In this subchapter:
(1)
(A) means the staking or risking by any person of something of value upon the outcome of a contest of others, a sporting event, or a game subject to chance, upon an agreement or understanding that the person or another person will receive something of value in the event of a certain outcome;
(B) includes the purchase of a chance or opportunity to win a lottery or other prize (which opportunity to win is predominantly subject to chance);
(C) includes any scheme of a type described in section 3702 of title 28;
(D) includes any instructions or information pertaining to the establishment or movement of funds by the bettor or customer in, to, or from an account with the business of betting or wagering; and
(E) does not include-
(i) any activity governed by the securities laws (as that term is defined in section 3(a)(47) of the Securities Exchange Act of 1934 1 for the purchase or sale of securities (as that term is defined in section 3(a)(10) of that Act);
(ii) any transaction conducted on or subject to the rules of a registered entity or exempt board of trade under the Commodity Exchange Act;
(iii) any over-the-counter derivative instrument;
(iv) any other transaction that-
(I) is excluded or exempt from regulation under the Commodity Exchange Act; or
(II) is exempt from State gaming or bucket shop laws under section 12(e) of the Commodity Exchange Act or section 28(a) of the Securities Exchange Act of 1934;
(v) any contract of indemnity or guarantee;
(vi) any contract for insurance;
(vii) any deposit or other transaction with an insured depository institution;
(viii) participation in any game or contest in which participants do not stake or risk anything of value other than-
(I) personal efforts of the participants in playing the game or contest or obtaining access to the Internet; or
(II) points or credits that the sponsor of the game or contest provides to participants free of charge and that can be used or redeemed only for participation in games or contests offered by the sponsor; or
(ix) participation in any fantasy or simulation sports game or educational game or contest in which (if the game or contest involves a team or teams) no fantasy or simulation sports team is based on the current membership of an actual team that is a member of an amateur or professional sports organization (as those terms are defined in section 3701 of title 28) and that meets the following conditions:
(I) All prizes and awards offered to winning participants are established and made known to the participants in advance of the game or contest and their value is not determined by the number of participants or the amount of any fees paid by those participants.
(II) All winning outcomes reflect the relative knowledge and skill of the participants and are determined predominantly by accumulated statistical results of the performance of individuals (athletes in the case of sports events) in multiple real-world sporting or other events.
(III) No winning outcome is based-
(aa) on the score, point-spread, or any performance or performances of any single real-world team or any combination of such teams; or
(bb) solely on any single performance of an individual athlete in any single real-world sporting or other event.
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(A)
(B)
(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 (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)
(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 (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)
(i)
(ii)
(iii)
(E)
(11)
(A)
(B)
(i) has the meaning given the term in section 903 of the Electronic Fund Transfer Act (15 U.S.C. 1693a), except that the term includes transfers that would otherwise be excluded under section 903(6)(E) of that Act; and
(ii) includes any fund transfer covered by Article 4A of the Uniform Commercial Code, as in effect in any State.
(C)
(D)
(i) has the meaning given the term in section 3(c) of the Federal Deposit Insurance Act (12 U.S.C. 1813(c)); and
(ii) includes an insured credit union (as defined in section 101 of the Federal Credit Union Act).
(E)
(Added
Sections 3(a)(47) and 28(a) of the Securities Exchange Act of 1934, referred to in par. (1)(E)(i), (iv)(II), are classified to sections 78c(a)(47) and 78bb(a), respectively, of Title 15, Commerce and Trade.
The Commodity Exchange Act, referred to in par. (1)(E)(ii), (iv)(II), is act Sept. 21, 1922, ch. 369,
The Interstate Horseracing Act of 1978, referred to in par. (10)(B)(iii)(I), (C)(iv)(I), (D)(i), (iii), is
The Gambling Devices Transportation Act, referred to in par. (10)(B)(iii)(III), (C)(iv)(III), is act Jan. 2, 1951, ch. 1194,
The Indian Gaming Regulatory Act, referred to in par. (10)(B)(iii)(IV), (C)(i), (iv)(IV), is
The date of the enactment of this subchapter, referred to in par. (10)(D)(iii), is the date of enactment of
Section 101 of the Federal Credit Union Act, referred to in par. (11)(D)(ii), is classified to section 1752 of Title 12, Banks and Banking.
1 So in original. Probably should be followed by a closing parenthesis.