| 1 | 1 | | ASSEMBLY, No. 2172 STATE OF NEW JERSEY 221st LEGISLATURE PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION |
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| 3 | 3 | | ASSEMBLY, No. 2172 |
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| 7 | 7 | | STATE OF NEW JERSEY |
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| 9 | 9 | | 221st LEGISLATURE |
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| 13 | 13 | | PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION |
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| 17 | 17 | | Sponsored by: Assemblyman WILLIAM F. MOEN, JR. District 5 (Camden and Gloucester) Assemblyman DONALD A. GUARDIAN District 2 (Atlantic) Assemblyman CLINTON CALABRESE District 36 (Bergen and Passaic) Co-Sponsored by: Assemblyman Sampson and Assemblywoman Swift SYNOPSIS Includes electronic sports event as sports wagering; authorizes electronic sports wagering at certain locations. CURRENT VERSION OF TEXT Introduced Pending Technical Review by Legislative Counsel. |
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| 21 | 21 | | Sponsored by: |
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| 23 | 23 | | Assemblyman WILLIAM F. MOEN, JR. |
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| 25 | 25 | | District 5 (Camden and Gloucester) |
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| 27 | 27 | | Assemblyman DONALD A. GUARDIAN |
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| 29 | 29 | | District 2 (Atlantic) |
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| 31 | 31 | | Assemblyman CLINTON CALABRESE |
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| 33 | 33 | | District 36 (Bergen and Passaic) |
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| 36 | 36 | | |
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| 37 | 37 | | Co-Sponsored by: |
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| 39 | 39 | | Assemblyman Sampson and Assemblywoman Swift |
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| 49 | 49 | | SYNOPSIS |
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| 51 | 51 | | Includes electronic sports event as sports wagering; authorizes electronic sports wagering at certain locations. |
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| 53 | 53 | | |
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| 54 | 54 | | |
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| 55 | 55 | | CURRENT VERSION OF TEXT |
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| 57 | 57 | | Introduced Pending Technical Review by Legislative Counsel. |
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| 61 | 61 | | An Act concerning electronic sports events and wagering and amending P.L.2018, c.33. Be It Enacted by the Senate and General Assembly of the State of New Jersey: 1. Section 1 of P.L.2018, c.33 (C.5:12A-10) is amended to read as follows: 1. 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.). "Commission" means the Casino Control 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). "Electronic sports event" means a competition between or involving teams, individuals, or the operator, using a video game or games which occur, or are hosted, at a physical location or exclusively online. Electronic sports events and authorized wagering on electronic sports events shall not be considered an "authorized game" or "authorized gambling game" as defined in section 5 of P.L.1977, c.110 (C.5:12-5). "Former racetrack" means any former racetrack where a horse race meeting was conducted within 15 years prior to the effective date of P.L.2014, c.62 (C.5:12A-7 et seq.), excluding premises other than the land contained within the racecourse oval. "Internet sports pool operator" means an entity that is licensed as a casino service industry enterprise pursuant to section 92 of P.L.1977, c.110 (C.5:12-92). "Online sports pool" means a sports wagering operation in which wagers on sports events are made through computers or mobile or interactive devices and accepted at a sports wagering lounge through an online gaming system which is operating pursuant to a sports wagering license issued by the division or racing commission pursuant to P.L.2018, c.33 (C.5:12A-10 et al.). "Operator" means a casino or a racetrack which has elected to operate a sports pool, either independently or jointly, and any entity with whom a casino or racetrack licensed to operate a sports pool contracts to operate a sports pool or online sports pool, including an Internet sports pool operator, on its behalf. "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. A "prohibited sports event" does not include the other games of a collegiate sport or athletic tournament in which a New Jersey college team participates, nor does it include any games of a collegiate tournament that occurs outside New Jersey even though some of the individual games or events are held in New Jersey. A "prohibited sports event" includes all high school sports events. A "prohibited sports event" includes electronic sports and competitive video games that are sponsored by or affiliated with a high school or electronic sports and competitive video games and tournaments in which a majority of the competitors are under 18 years of age. A "prohibited sports event" does not include sports, electronic sports, or competitive video game events in which persons under age 18 make up a minority of the participants. "Racetrack" means the physical facility and the land, as of the