HR 2046 IHCommentsClose CommentsPermalink

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

April 26, 2007

Mr. FRANK of Massachusetts (for himself, Mr. PAUL, Mr. WEXLER, Mr. ACKERMAN, Mr. CLAY, Mr. GUTIERREZ, Mr. CAPUANO, Mr. WATT, Ms. BERKLEY, Ms. CARSON, Mr. KING of New York, and Mr. ISRAEL) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedCommentsClose CommentsPermalink

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

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This act may be cited as the `Internet Gambling Regulation and Enforcement Act of 2007'.CommentsClose CommentsPermalink

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

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

`SUBCHAPTER V--REGULATION OF LAWFUL INTERNET GAMBLING

`Sec. 5381. Congressional findings and purpose

`(a) Findings- The Congress finds the following:CommentsClose CommentsPermalink





`(1) Internet gambling is a $13,000,000,000 and growing industry worldwide.CommentsClose CommentsPermalink





`(2) Gambling is a popular activity domestically, with some form of gambling being permitted in nearly every State.CommentsClose CommentsPermalink





`(3) Internet gambling is a licensed, regulated activity in more than 50 countries, providing billions of dollars in tax revenue to those countries.CommentsClose CommentsPermalink





`(4) The global gaming market grossed about $258,000,000,000 in 2005, with online revenues representing an estimated 5.0 percent. North American residents accounted for an estimated 47 percent of the global gross gaming yield in 2005.CommentsClose CommentsPermalink





`(5) A licensing and regulatory regime for Internet gambling in the United States is needed to provide appropriate protections against underage gambling, compulsive gambling, money laundering, and fraud for those citizens who choose to gamble online.CommentsClose CommentsPermalink





`(6) Licensing and regulating Internet gambling in the United States would provide additional tax revenues, and would reduce tax avoidance.CommentsClose CommentsPermalink

`Sec. 5382. Definitions

`For purposes of this subchapter, the following definitions shall apply:CommentsClose CommentsPermalink





`(1) DIRECTOR- The term `director' means the Director of the Financial Crimes Enforcement Network.CommentsClose CommentsPermalink





`(2) BET OR WAGER- The term `bet or wager' shall have the same meaning as in section 5362(1).CommentsClose CommentsPermalink





`(3) LICENSEE- The term `licensee' shall mean an Internet gambling operator licensed by the Director in accordance with this subchapter.CommentsClose CommentsPermalink





`(4) STATE- The term `State' means any State of the United States, the District of Columbia, or any commonwealth, territory, or other possession of the United States.CommentsClose CommentsPermalink





`(5) INTERNET- The term `Internet' means the international computer network of interoperable packet switched data networks.CommentsClose CommentsPermalink





`(6) SPORTING LEAGUE- The term `sporting league' shall mean any sporting association, whether professional, scholastic, or amateur.CommentsClose CommentsPermalink





`(7) OPERATE AN INTERNET GAMBLING FACILITY- The term `operate an Internet gambling facility' means the direction, management, supervision, or control of an Internet site through which bets or wagers are placed, accepted, or otherwise made, whether by telephone, Internet or other wire communication.CommentsClose CommentsPermalink





`(8) INDIAN LANDS AND INDIAN TRIBE- The terms `Indian lands' and `Indian tribe' have the same meanings as in section 4 of the Indian Gaming Regulatory Act.CommentsClose CommentsPermalink

`Sec. 5383. Establishment and administration of licensing program

`(a) Fincen Requirements- Subject to the oversight and direction of the Secretary of the Treasury, the Director shall prescribe such regulations as may be necessary to administer and enforce the requirements under this subchapter.CommentsClose CommentsPermalink





`(b) Internet Gambling Licensing Program- No person shall engage in the business of Internet betting or wagering in the United States without a license issued by the Director in accordance with this subchapter.CommentsClose CommentsPermalink





