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119th Congress

Title 18 — Crimes and Criminal Procedure

Part I · Chapter 95 — Racketeering

§ 1955. Prohibition of illegal gambling businesses

Statutory text

(a)

Whoever conducts, finances, manages, supervises, directs, or owns all or part of an illegal gambling business shall be fined under this title or imprisoned not more than five years, or both.

(b)

As used in this section—

(1)

“illegal gambling business” means a gambling business which—

(i)

is a violation of the law of a State or political subdivision in which it is conducted;

(ii)

involves five or more persons who conduct, finance, manage, supervise, direct, or own all or part of such business; and

(iii)

has been or remains in substantially continuous operation for a period in excess of thirty days or has a gross revenue of $2,000 in any single day.

(2)

“insured credit union” shall have the meaning given the term in section 101 of the Federal Credit Union Act (12 U.S.C. 1752).

(3)

“insured depository institution” shall have the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).

(4)

“gambling” includes but is not limited to pool-selling, bookmaking, maintaining slot machines, roulette wheels or dice tables, and conducting lotteries, policy, bolita or numbers games, or selling chances therein.

(5)

“savings promotion raffle” means a contest in which the sole consideration required for a chance of winning designated prizes is obtained by the deposit of a specified amount of money in a savings account or other savings program, where each ticket or entry has an equal chance of being drawn, such contest being subject to regulations that may from time to time be promulgated by the appropriate prudential regulator (as defined in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481)).

(6)

“State” means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and any territory or possession of the United States.

(c)

If five or more persons conduct, finance, manage, supervise, direct, or own all or part of a gambling business and such business operates for two or more successive days, then, for the purpose of obtaining warrants for arrests, interceptions, and other searches and seizures, probable cause that the business receives gross revenue in excess of $2,000 in any single day shall be deemed to have been established.

(d)

Any property, including money, used in violation of the provisions of this section may be seized and forfeited to the United States. All provisions of law relating to the seizures, summary, and judicial forfeiture procedures, and condemnation of vessels, vehicles, merchandise, and baggage for violation of the customs laws; the disposition of such vessels, vehicles, merchandise, and baggage or the proceeds from such sale; the remission or mitigation of such forfeitures; and the compromise of claims and the award of compensation to informers in respect of such forfeitures shall apply to seizures and forfeitures incurred or alleged to have been incurred under the provisions of this section, insofar as applicable and not inconsistent with such provisions. Such duties as are imposed upon the collector of customs or any other person in respect to the seizure and forfeiture of vessels, vehicles, merchandise, and baggage under the customs laws shall be performed with respect to seizures and forfeitures of property used or intended for use in violation of this section by such officers, agents, or other persons as may be designated for that purpose by the Attorney General.

(e)

This section shall not apply to—

(1)

any bingo game, lottery, or similar game of chance conducted by an organization exempt from tax under paragraph (3) of subsection (c) of section 501 of the Internal Revenue Code of 1986, as amended, if no part of the gross receipts derived from such activity inures to the benefits of any private shareholder, member, or employee of such organization except as compensation for actual expenses incurred by him in the conduct of such activity; or

(2)

any savings promotion raffle.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

  1. Organized Time Control Act of 1970

    Pub. L. 91–452 title VIII § 803(a) · 84 Stat. 922

    Enacted · 18 U.S.C. § 1955

    Added Pub. L. 91–452, title VIII, § 803(a), Oct. 15, 1970, 84 Stat. 937

    Source evidence

    Code source credit
    Added Pub. L. 91–452, title VIII, § 803(a), Oct. 15, 1970, 84 Stat. 937

