,,ii #aaith ,,congress #b;d ,session ,s4 #djfj ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #aa1 #bjbf,mr4 ,blumenthal 7for himself and ,mr4 ,kim7 introduced the following bill2 which was read twice and referred to the ,committee on the ,judiciary ,a ,,bill ,to provide national safeguards to prevent abuse and fraud in online prediction markets1 prevent underage use of online prediction markets1 protect consumers1 and return regulatory authorities and oversight of online prediction markets to ,states4 #a4 ,short title ,this ,act may be cited as the ,prediction ,markets ,security and ,integrity ,act of #bjbf4 #b4 ,congressional findings ,congress finds that-- 7#a7 online prediction markets offer services that are substantially the same as betting1 wagering1 gambling1 and sports gambling2 7#b7 foreign online prediction markets have offered to individuals in the ,united ,states unregulated gambling services that violate ,federal and ,state laws2 7#c7 ,state regulators have historically been understood to regulate gambling as a matter of consumer protection and public health2 7#d7 ,state regulators were never intended to be precluded from enforcing ,state gambling laws against online prediction markets2 and 7#e7 in the absence of ,state regulations concerning online prediction markets1 several harms have resulted1 including-- 7,a7 fixing of wagers based on insider information or manipulation of outcomes1 such as proposition bets in sports2 7,b7 the mishandling or misuse of sensitive corporate and ,government information1 such as bets placed on the downfall of ,venezuelan ,president ,nicolas ,maduro prior to his capture by the ,united ,states or military action against ,iran2 7,c7 harm to bettors' well-being as a result of addictive features1 such as bonus funds1 and a lack of safeguards1 such as age restrictions2 and 7,d7 the availability of gambling activities to people as young as #ah years of age in violation of laws of the various ,states4 #c4 ,definitions ,in this ,act3 7#a7 ,amateur athletic competition ,the term amateur athletic competition has the meaning given the term in section #bbjeja of title #cf1 ,united ,states ,code4 7#b7 ,anonymized wagering data ,with respect to a wager accepted by an online prediction market1 the term anonymized wagering data means-- 7,a7 a unique identifier for the transaction and1 if available1 the individual who placed the wager1 except that such identifier shall not include any personally identifiable information of the individual2 7,b7 the amount1 topic1 and type of wager2 7,c7 the date and time at which the wager was accepted2 7,d7 the location at which the wager was placed1 including the internet protocol address1 if applicable2 and 7,e7 the outcome of the wager4 7#c7 ,gambling disorder ,the term gambling disorder means-- 7,a7 gambling disorder1 as the term is used by the ,american ,psychiatric ,association in the publication entitled ,diagnostic and ,statistical ,manual of ,mental ,disorders1 #eth ,edition 7or a successor edition72 7,b7 pathological gambling2 7,c7 gambling addiction2 and 7,d7 compulsive gambling4 7#d7 ,governmental entity ,the term governmental entity means-- 7,a7 a ,state2 7,b7 a political subdivision of a ,state2 and 7,c7 an entity or organization1 including an ,indian ,tribe1 that has governmental authority within the territorial boundaries of the ,united ,states1 including ,indian lands4 7#e7 ,indian lands ,the term ,indian lands has the meaning given the term in section #d of the ,indian ,gaming ,regulatory ,act 7#be ,u4,s4,c4 #bgjc74 7#f7 ,indian ,tribe ,the term ,indian ,tribe has the meaning given the term ,indian tribe in section #d of the ,indian ,gaming ,regulatory ,act 7#be ,u4,s4,c4 #bgjc74 7#g7 ,interstate wagering compact ,the term interstate wagering compact means a compact to offer wagering in accordance with this ,act between-- 7,a7 #b or more ,states with a ,state wagering program2 7,b7 #a or more ,states with a ,state wagering program and #a or more ,indian ,tribes2 or 7,c7 #b or more ,indian ,tribes4 7#h7 ,listing ,the term listing means the listing on an online prediction market of an event that may be the subject of a wager4 7#i7 ,microbet ,the term microbet means a wager placed on an outcome or occurrence within an event that may or may not be related to the ultimate result of the event4 7#aj7 ,national self-exclusion list ,the term national self-exclusion list means the list maintained under section #eed of the ,public ,health ,service ,act1 as added by section #h of this ,act1 in cooperation with ,state regulatory entities1 under section #g7;b77#f77;,a77ii7 of this ,act4 7#aa7 ,official ,the term official means a referee1 umpire1 judge1 reviewer1 or any other individual authorized to administer the rules of a sporting event4 7#ab7 ,online prediction market ,the term online prediction market means an online platform that allows agreements1 contracts1 transactions1 or swaps between users over the outcome of non-financial events1 such as sports and elections4 7#ac7 ,proposition bet ,the term proposition bet means a side wager on a part of an event that does not concern the final outcome of the event4 7#ad7 ,reasonable lender standard ,the term reasonable lender standard means application of underwriting criteria that would be applied by a lender that is an insured depository institution 7as defined in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac77 for an unsecured loan extended to a consumer4 7#ae7 ,sporting event ,the term sporting event means any athletic competition4 7#af7 ,sports organization ,the term sports organization means-- 7,a7 a person or governmental entity that-- 7i7 sponsors1 organizes1 schedules1 or conducts a sporting event2 and 7ii7 with respect to the sporting event and the participants in the sporting event-- 7,i7 prescribes final rules2 and 7,,ii7 enforces a code of conduct2 and 7,b7 a league or