,i #aacth ,,congress #ast ,session ,h4 ,r4 #bbhb ,,in ,,the ,,house ,,of ,,representatives ,june #f1 #bjac ,mr4 ,king of ,new ,york introduced the following bill2 which was referred to the ,committee on ,energy and ,commerce1 and in addition to the ,committees on ,financial ,services and the ,judiciary1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to regulate ,internet gambling1 to provide consumer protections1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,internet ,gambling ,regulation1 ,enforcement1 and ,consumer ,protection ,act of #bjac4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,title ,i--,,internet ,,gambling ,,regulation ,,and ,,consumer ,,protection ,sec4 #aja4 ,findings4 ,sec4 #ajb4 ,definitions4 ,sec4 #ajc4 ,prohibition on operation of internet gambling facilities4 ,sec4 #ajd4 ,office of ,internet ,gambling ,oversight4 ,sec4 #aje4 ,qualified bodies4 ,sec4 #ajf4 ,establishment of licensing program for internet gambling4 ,sec4 #ajg4 ,compulsive gaming1 responsible gaming1 and self-exclusion program requirements4 ,sec4 #ajh4 ,prohibition on use of licenses in certain ,states and ,indian lands4 ,sec4 #aji4 ,prohibition on bets or wagers on sporting events4 ,sec4 #aaj4 ,public internet gambling and internet gambling parlors prohibited4 ,sec4 #aaa4 ,safe harbor4 ,sec4 #aab4 ,cheating and other fraud4 ,sec4 #aac4 ,construction and relation to other law4 ,sec4 #aad4 ,orderly transition4 ,sec4 #aae4 ,annual reports4 ,sec4 #aaf4 ,independent testing of licensed operator equipment4 ,sec4 #aag4 ,inclusion of authority to address gambling addiction in samhsa authorities4 ,sec4 #aah4 ,compilation of datasets on player behavior4 ,sec4 #aai4 ,effective date4 ,title ,,ii--,,enforcement ,,under ,,titles #ah ,,and #ca1 ,,united ,,states ,,code ,sec4 #bja4 ,financial service providers4 ,sec4 #bjb4 ,amendments relating to illegal gambling businesses4 ,sec4 #bjc4 ,further amendments to subchapter ,,iv of chapter #ec of title #ca1 ,united ,states ,code4 ,sec4 #bjd4 ,bettor forfeiture4 ,sec4 #bje4 ,regulations4 ,sec4 #bjf4 ,conforming amendment4 ,title ,,iii--,,other ,,matters ,sec4 #cja ,severability4 ,i ,,internet ,,gambling ,,regulation ,,and ,,consumer ,,protection #aja4 ,findings 7a7 ,findings ,congress makes the following findings3 7#a7 ,since the development of the ,internet1 ,internet sites offering ,internet gambling have raised consumer protection and enforcement concerns for ,federal and ,state governments as such ,internet sites are often run by unknown operators located in many different countries1 subject to little or no oversight1 and have sought to attract customers from the ,united ,states4 7#b7 ,subchapter ,,iv of chapter #ec of title #ca1 ,united ,states ,code1 which was added by the enactment of the ,unlawful ,internet ,gambling ,enforcement ,act of #bjjf 7title ,,viii of ,public ,law #aji-cdg2 #abj ,stat4 #aieb71 makes it a ,federal crime for gambling businesses to knowingly accept most forms of payment in connection with the participation of another person in unlawful ,internet gambling4 ,since the enactment of the ,unlawful ,internet ,gambling ,enforcement ,act of #bjjf1 such subchapter ,,iv has helped aid enforcement efforts against unlawful ,internet gambling operators and to limit unlawful ,internet gaming involving ,united ,states persons4 7#c7 ,in #bjjf1 ,congress enacted the ,unlawful ,internet ,gambling ,enforcement ,act1 which prohibited the acceptance or processing of financial instruments for the purpose of unlawful ,internet gambling1 but which did not clarify which bets or wagers are prohibited by law4 ,groups such as the ,national ,district ,attorneys ,association and the ,fraternal ,order of ,police have expressed support for a law that clearly prohibits all unlicensed ,internet gambling4 ,enacting such a law will aid law enforcement1 prosecutors and courts in their efforts to curtail unlawful ,internet gambling4 7#d7 ,on ,december #bc1 #bjaa1 the ,department of ,justice released a memorandum opinion of the ,office of ,legal ,counsel dated ,september #bj1 #bjaa1 that construed section #ajhd of title #ah1 ,united ,states ,code 7referred to as the ,wire ,act71 to apply only to sports-related gambling activities in interstate and foreign commerce1 with the result that non-sports related ,internet gambling in the ,united ,states has been found not to be prohibited under ,federal law if it is lawful under ,state law4 7#e7 ,a growing number of ,states and ,indian tribes have legalized or are considering legalizing and promoting ,internet gambling to generate revenue4 ,absent ,federal limitations and enforcement1 ,state regulation of ,internet gambling1 including consumer safeguards1 could vary widely from ,state to ,state1 and ,states could have difficulty enforcing ,internet gambling restrictions within their borders1 especially against out-of-,state operators4 7#f7 ,a number of ,states have authorized or are considering authorizing ,internet purchases of lottery subscriptions or other lottery games to generate revenue1 which should not be prevented by ,federal law4 7#g7 ,federal law needs to be updated to make clear its relationship to ,internet gambling to strengthen enforcement and to ensure an effective ,internet gambling enforcement structure that protects consumers and the ability of ,states to enforce ,state laws relating to ,internet gambling4 7#h7 ,since the passage of the ,professional and ,amateur ,sports ,protection ,act 7,public ,law #ajb-eei7 in #aiib1 which added chapter #agh to title #bh1 ,united ,states ,code1 such chapter has played an important and effective role in implementing longstanding ,federal policy against gambling on professional1 scholastic1 and amateur sporting events4 7#i7 ,additional tools to assist law enforcement1 banks and financial transaction providers1 and ,internet service providers in the prevention of unlawful ,internet gambling activities would be important and beneficial4 ,maintenance of a list of licensed ,internet gambling operators would provide a level of certainty as to permitted transactions and law enforcement efforts4 7#aj7 ,internet gambling1 like much other ,internet commerce1 traverses ,state boundaries4 ,any particular transaction may cross a number of ,state boundaries from origin to destination1 and communications between the same parties at different times may travel along markedly different routes1 based on factors such as traffic1 load capacity1 and other technical considerations outside the control of sender and recipient4 ,for that reason1 among others1 the ,federal courts consistently have ruled that the ,internet is an instrumentality and channel of interstate commerce and1 as such1 is subject to ,congress's plenary authority4 ,for these same reasons1 ,internet gambling by its very nature implicates ,federal concerns1 and is different in kind and effect from traditional gambling activity4 7#aa7 ,a ,federal regime to regulate ,internet gambling and to protect consumers should include an effective framework-- 7,a7 to prevent underage wagering and otherwise to protect vulnerable individuals2 7,b7 to ensure the games are fair and are conducted honestly2 7,c7 to ensure that ,states and ,indian tribes that wish to prohibit ,internet gambling may do so2 7,d7 to promote the ability of ,state and ,tribal lotteries to generate revenue for the jurisdictions that license them2 and 7,e7 to facilitate the enforcement of ,federal1 ,state1 and tribal laws against unauthorized ,internet gambling4 7#ab7 ,to avoid uneven treatment of ,internet gambling and land-based gambling and the risk of discrimination against existing land-based gambling operations and ,states that have authorized gambling1 a ,federal regime to regulate ,internet gambling should contain revenue measures sufficient to ensure that ,internet gambling activities generate at least equivalent revenues for the ,federal ,government and the ,states combined as they would generate if the gambling was carried out at land-based operations4 7#ac7 ,federal regulation of ,internet gambling should be designed and implemented to foster a level-playing field among all forms of traditional gambling and all types of ,internet gambling operators1 including casinos1 ,indian tribes offering gambling services1 ,state-licensed lotteries1 horseracing1 and any other form of gambling that is not sports-related1 as well as among ,internet companies with relevant expertise in e-commerce who meet the same qualifications as traditional casinos for integrity and for the capacity to carry out ,internet gambling operations that meet applicable ,federal and ,state standards4 #ajb4 ,definitions ,in this title3 7#a7 ,applicant ,the term applicant means any person who has applied for a license under this title4 7#b7 ,bet or wager 7,a7 ,in general ,except as provided in subparagraph 7,b71 the term bet or wager has the meaning given the term in section #ecfb of title #ca1 ,united ,states ,code4 7,b7 ,exception ,the term bet or wager does not include the following3 7i7 ,a bet or wager that is permissible under the ,interstate horseracing ,act of #aigh 7#ae ,u4,s4,c4 #cjja et seq474 7ii7 ,a qualifying intrastate lottery transaction4 7#c7 ,casino gaming 7,a7 ,in general ,except as provided in subparagraph 7,b71 the term casino gaming means the full range of casino gaming activity licensed by regulatory bodies of ,states or ,indian tribes that would be qualified as class ,,iii gaming under section #d of the ,indian ,gaming ,regulatory ,act 7#be ,u4,s4,c4 #bgjc7 if that ,act were applicable to the gaming4 7,b7 ,exception ,the term casino gaming does not include lotteries of ,states or ,indian tribes in compliance with the law of that ,state or ,indian tribe1 as applicable1 and which solely provide lottery tickets to participants wholly within the boundaries of such ,state or the ,indian lands of such ,indian tribe4 7#d7 ,gaming device 7,a7 ,in general ,except as provided in subparagraph 7,b71 the term gaming device means any computer-based gambling machine1 including slot machines and video lottery terminals that have been approved by a gaming regulatory authority of a ,state or ,indian tribe4 7,b7 ,exception ,the term gaming device does not include machines that process bets or wagers for pari-mutuel betting pools4 7#e7 ,indian lands and ,indian tribe ,the terms ,indian lands and ,indian tribe have the meaning given the terms in section #d of the ,indian ,gaming ,regulatory ,act 7#be ,u4,s4,c4 #bgjc74 7#f7 ,internet ,the term ,internet has the meaning given the term in section #ecfb of title #ca1 ,united ,states ,code4 7#g7 ,internet gambling facility ,the term ,internet gambling facility means an ,internet website1 or similar communications facility in which transmissions may cross ,state boundaries1 through which a bet or wager is initiated1 received1 or otherwise made1 whether transmitted by telephone1 ,internet1 satellite1 or other wire or wireless communication facility1 service1 or medium1 including an ,internet gambling facility not operating under a license in good standing issued under this title1 including any facility that facilitates qualifying intrastate lottery transactions to the degree that such facility facilitates such transactions4 7#h7 ,licensee ,the term licensee means a person who operates an ,internet gambling facility under a license issued by a qualified body pursuant to this title4 7#i7 ,live racing ,the term live racing means1 with respect to a physical race track1 the conduct of live thoroughbred horse races at such race track and does not include any races simulcasted from a separate race track4 7#aj7 ,operate an internet gambling facility ,the term operate an ,internet gambling facility means to conduct1 direct1 manage1 own1 supervise1 or control an ,internet gambling facility4 7#aa7 ,person ,the term person means a natural person1 corporation1 casino gambling facility1 or race track1 an ,internet gambling facility1 an ,internet poker facility1 a ,state or ,state agency1 or an ,indian tribe or corporation1 agency1 or instrumentality of an ,indian tribe4 7#ab7 ,qualified body ,the term qualified body means the following3 7,a7 ,the ,office of ,internet ,gambling ,oversight established under section #ajd7;a7 and designated under section #aje7;a77#b74 7,b7 ,any ,state agency or regulatory body of an ,indian tribe that has been designated as a qualified body under paragraph 7#a7 or 7#c7 of section #aje7;a74 7#ac7 ,qualified race track ,the term qualified race track means a race track that has been licensed by a regulatory authority of a ,state or ,indian tribe4 7#ad7 ,qualifying intrastate lottery ,the term qualifying intrastate lottery means a lottery or other prize1 through the purchase of a chance or opportunity to win1 that is offered by a ,state or ,indian tribe-- 7,a7 that is operating lawfully under the laws of that ,state or ,indian tribe1 as the case may be2 7,b7 that is not related to a sporting event2 7,c7 in which the opportunity to win is predominately subject to chance2 and 7,d7 that provides the chances or opportunity to win for purchase to participants only within the boundaries of that ,state or the ,indian lands of that ,indian tribe1 as the case may be4 7#ae7 ,qualifying lottery transaction ,the term qualifying lottery transaction means the purchase of a chance or opportunity to win a lottery or other prize offered by a ,state lottery1 operating lawfully under the laws of a ,state or ,indian tribe1 that is not sports-related and-- 7,a7 which opportunity to win is predominantly subject to chance2 and 7,b7 which is authorized by a ,state or ,indian tribe4 7#af7 ,remote gaming equipment 7,a7 ,in general ,except as provided in subparagraph 7,b71 the term remote gaming equipment means electronic or other equipment principally used by or on behalf of an operator of an ,internet gambling facility1 including by any significant vendor to such operator1 to-- 7i7 register a person's participation in ,internet gambling and to store information relating thereto2 7ii7 present to persons who are participating or who may participate in ,internet gambling the game that is to be played2 7iii7 determine all or part of1 or the effect of1 a result relevant to ,internet gambling and to store information relating thereto2 7iv7 accept payment with respect to ,internet gambling from the player2 or 7v7 authorize payment of any winnings in respect of ,internet gambling4 7,b7 ,exception ,the term remote gaming equipment does not include the following3 7i7 ,equipment used for business continuity1 back-up1 excess capacity1 or other secondary use4 7ii7 ,a computer which is used by a person to participate in ,internet gambling unless the computer is provided by or on behalf of the person who is conducting or providing the facilities for the game4 7iii7 ,equipment operated in the ordinary course of providing banking1 telecommunications1 or payment processing services4 7iv7 ,such other equipment that provides ancillary services as the ,secretary considers appropriate4 7#ag7 ,secretary ,the term ,secretary means the ,secretary of the ,treasury4 7#ah7 ,significant vendor ,the term significant vendor means a person who-- 7,a7 on behalf of a licensee1 knowingly manages1 administers1 or controls bets or wagers that are initiated1 received1 or otherwise made within the ,united ,states2 7,b7 on behalf of a licensee1 knowingly manages1 administers1 or controls the games with which such bets or wagers are associated2 7,c7 on behalf of a licensee1 develops1 maintains1 or operates the software or other system programs or hardware on which the games or the bets or wagers are managed1 administered1 or controlled2 7,d7 provides the trademarks1 tradenames1 service marks1 or similar intellectual property under which a licensee identifies its ,internet gambling facility to its customers in the ,united ,states2 7,e7 sells1 licenses1 or otherwise receives compensation for selling or licensing information on individuals in the ,united ,states that made bets or wagers with an ,internet gambling facility not licensed under this title via a database or customer lists2 7,f7 provides any products1 services1 or assets to a licensee and is paid a percentage of gaming revenue or commission fees by the licensee 7not including fees to financial institutions and payment providers for facilitating a deposit by a customer72 or 7,g7 with respect to an applicant1 proposes to provide any of the activities1 services1 or items identified in subparagraphs 7,a7 through 7,f74 7#ai7 ,sporting event 7,a7 ,in general ,except as provided in subparagraph 7,b71 the term sporting event means any athletic competition1 whether professional1 scholastic1 or amateur or any performance of any athlete in such competitions4 7,b7 ,exception ,the term sporting event does not include any activity described in section #cgjd7;a77#d7 of title #bh1 ,united ,states ,code4 7#bj7 ,state ,the term ,state means each of the several ,states of the ,united ,states1 the ,district of ,columbia1 and any commonwealth1 territory1 or possession of the ,united ,states4 #ajc4 ,prohibition on operation of internet gambling facilities 7a7 ,prohibition 7#a7 ,in general ,it shall be unlawful for a person to operate an ,internet gambling facility that offers services to persons in the ,united ,states1 except