28 U.S.C. § 3704 — Applicability

(a) Section 3702 must not apply to— (1) a lottery, sweepstakes, or other betting, gambling, or wagering scheme in operation in a State^* or other governmental entity^*, to the extent that the scheme was conducted by that State or other governmental entity at any time during the period beginning January 1, 1976 , and ending August 31, 1990 ; (2) a lottery, sweepstakes, or other betting, gambling, or wagering scheme in operation in a State or other governmental entity where both— (A) such scheme was authorized by a statute as in effect on October 2, 1991 ; and (B) a scheme described in section 3702 (other than one based on parimutuel animal racing or jai-alai games) actually was conducted in that State or other governmental entity at any time during the period beginning September 1, 1989 , and ending October 2, 1991 , under the law of that State or other governmental entity; (3) a betting, gambling, or wagering scheme, other than a lottery described in paragraph (1), conducted exclusively in casinos located in a municipality, but only to the extent that— (A) such scheme or a similar scheme was authorized, no later than one year after the effective date of this chapter, to be operated in that municipality; and (B) any commercial casino gaming scheme was in operation in such municipality throughout the 10-year period ending on such effective date under a comprehensive system of State regulation authorized by that State’s constitution and applicable solely to such municipality; or (4) parimutuel animal racing or jai-alai games. (b) Except as provided in subsection (a), section 3702 must apply on lands described in section 4(4) of the Indian Gaming Regulatory Act ( 25 U.S.C. 2703(4) ).