association of #a or more persons or governmental entities described in subparagraph 7,a74 7#ag7 ,state ,the term ,state means-- 7,a7 a ,state2 7,b7 the ,district of ,columbia2 and 7,c7 any commonwealth1 territory1 or possession of the ,united ,states4 7#ah7 ,state regulatory entity ,the term ,state regulatory entity means the governmental entity-- 7,a7 established or designated by a wagering opt-in ,state under section #f7;a77#b77;,a77ii72 and 7,b7 responsible1 solely or in coordination with #a or more other governmental entities1 for the regulation of wagering in the applicable wagering opt-in ,state4 7#ai7 ,state wagering program ,the term ,state wagering program means a program administered and overseen by a ,state pursuant to an application approved by the ,attorney ,general under subsection 7b7 or 7e7 of section #f4 7#bj7 ,suspicious transaction ,the term suspicious transaction means a transaction or an arrangement that an operator of an online prediction market knows or has reason to know1 as determined by a director1 officer1 employee1 or agent of the online prediction market1 is or would be if completed-- 7,a7 a violation of1 or part of a plan to violate or evade1 any ,federal1 ,state1 or local law 7including any regulation72 or 7,b7 wagering by or on behalf of an individual described in subparagraph 7,c71 7,d71 or 7,e7 of section #g7;b77#d74 7#ba7 ,suspicious transaction report ,the term suspicious transaction report means a report submitted to a ,state regulatory entity or a sports organization under section #g7;b77#ac74 7#bb7 ,wager 7,a7 ,in general ,except as provided in subparagraph 7,c71 the term wager means the staking or risking by any person of something of value upon the outcome of an event1 including the outcome of any portion or aspect thereof1 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 ,inclusion ,with respect to an event1 the term wager includes-- 7i7 a straight bet2 7ii7 a teaser2 7iii7 a variation of a teaser2 7iv7 a parlay2 7v7 a total or over-under2 7vi7 a moneyline2 7vii7 a betting pool2 7viii7 exchange wagering2 7ix7 in-game wagering1 including in-game wagering on-- 7,i7 a final or interim game score2 7,,ii7 statistics2 or 7,,iii7 a discrete in-game event2 7x7 a sports lottery2 and 7xi7 a proposition bet4 7,c7 ,exceptions ,the term wager does not include-- 7i7 any activity excluded from the definition of the term bet or wager under section #ecfb of title #ca1 ,united ,states ,code2 or 7ii7 any activity that does not violate a provision of the ,interstate ,horseracing ,act of #aigh 7#ae ,u4,s4,c4 #cjja et seq474 7#bc7 ,wagering ,the term wagering means the acceptance of a wager by an online prediction market4 7#bd7 ,wagering opt-in ,state ,the term wagering opt-in ,state means a ,state that administers a ,state wagering program4 #d4 ,protecting consumers from fraud and manipulation 7a7 ,prevention of insider trading and conflicts of interest ,an individual or operator of an online prediction market shall not-- 7#a7 use material1 nonpublic information for private gain in wagering on an online prediction market2 or 7#b7 create or participate in listings or wagers on an online prediction market that would present a conflict of interest4 7b7 ,prevention of manipulation ,an individual or operator of an online prediction market shall not engage in manipulation and deceptive practices that predetermine the outcome or otherwise materially interfere with the integrity and execution of listings on an online prediction market4 7c7 ,restricting fraudulent listings ,an operator of an online prediction market shall not offer listings that-- 7#a7 are susceptible to manipulation or fraudulent activities2 7#b7 relate to war1 military action1 or death2 7#c7 violate ,state or ,federal law2 or 7#d7 relate to other matters that are contrary to the public interest as determined by the ,attorney ,general and established under the rules issued pursuant to subsection 7e74 7d7 ,ensuring clear resolution of wagers ,each operator of an online prediction market shall-- 7#a7 ensure all listings clearly and conspicuously state the conditions under which the resolution of any wager will be decided2 7#b7 be responsible for determining when a listing has been resolved2 and 7#c7 promptly remove listings that violate the provisions of this section4 7e7 ,required rules of online prediction markets ,each operator of an online prediction market shall-- 7#a7 develop and publish rules for use of the online prediction market that prohibit any use of the online prediction market-- 7,a7 in violation of subsections 7a7 and 7b72 or 7,b7 that would otherwise constitute a prohibited transaction described in section #d;c of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #f;c72 and 7#b7 enforce the rules developed under paragraph 7#a7 of this subsection with respect to the users of the online prediction market4 7f7 ,rulemaking ,not later than #ahj days after the date of enactment of this ,act1 the ,attorney ,general shall issue rules to implement the provisions of this section1 including defining the term material1 nonpublic information for purposes of subsection 7a77#a74 #e4 ,consumer safeguards and stopping predatory tactics ,an online prediction market may not operate in a ,state unless expressly authorized under a ,state wagering program that has been approved by the ,attorney ,general under section #f7;b77#a74 #f4 ,state wagering program 7a7 ,initial ,application 7#a7 ,in general ,to request approval to administer a ,state wagering program1 a ,state shall submit an application to the ,attorney ,general at such time1 in such manner1 and accompanied by such information as the ,attorney ,general may require4 7#b7 ,contents ,an application under paragraph 7#a7 shall include-- 7,a7 a full and complete description of the ,state wagering program the ,state proposes to administer under ,state law1 including-- 7i7 each applicable ,state law relating to wagering2 and 7ii7 an identification of the ,state regulatory entity2 and 7,b7 an assurance from the attorney general or chief legal officer of the ,state that the laws of the ,state provide adequate authority to carry out the proposed ,state wagering program4 7b7 ,approval by ,attorney ,general 7#a7 ,in general ,not later than #ahj days after the date on which the ,attorney ,general receives a complete application under this section1 the ,attorney ,general shall approve the application unless the ,attorney ,general determines that the proposed ,state wagering program does not meet the standards set forth in section #g4 7#b7 ,denial of application ,a decision of the ,attorney ,general to deny an application submitted under this section shall-- 7,a7 be made in writing2 and 7,b7 specify the #a or more standards under section #g that are not satisfied by the proposed ,state wagering program4 7c7 ,notice of material changes ,in the case of a material change to a ,state law relating to wagering1 the ,state regulatory entity1 or other information included in an application submitted pursuant to subsection 7a7 or 7e71 not later than #cj days after the date on which the change is made1 the ,state shall submit to the ,attorney ,general a notice of such change4 7d7 ,duration ,a ,state wagering program shall be valid for a fixed #c-year period beginning on the date on which the ,attorney ,general approves the application of the applicable ,state under subsection 7a7 or 7e74 7e7 ,renewal application and approval ,not later than the date on which the #c-year period referred to in subsection 7d7 ends1 a ,state seeking to renew the approval of the ,state wagering program may submit to the ,attorney ,general a renewal application that-- 7#a7 includes the information described in subsection 7a72 and 7#b7 shall be subject to the approval process under subsection 7b74 7f7 ,revocation and review 7#a7 ,emergency revocation of approval ,the ,attorney ,general shall promulgate regulations that provide procedures by which the ,attorney ,general may revoke the approval of a ,state to administer a ,state wagering program before the date on which the #c-year term described in subsection 7d7 expires if the ,attorney ,general finds that the wagering program does not meet #a or more standards set forth in section #g4 7#b7 ,administrative review ,the ,attorney ,general shall promulgate regulations that provide procedures by which a ,state may seek administrative review of any decision by the ,attorney ,general-- 7,a7 to deny an application under subsection 7b77#b72 7,b7 to deny a renewal application under subsection 7e72 or 7,c7 to revoke an approval under paragraph 7#a7 of this subsection4 #g4 ,state wagering program standards 7a7 ,in general ,the ,attorney ,general shall approve an application under section #f unless the ,attorney ,general determines that the proposed ,state wagering program does not meet the standards set forth in subsection 7b7 of this section4 7b7 ,standards for ,state wagering programs ,a ,state wagering program shall meet each of the following standards3 7#a7 ,state regulatory entity ,establish or designate a public entity in the applicable ,state as the ,state regulatory entity for the purposes of regulating online prediction markets and enforcing wagering laws in the ,state4 7#b7 ,permissible wagering 7,a7 ,online prediction market wagering 7i7 ,in general ,with respect to any authorization of wagering on an online prediction market1 provide that such wagering1 as available1 is available only to-- 7,i7 individuals located in the ,state2 or 7,,ii7 in the case of an interstate wagering compact approved by the ,attorney ,general1 individuals located in ,states and on ,indian lands of ,indian ,tribes that are party to the compact4 7ii7 ,location verification ,include location verification requirements reasonably designed to prevent an individual from placing a wager on an online prediction market from a location other than a location described in clause 7i74 7,b7 ,wager approval 7i7 ,in general ,provide that an operator of an online prediction market shall not accept a wager unless such wager or class of wagers is expressly approved by the ,state regulatory entity4 7ii7 ,approval criteria ,direct the ,state regulatory entity to establish criteria for decisions with respect to the approval of a wager or a class of wagers1 such as whether the outcome of the event or contingency on which the wager is placed is-- 7,i7 verifiable2 7,,ii7 generated by a reliable and independent process2 and 7,,iii7 unlikely to be affected by any wager placed4 7,c7 ,prohibition on amateur or intercollegiate proposition bets ,prohibit the ,state regulatory entity from approving1 or an operator of an online prediction market from accepting1 a proposition bet on-- 7i7 any amateur athletic competition2 or 7ii7 any intercollegiate sport 7as defined in section #b of the ,sports ,agent ,responsibility and ,trust ,act 7#ae ,u4,s4,c4 #ghja774 7,d7 ,prohibition of wagering on sporting events that have commenced ,prohibit the ,state regulatory entity from approving1 or an operator of an online prediction market from accepting1 a wager on any sporting event once such event has commenced4 7,e7 ,prohibition on reload bonuses ,prohibit the ,state regulatory entity from approving1 or an operator of an online prediction market from encouraging1 customers to make deposits by offering financial incentives1 including bonus funds or gambling credits when the account of a customer approaches or reaches a zero balance4 7,f7 ,prohibition on tier programs ,prohibit the ,state regulatory entity from approving1 or an operator of an online prediction market from providing1 anything of value that is greater than #e as a form of reward or incentive linked to the level1 amount1 frequency1 scope1 pace1 duration1 or rate or gambling activity of a customer4 