HR9590-118

101. General prohibition on sports wagering Except as provided in subsection (b), it shall be unlawful for any person to knowingly accept a sports wager. It shall not be a violation of subsection (a) for— a sports wagering operator located in a sports wagering opt-in State to accept a sports wager in accordance with State law; or a person to accept a sports wager in accordance with an applicable State social gambling law. If the Attorney General believes a person has violated, is violating, or will violate subsection (a), the Attorney General may bring a civil action in the appropriate district court of the United States or the appropriate United States court of a territory or possession of the United States, which shall have jurisdiction in proceedings in accordance with the Federal Rules of Civil Procedure to enjoin a violation of subsection (a). In the case of an alleged violation of an injunction or restraining order issued under paragraph (1), trial shall be, on demand of the accused, by a jury in accordance with the Federal Rules of Civil Procedure. Any person who violates subsection (a) shall be, with respect to any such violation, subject to a civil penalty of not more than the greater of $10,000 or 3 times the amount of the applicable sports wager. A separate violation occurs for each sports wager accepted in violation of subsection (a). The district courts of the United States and appropriate United States courts of the territories and possessions of the United States shall have jurisdiction to enforce this subsection in accordance with section 1355 of title 28, United States Code. A violation of subsection (a) shall not constitute a crime, and a judgment for the United States and imposition of a civil penalty pursuant to paragraph (1) shall not give rise to any disability or legal disadvantage based on conviction for a criminal offense. A civil penalty, injunction, or temporary restraining order imposed under this section shall be independent of, and not in lieu of, criminal prosecutions or any other proceedings under any other law of the United States, including sections 1084 and 1955 of title 18, United States Code. Subsection (a) shall take effect on the date that is 18 months after the date of enactment of this Act.

103. State sports wagering program standards The Attorney General shall approve an application under section 102 unless the Attorney General determines that the proposed State sports wagering program does not meet the standards set forth in subsection (b). A State sports wagering program shall meet each of the following standards: Establish or designate a public entity in the applicable State as the State regulatory entity for the purposes of regulating sports wagering operators and enforcing sports wagering laws in the State. Provide that in-person sports wagering may be offered only by a sports wagering operator. With respect to any authorization of sports wagering on an interactive sports wagering platform, provide that such sports wagering, as available, is available only to— individuals located in the State; or in the case of an interstate sports wagering compact approved by the Attorney General, individuals located in States and on Indian lands of Indian Tribes that are party to the compact. Include location verification requirements reasonably designed to prevent an individual from placing a sports wager on an interactive sports wagering platform from a location other than a location described in clause (i). Provide that a sports wagering operator shall not accept a sports wager unless such sports wager or class of sports wagers is expressly approved by the State regulatory entity. Direct the State regulatory entity to establish criteria for decisions with respect to the approval of a sports wager or a class of sports wagers, such as whether the outcome of the event or contingency on which the sports wager is placed is— verifiable; generated by a reliable and independent process; and unlikely to be affected by any sports wager placed. Prohibit the State regulatory entity from approving, or a sports wagering operator from accepting, a proposition bet on— any amateur athletic competition; or any intercollegiate sport (as defined in the Sports Agent Responsibility and Trust Act (15 U.S.C. 7801)). Prohibit the State regulatory entity from approving, or a sports wagering operator from accepting, a sports wager on any sporting event, once such event has commenced. In this paragraph, the term necessary to maintain contest integrity means that, in the absence of a restriction, there is a reasonably foreseeable risk that the outcome of the sporting event or contingency on which the wager is placed would be affected by the wager. Prohibit a sports wagering operator from accepting a sports wager in violation of a notice of restriction received by the sports wagering operator under subparagraph (E)(i). With respect to a sporting events sponsored, organized, or conducted by a sports organization, permit the sports organization to submit to the State regulatory entity a request to restrict, limit, or exclude wagers on 1 or more sporting events, including by restricting, limiting, and excluding sports wagers on 1 or more performances of an athlete in 1 or more sporting events in which such athlete participates, if the applicable sports organization determines that such restriction is necessary to maintain contest integrity. Provide that the State regulatory entity shall establish reasonable deadlines for the submission of a request under clause (i) in advance of the applicable sporting event. Provide that the State regulatory entity shall promptly— approve a request described in subparagraph (C)(i) unless the State regulatory entity determines, considering any information provided by the sports organization and any other relevant information, that a restriction is not necessary to maintain contest