[Congressional Record Volume 145, Number 165 (Friday, November 19, 1999)]
[Senate]
[Pages S15117-S15120]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          AMENDMENTS SUBMITTED

                                 ______
                                 

               INTERNET GAMBLING PROHIBITION ACT OF 1999

                                 ______
                                 

                   KYL (AND BRYAN) AMENDMENT NO. 2782

  Ms. COLLINS (for Mr. Kyl (for himself and Mr. Bryan)) proposed an 
amendment to the bill (S. 692) to prohibit Internet gambling, and for 
other purposes; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Internet Gambling 
     Prohibition Act of 1999''.

     SEC. 2. PROHIBITION ON INTERNET GAMBLING.

       (a) In General.--Chapter 50 of title 18, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 1085. Internet gambling

       ``(a) Definitions.--In this section:
       ``(1) Bets or wagers.--The term `bets or wagers'--
       ``(A) means the staking or risking by any person of 
     something of value upon the outcome of a contest of others, a 
     sporting event, or a game of chance, upon an agreement or 
     understanding that the person or another person will receive 
     something of value based on that outcome;
       ``(B) includes the purchase of a chance or opportunity to 
     win a lottery or other prize (which opportunity to win is 
     predominantly subject to chance);
       ``(C) includes any scheme of a type described in section 
     3702 of title 28; and
       ``(D) does not include--
       ``(i) a bona fide business transaction governed by the 
     securities laws (as defined in section 3(a)(47) of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(47))) for 
     the purchase or sale at a future date of securities (as 
     defined in section 3(a)(10) of the Securities Exchange Act of 
     1934 (15 U.S.C. 78c(a)(10)));
       ``(ii) a transaction on or subject to the rules of a 
     contract market designated pursuant to section 5 of the 
     Commodity Exchange Act (7 U.S.C. 7);
       ``(iii) a contract of indemnity or guarantee; or
       ``(iv) a contract for life, health, or accident insurance.
       ``(2) Closed-loop subscriber-based service.--The term 
     `closed-loop subscriber-based service' means any information 
     service or system that uses--
       ``(A) a device or combination of devices--
       ``(i) expressly authorized and operated in accordance with 
     the laws of a State, exclusively for placing, receiving, or 
     otherwise making a bet or wager described in subsection 
     (f)(1)(B); and
       ``(ii) by which a person located within any State must 
     subscribe and be registered with the provider of the wagering 
     service by name, address, and appropriate billing information 
     to be authorized to place, receive, or otherwise make a bet 
     or wager, and must be physically located within that State in 
     order to be authorized to do so;
       ``(B) an effective customer verification and age 
     verification system, expressly authorized and operated in 
     accordance with the laws of the State in which it is located, 
     to ensure that all applicable Federal and State legal and 
     regulatory requirements for lawful gambling are met; and
       ``(C) appropriate data security standards to prevent 
     unauthorized access by any person who has not subscribed or 
     who is a minor.
       ``(3) Foreign jurisdiction.--The term `foreign 
     jurisdiction' means a jurisdiction of a foreign country or 
     political subdivision thereof.
       ``(4) Gambling business.--The term `gambling business' 
     means--
       ``(A) a business that is conducted at a gambling 
     establishment, or that--
       ``(i) involves--

       ``(I) the placing, receiving, or otherwise making of bets 
     or wagers; or
       ``(II) the offering to engage in the placing, receiving, or 
     otherwise making of bets or wagers;