as authorized under this ,act4 7#b7 ,exception ,paragraph 7#a7 shall not apply to the operation of an ,internet gambling facility by a person located inside the ,united ,states who is a licensed operator under this ,act2 to any qualified race track2 to any operator offering qualifying lottery transactions2 to any operator authorized and licensed to provide services relating to bets or wagers by a ,state or ,indian tribe in compliance with the law of that ,state or ,indian tribe1 as applicable1 and which solely provides services to participants wholly within the boundaries of such ,state or the ,indian lands of such ,indian tribe2 or to any person engaged outside the ,united ,states in which bets or wagers are initiated1 received1 or otherwise made solely by individuals located outside the ,united ,states4 7b7 ,criminal penalties ,any person who violates this section shall be fined under title #ah1 ,united ,states ,code1 imprisoned for not more than #aj years1 or both4 #ajd4 ,office of ,internet ,gambling ,oversight 7a7 ,establishment 7#a7 ,in general ,not later than #ahj days after the date of the enactment of this ,act1 the ,secretary shall establish within the ,department of the ,treasury an office to exercise the functions of the ,secretary under this title4 7#b7 ,designation ,the office established under paragraph 7#a7 shall be known as the ,office of ,internet ,gambling ,oversight 7in this section referred to as the ,office74 7b7 ,executive director 7#a7 ,in general ,the ,secretary shall appoint as the head of the ,office an executive director4 7#b7 ,experience and expertise ,the executive director of the ,office shall be appointed by the ,secretary from among individuals who demonstrate the following3 7,a7 ,skill and experience in gaming regulation and enforcement4 7,b7 ,experience in criminal investigations and law enforcement generally4 7,c7 ,a reputation for good character1 honesty1 and integrity4 7#c7 ,background investigation ,before appointing an individual as executive director under paragraph 7#a71 the ,secretary shall conduct a background investigation into the financial stability1 integrity1 and responsibility of the individual4 7#d7 ,limitations ,the ,secretary may not appoint under paragraph 7#a7 an individual who-- 7,a7 has been convicted of a felony2 or 7,b7 maintains any ownership or equity interest or any ongoing business relationship with-- 7i7 an operator of a casino gaming facility1 ,internet gambling facility1 race track1 lottery1 or other regulated gambling entity2 or 7ii7 ,a significant vendor4 7c7 ,delegation of authority 7#a7 ,in general ,the ,secretary may delegate to the executive director of the ,office any authority1 duty1 or responsibility conferred upon the ,secretary by this title4 7#b7 ,regulatory authority of executive director ,the executive director of the office may prescribe such regulations and take such actions as may be necessary to carry out such authorities1 duties1 or responsibilities delegated to the executive director by the ,secretary paragraph 7#a74 7d7 ,regulations and standards 7#a7 ,regulations and standards necessary to function as qualified body ,with respect to the application of this title to the functions of the ,office as a qualified body under section #aje7;a77#b71 the ,secretary shall1 not later than #bgj days after the date of the enactment of this ,act1 prescribe regulations and standards to implement the requirements set out in subsections 7d7 and 7g7 of section #ajf and section #ajg4 7#b7 ,manner of prescription ,regulations prescribed under paragraph 7#a7 shall be prescribed in accordance with section #eec of title #e1 ,united ,states ,code4 7e7 ,publication of information to facilitate submittal of applications for initial designation as qualified bodies ,not later than #aej days after the date of the enactment of this ,act1 the ,secretary shall publish in the ,federal ,register such information as may be necessary for an applicant to submit a complete application under section #aje7;a77#a77;,b74 7f7 ,detail of government employees ,any ,federal ,government employee may be detailed to the office without reimbursement1 and such detail shall be without interruption or loss of civil service status or privilege4 #aje4 ,qualified bodies 7a7 ,designation of qualified bodies 7#a7 ,initial designation of qualified bodies 7,a7 ,designation 7i7 ,in general ,not later than #bgj days after the date of the enactment of this ,act1 the ,secretary shall designate as qualified bodies all ,state agencies1 and regulatory bodies of ,indian tribes1 that submit applications under subparagraph 7,b7 and satisfy the criteria set forth under subparagraph 7,c74 7ii7 ,subsequent designations ,after the initial designations-- 7,i7 the ,secretary may at any time designate additional ,state agencies or regulatory bodies of ,indian tribes as qualified bodies as deemed appropriate to carry out the goals of this ,act1 so long as they meet the criteria set forth under subparagraph 7,c72 and 7,,ii7 notify each such agency or regulatory body of the determinations and designations made under subclause 7,i74 7,b7 ,application ,each ,state agency or regulatory body of an ,indian tribe seeking to be designated as a qualified body under subparagraph 7,a7 shall submit to the ,secretary an application therefor in such form and containing such information as the ,secretary may require1 which shall be submitted not later than #ahj days after the date of the enactment of this ,act for any such agency or body that seeks to be among those designated under subparagraph 7,a77i74 7,c7 ,standards for qualified bodies ,the ,secretary shall prescribe strict threshold requirements for the designation of agencies or regulatory bodies as qualified bodies under this paragraph1 including standards relating to the following3 7i7 ,the size and qualification of staff of the qualified body to ensure the qualified body employs sufficient number of enforcement agents with experience in gaming regulatory enforcement areas to discharge its intended functions and has the sophistication and resources necessary to evaluate issues unique to the ,internet environment4 7ii7 ,the length of time the qualified body has regulated other forms of gaming or e-commerce to ensure designations of only those regulatory bodies that have a history of demonstrated regulatory enforcement and oversight commensurate with the responsibilities imposed under this title4 7iii7 ,the qualified body's experience and willingness to work with ,federal authorities1 including the ,financial ,crimes ,enforcement ,network4 7iv7 ,the capacity and experience of the qualified body in conducting rigorous suitability reviews under section #ajf4 7v7 ,the adequacy of enforcement and regulatory authorities for the qualified body under the law of the applicable ,state or ,indian tribe1 including1 at a minimum1 requirements and authorities on the following3 7,i7 ,to investigate the suitability of each person required to be found suitable in connection with an application or license under this title4 7,,ii7 ,to require licensees to maintain appropriate procedures to ensure the compliance of licensees with the provisions of this title and the regulations prescribed thereunder4 7,,iii7 ,to examine any licensee and any books1 papers1 records1 or other data of licensees and significant vendors relevant to any recordkeeping or reporting requirements imposed by the agency or regulatory body under this title4 7,,iv7 ,to summon a licensee1 an applicant1 a significant vendor1 an officer or employee of a licensee1 applicant1 or significant vendor 7including a former officer or employee71 or any person having possession1 custody1 or care of the reports and records required by the agency or regulatory body as a qualified body under this title to appear before the agency or regulatory body at such time and place named in the summons1 to produce such books1 papers1 records1 or other data1 and to give such testimony1 under oath1 as may be relevant or material to any investigation in connection with the enforcement o this title or any application for a license under this title4 7,v7 ,to enforce or direct enforcement of a summons in ,state or tribal court1 as the case may be4 7,,vi7 ,to investigate any violation of a provision of this title1 any applicable regulation prescribed under this title1 and any other violation of applicable ,state or tribal law relating to the operation of an ,internet gambling facility4 7,,vii7 ,to conduct continuing reviews of applicants1 licensees1 and significant vendors and the operation of ,internet gambling facilities by use of technological means1 on-site observation of facilities1 including servers1 or other reasonable means to assure compliance with the provisions of this title and any applicable regulation prescribed thereunder4 7,,viii7 ,to impose civil penalties for violations of this title and any applicable regulation prescribed thereunder or applicable order issued thereunder1 including ,state or tribal law described under this subsection4 7,,ix7 ,to ensure that the hardware1 software1 and communications equipment1 randomness1 configuration1 and network security of the ,internet gambling facility are tested by an independent testing laboratory4 7,x7 ,to resolve disputes between licensees and the individuals participating in ,internet gambling via the ,internet gambling facilities of the licensees4 7vi7 ,such other standards as the ,secretary considers relevant to the ability of an agency or regulatory body to serve as an effective qualified body4 7#b7 ,designation of office of internet gambling oversight 7,a7 ,in general ,not later than #bgj days after the date of the enactment of this ,act1 the ,secretary shall designate the ,office of ,internet ,gambling ,oversight established under section #ajd7;a7 as a qualified body that may issue licenses to ,internet gambling facility applicants and regulate the operation of ,internet gambling facilities by any applicant who seeks to operate a licensed ,internet gambling facility in the ,united ,states4 7,b7 ,construction ,subparagraph 7,a7 shall not be construed to require any applicant seeking a license under this title and submitting an application under section #ajf7;c77#a7 to submit such application directly to the ,office of ,internet ,gambling ,oversight1 rather than submitting such application to a ,state agency or regulatory body of an ,indian tribe that has been designated by the ,office of ,internet ,gambling ,oversight as a qualified body4 7#c7 ,nonqualifying ,state and tribal regulatory authorities due to limited experience or conflicts 7,a7 ,in general ,the ,secretary may not approve an application from a ,state agency or regulatory body of an ,indian tribe under paragraph 7#a7 if-- 7i7 the agency or regulatory body is located in a ,state or ,indian lands that-- 7,i7 has not opted in under section #ajh and has not demonstrated an intent to opt in under such section2 or 7,,ii7 has not opted in under such section and has demonstrated an intent to opt in under such section but has failed to opt in under such section during the #a-year period beginning on the date of the agency's or regulatory body's application2 or 7ii7 the members of the agency or regulatory body are selected or controlled1 directly or indirectly1 by a person that has any ownership interest in an applicant1 licensee1 or significant vendor under this title or an ,internet gambling facility1 unless-- 7,i7 such applicant or licensee is licensed by the ,secretary2 or 7,,ii7 such significant vendor is certified as suitable by the ,secretary 7and remains so certified at all times while providing services as a significant vendor to any licensee under this title74 7,b7 ,non-controlling investment ,a non-controlling investment of a ,state1 ,indian tribe1 or local government pension1 retirement1 annuity1 or endowment fund shall not be considered an ownership interest for purposes of subparagraph 7,a77ii74 7#d7 ,withdrawal of designation 7,a7 ,in general ,beginning on the date that is #a year after the date on which the ,secretary prescribes final regulations under this title1 the ,secretary may1 after providing at least #fj days notice to a qualified body of the ,secretary's intent to do so1 withdraw the designation of a qualified body under this section if the ,secretary determines that-- 7i7 the qualified body is not in compliance with the requirements of this title or regulations prescribed thereunder2 or 7ii7 the qualified body is not in compliance with the conditions under which the qualified body was designated4 7,b7 ,opportunity to comply 7i7 ,in general ,the ,secretary may provide a qualified body who receives notice under subparagraph 7,a7 with an opportunity to come into compliance as specified in that notice for a period of not more than #ij days4 7ii7 ,extension ,the ,secretary may extend the period in clause 7i7 by not more than #ahj additional days if the qualified body has made substantial progress toward compliance as of the expiration of the first #ij day period4 7,c7 ,effect of notice ,the ,secretary may prohibit a qualified body that receives notice under subparagraph 7,a7 from issuing new licenses under this title until the ,secretary determines that the qualified body is in compliance with the requirements of this title and regulations prescribed thereunder4 7,d7 ,right to appeal ,a ,state agency or regulatory body of an ,indian tribe that has had its designation as a qualified body withdrawn under subparagraph 7,a7 or 7,b7 may seek judicial review of such withdrawal under chapter #g of title #e1 ,united ,states ,code4 7#e7 ,action upon withdrawal of designation 7,a7 ,in general ,not later than #cj days after the date on which the ,secretary withdraws a designation of a ,state agency or regulatory body of an ,indian tribe under paragraph 7#e71 each person with a license issued by the agency or regulatory body shall-- 7i7 7,i7 cease offering1 accepting1 and providing services with respect to bets or wagers from persons located in the ,united ,states under such license2 and 7,,ii7 return all customer deposits of ,united ,states customers1 or place those sums the return of which to ,united ,states customers is not feasible due to change in customer address1 bank details1 or similar difficulty in escrow in an account with a financial institution in the ,united ,states for safekeeping and orderly disposition by the ,secretary2 or 7ii7 apply for a new license from a different qualified body4 7,b7 ,interim operation ,if a person applies for a new license under clause 7ii7 of subparagraph 7,a71 the person may continue the activities described in clause 7i77,i7 of such subparagraph until final action is taken on the license application by the qualified body4 7,c7 ,interim regulatory oversight 7i7 ,in general ,until final action is taken under subparagraph 7,b7 with respect to a person1 the ,secretary shall have enforcement and regulatory authority over the licensed activities of such person4 7ii7 ,delegation ,the ,secretary may delegate enforcement and regulatory authority under clause 7i7 to such qualified body as the ,secretary considers appropriate1 with the consent of the qualified body4 7b7 ,oversight of qualified bodies ,the ,secretary may investigate and take such action as the ,secretary considers appropriate with respect to any qualified body that appears1 based upon the ,secretary's own inquiry or based upon credible information provided by other qualified bodies1 applicants1 licensees1 or law enforcement officials1 to be deficient or substantially less rigorous than other qualified bodies in the discharge of its responsibilities under this title4 #ajf4 ,establishment of licensing program for internet gambling 7a7 ,treasury responsibilities and powers ,the ,secretary shall have responsibility and authority for the following activities3 7#a7 ,reviewing and qualifying applicants to become ,internet gambling facilities under section #aje7;a77#b74 7#b7 ,reviewing and qualifying agencies and regulatory bodies under section #aje7;a77#b74 7#c7 ,exercising oversight over qualified bodies to ensure that qualified bodies-- 7,a7 comply with the requirements of this title2 and 7,b7 carry out their regulatory and enforcement functions under this title with appropriate diligence4 7#d7 ,investigating and taking appropriate remedial action with respect to any qualified body under section #aje4 7#e7 ,prescribing such regulations as may be necessary to administer and enforce the provisions of this title1 including issuing regulations establishing rules and procedures for dealing with sums placed in escrow under subsection 7l77#g71 section #aje7;a77#f77;,a77i77,,ii71 and section #aad7;b77#a77;,e74 7#f7 ,employing enforcement agents with sufficient training and experience to administer the requirements of this title and the regulations prescribed thereunder4 7#g7 ,enforcing the requirements of this title by all appropriate means provided under this title and other provisions of law4 7b7 ,internet gambling facility licensing program 7#a7 ,authority to issue licenses limited to non-sports related internet gambling ,a qualified body may issue licenses under this title only for the operation of non-sports related ,internet gambling facilities4 7#b7 ,authority to