26 U.S.C. § 4404
Section 4404 · Territorial extent
Amended 1 time on record
The tax imposed by this subchapter shall apply only to wagers
(1) accepted in the United States, or
(2) placed by a person who is in the United States
(A) with a person who is a citizen or resident of the United States, or
(B) in a wagering pool or lottery conducted by a person who is a citizen or resident of the United States.