       ``(ii) involves 1 or more persons who conduct, finance, 
     manage, supervise, direct, or own all or part of such 
     business; and
       ``(iii) has been or remains in substantially continuous 
     operation for a period in excess of 10 days or has a gross 
     revenue of $2,000 or more from such business during any 24-
     hour period; and
       ``(B) any soliciting agent of a business described in 
     subparagraph (A).
       ``(5) Information assisting in the placing of a bet or 
     wager.--The term `information assisting in the placing of a 
     bet or wager'--
       ``(A) means information that is intended by the sender or 
     recipient to be used by a person engaged in the business of 
     betting or wagering to place, receive, or otherwise make a 
     bet or wager; and
       ``(B) does not include--
       ``(i) information concerning parimutuel pools that is 
     exchanged exclusively between or among 1 or more racetracks 
     or other parimutuel wagering facilities licensed by the State 
     or approved by the foreign jurisdiction in which the facility 
     is located, and 1 or more parimutuel wagering facilities 
     licensed by the State or approved by the foreign jurisdiction 
     in which the facility is located, if that information is used 
     only to conduct common pool parimutuel pooling under 
     applicable law;
       ``(ii) information exchanged exclusively between or among 1 
     or more racetracks or other parimutuel wagering facilities 
     licensed by the State or approved by the foreign jurisdiction 
     in which the facility is located, and a support service 
     located in another State or foreign jurisdiction, if the 
     information is used only for processing bets or wagers made 
     with that facility under applicable law;
       ``(iii) information exchanged exclusively between or among 
     1 or more wagering facilities that are located within a 
     single State and are licensed and regulated by that State, 
     and any support service, wherever located, if the information 
     is used only for the pooling or processing of bets or wagers 
     made by or with the facility or facilities under applicable 
     State law;
       ``(iv) any news reporting or analysis of wagering activity, 
     including odds, racing or event results, race and event 
     schedules, or categories of wagering; or
       ``(v) any posting or reporting of any educational 
     information on how to make a bet or wager or the nature of 
     betting or wagering.
       ``(6) Interactive computer service.--The term `interactive 
     computer service' means any information service, system, or 
     access software provider that operates in, or uses a channel 
     or instrumentality of, interstate or foreign commerce to 
     provide or enable access by multiple users to a computer 
     server, including specifically a service or system that 
     provides access to the Internet.
       ``(7) Interactive computer service provider.--The term 
     `interactive computer service provider' means any person that 
     provides an interactive computer service, to the extent that 
     such person offers or provides such service.
       ``(8) Internet.--The term `Internet' means the 
     international computer network of both Federal and non-
     Federal interoperable packet switched data networks.
       ``(9) Person.--The term `person' means any individual, 
     association, partnership, joint venture, corporation (or any 
     affiliate of a corporation), State or political subdivision 
     thereof, department, agency, or instrumentality of a State or 
     political subdivision thereof, or any other government, 
     organization, or entity (including any governmental entity 
     (as defined in section 3701(2) of title 28)).
       ``(10) Private network.--The term `private network' means a 
     communications channel or channels, including voice or 
     computer data transmission facilities, that use either--
       ``(A) private dedicated lines; or
       ``(B) the public communications infrastructure, if the 
     infrastructure is secured by means of the appropriate private 
     communications technology to prevent unauthorized access.
       ``(11) State.--The term `State' means a State of the United 
     States, the District of Columbia, the Commonwealth of Puerto 
     Rico, or a commonwealth, territory, or possession of the 
     United States.
       ``(12) Subscriber.--The term `subscriber'--
       ``(A) means any person with a business relationship with 
     the interactive computer service provider through which such 
     person receives access to the system, service, or network of 
     that provider, even if no formal subscription agreement 
     exists; and
       ``(B) includes registrants, students who are granted access 
     to a university system or network, and employees or 
     contractors who are granted access to the system or network 
     of their employer.
       ``(b) Internet Gambling.--
       ``(1) Prohibition.--Subject to subsection (f), it shall be 
     unlawful for a person engaged in a gambling business 
     knowingly to use the

[[Page S15118]]