7,g7 ,prohibition on ,,vip programs ,prohibit the ,state regulatory entity from approving1 or an operator of an online prediction market from providing-- 7i7 compensation in any form that is directly or indirectly connected to the deposits1 gambling activity1 gambling wins1 gambling losses1 or the level1 amount1 frequency1 scope1 pace1 duration1 or rate of gambling activity of a customer2 or 7ii7 cash1 gambling credit1 prizes1 gifts1 merchandise1 event tickets or passes1 or property 7real or personal7 connected to the deposits1 gambling activity1 gambling wins1 gambling losses1 or level1 amount1 frequency1 scope1 pace1 duration1 or rate of gambling activity of a customer4 7#c7 ,restrictions on wagering to protect contest integrity 7,a7 ,definition of necessary to maintain contest integrity ,in this paragraph1 the term necessary to maintain contest integrity means that1 in the absence of a restriction1 there is a reasonably foreseeable risk that the outcome of the event or contingency on which the wager is placed would be affected by the wager4 7,b7 ,contest integrity ,prohibit an online prediction market from accepting a wager in violation of a notice of restriction received by the online prediction market under subparagraph 7,e77i74 7,c7 ,request to restrict wagering 7i7 ,in general ,with respect to an event sponsored1 organized1 or conducted by any person1 permit the person to submit to the ,state regulatory entity a request to restrict1 limit1 or exclude wagers on #a or more events if the applicable person determines that such restriction is necessary to maintain contest integrity4 7ii7 ,deadlines for submission ,provide that the ,state regulatory entity shall establish reasonable deadlines for the submission of a request under clause 7i7 in advance of the applicable event4 7,d7 ,determination by the ,state regulatory entity ,provide that the ,state regulatory entity shall promptly-- 7i7 approve a request described in subparagraph 7,c77i7 unless the ,state regulatory entity determines1 considering any information provided by the person that submitted the request and any other relevant information1 that a restriction is not necessary to maintain contest integrity2 7ii7 provide a written explanation of a determination under clause 7i7 to approve or deny a request2 7iii7 make such written explanation available to the public2 and 7iv7 provide a process by which the person that submitted the request may seek review of such determination4 7,e7 ,notice of restriction ,provide that the ,state regulatory entity shall establish a process to-- 7i7 provide to operators of online prediction markets prompt notice of any restriction approved by the ,state regulatory entity2 and 7ii7 make such notice publicly available4 7#d7 ,prevention of wagering by prohibited individuals ,prohibit an online prediction market from accepting wagers from any-- 7,a7 individual younger than #ba years of age2 7,b7 individual on the national self-exclusion list2 7,c7 athlete1 coach1 official1 or employee of a sports organization or any club or team of a sports organization1 with respect to a sporting event sponsored1 organized1 or conducted by the sports organization2 7,d7 employee of a player or an official union of a sports organization1 with respect to a sporting event sponsored1 organized1 or conducted by the sports organization2 7,e7 individual who1 with respect to a sporting event sponsored1 organized1 or conducted by a sports organization1 is-- 7i7 credentialed or accredited by the sports organization2 and 7ii7 prohibited from placing a wager by the terms of such credential or accreditation2 or 7,f7 individual convicted of an offense under subsection 7a7 of section #bbd of title #ah1 ,united ,states ,code4 7#e7 ,authorized data 7,a7 ,result of a wager ,provide that an operator of an online prediction market shall determine the result of a wager only with data that is obtained from a source that the ,state regulatory entity has-- 7i7 found to provide-- 7,i7 substantial speed1 accuracy1 and consistency2 and 7,,ii7 only data that is-- 7aa7 legally obtained2 and 7bb7 in full compliance with the terms of any applicable contract or license2 7ii7 expressly authorized to provide such data to online prediction markets2 and 7iii7 identified in the application of the ,state regulatory entity under section #f4 7,b7 ,other purposes ,provide that the statistics1 result1 outcome1 or other data used by an operator of an online prediction market for a purpose other than to determine the result of a wager shall be in the public domain or otherwise legally obtained4 7#f7 ,consumer protections 7,a7 ,self-exclusion 7i7 ,state self-exclusion list ,provide a process by which an individual may restrict himself or herself from placing a wager with an operator of an online prediction market located in the ,state1 including by imposing wager limits4 7ii7 ,national self-exclusion list ,provide1 through the ,state regulatory entity acting in cooperation with the ,assistant ,secretary for ,mental ,health and ,substance ,use1 a process by which an individual may restrict himself or herself from placing a wager with an operator of an online prediction market located in any wagering opt-in ,state1 including by imposing wager limits and placing himself or herself on the national self-exclusion list4 7iii7 ,reasonable steps required ,provide that an operator of an online prediction market may not accept a wager by an individual who is-- 7,i7 described in clause 7i72 or 7,,ii7 included on the national self-exclusion list4 7,b7 ,withdrawal restrictions ,prohibit an operator of an online prediction market from-- 7i7 requiring an individual engaged in wagering to participate in a publicity or an advertising activity of the online prediction market as a condition of withdrawal of the winnings of the individual2 and 7ii7 imposing on any individual engaged in wagering-- 7,i7 a minimum