`(c) Application for License-CommentsClose CommentsPermalink





`(1) IN GENERAL- Any person seeking authority to engage in the business of betting or wagering in the United States may apply for a license issued by the Director.CommentsClose CommentsPermalink





`(2) INFORMATION REQUIRED- Any application for a license under this subchapter shall contain such information as may be required by the Director, including--CommentsClose CommentsPermalink





`(A) a complete financial statements of the applicant;CommentsClose CommentsPermalink





`(B) documentation showing the corporate structure of the applicant and all related businesses and affiliates; andCommentsClose CommentsPermalink





`(C) a certification that the applicant agrees to be subject to United States jurisdiction and all applicable United States laws relating to Internet gambling activities.CommentsClose CommentsPermalink





`(d) Review of Licensees-CommentsClose CommentsPermalink





`(1) IN GENERAL- After the filing of a complete application, the Director shall evaluate the general fitness of the applicant on the basis of such factors as the Director determines to be appropriate.CommentsClose CommentsPermalink





`(2) FACTORS- The factors taken into account by the Director under paragraph (1) shall include--CommentsClose CommentsPermalink





`(A) the financial condition of the applicant;CommentsClose CommentsPermalink





`(B) the business experience and record of the applicant, including the applicant's compliance with similar laws and requirements in foreign jurisdictions;CommentsClose CommentsPermalink





`(C) if the applicant is an individual, a background check to determine if the individual has any criminal record; andCommentsClose CommentsPermalink





`(D) if the applicant is a corporation, partnership, or other business entity, such background check shall occur with respect to the president or other chief executive of the corporation, partnership, or other business entity and other partners or senior executives and directors of the corporation, partnership, or entity, as determined appropriate by the Director, in the Director's sole discretion.CommentsClose CommentsPermalink





`(e) Assessments for Administrative Expenses-CommentsClose CommentsPermalink





`(1) IN GENERAL-CommentsClose CommentsPermalink





`(A) IN GENERAL- The cost of administering this subchapter with respect to each licensee, including the cost of any review or examination of a licensee to ensure compliance with the terms of the license and this subchapter, shall be assessed by the Director against the licensee institution by written notice in an amount appropriate to meet the Director's expenses in carrying out such administration, review, or examination.CommentsClose CommentsPermalink





`(B) DISPOSITION- Amounts assessed by the Director as user fees under subparagraph (A) shall--CommentsClose CommentsPermalink





`(i) be maintained by the Director for solely for use in accordance with clause (ii);CommentsClose CommentsPermalink





`(ii) be available to the Director to cover all expenses incurred by the Director in carrying out this subchapter; andCommentsClose CommentsPermalink





`(iii) not be construed to be Government Funds or appropriated monies, or subject to apportionment for the purposes of chapter 15 or any other authority.CommentsClose CommentsPermalink





`(C) HEARING- Any licensee against whom an assessment is assessed under this paragraph shall be afforded an agency hearing if such person submits a request for such hearing within 20 days after the issuance of the notice of assessment.CommentsClose CommentsPermalink





`(D) COLLECTION-CommentsClose CommentsPermalink





`(i) REFERRAL- If any licensee fails to pay an assessment under this paragraph after the assessment has become final, the Director shall recover the amount assessed by action in the appropriate United States district court.CommentsClose CommentsPermalink





`(ii) APPROPRIATENESS OF ASSESSMENT NOT REVIEWABLE- In any civil action under clause (i), the validity and appropriateness of the assessment shall not be subject to review.CommentsClose CommentsPermalink





`(2) DIRECT AND EXCLUSIVE OBLIGATION OF LICENSEE- The user fee shall be the direct and exclusive obligation of the licensee and may not be deducted from amounts available as deposits to any person placing a bet.CommentsClose CommentsPermalink





`(f) Approval of License- The Director shall grant licenses under this subchapter if, in the Director's sole discretion, the applicant meets the criteria set by the Director and is generally fit to engage in the business of Internet gambling.CommentsClose CommentsPermalink





