Sec. 113. Construction and relation to other law
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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 Federal, applicable State, or tribal law— nothing in this title shall be construed to require licensing under this title with respect to such games; and fees paid to participate in such games shall not be regarded as bets or wagers for purposes of this title. 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 title.
Except as otherwise expressly provided in this title, the provisions of this title shall supersede any provisions of the law of any State or Indian tribe expressly relating to the permitting, prohibiting, licensing, or regulating of Internet gambling facilities and the law of any State or Indian tribe expressly relating to the authorization, prohibiting, licensing, expansion, or regulation of gambling, except to the extent such State or tribal laws are not inconsistent with this title.
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 trespass, contract, or tort law. Equipment used by a licensee or significant vendor in the furtherance of licensed activities pursuant to this title (but not to the extent it is used for other purposes) shall not be considered a gambling device within the meaning of section 1 of the Act of January 2, 1951, prohibiting the transportation of gambling devices in interstate and foreign commerce ( 15 U.S.C. 1171 ). chapter 53 of title 31, United States Code Subchapter IV of chapter 53 of title 31, United States Code, is amended by adding at the end the following:
The provisions of this subchapter— 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 placing, transmitting, or receiving of interstate off-track wagers, as such term is defined in section 3 of the Interstate horseracing Act of 1978 ( 15 U.S.C. 3002 ), that are permissible under such Act ( 15 U.S.C. 3001 et seq. ), whether such off-track wager is made by telephone, Internet, satellite, or other wire or wireless communication facility, service, or medium; and shall not apply to any bet or wager— occurring pursuant to a license issued under title I of the Internet Gambling Regulation, Enforcement, and Consumer Protection Act of 2013, subject to section 109 of that Act; that is permissible under the Interstate horseracing Act of 1978 (15 U.S.C. 3001 et seq.); or is the purchase of a chance or opportunity to win a lottery or other prize— which opportunity to win is predominantly subject to chance; and which is authorized by a State or Indian tribe wholly within its borders. .
The provisions of this title requiring a license shall not apply with respect to the placing, transmitting, or receiving of interstate off-track wagers, as such term is defined in section 3 of the Interstate horseracing Act of 1978 (15 U.S.C. 3002), that are permissible under such Act ( 15 U.S.C. 3001 et seq. ), whether such off-track wager is made by telephone, Internet, satellite, or other wire or wireless communication facility, service, or medium. Section 1081 of title 18, United States Code, is amended— by designating the five undesignated paragraphs as paragraphs
(1)through (5), respectively; in paragraph (2), as so designated by subparagraph (A), by striking value. and inserting value, including any Internet gambling facility. ; by amending paragraph (5), as so designated by subparagraph (A), to read as follows: The term communication facility includes any instrumentality, personnel, and services (including, the receipt, forwarding, or delivery of communications) used in the transmission of a writing, sign, picture, or sound of any kind by aid of wire, cable, radio, or an electromagnetic, photoelectronic, or photooptical system, or other like connection (whether fixed or mobile) between the points of origin and reception of such transmission. ; and by adding at the end the following: The term bet or wager has the meaning given the term in section 102 of the Internet Gambling Regulation, Enforcement, and Consumer Protection Act of 2013. The term Internet means the international computer network of interoperable packet switched data networks. The term Internet gambling facility has the same meaning given the term in section 102 of the Internet Gambling Regulation, Enforcement, and Consumer Protection Act of 2013. The terms financial transaction provider and insured depository institution have the meanings given those terms in section 5362 of title 31, United States Code. The term gambling business means a business of betting or wagering. The terms own or control and owned or controlled include circumstances within the meaning of section 2(a)(2) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(a)(2)). . Section 1084 of title 18, United States Code, is amended to read as follows: Except as otherwise provided in this section or in the Internet Gambling Regulation, Enforcement, and Consumer Protection Act of 2013, 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 commerce, within the special maritime and territorial jurisdiction of the United States, or to or from any place outside the jurisdiction of any country with respect to any transmission to or from the United States, of— bets or wagers; information assisting in the placing of bets or wagers; or a communication, which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers. Any person who violates subsection