effective date of P.L.2018, c.33 (C.5:12A-10 et al.), where a permit holder conducts a horse race meeting with wagering under a license issued by the racing commission pursuant to P.L.1940, c.17 (C.5:5-22 et seq.), and includes 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, any Olympic or international sports competition event and any collegiate sport or athletic event, or any portion thereof, including, but not limited to, the individual performance statistics of athletes in a sports event or combination of sports events, except "sports event" shall not include a prohibited sports event or a fantasy sports activity, as defined in section 2 of P.L.2017, c.231 (C.5:20-2). A "sports event" shall include any live competition or talent contest, including awards competitions and competitive eating contests. "Sports pool" means the business of accepting wagers on any sports event by any system or method of wagering, including but not limited to single-game bets, teaser bets, parlays, over-under, moneyline, pools, exchange wagering, in-game wagering, in-play bets, proposition bets, and straight bets. "Sports wagering lounge" means an area wherein a licensed sports pool is operated located in a casino hotel or racetrack. (cf: P.L.2021, c.286, s.2) 2. Section 2 of P.L.2018, c.33 (C.5:12A-11) is amended to read as follows: 2. a. The division shall issue all sports wagering licenses and renewals thereof to casinos. The racing commission shall issue all initial sports wagering licenses to racetracks but the division shall have responsibility for the renewal thereof. In addition to casino games permitted pursuant to the provisions of P.L.1977, c.110 (C.5:12-1 et seq.), a casino which holds a sports wagering license issued by the division may operate a sports pool in accordance with the provisions of this act and applicable regulations promulgated pursuant to this act. A racetrack which holds an initial sports wagering license issued by the racing commission or a sports wagering license that has been renewed by the division may operate a sports pool in accordance with the provisions of this act and applicable regulations promulgated pursuant to this act. The division may issue a transactional waiver to allow the continued operation of an established sports wagering lounge and authorization to conduct up to three online sports wagering operations when a racetrack that holds a license issued by the racing commission pursuant to P.L.1940, c.17 (C.5:5-22, et seq.) undergoes a material change in ownership to a degree such that it would be required to file a new application with the racing commission in order to continue to operate pursuant to P.L.1940, c.17 (C.5:5-22 et seq.). A transactional waiver issued pursuant to this section shall be for an initial period of up to six months and may be renewed during the pendency of the racing commission's consideration of a new application for up to three one-year periods, but the division shall have the right to reexamine and rescind the grant of the waiver at any time. A racetrack at which a permit holder has scheduled a standardbred horse race meeting within one year preceding the effective date of P.L.2018, c.33 (C.5:12A-10 et al.) and that met the definition of a racetrack under P.L.2018, c.33 (C.5:12A-10 et al.) on the effective date thereof: shall not be permitted to hold a sports wagering license as a former racetrack on or after the effective date of P.L.2021, c.350, and shall, as a condition of holding a sports wagering license after the effective date of P.L.2021, c.350, schedule annually no fewer than 151 standardbred race dates, except that the annual number of scheduled standardbred race dates may be decreased to no fewer than 75 standardbred race dates upon written consent from the Standardbred Breeders' and Owners' Association of New Jersey. A casino which holds a sports wagering license and a racetrack which holds a sports wagering license 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. A casino or racetrack that holds a sports wagering license may conduct an online sports pool or may authorize an internet sports pool operator licensed as a casino service industry enterprise pursuant to section 92 of P.L.1977, c.110 (C.5:12-92), or an applicant for such license, to operate an online sports pool on its behalf provided the terms of the agreement are approved by the division and, in the case of a racetrack, the racing commission has been provided with notice of any such division approval; provided, however, that each sports wagering licensee may provide no more than three individually branded websites, each of which may have an accompanying mobile application bearing the same brand as the website for an online sports pool. Those websites and mobile applications shall be permitted to offer wagering on traditional sports events and electronic sports events that are approved for wagering by the division. Websites and mobile applications authorized by casino licensees may also offer other types of Internet gaming pursuant to P.L.2013, c.27 (C.5:12-95.17 et seq.). In addition, each sports wagering licensee may offer not more than two additional individually branded websites with accompanying mobile applications that offer wagering solely on electronic sports events. No online sports pool shall be opened to the public, and no sports wagering, except for test purposes, may be conducted therein, until an Internet sports pool operator receives from the division a permit to conduct an online