US Codex
Bill
Notes

Title II — Enforcement under Titles 18 and 31, United States Code

H.R. 2282 · 113th Congress · Jun 6, 2013 · Lineage

II Enforcement under Titles 18 and 31, United States Code

Sec. 201 Financial service providers

Subchapter IV of chapter 53 of title 31, United States Code, is amended—
(1)
in section 5362—
(A)
by redesignating paragraph (11) as paragraph (12); and
(B)
by inserting after paragraph (10) the following:

“(11) List of licensed internet gambling facilities—The term “list of licensed Internet gambling facilities” means the list established and maintained under section 106(n) of the Internet Gambling Regulation, Enforcement, and Consumer Protection Act of 2013.”

(2)
in section 5364, by striking subsection (d) and inserting the following:

“(d) Financial transaction providers

“(1) In general—A financial transaction provider shall prevent, prohibit, or suspend its service from completing payment transactions involving customers within the United States and a person or entity that is—

“(A) an Internet gambling facility not included on the list of licensed Internet gambling facilities, or that the financial transaction provider reasonably believes is included on such list;

“(B) demonstrated to be, or that the financial transaction provider reasonably believes to be, an unlicensed Internet gambling enterprise, based on information other than the list of licensed Internet gambling facilities; or

“(C) acting on behalf of an Internet gambling facility that is not included on the list of licensed Internet gambling facilities, or that the financial transaction provider reasonably believes is included on such list, if the financial transaction provider has knowledge that such person or entity is acting on behalf of the unlicensed person or entity.

“(2) Safe harbor—A financial transaction provider shall not be held liable to any person—

“(A) for engaging in a financial activity or transaction, including a payments processing activity, in connection with a bet or wager that the provider believes is permitted by the Internet Gambling Regulation, Enforcement, and Consumer Protection Act of 2013 or the Internet horseracing Act of 1978 (15 U.S.C. 3001 et seq.), unless the financial transaction provider has actual knowledge that the financial activity or transaction was conducted in violation of either such Act or any applicable provision of Federal or State law; or

“(B) for taking any action pursuant to paragraph (1).”

Sec. 202 Amendments relating to illegal gambling businesses

Section 1955(b)(1) of title 18, United States Code, is amended—
(1)
in clause (i), by striking “(i) is” and inserting “(A)(i) is”;
(2)
in clause (iii), by striking the period at the end and inserting “; or”; and
(3)
by adding at the end the following:

“(B) is an unlawful Internet gambling facility, as defined in section 102 of the Internet Gambling Regulation, Enforcement, and Consumer Protection Act of 2013.”

Sec. 203 Further amendments to subchapter IV of chapter 53 of title 31, United States Code

Section 5362(10) of title 31, United States Code, is amended—
(1)
by striking subparagraphs (A) through (C) and inserting the following:

“(A) In general—The term “unlawful Internet gambling” means to place, receive, or otherwise knowingly transmit a bet or wager by or on behalf of a person located in the United States by any means which involves the use, at least in part, of the Internet, unless such bet or wager is expressly permitted under applicable Federal law.”

(2)
by redesignating subparagraph (D) as subparagraph (B);
(3)
in subparagraph (B), as so redesignated, by striking clause (iii); and
(4)
by striking subparagraph (E) and inserting the following:

“(C) Qualifying intrastate lottery transactions—The term “unlawful Internet gambling” does not include the purchase of a chance or opportunity to win a lottery or other prize that satisfies all of the conditions and limitations set out in section 102(3)(B) of the Internet Gambling Regulation, Enforcement, and Consumer Protection Act of 2013.

“(D) Licensed internet gambling facilities—The term “unlawful Internet gambling” does not include an activity carried out by an Internet gambling facility, as such term is defined in section 102 of the Internet Gambling Regulation, Enforcement, and Consumer Protection Act of 2013, operated by a person under a license provided under title I of that Act, in accordance with the provisions of that title I.”

Sec. 204 Bettor forfeiture

Section 981(a)(1) of title 18, United States Code, is amended by adding at the end the following:

“(I) Any property, real or personal, involved in a transaction or attempted transaction in violation of section 103 of the Internet Gambling Regulation, Enforcement, and Consumer Protection Act of 2013, or any property traceable to such property.”

Sec. 205 Regulations

(a)
Regulations— Not later than 180 days after the date of enactment of this Act, the Secretary of the Treasury shall prescribe such regulations as the Secretary of the Treasury considers necessary to ensure compliance with the Bank Secrecy Act (12 U.S.C. 1951 et seq.; 31 U.S.C. 5311 et seq.), by licensees, significant vendors to such licensees, and financial service providers to such licensees (as those terms are defined in section 102).
(b)
Revision of regulations— Not later than 180 days after the date of enactment of this Act, the Secretary of the Treasury shall revise part 233 of title 12, Code of Federal Regulations, and part 132 of title 31, Code of Federal Regulations, to conform with the provisions of title I.

Sec. 206 Conforming amendment

Section 310(b)(2)(I) of title 31, United States Code, is amended by striking “subchapter II” and inserting “subchapters II and IV”.