Bill Text: NJ A4385 | 2010-2011 | Regular Session | Introduced
Bill Title: Permits wagering at casinos and racetracks on certain professional and collegiate sports or athletic events.
Spectrum: Moderate Partisan Bill (Democrat 4-1)
Status: (Engrossed - Dead) 2011-12-15 - Senate Amendment (35-1) (Lesniak) [A4385 Detail]
Download: New_Jersey-2010-A4385-Introduced.html
Sponsored by:
Assemblyman JOHN J. BURZICHELLI
District 3 (Salem, Cumberland and Gloucester)
SYNOPSIS
Permits wagering at casinos and racetracks on certain professional and collegiate sports or athletic events.
CURRENT VERSION OF TEXT
As introduced.
An Act permitting wagering at casinos and racetracks on the results of certain professional or collegiate sports or athletic events, supplementing Title 5 of the Revised Statutes, and amending P.L.1977, c.110 (C.5:12-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) As used in this act:
"casino" means a licensed casino or gambling house located in Atlantic City at which casino gambling is conducted pursuant to the provisions of P.L.1977, c.110 (C.5:12-1 et seq.);
"Casino Control Commission" means the commission established pursuant to section 50 of P.L.1977, c.110 (C.5:12-50);
"collegiate sport or athletic event" means a sport or athletic event offered or sponsored by or played in connection with a public or private institution that offers educational services beyond the secondary level;
"division" means the Division of Gaming Enforcement established pursuant to section 55 of P.L.1977, c.110 (C.5:12-55);
"operator" means a casino or a racetrack which has elected to operate a sports pool, either independently or jointly;
"professional sport or athletic event" means an event at which two or more persons participate in sports or athletic events and receive compensation in excess of actual expenses for their participation in such event;
"prohibited sports event" means any collegiate sport or athletic event that takes place in New Jersey or a sport or athletic event in which any New Jersey college team participates regardless of where the event takes place;
"racetrack" means the physical facility where a permit holder conducts a horse race meeting with parimutuel wagering under a license by the racing commission pursuant to P.L.1940, c.17 (C.5:5-22 et seq.), and includes the site of any former racetrack;
"racing commission" means the New Jersey Racing Commission established by section 1 of P.L.1940, c.17 (C.5:5-22);
"sports event" means any professional sport or athletic event and any collegiate sport or athletic event, except a prohibited sports event;
"sports pool" means the business of accepting wagers on any sports event by any system or method of wagering other than the pari-mutuel method of wagering; and
"sports wagering lounge" means an area wherein a sports pool is operated.
2. (New section) a. In addition to casino games permitted pursuant to the provisions of P.L.1977, c.110 (C.5:12-1 et seq.), a casino may operate a sports pool upon the approval of the Casino Control Commission and the division, in accordance with their respective duties, and in accordance with the provisions of this act and applicable regulations promulgated pursuant to this act. In addition to the conduct of parimutuel wagering on horse races under regulation by the racing commission pursuant to chapter 5 of Title 5 of the Revised Statutes, a racetrack may operate a sports pool upon the approval of the Casino Control Commission and the division and the racing commission, and in accordance with the provisions of this act and applicable regulations promulgated pursuant to this act. Upon approval of the Casino Control Commission and the racing commission, a casino and a racetrack in this State may enter into an agreement to jointly operate a sports pool at the racetrack, in accordance with the provisions of this act and applicable regulations promulgated pursuant to this act.
In addition to the duties specified in section 63 of P.L.1977, c.110 (C.5:12-63), the Casino Control Commission shall hear and decide promptly and in reasonable order all applications for a license to operate a sports pool and shall have all other duties specified in that section with regard to the operation of a sports pool. In addition to the duties specified in section 76 of P.L.1977, c.110 (C.5:12-76.1), the division shall have the general responsibility for the implementation of this act and shall have all other duties specified in that section with regard to the operation of a sports pool.
b. A sports pool shall be operated in a sports wagering lounge located at a casino or racetrack. The lounge shall conform to all requirements concerning square footage, design, equipment, security measures and related matters which the division shall by regulation prescribe. The space required for the establishment of a lounge shall not reduce the space authorized for casino gaming activities as specified in section 83 of P.L.1977, c.110 (C.5:12-83).
c. The operator of a sports pool shall establish the odds it will pay on wagers placed on sports events.
d. An operator shall accept wagers on sports events from persons physically present in the sports wagering lounge, or from persons not physically present who wager by means of electronic devices. A person placing a wager shall be at least 21 years of age.
e. An operator may also accept wagers by means of the Internet from a resident of this State who is at least 21 years of age and who is physically present in this State, subject to such rules and regulations as may be necessary to ensure the security of such wagering.
f. An operator shall not admit into the sports wagering lounge, or accept wagers from, any person whose name appears on any self-exclusion list maintained by the division or the commission, and the provisions of sections 1 and 2 of P.L.2001, c.39 (C.5:12-71.2 and C.5:12-71.3, respectively), and sections 1 and 2 of P.L.2002, c.89 (C.5:5-65.1 and C.5:5-65.2, respectively), shall apply to the conduct of sports wagering under this act.
3. (New section) a. All persons engaged directly in wagering-related activities conducted by a casino, a racetrack, or both, in a sports wagering lounge shall be licensed as casino employees or casino key employees, as appropriate, pursuant to the provisions of P.L.1977, c.110 (C.5:12-1 et seq.). All other employees of the casino licensee, the racetrack permit holder, or of the person or entity conducting the sports pool who are working in the sports wagering lounge shall be licensed or registered in accordance with regulations of the division.
b. Each licensed casino, racetrack, or both, which operates a sports pool shall designate one or more key employees who shall be responsible for the operation of the sports pool. At least one such key employee shall be on the premises whenever sports wagering is conducted.