or maximum withdrawal limit for the account of the individual2 7,,ii7 any restriction on the right of the individual to make a withdrawal from the account of the individual based on the extent of the wagering by the individual2 7,,iii7 an unreasonable deadline for the provision of information relating to the identity of the individual as a condition of withdrawal from the account of the individual2 or 7,,iv7 a dormancy charge for an account of the individual that is not used to place a wager4 7,c7 ,disclosure 7i7 ,restrictions or conditions ,provide that an operator of an online prediction market shall provide an individual with adequate and clear information relating to any applicable restriction or condition before the individual opens an account with the online prediction market4 7ii7 ,bonuses offered ,provide that an operator of an online prediction market shall provide to an individual engaged in wagering clear1 concise1 and unambiguous information relating to any bonus offered1 including-- 7,i7 the terms and conditions for awarding1 receiving1 or withdrawal of the bonus2 and 7,,ii7 a description of any and all wagering requirements4 7iii7 ,public availability ,provide that the information described in clauses 7i7 and 7ii7 be available to the public4 7iv7 ,actual odds ,provide that an operator of an online prediction market shall-- 7,i7 before accepting a wager1 provide an individual with adequate and clear information on the actual odds of winning a wager1 as calculated by the operator of the online prediction market2 and 7,,ii7 provide an individual placing a wager with an opportunity to cancel the wager without any cost or penalty1 and provide information to the individual regarding such opportunity4 7,d7 ,treatment and education funding ,provide that an operator of an online prediction market shall allocate an appropriate percentage of the revenue from wagering to-- 7i7 treatment for gambling disorder2 and 7ii7 education on responsible gaming4 7,e7 ,reserve requirement ,provide that an operator of an online prediction market shall maintain a reserve in an amount not less than the sum of-- 7i7 the amounts held by the operator of the online prediction market for the account of patrons2 7ii7 the amounts accepted by the operator of the online prediction market as wagers on contingencies the outcomes of which have not been determined2 and 7iii7 the amounts owed but unpaid by the operator of the online prediction market on winning wagers during the period for honoring winning wagers established by ,state law or the operator of the online prediction market4 7,f7 ,affordability protections ,provide that an operator of an online prediction market-- 7i7 may not accept more than #e deposits from an individual during a #bd-;hour period2 7ii7 may not accept deposits made using a credit card2 and 7iii7 shall be required1 before accepting wagers from an individual in an amount that is more than #a1jjj during a #bd-;hour period or #aj1jjj during a #cj-;day period1 to conduct an affordability check which shall be satisfied by #a or both of the following ways3 7,i7 ,verification that the proposed deposit is not greater than #cj percent of the monthly income of the individual4 7,,ii7 ,verification through a reasonable lender standard based on issuance of an unsecured loan for the proposed deposit through methods normally used by consumer lenders4 7,g7 ,artificial intelligence restriction ,provide that an operator of an online prediction market may not use artificial intelligence to-- 7i7 track the wagers of an individual2 7ii7 create an offer or promotion targeting a specific individual2 or 7iii7 create a gambling product1 such as a proposition bet or a microbet4 7#g7 ,advertising ,provide that advertisements for an online prediction market-- 7,a7 shall-- 7i7 disclose the identity of the online prediction market2 and 7ii7 provide information about how to access resources relating to gambling addiction2 7,b7 shall not recklessly or purposefully target-- 7i7 problem gamblers2 7ii7 individuals suffering from gambling disorder or individuals who have placed themselves on a self-exclusion list2 or 7iii7 individuals who are ineligible to place a wager1 including individuals younger than #ba years of age 7including through the placement of advertisements in locations where underage users are most prominent72 7,c7 may not be broadcast-- 7i7 between the hours of #h3jj a4m4 and #aj3jj p4m4 local time2 or 7ii7 during a live broadcast of a sporting event2 and 7,d7 may not include-- 7i7 odds boosts or similar offers1 including advertising that contains the phrase bonus1 no sweat1 bonus bet1 or any other similar term2 or 7ii7 any information on how to place a wager or how wagers work4 7#h7 ,licensing requirement 7,a7 ,in general ,provide that an operator of an online prediction market located in the ,state shall be licensed by the ,state regulatory entity4 7,b7 ,suitability for licensing 7i7 ,in general ,provide that before granting a license to an online prediction market1 the ,state regulatory entity shall make a determination1 based on a completed background check and investigation1 with respect to whether the prospective online prediction market and any person considered to be in control of the prospective online prediction market is suitable for license in accordance with suitability standards established by the ,state regulatory entity4 7ii7 ,associates of applicants ,provide that if a prospective online prediction market is a corporation1 partnership1 or other business entity1 a background check and investigation shall occur with respect to-- 7,i7 the president or other chief executive of the corporation1 partnership1 or other business entity2 and 7,,ii7 any other partner or senior executive and director of the corporation1 partnership1 or other business entity1 as determined by the ,state regulatory entity4 7iii7 ,background check