Licensing Requirements
The Internet Gambling Regulation, Consumer Protection and Enforcement Act (H.R. 2267) requires that in order for an operator to qualify for a license, the applicant must demonstrate they have established and can maintain the following requirements, at minimum:
- Consumer protections – Safeguards to ensure the individual placing a bet is of legal age to gamble and there are protections to combat compulsive gambling
- Safe financial transactions – Safeguards to prevent fraud, identity theft and money laundering
- Tax collection – Mechanisms to ensure all appropriate taxes and fees are collected from the licensees and individuals
- Location verification – Safeguards to ensure that the individual placing the bet or wager is physically located in a jurisdiction that permits that form of Internet gambling
Approval Process
Applicants wanting to offer Internet gambling services in the U.S. would be required to obtain a federal license from the Secretary of the Treasury. Before an application for a license is approved, the applicant would be required to:
- Provide comprehensive financial statements and corporate structure documents
- Agree to be subject to all U.S. laws related to Internet gambling and related financial services transactions
Applicants convicted of a criminal violation involving gambling, money laundering, fraud or any other financial laws would not be eligible for an Internet gambling license.
Additional Requirements
Proposed legislation to regulate Internet gambling also addresses the following issues:
- States & Indian tribes – States and Indian tribes would be able to prohibit Internet gambling activities within their respective geographic borders. Restrictions could be enforced if individual states decide to opt out from permitting persons in their states from Internet gambling.
- Sports leagues – Any sports league could opt out of the regulatory framework and prohibit any Internet gambling on their games or events.
- Sports wagering - The proposed regulatory framework would prohibit any Internet gambling on sports games and events.
