text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Internet Gambling Prohibition Act of 
  1997''.
  
  SEC. 2. DEFINITIONS.
  
      Section 1081 of title 18, United States Code, is amended--
              (1) in the matter immediately following the colon, by 
          designating the first 5 undesignated paragraphs as paragraphs 
          (1) through (5), respectively, and moving the indentation of 
          each paragraph 2 ems to the right;
              (2) in paragraph (5), as so designated--
                      (A) by striking ``wire communication'' and 
                  inserting ``communication'';
                      (B) by striking ``transmission of writings'' and 
                  inserting ``transmission or receipt of data, 
                  writings''; and
                      (C) by striking ``or other like'' and all that 
                  follows before the period and inserting ``radio, 
                  electromagnetic, photo-optical, photoelectric, or other 
                  similar facility''; and
              (3) by adding at the end the following:
              ``(6) Bets or wagers.--The term `bets or wagers'--
                      ``(A) means the staking or risking by any person of 
                  something of value (other than in a de minimis amount, 
                  such as postage, filling out a form or survey, or 
                  visits to a place where no charge is made for such 
                  visits) upon the outcome of a contest of chance or a 
                  future contingent event which contest or event is 
                  predominantly subject to pure chance, upon an agreement 
                  or understanding that the person or another person will 
                  receive something of greater value than the amount 
                  staked or risked in the event of a certain outcome;
                      ``(B) includes--
                              ``(i) the purchase of a chance or 
                          opportunity to win a lottery or other prize if 
                          the opportunity to win is subject to pure 
                          chance and the purchase requires a 
                          consideration that is not in a de minimis 
                          amount as described in subparagraph (A) and
                              ``(ii) information that is intended by the 
                          sender to be used by a person engaged in the 
                          business of betting or wagering to accept or 
                          place a bet or wager; and
                      ``(C) does not include--
                              ``(i) a bona fide business transaction 
                          governed by the securities laws (as that term 
                          is defined in section 3(a)(47) of the 
                          Securities Exchange Act of 1934 (15 U.S.C. 
                          78c(a)(47))) for the purchase or sale at a 
                          future date of securities (as that term is 
                          defined in section 3(a)(10) of the Securities 
  Exchange Act of 1934 (15 U.S.C. 78c(a)(10)));
                              ``(ii) a contract of indemnity or 
                          guarantee; or
                              ``(iii) a contract for life, health, or 
                          accident insurance.
              ``(7) Information assisting in the placing of bets or 
          wagers.--The term `information assisting in the placing of bets 
          or wagers means information that is sent by a person engaged in 
          the business of betting or wagering that is necessary in order 
          for the recipient to place a bet or wager by means of a 
          communication facility being used in interstate or foreign 
          commerce.''.
  
  SEC. 3. TRANSMISSION OF WAGERING INFORMATION; PENALTIES.
  