     Internet or any other interactive computer service--
       ``(A) to place, receive, or otherwise make a bet or wager; 
     or
       ``(B) to send, receive, or invite information assisting in 
     the placing of a bet or wager.
       ``(2) Penalties.--A person engaged in a gambling business 
     who violates this section shall be--
       ``(A) fined in an amount equal to not more than the greater 
     of--
       ``(i) the total amount that such person bet or wagered, or 
     placed, received, or accepted in bets or wagers, as a result 
     of engaging in that business in violation of this section; or
       ``(ii) $20,000;
       ``(B) imprisoned not more than 4 years; or
       ``(C) both.
       ``(3) Permanent injunctions.--Upon conviction of a person 
     under this section, the court may enter a permanent 
     injunction enjoining such person from placing, receiving, or 
     otherwise making bets or wagers or sending, receiving, or 
     inviting information assisting in the placing of bets or 
     wagers.
       ``(c) Civil Remedies.--
       ``(1) Jurisdiction.--The district courts of the United 
     States shall have original and exclusive jurisdiction to 
     prevent and restrain violations of this section by issuing 
     appropriate orders in accordance with this section, 
     regardless of whether a prosecution has been initiated under 
     this section.
       ``(2) Proceedings.--
       ``(A) Institution by federal government.--
       ``(i) In general.--The United States may institute 
     proceedings under this subsection to prevent or restrain a 
     violation of this section.
       ``(ii) Relief.--Upon application of the United States under 
     this subparagraph, the district court may enter a temporary 
     restraining order or an injunction against any person to 
     prevent or restrain a violation of this section if the court 
     determines, after notice and an opportunity for a hearing, 
     that there is a substantial probability that such violation 
     has occurred or will occur.
       ``(B) Institution by state attorney general.--
       ``(i) In general.--The attorney general of a State (or 
     other appropriate State official) in which a violation of 
     this section allegedly has occurred or will occur, after 
     providing written notice to the United States, may institute 
     proceedings under this subsection to prevent or restrain the 
     violation.
       ``(ii) Relief.--Upon application of the attorney general 
     (or other appropriate State official) of an affected State 
     under this subparagraph, the district court may enter a 
     temporary restraining order or an injunction against any 
     person to prevent or restrain a violation of this section if 
     the court determines, after notice and an opportunity for a 
     hearing, that there is a substantial probability that such 
     violation has occurred or will occur.
       ``(C) Proceedings by a sports organization.--A professional 
     sports organization or an amateur sports organization (as 
     those terms are defined in section 3701 of title 28) whose 
     games, or the performances of whose athletes in such games, 
     are alleged to be the basis of a violation of this section, 
     may, after providing written notice to the United States, 
     institute civil proceedings in an appropriate district court 
     of the United States to prevent or restrain such violation. 
     Upon application of the professional or amateur sports 
     organization, the district court may enter any relief 
     authorized by this subsection in proceedings instituted 
     thereunder by the United States or a State Attorney General 
     (or other appropriate State official). This subparagraph does 
     not authorize proceedings against an interactive computer 
     service provider described in subsection (d)(1)(B).
       ``(D) Indian lands.--Notwithstanding subparagraph (A), (B), 
     or (C), for a violation that is alleged to have occurred, or 
     may occur, on Indian lands (as defined in section 4 of the 
     Indian Gaming Regulatory Act (25 U.S.C. 2703))--
       ``(i) the United States shall have the enforcement 
     authority provided under subparagraph (A); and
       ``(ii) in the case of an alleged violation that involves 
     class III gaming (as defined in section 4 of the Indian 
     Gaming Regulatory Act (25 U.S.C. 2703)), the enforcement 
     authorities specified in an applicable Tribal-State compact 
     negotiated under section 11 of the Indian Gaming Regulatory 
     Act (25 U.S.C. 2710) shall be carried out in accordance with 
     that compact.
       ``(E) Expiration.--Any temporary restraining order or 
     preliminary injunction entered pursuant to subparagraph (A) 
     or (B) shall expire if, and as soon as, the United States, or 
     the attorney general (or other appropriate State official) of 
     the State, as applicable, notifies the court that issued the 
     order or injunction that the United States or the State, as 
     applicable, will not seek a permanent injunction.
       ``(3) Expedited proceedings.--
       ``(A) In general.--In addition to any proceeding under 
     paragraph (2), a district court may, in exigent 
     circumstances, enter a temporary restraining order against a 
     person alleged to be in violation of this section upon 
     application of the United States under paragraph (2)(A), or 
     the attorney general (or other appropriate State official) of 
     an affected State under paragraph (2)(B), without notice and 
     the opportunity for a hearing as provided in rule 65(b) of 
     the Federal Rules of Civil Procedure (except as provided in 
     subsection (d)(3)), if the United States or the State, as 
     applicable, demonstrates that there is probable cause to 
     believe that the use of the Internet or other interactive 
     computer service at issue violates this section.
       ``(B) Hearings.--A hearing requested concerning an order 
     entered under this paragraph shall be held at the earliest 
     practicable time.
       ``(d) Interactive Computer Service Providers.--
       ``(1) Immunity from liability for use by another.--
       ``(A) In general.--An interactive computer service provider 
     described in subparagraph (B) shall not be liable, under this 
     section or any other provision of Federal or State law 
     prohibiting or regulating gambling or gambling-related 
     activities, for the use of its facilities or services by 
     another person to engage in Internet gambling activity that 
     violates such law--
       ``(i) arising out of any transmitting, routing, or 
     providing of connections for gambling-related material or 
     activity (including intermediate and temporary storage in the 
     course of such transmitting, routing, or providing 
     connections) by the provider, if--