sports pool. Sports wagering licensees and operators may provide promotional credits, incentives, bonuses, complimentaries, or similar benefits designed to induce sports betters to wager. The division, in consultation with the commission, shall establish by rule standards governing the provision of these measures. The server or other equipment used by a racetrack to accept wagers at a sports pool or online sports pool shall be located in that racetrack or in any location in Atlantic City which conforms to the requirements of section 20 of P.L.2013, c.27 (C.5:12-95.22) and any additional requirements which the division may impose by regulation. The server or other equipment used by a casino to accept wagers at a sports pool or online sports pool shall conform to the requirements of section 20 of P.L.2013, c.27 (C.5:12-95.22) and any additional requirements which the division may impose by regulation. With regard to this act, P.L.2018, c.33 (C.5:12A-10 et al.), the duties specified in section 63 of P.L.1977, c.110 (C.5:12-63) of the Casino Control Commission shall apply to the extent not inconsistent with the provisions of this act. In addition to the duties specified in section 76 of P.L.1977, c.110 (C.5:12-76), the division or racing commission, as required pursuant to this act, shall hear and decide promptly and in reasonable order all applications for a license to operate a sports pool. In addition to the duties specified in section 76 of P.L.1977, c.110 (C.5:12-76), the division shall have the general responsibility for the implementation of this act, except with respect to the authority to issue sports wagering licenses to a racetrack as provided by this act, and shall have all other duties specified in that section with regard to the operation of a sports pool. The license to operate a sports pool shall be in addition to any other license required to be issued pursuant to P.L.1977, c.110 (C.5:12-1 et seq.) to operate a casino or pursuant to P.L.1940, c.17 (C.5:5-22 et seq.) to conduct horse racing. The division and the racing commission shall each have the authority to charge a casino or a racetrack a fee for the issuance or, in the case of the division renewal, of a sports wagering license in an amount of $100,000 for initial issuance and in the case of a renewal a reasonable fee that is based upon the expense associated with renewal, enforcement, and gambling addiction programs. No sports wagering license shall be issued by the division or racing commission to any entity unless it has established its financial stability, integrity and responsibility and its good character, honesty and integrity. No casino or racetrack shall be permitted to operate a sports pool or accept wagers via an online sports pool unless a sports wagering lounge is established and has commenced operation in its facility; provided, however, that an applicant for a sports wagering license may petition the agency issuing the sports wagering license pursuant to this act to commence operation of the sports pool at a temporary facility and/or an online sports pool during the pendency of construction of a sports wagering lounge in its facility. Such temporary facility may include, at the discretion of the agency issuing the sports wagering license pursuant to this act, the utilization of designated windows at the current casino cage or racetrack betting window for purposes of placing sports betting wagers and self-service wagering machines located at the racetrack or casino hotel complex. No license to operate a sports pool shall be issued to any entity which is disqualified under the criteria of section 86 of P.L.1977, c.110 (C.5:12-86). No later than five years after the date of the issuance of a license and every five years thereafter or within such lesser periods as the agency issuing the sports wagering license pursuant to this act may direct, a licensee shall submit to the said agency such documentation or information as the division or racing commission may by regulation require, to demonstrate to the satisfaction of the agency that the licensee continues to meet the requirements of the law and regulations. The division and the racing commission following consultation with the sports wagering licensees shall annually cause a report to be prepared and distributed to the Governor on the impact of sports wagering, including Internet wagering on sports events, on problem gamblers and gambling addiction in New Jersey. The report shall be prepared by a private organization or entity with expertise in serving the needs of persons with gambling addictions, which organization or entity shall be selected jointly by the division and the racing commission. The report shall be prepared and distributed under the supervision of, and in coordination with, the division and the racing commission. Any costs associated with the preparation and distribution of the report shall be borne by casino and racetrack licensees who have been authorized by the division or the racing commission to conduct Internet gaming and the division and the racing commission shall be authorized to assess a fee against such licensees for these purposes. The division and the racing commission may also report periodically to the Governor on the effectiveness of the statutory and regulatory controls in place to ensure the integrity of gaming operations through the Internet. b. A sports pool shall be operated in a sports wagering lounge located at a casino or racetrack. A sports wagering lounge may be located at a casino simulcasting facility. 