and investigation ,establish standards and procedures for conducting the background checks and investigations described in this subparagraph4 7,c7 ,unsuitability for licensing ,with respect to the suitability standards under subparagraph 7,b77i71 provide that a prospective online prediction market shall not be determined to be suitable for licensing as an online prediction market if the operator of the prospective online prediction market-- 7i7 has failed to provide information and documentary material for a determination of suitability for licensing as an online prediction market2 7ii7 has supplied information which is untrue or misleading as to a material fact pertaining to any such determination2 7iii7 has been convicted of an offense punishable by imprisonment of more than #a year2 7iv7 is delinquent in-- 7,i7 filing any applicable ,federal or ,state tax returns2 or 7,,ii7 the payment of any taxes1 penalties1 additions to tax1 or interest owed to the ,united ,states or a ,state2 7v7 on or after ,october #ac1 #bjjf-- 7,i7 has knowingly participated in1 or should have known the operator of the prospective online prediction market was participating in1 an illegal internet gambling activity1 including-- 7aa7 taking an illegal internet wager2 7bb7 payment of winnings on an illegal internet wager2 7cc7 promotion through advertising of an illegal internet gambling website or service2 or 7dd7 collection of any payment on behalf of an entity operating an illegal internet gambling website2 or 7,,ii7 has knowingly been owned1 operated1 managed1 or employed by1 or should have known the prospective online prediction market was owned1 operated1 managed1 or employed by1 any person who was knowingly participating in1 or should have known the person was participating in1 an illegal internet gambling activity1 including an activity described in items 7aa7 through 7dd7 of subclause 7,i72 7vi7 has-- 7,i7 received any assistance1 financial or otherwise1 from a person who has1 before the date of enactment of this ,act1 knowingly accepted wagers from any other person who is physically present in the ,united ,states in violation of ,federal or ,state law2 or 7,,ii7 provided any assistance1 financial or otherwise1 to a person who has1 before the date of enactment of this ,act1 knowingly accepted wagers from any other person who is physically present in the ,united ,states in violation of ,federal or ,state law2 7vii7 with respect to any other entity that has accepted a wager from any individual in violation of ,united ,states law1 has purchased or otherwise obtained-- 7,i7 such entity2 7,,ii7 a list of the customers of such entity2 or 7,,iii7 any other part of the equipment or operations of such entity2 7viii7 fails to certify in writing1 under penalty of perjury1 that the applicant or other such person1 and all affiliated business entities 7including all entities under common control71 during the entire history of such applicant or other such person and all affiliated business entities-- 7,i7 have not committed an intentional felony violation of ,federal or ,state wagering law2 and 7,,ii7 have used diligence to prevent any ,united ,states person from placing a wager on an internet site in violation of ,federal or ,state wagering laws2 or 7ix7 operates an online prediction market or other wagering service outside the ,united ,states that has failed to prevent any ,united ,states person from placing a wager that does not comply with ,federal or ,state wagering laws4 7,d7 ,revocation and suspension ,establish standards and procedures for suspending or revoking the license of an operator of an online prediction market4 7#i7 ,employee background checks ,provide that an operator of an online prediction market-- 7,a7 shall ensure that each existing and newly hired employee or contractor of the online prediction market undergo an annual criminal history background check2 and 7,b7 shall not employ or enter into a contract with any individual who has been convicted of a ,federal or ,state crime relating to wagering4 7#aj7 ,recordkeeping requirements 7,a7 ,in general ,with respect to each wager accepted by an operator of an online prediction market or attempted to be placed by an individual with an operator of an online prediction market1 provide that the operator of the online prediction market shall secure and maintain a record of the following3 7i7 ,the name1 permanent address1 date of birth1 and social security number or passport number of the individual who placed1 or attempted to place1 the wager1 which the operator of the online prediction market shall verify in accordance with the requirements for verification of identity in parts #ajaj4cab and #ajba4cab of title #ca1 ,code of ,federal ,regulations 7or any successor regulation74 7ii7 ,the amount and type of the wager4 7iii7 ,the date and time at which the wager was placed or attempted to be placed4 7iv7 ,the location at which the wager was placed or attempted to be placed1 including the internet protocol address1 if applicable4 7v7 ,the outcome of the wager4 7,b7 ,records relating to suspicious transactions ,provide that1 in addition to the records required to be maintained pursuant paragraph 7,a71 an operator of an online prediction market shall be required to maintain any other records relating to a suspicious transaction1 including video recordings1 in the possession1 custody1 or control of the operator of the online prediction market4 7,c7 ,duration of recordkeeping obligation ,provide that an operator of an online prediction market shall be required to maintain each record required under this paragraph for not fewer than #f years after the date on which the record is created4 7#aa7 ,data security ,provide that an operator of an online prediction market and the ,state regulatory entity shall take reasonable steps to prevent unauthorized access to1 or dissemination of1 wagering and customer