integrity; provide a written explanation of a determination under clause (i) to approve or deny a request; make such written explanation available to the public; and provide a process by which the sports organization that submitted the request may seek review of such determination. Provide that the State regulatory entity shall establish a process— to provide to sports wagering operators prompt notice of any restriction approved by the State regulatory entity; and to make such notice publicly available. Prohibit a sports wagering operator from accepting sports wagers from any— individual younger than 21 years of age; individual on the national self-exclusion list; athlete, coach, official, or employee of a sports organization or any club or team of a sports organization, with respect to a sporting event sponsored, organized, or conducted by the sports organization; employee of a player or an official union of a sports organization, with respect to a sporting event sponsored, organized, or conducted by the sports organization; individual who, with respect to a sporting event sponsored, organized, or conducted by a sports organization, is— credentialed or accredited by the sports organization; and prohibited from placing a sports wager by the terms of such credential or accreditation; or individual convicted of an offense under subsection (a) or (b) of section 224 of title 18, United States Code. With respect to any sports wager accepted on or before December 31, 2024, provide that a sports wagering operator shall determine the result of a sports wager only with data that is licensed and provided by— the applicable sports organization; or an entity expressly authorized by the applicable sports organization to provide such information. With respect to any sports wager accepted after December 31, 2024, provide that a sports wagering operator shall determine the result of a sports wager only with data that is obtained from a source that the State regulatory entity has— found to provide— data of substantially similar speed, accuracy, and consistency to the data available under clause (i); and only data that is— legally obtained; and in full compliance with the terms of any applicable contract or license; expressly authorized to provide such data to sports wagering operators; and identified in the application of the State regulatory entity under section 102. Provide that the statistics, result, outcome, or other data used by a sports wagering operator for a purpose other than to determine the result of a sports wager shall be in the public domain or otherwise legally obtained. Provide a process by which an individual may restrict himself or herself from placing a sports wager with a sports wagering operator located in the State, including by imposing sports wager limits. Provide, through the State regulatory entity acting in cooperation with the Assistant Secretary for Mental Health and Substance Use, a process by which an individual may restrict himself or herself from placing a sports wager with a sports wagering operator located in any sports wagering opt-in State, including by imposing sports wager limits, and placing himself or herself on the national self-exclusion list. Provide that a sports wagering operator may not accept a sports wager by an individual who is— described in clause (i); or included on the national self-exclusion list. Prohibit a sports wagering operator from— requiring an individual engaged in sports wagering to participate in a publicity or an advertising activity of the sports wagering operator as a condition of withdrawal of the winnings of the individual; and imposing on any individual engaged in sports wagering— a minimum or maximum withdrawal limit for the account of the individual; any restriction on the right of the individual to make a withdrawal from the account of the individual based on the extent of the sports wagering by the individual; 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 individual; or a dormancy charge for an account of the individual that is not used to place a sports wager. Provide that a sports wagering operator shall provide an individual with adequate and clear information relating to any applicable restriction or condition before the individual opens an account with the sports wagering operator. Provide that a sports wagering operator shall provide to an individual engaged in sports wagering clear information relating to any bonus offered, including the terms of withdrawal of the bonus. Provide that the information described in clauses (i) and (ii) be available to the public. Provide that a sports wagering operator shall allocate an appropriate percentage of the revenue from sports wagering to— treatment for gambling disorder; and education on responsible gaming. Provide that a sports wagering operator shall maintain a reserve in an amount not less than the sum of— the amounts held by the sports wagering operator for the account of patrons; the amounts accepted by the sports wagering operator as sports wagers on contingencies the outcomes of which have not been determined; and the amounts owed but unpaid by the sports wagering operator on winning wagers during the period for honoring winning wagers established by State law or the sports wagering operator. Provide that a sports wagering operator— may not accept more than 5 deposits from an individual during a 24-hour period; may not accept deposits made using a credit card; and shall be required, before accepting sport wagers from an individual in an amount that is more than $1,000 during a 24-hour period or $10,000 during a 30-day period, to conduct an affordability check which shall be satisfied by 1 or both of the following ways: Verification that the proposed deposit is not greater than 30 percent of the monthly income of the individual. Verification through a reasonable lender standard based on issuance of an