    Enacted provision · exact public law section
    (a) Chapter 95, title 18, United States Code, is amended by 62 Stat. 793; 75 Stat. 492, 498; 76 Stat. 42. 18 USC 1951–1954. adding at the end thereof the following new section: “§ 1955. Prohibition of illegal gambling businesses “(a) Whoever conducts, finances, manages, supervises, directs, or Penalty. owns all or part of an illegal gambling business shall be fined not more than $20,000 or imprisoned not more than five years, or both. “(b) As used in this section— Definitions. “(1) ‘illegal gambling business’ means a gambling business which— “(i) is a violation of the law of a State or political subdivision in which it is conducted; “(ii) involves five or more persons who conduct, finance, manage, supervise, direct, or own all or part of such business; and “(iii) has been or remains in substantially continuous operation for a period in excess of thirty days or has a gross revenue of $2,000 in any single day. “(2) ‘gambling’ includes but is not limited to pool-selling, bookmaking, maintaining slot machines, roulette wheels or dice tables, and conducting lotteries, policy, bolita or numbers games, or selling chances therein. “(3) ‘State’ means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and any territory or possession of the United States. “(c) If five or more persons conduct, finance, manage, supervise, direct, or own all or part of a gambling business and such business operates for two or more successive days, then, for the purpose of obtaining warrants for arrests, interceptions, and other searches and seizures, probable cause that the business receives gross revenue in excess of $2,000 in any single day shall be deemed to have been established. “(d) Any property, including money, used in violation of the provisions of this section may be seized and forfeited to the United States. All provisions of law relating to the seizure, summary, and judicial forfeiture procedures, and condemnation of vessels, vehicles, merchandise, and baggage for violation of the customs laws; the disposition of such vessels, vehicles, merchandise, and baggage or the proceeds from such sale; the remission or mitigation of such forfeitures; and the compromise of claims and the award of compensation to informers in respect of such forfeitures shall apply to seizures and forfeitures incurred or alleged to have been incurred under the provisions of this section, insofar as applicable and not inconsistent with such provisions. Such duties as are imposed upon the collector of customs or any other person in respect to the seizure and forfeiture of vessels, vehicles, merchandise, and baggage under the customs laws shall be performed with respect to seizures and forfeitures of property used or intended for use in violation of this section by such officers, agents, or other persons as may be designated for that purpose by the Attorney General. “(e) This section shall not apply to any bingo game, lottery, or similar game of chance conducted by an organization exempt from tax under paragraph (3) of subsection (c) of section 501 of the Internal 68A Stat. 163. 26 USC 501. Revenue Code of 1954, as amended, if no part of the gross receipts derived from such activity inures to the benefit of any private shareholder, member, or employee of such organization except as compensation for actual expenses incurred by him in the conduct of such activity.”

  2. Tax Reform Act of 1986

    Pub. L. 99–514 § 2 · 100 Stat. 2085

    Substituted · 18 U.S.C. § 1955(e)

    Pub. L. 99–514 substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”

    Source evidence

    Code amendment note
    Subsec. (e). Pub. L. 99–514 substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”.

    Enacted provision · exact public law section
    SEC. 2. INTERNAL REVENUE CODE OF 1986. (a) Redesignation of 1954 Code.— The Internal Revenue Title enacted August 16, 1954, as heretofore, hereby, or hereafter amended, may be cited as the “Internal Revenue Code of 1986”. (b) References in Laws, Etc.— Except when inappropriate, any reference in any law, Executive order, or other document— (1) to the Internal Revenue Code of 1954 shall include a reference to the Internal Revenue Code of 1986, and (2) to the Internal Revenue Code of 1986 shall include a reference to the provisions of law formerly known as the Internal Revenue Code of 1954.

  3. Violent Crime Control and Law Enforcement Act of 1994

    Pub. L. 103–322 title XXXIII § 330016(1)(N) · 108 Stat. 1796

    Substituted · 18 U.S.C. § 1955(a)

    Pub. L. 103–322 substituted “fined under this title” for “fined not more than $20,000”

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 103–322 substituted “fined under this title” for “fined not more than $20,000”.

    Enacted provision · exact public law section
    (N) in sections 844, 878, 1728, 1955, 1958, 2321, 2384, and 2385 by striking “not more than $20,000” each place it appears and inserting “under this title”;

  4. American Savings Promotion Act

    Pub. L. 113–251 § 5(3)(A)(iii) · 128 Stat. 2888

    Redesignated · 18 U.S.C. § 1955(b)(2); 18 U.S.C. § 1955(b)(3)

    Pub. L. 113–251, § 5(3)(A)(iii), added pars. (2) and (3). Former pars. (2) and (3) redesignated (4) and (6), respectively

    Source evidence

    Code amendment note
    Subsec. (b)(2), (3). Pub. L. 113–251, § 5(3)(A)(iii), added pars. (2) and (3). Former pars. (2) and (3) redesignated (4) and (6), respectively.