data4 7#ab7 ,real-time information sharing ,provide that an operator of an online prediction market shall provide to the ,state regulatory entity and the ,attorney ,general anonymized wagering data in real-time or as soon as practicable1 but not later than #bd hours1 after the time at which a wager is accepted by the operator of the online prediction market4 7#ac7 ,suspicious transaction reporting 7,a7 ,reporting to ,state regulatory entity ,provide that each operator of an online prediction market located in the ,state shall promptly report the information described in paragraph 7#aj77;,a7 for any suspicious transaction to the ,state regulatory entity1 in such manner and accompanied by such additional information as the ,state regulatory entity may require4 7,b7 ,reporting to sports organizations 7i7 ,in general ,subject to clause 7ii71 provide that an operator of an online prediction market shall simultaneously transmit to any applicable sports organization1 and any component of the ,department of ,justice or other ,federal law enforcement entity designated by the ,attorney ,general to receive such reports1 any suspicious transaction report submitted to a ,state regulatory entity under subparagraph 7,a74 7ii7 ,personally identifiable information 7,i7 ,in general ,except as provided in subclause 7,,ii71 a suspicious transaction report submitted to a sports organization shall not contain any personally identifiable information relating to any individual who placed1 or attempted to place1 a wager4 7,,ii7 ,exception ,a suspicious transaction report submitted to a sports organization shall include any available personally identifiable information relating to an individual described in subparagraph 7,c71 7,d71 or 7,e7 of paragraph 7#d74 7#ad7 ,monitoring and enforcement 7,a7 ,in general ,provide that the ,state regulatory entity1 in consultation with law enforcement1 shall develop and implement a strategy to enforce the wagering laws of the ,state4 7,b7 ,authority to monitor and enforcement ,provide adequate authority to the ,state regulatory entity and law enforcement1 as appropriate1 to monitor compliance with and enforce the wagering laws of the ,state1 including-- 7i7 the authority and responsibility to conduct periodic audits and inspect the books and records of each online prediction market located or operating in the ,state2 and 7ii7 a requirement that the ,state regulatory entity shall refer evidence of potential criminal violations to the appropriate law enforcement entity4 7#ae7 ,cooperation with investigations 7,a7 ,online prediction markets ,provide that any operator of an online prediction market located or operating in the ,state shall cooperate with any lawful investigation conducted by-- 7i7 the ,state regulatory entity2 7ii7 ,federal or ,state law enforcement2 or 7iii7 a sports organization1 with respect to a wager-- 7,i7 on a sporting event sponsored1 organized1 or conducted by the sports organization2 7,,ii7 placed by or on behalf of an individual described in subparagraph 7,c71 7,d71 or 7,e7 of paragraph 7#d72 and 7,,iii7 accepted by the operator of the online prediction market4 7,b7 ,state regulatory entity ,provide that the ,state regulatory entity shall cooperate with any lawful investigation conducted by-- 7i7 ,federal or ,state law enforcement2 or 7ii7 a sports organization1 with respect to a wager-- 7,i7 on a sporting event sponsored1 organized1 or conducted by the sports organization2 and 7,,ii7 accepted by an online prediction market located or operating in the ,state4 7#af7 ,internal controls 7,a7 ,in general ,provide that each operator of an online prediction market shall devise and maintain a system of internal controls sufficient to provide reasonable assurances that wagers are accepted in accordance with all applicable laws1 regulations1 and policies4 7,b7 ,minimum standards ,provide that the ,state regulatory entity shall adopt and publish minimum standards for internal control procedures4 7,c7 ,report ,provide that each operator of an online prediction market shall submit to the ,state regulatory entity not less frequently than annually the written system of internal controls of the online prediction market4 7,d7 ,audit ,provide that system of internal controls of an online prediction market shall be evaluated on a periodic basis1 but not less frequently than every #c years1 by the ,state regulatory entity or an independent third-party auditor4 #h4 ,national self-exclusion list ,part ,d of title ,v of the ,public ,health ,service ,act 7#db ,u4,s4,c4 #bij;dd et seq47 is amended by adding at the end the following3 #eed4 ,national self-exclusion list 7a7 ,in general ,in cooperation with ,state regulatory entities1 the ,secretary shall maintain and administer-- 7#a7 a list 7to be known as the national self-exclusion list7 of individuals who1 by placing themselves on the list1 restrict themselves from placing a wager with an operator of an online prediction market located in any wagering opt-in ,state1 including by imposing wager limits2 and 7#b7 a process by which an individual may add or remove himself or herself from the national self-exclusion list4 7b7 ,definitions ,in this section1 the terms online prediction market1 wager1 and wagering opt-in ,state have the meanings given to such terms in section #c of the ,prediction ,markets ,security and ,integrity ,act of #bjbf4 4 #i4 ,preventing minors from gambling and ensuring compliance 7a7 ,prohibition ,an operator of an online prediction market may not allow any individual younger than #ba years of age to register to use the online prediction market or engage in any wager using the online prediction market4 7b7 ,age1 identity1 and location verification ,each operator of an online prediction market shall-- 7#a7 establish and maintain a program to identify the full name and location and establish the age of each user of the online prediction