domain name of the internet site subject to the
order; or
``(iv) any entity that has received a copy
of an order under paragraph (4) requiring the
entity to take action prescribed under that
paragraph.
``(B) Relief.--Relief under this paragraph shall be
proper if the court finds that--
``(i) the internet site associated with the
domain name subject to the order is no longer,
or never was, an internet site dedicated to
unlicensed sports wagering; or
``(ii) the interests of justice require
that the order be modified, suspended, or
vacated.
``(C) Consideration.--In making a relief
determination under subparagraph (B), a court may
consider whether the domain name has expired or has
been reregistered by a different party.
``(D) Intervention.--
``(i) In general.--An entity identified
under paragraph (1) as an entity that may be
required to take action under paragraph (4) if
an order issues under paragraph (2) may
intervene at any time in any action brought
under paragraph (1), or in any action to
modify, suspend, or vacate an order under this
paragraph.
``(ii) Preservation of rights.--Failure to
intervene in an action shall not prohibit an
entity notified of the action from subsequently
seeking an order to modify, suspend, or
terminate an order issued by the court under
paragraph (2).
``(7) Related actions.--The Attorney General, if alleging
that an internet site previously adjudicated to be an internet
site dedicated to unlicensed sports wagering is accessible or
has been reconstituted at a different domain name, may bring a
related action under paragraph (1) against the additional
domain name in the same judicial district as the previous
action.''; and
(4) in subsection (g), as so redesignated--
(A) by striking ``as used in this section, the term
`State' means'' and inserting the following:
``Definitions.--As used in this section--
``(11) the term `State' means''; and
(B) by inserting before paragraph (11), as so
designated, the following:
``(1) the term `domain name' has the meaning given the term
in section 45 of the Trademark Act of 1946 (15 U.S.C. 1127);
``(2) the term `domain name system server' means a server
or other mechanism used to provide the internet protocol
address associated with a domain name;
``(3) the term `financial transaction provider' has the
meaning given the term in section 5362 of title 31, United
States Code;
``(4) the term `internet information location tool' has the
meaning given the term in section 231(e) of the Communications
Act of 1934 (47 U.S.C. 231(e));
``(5) the term `internet advertising service' means a
service that for compensation sells, purchases, brokers,
serves, inserts, verifies, or clears the placement of an
advertisement, including a paid or sponsored search result,
link, or placement that is rendered in viewable form for any
period of time on an internet site;
``(6) the term `internet site' means the collection of
digital assets, including links, indexes, or pointers to
digital assets, accessible through the internet that are
addressed relative to a common domain name;
``(7) the term `internet site dedicated to unlicensed
sports wagering' means an internet site that, with respect to
its business directed toward residents of the United States--
``(A) has no significant use other than engaging
in, enabling, or facilitating sports wagering in
violation of this section; or
``(B) is designed, operated, or marketed by its
operator or persons operating in concert with the
operator, and facts or circumstances suggest is used,
primarily as a means for engaging in, enabling, or
facilitating sports wagering in violation of this
section;
``(8) the term `layoff bet or wager' means a sports wager
(as defined in section 3 of the Sports Wagering Market
Integrity Act of 2018) placed by a sports wagering operator (as
defined in such section) with another sports wagering operator;
``(9) the term `nondomestic domain name' means a domain
name for which the domain name registry that issued the domain
name and operates the relevant top level domain, and the domain
name registrar for the domain name, are not located in the
United States;
``(10) the term `owner' or `operator', when used in
connection with an internet site, include, respectively, any
owner of a majority interest in, or any person with authority
to operate, the internet site; and''.
SEC. 302. SPORTS BRIBERY ACT IMPROVEMENTS.
(a) In General.--Section 224 of title 18, United States Code, is
amended--
(1) in the section heading, by striking ``Bribery in
sporting contests'' and inserting ``Bribery, extortion, and
blackmail in sporting contests; sports wagers based on
nonpublic information'';
(2) in subsection (a)--
(A) by striking ``Whoever'' and inserting
``Bribery, Extortion, and Blackmail in Sporting
Contests.--Whoever''; and
(B) by inserting ``, extortion, or blackmail''
after ``bribery'' each places it appears;
(3) by redesignating subsections (b) and (c) as subsections
(c) and (g), respectively;
(4) by inserting after subsection (a) the following:
``(b) Sports Wagers Based on Nonpublic Information.--
``(1) In general.--It shall be unlawful for any person,
directly or indirectly, to place or accept, attempt to place or
accept, or conspire with any other person to place or accept
through any scheme in commerce a sports wager if the person--
``(A) is in possession of material nonpublic
information relating to the sports wager or the market
for the sports wager; and
``(B) knows, or recklessly disregards, that--
``(i) the material nonpublic information
has been obtained wrongfully; or
``(ii) the placement or acceptance would
constitute a wrongful use of the material
nonpublic information.
``(2) Penalty.--Any person who violates paragraph (1) shall
be fined under this title, imprisoned for not more than 5
years, or both.