operate internet gambling facility under valid license 7,a7 ,in general ,notwithstanding any other provision of law and subject to the provisions of this title1 a licensee may accept a bet or wager with respect to ,internet gambling from an individual located in the ,united ,states and may offer related services so long as the license of the licensee issued under this title remains in good standing4 7,b7 ,only one license required ,nothing in this title may be construed to require a person to obtain a license from more than one qualified body in order to operate an ,internet gambling facility under this title4 7,c7 ,significant vendors 7i7 ,in general ,except as provided in clause 7ii71 if a person seeks a certificate of suitability from a qualified body to provide services to a licensee or applicant as a significant vendor with respect to an ,internet gambling facility1 such person shall not be required to obtain a license under this title to provide such services with respect to that ,internet gambling facility4 7ii7 ,exception ,if a qualified body determines that requiring a person described in clause 7i7 to seek a license is necessary to prevent evasion of any provision of this title1 and requiring so would otherwise be consistent with the provisions of this title1 such qualified body may require such person to seek a license under this title instead of a certificate of suitability4 7#c7 ,operation outside the ,united ,states 7,a7 ,limitation ,a licensee or an affiliate of a licensee may not operate an ,internet gambling facility that accepts a bet or wager from an individual located outside of the ,united ,states unless the transaction is lawful under this ,act and is not unlawful in the jurisdiction in which the individual is located4 7,b7 ,construction ,nothing in this title shall be construed to authorize a licensee or a foreign affiliate thereof to accept a bet or wager from an individual located in any jurisdiction outside the ,united ,states that prohibits the licensee or a foreign affiliate from accepting such bet or wager4 7c7 ,application for license 7#a7 ,application ,a person seeking to operate an ,internet gambling facility under this title shall submit to the ,office of ,internet ,gambling ,oversight or any other qualified body an application for a license therefor at such time1 in such form1 and in such manner as the qualified body receiving the application considers appropriate4 7#b7 ,elements ,each application submitted under paragraph 7#a7 shall include such information as the qualified body receiving the application considers appropriate1 including at a minimum the following3 7,a7 ,complete financial information about the applicant4 7,b7 ,documentation showing the organization of the applicant and all related businesses and affiliates4 7,c7 ,the criminal and financial history of-- 7i7 the applicant2 7ii7 each of the senior executives and directors of the applicant2 7iii7 any other person who is in control of the applicant2 and 7iv7 such other persons as the qualified body considers appropriate4 7,d7 ,such other information as may be necessary for the suitability analysis required under subsection 7d74 7,e7 ,disclosure of all other applications for licenses previously or simultaneously submitted under paragraph 7#a7 to other qualified bodies and whether those applications are pending1 were granted1 or were denied4 7,f7 ,a detailed description of the applicant's plan for complying with all applicable requirements and regulations prescribed pursuant to this title1 with particular emphasis on the applicant's ability to comply with the regulations prescribed under subsection 7g74 7,g7 ,a certification by the applicant that the applicant consents to personal jurisdiction over the applicant by ,federal courts and in the courts of the ,state or ,indian tribe of the qualified body to which the applicant has applied with respect to a civil action relating to the operation of an ,internet gambling facility4 7#c7 ,reports 7,a7 ,in general ,each qualified body shall report all applicants for licensure and the dispositions of their applications to the ,secretary promptly upon disposition of each application or in such intervals as the ,secretary may prescribe4 7,b7 ,contents ,each report under subparagraph 7,a7 shall include such information or documentation as the ,secretary may require4 7d7 ,standards for license issuance2 suitability qualifications and disqualification standards 7#a7 ,suitability for licensing 7,a7 ,in general ,no applicant shall be eligible to obtain a license under this title unless a qualified body1 with whom the applicant has filed an application for a license1 has determined1 upon completion of a background check and investigation1 that the applicant1 any person considered to be in control of the applicant1 all significant vendors of the applicant1 and any other person determined by the qualified body as having significant influence on the applicant are suitable for licensing4 7,b7 ,application as request for determination of suitability ,an application for a license submitted to a qualified body under this title constitutes a request for a determination of the general character1 integrity1 and ability to participate or engage in or be associated with an ,internet gambling facility1 as appropriate1 of the applicant1 any person considered to be in control of the applicant1 all significant vendors of the applicant1 and all other persons determined by the qualified body as having significant influence on the applicant4 7,c7 ,associates 7i7 ,in general ,if an entity undergoing a determination of suitability under this paragraph is a corporation1 partnership1 or other business entity1 a background check and investigation shall be carried out by the applicable qualified body with respect to the president or other chief executive of the corporation1 partnership1 or business entity and such other partners or senior executives and directors or shareholders of the corporation1 partnership1 or entity as the qualified body considers appropriate4 7ii7 ,minimum determination ,in carrying out clause 7i71 the qualified body shall1 at a minimum1 carry out a suitability review of the #e individuals receiving the most compensation 7whether in the form of salary1 bonus1 dividends1 distributions1 disbursement of profits1 or otherwise7 from the entity1 any person that controls the entity1 and such other individuals or entities as the qualified body considers appropriate4 7,d7 ,parity of investigation and analysis 7i7 ,diligence with respect to significant vendors and affiliates ,each investigation and analysis of the suitability of a person with respect to an application for a license under this title1 other than the applicant for such license1 shall be carried out with the same degree of diligence as the investigation and analysis of the suitability of the applicant4 7ii7 ,stringency with respect to casino gaming facilities ,each qualified body that also issues licenses to casino gaming facilities shall ensure that each investigation and analysis of the suitability of a person carried out by the qualified body under this subsection is no less stringent than a suitability review carried out by the qualified body for the licensing of casino gaming facilities4 7#b7 ,suitability standards ,for purposes of this title1 an applicant and any other person subject to a determination of suitability under paragraph 7#a7 may only be considered suitable under this title if the applicant or person demonstrates to the applicable qualified body by clear and convincing evidence that the applicant or person-- 7,a7 is a person of good character1 honesty1 and integrity2 7,b7 is a person whose prior activities1 criminal record1 if any1 reputation1 habits1 and associations do not-- 7i7 pose a threat to the public interest or to the effective regulation and control of ,internet gambling facilities2 or 7ii7 create or enhance the dangers of unsuitable1 unfair1 or illegal practices1 methods1 and activities in the conduct of ,internet gambling facilities or the carrying on of the business and financial arrangements incidental to such facilities2 7,c7 is capable of and likely to conduct the activities for which the applicant is licensed or receives a certificate of suitability in accordance with the provisions of this title1 any regulations prescribed under this title1 and all other applicable laws2 7,d7 in the case of an applicant1 has or guarantees acquisition of adequate business competence and experience in the operation of casino gaming facilities1 ,internet gambling facilities1 or ,internet gambling facilities2 7,e7 in the case of an applicant1 has or will obtain sufficient financing for the nature of the proposed operation and from a suitable source2 and 7,f7 has disclosed to the qualified body all known affiliations or relationships1 whether direct or indirect1 with persons and assets of persons described by section #aad7;b77#b74 7#c7 ,unsuitable ,an applicant or any other person may not be determined to be suitable under this subsection if the applicant or such person-- 7,a7 has failed to provide information and documentation material to a determination of suitability for licensing under paragraph 7#a72 7,b7 has supplied information which is untrue or misleading as to a material fact pertaining to any such determination2 7,c7 has been convicted of an offense that is punishable by imprisonment of more than #a year2 7,d7 is delinquent in the payment of any applicable ,federal or ,state tax1 tax penalty1 addition to tax1 or interest owed to a jurisdiction in which the applicant or person operates or does business1 unless such payment has been extended or is the subject of a pending judicial or administrative dispute2 7,e7 has not certified in writing1 pursuant to subsection 7c77#b77;,g71 that the person submits to personal jurisdiction in the ,united ,states2 7,f7 knowingly accepts or knowingly has accepted bets or wagers on sporting events from persons located in the ,united ,states in violation of a provision of ,federal or ,state law2 7,g7 has affiliated with any person that knowingly accepts or knowingly has accepted bets or wagers on sporting events from persons located in the ,united ,states in violation of a provision of ,federal or ,state law2 or 7,h7 fails to comply with such other standard as the applicable qualified body considers appropriate4 7#d7 ,ongoing requirement ,a licensee 7and any other person who is required to be determined to be suitable for licensing in connection with such licensee7 shall meet the standards necessary to be suitable for licensing or to receive a certificate of suitability1 as the case may be1 throughout the term of the license4 7#e7 ,certificate of suitability for significant vendors 7,a7 ,in general ,if a qualifying body determines under paragraph 7#a7 that a significant vendor of an applicant is suitable under such paragraph1 the qualifying body shall issue a certificate to such vendor that certifies the suitability of such vendor4 7,b7 ,revocation of certificate ,a qualified body that issues a certificate to a significant vendor under subparagraph 7,a7 shall revoke the certificate if at any time the significant vendor no longer meets the standards necessary for a determination of suitability4 7,c7 ,reliance on certificate ,a qualified body may1 but need not1 rely upon a certificate issued under subparagraph 7,a7 to a significant vendor with respect to one application in the review of the same significant vendor in other license applications4 7,d7 ,certificates issued by other qualified bodies ,a qualified body may1 but need not1 accept a certificate issued to a significant vendor by another qualified body as evidence of the suitability of the significant vendor4 7#f7 ,other vendors 7,a7 ,notice ,a licensee shall promptly notify the qualified body that issued the license to the licensee of all persons that are not significant vendors that-- 7i7 direct1 provide1 or solicit customers to or for the licensee's ,internet gambling facility1 or materially assist in any of those tasks1 in return for a commission or other fee2 7ii7 hold themselves out to the public as offering bets or wagers on the licensee's behalf2 7iii7 offer bets or wagers under their own names or brands but using and relying on the licensee's ,internet gambling facilities2 7iv7 license trademarks1 trade names1 service marks1 or other similar intellectual property to the licensee2 or 7v7 own a substantial interest in or control a person described in clause 7i71 7ii71 7iii71 or 7iv74 7,b7 ,suitability of other vendors and persons ,a qualified body that reviews an application of an applicant for a license or issues a license to a licensee may1 at the sole discretion of the qualified body and on a case-by-case basis1 require as a condition of such license that a person meet suitability requirements under paragraph 7#a7 if the person-- 7i7 is described in subparagraph 7,a7 with respect to the applicant or licensee2 7ii7 provides services to an applicant or licensee and the qualified body determines that1 with respect to such services1 there is a substantial risk of circumvention of the suitability requirements applicable to significant vendors2 or 7iii7 is associated with the applicant or licensee or one of the significant vendors of the applicant or licensee and the qualified body determines such person may pose a threat to the integrity of ,internet gambling facilities operated by the applicant or licensee4 7,c7 ,information ,a qualified body may require such information from an applicant1 licensee1 significant vendor or other person identified in this paragraph as the qualified body considers necessary to carry out this paragraph4 7#g7 ,enforcement actions 7,a7 ,in general ,if the ,secretary or the qualified body that issued a license to a licensee finds that the licensee1 or any other person that is subject to a required determination of suitability in connection with such licensee1 ceases to meet the suitability requirements of this subsection at any time during the tenure of the license1 the ,secretary or the qualified body may take action to protect the public interest1 including1 if the ,secretary or qualified body considers necessary1 the suspension or termination of the license4 7,b7 ,imposition of conditions including removal of parties ,notwithstanding a determination under subparagraph 7,a71 the ,secretary or the qualified body that issued a license to a licensee may allow the licensee to continue engaging in licensed activities by imposing conditions on the person to which subparagraph 7,a7 is applicable under penalty of revocation or suspension of a license or certificate of suitability1 including-- 7i7 the identification of any person determined to be unsuitable2 and 7ii7 the establishment of appropriate safeguards to ensure such person is excluded from any management or involvement in operation of the licensed activities4 7,c7 ,special rule for enforcement of prohibition on unlawful sports wagering ,if the ,secretary or a qualified body finds that a licensee is no longer suitable under this subsection because such licensee has accepted bets or wagers as described in paragraph 7#c77;,f7 or has affiliated as described in paragraph 7#c77;,g71 the ,secretary or the qualified body1 as the case may be1 shall revoke the license of such licensee in addition to the imposition of such other penalties as the ,secretary or qualified body considers appropriate under this title4 7#h7 ,administrative provisions 7,a7 ,background check and investigation ,each qualified body shall establish standards and procedures for conducting background checks and investigations for purposes of this subsection4 7,b7 ,non-admissibility of statements for purposes of defamation actions ,any written or oral statement made in the course of an official proceeding of the ,secretary or a qualified body1 by any member thereof1 or any witness testifying under oath which is relevant to the purpose of the proceeding and relates to the review of an application for a license under this title shall not be admissible in any ,federal or ,state court in a civil action to prove defamation4 7,c7 ,preservation of privilege recognized under other provisions of law ,any privilege recognized under any other provision of ,federal1 ,state1 or tribal law1 including attorney-client1 physician-patient1 and accountant-client privileges1 shall not be waived or lost because a document or communication otherwise protected by the privilege is disclosed to the ,secretary or a qualified body under this title4 7,d7 ,confidentiality 7i7 ,except as set forth in provision 7ii7 of this subsection1 any communication or document1 except information that is already public1 shall be treated as confidential and may not be disclosed1 in whole or part1 by the ,secretary or a qualified body without a lawful court order or as otherwise required by law1 if the communication or document is-- 7,i7 required by the ,secretary or qualified body to be disclosed by the applicant1 licensee1 or significant vendor1 including applications1 financial or earnings information1 and criminal records1 whether of the applicant or licensee or of any affiliate1 employee1 officer1 director or significant vendor thereof1 or of any other third-party2 