New Jersey-2012-S2935-Introduced

An Act permitting persons at racetracks, off-track wagering facilities, and casino simulcasting facilities to place instant racing wagers, and supplementing chapter 5 of Title 5 of the Revised Statutes and P.L.1992, c.19 (C.5:12-191 et seq.).

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. For the purposes of Article IV, Section VII, paragraph 2, subparagraphs E. and F. of the New Jersey Constitution, live or simulcast running and harness horse races shall include previously-recorded live horse races on which wagers are placed during an instant racing event authorized under this act, P.L. , c. (C. ) (pending before the Legislature as this bill). For the purposes of this act, "instant racing event" means a previously-recorded live running or harness horse race, which does not identify the actual race, on which pari-mutuel wagers are placed by a person using an electronic wagering terminal located at a racetrack, off-track wagering facility, or casino simulcasting facility in this State.

2. a. Notwithstanding the provisions of any other law or rule or regulation to the contrary, it shall be lawful for the New Jersey Racing Commission to authorize a permit holder that is licensed to conduct a horse race meeting in this State or an off-track wagering licensee to accept, under regulation of the commission, wagers on instant racing events, as defined in section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), with wagers placed through electronic wagering terminals located at a licensed racetrack facility or off-track wagering facility by persons who are physically present at those racetracks or facilities.

b. To effectuate the provisions of this section, the commission shall promulgate rules and regulations necessary to:

(1) evaluate the type of equipment that may be used in wagering subject to approval by the commission;

(2) authorize the permit holder to enter into contracts with vendors, operators, and other entities, as may be necessary, for the establishment and operation of the electronic wagering terminals;

(3) ensure that proper payments are made to winning bettors, and that remaining amounts are properly distributed among the permit holder or licensee, applicable partner entities, and horse racing and breeding industry stakeholders in accordance with subsection c. of this section;

(4) ensure that necessary safeguards are in place to guarantee the security and integrity of the electronic wagering terminals and of the wagering conducted thereon and to prevent minors from wagering; and

(5) regulate any other aspects of the electronic wagering operation the commission deems appropriate.

c. (1) As used in this subsection, "takeout" means that portion of a wager which is deducted from or not included in the parimutuel pool, and which is distributed other than to persons placing wagers. The takeout rate for instant racing shall be not more than 20%, and shall be 20% in the absence of an agreement prescribing a lesser takeout percentage. The amount resulting from the takeout rate for instant racing conducted at an off-track wagering facility or at a racetrack shall be distributed 16% to purses; 1% to breeder awards; 15% to race technology fees; 3% to simulcasting fees; and 65% to the permit holder, who shall be responsible for operating expenses, marketing, and awards not to exceed 25% of win. Notwithstanding the provisions of this subsection to the contrary, a portion of the amounts dedicated for purses to the Standardbred Breeders' and Owners' Association of New Jersey or to a standardbred permit holder, and to the New Jersey Thoroughbred Horsemen's Association or to a thoroughbred permit holder, may be expended for other purposes that benefit the racing and breeding industries in this State, pursuant to an agreement between the respective permit holder and association, and subject to reporting in the annual financial reports required to be submitted to the commission. The provisions of this subsection shall not be construed as to abrogate any contractual agreement among permit holders in this State providing for instant racing revenue sharing.

(2) Subject to rules and regulations of the commission, a racetrack or off-track wagering facility may commingle instant racing wagers into interstate common pools for instant racing.

3. a. Notwithstanding the provisions of any other law or rule or regulation to the contrary, it shall be lawful for the Division of Gaming Enforcement, in consultation with the New Jersey Racing Commission, to authorize a casino licensee, under regulation of the division and the commission, to conduct wagering on instant racing events, as defined in section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), with wagers placed through electronic wagering terminals located at the casino's simulcasting facility by persons who are physically present at that facility.

b. To effectuate the provisions of this section, the division and the commission shall promulgate rules and regulations necessary to:

(1) evaluate the type of equipment that may be used in wagering subject to approval by the division and the commission;

(2) authorize the casino licensee to enter into contracts with vendors, operators, and other entities, as may be necessary, for the establishment and operation of the electronic wagering terminals;

(3) ensure that proper payments are made to winning bettors, and that remaining amounts are properly distributed among the casino licensee, applicable partner entities, and horse racing and breeding industry stakeholders in accordance with subsection c. of this section;

(5) regulate any other aspects of the electronic wagering operation the division and commission deem appropriate.

(2) Subject to rules and regulations of the commission and division, the casino licensee may commingle instant racing wagers into interstate common pools for instant racing.

4. The provisions of this act, P.L. , c. (C. ) (pending before the Legislature as this bill) shall be construed as severable and if any part of this law is held unconstitutional, or for any other reason invalid, any remaining parts thereof shall not be affected thereby.

5. This act shall take effect immediately.

STATEMENT

This bill would permit wagering by persons at racetracks, off-track wagering facilities, and casino simulcasting facilities on instant racing events. Under the bill, an "instant racing event" is a previously-recorded live running or harness horse race, which does not identify the actual race, on which pari-mutuel wagers are placed by a person using an electronic wagering terminal located at a racetrack, off-track wagering facility, or casino simulcasting facility in this State.

The bill provides that the "takeout" or that portion of a wager which is deducted from or not included in the parimutuel pool, and which is distributed other than to persons placing wagers, will not be more than 20%, and will be 20% in the absence of an agreement prescribing a lesser takeout percentage. The takeout rate amount for instant racing conducted at an off-track wagering facility or at a racetrack will be distributed 16% to purses; 1% to breeder awards; 15% to race technology fees; 3% to simulcasting fees; and 65% to the permit holder, who shall be responsible for operating expenses, marketing, and awards not to exceed 25% of win. The takeout rate amount for instant racing conducted at a casino simulcasting facility will be distributed in accordance with an agreement between the casino licensee and horse racing permit holders in this State. Under the bill, instant racing wagers may be commingled into interstate common pools for instant racing.

The bill further provides that a portion of the amounts dedicated for purses to the Standardbred Breeders' and Owners' Association of New Jersey or to a standardbred permit holder, and to the New Jersey Thoroughbred Horsemen's Association or to a thoroughbred permit holder, may be expended for other purposes that benefit the racing and breeding industries in this State, pursuant to an agreement between the respective permit holder and association, and subject to reporting in the annual financial reports required to be submitted to the commission. The distributions established in the bill would not be construed as to abrogate any contractual agreement among permit holders in this State providing for instant racing revenue sharing.

Under the bill, the New Jersey Racing Commission and the Division of Gaming Enforcement would promulgate rules and regulations necessary to implement the bill's provisions.