`(g) Safeguards Required of Licensee- No person shall receive or retain a license under this section unless the person implements and maintains the following requirements with respect to any Internet bet or wager:CommentsClose CommentsPermalink





`(1) Appropriate safeguards to ensure that the individual placing a bet or wager is 18 years of age or older.CommentsClose CommentsPermalink





`(2) Appropriate safeguards to ensure that the individual placing a bet or wager is physically located in a jurisdiction that permits Internet gambling at the time the bet or wager is placed.CommentsClose CommentsPermalink





`(3) Appropriate mechanisms to ensure that all taxes relating to Internet gambling due to Federal and State governments and to Indian tribes from persons engaged in Internet gambling are collected at the time of any payment of any proceeds of Internet gambling.CommentsClose CommentsPermalink





`(4) Appropriate mechanisms to ensure that all taxes relating to Internet gambling due to Federal and State governments and to Indian tribes from any licensee are collected as required by law.CommentsClose CommentsPermalink





`(5) Appropriate safeguards to combat fraud and money laundering as may be prescribed by regulations issued by the Director or a designee of the Director.CommentsClose CommentsPermalink





`(6) Appropriate safeguards to combat compulsive Internet gambling.CommentsClose CommentsPermalink





`(7) Appropriate safeguards to protect the privacy and security of any person engaged in Internet gambling.CommentsClose CommentsPermalink





`(8) Appropriate mechanisms to ensure that any assessment under subsection (e) is paid to the Director.CommentsClose CommentsPermalink





`(9) Such other requirements as the Director may establish by regulation or order.CommentsClose CommentsPermalink





`(h) Licenses Denied-CommentsClose CommentsPermalink





`(1) IN GENERAL- No license shall be granted to any individual who has been convicted under the laws of any foreign country, the United States, or any State for any criminal violation involving gambling laws, financial markets, or financial laws, including any money laundering, fraud, privacy, or information security law.CommentsClose CommentsPermalink





`(2) APPLICABILITY TO BUSINESS ENTITIES- If an applicant for a license is a corporation, partnership, or other business entity, paragraph (1) shall apply with respect to each partner, officer, or director of such corporation, partnership, or entity.CommentsClose CommentsPermalink





`(i) Term and Renewal of License-CommentsClose CommentsPermalink





`(1) TERM- Any license issued under this section shall be issued for a 1-year term beginning on the date of issuance.CommentsClose CommentsPermalink





`(2) RENEWAL- Licenses may be renewed in accordance with the requirements prescribed by the Director pursuant to this subchapter.CommentsClose CommentsPermalink





`(j) Revocation of License-CommentsClose CommentsPermalink





`(1) IN GENERAL- Any license granted under this subchapter shall be terminated or revoked by the Director if--CommentsClose CommentsPermalink





`(A) the licensee fails to comply with any provision of this subchapter; orCommentsClose CommentsPermalink





`(B) the licensee, or in any case in which the licensee the licensee is a corporation, partnership, or other business entity, any officer, partner, or director of that corporation, partnership, or other entity, is convicted of a crime involving the payments system, financial markets, or Internet gambling laws of the United States or of the jurisdiction in which the licensee is located.CommentsClose CommentsPermalink





`(2) FINAL ACTION- Any revocation of a license under paragraph (1) shall be treated as a final action by the Director.CommentsClose CommentsPermalink





`(k) Compliance With Federal Laws- Licensees shall be required to comply with anti-money laundering, anti-fraud, anti-terrorism, and such other regulations, requirements, and limitations as may be prescribed by the Director.CommentsClose CommentsPermalink





`(l) Administrative Provisions-CommentsClose CommentsPermalink





`(1) GENERAL POWERS OF DIRECTOR- Subject to the oversight and direction of the Secretary of the Treasury, the Director may--CommentsClose CommentsPermalink





`(A) require a class of licensees to maintain appropriate procedures to ensure compliance with this subchapter and regulations prescribed under this subchapter;CommentsClose CommentsPermalink





