Sec. 106. National Sports Wagering Clearinghouse
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/bill/115/s/3793/is/section-106A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
An entity designated as the National Sports Wagering Clearinghouse shall— be a nonprofit organization that— is not owned by any other entity; and is established for the purpose of carrying out the activities described in subsection (c); have articles of incorporation, a constitution, bylaws, or any other governing document that establishes and maintains provisions with respect to the governance and conduct of the affairs of the National Sports Wagering Clearinghouse for reasonable representation of— sports wagering operators; sports organizations;
State regulatory entities; Federal and State law enforcement; and 1 or more individuals not affiliated or associated with an entity described in subparagraphs
(A)through
(D)who, in the judgment of the Attorney General, represent the interests of the United States public in the activities of the National Sports Wagering Clearinghouse; demonstrate to the Attorney General that the National Sports Wagering Clearinghouse has or will have the administrative and technological capabilities to carry out the activities described in subsection (c); and be designated by the Attorney General in accordance with subsection (b). Not later than 90 days after the date of enactment of this Act, the Attorney General shall publish in the Federal Register a notice soliciting information to assist in identifying an appropriate entity to serve as the National Sports Wagering Clearinghouse. Not later than 270 days after the date of enactment of this Act and after reviewing the information requested under subparagraph (A), the Attorney General shall make an initial designation of the National Sports Wagering Clearinghouse. Not later than 300 days after the date of enactment of this Act, the Attorney General shall publish in the Federal Register a notice setting forth the identity of, and contact information for, the National Sports Wagering Clearinghouse designated under subparagraph (B). Not less frequently than every fifth January beginning in the fifth calendar year after the initial designation under paragraph (1)(B), the Attorney General shall publish in the Federal Register a notice soliciting information relating to whether— the existing designation should be continued; or a different entity meeting the criteria described in paragraphs
(1)through
(3)of subsection
(a)should be designated as the National Sports Wagering Clearinghouse. After the publication of the notice under subparagraph (A), a review of the information submitted pursuant to the notice, and any additional proceedings as the Attorney General considers appropriate, the Attorney General shall publish in the Federal Register a notice— continuing the existing designation; or designating another entity as the National Sports Wagering Clearinghouse. A new designation under subparagraph (B)(ii) shall be effective as of the first day of the month that is not less than 180 days and not more than 270 days after the date of publication of the notice under subparagraph (B), as specified by the Attorney General. The National Sports Wagering Clearinghouse shall— operate the official national resource center and information clearinghouse for sports wagering integrity; coordinate public and private programs and resources relating to— sports wagering integrity; practices for responsible betting; and addressing gambling disorder; contribute to and disseminate, on a national basis, information relating to best practices and model programs and resources that benefit— sports wagering integrity; responsible betting; and responses to gambling disorder; operate a national repository of anonymized sports wagering data and suspicious transaction reports; receive from sports wagering operators anonymized sports wagering data and suspicious transaction reports; promptly make available to State regulatory entities anonymized sports wagering data and suspicious transaction reports received from sports wagering operators; with respect to sporting events sponsored, organized, or conducted by a sports organization, promptly make available to the applicable sports organization anonymized sports wagering data and suspicious transaction reports received from sports wagering operators; enter into memoranda of understanding or such other agreements with public or private third parties as may be necessary to provide for the sharing of anonymized sports wagering data and suspicious transaction reports under paragraphs
(5)through
(7)and other information between the National Sports Wagering Clearinghouse and— sports wagering operators; sports organizations; State regulatory entities; Federal and State law enforcement; and an international regulatory entity or international law enforcement, with respect to anonymized sports wagering data and suspicious transaction reports relating to sporting events that occur— outside the United States; and within the jurisdiction of the international regulatory entity or international law enforcement; receive from international sports wagering operators, international regulatory entities, or international law enforcement any information such entities make available to the National Sports Wagering Clearinghouse; analyze anonymized sports wagering data received under paragraph
(5)for the purpose of identifying patterns, trends, and irregularities that may indicate potential violations of Federal or State law, which shall be referred to the appropriate sports organization, State regulatory entity, and Federal or State law enforcement; provide technical assistance and consultation to sports wagering operators, sports organizations, State regulatory entities, and Federal and State law enforcement to assist in— the identification of suspicious sports wagering activity; and the prevention, investigation, and prosecution of cases relating to unlawful sports wagering or any other activity relating to sports wagering that may threaten the integrity of sporting events; in cooperation with State regulatory entities, maintain and administer— the national self-exclusion list; and the process by which an individual may add or remove himself or herself from the national self-exclusion list; in cooperation with State regulatory entities and sports organizations, maintain and make available to sports wagering operators the national exclusion list, which shall include any individual— identified to the National Sports Wagering Clearinghouse by an appropriate sports organization as an individual described in clause (iii), (iv), or
(v)of section 103(b)(4)(A); included on the national self-exclusion list; or identified to the National Sports Wagering Clearinghouse by the Attorney General as having been convicted of any offense under section 224(a) or
(b)of title 18, United States Code; establish procedures by which any individual may determine— whether the individual is included on the national exclusion list; and the reason the individual is included on the national exclusion, including, as applicable, the sports organization or State regulatory entity that provided the name of the individual for inclusion on the national exclusion list; coordinate with the National Council on Problem Gambling and other organizations, as appropriate, to develop and disseminate information relating to best practices and model programs and resources for— ensuring appropriate consumer protections; and the prevention of, intervention and treatment for, and recovery from gambling disorder; and any other activity considered by the National Sports Wagering Clearinghouse to be necessary to carry out an activity described in this subsection. The National Sports Wagering Clearinghouse may only disclose information received under subsection (c)(5) to— a State regulatory entity; a Federal or State law enforcement agency; with respect to sporting events sponsored, organized, or conducted by a sports organization, the sports organization; and an international regulatory entity or international law enforcement, with respect to anonymized sports wagering data and suspicious transaction reports relating to sporting events that occur— outside the United States; and within the jurisdiction of the international regulatory entity or international law enforcement. Not less frequently than annually, the National Sports Wagering Clearinghouse shall submit to the Attorney General, the Committee on the Judiciary and the Committee on Commerce, Science, and Transportation of the Senate, and the Committee on the Judiciary and the Committee on Energy and Commerce of the House of Representatives a report on the operations of the National Sports Wagering Clearinghouse that includes a description of the activities of the National Sports Wagering Clearinghouse with respect to each function and authority under subsection (c). The reports required under paragraph
(1)shall be made available to the public. Not less frequently than annually, the Attorney General shall make a grant to the National Sports Wagering Clearinghouse for the purposes described in this section. The grants required under paragraph
(1)shall be made with amounts made available under section 9511(c)(3)(A) of the Internal Revenue Code of 1986. There are authorized to be appropriated for each of fiscal years 2019 through 2021, such sums as may be necessary to carry out this section, but not more than the amount that is the lesser of— $3,000,000; and the revenue collected during the preceding fiscal year pursuant to the Federal excise tax on sports wagering under sections 4401 and 4411 of the Internal Revenue Code of 1986. It is the sense of Congress that— any funds appropriated to carry out this section shall not be the sole or primary source of funding to operate the National Sports Wagering Clearinghouse; and the National Sports Wagering Clearinghouse should primarily be funded through voluntary contributions by, or reasonable fees assessed by the National Sports Wagering Clearinghouse to participating entities, such as sports wagering operators, sports organizations, and State regulatory entities.