7,,ii7 prepared or obtained by an agent or employee of the ,secretary or qualified body that contains information described in clause 7i72 or 7,,iii7 submitted by the applicant1 licensee1 or significant vendor in connection with a pending application or existing license4 7ii7 ,nothing in this subsection shall limit the disclosure of information provided by an applicant1 licensee1 or significant vendor to the ,secretary or qualified body to any official of the ,united ,states1 or to any ,state regulatory or enforcement agency1 requesting such information for any authorized purpose under ,federal or ,state law1 including but not limited to the administration or enforcement of ,federal or ,state laws concerning internet gambling1 ,u4,s4 tax laws1 consumer protection1 data protection1 financial regulation1 or for the purposes of any civil or criminal investigation4 7e7 ,assessments for administrative expenses 7#a7 ,user fees 7,a7 ,in general ,the cost of administering this title with respect to each applicant1 licensee1 and significant vendor1 including the cost of any review or examination of a licensee or its significant vendors to ensure compliance with the terms of the license and this title1 shall be assessed by the qualified body receiving an application or issuing a license against the applicant1 licensee1 or significant vendor1 as the case may be1 by written notice in an amount that the qualified body determines is necessary to meet the qualified body's expenses in carrying out such administration1 review1 or examination4 7,b7 ,expenses for review or examination ,expenses that are attributable to review or examination of a particular applicant1 licensee1 or significant vendor shall be assessed under subparagraph 7,a7 against that applicant1 licensee1 or significant vendor4 7,c7 ,expenses for general administration ,expenses for general administration shall be assessed against all licensees equally4 7,d7 ,user fees established by secretary 7i7 ,in general ,the ,secretary may establish user fees to be paid by applicants1 licensees1 and significant vendors in amounts the ,secretary determines necessary to meet the ,secretary's cost of administering this title4 7ii7 ,collection by qualified bodies ,qualified bodies shall collect user fees established under clause 7i7 from applicants1 licensees1 and significant vendors and turn them over promptly to the ,secretary4 7iii7 ,disposition of user fees ,amounts assessed by the ,secretary as user fees under clause 7i7 shall-- 7,i7 be available to the ,secretary to cover expenses incurred by the ,secretary in carrying out the provisions of this title2 and 7,,ii7 not be construed to be ,government funds or appropriated monies1 or subject to apportionment for the purposes of any other provision of law4 7,e7 ,disposition of user fees ,except as provided in subparagraph 7,d71 amounts assessed by a qualified body as user fees under this paragraph shall-- 7i7 be available to the qualified body to cover expenses incurred by the qualified body in carrying out the provisions of this title2 and 7ii7 except in the case of the ,office of ,internet ,gambling ,oversight established under section #ajd1 not be construed to be ,government funds or appropriated monies1 or subject to apportionment for the purposes of any other provision of law4 7,f7 ,collection ,if a licensee or significant vendor fails to pay a user fee to a qualified body under this paragraph after the assessment of the fee has become final-- 7i7 the qualified body may recover the amount assessed by action in a court of the ,state or ,indian tribe of the qualified body or in the ,united ,states district court in the ,state in which such qualified body is located1 along with any costs of collection and attorney fees2 and 7ii7 such failure may be grounds for denial of an application for a license under this title or revocation of a license or certificate of suitability under this title4 7,g7 ,payment of significant vendor user fees by applicants and licensees ,a user fee assessed against a significant vendor may be paid by an applicant or licensee on behalf of the significant vendor4 7#b7 ,direct and exclusive obligation of licensee ,with respect to a licensee1 a 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 or wager with the licensee4 7f7 ,approval of license 7#a7 ,in general ,except as provided in paragraph 7#b71 a qualified body may issue to an applicant a license under this title for the operation of an ,internet gambling facility if the applicant meets the criteria established by the qualified body under this title4 7#b7 ,authority of secretary to revoke licenses 7,a7 ,in general ,notwithstanding any license or certificate of suitability issued by a qualified body1 the ,secretary may suspend or revoke such license or certificate if the ,secretary has reason to believe that the recipient does not meet the suitability requirements established under subsection 7d7 or1 as applicable1 any other requirement imposed on a licensee under this title4 7,b7 ,no authority to overturn denials and terminations ,the ,secretary may not overturn a decision by a qualified body 7other than the ,office of ,internet ,gambling ,oversight7 to deny or to terminate a license or to deny or revoke a certificate of suitability4 7#c7 ,conflicts between qualified bodies ,if a qualified body denies a license1 terminates a license1 denies a certificate of suitability1 or revokes a certificate of suitability to a person and within #a year of such denial1 termination1 or revocation another qualified body grants such person a license or certificate of suitability1 the ,secretary shall-- 7,a7 commence a review of such license or certificate of suitability2 and 7,b7 not later than #ij days after such commencement1 determine whether to act under paragraph 7#b74 7#d7 ,control defined ,in this subsection1 the term control1 with respect to a person1 means the possession1 directly or indirectly1 of the power to direct or influence the direction of the management or policies of the person1 whether through the ownership of voting securities1 through a management1 executive officer1 or board position1 by shareholders or similar agreement1 or otherwise4 7g7 ,safeguards required of licensee 7#a7 ,in general ,no qualified body shall issue a license under this title unless the qualified body-- 7,a7 prescribes regulations that prohibit a person from receiving or retaining a license under this title unless the person maintains or requires mechanisms so that the requirements described in paragraph 7#b7 are met with respect to the operation of an ,internet gambling facility2 and 7,b7 reviews the applicant's ability to comply with the requirements of this subsection1 including by testing the applicant's systems and software1 or by mandating such testing by an independent1 qualified entity4 7#b7 ,safeguards ,the requirements described in this paragraph are as follows3 7,a7 ,prohibition on underage gaming ,appropriate safeguards to ensure1 to a reasonable degree of certainty1 that the individual placing a bet or wager is not younger than #ba years of age1 at the time of registration and all log ons4 7,b7 ,prohibited locations ,appropriate safeguards to ensure1 to a reasonable degree of certainty1 that the individual placing a bet or wager is physically located in a jurisdiction that has opted in under section #ajh at the time the bet or wager is placed1 at the time of registration and all log ons4 7,c7 ,collection or reporting of customer taxes ,appropriate mechanisms to ensure1 to a reasonable degree of certainty1 that all taxes relating to ,internet gambling from persons engaged in bets or wagers relating to such ,internet gambling are collected or reported1 as required by law1 at the time of any payment of proceeds of such bets or wagers4 7,d7 ,collection or reporting of taxes of licensee ,appropriate mechanisms to ensure that all taxes relating to the operation of an ,internet gambling facility from any licensee are collected as required by law and that adequate records to enable later audit or verification are maintained4 7,e7 ,reporting of fees of licensee ,appropriate mechanisms to ensure that adequate records are maintained to enable later audit or verification that the licensee has paid all fees required under this title4 7,f7 ,safeguards against financial crime ,appropriate safeguards to prevent1 to a reasonable degree of certainty1 fraud1 money laundering1 tax evasion1 and terrorist financing4 7,g7 ,safeguards against compulsive play ,appropriate safeguards to ensure1 to a reasonable degree of certainty1 compliance with the requirements of section #ajg7;b74 7,h7 ,privacy safeguards ,appropriate safeguards to protect1 to a reasonable degree of certainty1 the privacy and ,internet security of any person engaged in bets or wagers with the licensee's ,internet gambling facility4 7,i7 ,payment of assessments ,appropriate mechanisms to ensure that any user fee required under subsection 7e7 is paid to the qualified body4 7,j7 ,honest games ,appropriate safeguards to ensure1 to a reasonable degree of certainty1 that ,internet gambling games are fair and honest1 and to prevent1 to a reasonable degree of certainty1 cheating1 including collusion1 and use of cheating devices1 including use of software programs 7sometimes referred to as bots7 that make bets or wagers according to algorithms4 7,k7 ,segregation of player funds ,appropriate safeguards to ensure player funds are held in accounts segregated from the funds of licensees and are otherwise protected from corporate insolvency1 financial risk1 or criminal or civil actions against the licensee4 7,l7 ,other requirements ,such other mechanisms and safeguards as the qualified body may establish by regulation4 7h7 ,location of remote gaming equipment 7#a7 ,within the ,united ,states ,a licensee shall maintain its remote gaming equipment within the territory of the ,united ,states throughout the term of its license4 7#b7 ,within territory of qualified body ,a qualified body may require a licensee of the qualified body to locate the remote gaming equipment of the licensee within the territory of the ,state or ,indian tribe of the qualified body if the qualified body determines that such requirement will advance the regulatory interests of this title4 7i7 ,license is a privilege not a right 7#a7 ,in general ,a decision by a qualified body not to grant a person a license or certificate of suitability1 or to terminate a license or revoke a certificate of suitability1 is not reviewable under the law of any jurisdiction other than the jurisdiction of the qualified body4 7#b7 ,appeal ,with respect to a decision described in paragraph 7#a7 of a qualified body1 the ,state or ,indian tribe of the jurisdiction of the qualified body may1 but need not1 provide an opportunity to appeal such decision4 7j7 ,term1 renewal1 and transfer of license 7#a7 ,term ,any license issued under this title shall be issued for a #e-year term beginning on the date of issuance4 7#b7 ,renewal ,a license may be renewed in accordance with requirements prescribed by the qualified body that issued the license under this title4 7#c7 ,transfer ,a transfer of a license1 change of control of a licensee1 or change in significant vendor shall require prior approval by the qualified body that issued the license4 ,the qualified body shall at a minimum ensure the suitability requirements of subsection 7d7 continue to be satisfied before approving any such transfer or change4 7k7 ,administrative provisions 7#a7 ,determination of internet gambling 7,a7 ,initial determination by qualified body ,a determination whether a game1 hand1 tournament1 or other contest of a licensee is authorized ,internet gambling under this ,act1 and not prohibited sports-related ,internet gambling1 shall be made in the first instance by the qualified body that issued the license to such licensee under this title4 7,b7 ,challenges 7i7 ,in general ,a licensee or qualified body may challenge whether a game1 hand1 tournament1 or other contest of another licensee is sports-related ,internet gambling4 7ii7 ,challenge made with secretary ,a challenge made under clause 7i7 shall be made with the ,secretary4 7iii7 ,determination made by secretary within #cj days ,if a challenge is made under clause 7i71 the ,secretary shall make a determination whether the game1 hand1 tournament1 or other contest is sports-related ,internet gambling not later than #cj days after the date on which the challenge is made4 7iv7 ,operation until determination ,a licensee that offers a game1 hand1 tournament1 or other contest that is challenged under clause 7i7 may continue to offer such game1 hand1 tournament1 or other contest until the ,secretary makes a determination under clause 7iii74 7,c7 ,appeals 7i7 ,in general ,not later than #cj days after the date on which the ,secretary makes a determination under subparagraph 7,b77iii71 a licensee or a qualified body may appeal such determination under chapter #g of title #e1 ,united ,states ,code4 7ii7 ,operation pending appeal ,during the period in which a game1 hand1 tournament1 or other contest is being challenged through an appeal under clause 7i71 the ,united ,states ,district ,court for the ,district of ,columbia may allow a licensee to continue offering the game1 hand1 tournament1 or other contest in full compliance with the terms of its existing license and any other conditions the court considers necessary1 if the court determines that-- 7,i7 the licensee has a reasonable likelihood of success on the merits2 and 7,,ii7 allowing the licensee to continue offering the challenged game1 hand1 tournament1 or other contest while the appeal is pending will not threaten the public interest4 7#b7 ,challenges under ,state law ,except as provided in paragraph 7#a7 and unless otherwise specifically provided in this title1 actions taken by a qualified body other than the ,office of ,internet ,gambling ,oversight may be challenged by applicants and licensees only as permitted under the law of the ,state or ,indian tribe in which the qualified body is located4 7#c7 ,summons 7,a7 ,in general ,the ,secretary may issue a summons with respect to an applicant or licensee necessary to carry out the provisions of this title4 7,b7 ,production at designated site ,a summons issued by the ,secretary pursuant to this paragraph may require that books1 papers1 records1 or other data stored or maintained at any place be produced at any-- 7i7 business location of a licensee or applicant for a license2 7ii7 designated location in the ,state or ,indian lands of the applicable qualified body2 or 7iii7 designated location in the ,district of ,columbia4 7,c7 ,no liability for expenses ,the ,secretary shall not be liable for any expense incurred in connection with the production of books1 papers1 records1 or other data under this paragraph4 7,d7 ,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 determined by the ,secretary4 7,e7 ,authorization to invoke aid of courts ,the ,secretary may invoke the aid of any court of the ,united ,states to compel compliance with the summons within the jurisdiction of which-- 7i7 the investigation which gave rise to the summons or the examination is being or has been carried on2 7ii7 the person summoned is an inhabitant2 or 7iii7 the person summoned carries on business or may be found4 7,f7 ,power of courts to compel appearance ,the court may issue an order requiring the person summoned to appear before the ,secretary-- 7i7 to produce books1 papers1 records1 and other data2 7ii7 to give testimony as may be necessary to explain how such material was compiled and maintained2 7iii7 to allow the ,secretary to examine the business of a licensee2 and 7iv7 to pay the costs of the proceeding4 7,g7 ,contumacy or refusal ,any failure to obey the order of the court under this paragraph may be punished by the court as a contempt thereof4 ,all process in any case under this subsection may be served in any judicial district in which such person may be found4 7l7 ,disciplinary action 7#a7 ,in general ,a licensee may be subject to disciplinary action1 including the imposition of civil penalties or suspension or revocation of its license1 by a qualified body that issued a license to the licensee or by the ,secretary if the licensee fails to comply with any provision of this title1 any regulation prescribed thereunder1 or any other applicable provision of ,state or tribal law4 7#b7 ,initiating agency ,only the ,secretary or the qualified body which granted the license to a licensee may initiate disciplinary action under this title against the licensee4 7#c7 ,savings provision ,nothing in this subsection shall be construed to limit or alter the application of any law other than this title to a licensee or affiliated person1 or to effect the enforcement of such law by the appropriate law enforcement administrative1 or regulatory entity4 7#d7 ,disciplinary procedures 7,a7 ,in general ,a qualified body shall commence disciplinary action under this subsection against a licensee upon service of a formal written complaint upon the licensee1 with a copy forwarded to the ,secretary1 that sets forth the grounds for the disciplinary action and the proposed penalty that is being sought1 which may include any or all of the imposition