Unlawful Internet Gambling Law and Legal Definition

According to 31 USCS § 5362 (10), unlawful internet gambling is:

"(A) In general. The term "unlawful Internet gambling" means to place, receive, or otherwise knowingly transmit a bet or wager by any means which involves the use, at least in part, of the Internet where such bet or wager is unlawful under any applicable Federal or State law in the State or Tribal lands in which the bet or wager is initiated, received, or otherwise made.

(B) Intrastate transactions. The term "unlawful Internet gambling" does not include placing, receiving, or otherwise transmitting a bet or wager where--

(i) the bet or wager is initiated and received or otherwise made exclusively within a single State;

(ii) the bet or wager and the method by which the bet or wager is initiated and received or otherwise made is expressly authorized by and placed in accordance with the laws of such State, and the State law or regulations include--

(I) age and location verification requirements reasonably designed to block access to minors and persons located out of such State; and

(II) appropriate data security standards to prevent unauthorized access by any person whose age and current location has not been verified in accordance with such State's law or regulations; and

(iii) the bet or wager does not violate any provision of--

(I) the Interstate Horseracing Act of 1978 (15 U.S.C. 3001 et seq.);

(II) chapter 178 of title 28 [28 USCS §§ 3701 et seq.] (commonly known as the "Professional and Amateur Sports Protection Act");

(III) the Gambling Devices Transportation Act (15 U.S.C. 1171 et seq.); or

(IV) the Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.).

(C) Intratribal transactions. The term "unlawful Internet gambling" does not include placing, receiving, or otherwise transmitting a bet or wager where--

(i) the bet or wager is initiated and received or otherwise made exclusively--

(I) within the Indian lands of a single Indian tribe (as such terms are defined under the Indian Gaming Regulatory Act); or

(II) between the Indian lands of 2 or more Indian tribes to the extent that intertribal gaming is authorized by the Indian Gaming Regulatory Act;

(ii) the bet or wager and the method by which the bet or wager is initiated and received or otherwise made is expressly authorized by and complies with the requirements of--

(I) the applicable tribal ordinance or resolution approved by the Chairman of the National Indian Gaming Commission; and

(II) with respect to class III gaming, the applicable Tribal-State Compact;

(iii) the applicable tribal ordinance or resolution or Tribal-State Compact includes--

(I) age and location verification requirements reasonably designed to block access to minors and persons located out of the applicable Tribal lands; and

(II) appropriate data security standards to prevent unauthorized access by any person whose age and current location has not been verified in accordance with the applicable tribal ordinance or resolution or Tribal-State Compact; and

(iv) the bet or wager does not violate any provision of--

(I) the Interstate Horseracing Act of 1978 (15 U.S.C. 3001 et seq.);

(II) chapter 178 of title 28 [28 USCS §§ 3701 et seq.] (commonly known as the "Professional and Amateur Sports Protection Act");

(III) the Gambling Devices Transportation Act (15 U.S.C. 1171 et seq.); or

(IV) the Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.).

(D) Interstate horseracing.

(i) In general. The term "unlawful Internet gambling" shall not include any activity that is allowed under the Interstate Horseracing Act of 1978 (15 U.S.C. 3001 et seq.).

(ii) Rule of construction regarding preemption. Nothing in this subchapter [31 USCS §§ 5361 et seq.] may be construed to preempt any State law prohibiting gambling.

(iii) Sense of Congress. It is the sense of Congress that this subchapter [31 USCS §§ 5361 et seq.] shall not change which activities related to horse racing may or may not be allowed under Federal law. This subparagraph is intended to address concerns that this subchapter [31 USCS §§ 5361 et seq.] could have the effect of changing the existing relationship between the Interstate Horseracing Act [Act Oct. 25, 1978, P.L. 95-515; for full classification, consult USCS Tables volumes] and other Federal statutes in effect on the date of the enactment of this subchapter [enacted Oct. 13, 2006]. This subchapter [31 USCS §§ 5361 et seq.] is not intended to change that relationship. This subchapter [31 USCS §§ 5361 et seq.] is not intended to resolve any existing disagreements over how to interpret the relationship between the Interstate Horseracing Act [Act Oct. 25, 1978, P.L. 95-515; for full classification, consult USCS Tables volumes] and other Federal statutes.

(E) Intermediate routing. The intermediate routing of electronic data shall not determine the location or locations in which a bet or wager is initiated, received, or otherwise made."