(a)shall be fined under this title, imprisoned for not more than 5 years, or both. Except as otherwise provided in this section, the transmission of bets or wagers, information assisting in the placing of bets or wagers, or a communication which entitles the recipient to receive money or credit as a result of bets or wagers, 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 use, in some part, of the Internet. Nothing in this section shall be construed to— prohibit— 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 wagers; 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 Federal, State, tribal, or local law and an out-of-State data center for the purposes of assisting in the operation of such State-specific lottery; or a qualifying intrastate lottery transaction (as defined in section 102 of the Internet Gambling Regulation, Enforcement, and Consumer Protection Act of 2013; any authorized activity carried out in connection with a license issued under the Internet Gambling Regulation, Enforcement, and Consumer Protection Act of 2013. create immunity from criminal prosecution under any laws of a State or tribe; or authorize activity that is prohibited under chapter 178 of title 28. This section shall not apply to any activity that is permissible under the Interstate horseracing Act of 1978 (15 U.S.C. 3001 et seq.), or any activity that is permissible under title I of the Internet Gambling Regulation, Enforcement, and Consumer Protection Act of 2013. If a common carrier (as defined in section 3 of the Communications Act of 1934 ( 47 U.S.C. 153 )), subject to the jurisdiction of the Federal Communications Commission, is notified in writing by a Federal, State, tribal, or local law enforcement agency, acting within the jurisdiction of the law enforcement agency, 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 commerce, within the special maritime and territorial jurisdiction of the United States, 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 Federal, State, tribal, or local law, the common carrier shall discontinue or refuse, the leasing, furnishing, or maintaining of such facility, after reasonable notice to the subscriber. No damages, penalty, or forfeiture, civil or criminal, shall be found against a common carrier for any act done in compliance with any notice received from a law enforcement agency. Nothing in this subsection shall be construed to prejudice the right of any person affected to secure an appropriate determination, as otherwise provided by law, in a Federal court or in a State, tribal, or local tribunal or agency, that such facility should not be discontinued or removed, or should be restored. This section, subchapter IV of chapter 53 of title 31, and any other provision of Federal law that establishes criminal penalties for any activity involved in placing, receiving or otherwise transmitting a bet or wager shall not apply to any bet or wager that— is permissible under the Interstate horseracing Act of 1978 ( 15 U.S.C. 3001 et seq. ); is an international off-track wager on horseracing, or the combination of international horseracing pari-mutuel wagering pools, that is lawful in the State or foreign jurisdiction involved; is permissible under the Prohibition of Internet Gambling, Regulation, and Consumer Protection Act of 2013; or is a qualifying intrastate lottery bet or wager as defined in section 102 of the Act referred to in paragraph (3). . Chapter 50 of title 18, United States Code, is amended by adding at the end the following: The district courts of the United States (in addition to any other remedies under current law) shall have original and exclusive jurisdiction to prevent and restrain violations of section 1084 by issuing appropriate orders in accordance with this section, regardless of whether a prosecution has been initiated under section 1084. In this subsection, the term account means— 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 credit, either conditionally or unconditionally, to an account, including interest credited, or which is evidenced by an instrument on which the depository institution is primarily liable; and money received or held by an insured depository institution, 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 purpose, regardless of the legal relationships established thereby, including escrow funds, funds held as security for securities loaned by the depository institution, funds deposited as advance payment on subscriptions to United States Government securities, and funds held to meet its acceptances. The United States may institute proceedings under this section— to obtain injunctive or declarative relief, including a temporary restraining order and a preliminary injunction, against any person (other than a financial transaction provider, except as provided in paragraph (3)) to prevent or restrain a violation or a threatened violation of section 1084; in the case of an insured depository institution that is a financial transaction provider, to— restrain an account maintained at such insured depository institution if such account is— owned or controlled by a gambling business; and includes proceeds of, or is used to facilitate a violation of section 1084; or seize funds in an account described in clause