of a fine as provided pursuant to subsection 7m77#a7 or limitation1 condition1 suspension or revocation of the license4 7,b7 ,in accordance with law of jurisdiction of qualified body ,the process for disciplinary action under this subsection shall proceed according to the law of the jurisdiction of the applicable qualified body4 7#e7 ,finality of action and appeals 7,a7 ,finality ,any disciplinary action under this subsection shall be treated as a final action4 7,b7 ,action by qualified bodies ,a licensee aggrieved by disciplinary action under this subsection by a qualified body may file an appeal in the jurisdiction where the qualified body taking such action is located only to the extent permitted by the law of such jurisdiction1 or in ,federal court as authorized by ,federal law4 7#f7 ,pending appeal ,during the period in which a suspension or revocation of an existing license is being challenged through a pending judicial proceeding1 the court handling the challenge may allow the licensee to continue offering bets and wagers in full compliance with the terms of its existing license and any other conditions the court considers necessary1 if the court determines that-- 7,a7 the appellant has a reasonable likelihood of success on the merits2 and 7,b7 allowing the appellant to continue offering bets and wagers while the appeal is pending will not threaten the public interest4 7#g7 ,return of customer funds ,if a licensee's license is revoked and no appeal pursuant to paragraph 7#e7 is pending1 the licensee shall-- 7,a7 to the degree feasible1 return all customer funds to ,united ,states customers in an orderly manner not later than #cj days after the date of the revocation of the license2 and 7,b7 place in escrow those sums return of which to ,united ,states customers is not feasible due to change in customer address1 bank details1 or similar difficulty in an account with a financial institution in the ,united ,states for safekeeping and orderly disposition by the ,secretary4 7#h7 ,referral to attorney general ,if1 in the course of carrying out the provisions of this title1 the ,secretary or a qualified body finds a substantial basis to believe that a person has violated section #ajc7;a71 the ,secretary or qualified body shall refer such matter to the ,attorney ,general4 7m7 ,civil monetary penalties 7#a7 ,in general 7,a7 ,penalties assessed by qualified bodies ,a qualified body may assess upon any licensee or other person subject to the requirements of this title for each violation of this title or any regulation prescribed or order issued under this title1 a civil penalty of not more than the greater of-- 7i7 the amount involved in the violation1 if any2 7ii7 #bej1jjj for an individual and #gej1jjj for a corporation2 or 7iii7 such other amount as provided under the applicable ,state or tribal law of the qualified body4 7,b7 ,penalties assessed by secretary ,the ,secretary may assess upon any licensee or other person subject to the requirements of this title for each violation of this title or any regulation prescribed or order issued under this title1 a civil penalty of not more than the greater of-- 7i7 the amount involved in the violation1 if any2 or 7ii7 #bej1jjj for an individual and #gej1jjj for a corporation4 7,c7 ,not cumulative 7i7 ,in general ,the penalties authorized under subparagraphs 7,a7 and 7,b7 shall not be cumulative and only one such penalty may be assessed per violation4 7ii7 ,construction ,clause 7i7 shall not be construed to limit the authority of a qualifying body or the ,secretary1 as the case may be1 to pursue a civil penalty for each violation of a related series of violations4 7,d7 ,failure to obtain a license ,notwithstanding any other provision of law1 the ,secretary shall assess upon a person that is required to maintain a license under this title1 but fails to maintain a license under this title1 a civil penalty of not more than the greater of-- 7i7 the amount of bets or wagers taken by the person from players in the ,united ,states during the period that a license was needed but not held by the person2 or 7ii7 #a1jjj1jjj per day that the person accepts bets or wagers from players in the ,united ,states during the period that a license was needed but not held by the person4 7,e7 ,construction ,nothing in this paragraph shall be construed to affect the ability of a law enforcement official to seek criminal penalties against a person4 7#b7 ,assessment 7,a7 ,enforcement by qualified bodies ,qualified bodies and such other entities as are authorized by applicable ,state or tribal law shall enforce the provisions of this title under the law of the applicable ,state or ,indian tribe1 and penalties shall be determined1 reviewable1 collectable1 and disposed of as provided under such law4 7,b7 ,enforcement by secretary 7i7 ,written notice ,any penalty imposed under paragraph 7#a77;,b7 shall be assessed and collected by the ,secretary by written notice4 7ii7 ,finality of assessment ,if1 with respect to any assessment under paragraph 7#a77;,b71 a hearing is not requested pursuant to clause 7v7 within the period of time allowed under such clause1 the assessment shall constitute a final agency order4 7iii7 ,authority to modify or remit penalty ,the ,secretary may compromise1 modify1 or remit any penalty which the ,secretary may assess or has already assessed under paragraph 7#a77;,b74 7iv7 ,mitigating factors ,in determining the amount of any penalty imposed under paragraph 7#a77;,b71 the ,secretary shall take into account the appropriateness of the penalty with respect to the following3 7,i7 ,the size of the financial resources and the good faith of the person against whom the penalty is assessed4 7,,ii7 ,the gravity of the violation4 7,,iii7 ,the history of previous violations4 7,,iv7 ,such other matters as justice may require4 7v7 ,hearing ,the person against whom any penalty is assessed under paragraph 7#a77;,b7 shall be afforded a hearing by the ,secretary if such person submits to the ,secretary a request for such hearing not later than #bj days after the date of the issuance of the notice of assessment4 7vi7 ,collection 7,i7 ,referral ,if any person fails to pay an assessment after any penalty assessed under this subparagraph has become final1 the ,secretary shall recover the amount assessed by action in the appropriate ,united ,states district court4 7,,ii7 ,scope of review ,in any civil action under subclause 7,i71 the validity and appropriateness of the penalty shall be subject to review for abuse of agency discretion4 7vii7 ,disbursement ,all penalties collected under authority of paragraph 7#a77;,b7 shall be deposited into the ,treasury of the ,united ,states4 7#c7 ,condition for licensure ,payment by a licensee of any civil penalty assessed under this subsection that has become final shall be a requirement for the retention of its license4 7n7 ,list of licensed internet gambling facilities ,the ,secretary shall establish and maintain a list of all ,internet gambling facilities licensed under this section4 ,the ,secretary shall update such list regularly and make such list publicly available on an ,internet website4 #ajg4 ,compulsive gaming1 responsible gaming1 and self-exclusion program requirements 7a7 ,regulations required 7#a7 ,in general ,each qualified body shall1 before issuing any licenses under this title1 prescribe regulations for the development of a ,compulsive ,gaming1 ,responsible ,gaming1 and ,self-,exclusion ,program that each licensee of that qualified body shall implement as a condition of licensure4 7#b7 ,outreach ,the regulations required by paragraph 7#a7 shall also provide for the establishment of a program to alert the public to the existence1 consequences1 and availability of the self-exclusion list established under subsection 7c74 7b7 ,minimum requirements ,under each program under subsection 7a71 a licensee shall1 under the scope of the license issued the licensee under this title1 at a minimum-- 7#a7 provide informational materials written in plain language about responsible gaming1 including information about the self-exclusion list established under subsection 7c7 and how a player may request placement on the list1 each time a player signs in to make a bet or wager1 which materials shall be provided via a prominently displayed hyperlink or comparable mechanism2 7#b7 provide informational materials about responsible gaming to any player that requests such materials2 7#c7 make continuously available individualized responsible gaming options that any customer may choose1 including allowing customers to self-limit deposits amounts1 frequency of play1 and losses1 as well as their access to the issuance of credit1 check cashing1 or direct mail marketing by the licensee1 in each case as and to the extent that the qualified body may consider appropriate2 7#d7 ensure to a reasonable degree of certainty that persons on the list of self-excluded persons established pursuant to subsection 7c7 are prevented from initiating any bets or wagers within the scope of this title2 and 7#e7 ensure that the information required under this subsection is clearly and prominently made available by the licensee in each language in which services of the ,internet gambling facility of the licensee are offered4 7c7 ,list of persons self-,excluded 7#a7 ,establishment 7,a7 ,lists maintained by qualified bodies 7i7 ,in general ,each qualified body shall establish and maintain a list of persons self-excluded from playing ,internet gambling through ,internet gambling facilities licensed by the qualified body4 7ii7 ,submittal to secretary ,at the end of each day1 each qualified body shall submit to the ,secretary a current copy of the list established and maintained by the qualified body under clause 7i74 7,b7 ,master list maintained by secretary 7i7 ,in general ,the ,secretary shall establish and maintain a master list of all persons self-excluded from playing ,internet gambling through ,internet gambling facilities licensed under this title4 ,such list shall consist of all persons submitted under subparagraph 7,a77ii74 7ii7 ,availability ,the ,secretary shall make the master list established and maintained under clause 7i7 available to all qualified bodies and licensees on an ongoing basis and licensees shall ensure to a reasonable degree of certainty that persons on the master list of self-excluded persons are prevented from initiating any bets or wagers within the scope of this title4 7iii7 ,sharing of information 7,i7 ,notwithstanding any other provision of law1 qualified bodies and licensees may share information relating to persons on the master list among one another and with other regulators1 whether ,federal1 ,state1 tribal1 local1 or foreign1 for the purpose of facilitating the prevention of self-excluded persons from initiating any bets or wagers within the scope of this title4 7,,ii7 ,the ,secretary shall establish appropriate safeguards for the purpose of protecting the confidentiality of any personal information shared pursuant to this clause1 to prevent the disclosure of such information to unauthorized persons or for any purpose other than facilitating the prevention of self-excluded persons from initiating any bets or wagers within the scope of this title4 7,c7 ,placement request ,any person may request placement on the list of self- excluded persons by-- 7i7 acknowledging in a manner to be established by each qualified body with respect to its licensees that the person wishes to be denied gaming privileges within the scope of this title2 and 7ii7 agreeing that1 during any period of voluntary exclusion1 the person may not participate in ,internet gambling or collect any winnings or recover any losses resulting from any gaming activity at any ,internet gambling facility of a licensee4 7#b7 ,limitation on liability 7,a7 ,in general ,except as provided in subparagraph 7,b71 the ,united ,states1 the ,secretary1 a qualified body1 the ,state or ,indian tribe in which that qualified body is located1 an enforcement agent1 licensee1 or any employee or agent thereof1 shall not be liable to any self-excluded person or to any other party in any judicial or administrative proceeding for any harm1 monetary or otherwise1 which may arise as a result of-- 7i7 any failure to withhold gaming privileges from1 or to restore gaming privileges to1 a self-excluded person2 7ii7 otherwise permitting a self-excluded person to engage in gaming activity while on the list of self-excluded persons2 or 7iii7 disclosure to licensees1 significant vendors1 or employees or agents of licensees or significant vendors of the fact that an individual has been placed on the list of self-excluded persons and of other information that is reasonably necessary to identify that individual in order to carry out this subsection1 including the address1 date of birth1 and taxpayer identification number of the individual4 7,b7 ,licensees ,a licensee or employee or agent thereof may be liable to a self- excluded person in a judicial or administrative proceeding for a harm described in subparagraph 7,a7 to the extent provided under the law of the ,state or ,indian tribe of the qualified body that issued the license4 7,c7 ,rule of construction ,nothing in this paragraph shall be construed to prevent the ,secretary or a qualified body from assessing a regulatory sanction against a licensee or person for failing to comply with a provision of this section or a regulation prescribed thereunder or for misuse of any list of self-excluded persons for purposes not authorized under this section4 7#c7 ,disclosure provisions 7,a7 ,in general ,notwithstanding any other provision of ,federal1 ,state1 or tribal law1 the list of self-excluded persons shall not be open to public inspection4 7,b7 ,affiliate disclosure ,if necessary to effectuate the self-exclusion purposes of this subsection1 any licensee may disclose the identities of persons on the self- excluded list to any significant vendor1 service provider1 or affiliated company to the extent that the significant vendor1 service provider1 or affiliated company maintains such information under confidentiality provisions comparable to those in this subsection4 7d7 ,gaming by prohibited persons 7#a7 ,prohibition on benefitting from prohibited gaming activity ,a person who is prohibited from gaming with a licensee by law1 or by order of the ,secretary1 a qualified body1 or any court of competent jurisdiction1 including any person on the self-exclusion list under subsection 7c71 shall not collect1 in any manner or proceeding1 any winnings or recover any losses arising as a result of prohibited gaming activity with a licensee4 7#b7 ,forfeiture ,in addition to any other penalty provided by law1 any money or thing of value that has been obtained by1 or is owed to1 any prohibited person by a licensee as a result of bets or wagers made by a prohibited person while the applicable prohibition is effective shall be subject to forfeiture by order of the ,secretary or a qualified body1 following notice to the prohibited person and opportunity to be heard4 7#c7 ,deposit of forfeited funds ,any funds forfeited pursuant to this subsection shall be deposited into the ,treasury of the ,united ,states1 or1 in the case of a forfeiture to a qualified body1 as provided by the applicable ,state or tribal law4 7e7 ,administrative provisions 7#a7 ,no duty to identify or exclude compulsive players not on list ,no provision of this section shall be construed as creating a legal duty in the ,secretary1 a qualified body1 a licensee1 or any employee or agent thereof to identify or to exclude compulsive players not on the list of self-excluded persons4 7#b7 ,no cause of action ,the ,secretary1 a qualified body1 a licensee1 and any employee or agent thereof1 shall not be liable to any person in any proceeding for losses or other damages of any kind arising out of that person's gaming activities based on a claim that the person was a compulsive1 problem1 or pathological player4 7#c7 ,no private right of action ,nothing in this section shall be construed to create a private right of action4 #ajh4 ,prohibition on use of licenses in certain ,states and ,indian lands 7a7 ,in general ,internet gambling provided by ,internet gambling facilities licensed under this title shall be lawful in the ,united ,states only with respect to the acceptance of bets or wagers from individuals located in ,states and ,indian lands that have opted-in under this section4 7b7 ,state participation 7#a7 ,opt-in election ,a ,state shall be considered to have opted-in under this section if its ,governor or any other person authorized to make such notification under the laws of such ,state has not notified the ,secretary within #abj days of enactment that-- 7,a7 ,internet gambling is prohibited in such ,state1 or 7,b7 the ,state declines to participate in ,internet gambling authorized under this ,act4 7#b7 ,opt-out election ,a ,state shall be considered not to have opted-in under this section if-- 7,a7 a majority of a quorum of each chamber of the legislature of the ,state has approved a bill1 resolution1 or similar measure that expresses that bets or wagers authorized under this title should be prohibited in such ,state2 and 7,b7 such bill1 resolution1 or similar measure is the most