    Enacted provision · exact public law section
    (iii) Definitions. by inserting after paragraph (1) the following: “(2) ‘insured credit union’ shall have the meaning given the term in section 101 of the Federal Credit Union Act (12 U.S.C. 1752). “(3) ‘insured depository institution’ shall have the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).” ; and

  5. American Savings Promotion Act

    Pub. L. 113–251 § 5(3)(A)(i) · 128 Stat. 2888

    Redesignated · 18 U.S.C. § 1955(b)(4)

    Pub. L. 113–251, § 5(3)(A)(i), redesignated par. (2) as (4)

    Source evidence

    Code amendment note
    Subsec. (b)(4). Pub. L. 113–251, § 5(3)(A)(i), redesignated par. (2) as (4).

    Enacted provision · exact public law section
    (i) by redesignating paragraph (2) as paragraph (4);

  6. American Savings Promotion Act

    Pub. L. 113–251 § 5(3)(A)(iv) · 128 Stat. 2888

    Added · 18 U.S.C. § 1955(b)(5)

    Pub. L. 113–251, § 5(3)(A)(iv), added par. (5)

    Source evidence

    Code amendment note
    Subsec. (b)(5). Pub. L. 113–251, § 5(3)(A)(iv), added par. (5).

    Enacted provision · exact public law section
    (iv) by inserting after paragraph (4), as redesignated, the following: “(5) Definition. ‘savings promotion raffle’ means a contest in which the sole consideration required for a chance of winning designated prizes is obtained by the deposit of a specified amount of money in a savings account or other savings program, where each ticket or entry has an equal chance of being drawn, such contest being subject to regulations that may from time to time be promulgated by the appropriate prudential regulator (as defined in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481)).” ; and

  7. American Savings Promotion Act

    Pub. L. 113–251 § 5(3)(A)(ii) · 128 Stat. 2888

    Redesignated · 18 U.S.C. § 1955(b)(6)

    Pub. L. 113–251, § 5(3)(A)(ii), redesignated par. (3) as (6)

    Source evidence

    Code amendment note
    Subsec. (b)(6). Pub. L. 113–251, § 5(3)(A)(ii), redesignated par. (3) as (6).

    Enacted provision · exact public law section
    (ii) by redesignating paragraph (3) as paragraph (6);

  8. American Savings Promotion Act

    Pub. L. 113–251 § 5(3)(B) · 128 Stat. 2888

    1. Substituted · 18 U.S.C. § 1955(e)

      Pub. L. 113–251, § 5(3)(B), substituted “This section shall not apply to—” for “This section shall not apply to any bingo”

    2. Inserted · 18 U.S.C. § 1955(e)

      Pub. L. 113–251, § 5(3)(B), inserted “(1) any bingo” before “game,”

    3. Substituted · 18 U.S.C. § 1955(e)

      Pub. L. 113–251, § 5(3)(B), substituted “activity; or” for “activity.”

    4. Added · 18 U.S.C. § 1955(e)

      Pub. L. 113–251, § 5(3)(B), added par. (2)

    Source evidence

    Code amendment note
    Subsec. (e). Pub. L. 113–251, § 5(3)(B), substituted “This section shall not apply to—” for “This section shall not apply to any bingo”, inserted “(1) any bingo” before “game,”, substituted “activity; or” for “activity.”, and added par. (2).

    Enacted provision · exact public law section
    (B) in subsection (e)— (i) by striking “shall not apply to any bingo” and inserting the following: “shall not apply to— “(1) any bingo” ; (ii) by striking the period and inserting “; or”; and (iii) by adding at the end the following: “(2) any savings promotion raffle.” .

11 of 11 references resolved to an enrolled provision

Editorial Notes

References in Text

Paragraph (3) of subsection (c) of section 501 of the Internal Revenue Code of 1986, referred to in subsec. (e)(1), is classified to section 501(c)(3) of Title 26, Internal Revenue Code.