unsecured loan for the proposed deposit through methods normally used by consumer lenders. Provide that a sports wagering operator may not use artificial intelligence to— track the sports wagers of an individual; create an offer or promotion targeting a specific individual; or create a gambling product, such as a microbet. Provide that advertisements for a sports wagering operator— shall— disclose the identity of the sports wagering operator; and provide information about how to access resources relating to gambling addiction; shall not recklessly or purposefully target— problem gamblers; individuals suffering from gambling disorder; or individuals who are ineligible to place a sports wager, including individuals younger than 21 years of age; may not be broadcasted— between the hours of 8:00am and 10:00pm local time; or during a live broadcast of a sporting event; and may not include— odds boosts or similar offers, including advertising that contains the phrase bonus, no sweat, bonus bet, or any other similar term; or any information on how to place a sports wager or how sports wagers work. Provide that a sports wagering operator located in the State shall be licensed by the State regulatory entity. Provide that before granting a license to a prospective sports wagering operator, the State regulatory entity shall make a determination, based on a completed background check and investigation, with respect to whether the prospective sports wagering operator and any person considered to be in control of the prospective sports wagering operator is suitable for license in accordance with suitability standards established by the State regulatory entity. Provide that if a prospective sports wagering operator is a corporation, partnership, or other business entity, a background check and investigation shall occur with respect to— the president or other chief executive of the corporation, partnership, or other business entity; and any other partner or senior executive and director of the corporation, partnership, or other business entity, as determined by the State regulatory entity. Establish standards and procedures for conducting the background checks and investigations described in this subparagraph. With respect to the suitability standards under subparagraph (B)(i), provide that a prospective sports wagering operator shall not be determined to be suitable for licensing as a sports wagering operator if the prospective sports wagering operator— has failed to provide information and documentary material for a determination of suitability for licensing as a sports wagering operator; has supplied information which is untrue or misleading as to a material fact pertaining to any such determination; has been convicted of an offense punishable by imprisonment of more than 1 year; is delinquent in— filing any applicable Federal or State tax returns; or the payment of any taxes, penalties, additions to tax, or interest owed to the United States or a State; on or after October 13, 2006— has knowingly participated in, or should have known the prospective sports wagering operator was participating in, an illegal internet gambling activity, including— taking an illegal internet wager; payment of winnings on an illegal internet wager; promotion through advertising of an illegal internet gambling website or service; or collection of any payment on behalf of an entity operating an illegal internet gambling website; or has knowingly been owned, operated, managed, or employed by, or should have known the prospective sports wagering operator was owned, operated, managed, or employed by, any person who was knowingly participating in, or should have known the person was participating in, an illegal internet gambling activity, including an activity described in items (aa) through (dd) of subclause (I); has— received any assistance, financial or otherwise, from a person who has, before the date of enactment of this Act, knowingly accepted bets or wagers from any other person who is physically present in the United States in violation of Federal or State law; or provided any assistance, financial or otherwise, to a person who has, before the date of enactment of this Act, knowingly accepted bets or wagers from any other person who is physically present in the United States in violation of Federal or State law; with respect to any other entity that has accepted a bet or wager from any individual in violation of United States law, has purchased or otherwise obtained— such entity; a list of the customers of such entity; or any other part of the equipment or operations of such entity; or fails to certify in writing, under penalty of perjury, that the applicant or other such person, and all affiliated business entities (including all entities under common control), during the entire history of such applicant or other such person and all affiliated business entities— have not committed an intentional felony violation of Federal or State sports wagering law; and have used diligence to prevent any United States person from placing a sports wager on an internet site in violation of Federal or State sports wagering laws. Establish standards and procedures for suspending or revoking the license of a sports wagering operator. Provide that a sports wagering operator— shall ensure that each existing and newly hired employee or contractor of the sports wagering operator undergo an annual criminal history background check; and shall not employ or enter into a contract with any individual who has been convicted of a Federal or State crime relating to sports wagering. Except as provided in subparagraph (B), with respect to each sports wager accepted by a sports wagering operator or attempted to be placed by an individual with a sports wagering operator, provide that the sports wagering operator shall secure and maintain a record of the following: The name, permanent address, date