`(B) examine any licensee and any books, papers, records, or other data of licensees relevant to any recordkeeping or reporting requirements imposed by the Director under this subchapter;CommentsClose CommentsPermalink





`(C) summon a licensee or an applicant for a license, an officer or employee of a licensee or any such applicant (including a former officer or employee), or any person having possession, custody, or care of the reports and records required by the Director under this subchapter, to appear before the Director or a designee of the Director at a time and place named in the summons and to produce such books, papers, records, or other data, and to give testimony, under oath, as may be relevant or material to any investigation in connection with the enforcement of this subchapter or any application for a license under this subchapter.CommentsClose CommentsPermalink





`(2) ADMINISTRATIVE ASPECTS OF SUMMONS-CommentsClose CommentsPermalink





`(A) PRODUCTION AT DESIGNATED SITE- A summons issued pursuant to this subsection may require that books, papers, records, or other data stored or maintained at any place be produced at any business location of a licensee or applicant for a license or any designated location in any State or in any territory or other place subject to the jurisdiction of the United States not more than 500 miles distant from any place where the licensee or applicant for a license operates or conducts business in the United States.CommentsClose CommentsPermalink





`(B) NO LIABILITY FOR EXPENSES- The United States shall not be liable for any expense incurred in connection with the production of books, papers, records, or other data under this subsection.CommentsClose CommentsPermalink





`(C) SERVICE OF SUMMONS- Service of a summons issued under this subsection may be by registered mail or in such other manner calculated to give actual notice as the Director may prescribe by regulation.CommentsClose CommentsPermalink





`(3) CONTUMACY OR REFUSAL-CommentsClose CommentsPermalink





`(A) REFERRAL TO ATTORNEY GENERAL- In case of contumacy by a person issued a summons under this subsection or a refusal by such person to obey such summons or to allow the Director to conduct an examination, the Director shall refer the matter to the Secretary of the Treasury for referral to the Attorney General.CommentsClose CommentsPermalink





`(B) JURISDICTION OF COURT- The Attorney General may invoke the aid of any court of the United States within the jurisdiction of which--CommentsClose CommentsPermalink





`(i) the investigation which gave rise to the summons or the examination is being or has been carried on;CommentsClose CommentsPermalink





`(ii) the person summoned is an inhabitant; orCommentsClose CommentsPermalink





`(iii) the person summoned carries on business or may be found,CommentsClose CommentsPermalink





to compel compliance with the summons.CommentsClose CommentsPermalink





`(C) COURT ORDER- The court may issue an order requiring the person summoned to appear before the Director or a delegate of the Director to produce books, papers, records, and other data, to give testimony as may be necessary to explain how such material was compiled and maintained, to allow the Director to examine the business of a licensee, and to pay the costs of the proceeding.CommentsClose CommentsPermalink





`(D) FAILURE TO COMPLY WITH ORDER- Any failure to obey the order of the court may be punished by the court as a contempt thereof.CommentsClose CommentsPermalink





`(E) SERVICE OF PROCESS- All process in any case under this subsection may be served in any judicial district in which such person may be found.CommentsClose CommentsPermalink

`Sec. 5384. Financial institutions

`(a) Investment Banking- No person shall be held liable for engaging in investment banking activities for or on behalf of a licensee or involving a licensee, if such activities are performed in compliance with this subchapter, the Sarbanes-Oxley Act, the Securities Act of 1933 Act, the Securities Exchange Act of 1934, and any other applicable laws governing securities.CommentsClose CommentsPermalink





`(b) Payment and Transaction Processing- No person shall be held liable for engaging in payments processing activities for or on behalf of a licensee or involving a licensee, if such activities are performed in compliance with this subchapter.CommentsClose CommentsPermalink





`(c) Financial Institutions- No financial institution shall be held liable for engaging in financial activities and transactions for or on behalf of a licensee or involving a licensee, if such activities are performed in compliance with this subchapter and with applicable Federal, State, and foreign banking laws and regulations.CommentsClose CommentsPermalink