       ``(I) the material or activity was initiated by or at the 
     direction of a person other than the provider;
       ``(II) the transmitting, routing, or providing of 
     connections is carried out through an automatic process 
     without selection of the material or activity by the 
     provider;
       ``(III) the provider does not select the recipients of the 
     material or activity, except as an automatic response to the 
     request of another person; and
       ``(IV) the material or activity is transmitted through the 
     system or network of the provider without modification of its 
     content; or

       ``(ii) arising out of any gambling-related material or 
     activity at an online site residing on a computer server 
     owned, controlled, or operated by or for the provider, or 
     arising out of referring or linking users to an online 
     location containing such material or activity, if the 
     material or activity was initiated by or at the direction of 
     a person other than the provider, unless the provider fails 
     to take expeditiously, with respect to the particular 
     material or activity at issue, the actions described in 
     paragraph (2)(A) following the receipt by the provider of a 
     notice described in paragraph (2)(B).
       ``(B) Eligibility.--An interactive computer service 
     provider is described in this subparagraph only if the 
     provider--
       ``(i) maintains and implements a written or electronic 
     policy that requires the provider to terminate the account of 
     a subscriber of its system or network expeditiously following 
     the receipt by the provider of a notice described in 
     paragraph (2)(B) alleging that such subscriber has violated 
     or is violating this section; and
       ``(ii) with respect to the particular material or activity 
     at issue, has not knowingly permitted its computer server to 
     be used to engage in activity that the provider knows is 
     prohibited by this section, with the specific intent that 
     such server be used for such purpose.
       ``(2) Notice to interactive computer service providers.--
       ``(A) In general.--If an interactive computer service 
     provider receives from a Federal or State law enforcement 
     agency, acting within its authority and jurisdiction, a 
     written or electronic notice described in subparagraph (B), 
     that a particular online site residing on a computer server 
     owned, controlled, or operated by or for the provider is 
     being used by another person to violate this section, the 
     provider shall expeditiously--
       ``(i) remove or disable access to the material or activity 
     residing at that online site that allegedly violates this 
     section; or
       ``(ii) in any case in which the provider does not control 
     the site at which the subject material or activity resides, 
     the provider, through any agent of the provider designated in 
     accordance with section 512(c)(2) of title 17, or other 
     responsible identified employee or contractor--

       ``(I) notify the Federal or State law enforcement agency 
     that the provider is not the proper recipient of such notice; 
     and
       ``(II) upon receipt of a subpoena, cooperate with the 
     Federal or State law enforcement agency in identifying the 
     person or persons who control the site.

       ``(B) Notice.--A notice is described in this subparagraph 
     only if it--
       ``(i) identifies the material or activity that allegedly 
     violates this section, and alleges that such material or 
     activity violates this section;
       ``(ii) provides information reasonably sufficient to permit 
     the provider to locate (and, as appropriate, in a notice 
     issued pursuant to paragraph (3)(A) to block access to) the 
     material or activity;
       ``(iii) is supplied to any agent of a provider designated 
     in accordance with section 512(c)(2) of title 17, if 
     information regarding such designation is readily available 
     to the public;
       ``(iv) provides information that is reasonably sufficient 
     to permit the provider to contact the law enforcement agency 
     that issued the notice, including the name of the law 
     enforcement agency, and the name and telephone number of an 
     individual to contact at the law enforcement agency (and, if 
     available, the electronic mail address of that individual); 
     and
       ``(v) declares under penalties of perjury that the person 
     submitting the notice is an official of the law enforcement 
     agency described in clause (iv).

[[Page S15119]]

       ``(3) Injunctive relief.--
       ``(A) In general.--The United States, or a State law 
     enforcement agency acting within its authority and 
     jurisdiction, may, not less than 24 hours following the 
     issuance to an interactive computer service provider of a 
     notice described in paragraph (2)(B), in a civil action, 
     obtain a temporary restraining order, or an injunction to 
     prevent the use of the interactive computer service by 
     another person in violation of this section.
       ``(B) Limitations.--Notwithstanding any other provision of 
     this section, in the case of any application for a temporary 
     restraining order or an injunction against an interactive 
     computer service provider described in paragraph (1)(B) to 
     prevent a violation of this section--
       ``(i) arising out of activity described in paragraph 
     (1)(A)(i), the injunctive relief is limited to--

