Bill Text: NJ A4285 | 2010-2011 | Regular Session | Introduced
Bill Title: Directs New Jersey Racing Commission to implement pilot program for taverns, restaurants, and similar establishments to provide electronic terminals for wagering on horse races under issued license.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2011-11-21 - Introduced, Referred to Assembly Regulatory Oversight and Gaming Committee [A4285 Detail]
Download: New_Jersey-2010-A4285-Introduced.html
Sponsored by:
Assemblyman JOHN J. BURZICHELLI
District 3 (Salem, Cumberland and Gloucester)
SYNOPSIS
Directs New Jersey Racing Commission to implement pilot program for taverns, restaurants, and similar establishments to provide electronic terminals for wagering on horse races under issued license.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the placement of horse racing wagers at certain locations and supplementing the "Off-Track and Account Wagering Act," P.L.2001, c.199 (C.5:5-127 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Notwithstanding the provisions of the "Off-Track and Account Wagering Act," P.L.2001, c.199 (C.5:5-127 et seq.), or any other law, rule, or regulation to the contrary, the New Jersey Racing Commission shall implement a pilot program to license a limited number of eligible taverns, restaurants, and similar venues where food, alcoholic beverages, or both, are served to the public for on-premises consumption, to provide patrons with the ability to place wagers on horse races through electronic wagering terminals, subject to regulation and control by the commission and as further provided by this act, P.L. , c. (C. ) (pending before the Legislature as this bill).
a. In lieu of a maximum of four off-track wagering facility licenses that remain to be utilized or implemented by the New Jersey Sports and Exposition Authority or any lessee of the authority under the "Off-Track and Account Wagering Act," P.L.2001, c.199 (C.5:5-127 et seq.), as amended and supplemented, the commission shall issue a limited number of licenses to qualified taverns, restaurants, and similar venues, for the establishment at such venues of one or more electronic wagering terminals to enable patrons to place wagers on in-State and out-of-State horse races, which wagers shall be placed by eligible patrons who are physically present at those locations. Each license issued under this pilot program shall be temporary, subject to review and renewal on an annual basis, and shall expire within three years of issuance of each initial license.
b. The pilot program authorized pursuant to this act shall be implemented only in the northern part of the State, in Bergen, Hudson, Essex, Passaic, Union, Morris, Somerset, Hunterdon, Warren, Sussex, and northern Middlesex and Ocean counties. The commission shall develop an application form and process, solicit completed applications from taverns, restaurants, and similar venues located within the aforementioned geographic region, and evaluate each applicant's eligibility using specified criteria which shall include, but not be limited to:
(1) proof of financial resources sufficient to enable the applicant to establish and conduct the electronic wagering terminals with appropriately staffed and managed operations;
(2) evidence of good character, honesty, competency and integrity;
(3) the absence of a conviction for a crime involving fraud, dishonesty or moral turpitude; and
(4) any additional standards and criteria the commission may establish by rule or regulation.
In evaluating an application for a license, the commission shall ensure that each selected applicant has met all required eligibility criteria. In awarding the license, the commission shall also consider the proximity of the applicant's venue to planned or existing racetracks, off-track wagering facilities, and simulcasting facilities in this State. If, in the opinion of the commission, the issuance of a license for the establishment of electronic wagering terminals at the applicant's venue would be inimical to the interests of a planned or established racetrack, off-track wagering facility, or simulcasting facility, the commission shall deny the license even when the applicant has otherwise met all eligibility criteria.
