Internet Gambling Prohibition Act of 1998

Internet Gambling Prohibition Act of 1998 - Amends the Federal criminal code to prohibit, and set penalties for, knowingly using the Internet or any other interactive computer service to: (1) place, receive, or otherwise make a bet or wager with any person; or (2) intentionally send, receive, or invite information assisting in the placing of a bet or wager.

Prohibits, and sets penalties for, knowing use by a person engaged in a gambling business of the Internet or any other interactive computer service to: (1) place, receive, or otherwise make a bet or wager; or (2) send, receive, or invite information assisting in the placing of a bet or wager. Authorizes the court, upon conviction of a person and as an additional penalty, to enter a permanent injunction enjoining the transmission of bets or wagers or information assisting in the placing of a bet or wager. Lists exceptions, including certain State lottery, racing, or parimutuel activity and certain lawful bets or wagers that are made on Indian lands or conducted in accordance with an applicable Tribal-State compact.

(Sec. 4) Grants the U.S. district courts original and exclusive jurisdiction to prevent and restrain Internet gambling violations by issuing appropriate orders.

Authorizes the U.S. Attorney General and State Attorneys General to institute proceedings under this section. Sets forth provisions regarding orders and injunctions against Internet service providers, including scope of relief, considerations in the exercise of equitable discretion, findings, expiration of injunctions, expedited proceedings, privacy protection, and continuous court jurisdiction.

(Sec. 5) Requires a report to the Congress by: (1) the Attorney General regarding enforcing Internet gambling provisions and regarding the amount of money being used for Internet gambling; and (2) the Secretary of Commerce regarding methods for filtering and screening transmissions in violation of this Act originating outside of a State or the United States, the effect of injunctions imposed pursuant to this Act on interactive computer services and the Internet, and the economic and societal costs of illegal Internet gambling.