Sec. 112. Cheating and other fraud

635 words·~3 min read·/bill/113/hr/2282/ih/section-112

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

No person initiating, receiving, or otherwise making a bet or wager with a licensee, or sending, receiving, or inviting information assisting with a bet or wager with a licensee shall knowingly violate, attempt to violate, 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 title. Except as provided in paragraph (3), no person initiating, receiving, or otherwise making a bet or wager with a licensee, or sending, receiving, or inviting information assisting with a bet or wager with a licensee shall knowingly use, possess, or assist another in the use of, an electronic, electrical, or mechanical device or software or other program or tool which is designed, constructed, or programmed specifically for use in obtaining an advantage in any game authorized under this title, where such advantage is prohibited or otherwise violates the rules of play established by the licensee.

It shall not be a violation of this subsection for a licensee, its agents, a qualified body, or its agents to use or possess a device described in the preceding sentence if— such use or possession is solely for purposes of testing an Internet gambling facility; such device is not used in live play involving actual bets or wagers; and such device is registered with the qualified body that issued the applicable license. Notwithstanding any other provision of law, a registration under paragraph (3)(C) is not required to be made available to the public.

Except as provided in paragraph (3), no person initiating, receiving, or otherwise making a bet or wager with a licensee, or sending, receiving, or inviting information assisting with a bet or wager with a licensee, shall knowingly use, possess, 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 licensee. A software program that makes bets or wagers according to an algorithm shall constitute a type of cheating device under this subsection.

It shall not be a violation of this subsection for a licensee, its agents, a qualified body, or its agent to use or possess a device described in paragraph

(1)or

(2)if— such use or possession is solely for purposes of testing an Internet gambling facility; such device is not used in live play involving actual bets or wagers; and such device is registered with the qualified body that issued the applicable license. Notwithstanding any other provision of law, a registration under paragraph (3)(C) is not required to be made available to the public. Whoever violates subsection

(a)or

(b)shall be fined under title 18, United States Code, imprisoned for not more than 3 years, or both. Upon conviction of a person for violation of this section, the court may enter a permanent injunction enjoining such person from initiating, receiving, or otherwise making bets or wagers or sending, receiving, or inviting information assisting in the placing of bets or wagers. Not later than 1 year after the date of first issuance specified in section 114(a), 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 licensees. The report required by paragraph

(1)shall include the following: Identification of threats to the integrity of Internet gambling facilities operated by licensees. Identification of technologies that could be used to hack computer networks, facilitate cheating, or otherwise place consumers at risk of fraud or monetary loss. An evaluation of steps taken by Internet gambling facilities licensed under this title to respond to the threats identified pursuant to subparagraph (A). Recommendations for such measures as the Director considers appropriate to deal with the threats identified pursuant subparagraph (A).