recent bill1 resolution1 or similar measure approved by a majority of a quorum of each chamber of the legislature of the ,state that expresses whether bets or wagers authorized under this title should be prohibited in such ,state4 7#c7 ,limitation on ,state participation ,notwithstanding any other provision of law1 for purposes of determining whether a ,state has opted-in under this section1 neither the ,secretary nor any provision of ,state law may require a ,state to undertake any additional or different procedures than those specified in paragraphs 7#a7 and 7#b74 7#d7 ,effective date of changes ,if a ,state changes its election to participate or not to participate under paragraph 7#a7 or 7#b71 such change shall apply1 for purposes of this title1 beginning on the later of-- 7,a7 #fj days after the date of the notification to the ,secretary by the ,governor any other person authorized under the laws of such ,state that the ,state has changed its election to participate or not2 or 7,b7 the effective date specified in any bill1 resolution1 or similar measure determining the participation of the ,state in ,internet gambling under the laws of such ,state4 7c7 ,indian tribe notice and participation 7#a7 ,opt-in election ,except as provided in paragraphs 7#c7 and 7#d71 an ,indian tribe shall be considered to have opted-in under this section if the principal chief or other chief executive officer or designated authority of such ,indian tribe has not notified the ,secretary within #abj days of enactment that-- 7,a7 ,internet gambling is prohibited by such ,indian tribe1 or 7,b7 the ,indian tribe declines to participate in ,internet gambling authorized under this ,act4 7#b7 ,opt-out election ,except as provided in paragraph 7#c7 and subsection 7d71 an ,indian tribe shall be considered not to have opted-in under this section if the principal chief or other chief executive officer or designated authority of such ,indian tribe submits written notice to the ,secretary that bets or wagers otherwise authorized under this title should be prohibited on the ,indian lands of such ,indian tribe4 7#c7 ,subsequent change of election 7,a7 ,notice of change ,except as provided in paragraph 7#d71 in a case in which the principal chief or other chief executive officer or designated authority of an ,indian tribe has submitted notice under paragraph 7#a7 or 7#b7 to opt-in or opt-out1 respectively1 such ,indian tribe may change its election at any time under this subsection if the principal chief or other chief executive officer or designated authority of such ,indian tribe submits to the ,secretary a written notice indicating such change4 7,b7 ,status ,an ,indian tribe that submits notice under subparagraph 7,a7 shall be considered-- 7i7 to have opted-in under this section if the most recent notice submitted under such subparagraph indicates that bets or wagers authorized under this title should not be prohibited on the ,indian lands of such ,indian tribe2 and 7ii7 not to have opted-in under this section if such notice indicates that bets or wagers authorized under this title should be prohibited on the ,indian lands of such ,indian tribe4 7,c7 ,effective date ,a change in election under this paragraph shall apply1 for purposes of this title1 beginning on the later of-- 7i7 #fj days after the date the most recent notice is submitted under subparagraph 7,a72 or 7ii7 the effective date specified in such notice4 7#d7 ,indian lands located in ,states that have opted-out ,the decision of a ,state to opt-in or opt-out shall have no effect on ,internet gambling in the lands of an ,indian tribe located within a ,state1 which shall be governed solely by determinations made by the ,indian tribe1 as communicated to the ,secretary by the principal chief or other chief executive officer or designated authority of an ,indian tribe4 7d7 ,prohibition on unlicensed bets or wagers 7#a7 ,in general ,except as expressly authorized in this title1 no ,state or ,indian tribe may authorize or operate a facility that offers ,internet gambling unless the ,internet gambling facility is authorized and licensed by that ,state or ,indian tribe in compliance with the law of that ,state or ,indian tribe1 as applicable1 and solely provides services to participants wholly within the boundaries of such ,state or the ,indian lands of such ,indian tribe44 7#b7 ,limitation ,the prohibition set out in paragraph 7#a7 shall not apply to any bet or wager authorized pursuant to a ,state or tribal law enacted or authorized by a license issued pursuant to this title4 7e7 ,notification and enforcement of ,state and ,indian tribe prohibitions 7#a7 ,in general ,the ,secretary shall notify qualified bodies1 all licensees1 and applicants of all ,states and ,indian tribes that are considered to have opted-in under this section1 promptly upon receipt of any notice received under subsection 7b7 or 7c7 and not fewer than #cj days before the effective date of such notice4 7#b7 ,violations ,it shall be a violation of this title for any licensee to accept a bet or wager initiated or otherwise made by a person who the licensee knows is located at the time of placing such bet or wager within any ,state or on the ,indian lands of any ,indian tribe which is not considered to have opted-in under this section4 7#c7 ,state attorney general enforcement ,in any case in which the attorney general of a ,state or any ,state or local law enforcement agency1 authorized by the attorney general of the ,state or by ,state statute to prosecute violations of consumer protection law1 has reason to believe that an interest of the residents of that ,state has been or is threatened or adversely affected by a violation by a licensee under paragraph 7#b71 the ,state1 or the ,state or local law enforcement agency1 may bring a civil action on behalf of the residents of that ,state or jurisdiction in a district court of the ,united ,states located therein-- 7,a7 to enjoin that practice2 or 7,b7 to enforce compliance with this section4 7#d7 ,indian tribe enforcement ,in any case in which the chief law enforcement officer of an ,indian tribe or tribal law enforcement agency1 authorized by the chief law enforcement officer of the ,indian tribe or by tribal law to prosecute violations of consumer protection law1 has reason to believe that an interest of the residents of the ,indian lands within the tribe's jurisdiction has been or is threatened or adversely affected by a violation by a licensee under paragraph 7#b71 the ,indian tribe1 or the tribal law enforcement agency1 may bring a civil action on behalf of the residents of those ,indian lands in a district court of the ,united ,states located nearest to those ,indian lands-- 7,a7 to enjoin that practice2 or 7,b7 otherwise to enforce compliance with this section4 7f7 ,no ,impact on ,indian ,gaming ,regulatory ,act 7#a7 ,in general ,no provision of this title or decision or action taken by an ,indian tribe or ,state pursuant thereto shall have any effect on non-,internet gaming activities within the scope of section #aa of the ,indian ,gaming ,regulatory ,act 7#be ,u4,s4,c4 #bgaj7 or any successor provisions or on any ,tribal-,state compacts or authorities pursuant thereto4 7#b7 ,tribal status or category not affected ,tribal operation of ,internet gambling facilities under this title shall not be considered class ,,ii or class ,,iii gaming under such section1 and an ,indian tribe's status1 category1 or class under such section shall not impact its status or ability to offer bets or wagers pursuant to this title4 7#c7 ,new negotiations not required 7,a7 ,indian tribes ,the fact that an ,indian tribe is operating under a license issued under this title or that a tribal regulatory body is acting as a qualified body under this title shall not require an ,indian tribe to negotiate a new agreement1 limitation1 or other provision of tribal-,state compact1 agreement1 or other understanding with respect to gaming or revenue-sharing1 with regard to any bet or wager occurring pursuant to a license issued under this title4 7,b7 ,states ,the fact that a ,state has opted in under this section or that a ,state regulatory body is acting as a qualified body under this title shall not require the ,state to negotiate a new agreement1 limitation1 or other provision of tribal-,state compact1 agreement1 or other understanding with respect to gaming or revenue-sharing1 with regard to any bet or wager occurring pursuant to a license issued under this title4 7g7 ,no ,impact on ,activities ,carried ,out ,solely ,within a ,state or ,within ,tribal ,lands ,no provision of this title shall have any effect on ,internet gaming activities that are authorized and licensed by that ,state or ,indian tribe 7as the case may be7 in compliance with the law of that ,state or ,indian tribe as of the date before the date of the enactment of this ,act1 as applicable1 and that solely provide services to participants wholly within the boundaries of that ,state or the ,indian lands of that ,indian tribe4 #aji4 ,prohibition on bets or wagers on sporting events 7a7 ,in general ,no provision of this title shall be construed to authorize any licensee to accept a bet or wager on any sporting event in violation of any applicable provision of ,federal or ,state law4 7b7 ,construction ,nothing in this title shall be construed to repeal or amend any provision of ,federal or ,state law prohibiting1 restricting1 or otherwise addressing bets or wagers on sporting events1 including provisions of ,federal and ,state law that permit participation in any fantasy or simulation sports games4 #aaj4 ,public internet gambling and internet gambling parlors prohibited 7a7 ,in general ,it shall be considered a violation of this title to operate a place of public accommodation1 club 7including a club or association limited to dues-paying members or similar restricted groups71 or similar establishment in which computer terminals or similar access devices are made available to be used principally for the purpose of accessing ,internet gambling facilities4 7b7 ,criminal penalties ,any person who violates subsection 7a7 shall be fined under title #ah1 ,united ,states ,code1 imprisoned for not more than #e years1 or both4 7c7 ,construction ,nothing in this title shall be construed to authorize or otherwise to permit the operation of places of public accommodation1 clubs 7including clubs or associations limited to dues-paying members or similar restricted groups7 and similar establishments that permit access to ,internet gambling facilities4 7d7 ,relation to ,state1 local1 and tribal law ,places of public accommodation1 clubs1 or similar establishments described in subsection 7c7 shall be subject to all otherwise applicable ,state1 local1 and tribal police1 criminal1 zoning1 and other regulatory powers which are not intended to be limited in any way by this title4 #aaa4 ,safe harbor ,it shall be an affirmative defense to any prosecution or enforcement action under any provision of ,federal1 ,state1 or tribal law that the activity forming the basis of such prosecution or enforcement action is authorized under and has been carried out lawfully in accordance with and under the terms of this title4 #aab4 ,cheating and other fraud 7a7 ,cheating and cheating devices prohibited 7#a7 ,cheating prohibited ,no person initiating1 receiving1 or otherwise making a bet or wager with a licensee1 or sending1 receiving1 or inviting information assisting with a bet or wager with a licensee shall knowingly violate1 attempt to violate1 or assist another in violating the rules of play established by the licensee for the purpose of obtaining prohibited or unfair advantage in any game authorized under this title4 7#b7 ,cheating devices ,except as provided in paragraph 7#c71 no person initiating1 receiving1 or otherwise making a bet or wager with a licensee1 or sending1 receiving1 or inviting information assisting with a bet or wager with a licensee shall knowingly use1 possess1 or assist another in the use of1 an electronic1 electrical1 or mechanical device or software or other program or tool which is designed1 constructed1 or programmed specifically for use in obtaining an advantage in any game authorized under this title1 where such advantage is prohibited or otherwise violates the rules of play established by the licensee4 7#c7 ,permissible uses ,it shall not be a violation of this subsection for a licensee1 its agents1 a qualified body1 or its agents to use or possess a device described in the preceding sentence if-- 7,a7 such use or possession is solely for purposes of testing an ,internet gambling facility2 7,b7 such device is not used in live play involving actual bets or wagers2 and 7,c7 such device is registered with the qualified body that issued the applicable license4 7#d7 ,disclosure to public not required ,notwithstanding any other provision of law1 a registration under paragraph 7#c77;,c7 is not required to be made available to the public4 7b7 ,additional offense 7#a7 ,in general ,except as provided in paragraph 7#c71 no person initiating1 receiving1 or otherwise making a bet or wager with a licensee1 or sending1 receiving1 or inviting information assisting with a bet or wager with a licensee1 shall knowingly use1 possess1 or assist another in the use of any cheating device with intent to cheat or defraud any licensee or other persons placing bets or wagers with such licensee4 7#b7 ,bots ,a software program that makes bets or wagers according to an algorithm shall constitute a type of cheating device under this subsection4 7#c7 ,permissible uses ,it shall not be a violation of this subsection for a licensee1 its agents1 a qualified body1 or its agent to use or possess a device described in paragraph 7#a7 or 7#b7 if-- 7,a7 such use or possession is solely for purposes of testing an ,internet gambling facility2 7,b7 such device is not used in live play involving actual bets or wagers2 and 7,c7 such device is registered with the qualified body that issued the applicable license4 7#d7 ,disclosure to public not required ,notwithstanding any other provision of law1 a registration under paragraph 7#c77;,c7 is not required to be made available to the public4 7c7 ,criminal penalty ,whoever violates subsection 7a7 or 7b7 shall be fined under title #ah1 ,united ,states ,code1 imprisoned for not more than #c years1 or both4 7d7 ,permanent injunction ,upon conviction of a person for violation of this section1 the court may enter a permanent injunction enjoining such person from initiating1 receiving1 or otherwise making bets or wagers or sending1 receiving1 or inviting information assisting in the placing of bets or wagers4 7e7 ,report on threats to operation of internet gambling facilities 7#a7 ,in general ,not later than #a year after the date of first issuance specified in section #aad7;a71 the ,director of the ,national ,institute of ,standards and ,technology shall submit to ,congress a report on threats to the integrity of ,internet gambling facilities operated by licensees4 7#b7 ,elements ,the report required by paragraph 7#a7 shall include the following3 7,a7 ,identification of threats to the integrity of ,internet gambling facilities operated by licensees4 7,b7 ,identification of technologies that could be used to hack computer networks1 facilitate cheating1 or otherwise place consumers at risk of fraud or monetary loss4 7,c7 ,an evaluation of steps taken by ,internet gambling facilities licensed under this title to respond to the threats identified pursuant to subparagraph 7,a74 7,d7 ,recommendations for such measures as the ,director considers appropriate to deal with the threats identified pursuant subparagraph 7,a74 #aac4 ,construction and relation to other law 7a7 ,no impact on existing lawful games 7#a7 ,in general ,if bets or wagers on certain games of skill that are not ,internet gambling are not regarded as gambling or otherwise prohibited under all provisions of ,federal1 applicable ,state1 or tribal law-- 7,a7 nothing in this title shall be construed to require licensing under this title with respect to such games2 and 7,b7 fees paid to participate in such games shall not be regarded as bets or wagers for purposes of this title4 7#b7 ,reliance ,nothing in this title may be relied on as support for the legality or permissibility of any games without compliance with the licensing and other requirements of this title4 7b7 ,preemption of ,state and tribal laws 7#a7 ,in general ,except as otherwise expressly provided in this title1 the provisions of this title shall supersede any provisions of the law of any ,state or ,indian tribe expressly relating to the permitting1 prohibiting1 licensing1 or regulating of ,internet gambling facilities and the law of any ,state or ,indian tribe expressly relating to the authorization1 prohibiting1 licensing1 expansion1 or regulation of gambling1 except to the extent such ,state or tribal laws are not inconsistent with this title4 7#b7 ,savings provision ,nothing in this title may be construed to limit the applicability or enforcement of any ,state or tribal consumer protection law of general applicability or preempt the applicability of ,state or tribal trespass1 contract1 or tort law4 7c7 ,relation to gambling devices transportation act ,equipment used