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. No sports pool or online sports pool shall be offered or made available for wagering to the public by any entity other than a sports wagering licensee, pursuant to P.L.2018, c.33 (C.5:12A-10 et al.), an applicant for such license, operating such pool on behalf of a licensee, or an Internet sports pool operator, on behalf of a sports wagering licensee. Any person who offers a sports pool or an online sports pool without approval of the division or racing commission to do so is guilty of a crime of the fourth degree and notwithstanding the provisions of N.J.S.2C:43-3, shall be subject to a fine of not more than $25,000 and in the case of a person other than a natural person, to a fine of not more than $100,000 and any other appropriate disposition authorized by subsection b. of N.J.S.2C:43-2. d. The operator shall establish or display the odds at which wagers may be placed on sports events. e. An operator shall accept wagers on sports events only from persons physically present in the sports wagering lounge; through self-service wagering machines located in its facility as authorized by the agency issuing the sports wagering license; or through an online sports pool. A person placing a wager on a sports event shall be at least 21 years of age. f. (1) Any person who is: an athlete, coach, referee, or director of a sports governing body or any of its member teams; a sports governing body or any of its member teams; a player or a referee personnel member, in or on any sports event overseen by that person's sports governing body based on publicly available information; a person who holds a position of authority or influence sufficient to exert influence over the participants in a sporting contest, including but not limited to coaches, managers, handlers, athletic trainers, or horse trainers; a person with access to certain types of exclusive information on any sports event overseen by that person's sports governing body based on publicly available information; or a person identified by any lists provided by the sports governing body to the division and the racing commission, shall not be permitted to have any ownership interest in, control of, or otherwise be employed by an operator, a sports wagering licensee, or a facility in which a sports wagering lounge is located or place a wager on a sports event that is overseen by that person's sports governing body based on publicly available information. Any employee of a sports governing body or its member teams who is not prohibited from wagering on a sports event shall, nevertheless, provide notice to the division prior to placing a wager on a sports event. The direct or indirect legal or beneficial owner of 10 percent or more of a sports governing body shall not place or accept any wager on a sports event in which any member team of that sports governing body participates. The direct or indirect legal or beneficial owner of 10 percent or more of a member team of a sports governing body shall not place or accept any wager on a sports event in which that member team participates. Any person who violates this paragraph shall be guilty of a disorderly persons offense and shall be fined not less than $500 and not more than $1,000. (2) The prohibition set forth in paragraph (1) of this subsection shall not apply to any person who is a direct or indirect owner of a specific sports governing body member team and (i) has less than 10 percent direct or indirect ownership interest in a casino or racetrack or (ii) the shares of such person are registered pursuant to section 12 of the Securities Exchange Act of 1934, as amended (15 U.S.C. s.78l), and the value of the ownership of such team represents less than one percent of the person's total enterprise value. (3) An operator shall adopt procedures to prevent persons from wagering on sports events who are prohibited from placing sports wagers. An operator shall not accept wagers from any person whose identity is known to the operator and: whose name appears on the exclusion list maintained by the division pursuant to section 71 of P.L.1977, c.110 (C.5:12-71); whose name appears on any self-exclusion list maintained by the division pursuant to sections 1 and 2 of P.L.2001, c.39 (C.5:12-71.2 and C.5:12-71.3, respectively); who is the operator, director, officer, owner, or employee of the operator or any relative thereof living in the same household as the operator; who has access to nonpublic confidential information held by the operator; or who is an agent or proxy for any other person. (4) An operator shall adopt procedures to obtain personally identifiable information from any individual who places any single wager in an amount of $10,000 or greater on a sports event while physically present in a racetrack facility or a casino. 