c. To effectuate the provisions of this act, the commission shall promulgate rules and regulations necessary to:
(1) develop a rational basis for determining the number of licenses to be awarded under the program, except that not more than 60 licenses shall be awarded to qualified venues;
(2) evaluate the types of electronic wagering terminals and equipment that may be used in wagering, and the number of such machines to be established at each licensed venue, subject to approval by the commission;
(3) develop geographic proximity and impact criteria to determine whether a proposed location would be inimical to the interest of planned or existing racetracks, off-track wagering facilities, and simulcasting facilities in this State, and which criteria shall be used to deny a license as provided under subsection b. of this section;
(4) authorize the licensee to enter into contracts with vendors, operators, and other entities, as the case may be, for the establishment and operation of the approved electronic wagering terminals;
(5) ensure that amounts wagered through the electronic wagering terminals are properly distributed to winning bettors, the licensed venue, and others in a manner similar to that provided under section 44 of P.L.1940, c.17 (C.5:5-64), section 21 of P.L.2001, c.199 (C.5:5-147) for sums wagered on in-State races, and sections 22 through 25 of P.L.2001, c.199 (C.5:5-148 through C.5:5-151) for sums wagered on out-of-State races, except that a local impact fee of 1% of each machine's gross revenues shall be paid to the host municipality for general municipal purposes;
(6) provide that an amount, to be determined by the commission, of the revenues from electronic wagering terminals shall be distributed for the funding of horse racing purses;
(7) ensure that persons under the age of 18 years shall not be permitted within the space in the venue where electronic wagering terminals are placed, and that necessary safeguards are in place to prevent minors from wagering; and
(8) regulate any other aspects of the electronic wagering operation the commission deems appropriate.
d. Within three years of the issuance of the first license under the pilot program, the commission shall issue a report to the Governor, and to the Legislature as provided under section 2 of P.L.1991, c.164 (C.52:14-19.1), containing an evaluation of the pilot program. The report shall also provide the commission's opinion as to whether the pilot program should be continued and, if so, recommendations for further improvement and implementation. The pilot program shall end upon the expiration of the last license issued under the program unless the Legislature enacts a law to continue the program.
2. This act shall take effect immediately.
STATEMENT
This bill directs the New Jersey Racing Commission to implement a pilot program to license a limited number of eligible taverns, restaurants, and similar venues where food, alcoholic beverages, or both, are served to the public for on-premises consumption, in the northern part of the State to provide patrons with the ability to place wagers on horse races through electronic wagering terminals, subject to the commission's regulation and control.
Under the bill, in lieu of a maximum of four off-track wagering facility licenses that remain to be utilized or implemented by the New Jersey Sports and Exposition Authority or any lessee of the authority under the "Off-Track and Account Wagering Act," P.L.2001, c.199 (C.5:5-127 et seq.), as amended and supplemented, the commission would issue licenses to qualified taverns, restaurants, and similar venues. The qualified licensees would establish one or more electronic wagering terminals to enable patrons to place wagers at those locations on in-State and out-of-State horse races. Each license issued under the pilot program would be temporary, subject to review and renewal on an annual basis, and would expire within three years of issuance of each initial license.
The bill limits the pilot program to eligible venues located in Bergen, Hudson, Essex, Passaic, Union, Morris, Somerset, Hunterdon, Warren, Sussex, and northern Middlesex and Ocean counties. The commission would develop an application form and process, solicit completed applications from taverns, restaurants, and similar venues located within the aforementioned geographic region, and evaluate each applicant's eligibility using specified criteria. The eligibility criteria is standard for wagering operations, which include but are not limited to proofs of financial resources, evidence integrity, the absence of a criminal conviction, and additional standards and criteria the commission may establish by rule or regulation. The commission would deny a license to any venue where the placement of electronic wagering terminals would be inimical to existing racetracks, off-track wagering facilities, and simulcasting facilities. Furthermore, the commission would promulgate rules and regulations to develop criteria for determining the number of licenses to be issued, which could not be more than 60 licenses; evaluate the type and number of electronic wagering terminals that may be approved and used at each licensed venue; develop geographic and impact criteria for denying a license when inimical to existing racing venues; authorize contracts between the licensee and machine vendors and operators; ensure that amounts wagered are distributed according to law in a manner similar to distributions at off-track wagering facilities, except that a local impact fee of 1% of each machine's gross revenues would be paid to the host municipality for general municipal purposes; provide for the funding of horse racing purses; prevent underage gambling; and regulate any other aspects of the wagering operation the commission deems necessary.
Finally, the bill directs the commission to issue a report to the Governor and to the Legislature within three years of the issuance of the first license under the pilot program. The report would containing an evaluation of the pilot program, provide the commission's opinion as to whether the pilot program should be continued and, if so, recommendations for further improvement and implementation. The pilot program would end upon the expiration of the last license issued under the program unless the Legislature enacts a law to continue the program.