(i)if such funds— are owned or controlled by a gambling business; and constitute the proceeds of, were derived from, or facilitated, a violation of section 1084. The limitation in paragraph (2)(A) shall not apply if the financial transaction provider is a gambling business, in which case, such financial transaction provider shall be subject to the enforcement provisions under paragraph (2). The attorney general (or other appropriate State official) of a State in which a communication in violation of section 1084 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 violation. Upon application of the attorney general (or other appropriate State official) of an affected State under subparagraph (A), the district court may enter a temporary restraining order, a preliminary injunction, an injunction, or declaratory relief against any person (other than a financial transaction provider) to prevent or restrain a violation or threatened violation of section 1084, in accordance with rule 65 of the Federal Rules of Civil Procedure. Notwithstanding paragraphs
(2)and (4), for a communication in violation of section 1084 that allegedly has been or will be initiated or received on Indian lands (as that term is defined in section 4 of the Indian Gaming Regulatory Act ( 25 U.S.C. 2703 ))— the United States shall have the enforcement authority provided under paragraph (2); the enforcement authorities specified in an applicable Tribal-State compact negotiated under section 11 of the Indian Gaming Regulatory Act ( 25 U.S.C. 2710 ) shall be carried out in accordance with that compact; and if there is no applicable Tribal-State compact, an appropriate tribal official may institute proceedings in the same manner as an attorney general of a State. Nothing in this subsection shall be construed to alter, supersede, or otherwise affect the application of the Indian Gaming Regulatory Act ( 25 U.S.C. 2701 et seq. ). Notwithstanding paragraph (4), no relief shall be granted under this section against a financial transaction provider except as provided in paragraph (3). No damages, penalty, or forfeiture, civil or criminal, shall be found against any person or entity for any act done in compliance with any notice received from a law enforcement agency. . The table of sections for chapter 50 of title 18, United States Code, is amended by inserting after the item relating to section 1084 the following: 1085. Civil remedies. . This title, subchapter IV of chapter 53 of title 31, United States Code, section 1084 of title 18, United States Code, and any other provision of Federal law that establishes criminal penalties for any activity involved in placing, receiving, or otherwise transmitting a bet or wager, information assisting in the placing of bets or wagers, or a communication which entitles the recipient to receive money or credit as a result of bets or wagers, shall not apply to gaming devices, information, or communications, to the extent used to support bets or wagers offered by a casino gaming facility that— occur between participants who are located on the premises of the same casino gaming facility; and are lawful in the State or on the Indian lands in or on which the casino gaming facility is located. In this subsection: The term casino gaming facility means any facility that provides casino gaming on a riverboat, at a race track, or in another facility, regardless of the number of gaming devices in 1 physical location, pursuant to a duly authorized license issued by a gaming regulatory authority of a State of Indian tribe. The term participants includes all persons who are party to the bet or wager, including, in the case of banked games, the casino gaming facility or operator itself. This title, subchapter IV of chapter 53 of title 31, United States Code, section 1084 of title 18, United States Code, and any other provision of Federal law that establishes criminal penalties for any activity involved in placing, receiving, or otherwise transmitting a bet or wager, information assisting in the placing of bets or wagers, or a communication which entitles the recipient to receive money or credit as a result of bets or wagers, shall not apply to the offering of a bet or wager or gambling game authorized, licensed, 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 game, or that is permissible under the Interstate Horseracing Act of 1978 (15 U.S.C. 3001 et seq.); or that is the purchase of a chance or opportunity to win a lottery or other prize— which opportunity to win is predominantly subject to chance; and which is authorized by a State or Indian tribe wholly within its borders; Paragraph
(1)shall not apply to— 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 change; 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 Act; and qualifying intrastate lottery transactions. In this subsection, the term casino gaming facility means any facility that provides casino gaming on a riverboat, at a race track, or in another facility, regardless of the number of gaming devices in 1 physical location, pursuant to a duly authorized license issued by a gaming regulatory authority of a State of Indian tribe.
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Sec. 113
Construction and relation to other law
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