of birth, and social security number or passport number of the individual who placed, or attempted to place, the sports wager, which the sports wagering operator shall verify in accordance with the requirements for verification of identity in parts 1010.312 and 1021.312 of title 31, Code of Federal Regulations (or any successor regulation). The amount and type of the sports wager. The date and time at which the sports wager was placed or attempted to be placed. The location at which the sports wager was placed or attempted to be placed, including the internet protocol address, if applicable. The outcome of the sports wager. Provide that a sports wagering operator shall not be required to maintain a record of the information described in subparagraph (A) if— the sports wager is not placed by an individual through an account with the sports wagering operator; the amount of the sports wager does not exceed $10,000; the sports wagering operator and any officer, employee, or agent of the sports wagering operator does not have knowledge, or would not in the ordinary course of business have reason to have knowledge, that the sports wager is 1 of multiple sports wagers placed by an individual or on behalf of an individual during 1 day that are, in the aggregate, in excess of $10,000; and the sports wagering operator is not required, pursuant to section 31.3402(q)–1 of title 26, Code of Federal Regulations (or a successor regulation), to furnish a Form W–2G to the individual who placed the sports wager with respect to winnings from the sports wager. Provide that, in addition to the records required to be maintained pursuant paragraph (A), a sports wagering operator shall be required to maintain any other records relating to a suspicious transaction, including video recordings, in the possession, custody, or control of the sports wagering operator. Provide that a sports wagering operator shall be required to maintain each record required under this paragraph for not fewer than 5 years after the date on which the record is created. Provide that a sports wagering operator and the State regulatory entity shall take reasonable steps to prevent unauthorized access to, or dissemination of, sports wagering and customer data. Provide that a sports wagering operator shall provide to the State regulatory entity anonymized sports wagering data in real-time or as soon as practicable, but not later than 24 hours, after the time at which a sports wager is accepted by the sports wagering operator. Provide that each sports wagering operator located in the State shall promptly report the information described in paragraph (10)(A) for any suspicious transaction to the State regulatory entity, in such manner and accompanied by such additional information as the State regulatory entity may require. Subject to clause (ii), provide that a sports wagering operator shall simultaneously transmit to the applicable sports organization, and any component of the Department of Justice or other Federal law enforcement entity designated by the Attorney General to receive such reports, any suspicious transaction report submitted to a State regulatory entity under subparagraph (A). Except as provided in subclause (II), a suspicious transaction report submitted to a sports organization shall not contain any personally identifiable information relating to any individual who placed, or attempted to place, a sports wager. A suspicious transaction report submitted to a sports organization shall include any available personally identifiable information relating to an individual described in subparagraph (C), (D), or (E) of paragraph (4). Provide that the State regulatory entity, in consultation with law enforcement, shall develop and implement a strategy to enforce the sports wagering laws of the State. Provide adequate authority to the State regulatory entity and law enforcement, as appropriate, to monitor compliance with and enforce the sports wagering laws of the State, including— the authority and responsibility to conduct periodic audits and inspect the books and records of each sports wagering operator located or operating in the State; and a requirement that the State regulatory entity shall refer evidence of potential criminal violations to the appropriate law enforcement entity. Provide that any sports wagering operator located or operating in the State shall cooperate with any lawful investigation conducted by— the State regulatory entity; Federal or State law enforcement; or a sports organization, with respect to a sports wager— on a sporting event sponsored, organized, or conducted by the sports organization; placed by or on behalf of an individual described in subparagraph (C), (D), or (E) of paragraph (4); and accepted by the sports wagering operator. Provide that the State regulatory entity shall cooperate with any lawful investigation conducted by— Federal or State law enforcement; or a sports organization, with respect to a sports wager— on a sporting event sponsored, organized, or conducted by the sports organization; and accepted by a sports wagering operator located or operating in the State. Provide that each sports wagering operator shall devise and maintain a system of internal controls sufficient to provide reasonable assurances that sports wagers are accepted in accordance with all applicable laws, regulations, and policies. Provide that the State regulatory entity shall adopt and publish minimum standards for internal control procedures. Provide that each sports wagering operator shall submit to the State regulatory entity not less frequently than annually the written system of internal controls of the sports wagering operator. Provide that system of internal controls of a sports wagering operator shall be evaluated on a periodic basis, but not less frequently than every 3 years, by the State regulatory entity or an independent third-party auditor.