``(3) Obtained wrongfully or wrongful use.--For purposes of
this subsection, material nonpublic information is obtained
wrongfully or wrongfully used only if the information has been
obtained by, or its use would constitute, directly or
indirectly--
``(A) theft, bribery, misrepresentation, or
espionage;
``(B) a violation of any Federal law protecting
computer data or the intellectual property or privacy
of computer users;
``(C) conversion, misappropriation, or other
unauthorized or deceptive taking or use of such
information; or
``(D) a breach of any fiduciary duty or any other
personal or other relationship of trust and
confidence.'';
(5) in subsection (c), as so redesignated, by striking
``This section'' and inserting ``Rule of Construction.--This
section'';
(6) by inserting after subsection (c), as so redesignated,
the following:
``(d) Extraterritorial Jurisdiction.--There is extraterritorial
Federal jurisdiction over an offense under this section.
``(e) Venue.--A prosecution under this section may be brought in
the judicial district in which the sporting contest (including the
sporting contest to which a sports wager relates) occurred or was
scheduled to occur, or in which the conduct constituting the alleged
offense occurred.
``(f) Civil Action To Protect Against Retaliation.--
``(1) Whistleblower protection.--A sports wagering operator
or sports organization may not discharge, demote, suspend,
threaten, harass, or in any other manner discriminate against
an employee because of any lawful act done by the employee to
provide information, cause information to be provided, or
otherwise assist in an investigation regarding any conduct
which the individual reasonably believes constitutes a
violation of this section, if the information or assistance is
provided to or the investigation is conducted by--
``(A) a Federal law enforcement agency;
``(B) any Member of Congress or any committee of
Congress; or
``(C) a person with supervisory authority over the
employee, or such other person working for the sports
wagering operator or sports organization, as
applicable, who has the authority to investigate,
discover, or terminate misconduct.
``(2) Enforcement action.--
``(A) In general.--A person who alleges action or
conduct by any person in violation of paragraph (1) may
seek relief under paragraph (3), by bringing an action
at law or equity in the appropriate district court of
the United States, which shall have jurisdiction over
such an action without regard to the amount in
controversy.
``(B) Procedure.--
``(i) Burdens of proof.--In an action under
subparagraph (A), a district court may find
that a violation of paragraph (1) occurred and
award judgment for the plaintiff only if--
``(I) the employee demonstrates by
a preponderance of the evidence that
the actions of the employee to provide
information or assist in an
investigation were a contributing
factor to the discharge or other
discrimination; and
``(II) the employer does not
demonstrate, by clear and convincing
evidence, that the employer would have
taken the same unfavorable personnel
action in the absence of behavior.
``(ii) Statute of limitations.--An action
under subparagraph (A) shall be commenced not
later than 180 days after the later of--
``(I) the date on which the
violation occurs; or
``(II) the date on which the
employee became aware of the violation.
``(iii) Jury trial.--A party to an action
brought under subparagraph (A) shall be
entitled to trial by jury.
``(3) Remedies.--
``(A) In general.--An employee prevailing in an
action under paragraph (2) shall be entitled to all
relief necessary to make the employee whole.
``(B) Compensatory damages.--Relief for any action
under paragraph (2) shall include--
``(i) reinstatement with the same seniority
status that the employee would have had, but
for the discrimination;
``(ii) the amount of back pay, with
interest; and
``(iii) compensation for any special
damages sustained as a result of the
discrimination, including litigation costs,
expert witness fees, and reasonable attorney
fees.
``(4) Rights retained by employee.--Nothing in this
subsection shall be deemed to diminish the rights, privileges,
or remedies of any employee under any Federal or State law, or
under any collective bargaining agreement.
``(5) Nonenforceability of certain provisions waiving
rights and remedies or requiring arbitration of disputes.--
``(A) Waiver of rights and remedies.--The rights
and remedies provided for in this subsection may not be
waived by any agreement, policy form, or condition of
employment, including by a predispute arbitration
agreement.
``(B) Predispute arbitration agreements.--No
predispute arbitration agreement shall be valid or
enforceable, if the agreement requires arbitration of a
dispute arising under this subsection.''; and
(7) in subsection (g), as so redesignated--
(A) in the matter preceding paragraph (1), by
striking ``As used in this section--'' and inserting
``Definitions.--As used in this section:'';
(B) by redesignating paragraphs (1), (2), and (3)
as paragraphs (3), (4), and (2), respectively;
(C) by transferring paragraph (2), as so
redesignated, to appear before paragraph (3), as so
redesignated;
(D) by inserting before paragraph (2), as
redesignated and transferred, the following:
``(1) The term `employee' includes--
``(A) an employee of a sports wagering operator or
sports organization; and
``(B) an athlete, coach, or official of a sports
organization.''; and
(E) by adding at the end the following:
``(5) The terms `sports organization', `sports wager', and
`sports wagering operator' have the meaning given those terms
in section 3 of the Sports Wagering Market Integrity Act of
2018.''.
(b) Technical and Conforming Amendments.--
(1) Section 1961(1) of title 18, United States Code, is
amended by striking ``sports bribery'' and inserting ``bribery,
extortion, and blackmail in sporting contests and sports wagers
based on nonpublic information''.
