,i #aaeth ,,congress #ast ,session ,h4 ,r4 #decj ,,in ,,the ,,house ,,of ,,representatives ,december #d1 #bjag,mr4 ,pallone introduced the following bill2 which was referred to the ,committee on ,energy and ,commerce1 and in addition to the ,committee on 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 provide that a person or governmental entity is not subject to civil or criminal liability under ,federal law for gaming activity that is lawful under ,state law1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,gaming ,accountability and ,modernization ,enhancement ,act of #bjag or the ,,game ,act of #bjag4 #b4 ,no ,federal liability for gaming activity lawful under ,state law 7a7 ,in general ,except as provided in subsection 7b7 and notwithstanding any other law1 a person or governmental entity is not subject to civil or criminal liability under any provision of ,federal law for engaging through a gaming facility in gaming activity that is lawful under the law of the ,state in which such person or governmental entity engages in such activity4 7b7 ,minimum consumer protections ,subsection 7a7 does not apply to a person or governmental entity with respect to gaming activity engaged in by the person or governmental entity in a ,state unless the law of the ,state provides for consumer protections with respect to such activity that include the following3 7#a7 ,licensing of gaming facilities ,appropriate licensing or certification mechanisms for gaming facilities4 7#b7 ,reporting requirements for gaming facilities ,appropriate mechanisms1 including reporting requirements1 to ensure1 to a reasonable degree of certainty1 that gaming facilities are operating in a fair and transparent manner4 7#c7 ,prohibition of underage gaming ,appropriate safeguards to ensure1 to a reasonable degree of certainty1 that an individual placing a bet or wager is not under the minimum legal age for placing such a bet or wager established by the ,state4 7#d7 ,prohibited locations ,appropriate safeguards to ensure1 to a reasonable degree of certainty1 that an individual placing a bet or wager is physically located in a jurisdiction that has not prohibited such bet or wager at the time the bet or wager is placed4 7#e7 ,mandatory collection or reporting of customer taxes ,appropriate mechanisms to ensure1 to a reasonable degree of certainty1 that all ,federal and ,state taxes relating to the placement of a bet or wager are collected from or reported by the person placing such bet or wager1 as required by law1 at the time of any payment of the proceeds of such bet or wager4 7#f7 ,mandatory collection or reporting of taxes on operator of gaming facility ,appropriate mechanisms to ensure that-- 7,a7 all ,federal and ,state taxes relating to the operation of a gaming facility are collected or reported1 as required by law2 and 7,b7 adequate records are maintained to enable later audit or verification of such collection or reporting4 7#g7 ,safeguards against financial crime ,appropriate safeguards to prevent1 to a reasonable degree of certainty1 fraud1 money laundering1 and financing of terrorism4 7#h7 ,safeguards against compulsive play ,appropriate safeguards to combat compulsive gambling4 7#i7 ,privacy and data security safeguards ,appropriate safeguards to protect1 to a reasonable degree of certainty1 the privacy and online security of any person placing a bet or wager4 7#aj7 ,prevention of cheating ,appropriate safeguards to ensure1 to a reasonable degree of certainty1 that a bet or wager is fair and honest1 and to prevent1 to a reasonable degree of certainty1 cheating 7including collusion and the use of a cheating device74 7#aa7 ,integrity safeguards ,in a ,state in which betting or wagering relating to sporting events is lawful under the law of the ,state1 appropriate safeguards to ensure1 to a reasonable degree of certainty1 the integrity of the sporting event1 including limitations on a bet or wager accepted during the sporting event4 7#ab7 ,redress ,appropriate recourse mechanisms for persons affected by noncompliance with the consumer protections required by this subsection and any other consumer protections implemented by the ,state with respect to the placement of bets or wagers or the operation of gaming facilities4 7c7 ,federal ,trade ,commission filing ,a gaming facility that accepts bets or wagers from persons in more than one ,state shall submit to the ,commission a description of how the gaming facility has complied with the law of each such ,state with respect to each of the consumer protections described in subsection 7b7 that is provided for by the law of such ,state4 #c4 ,use of credit card to verify age prohibited ,it shall be unlawful for any person to accept a credit card payment as a method of age verification for placing any bet or wager4 #d4 ,enforcement 7a7 ,by ,federal ,trade ,commission 7#a7 ,unfair or deceptive acts or practices ,a violation of section #b7;c7 