S 692 Internet - The Internet Gambling Prohibition Act (5/12/99, continued)

(1)IMMUNITY FROM LIABILITY FOR USE BY ANOTHER.-

(A) IN GENERAL- An interactive computer service provider described in subparagraph (B) shall not be liable, under this section or any other provision of Federal or State law prohibiting or regulating gambling or gambling related activities,' for the use of its facilities or services by another person to engage in Internet gambling activity that violates such law-

(i)arising out of any transmitting, routing, or providing of connections for gambling-related material or activity (including intermediate and temporary storage in the course of such transmitting, routing , or providing connections) by the provider, if-

(I) the material or activity was initiated by or at the directions of a person other than the provider;

(II) The transmitting, routing, or providing of connections is carried out through an automatic process without selection of the material or activity by the provider;

(III) the provider does not select the recipients of the material or activity, except as an automatic response to the request of another person, and;

(IV) the material or activity is transmitted through the system or network of the provider without modification of its content; or

(ii) arising out of any gambling-related material or activity at an online site residing on a computer server owned, controlled, or operated by or for the provider, or arising out of referring or linking users to an online location containing such material or activity, if the material or activity was initiated by or at the direction of a person other than the provider, unless the provider fails to take expeditiously, with respect to the particular material or activity at issue, the actions described in paragraph (2)(A) following the receipt by the provider of a notice described in paragraph (2)(B).

(B) ELIGIBILITY.- An interactive computer service provider is described in this subparagraph only if the provider-

(i) maintains and implements a written or electronic policy that requires the provider to terminate the account of a subscriber of its systems or network expeditiously following the receipt by the provider of a notice described in paragraph (2)(B) alleging that such subscriber has violated or is violating this section; and

(ii) with respect to the particular material or activity at issue, has not knowingly permitted its computer server to be used to engage in activity that the provider knows is prohibited by this section, with the specific intent that such server be used for such purpose.

(2) NOTICE TO INTERACTIVE COMPUTER SERVICES.-

(A) IN GENERAL.- If an interactive computer service provider receives from a Federal or State law enforcement agency, acting within its jurisdiction, a written or electronic notice described in subparagraph (B), that a particular online site residing on a computer server owned, controlled, or operated by or for the provider is being used by another person to violate section, the provider shall expeditiously-

(i) remove or disable access to the material or activity residing at that online site that allegedly violates this section; or-

(ii) in any case in which the provider does not control the site at which the provider does not control the site at which the provider does not control the site at which the subject material or activity resides, the provider, through any agent of the provider designated in accordance with section 512(c)(2) of title 17, or other responsible identified employee or contractor-

(I) notify the Federal or State law enforcement agency that the provider is not the proper recipient of such notice; and

(II) upon receipt of a subpoena, cooperate with the Federal or State law enforcement agency in identifying the person or persons who control the site.

(B) NOTICE.-A notice is described in this subparagraph only if it-

(i) identifies the material or activity that allegedly violates this section, and alleges that such material or activity violates this section;

(ii) provides information reasonably sufficient to permit the provider to locate (and, as appropriate, in a notice issued pursuant to paragraph (3)(A) to block access to) the material or activity;

(iii) is supplied to any agent of a provider designated in accordance with section 512(c)(2) of title 17, if information regarding such designation is readily available to the public;

(iv) provides information that is reasonably sufficient to permit the provider to contact the law enforcement agency that issued the notice, including the name of the law enforcement agency, and the name and telephone number of an individual to contact at the law enforcement agency (and, if available, the electronic mail address of that individual); and

(v) declares under penalties of perjury that the person submitting the notice is an official of the law enforcement agency described in clause (iv).

(3) -INJUCTIVE RELIEF.-

(A) IN GENERAL.-A Federal or State law enforcement agency acting within its authority and jurisdiction, may, not less than 24 hours following the issuance to an interactive computer service provider of a notice described in paragraph (2)(B), in a civil action, obtain a temporary restraining order, or an injunction to prevent the use of the interactive computer service by another person in violation of this section.

(B) LIMITATIONS.-Notwithstanding any other provision of this section, in the case of any application for a temporary restraining order or an injunction against an interactive computer service provider described in paragraph (1)(B) to prevent a violation of this section-

(i) arising out of activity described in paragraph (1)(A)(i), the injunctive relief is limited to-

(I) an order restraining the provider from providing access to an identified subscriber of the system or network of the interactive computer service providr, if the court determines that there is probable cause to believe that such subscriber is using that access to violate this section (or to engage with another person in a communication that violates this section), by terminating the specified account of that subscriber; and

(II) an order restraining the provider from providing access by taking reasonable steps specified in the order to block access, to a specific, identified, foreign online location;

(ii) arising out of activity described in paragraph (1)(A)(ii), the injunctive relief is limited to-

(I) the orders described in clause (I)(I);

(II) an order restraining the provider from providing access to the material or activity that violates this section at a particular online site residing on a computer server operated or controlled by the provider; and

(III) such other injunctive remedies as the court considers necessary to prevent or restrain access to specified material or activity that is prohibited by this section at a particular online location residing on a computer server operated or controlled by the provider, that are the least burdensome to the provider among the forms of relief that are comparably effective for that purpose.