by a licensee or significant vendor in the furtherance of licensed activities pursuant to this title 7but not to the extent it is used for other purposes7 shall not be considered a gambling device within the meaning of section #a of the ,act of ,january #b1 #aiea1 prohibiting the transportation of gambling devices in interstate and foreign commerce 7#ae ,u4,s4,c4 #aaga74 7d7 ,exemptions from subchapter iv of chapter #ec of title #ca1 ,united ,states ,code ,subchapter ,,iv of chapter #ec of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 #ecfh4 ,inapplicability to certain gaming and wagers ,the provisions of this subchapter-- 7#a7 restricting acceptance of bets or wagers made by individuals located in the ,united ,states or requiring the blocking or other prevention of restricted transactions shall not apply with respect to the placing1 transmitting1 or receiving of interstate off-track wagers1 as such term is defined in section #c of the ,interstate horseracing ,act of #aigh 7#ae ,u4,s4,c4 #cjjb71 that are permissible under such ,act 7#ae ,u4,s4,c4 #cjja et seq471 whether such off-track wager is made by telephone1 ,internet1 satellite1 or other wire or wireless communication facility1 service1 or medium2 and 7#b7 shall not apply to any bet or wager-- 7,a7 occurring pursuant to a license issued under title ,i of the ,internet ,gambling ,regulation1 ,enforcement1 and ,consumer ,protection ,act of #bjac1 subject to section #aji of that ,act2 7,b7 that is permissible under the ,interstate horseracing ,act of #aigh 7#ae ,u4,s4,c4 #cjja et seq472 or 7,c7 is the purchase of a chance or opportunity to win a lottery or other prize-- 7i7 which opportunity to win is predominantly subject to chance2 and 7ii7 which is authorized by a ,state or ,indian tribe wholly within its borders4 4 7e7 ,inapplicability of certain provisions to interstate off-track wagers ,the provisions of this title requiring a license shall not apply with respect to the placing1 transmitting1 or receiving of interstate off-track wagers1 as such term is defined in section #c of the ,interstate horseracing ,act of #aigh 7#ae ,u4,s4,c4 #cjjb71 that are permissible under such ,act 7#ae ,u4,s4,c4 #cjja et seq471 whether such off-track wager is made by telephone1 ,internet1 satellite1 or other wire or wireless communication facility1 service1 or medium4 7f7 ,wire act amendments 7#a7 ,definitions ,section #ajha of title #ah1 ,united ,states ,code1 is amended-- 7,a7 by designating the five undesignated paragraphs as paragraphs 7#a7 through 7#e71 respectively2 7,b7 in paragraph 7#b71 as so designated by subparagraph 7,a71 by striking value4 and inserting value1 including any ,internet gambling facility42 7,c7 by amending paragraph 7#e71 as so designated by subparagraph 7,a71 to read as follows3 7#e7 ,the term communication facility includes any instrumentality1 personnel1 and services 7including1 the receipt1 forwarding1 or delivery of communications7 used in the transmission of a writing1 sign1 picture1 or sound of any kind by aid of wire1 cable1 radio1 or an electromagnetic1 photoelectronic1 or photooptical system1 or other like connection 7whether fixed or mobile7 between the points of origin and reception of such transmission4 2 and 7,d7 by adding at the end the following3 7#f7 ,the term bet or wager has the meaning given the term in section #ajb of the ,internet ,gambling ,regulation1 ,enforcement1 and ,consumer ,protection ,act of #bjac4 7#g7 ,the term ,internet means the international computer network of interoperable packet switched data networks4 7#h7 ,the term ,internet gambling facility has the same meaning given the term in section #ajb of the ,internet ,gambling ,regulation1 ,enforcement1 and ,consumer ,protection ,act of #bjac4 7#i7 ,the terms financial transaction provider and insured depository institution have the meanings given those terms in section #ecfb of title #ca1 ,united ,states ,code4 7#aj7 ,the term gambling business means a business of betting or wagering4 7#aa7 ,the terms own or control and owned or controlled include circumstances within the meaning of section #b7;a77#b7 of the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #ahda7;a77#b774 4 7#b7 ,modification of existing prohibition ,section #ajhd of title #ah1 ,united ,states ,code1 is amended to read as follows3 #ajhd4 ,transmission of wagering information2 penalties 7a7 ,offense ,except as otherwise provided in this section or in the ,internet ,gambling ,regulation1 ,enforcement1 and ,consumer ,protection ,act of #bjac1 it shall be unlawful for a person that is engaged in a gambling business to knowingly use a communication facility for the transmission in interstate or foreign commerce1 within the special maritime and territorial jurisdiction of the ,united ,states1 or to or from any place outside the jurisdiction of any country with respect to any transmission to or from the ,united ,states1 of-- 7#a7 bets or wagers2 7#b7 information assisting in the placing of bets or wagers2 or 7#c7 a communication1 which entitles the recipient to receive money or credit as a result of bets or wagers1 or for information assisting in the placing of bets or wagers4 7b7 ,penalty ,any person who violates subsection 7a7 shall be fined under this title1 imprisoned for not more than #e years1 or both4 7c7 ,transmission in interstate or foreign commerce ,except as otherwise provided in this section1 the transmission of bets or wagers1 information assisting in the placing of bets or wagers1 or a communication which entitles the recipient to receive money or credit as a result of bets or wagers1 or for information assisting in the placing of bets or wagers shall be considered a transmission in interstate or foreign commerce subject to this section if such transmission involved the use1 in some part1 of the ,internet4 7d7 ,rules of construction ,nothing in this section shall be construed to-- 7#a7 prohibit-- 7,a7 the transmission of information assisting in the placing of bets or wagers for use in news reporting if such transmission does not solicit or provide information for the purpose of facilitating or enabling the placing or receipt of bets or wagers2 7,b7 the interstate transmission of information relating to a ,state-specific lottery between a ,state or foreign country where such betting or wagering is permitted under ,federal1 ,state1 tribal1 or local law and an out-of-,state data center for the purposes of assisting in the operation of such ,state-specific lottery2 or 7,c7 a qualifying intrastate lottery transaction 7as defined in section #ajb of the ,internet ,gambling ,regulation1 ,enforcement1 and ,consumer ,protection ,act of #bjac2 7,d7 any authorized activity carried out in connection with a license issued under the ,internet ,gambling ,regulation1 ,enforcement1 and ,consumer ,protection ,act of #bjac4 7#b7 create immunity from criminal prosecution under any laws of a ,state or tribe2 or 7#c7 authorize activity that is prohibited under chapter #agh of title #bh4 7e7 ,applicability ,this section shall not apply to any activity that is permissible under the ,interstate horseracing ,act of #aigh 7#ae ,u4,s4,c4 #cjja et seq471 or any activity that is permissible under title ,i of the ,internet ,gambling ,regulation1 ,enforcement1 and ,consumer ,protection ,act of #bjac4 7f7 ,duty of common carrier 7#a7 ,in general ,if a common carrier 7as defined in section #c of the ,communications ,act of #aicd 7#dg ,u4,s4,c4 #aec771 subject to the jurisdiction of the ,federal ,communications ,commission1 is notified in writing by a ,federal1 ,state1 tribal1 or local law enforcement agency1 acting within the jurisdiction of the law enforcement agency1 that a communication facility furnished by the common carrier is being used or will be used by a subscriber of the common carrier for the purpose of transmitting or receiving gambling information in interstate or foreign commerce1 within the special maritime and territorial jurisdiction of the ,united ,states1 or to or from any place outside the jurisdiction of any country with respect to any transmission to or from the ,united ,states in violation of ,federal1 ,state1 tribal1 or local law1 the common carrier shall discontinue or refuse1 the leasing1 furnishing1 or maintaining of such facility1 after reasonable notice to the subscriber4 7#b7 ,limitation on liability ,no damages1 penalty1 or forfeiture1 civil or criminal1 shall be found against a common carrier for any act done in compliance with any notice received from a law enforcement agency4 7#c7 ,rule of construction ,nothing in this subsection shall be construed to prejudice the right of any person affected to secure an appropriate determination1 as otherwise provided by law1 in a ,federal court or in a ,state1 tribal1 or local tribunal or agency1 that such facility should not be discontinued or removed1 or should be restored4 7g7 ,exclusions ,this section1 subchapter ,,iv of chapter #ec of title #ca1 and any other provision of ,federal law that establishes criminal penalties for any activity involved in placing1 receiving or otherwise transmitting a bet or wager shall not apply to any bet or wager that-- 7#a7 is permissible under the ,interstate horseracing ,act of #aigh 7#ae ,u4,s4,c4 #cjja et seq472 7#b7 is an international off-track wager on horseracing1 or the combination of international horseracing pari-mutuel wagering pools1 that is lawful in the ,state or foreign jurisdiction involved2 7#c7 is permissible under the ,prohibition of ,internet ,gambling1 ,regulation1 and ,consumer ,protection ,act of #bjac2 or 7#d7 is a qualifying intrastate lottery bet or wager as defined in section #ajb of the ,act referred to in paragraph 7#c74 4 7#c7 ,authorization of civil enforcement 7,a7 ,in general ,chapter #ej of title #ah1 ,united ,states ,code1 is amended by adding at the end the following3 #ajhe4 ,civil remedies 7a7 ,jurisdiction ,the district courts of the ,united ,states 7in addition to any other remedies under current law7 shall have original and exclusive jurisdiction to prevent and restrain violations of section #ajhd by issuing appropriate orders in accordance with this section1 regardless of whether a prosecution has been initiated under section #ajhd4 7b7 ,proceedings 7#a7 ,definition ,in this subsection1 the term account means-- 7,a7 the unpaid balance of money or its equivalent received or held by an insured depository institution in the usual course of business and for which it has given or is obligated to give credit1 either conditionally or unconditionally1 to an account1 including interest credited1 or which is evidenced by an instrument on which the depository institution is primarily liable2 and 7,b7 money received or held by an insured depository institution1 or the credit given for money or its equivalent received or held by the insured depository institution in the usual course of business for a special or specific purpose1 regardless of the legal relationships established thereby1 including escrow funds1 funds held as security for securities loaned by the depository institution1 funds deposited as advance payment on subscriptions to ,united ,states ,government securities1 and funds held to meet its acceptances4 7#b7 ,proceedings ,the ,united ,states may institute proceedings under this section-- 7,a7 to obtain injunctive or declarative relief1 including a temporary restraining order and a preliminary injunction1 against any person 7other than a financial transaction provider1 except as provided in paragraph 7#c77 to prevent or restrain a violation or a threatened violation of section #ajhd2 7,b7 in the case of an insured depository institution that is a financial transaction provider1 to-- 7i7 restrain an account maintained at such insured depository institution if such account is-- 7,i7 owned or controlled by a gambling business2 and 7,,ii7 includes proceeds of1 or is used to facilitate a violation of section #ajhd2 or 7ii7 seize funds in an account described in clause 7i7 if such funds-- 7,i7 are owned or controlled by a gambling business2 and 7,,ii7 constitute the proceeds of1 were derived from1 or facilitated1 a violation of section #ajhd4 7#c7 ,financial transaction providers ,the limitation in paragraph 7#b77;,a7 shall not apply if the financial transaction provider is a gambling business1 in which case1 such financial transaction provider shall be subject to the enforcement provisions under paragraph 7#b74 7#d7 ,injunctive proceedings 7,a7 ,in general ,the attorney general 7or other appropriate ,state official7 of a ,state in which a communication in violation of section #ajhd allegedly has been or will be initiated or received may institute proceedings under this section to obtain injunctive or declarative relief to prevent or restrain the violation or threatened violation4 7,b7 ,relief ,upon application of the attorney general 7or other appropriate ,state official7 of an affected ,state under subparagraph 7,a71 the district court may enter a temporary restraining order1 a preliminary injunction1 an injunction1 or declaratory relief against any person 7other than a financial transaction provider7 to prevent or restrain a violation or threatened violation of section #ajhd1 in accordance with rule #fe of the ,federal ,rules of ,civil ,procedure4 7#e7 ,enforcement authority ,notwithstanding paragraphs 7#b7 and 7#d71 for a communication in violation of section #ajhd that allegedly has been or will be initiated or received on ,indian lands 7as that term is defined in section #d of the ,indian ,gaming ,regulatory ,act 7#be ,u4,s4,c4 #bgjc77-- 7,a7 the ,united ,states shall have the enforcement authority provided under paragraph 7#b72 7,b7 the enforcement authorities specified in an applicable ,tribal-,state compact negotiated under section #aa of the ,indian ,gaming ,regulatory ,act 7#be ,u4,s4,c4 #bgaj7 shall be carried out in accordance with that compact2 and 7,c7 if there is no applicable ,tribal-,state compact1 an appropriate tribal official may institute proceedings in the same manner as an attorney general of a ,state4 7#f7 ,rule of construction ,nothing in this subsection shall be construed to alter1 supersede1 or otherwise affect the application of the ,indian ,gaming ,regulatory ,act 7#be ,u4,s4,c4 #bgja et seq474 7#g7 ,limitation on relief ,notwithstanding paragraph 7#d71 no relief shall be granted under this section against a financial transaction provider except as provided in paragraph 7#c74 7c7 ,limitation on liability ,no damages1 penalty1 or forfeiture1 civil or criminal1 shall be found against any person or entity for any act done in compliance with any notice received from a law enforcement agency4 4 7,b7 ,clerical amendment ,the table of sections for chapter #ej of title #ah1 ,united ,states ,code1 is amended by inserting after the item relating to section #ajhd the following3 #ajhe4 ,civil remedies4 4 7g7 ,systems used in support of lawful gambling 7#a7 ,in general ,this title1 subchapter ,,iv of chapter #ec of title #ca1 ,united ,states ,code1 section #ajhd of title #ah1 ,united ,states ,code1 and any other provision of ,federal law that establishes criminal penalties for any activity involved in placing1 receiving1 or otherwise transmitting a bet or wager1 information assisting in the placing of bets or wagers1 or a communication which entitles the recipient to receive money or credit as a result of bets or wagers1 shall not apply to gaming devices1 information1 or communications1 to the extent used to support bets or wagers offered by a casino gaming facility that-- 7,a7 occur between participants who are located on the premises of the same casino gaming facility2 and 7,b7 are lawful in the ,state or on the ,indian lands in or on which the casino gaming facility is located4 7#b7 ,definitions ,in this subsection3 7,a7 ,casino gaming facility ,the term casino gaming facility means any facility that provides casino gaming on a riverboat1 at a race track1 or in another facility1 regardless of the number of gaming devices in #a physical location1 pursuant to a duly authorized license issued by a gaming regulatory authority of a ,state of ,indian tribe4 7,b7 ,participants ,the term participants includes all persons who are party to the bet or wager1 including1 in the case of banked games1 the casino gaming facility or operator itself4 7h7 ,preservation of existing lawful gambling 7#a7 ,in general ,this title1 subchapter ,,iv of chapter #ec of title #ca1 ,united ,states ,code1 section #ajhd of title #ah1 ,united ,states ,code1 and any other provision of ,federal law that establishes criminal penalties for any activity involved in placing1 receiving1 or otherwise transmitting a bet or wager1 information assisting in the placing of bets or wagers1 or a communication which entitles the recipient to receive money or credit as a result of bets or wagers1 shall not apply to the offering of a bet or wager or gambling game authorized1 licensed1 and regulated by a ,state or ,indian tribe on the day before the date of enactment of this ,act and otherwise lawful activities in support of the offering of that bet or wager or gambling game1 or that is permissible under the ,interstate ,horseracing ,act of #aigh 7#ae ,u4,s4,c4 #cjja et seq472 or that is the purchase of a chance or opportunity to win a lottery