or #c1 or a rule prescribed under such section1 shall be treated as a violation of a rule defining an unfair or deceptive act or practice prescribed under section #ah7;a77#a77;,b7 of the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #eg;a7a77#a77;,b774 7#b7 ,powers of ,commission ,the ,commission shall enforce this ,act in the same manner1 by the same means1 and with the same jurisdiction1 powers1 and duties as though all applicable terms and provisions of the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq47 were incorporated into and made a part of this ,act4 ,any person who violates section #b7;c7 or #c1 or a rule prescribed under such section1 shall be subject to the penalties and entitled to the privileges and immunities provided in the ,federal ,trade ,commission ,act4 7b7 ,by ,state attorneys general 7#a7 ,in general ,if the attorney general of a ,state has reason to believe that any person has violated or is violating section #b7;c7 or #c1 or a rule prescribed under such section1 the attorney general1 in addition to any authority the attorney general may have to bring an action in ,state court under the consumer protection law of the ,state1 may bring a civil action in any appropriate ,united ,states district court or in any other court of competent jurisdiction1 including a ,state court1 to-- 7,a7 enjoin further such violation by the defendant2 7,b7 enforce compliance with such section or such rule2 7,c7 obtain civil penalties2 or 7,d7 obtain damages1 restitution1 or other compensation on behalf of residents of the ,state4 7#b7 ,notice and intervention by ,,ftc ,the attorney general of a ,state shall provide prior written notice of any action under paragraph 7#a7 to the ,commission and provide the ,commission with a copy of the complaint in the action1 except in any case in which such prior notice is not feasible1 in which case the attorney general shall serve such notice immediately upon instituting such action4 ,the ,commission shall have the right-- 7,a7 to intervene in the action2 7,b7 upon so intervening1 to be heard on all matters arising therein2 and 7,c7 to file petitions for appeal4 7#c7 ,limitation on ,state action while ,federal action is pending ,if the ,commission has instituted a civil action for violation of section #b7;c7 or #c 7including a rule prescribed under such section71 no ,state attorney general may bring an action under this subsection during the pendency of that action against any defendant named in the complaint of the ,commission for any violation of such section 7including such rule7 alleged in the complaint4 7#d7 ,attorney general defined ,in this subsection1 the term attorney general means1 with respect to a ,state1 the attorney general or chief law enforcement officer of the ,state1 or another official or agency designated by the ,state to bring civil actions on behalf of the ,state or the residents of the ,state4 7c7 ,rulemaking ,the ,commission may prescribe rules under section #eec of title #e1 ,united ,states ,code1 to implement sections #b7;c7 and #c4 7d7 ,preservation of authority of ,commission ,nothing in this ,act shall be construed in any way to limit or affect the authority of the ,commission under any other provision of law4 #e4 ,gambling addiction prevention and treatment 7a7 ,authority ,to address gambling in ,department of ,health and ,human ,services 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#bd72 7#b7 by striking the period at the end of paragraph 7#be7 and inserting 2 and2 and 7#c7 by adding at the end the following3 7#bf7 establish and implement programs for prevention and treatment of gambling addiction4 4 7b7 ,advisory ,committee 7#a7 ,establishment ,the ,secretary may establish a ,gambling ,addiction ,research ,advisory ,committee 7in this paragraph referred to as the ,committee7 within the ,national ,institutes of ,health to coordinate research conducted or supported by the ,department of ,health and ,human ,services on gambling addiction4 7#b7 ,membership ,the ,committee shall include representatives of the ,national ,institute on ,drug ,abuse1 the ,national ,institute of ,mental ,health1 the ,national ,institute on ,alcohol ,abuse and ,alcoholism1 the ,indian ,health ,service1 the ,substance ,abuse and ,mental ,health ,services ,administration1 and the ,centers for ,disease ,control and ,prevention4 7#c7 ,annual report ,the ,committee shall prepare and submit to the ,secretary an annual report on the research described in paragraph 7#a74 7c7 ,surveillance of gambling addiction ,title ,,iii of the ,public ,health ,service ,act is amended by inserting after section #cag,t of such ,act 7#db ,u4,s4,c4 #bdg;b-#bb7 the following3 #cag,u4 ,surveillance of gambling addiction 7a7 ,in general ,the ,secretary1 acting through the ,director of the ,centers for ,disease ,control and ,prevention and in coordination with other appropriate agencies1 shall1 as appropriate-- 7#a7 enhance