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. g. The holder of a sports wagering license may contract with an entity to conduct that operation, in accordance with the regulations of and approval by the division. That entity shall obtain a license as a casino service industry enterprise prior to the execution of any such contract, and such license shall be issued pursuant to the provisions of P.L.1977, c.110 (C.5:12-1 et seq.) and in accordance with the regulations promulgated by the division in consultation with the commission. That entity shall, upon approval of the division, expand on any initial license granted by the division prior to entering into any such contract. The approval shall be in accordance with the terms and conditions set forth by the division. h. If any provision of this act, P.L.2018, c.33 (C.5:12A-10 et al.), or its application to any person or circumstance, is held invalid, the invalidity shall not affect other provisions or applications of this act which can be given effect without the invalid provision or application, and to this end the provisions of this act are severable. i. An operator shall promptly report to the division: any criminal or disciplinary proceedings commenced against the operator or its employees in connection with the operations of the sports pool or online sports pool; any abnormal betting activity or patterns that may indicate a concern about the integrity of a sports event or events; any other conduct with the potential to corrupt a betting outcome of a sports event for purposes of financial gain, including but not limited to match fixing; and suspicious or illegal wagering activities, including the use of funds derived from illegal activity, wagers to conceal or launder funds derived from illegal activity, use of agents to place wagers, or use of false identification. The division is authorized to share any information under this section with any law enforcement entity, team, sports governing body, or regulatory agency the division deems appropriate. j. An operator shall maintain records of sports wagering operations in accordance with regulations promulgated by the division. k. A sports wagering licensee may, in addition to having a sports wagering lounge, conduct wagering on authorized sports events through one or more kiosks or self-service wagering stations located within its facility. Such self-service wagering stations located at a casino may offer any game authorized under rules established by the division. Such self-service wagering stations located at a racetrack may offer wagering only on authorized sports events and horse races. l. All wagers on sports events authorized under this provision shall be initiated, received and otherwise made within this State unless otherwise determined by the division in accordance with applicable federal and State laws. Consistent with the intent of the United States Congress as articulated in the Unlawful Internet Gambling Enforcement Act of 2006 (31 U.S.C. s.5361 et seq.), the intermediate routing of electronic data relating to a lawful intrastate wager authorized under this provision shall not determine the location or locations in which such wager is initiated, received or otherwise made. m. A sports wagering licensee shall not accept any wager on any sports event unless the sports event has been approved for wagering by the director. Except as otherwise provided in this subsection, no sports event shall be approved for wagering unless the director has certified that the sports event has appropriate policies and procedures to monitor the integrity of the athletes or competitors. In the absence of such certification, the director shall impose a wager limit of not more than $100 or a win limit of $500, whichever is greater, on the amount permitted to be wagered or won on such competitions or contests by any individual. n. Notwithstanding any other provision of P.L.2018, c.33 (C.5: 12A-10 et al.), P.L.1977, c.110 (C.5:12-1 et seq.), or P.L.2013, c. 27 (C.5:12-95.17 et seq.) to the contrary, the division may authorize wagers on electronic sports events to be accepted in a sports wagering lounge or by an internet sports wagering operator operating in partnership with a sports wagering licensee. (1) For electronic sports events which occur within the physical facilities of a casino licensee, within a racetrack that has a sports wagering license, or within a facility located in Atlantic City that has been approved by the division as suitable for hosting electronic sports events, and which events are sponsored by one or more casino licensees, racetracks or their authorized internet sports wagering providers or online internet gaming affiliates: (a) the division may authorize competitors in such events who are otherwise eligible to make sports wagers to make wagers on themselves or their own team with regard to an individual electronic sports contest; (b) the division may authorize the casino or other authorized facility in which the electronic sports event takes place, or the provider or affiliate which sponsors the event, to be the exclusive operator for the placing of wagers on the outcome of such electronic sports event; and (c) a casino, racetrack or the sponsor of the electronic sports event may accept wagers on such event provided a third party such as a game publisher certifies that the electronic sports event meets all integrity requirements of the division for being an authorized wagering event. (2) For electronic sports events which occur at physical facilities within the State but do not meet the criteria set forth in paragraph (1) of this subsection: (a) the division may authorize competitors in such events who are otherwise eligible to make sports wagers to make wagers on themselves or their own team with regard to an individual electronic sports contest; and (b) a casino, racetrack or the sponsor of the electronic sports event may accept wagers on such event provided that a third party, such as a game publisher, certifies that the electronic sports event meets all integrity requirements of the division for being an authorized wagering