(C) CONSIDERATIONS.- The court, in determining appropriate injunctive relief under this paragraph, shall consider-

(i) whether such an injunction, either alone or in combination with other such injunctions issued, and currently operative, against the same provider would significantly (and, in the case of relief under subparagraph (B)(ii), taking into account, among other factors, the conduct of the provider, unreasonably) burden either the provider or the operation of the system or network of the provider;

(ii) whether implementation of such an injunction would be technically feasible and effective, and would not materially interfere with access to lawful material at other online locations;

(iii) whether other less burdensome and comparably effective means of preventing or restraining access to the illegal material or activity are available; and

(iv) the magnitude of the harm likely to be suffered by the community if the injunction is not granted.

(D) NOTICE AND EX PARTE ORDERS- Injunctive relief under this paragraph shall not be available without notice to the service provider and an opportunity for such provider to appear before the court, except for orders ensuring the preservation of evidence or other orders having no material adverse effect on the operation of the communications network of the service provider.

(4) EFFECT ON OTHER LAW-

(A) IMMUNITY FROM LIABILITY FOR COMPLIANCE.-An interactive computer service provider shall not be liable for any damages, penalty, or forfeiture, civil or criminal, under Federal or State law for taking in good faith any action described in paragraph (2)(A) to comply in paragraph (2)(B), or complying with any court order issued under paragraph (3).

(B) DISCLAIMER OF OBLIGATIONS.-Nothing in this section may be contstrued to impose or authorize an obligation on an interactive computer service provider described in paragraph (1)(B)-

(i) to monitor material or use of its service; or

(ii) except as required by a notice or an order of a court under this paragraph, to gain access to, to remove, or to disable access to material.

(C) RIGHTS OF SUBSCRIBERS-Nothing in this section may be construed to prejudice the right of a subscriber to secure an appropriate determination, as otherwise provided by law, in a Federal court or in a State or local tribunal or agency, that the account of such subscriber should not be terminated pursuant to this subsection, or should be restored.

(1) IN GENERAL.-Subject to paragraph (2), the prohibition in this section does not apply to-

`(A) any otherwise lawful bet or wager that is placed, received, or otherwise made wholly intrastate for a State lottery, or for a multi-State lottery operated jointly between 2 or more States in conjunction with State lotteries if--

`(i) each such lottery is expressly authorized, and licensed or regulated, under applicable State law;

`(ii) the bet or wager is placed on an interactive computer service that uses a private network;

`(iii) each person placing or otherwise making that bet or wager is physically located when such bet or wager is placed at a facility that is open to the general public; and

`(iv) each such lottery complies with sections 1301 through 1304 of title 18, United States Code, and other applicable provisions of Federal law;

`(B) any otherwise lawful bet or wager that is placed, received, or otherwise made on an interstate or intrastate basis on a live horse race, or the sending, receiving, or inviting of information assisting in the placing of such a bet or wager, if such bet or wager, or the transmission of such information, as applicable, is--

`(i) expressly authorized, and licensed or regulated by the State in which such bet or wager is received, under applicable Federal and such State's laws;

`(ii) placed on a closed-loop subscriber-based service;

`(iii) initiated from a State in which betting or wagering on that same type of live horse racing is lawful and received in a State in which such betting or wagering is lawful;

`(iv) subject to the regulatory oversight of the State in which the bet or wager is received and subject by such State to minimum control standards for the accounting, regulatory inspection, and auditing of all such bets or wagers transmitted from 1 State to another; and

`(v) in the case of-

(I) live horse racing, made in accordance with the Interstate Horse Racing Act of 1978 (15 U.S.C. 3001 et seq.); or

(II) live dog racing, subject to consent agreements that are comparable to those required by the Interstate Horse Racing Act of 1978, approved by the appropriate State regulatory agencies, in the State receiving the signal, and in the State in which the bet or wager originates; or

`(C) any otherwise lawful bet or wager that is placed, received, or otherwise made for a fantasy sports league game or contest.

(2) BETS OR WAGERS MADE BY AGENTS OR PROXIES.-

`(A) IN GENERAL- Paragraph (1) does not apply in any case in which a bet or wager is placed, received, or otherwise made by the use of an agent or proxy using the Internet or an interactive computer service.

`(B) QUALIFICATION- Nothing in this paragraph may be construed to prohibit the owner operator of a parimutuel wagering facility that is licensed by a State from employing an agent in the operation of the account wagering system owned or operated by the parimutuel facility.'.

(3) ADVERTISING AND PROMOTION.-The prohibition of subsection (b)(1)(B) does not apply to advertising or promotion of any activity that is not prohibited by subsection (b)(1)(A).

SEC. 3. REPORT ON ENFORCEMENT.

Not later than 3 years after the date of enactment of this Act, the Attorney General shall submit to Congress a report, which shall include--

(1) an analysis of the problems, if any, associated with enforcing section 1085 of title 18, United States Code, as added by section 2 of this Act;

(2) recommendations for the best use of the resources of the Department of Justice to enforce that section; and

(3) an estimate of the amount of activity and money being used to gamble on the Internet.

SEC. 4. SEVERABILITY.

If any provision of this Act, an amendment made by this Act, or the application of such provision or amendment to any person or circumstance is held to be unconstitutional, the remainder of this Act, the amendments made by this Act, and the application of the provisions of such to any person or circumstance shall not be affected thereby.