§ 4404. Territorial extent

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.