`Sec. 5385. Prohibition and limitation of licenses in States and Indian lands

`(a) State Opt Out-CommentsClose CommentsPermalink





`(1) IN GENERAL- No Internet gambling licensee may engage, under any license issued under this subchapter, in the business of Internet betting or wagering in any State which prohibits such business within such State if the Governor or other chief executive officer of such State informs the Director of such prohibition before the end of the 90-day period beginning on the date of the enactment of the Internet Gambling Regulation and Enforcement Act of 2007, or in accordance with paragraph (3), until such time as any notice of any subsequent repeal of such prohibition becomes effective under paragraph (3).CommentsClose CommentsPermalink





`(2) LIMITATIONS IMPOSED BY STATES- No Internet gambling licensee may engage, under any license issued under this subchapter, in the business of conducting any particular types of gambling activities or other contests in any State which prohibits or limits such particular types of gambling activities or other contests if the Governor or other chief executive officer of such State informs the Director of such prohibition or limitation, in a manner which clearly identifies the nature and extent of such prohibition or limitation, before the end of the 90-day period beginning on the date of the enactment of the Internet Gambling Regulation and Enforcement Act of 2007, or in accordance with paragraph (3), until such time as any notice of any amendment or repeal of such specific prohibition or limitation becomes effective under paragraph (3).CommentsClose CommentsPermalink





`(3) CHANGES TO STATE LIMITATIONS- The establishment, repeal, or amendment by any State of any prohibition or limitation referred to in paragraph (1) or (2) after the end of the 90-day period beginning on the date of the enactment of the Internet Gambling Regulation and Enforcement Act of 2007 shall apply, for purposes of this subchapter, with respect to the business of Internet betting or wagering in such State by any licensee beginning on the first January 1 that occurs after the end of the 30-day period beginning on the later of--CommentsClose CommentsPermalink





`(A) the date a notice of such establishment, repeal, or amendment is provided by the Governor or other chief executive officer of such State in writing to the Director; orCommentsClose CommentsPermalink





`(B) the effective date of such establishment, repeal, or amendment.CommentsClose CommentsPermalink





`(b) Indian Tribe Opt Out-CommentsClose CommentsPermalink





`(1) IN GENERAL- No Internet gambling licensee may engage, under any license issued under this subchapter, in the business of Internet betting or wagering within the tribal lands of any Indian tribe which prohibits such business within such tribal lands if the principal chief or other chief executive officer of such Indian tribe informs the Director of such prohibition before the end of the 90-day period beginning on the date of the enactment of the Internet Gambling Regulation and Enforcement Act of 2007, or in accordance with paragraph (3), until such time as any notice of any repeal or amendment of such prohibition becomes effective under paragraph (3).CommentsClose CommentsPermalink





`(2) LIMITATIONS IMPOSED BY INDIAN TRIBES- No Internet gambling licensee may engage, under any license issued under this subchapter, in the business of conducting any particular types of gambling activities or other contests in the tribal lands of any Indian tribe which prohibits or limits such particular types of gambling activities or other contests if the principal chief or other chief executive officer of such Indian tribe informs the Director of such prohibition or limitation, in a manner which clearly identifies the nature and extent of such prohibition or limitation, before the end of the 90-day period beginning on the date of the enactment of the Internet Gambling Regulation and Enforcement Act of 2007, or in accordance with paragraph (3), until such time as any notice of any amendment or repeal of such specific prohibition or limitation becomes effective under paragraph (3).CommentsClose CommentsPermalink





`(3) CHANGES TO INDIAN TRIBE LIMITATIONS- The establishment, repeal, or amendment by any Indian tribe of any prohibition or limitation referred to in paragraph (1) or (2) after the end of the 90-day period beginning on the date of the enactment of the Internet Gambling Regulation and Enforcement Act of 2007 shall apply, for purposes of this subchapter, with respect to the business of Internet betting or wagering in the tribal lands of such Indian tribe by any licensee beginning on the first January 1 that occurs after the end of the 30-day period beginning on the later of--CommentsClose CommentsPermalink