or other prize-- 7,a7 which opportunity to win is predominantly subject to chance2 and 7,b7 which is authorized by a ,state or ,indian tribe wholly within its borders2 7#b7 ,applicability ,paragraph 7#a7 shall not apply to-- 7,a7 any expansion of or other change to any such bet or wager or gambling game that otherwise would violate any applicable provision of ,federal law if a change in ,state or tribal law is necessary in order to permit such expansion or change2 7,b7 the offering of a bet or wager or gambling game of the same type and character in a ,state or ,indian tribe in which that bet or wager or gambling game is not permitted on the date of enactment of this ,act2 and 7,c7 qualifying intrastate lottery transactions4 7#c7 ,casino gaming facility defined ,in this subsection1 the term casino gaming facility means any facility that provides casino gaming on a riverboat1 at a race track1 or in another facility1 regardless of the number of gaming devices in #a physical location1 pursuant to a duly authorized license issued by a gaming regulatory authority of a ,state of ,indian tribe4 #aad4 ,orderly transition 7a7 ,issuance of initial licenses 7#a7 ,in general ,each qualified body designated under section #aje before the date of first issuance specified in this subsection1 shall1 to the extent practicable while meeting the requirements and standards of this title1 issue multiple licenses under this title before such date in order to ensure a robust and competitive market for consumers and to prevent the first licensees from gaining an unfair competitive advantage4 7#b7 ,effective date of initial licenses ,no license issued under this title shall authorize a licensee to accept a bet or wager under this title before the date of first issuance specified in this subsection4 7#c7 ,date of first issuance ,the date of first issuance specified in this subsection is the date that is #bgj days after the date of the enactment of this ,act4 7b7 ,orderly cessation of unlicensed activity and safekeeping of customer funds 7#a7 ,in general ,each person shall1 with respect to an ,internet gambling facility not licensed under this ,act and to the extent applicable to the person-- 7,a7 not later than #cj days after the date of the enactment of this ,act1 cease offering1 accepting1 and providing services with respect to bets or wagers from individuals the person knows1 or reasonably should know1 are located in the ,united ,states2 7,b7 provide to each individual located in the ,united ,states who has outstanding sums on deposit with such person notice to such individual that operations will be ceasing pursuant to paragraph 7#a7 with instructions indicating the procedures the individual should use to request the return of such sums-- 7i7 not later than #g days after the date of the enactment of this ,act and not less frequently than quarterly thereafter until such sums have been returned1 by e-mail2 7ii7 not later than #cj days after the date of the enactment of this ,act and not less frequently than semi-annually thereafter until such sums have been returned1 by mail2 and 7iii7 beginning not later than #ad days after the date of the enactment of this ,act and ending on the date that such sums have been returned1 by promptly displaying notice each time such individual signs into the ,internet gambling facility2 7,c7 promptly return all outstanding sums to individuals located in the ,united ,states who have sums on deposit with such person1 upon the request of such individuals2 7,d7 during the #b-year period beginning on the date of the enactment of this ,act1 retain all outstanding sums on deposit with such person that are owed to individuals under subparagraph 7,c7 the disposition of which remains unresolved because of a lack of a request by such individual under such subparagraph or other reason2 and 7,e7 on the date that is #b years and #a day after the date of the enactment of this ,act1 place any remaining sums on deposit with such person that are owed to individuals under subparagraph 7,c7 the disposition of which remains unresolved in escrow with a financial institution in the ,united ,states for safekeeping and orderly disposition as the ,secretary may direct4 7#b7 ,applicability regardless of license application status ,paragraph 7#a7 applies to any person who has operated an ,internet gambling facility not licensed under this ,act regardless of whether the person applies for a license or seeks a certificate of suitability with respect to an application for a license under this title4 7#c7 ,criminal penalty ,whoever violates paragraph 7#a7 shall be fined under title #ah1 ,united ,states ,code1 in an amount not to exceed #c times the amount of the funds subject to this subsection or imprisoned under such title for not more than #b years1 or both4 7#d7 ,regulations ,the ,office of ,internet ,gambling ,oversight shall prescribe regulations to carry out this subsection4 7#e7 ,judicial review ,an applicant may seek judicial review of a determination under paragraph 7#a7 or 7#b7 only by the ,united ,states district court for the ,district of ,columbia in accordance with chapter #g of title #e1 ,united ,states ,code4 7c7 ,no effect on existing law ,nothing in this section shall be construed to repeal1 to amend1 or to affect the interpretation of any provision of ,federal or ,state law that was in effect before the date of the enactment of this ,act that-- 7#a7 authorizes the provision of services relating to bets or wagers by facilities authorized and licensed by that ,state or ,indian tribe in compliance with the law of that ,state or ,indian tribe1 as applicable1 and solely provides services to participants wholly within the boundaries of such ,state or the ,indian lands of such ,indian tribe2 7#b7 prohibits1 restricts1 or otherwise addresses bets or wagers2 or 7#c7 prohibits fraud1 unfair or deceptive acts or practices1 or other criminal activity4 #aae4 ,annual reports 7a7 ,licensing and regulation of internet gambling facilities 7#a7 ,in general ,not later than #a year after the date of first issuance specified in section #aad7;a7 and not less frequently than annually thereafter1 the ,secretary shall submit to ,congress a report on the licensing and regulation of ,internet gambling facilities under this title4 7#b7 ,elements ,each report submitted under paragraph 7#a7 shall include the following3 7,a7 ,a description of all notices received by the ,secretary under subsections 7b7 and 7c7 of section #ajh4 7,b7 ,the amount of assessments collected under section #ajf7;e7 and1 in cooperation with the ,secretary of the ,treasury1 an estimate of the amount of income tax revenue that is attributable to the operation of ,internet gambling facilities during the period covered by the report4 7,c7 ,a list of qualified bodies1 the number of licensees reviewed by the qualified bodies under this title1 and the outcomes of such reviews4 7,d7 ,a description of the efforts the ,secretary has undertaken to ensure that qualified bodies are properly issuing licenses and regulating licensees under this title4 7,e7 ,a detailed description of each type of game offered by licensees and how each type is consistent with the definition of poker under section #ajb4 7,f7 ,such other information as the ,secretary considers appropriate4 7b7 ,consumer protection 7#a7 ,in general ,not later than #a year after the date of first issuance specified in section #aad7;a7 and not less frequently than annually thereafter1 the ,secretary shall submit to the ,committee on ,banking1 ,housing and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives a report on commercial and regulatory practices carried out to protect consumers with respect to ,internet gambling1 including the practices carried out pursuant to the requirements of section #ajg and the regulations prescribed pursuant to such section4 7#b7 ,elements ,each report submitted under paragraph 7#a7 shall include the following3 7,a7 ,a detailed description of the efforts of each qualifying body to protect consumers from unfair or deceptive acts or practices1 including deceptive advertising and marketing to minors4 7,b7 ,a description of the practices that the ,secretary recommends qualifying bodies adopt to protect consumers4 7,c7 ,such recommendations as the ,secretary may have for legislative action as the ,secretary considers necessary to protect consumers with respect to ,internet gambling4 7,d7 ,such other information as the ,secretary considers appropriate4 #aaf4 ,independent testing of licensed operator equipment 7a7 ,requirement ,the ,secretary shall require independent testing of hardware1 software1 communications equipment1 and other necessary devices for ,internet gambling facilities to ensure the integrity1 accountability1 and randomness of play and network security4 7b7 ,definition ,for purposes of this section1 the term independent testing means testing conducted by a scientific laboratory-- 7#a7 that is accredited by an intentional accreditation body approved by the ,secretary2 7#b7 that is competent and qualified to scientifically test and evaluate equipment1 software1 communications and functionality relating to the operation of an ,internet gambling facility2 and 7#c7 that is not be owned or controlled by an ,internet gambling facility1 an electronic gaming equipment vendor1 manufacturer1 or retailer1 or an ,internet gaming operator4 #aag4 ,inclusion of authority to address gambling addiction in samhsa authorities ,section #eja7;d7 of the ,public ,health ,service ,act 7#db ,u4,s4,c4 #bij;aa7d77 is amended-- 7#a7 by striking and at the end of paragraph 7#ag72 7#b7 by striking the period at the end of paragraph 7#ah7 and inserting 2 and2 and 7#c7 by adding at the end the following3 7#ai7 establish and implement programs for the identification1 prevention1 and treatment of pathological and other problem gambling4 4 #aah4 ,compilation of datasets on player behavior ,the ,secretary shall compile and make available to the public1 on the ,web site of the ,department of the ,treasury1 datasets1 with respect to ,internet gambling1 on player behavior from customer tracking data collected or generated by loyalty programs1 player tracking software1 online gambling transactions1 or any other information system4 ,the ,secretary shall ensure that personally identifying information1 including player name1 street address1 and bank or credit information1 are automatically removed from the data4 ,the data shall include information on player characteristics including gender1 age and region of residence1 player behavior including frequency of play1 length of play1 speed of play1 denomination of play1 amounts wagered and1 if applicable1 number of lines or hands played1 and characteristics of games played4 #aai4 ,effective date 7a7 ,in general ,except as otherwise provided in this title1 the provisions of this title shall take effect on the date that is #cj days after the date of the enactment of this ,act4 7b7 ,regulations required before issuing licenses ,notwithstanding any other provision of this title1 a qualified body may not issue a license under this title until the qualified body has issued regulations to meet its obligations as a qualified body4 ,,ii ,,enforcement ,,under ,,titles #ah ,,and #ca1 ,,united ,,states ,,code #bja4 ,financial service providers ,subchapter ,,iv of chapter #ec of title #ca1 ,united ,states ,code1 is amended-- 7#a7 in section #ecfb-- 7,a7 by redesignating paragraph 7#aa7 as paragraph 7#ab72 and 7,b7 by inserting after paragraph 7#aj7 the following3 7#aa7 ,list of licensed internet gambling facilities ,the term list of licensed ,internet gambling facilities means the list established and maintained under section #ajf7n7 of the ,internet ,gambling ,regulation1 ,enforcement1 and ,consumer ,protection ,act of #bjac4 2 and 7#b7 in section #ecfd1 by striking subsection 7d7 and inserting the following3 7d7 ,financial transaction providers 7#a7 ,in general ,a financial transaction provider shall prevent1 prohibit1 or suspend its service from completing payment transactions involving customers within the ,united ,states and a person or entity that is-- 7,a7 an ,internet gambling facility not included on the list of licensed ,internet gambling facilities1 or that the financial transaction provider reasonably believes is included on such list2 7,b7 demonstrated to be1 or that the financial transaction provider reasonably believes to be1 an unlicensed ,internet gambling enterprise1 based on information other than the list of licensed ,internet gambling facilities2 or 7,c7 acting on behalf of an ,internet gambling facility that is not included on the list of licensed ,internet gambling facilities1 or that the financial transaction provider reasonably believes is included on such list1 if the financial transaction provider has knowledge that such person or entity is acting on behalf of the unlicensed person or entity4 7#b7 ,safe harbor ,a financial transaction provider shall not be held liable to any person-- 7,a7 for engaging in a financial activity or transaction1 including a payments processing activity1 in connection with a bet or wager that the provider believes is permitted by the ,internet ,gambling ,regulation1 ,enforcement1 and ,consumer ,protection ,act of #bjac or the ,internet horseracing ,act of #aigh 7#ae ,u4,s4,c4 #cjja et seq471 unless the financial transaction provider has actual knowledge that the financial activity or transaction was conducted in violation of either such ,act or any applicable provision of ,federal or ,state law2 or 7,b7 for taking any action pursuant to paragraph 7#a74 4 #bjb4 ,amendments relating to illegal gambling businesses ,section #aiee7;b77#a7 of title #ah1 ,united ,states ,code1 is amended-- 7#a7 in clause 7i71 by striking 7i7 is and inserting 7,a77i7 is2 7#b7 in clause 7iii71 by striking the period at the end and inserting 2 or2 and 7#c7 by adding at the end the following3 7,b7 is an unlawful ,internet gambling facility1 as defined in section #ajb of the ,internet ,gambling ,regulation1 ,enforcement1 and ,consumer ,protection ,act of #bjac4 4 #bjc4 ,further amendments to subchapter ,,iv of chapter #ec of title #ca1 ,united ,states ,code ,section #ecfb7aj7 of title #ca1 ,united ,states ,code1 is amended-- 7#a7 by striking subparagraphs 7,a7 through 7,c7 and inserting the following3 7,a7 ,in general ,the term unlawful ,internet gambling means to place1 receive1 or otherwise knowingly transmit a bet or wager by or on behalf of a person located in the ,united ,states by any means which involves the use1 at least in part1 of the ,internet1 unless such bet or wager is expressly permitted under applicable ,federal law4 2 7#b7 by redesignating subparagraph 7,d7 as subparagraph 7,b72 7#c7 in subparagraph 7,b71 as so redesignated1 by striking clause 7iii72 and 7#d7 by striking subparagraph 7,e7 and inserting the following3 7,c7 ,qualifying intrastate lottery transactions ,the term unlawful ,internet gambling does not include the purchase of a chance or opportunity to win a lottery or other prize that satisfies all of the conditions and limitations set out in section #ajb7c77;,b7 of the ,internet ,gambling ,regulation1 ,enforcement1 and ,consumer ,protection ,act of #bjac4 7,d7 ,licensed internet gambling facilities ,the term unlawful ,internet gambling does not include an activity carried out by an ,internet gambling facility1 as such term is defined in section #ajb of the ,internet ,gambling ,regulation1 ,enforcement1 and ,consumer ,protection ,act of #bjac1 operated by a person under a license provided under title ,i of that ,act1 in accordance with the provisions of that title ,i4 4 #bjd4 ,bettor forfeiture ,section #iha7;a77#a7 of title #ah1 ,united ,states ,code1 is amended by adding at the end the following3 7,i7 ,any property1 real or personal1 involved in a transaction or attempted transaction in violation of section #ajc of the ,internet ,gambling ,regulation1 ,enforcement1 and ,consumer ,protection ,act of #bjac1 or any property traceable to such property4 4 #bje4 ,regulations 7a7 ,regulations ,not later than #ahj days after the date of enactment of this ,act1 the ,secretary of the ,treasury shall prescribe such regulations as the ,secretary of the ,treasury considers necessary to ensure compliance with the ,bank ,secrecy ,act 7#ab ,u4,s4,c4 #aiea et seq42 #ca ,u4,s4,c4 #ecaa et seq471 by licensees1 significant vendors to such licensees1 and financial service providers to such licensees 7as those terms are defined in section #ajb74 7b7 ,revision of regulations ,not later than #ahj days after the date of enactment of this ,act1 the ,secretary of the ,treasury shall revise part #bcc of title #ab1 ,code of ,federal ,regulations1 and part #acb of title #ca1 ,code of ,federal ,regulations1 to conform with the provisions of title ,i4 #bjf4 ,conforming amendment ,section #caj7;b77#b77;,i7 of title #ca1 ,united ,states ,code1 is amended by striking subchapter ,,ii and inserting subchapters ,,ii and ,,iv4 ,,iii ,,other ,,matters #cja ,severability ,if any provision of this ,act is declared unconstitutional1 or the applicability thereof to any person or circumstances is held invalid1 the remainder of the ,act shall remain in effect and will continue to apply to other persons and circumstances4