       ``(I) an order restraining the provider from providing 
     access to an identified subscriber of the system or network 
     of the interactive computer service provider, if the court 
     determines that there is probable cause to believe that such 
     subscriber is using that access to violate this section (or 
     to engage with another person in a communication that 
     violates this section), by terminating the specified account 
     of that subscriber; and
       ``(II) an order restraining the provider from providing 
     access, by taking reasonable steps specified in the order to 
     block access, to a specific, identified, foreign online 
     location;

       ``(ii) arising out of activity described in paragraph 
     (1)(A)(ii), the injunctive relief is limited to--

       ``(I) the orders described in clause (i)(I);
       ``(II) an order restraining the provider from providing 
     access to the material or activity that violates this section 
     at a particular online site residing on a computer server 
     operated or controlled by the provider; and
       ``(III) such other injunctive remedies as the court 
     considers necessary to prevent or restrain access to 
     specified material or activity that is prohibited by this 
     section at a particular online location residing on a 
     computer server operated or controlled by the provider, that 
     are the least burdensome to the provider among the forms of 
     relief that are comparably effective for that purpose.

       ``(C) Considerations.--The court, in determining 
     appropriate injunctive relief under this paragraph, shall 
     consider--
       ``(i) whether such an injunction, either alone or in 
     combination with other such injunctions issued, and currently 
     operative, against the same provider would significantly 
     (and, in the case of relief under subparagraph (B)(ii), 
     taking into account, among other factors, the conduct of the 
     provider, unreasonably) burden either the provider or the 
     operation of the system or network of the provider;
       ``(ii) whether implementation of such an injunction would 
     be technically feasible and effective, and would not 
     materially interfere with access to lawful material at other 
     online locations;
       ``(iii) whether other less burdensome and comparably 
     effective means of preventing or restraining access to the 
     illegal material or activity are available; and
       ``(iv) the magnitude of the harm likely to be suffered by 
     the community if the injunction is not granted.
       ``(D) Notice and ex parte orders.--Injunctive relief under 
     this paragraph shall not be available without notice to the 
     service provider and an opportunity for such provider to 
     appear before the court, except for orders ensuring the 
     preservation of evidence or other orders having no material 
     adverse effect on the operation of the communications network 
     of the service provider.
       ``(4) Advertising or promotion of non-internet gambling.--
       ``(A) Definitions.--In this paragraph:
       ``(i) Conducted.--With respect to a gambling activity, that 
     activity is `conducted' in a State if the State is the State 
     in which the gambling establishment (as defined in section 
     1081) that offers the gambling activity being advertised or 
     promoted is physically located.
       ``(ii) Non-internet gambling activity.--The term `non-
     Internet gambling activity' means--

       ``(I) a gambling activity in which the placing of the bet 
     or wager is not conducted by the Internet; or
       ``(II) a gambling activity to which the prohibitions of 
     this section do not apply.

       ``(B) Immunity from liability for use by another.--
       ``(i) In general.--An interactive computer service provider 
     described in clause (ii) shall not be liable, under any 
     provision of Federal or State law prohibiting or regulating 
     gambling or gambling-related activities, or under any State 
     law prohibiting or regulating advertising and promotional 
     activities, for--

       ``(I) content, provided by another person, that advertises 
     or promotes non-Internet gambling activity that violates such 
     law (unless the provider is engaged in the business of such 
     gambling), arising out of any of the activities described in 
     paragraph (1)(A) (i) or (ii); or
       ``(II) content, provided by another person, that advertises 
     or promotes non-Internet gambling activity that is lawful 
     under Federal law and the law of the State in which such 
     gambling activity is conducted.

       ``(ii) Eligibility.--An interactive computer service is 
     described in this clause only if the provider--

       ``(I) maintains and implements a written or electronic 
     policy that requires the provider to terminate the account of 
     a subscriber of its system or network expeditiously following 
     the receipt by the provider of a notice described in 
     paragraph (2)(B) alleging that such subscriber maintains a 
     website on a computer server controlled or operated by the 
     provider for the purpose of engaging in advertising or 
     promotion of non-Internet gambling activity prohibited by a 
     Federal law or a law of the State in which such activity is 
     conducted;
       ``(II) with respect to the particular material or activity 
     at issue, has not knowingly permitted its computer server to 
     be used to engage in the advertising or promotion of non-
     Internet gambling activity that the provider knows is 
     prohibited by a Federal law or a law of the State in which 
     the activity is conducted, with the specific intent that such 
     server be used for such purpose; and
       ``(III) at reasonable cost, offers residential customers of 
     the provider's Internet access service, if the provider 
     provides Internet access service to such customers, computer 
     software, or another filtering or blocking system that 
     includes the capability of filtering or blocking access by 
     minors to online Internet gambling sites that violate this 
     section.