4. (New section) Except as otherwise provided by this act, the Casino Control Commission and the division shall have the authority to regulate sports pools and the conduct of sports wagering under this act to the same extent that the commission and the division regulate other casino games. No casino or racetrack shall be authorized to operate a sports pool unless it has produced information, documentation, and assurances concerning its financial background and resources, including cash reserves, that are sufficient to demonstrate that it has the financial stability, integrity, and responsibility to operate a sports pool. In developing rules and regulations applicable to sports wagering, the division shall examine the regulations implemented in other states where sports wagering is conducted and shall, as far as practicable, adopt a similar regulatory framework. The division shall promulgate regulations necessary to carry out the provisions of this act, including, but not limited to, regulations governing the:
a. amount of cash reserves to be maintained by operators to cover winning wagers;
b. acceptance of wagers on a series of sports events;
c. maximum wagers which may be accepted by an operator from any one patron on any one sports event;
d. type of wagering tickets which may be used;
e. method of issuing tickets;
f. method of accounting to be used by operators;
g. types of records which shall be kept; and
h. use of credit and checks by patrons.
5. (New section) Each operator shall, subject to approval by the division, adopt comprehensive house rules governing sports wagering transactions with its patrons. The rules shall specify the amounts to be paid on winning wagers and the effect of schedule changes. The house rules, together with any other information the division deems appropriate, shall be conspicuously displayed in the sports wagering lounge and included in the terms and conditions of the account wagering system, and copies shall be made readily available to patrons.
6. (New section) Whenever a casino licensee and a racetrack permit holder enter into an agreement to jointly establish a sports wagering lounge, and to operate and conduct sports wagering under this act, the agreement shall specify the distribution of revenues from the joint sports wagering operation among the parties to the agreement. The sums received by the casino from the joint sports wagering operation shall be considered gross revenue as specified under section 24 of P.L.1977, c.110 (C.5:12-24). The sums actually received by the horse racing permit holder from any sports wagering operation, either jointly established with a casino or established independently or with non-casino partners, less only the total of all sums actually paid out as winnings to patrons, shall be subject to an 8% tax to be collected by the division and paid to the Casino Revenue Fund created under section 145 of P.L.1977, c.110 (C.5:12-145) to be used for the funding of programs for senior citizens and disabled residents and to an investment alternative tax in the same amount and for the same purposes as provided in section 3 of P.L.1984, c.218 (C.5:12-144.1).
A percentage of the fee paid for a license to operate a sports pool shall be deposited into the State General Fund for appropriation by the Legislature to the Department of Health and Senior Services to provide funds for compulsive gambling treatment and prevention programs. The percentage shall be determined by the Casino Control Commission.
7. Section 24 of P.L.1977, c.110 (C.5:12-24) is amended to read as follows:
24. "Gross Revenue"-- The total of all sums actually received by a casino licensee from gaming operations, including operation of a sports pool, less only the total of all sums actually paid out as winnings to patrons; provided, however, that the cash equivalent value of any merchandise or thing of value included in a jackpot or payout shall not be included in the total of all sums paid out as winnings to patrons for purposes of determining gross revenue. "Gross Revenue" shall not include any amount received by a casino from casino simulcasting pursuant to the "Casino Simulcasting Act," P.L.1992, c.19 (C.5:12-191 et al.).
(cf: P.L.2009, c.36, s.2)
8. This act shall take effect immediately.
STATEMENT
This bill would allow licensed casinos in Atlantic City and racetracks in this State to conduct wagering on professional and collegiate sport or athletic events. The Casino Control Commission is authorized to grant licenses to operate a sports pool, and the Division of Gaming Enforcement would regulate those operations, generally in line with the current duties of the commission and division with regard to casinos and their operations.
Wagering on sports events, as defined by this bill, would not include wagering on any collegiate sport or athletic event that takes place in New Jersey or on a sport or athletic event in which any New Jersey college team participates regardless of where the event takes place. Wagers on a sports event could be placed in-person in a sports wagering lounge located at a casino or racetrack, or by means of electronic devices, or by means of the Internet by residents of this State who are physically present in this State. Persons placing wagers must be at least 21 years of age. The bill also provides that any person with a compulsive gambling problem whose name appears on any self-exclusion list in this State would be excluded from entering the sports wagering lounge and from placing a wager, subject to all of the limitations and penalties imposed under current law.
Under the bill, a casino or racetrack, including an operator at a former racetrack site, may establish a sports wagering lounge independently at the casino or racetrack, or in partnership between a casino and a racetrack at a racetrack location. A casino or racetrack will be required to demonstrate that it has the necessary financial resources to operate a sports pool. The division would promulgate the necessary rules and regulations for the conduct and operation of the sports wagering activities, while the New Jersey Racing Commission would also be involved in approving any partnership agreements with a racetrack operator. The bill provides that, in promulgating rules and regulations, the division would examine the rules and regulations currently in place in states conducting sports wagering, and would model such regulatory frameworks as far as practicable.
Under the bill, sports wagering gross revenue realized by a casino would be subject to the existing 8% casino gross revenue tax, the proceeds of which are dedicated to programs for senior citizens and disabled residents, and the investment alternative tax, which results in the investment of 1.25% of gaming revenue in community and economic development projects across the State. Sports wagering gross revenue realized by a racetrack would be subject to an 8% tax, to be collected by the division and paid to the Casino Revenue Fund to be used for the funding of programs for senior citizens and disabled residents, and also to an investment alternative tax identical to the one imposed on casinos. Also, a percentage of the fee paid for a license to operate a sports pool will be appropriated by the Legislature to the Department of Health and Senior Services to provide funds for compulsive gambling treatment and prevention programs, with the percentage determined by the Casino Control Commission.
The bill would take effect immediately.