Amendments1986–2014 · 3 rounds

2014

Subsec. (b)(2), (3). Pub. L. 113–251, § 5(3)(A)(iii), added pars. (2) and (3). Former pars. (2) and (3) redesignated (4) and (6), respectively.

Subsec. (b)(4). Pub. L. 113–251, § 5(3)(A)(i), redesignated par. (2) as (4).

Subsec. (b)(5). Pub. L. 113–251, § 5(3)(A)(iv), added par. (5).

Subsec. (b)(6). Pub. L. 113–251, § 5(3)(A)(ii), redesignated par. (3) as (6).

Subsec. (e). Pub. L. 113–251, § 5(3)(B), substituted “This section shall not apply to—” for “This section shall not apply to any bingo”, inserted “(1) any bingo” before “game,”, substituted “activity; or” for “activity.”, and added par. (2).

1994

Subsec. (a). Pub. L. 103–322 substituted “fined under this title” for “fined not more than $20,000”.

1986

Subsec. (e). Pub. L. 99–514 substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”.

Statutory Notes and Related Subsidiaries

National Gambling Impact Study Commission

Pub. L. 104–169, , 110 Stat. 1482, as amended by Pub. L. 105–30, § 1, , 111 Stat. 248, established the National Gambling Impact Study Commission to conduct a comprehensive legal and factual study of the social and economic impacts of gambling in the United States on Federal, State, local, and Native American tribal governments, as well as on communities and social institutions generally, including individuals, families, and businesses within such communities and institutions, and to submit a report, not later than two years after its first meeting, to the President, the Congress, State Governors, and Native American tribal governments containing the Commission’s findings and conclusions, together with any recommendations of the Commission, and further provided for membership of the Commission, meetings, powers and duties of the Commission, personnel matters, contracts for research with the Advisory Commission on Intergovernmental Relations and the National Research Council, definitions, appropriations, and termination of the Commission 60 days after submission of its final report.

Priority of State Laws

Enactment of this section as not indicating an intent on the part of the Congress to occupy the field in which this section operates to the exclusion of State of local law on the same subject matter, or to relieve any person of any obligation imposed by any State or local law, see section 811 of Pub. L. 91–452, set out as a Priority of State Laws note under section 1511 of this title.

Commission on Review of National Policy Toward Gambling

Sections 804–809 of Pub. L. 91–452 established Commission on Review of National Policy Toward Gambling, provided for its membership and compensation of members and staff, empowered Commission to subpoena witnesses and grant immunity, required Commission to make a study of gambling in United States and existing Federal, State, and local policy and practices with respect to prohibition and taxation of gambling activities and to make a final report of its findings and recommendations to President and to Congress within four years of its establishment, and provided for its termination sixty days after submission of final report.

Executive Documents

Transfer of Functions

Offices of collector of customs, comptroller of customs, surveyor of customs, and appraiser of merchandise in Bureau of Customs of Department of the Treasury to which appointments were required to be made by President with advice and consent of Senate ordered abolished, with such offices to be terminated not later than , by Reorg. Plan No. 1 of 1965, eff. , 30 F.R. 7035, 79 Stat. 1317, set out in the Appendix to Title 5, Government Organization and Employees. Functions of offices eliminated were already vested in Secretary of the Treasury by Reorg. Plan No. 26 of 1950, eff. , 15 F.R. 4935, 64 Stat. 1280, set out in the Appendix to Title 5.

Credits

1970–2014 · 4 acts
  1. 1970Added Pub. L. 91–452, title VIII, § 803(a), , 84 Stat. 937
  2. 1986amended Pub. L. 99–514, § 2, , 100 Stat. 2095
  3. 1994Pub. L. 103–322, title XXXIII, § 330016(1)(N), , 108 Stat. 2148
  4. 2014Pub. L. 113–251, § 5(3), , 128 Stat. 2891.
Show as published

(Added Pub. L. 91–452, title VIII, § 803(a), , 84 Stat. 937; amended Pub. L. 99–514, § 2, , 100 Stat. 2095; Pub. L. 103–322, title XXXIII, § 330016(1)(N), , 108 Stat. 2148; Pub. L. 113–251, § 5(3), , 128 Stat. 2891.)

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