market2 7#b7 ensure that-- 7,a7 each new account on the online prediction market is verified under the program established under paragraph 7#a72 and 7,b7 each existing account on the online prediction market may not be used until verified under the program established under paragraph 7#a72 7#c7 ensure that individuals who attempt to register for an online prediction market are not otherwise restricted from placing wagers1 such as due to economic sanctions1 self-exclusion lists1 or conflict of interest rules promulgated by the ,department of ,justice2 and 7#d7 ensure that1 in the event that a user of the online prediction market changes locations to a different ,state1 the operator of the online prediction market complies with the regulations of the ,state the user is located in4 7c7 ,ban on advertising to individuals younger than #ba years of age ,an operator of an online prediction market may not-- 7#a7 advertise to any individual younger than #ba years of age2 7#b7 use branding that would target any individual younger than #ba years of age2 or 7#c7 place ads in online or physical locations where the majority of viewers or participants would be presumed to be younger than #ba years of age4 #aj4 ,enforcement 7a7 ,powers of the ,attorney ,general 7#a7 ,civil action ,the ,attorney ,general may bring a civil action for injunctive relief in an appropriate district court of the ,united ,states against any person who violates this ,act or any regulation promulgated under this ,act4 7#b7 ,criminal penalty ,any person who violates this ,act or any regulation promulgated under this ,act shall be fined not less than #ej1jjj per violation1 imprisoned for not more than #b years1 or both4 7#c7 ,authority preserved ,nothing in this section shall be construed to limit the authority of the ,attorney ,general under any other provision of law4 7b7 ,enforcement by ,state attorneys general 7#a7 ,civil action ,in any case in which an attorney general of a ,state has reason to believe that an interest of the residents of that ,state has been or is threatened or adversely affected by the violation of this ,act or any regulation promulgated under this ,act by any operator of an online prediction market1 the attorney general of the ,state may1 as parens patriae1 bring a civil action on behalf of the residents of the ,state in an appropriate district court of the ,united ,states to enjoin such violation4 7#b7 ,rights of the ,attorney ,general 7,a7 ,notice to ,attorney ,general 7i7 ,in general ,except as provided in clause 7iii71 the attorney general of a ,state shall notify the ,attorney ,general in writing that the attorney general of the ,state intends to bring a civil action under paragraph 7#a7 not later than #aj days before initiating the civil action4 7ii7 ,contents ,the notification required under clause 7i7 with respect to a civil action shall include a copy of the complaint to be filed to initiate the civil action4 7iii7 ,exception ,if it is not feasible for the attorney general of a ,state to provide the notification required by clause 7i7 before initiating an action under paragraph 7#a71 the attorney general of the ,state shall notify the ,attorney ,general immediately upon instituting the civil action4 7,b7 ,intervention by the ,attorney ,general ,the ,attorney ,general may-- 7i7 intervene in any action brought by the attorney general of a ,state under paragraph 7#a72 and 7ii7 upon intervening under clause 7i71 be heard on all matters arising in the civil action and file petitions for appeal of a decision in the action4 7c7 ,limitation on ,state action while ,federal action is pending ,if the ,attorney ,general institutes an action under subsection 7a7 with respect to a violation of this ,act or any regulation promulgated under this ,act1 a ,state may not1 during the pendency of that action1 institute an action under subsection 7b7 against any defendant named in the complaint in the action instituted by the ,attorney ,general based on the same set of facts giving rise to the violation with respect to which the ,attorney ,general instituted the action4 #aa4 ,preserving ,state regulations and consumer protections 7a7 ,prohibition relating to event contracts under the ,commodity ,exchange ,act ,section #e;c of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #g;a-#b7 is amended by inserting after subsection 7c7 the following3 7d7 ,prohibition on online prediction markets listing event contracts ,an agreement1 contract1 transaction1 or swap in an excluded commodity that is based upon an occurrence1 extent of an occurrence1 or contingency shall not be listed or made available for clearing or trading on or through an online prediction market 7as defined in section #c of the ,prediction ,markets ,security and ,integrity ,act of #bjbf74 4 7b7 ,no preemption ,nothing in this ,act preempts or limits the authority of a ,state or an ,indian ,tribe to enact1 adopt1 promulgate1 or enforce any law1 rule1 regulation1 or other measure with respect to online prediction markets that is in addition to1 or more stringent than1 the requirements of this ,act1 including a law1 rule1 regulation1 or other measure that prohibits an online prediction market from operating in the ,state or ,tribal jurisdiction4 #ab4 ,severability ,if a provision of this ,act1 an amendment made by this ,act1 a regulation promulgated under this ,act or under an amendment made by this ,act1 or the application of any such provision1 amendment1 or regulation to any person or circumstance1 is held to be invalid1 the remaining provisions of this ,act1 amendments made by this ,act1 regulations promulgated under this ,act or under an amendment made by this ,act1 or the application of such provisions1 amendments1 and regulations to any person or circumstance-- 7#a7 shall not be affected by the invalidity2 and 7#b7 shall continue to be enforced to the maximum extent practicable4