`(A) the date a notice of such establishment, repeal, or amendment is provided by the principal chief or other chief executive officer of such Indian tribe in writing to the Director; orCommentsClose CommentsPermalink





`(B) the effective date of such establishment, repeal, or amendment.CommentsClose CommentsPermalink





`(c) Enforcing State and Indian Tribe Limitations-CommentsClose CommentsPermalink





`(1) IN GENERAL- The Director shall take effective measures to ensure that any licensee under this subchapter, as a condition of the license, complies with any limitation or prohibition imposed by any State or Indian tribe to which the licensee is subject under paragraph (1), (2) or (3) of subsection (a) or (b), as the case may be.CommentsClose CommentsPermalink





`(2) VIOLATIONS- It shall be a violation of this subchapter for any licensee knowingly to accept bets or wagers, or engage in any Internet gambling activity within any State or in the tribal lands of any Indian tribe for which a notice is in effect under paragraph (1), (2), or (3) of subsection (a) or (b), as the case may be.CommentsClose CommentsPermalink





`(d) Intermediate Routing- The intermediate routing of electronic data shall not determine the location or locations in which a bet or wager is initiated, received or otherwise made.CommentsClose CommentsPermalink

`Sec. 5386. Sporting leagues may prohibit internet gambling on league activities

`(a) Sporting League Opt-Out- No Internet gambling licensee may engage, under any license issued under this subchapter, in the business of Internet betting or wagering in connection with any sport event or contest of any sporting league which prohibits such business if the chief executive officer of such sporting league informs the Director of such prohibition before the end of the 90-day period beginning on the date of the enactment of the Internet Gambling Regulation and Enforcement Act of 2007, or in accordance with subsection (c), until such time as any notice of any repeal of such prohibition becomes effective under paragraph (3).CommentsClose CommentsPermalink





`(b) Establishment or Repeal of Sporting- The establishment or repeal by any sporting league of any prohibition referred to in subsection (a) after the end of the 90-day period beginning on the date of the enactment of the Internet Gambling Regulation and Enforcement Act of 2007 shall apply, for purposes of this subchapter, with respect to the business of Internet betting or wagering in connection with any sport event or contest of such sporting league by any licensee beginning on the first January 1 that occurs after the end of the 30-day period beginning on the later of--CommentsClose CommentsPermalink





`(1) the date a notice of such establishment or repeal is provided by the chief executive officer of such sporting league in writing to the Director; orCommentsClose CommentsPermalink





`(2) the effective date of such establishment or repeal.CommentsClose CommentsPermalink





`(c) Violation of Sporting League Limitation-CommentsClose CommentsPermalink





`(1) IN GENERAL- The Director shall take effective measures to ensure that any licensee under this subchapter, as a condition of the license, complies with any prohibition imposed by any sporting league to which the licensee is subject under subsection (a) or (b).CommentsClose CommentsPermalink





`(2) VIOLATIONS- It shall be a violation of this subchapter for any licensee knowingly to engage in the business of Internet betting or wagering in connection with any sport event or contest of any sporting league for which a notice is in effect under subsection (a) or (b).CommentsClose CommentsPermalink

`Sec. 5387. Safe harbors

`It shall be a defense against any prosecution or enforcement action under any Federal or State law against any person possessing a valid license under this subchapter that the activity is authorized under and has been carried out lawfully under the terms of this subchapter.CommentsClose CommentsPermalink

`Sec. 5388. Criminal penalties

`(a) In General- Whoever knowingly violates any provision of this subchapter shall be fined under title 18, or imprisoned for not more than 5 years, or both.CommentsClose CommentsPermalink





`(b) Permanent Injunction- Upon conviction of a person under this section, the court may enter a permanent injunction enjoining such person from placing, receiving, or otherwise making bets or wagers or sending, receiving, or inviting information assisting in the placing of bets or wagers.CommentsClose CommentsPermalink