and expand infrastructure and activities to track the epidemiology of gambling addiction2 and 7#b7 incorporate information obtained through such infrastructure and activities into an integrated surveillance system1 which may consist of or include a registry1 to be known as the ,national ,gambling ,addiction ,surveillance ,system4 7b7 ,research ,the ,secretary shall ensure that the ,national ,gambling ,addiction ,surveillance ,system1 if established1 is designed in a manner that facilitates further research on gambling addiction4 7c7 ,public access ,subject to subsection 7d71 the ,secretary shall ensure that information and analysis in the ,national ,gambling ,addiction ,surveillance ,system1 if established1 are available1 as appropriate1 to the public1 including researchers4 7d7 ,privacy ,the ,secretary shall ensure that information and analysis in the ,national ,gambling ,addiction ,surveillance ,system1 if established1 are made available only to the extent permitted by applicable ,federal and ,state law1 and in a manner that protects personal privacy1 to the extent required by applicable ,federal and ,state privacy law1 at a minimum4 7e7 ,authorization of appropriations ,to carry out this section1 there is authorized to be appropriated #e1jjj1jjj for each of fiscal years #bjah through #bjbb4 4 #f4 ,definitions ,in this ,act3 7#a7 ,amateur sports organization ,the term amateur sports organization means-- 7,a7 a person or governmental entity that sponsors1 organizes1 schedules1 or conducts a competitive game in which one or more amateur athletes participate2 or 7,b7 a league or association of persons or governmental entities described in subparagraph 7,a74 7#b7 ,bet or wager 7,a7 ,in general ,the term bet or wager means the staking or risking by any person of something of value1 including virtual currency and actual or virtual items that can be sold or otherwise exchanged for cash at the gaming facility or elsewhere1 upon the outcome of a contest of others1 a sporting event1 a game subject to chance1 or a game in which the outcomes reflect the relative knowledge and skill of the participants1 upon an agreement or understanding that the person or another person will receive something of value in the event of a certain outcome4 7,b7 ,inclusions ,such term includes the following3 7i7 ,the purchase of a chance or opportunity to win a lottery or other prize4 7ii7 ,any lottery1 sweepstakes1 or other betting1 gambling1 or wagering scheme based1 directly or indirectly 7through the use of geographical references or otherwise71 on one or more competitive games in which amateur or professional athletes participate1 or are intended to participate1 or on one or more performances of such athletes in such games4 7iii7 ,any instructions or information pertaining to the establishment or movement of funds by the bettor or customer in1 to1 or from an account with the business of betting or wagering4 7iv7 ,participation in any fantasy or simulation sports or e-sports game or contest1 including those in which 7if the game or contest involves a team or teams7 no fantasy or simulation sports team is based on the current membership of an actual team that is a member of an amateur sports organization or professional sports organization and including those that meet any of the following conditions3 7,i7 ,all prizes and awards offered to winning participants are established and made known to the participants in advance of the game or contest and their value is not determined by the number of participants or the amount of any fees paid by those participants4 7,,ii7 ,all winning outcomes reflect the relative knowledge and skill of the participants and are determined predominantly by accumulated statistical results of the performance of individuals 7athletes in the case of sports events7 in multiple real-world sporting or other events4 7,,iii7 ,no winning outcome is based-- 7aa7 on the score1 point-spread1 or any performance or performances of any single real-world team or any combination of such teams2 or 7bb7 solely on any single performance of an individual athlete in any single real-world sporting or other event4 7,c7 ,exclusions ,such term does not include the following3 7i7 ,any activity governed by the securities laws 7as defined in section #c7;a7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a777 for the purchase or sale of securities 7as defined in such section74 7ii7 ,any transaction conducted on or subject to the rules of a registered entity or exempt board of trade under the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a et seq474 7iii7 ,any over-the-counter derivative instrument4 7iv7 ,any other transaction that-- 7,i7 is excluded or exempt from regulation under the ,commodity ,exchange ,act2 or 7,,ii7 is exempt from ,state gaming or bucket shop laws under section #ab7;e7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #af7;e77 or section #bh7;a7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;bb7a774 7v7 ,any contract of indemnity or guarantee4 7vi7 ,any contract for insurance4 7vii7 ,any deposit or other transaction with an insured depository institution4 7viii7 ,participation in any game or contest in which participants do not stake or risk anything of value other than-- 7,i7 personal efforts of the participants in playing the game or contest or obtaining access to the internet2 or 7,,ii7 points or credits that the sponsor of the game or contest provides to participants free of charge that can be used or redeemed only for participation in games or contests offered by the sponsor and that cannot be sold or otherwise exchanged for cash at the gaming facility or elsewhere4 7#c7 ,business of betting or wagering ,the term business of betting or wagering does not include the activities of a person who is-- 7,a7 a financial transaction provider1 to the extent such person is acting as such a provider1 except with respect to an activity described in paragraph 7#aj77;,c77ii72 or 7,b7 a provider of an interactive computer service or telecommunications service1 to the extent such person is acting as such a provider1 except with respect to an activity described in paragraph 7#aj77;,c77ii74 7#d7 ,commission ,the term ,commission means the ,federal ,trade ,commission4 7#e7 ,credit2 creditor2 and card issuer ,the terms credit1 creditor1 and card issuer have the meanings given the terms in section #ajc of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afjb74 7#f7 ,electronic fund transfer ,the term electronic fund transfer-- 7,a7 has the meaning given the term in section #ijc of the ,electronic ,fund ,transfer ,act 7#ae ,u4,s4,c4 #afic;a71 except that the term includes transfers that would otherwise be excluded under section #ijc7g77;,e7 of that ,act2 and 7,b7 includes any fund transfer covered by ,article #d;,a of the ,uniform ,commercial ,code1 as in effect in any ,state4 7#g7 ,e-sports ,the term e-sports means a multiplayer video game played competitively for spectators4 7#h7 ,financial institution ,the term financial institution has the meaning given the term in section #ijc of the ,electronic ,fund ,transfer ,act 7#ae ,u4,s4,c4 #afic;a71 except that such term does not include a casino1 sports book1 or other business at or through which a bet or wager may be placed or received4 7#i7 ,financial transaction provider ,the term financial transaction provider means a creditor1 card issuer1 financial institution1 operator of a terminal at which an electronic fund transfer may be initiated1 money transmitting business1 or international1 national1 regional1 or local payment network utilized to effect a credit transaction1 electronic fund transfer1 stored value product transaction1 or money transmitting service1 or a participant in such network1 or other participant in a system utilized by an entity described in this paragraph that could be utilized in connection with1 or to facilitate1 any transaction described in paragraph 7#aj77;,a77iii74 7#aj7 ,gaming activity 7,a7 ,in general ,the term gaming activity means-- 7i7 placing1 receiving1 or otherwise transmitting a bet or wager2 7ii7 transmitting-- 7,i7 information assisting in the placing of a bet or wager2 or 7,,ii7 a wire communication which entitles the recipient to receive money or credit-- 7aa7 as a result of a bet or wager2 or 7bb7 for information assisting in the placing of a bet or wager2 7iii7 the knowing acceptance1 by any person engaged in the business of betting or wagering1 in connection with the placing1 receiving1 or otherwise transmitting of a bet or wager by another person1 of credit or payment of any type2 or 7iv7 sponsoring1 operating1 advertising1 or promoting 7or1 in the case of a governmental entity1 sponsoring1 operating1 advertising1 promoting1 licensing1 or authorizing by law or compact7 a lottery1 sweepstakes1 or other betting1 gambling1 or wagering scheme based1 directly or indirectly 7through the use of geographical references or otherwise71 on one or more competitive games in which amateur or professional athletes participate1 or are intended to participate1 or on one or more performances of such athletes in such games4 7,b7 ,exclusions ,such term does not include any activity or transaction described in paragraph 7#b77;,c7 or1 in the case of a contract or other instrument described in such paragraph1 any activity or transaction relating to such contract or other instrument4 7,c7 ,financial transaction providers and providers of interactive computer service or telecommunications service 7i7 ,generally excluded ,except as provided in clause 7ii71 such term does not include any activity of a person who is-- 7,i7 a financial transaction provider1 to the extent such person is acting as such a provider2 or 7,,ii7 a provider of an interactive computer service or telecommunications service1 to the extent such person is acting as such a provider4 