       ``(C) Notice to interactive computer service providers.--
       ``(i) Notice from federal law enforcement agency.--If an 
     interactive computer service provider receives from a Federal 
     law enforcement agency, acting within its authority and 
     jurisdiction, a written or electronic notice described in 
     paragraph (2)(B), that a particular online site residing on a 
     computer server owned, controlled, or operated by or for the 
     provider is being used by another person to advertise or 
     promote non-Internet gambling activity that violates a 
     Federal law prohibiting or regulating gambling or gambling-
     related activities, the provider shall expeditiously take the 
     actions described in paragraph (2)(A) (i) or (ii) with 
     respect to the advertising or promotion identified in the 
     notice.
       ``(ii) Notice from state law enforcement agency.--If an 
     interactive computer service provider receives from a State 
     law enforcement agency, acting within its authority and 
     jurisdiction, a written or electronic notice described in 
     paragraph (2)(B), that a particular online site residing on a 
     computer server owned, controlled, or operated by or for the 
     provider is being used by another person to advertise or 
     promote non-Internet gambling activity that is conducted in 
     that State and that violates a law of that State prohibiting 
     or regulating gambling or gambling-related activities, the 
     provider shall expeditiously take the actions described in 
     paragraph (2)(A) (i) or (ii) with respect to the advertising 
     or promotion identified in the notice.
       ``(D) Injunctive relief.--The United States, or a State law 
     enforcement agency, acting within its authority and 
     jurisdiction, may, not less than 24 hours following the 
     issuance to an interactive computer service provider of a 
     notice described in paragraph (2)(B), in a civil action, 
     obtain a temporary restraining order, or an injunction, to 
     prevent the use of the interactive computer service by 
     another person to advertise or promote non-Internet gambling 
     activity that violates a Federal law, or a law of the State 
     in which such activity is conducted that prohibits or 
     regulates gambling or gambling-related activities, as 
     applicable. The procedures described in paragraph (3)(D) 
     shall apply to actions brought under this subparagraph, and 
     the relief in such actions shall be limited to--
       ``(i) an order requiring the provider to remove or disable 
     access to the advertising or promotion of non-Internet 
     gambling activity that violates Federal law, or the law of 
     the State in which such activity is conducted, as applicable, 
     at a particular online site residing on a computer server 
     controlled or operated by the provider;
       ``(ii) an order restraining the provider from providing 
     access to an identified subscriber of the system or network 
     of the provider, if the court determines that such subscriber 
     maintains a website on a computer server controlled or 
     operated by the provider that the subscriber is knowingly 
     using or knowingly permitting to be used to advertise or 
     promote non-Internet gambling activity that violates Federal 
     law or the law of the State in which such activity is 
     conducted; and
       ``(iii) an order restraining the provider of the content of 
     the advertising or promotion of such illegal gambling 
     activity from disseminating such advertising or promotion on 
     the computer server controlled or operated by the provider of 
     such interactive computer service.
       ``(E) Applicability.--The provisions of subparagraphs (C) 
     and (D) do not apply to the content described in subparagraph 
     (B)(i)(II).
       ``(5) Effect on other law.--
       ``(A) Immunity from liability for compliance.--An 
     interactive computer service provider shall not be liable for 
     any damages, penalty, or forfeiture, civil or criminal, under 
     Federal or State law for taking in good faith any action 
     described in paragraph (2)(A) or (4) (B)(ii)(I) or (C) to 
     comply with a notice described in paragraph (2)(B), or 
     complying with any court order issued under paragraph (3) or 
     (4)(C).
       ``(B) Disclaimer of obligations.--Nothing in this section 
     may be construed to impose or authorize an obligation on an 
     interactive computer service provider described in paragraph 
     (1)(B)--

[[Page S15120]]