`Sec. 5389. Rules of construction

`(a) No Effect on Other Law- No provision of this subchapter shall be construed as altering, limiting, or extending any Federal or State law or Tribal-State compact prohibiting, permitting, or regulating gambling within the United States.CommentsClose CommentsPermalink





`(b) Coordination With Certain Gambling Laws- No provision of this chapter shall be construed as permitting any bet or wager that would otherwise violate any provision of--CommentsClose CommentsPermalink





`(1) the Interstate Horse Racing Act;CommentsClose CommentsPermalink





`(2) the Professional and Amateur Sports Protection Act;CommentsClose CommentsPermalink





`(3) the Gambling Devices Transportation Act; orCommentsClose CommentsPermalink





`(4) the Indian Gaming Regulatory Act.'.CommentsClose CommentsPermalink





(b) Technical and Conforming Amendment- Section 310(b)(2) of title 31, United States Code is amended--CommentsClose CommentsPermalink





(1) by redesignating subparagraphs (J) and (K) as subparagraphs (K) and (L), respectively; andCommentsClose CommentsPermalink





(2) by inserting after subparagraph (I) the following new subparagraph:CommentsClose CommentsPermalink





`(J) Administer the requirements of subchapter V of chapter 53.'CommentsClose CommentsPermalink





(c) Clerical Amendment- The table of sections for chapter 53 of title 31, United States Code, is amended by adding at the end the following:CommentsClose CommentsPermalink

`subchapter v--regulation of lawful internet gambling

`5381. Congressional findings and purpose.CommentsClose CommentsPermalink





`5382. Definitions.CommentsClose CommentsPermalink





`5383. Establishment and administration of licensing program.CommentsClose CommentsPermalink





`5384. Financial institutions.CommentsClose CommentsPermalink





`5385. Prohibition and limitation of licenses in States and Indian lands.CommentsClose CommentsPermalink





`5386. Sporting leagues may prohibit Internet gambling on league activities.CommentsClose CommentsPermalink





`5387. Safe harbors.CommentsClose CommentsPermalink





`5388. Criminal penalties.CommentsClose CommentsPermalink





`5389. Rules of construction.'.CommentsClose CommentsPermalink

SEC. 3. REPORT REQUIRED.

(a) In General- Before the end of the 1-year period beginning on the effective date of the regulations prescribed under section 4(a), and annually thereafter, the Director shall submit a report to the Congress on the licensing and regulation of Internet gambling operators.CommentsClose CommentsPermalink





(b) Information Required- Each report submitted under subsection (a) shall include the following information:CommentsClose CommentsPermalink





(1) A comprehensive statement regarding the limitations imposed by the States, Indian tribes, and sporting leagues.CommentsClose CommentsPermalink





(2) Relevant statistical information on applicants and licenses.CommentsClose CommentsPermalink





(3) The amount of licensing and user fees collected during the period covered by the report.CommentsClose CommentsPermalink





(4) Information on regulatory or enforcement actions undertaken during the period.CommentsClose CommentsPermalink





(5) Any other information that may be useful to the Congress in evaluating the effectiveness of the Act in meeting its purpose, including the provision of protections against underage gambling, compulsive gambling, money laundering, and fraud, and in combating tax avoidance relating to online gambling.CommentsClose CommentsPermalink

SEC. 4. EFFECTIVE DATE.

(a) Regulations- The Director of the Financial Crimes Enforcement Network shall prescribe such regulations as may appropriate to implement subchapter V of chapter 53 of title 31, United States Code (as added by section 2(a) of this Act) and shall publish such regulations in final form in the Federal Register before the end of the 180-day period beginning on the date of the enactment of this Act.CommentsClose CommentsPermalink





(b) Scope of Application- The amendment made by section 2(a) shall apply after the end of the 90-day period beginning on the date of the publication of the regulations in final form in accordance with subsection (a).CommentsClose CommentsPermalink