7ii7 ,operation of gaming websites or other facilities ,notwithstanding clause 7i71 such term includes an activity of a financial transaction provider or provider of an interactive computer service or telecommunications service to the extent that such provider has actual knowledge and control of bets or wagers and-- 7,i7 operates1 manages1 supervises1 or directs a website or other facility 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 medium and whether or not the transmissions cross ,state boundaries2 or 7,,ii7 owns or controls1 or is owned or controlled by1 any person who operates1 manages1 supervises1 or directs a website or other facility 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 medium and whether or not the transmissions cross ,state boundaries4 7#aa7 ,gaming facility 7,a7 ,in general ,the term gaming facility means-- 7i7 a facility that permits bets or wagers to be placed in a casino1 on a riverboat1 at a race track1 or in another facility that hosts gaming activity in one physical location2 or 7ii7 a website or other facility 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 medium and whether or not the transmissions cross ,state boundaries4 7,b7 ,exclusions ,such term does not include any facility to the extent such facility is engaged in an activity or transaction that is excluded from the definition of gaming activity by subparagraph 7,b7 or 7,c7 of paragraph 7#aj74 7#ab7 ,governmental entity ,the term governmental entity means a ,state1 a political subdivision of a ,state1 or an entity or organization1 including an entity or organization described in section #d7e7 of the ,indian ,gaming ,regulatory ,act 7#be ,u4,s4,c4 #bgjc7e771 that has governmental authority within the territorial boundaries of the ,united ,states1 including on lands described in section #d7d7 of such ,act 7#be ,u4,s4,c4 #bgjc7d774 7#ac7 ,insured depository institution ,the term insured depository institution-- 7,a7 has the meaning given the term in section #c7;c7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac7;c772 and 7,b7 includes an insured credit union 7as defined in section #aja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb774 7#ad7 ,interactive computer service ,the term interactive computer service has the meaning given such term in section #bcj7;f7 of the ,communications ,act of #aicd 7#dg ,u4,s4,c4 #bcj7;f774 7#ae7 ,money transmitting business and money transmitting service ,the terms money transmitting business and money transmitting service have the meanings given the terms in section #eccj7;d7 of title #ca1 ,united ,states ,code 7determined without regard to any regulations prescribed by the ,secretary of the ,treasury thereunder74 7#af7 ,professional sports organization ,the term professional sports organization means-- 7,a7 a person or governmental entity that sponsors1 organizes1 schedules1 or conducts a competitive game in which one or more professional athletes participate2 or 7,b7 a league or association of persons or governmental entities described in subparagraph 7,a74 7#ag7 ,secretary ,the term ,secretary means the ,secretary of ,health and ,human ,services4 7#ah7 ,state ,the term ,state means each of the several ,states1 the ,district of ,columbia1 each commonwealth1 territory1 or possession of the ,united ,states1 and each federally recognized ,indian ,tribe4 7#ai7 ,telecommunications service ,the term telecommunications service has the meaning given such term in section #c of the ,communications ,act of #aicd 7#dg ,u4,s4,c4 #aec74 #g4 ,effect on other law 7a7 ,no effect on ,state law or ,tribal-,state compacts relating to gambling ,nothing in this ,act shall be construed as altering1 limiting1 or extending any ,state law or ,tribal-,state compact prohibiting1 permitting1 or regulating gambling within the ,united ,states4 7b7 ,no effect on ,indian ,gaming ,regulatory ,act ,nothing in this ,act shall be construed to have any effect on a gaming activity within the scope of the ,indian ,gaming ,regulatory ,act 7#be ,u4,s4,c4 #bgja et seq471 any successor provision of such ,act1 or any ,tribal-,state compact or authority pursuant to such ,act or successor provision4 7c7 ,no effect on ,illegal ,gambling ,business ,act ,nothing in this ,act shall be construed to supersede or otherwise limit section #aiee of title #ah1 ,united ,states ,code 7commonly referred to as the ,illegal ,gambling ,business ,act74 7d7 ,no effect on ,interstate ,horse ,racing ,act ,nothing in this ,act shall be construed to supersede or otherwise limit the ,interstate ,horse ,racing ,act of #aigh 7#ae ,u4,s4,c4 #cjja et seq474 #h4 ,repeal 7a7 ,in general ,chapter #agh of title #bh1 ,united ,states ,code 7commonly referred to as the ,professional and ,amateur ,sports ,protection ,act7 is repealed4 7b7 ,clerical amendment ,the table of chapters for part ,,vi of title #bh1 ,united ,states ,code1 is amended by striking the item relating to chapter #agh4