      (a) In General.--Section 1084 of title 18, United States Code, is 
  amended by striking subsections (a) through (c) and inserting the 
  following:
      ``(a) In General.--
              ``(1) Persons engaged in the business of betting or 
          wagering.--Whoever, being engaged in the business of betting or 
          wagering knowingly uses a communication facility for the 
          transmission or receipt in interstate or foreign commerce of 
          bets or wagers, information assisting in the placing of bets or 
          wagers, or a communication that entitles the transmitter or 
          receiver to the opportunity to receive money or credit as a 
          result of bets or wagers made using a communication facility in 
          interstate or foreign commerce, shall be fined under this title 
          or imprisoned not more than 4 years, or both.
              ``(2) Other persons.--Whoever (other than a person 
          described in paragraph (1)) knowingly uses a communication 
          facility for the transmission or receipt in interstate or 
          foreign commerce of bets or wagers, information assisting in 
          the placing of bets or wagers, or a communication that entitles 
          the transmitter or receiver to the opportunity to receive money 
          or credit as a result of bets or wagers, shall be fined under 
          this title or imprisoned not more than 6 months, or both.
      ``(b) Exceptions.--
              ``(1) News reporting; legal bets and wagers.--Nothing in 
          this section shall be construed to prohibit the transmission or 
          receipt in interstate or foreign commerce of any information--
                      ``(A) for use in the news reporting of any 
                  activity, event, or contest upon which bets or wagers 
                  are based;
                      ``(B) assisting in the placing of bets or wagers, 
                  if betting or wagering on such activity, event, or 
                  contest--
                              ``(i) is not illegal in the State or 
                          foreign country in which the transmission 
                          originates; and
                              ``(ii) is not illegal in each State and 
                          each foreign country in which the sender 
                          intends the transmission to be received for the 
                          purposes of betting or wagering; or
                      ``(C) advertising, promotion, or other 
                  communication by, or authorized by, anyone licensed to 
                  operate a gambling business in a State in which such 
                  business is lawful and in which the recipient of the 
                  information must be physically present at the licensed 
                  business establishment in order to place a bet or wager 
                  or engage in a contest which is conducted at such 
                  establishment.
              ``(2) State law.--Nothing in this section shall be 
          construed to preempt any State law.''.
      (b) Duties of Common Carriers and Interactive Computer Service 
  Providers.--Subsection (d) of section 1084 of title 18, United States 
  Code, is amended--
              (1) by striking ``(d) When'' and inserting the following:
      ``(c) Duties of Common Carriers and Interactive Computer Service 
  Providers.--
              ``(1) In general.--If'';
              (2) by inserting ``or interactive computer service 
          provider'' after ``common carrier'' each place that term 
          appears;
              (3) by striking ``Nothing'' and inserting the following:
              ``(3) Judicial action.--Nothing''; and
              (4) by inserting after paragraph (1), as amended by 
          subparagraph (1), the following:
              ``(2) Injunctive relief.--Any State or local law 
          enforcement agency acting within its jurisdiction, may, 
          following the issuance of a notice under paragraph (1), in a 
          civil action, obtain an injunction or other appropriate relief 
          preventing the use of such facility for the purpose of 
          transmitting or receiving gambling information in interstate or 
          foreign commerce in violation of State or local law.''.
      (c) Stylistic Amendment.--Section 1084(e) of title 18, United 
  States Code, is amended by inserting ``.--Definition''.
  
  SEC. 4. SENSE OF THE CONGRESS.
  
      It is the sense of the Congress that the Federal Government should 
  have extraterritorial jurisdiction over the transmission to or receipt 
  from the United States of--
              (1) bets or wagers (as that term is defined in section 1081 
          of title 18, United States Code);
              (2) information assisting in the placing of bets or wagers; 
          and
              (3) any communication that entitles the transmitter or 
          recipient to the opportunity to receive money or credit as a 
          result of bets or wagers.
  
  SEC. 5. REPORT.
  
      Not later than one year after the date of enactment of this Act, 
  the Attorney General shall submit a report to Congress that includes--
              (1) an analysis of the problems, if any, associated with 
          enforcing section 1084 of title 18, United States Code, as 
          amended by this Act; and
              (2) recommendations for the best use of the resources of 
          the Department of Justice to enforce that section.
target: Internet Gambling Prohibition Act of 1997 - Amends the Federal criminal code to provide penalties against any person who, while engaged in the business of betting or wagering, knowingly uses a communication facility for the transmission or receipt in interstate or foreign commerce of bets or wagers, information assisting in the placing of bets or wagers, or a communication that entitles the transmitter or receiver to receive money or credit as a result of bets or wagers.  Provides a smaller penalty for those engaging in such activities who are not in the business of betting or wagering. Provides prohibition exceptions. 
  Authorizes the Federal Communications Commission to enforce against interstate computer service providers regulations prohibiting the interstate or foreign transmission of gambling information. Authorizes injunctive relief against such carriers or providers. 
  Expresses the sense of the Congress that the Federal Government should have extraterritorial jurisdiction over the transmission to or receipt from the United States of gambling information as well as any communication that entitles the transmitter or recipient to receive money or credit as a result of bets or wagers. 
  Requires a report from the Attorney General to the Congress concerning the enforcement of such gambling regulations and related recommendations.
feat_title: Internet Gambling Prohibition Act of 1997