(2) Section 2516(1)(c) of title 18, United States Code, is
amended by striking ``bribery in sporting contests'' and
inserting ``bribery, extortion, and blackmail in sporting
contests and sports wagers based on nonpublic information''.
(3) The table of sections for chapter 11 of title 18,
United States Code, is amended by striking the item relating to
section 224 and inserting the following:
``224. Bribery, extortion, and blackmail in sporting contests; sports
wagers based on nonpublic information.''.
TITLE IV--GAMBLING ADDICTION PREVENTION AND TREATMENT
SEC. 401. AUTHORITY TO ADDRESS GAMBLING IN DEPARTMENT OF HEALTH AND
HUMAN SERVICES AUTHORITIES.
Section 501(d) of the Public Health Service Act (42 U.S.C.
290aa(d)) is amended--
(a) by striking ``and'' at the end of paragraph (24);
(b) by striking the period at the end of paragraph (25) and
inserting ``; and''; and
(c) by adding at the end the following:
``(26) establish and implement programs for prevention and
treatment of gambling addiction.''.
SEC. 402. ADVISORY COMMITTEE.
(a) Establishment.--The Secretary of Health and Human Services may
establish a Gambling Research Advisory Committee (in this section
referred to as the ``Committee'') within the National Institutes of
Health to coordinate research conducted or supported by the Department
of Health and Human Services on gambling addiction.
(b) Membership.--The Committee shall include representatives of the
National Institute on Drug Abuse, the National Institute of Mental
Health, the National Institute on Alcohol Abuse and Alcoholism, the
Indian Health Service, the Substance Abuse and Mental Health Services
Administration, and the Centers for Disease Control and Prevention.
(c) Annual Report.--The Committee shall prepare, make available to
the public, and submit to the Secretary of Health and Human Services an
annual report on the research described in subsection (a).
SEC. 403. SURVEILLANCE OF GAMBLING ADDICTION.
Title III of the Public Health Service Act is amended by inserting
after section 317T (42 U.S.C. 247b-22) the following:
``SEC. 317U. SURVEILLANCE OF GAMBLING ADDICTION.
``(a) In General.--The Secretary, acting through the Director of
the Centers for Disease Control and Prevention and in coordination with
other appropriate agencies, shall, as appropriate--
``(1) enhance and expand infrastructure and activities to
track the epidemiology of gambling addiction; and
``(2) incorporate information obtained through such
infrastructure and activities into an integrated surveillance
system, which may consist of or include a registry, to be known
as the National Gambling Addiction Surveillance System.
``(b) Research.--The Secretary shall ensure that the National
Gambling Addiction Surveillance System, if established, is designed in
a manner that facilitates further research on gambling addiction.
``(c) Public Access.--Subject to subsection (d), the Secretary
shall ensure that information and analysis in the National Gambling
Addiction Surveillance System, if established, are available, as
appropriate, to the public, including researchers.
``(d) Privacy.--The Secretary shall ensure that information and
analysis in the National Gambling Addiction Surveillance System, if
established, are made available only to the extent permitted by
applicable Federal and State law, and in a manner that protects
personal privacy, to the extent required by applicable Federal and
State privacy law, at a minimum.''.
TITLE V--GENERAL PROVISIONS
SEC. 501. STATE AND TRIBAL AUTHORITY.
(a) Relation to Indian Gaming Regulatory Act.--
(1) In general.--For purposes of the Indian Gaming
Regulatory Act (25 U.S.C. 2701 et seq.) only, a sports wager
made through an interactive sports wagering platform shall be
deemed to be made at the physical location of the server or
other equipment used to accept the sports wager.
(2) Server on indian lands.--With respect to a sports wager
described in paragraph (1) accepted through a server or other
equipment located on Indian lands (as defined in section 4 of
the Indian Gaming Regulatory Act (25 U.S.C. 2703)), the sports
wager shall be considered to be exclusively occurring on Indian
lands if--
(A) the sports wager and the server are in the same
State; and
(B) the applicable State and Indian Tribe have
entered into a Tribal-State compact authorizing the
placing of sports wagers through interactive sports
wagering platforms.
(b) No Preemption.--Nothing in this Act preempts or limits the
authority of a State or an Indian Tribe to enact, adopt, promulgate, or
enforce any law, rule, regulation, or other measure with respect to
sports wagering that is in addition to, or more stringent than, the
requirements of this Act.
(c) Taxation of Sports Wagering.--Nothing in this Act limits or
otherwise affects the taxation of sports wagering by a State, an Indian
Tribe, or a locality.
SEC. 502. SEVERABILITY.
If a provision of this Act, an amendment made by this Act, a
regulation promulgated under this Act or under an amendment made by
this Act, or the application of any such provision, amendment, or
regulation to any person or circumstance, is held to be invalid, the
remaining provisions of this Act, amendments made by this Act,
regulations promulgated under this Act or under an amendment made by
this Act, or the application of such provisions, amendments, and
regulations to any person or circumstance--
(1) shall not be affected by the invalidity; and
(2) shall continue to be enforced to the maximum extent
practicable.
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