       ``(i) to monitor material or use of its service; or
       ``(ii) except as required by a notice or an order of a 
     court under this subsection, to gain access to, to remove, or 
     to disable access to material.
       ``(C) Rights of subscribers.--Nothing in this section may 
     be construed to prejudice the right of a subscriber to secure 
     an appropriate determination, as otherwise provided by law, 
     in a Federal court or in a State or local tribunal or agency, 
     that the account of such subscriber should not be terminated 
     pursuant to this subsection, or should be restored.
       ``(e) Availability of Relief.--The availability of relief 
     under subsections (c) and (d) shall not depend on, or be 
     affected by, the initiation or resolution of any action under 
     subsection (b), or under any other provision of Federal or 
     State law.
       ``(f) Applicability.--
       ``(1) In general.--Subject to paragraph (2), the 
     prohibition in this section does not apply to--
       ``(A) any otherwise lawful bet or wager that is placed, 
     received, or otherwise made wholly intrastate for a State 
     lottery, or for a multi-State lottery operated jointly 
     between 2 or more States in conjunction with State lotteries 
     if--
       ``(i) each such lottery is expressly authorized, and 
     licensed or regulated, under applicable State law;
       ``(ii) the bet or wager is placed on an interactive 
     computer service that uses a private network;
       ``(iii) each person placing or otherwise making that bet or 
     wager is physically located when such bet or wager is placed 
     at a facility that is open to the general public; and
       ``(iv) each such lottery complies with sections 1301 
     through 1304, and other applicable provisions of Federal law;
       ``(B) any otherwise lawful bet or wager that is placed, 
     received, or otherwise made on an interstate or intrastate 
     basis on a live horse or a live dog race, or the sending, 
     receiving, or inviting of information assisting in the 
     placing of such a bet or wager, if such bet or wager, or the 
     transmission of such information, as applicable, is--
       ``(i) expressly authorized, and licensed or regulated by 
     the State in which such bet or wager is received, under 
     applicable Federal and such State's laws;
       ``(ii) placed on a closed-loop subscriber-based service;
       ``(iii) initiated from a State in which betting or wagering 
     on that same type of live horse or live dog racing is lawful 
     and received in a State in which such betting or wagering is 
     lawful;
       ``(iv) subject to the regulatory oversight of the State in 
     which the bet or wager is received and subject by such State 
     to minimum control standards for the accounting, regulatory 
     inspection, and auditing of all such bets or wagers 
     transmitted from 1 State to another; and
       ``(v) in the case of--

       ``(I) live horse racing, made in accordance with the 
     Interstate Horse Racing Act of 1978 (15 U.S.C. 3001 et seq.) 
     and the requirements, if any, established by an appropriate 
     legislative or regulatory body or the State in which the bet 
     or wager originates; or
       ``(II) live dog racing, subject to consent agreements that 
     are comparable to those required by the Interstate Horse 
     Racing Act of 1978, approved by the appropriate State 
     regulatory agencies, in the State receiving the signal, and 
     in the State in which the bet or wager originates; or

       ``(C) any otherwise lawful bet or wager that is placed, 
     received, or otherwise made for a fantasy sports league game 
     or contest.
       ``(2) Bets or wagers made by agents or proxies.--
       ``(A) In general.--Paragraph (1) does not apply in any case 
     in which a bet or wager is placed, received, or otherwise 
     made by the use of an agent or proxy using the Internet or an 
     interactive computer service.
       ``(B) Qualification.--Nothing in this paragraph may be 
     construed to prohibit the owner operator of a parimutuel 
     wagering facility that is licensed by a State from employing 
     an agent in the operation of the account wagering system 
     owned or operated by the parimutuel facility.
       ``(3) Advertising and promotion.--The prohibition of 
     subsection (b)(1)(B) does not apply to advertising or 
     promotion of any activity that is not prohibited by 
     subsection (b)(1)(A).
       ``(g) Rules of Construction.--
       ``(1) No immunity from prosecution.--Except as provided in 
     subsection (d), nothing in this section may be construed to 
     create immunity from criminal prosecution under any provision 
     of Federal or State law.
       ``(2) Other prohibitions and remedies.--Nothing in this 
     section may be construed to affect any prohibition or remedy 
     applicable to a person engaged in a gambling business under 
     any other provision of Federal or State law.''.
       (b) Technical Amendment.--The analysis for chapter 50 of 
     title 18, United States Code, is amended by adding at the end 
     the following:

``1085. Internet gambling.''.

     SEC. 3. REPORT ON ENFORCEMENT.

       Not later than 2 years after the date of enactment of this 
     Act, the Attorney General shall submit to Congress a report, 
     which shall include--
       (1) an analysis of the problems, if any, associated with 
     enforcing section 1085 of title 18, United States Code, as 
     added by section 2 of this Act;
       (2) recommendations for the best use of the resources of 
     the Department of Justice to enforce that section; and
       (3) an estimate of the amount of activity and money that 
     continue to be used to gamble on the Internet, despite the 
     prohibition of section 1085 of title 18, United States Code, 
     as added by section 2 of this Act, together with--
       (A) a detailed description of the factors contributing to 
     successful evasion of that prohibition; and
       (B) recommendations concerning means of closing the 
     channels used to evade that prohibition.

     SEC. 4. SEVERABILITY.

       If any provision of this Act, an amendment made by this 
     Act, or the application of such provision or amendment to any 
     person or circumstance is held to be unconstitutional, the 
     remainder of this Act, the amendments made by this Act, and 
     the application of this Act and the provisions of such 
     amendments to any other person or circumstance shall not be 
     affected thereby.
                                 ______
                                 

                      CAMPBELL AMENDMENT NO. 2783

  Ms. COLLINS (for Mr. Campbell) proposed an amendment to amendment No. 
2782 proposed by Mr. Kyl to the bill, S. 692, supra; as follows:

       On page 35 of the Kyl-Bryan substitute, after line 18, 
     insert the following:
       (4) Indian Gaming.
       (A) In General.--Subject to paragraph (2), the prohibition 
     in this section does not apply to any otherwise lawful bet or 
     wager that is placed, received, or otherwise made on any game 
     that constitutes class II gaming or class III gaming (as 
     those terms are defined in section 4 of the Indian Gaming 
     Regulatory Act, 25 U.S.C. 2703), or the sending, receiving, 
     or inviting of information assisting in the placing of any 
     such bet or wager, as applicable, if--
       (i) the game is permitted under and conducted in accordance 
     with the Indian Gaming Regulatory Act (25 U.S.C. 2701 et 
     seq.);
       (ii) each person placing, receiving, or otherwise making 
     such bet or wager, or transmitting such information, is 
     physically located on Indian lands (as that term is defined 
     in section 4 of Indian Gaming Regulatory Act, 25 U.S.C. 2703) 
     when such person places, receives, or otherwise makes the bet 
     or wager, or transmits such information;
       (iii) the game is conducted on a closed-loop subscriber-
     based system or a private network; and
       (iv) in the case of a game that constitutes class III 
     gaming--
       (I) the game is authorized under, and is conducted in 
     accordance with, the respective Tribal-State compacts 
     (entered into and approved pursuant to section 11(d) of the 
     Indian Gaming Regulatory Act, 25 U.S.C. 2710) governing 
     gaming activity on the Indian lands, in each respective 
     State, on which each person placing, receiving, or otherwise 
     making such bet or wager, or transmitting such information, 
     is physically located when such person places, receives, or 
     otherwise makes the bet or wager, or transmits such 
     information; and
       (II) each such Tribal-State compact expressly provides that 
     the game may be conducted using the Internet or other 
     interactive computer service only on a closed-loop 
     subscriber-based system or a private network.
       (B) Activities under Existing Compacts.--The requirement of 
     subparagraph (A)(iv)(II) shall not apply in the case of 
     gaming activity, otherwise subject to this section, that was 
     being conducted on Indian lands on September 1, 1999, with 
     the approval of the state gaming commission or like 
     regulatory authority of the State in which such Indian lands 
     are located, but without such required compact approval, 
     until the date on which the compact governing gaming activity 
     on such Indian lands expires (exclusive of any automatic or 
     discretionary renewal or extension of such compact), so long 
     as such gaming activity is conducted using the Internet or 
     other interactive computer service only on a closed-loop 
     subscriber-based system or a private network. For purposes of 
     this subparagraph, the phrase ``conducted on Indian lands'' 
     shall refer to all Indian lands on which any person placing, 
     receiving, or otherwise making a bet or wager, or sending, 
     receiving, or inviting information assisting in the placing 
     of a bet or wager, is physically located when such person 
     places, receives, or otherwise makes the bet or wager, or 
     sends, receives, or invites such information.

     

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