event. (3) Wagering in this State on electronic sports events occurring at physical facilities outside the State shall be permitted only upon the approval of the division and upon such terms and limitations as the division may impose. (4) An operator may accept wagers on electronic sports events which occur, or are hosted, exclusively on an online gaming system upon the approval of the division and upon such terms and limitations as the division may impose. (5) An operator may offer payouts to competitors in electronic sports events upon such terms and limitations as the division may impose. (cf: P.L.2021, c.350, s.1) 3. This act shall take effect immediately. STATEMENT Under current law, the Division of Gaming Enforcement is responsible for matters relating to, and arising from, sports wagering agreements, and is the entity responsible for approving the terms of an agreement with an Internet sports pool operator, which is licensed by the division, to operate an online sports pool on behalf of either a casino or a racetrack. This bill ensures that, while allowing sports wagering on electronic sports events, the division maintains its ability to oversee and approve sports wagering agreements involving either a casino or a racetrack, and that, where the agreement involves a racetrack, the New Jersey Racing Commission will be informed of the approval of such agreements. |
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| 63 | 63 | | An Act concerning electronic sports events and wagering and amending P.L.2018, c.33. |
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| 66 | 66 | | |
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| 67 | 67 | | Be It Enacted by the Senate and General Assembly of the State of New Jersey: |
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| 71 | 71 | | 1. Section 1 of P.L.2018, c.33 (C.5:12A-10) is amended to read as follows: |
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| 73 | 73 | | 1. As used in this act: |
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| 74 | 74 | | |
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| 75 | 75 | | "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.). |
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| 76 | 76 | | |
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| 77 | 77 | | "Commission" means the Casino Control Commission established pursuant to section 50 of P.L.1977, c.110 (C.5:12-50). |
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| 78 | 78 | | |
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| 79 | 79 | | "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. |
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| 81 | 81 | | "Division" means the Division of Gaming Enforcement established pursuant to section 55 of P.L.1977, c.110 (C.5:12-55). |
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| 82 | 82 | | |
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| 83 | 83 | | "Electronic sports event" means a competition between or involving teams, individuals, or the operator, using a video game or games which occur, or are hosted, at a physical location or exclusively online. Electronic sports events and authorized wagering on electronic sports events shall not be considered an "authorized game" or "authorized gambling game" as defined in section 5 of P.L.1977, c.110 (C.5:12-5). |
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| 84 | 84 | | |
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| 85 | 85 | | "Former racetrack" means any former racetrack where a horse race meeting was conducted within 15 years prior to the effective date of P.L.2014, c.62 (C.5:12A-7 et seq.), excluding premises other than the land contained within the racecourse oval. |
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| 86 | 86 | | |
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| 87 | 87 | | "Internet sports pool operator" means an entity that is licensed as a casino service industry enterprise pursuant to section 92 of P.L.1977, c.110 (C.5:12-92). |
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| 88 | 88 | | |
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| 89 | 89 | | "Online sports pool" means a sports wagering operation in which wagers on sports events are made through computers or mobile or interactive devices and accepted at a sports wagering lounge through an online gaming system which is operating pursuant to a sports wagering license issued by the division or racing commission pursuant to P.L.2018, c.33 (C.5:12A-10 et al.). |
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| 90 | 90 | | |
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| 91 | 91 | | "Operator" means a casino or a racetrack which has elected to operate a sports pool, either independently or jointly, and any entity with whom a casino or racetrack licensed to operate a sports pool contracts to operate a sports pool or online sports pool, including an Internet sports pool operator, on its behalf. |
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| 92 | 92 | | |
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| 93 | 93 | | "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. |
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| 94 | 94 | | |
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| 95 | 95 | | "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. A "prohibited sports event" does not include the other games of a collegiate sport or athletic tournament in which a New Jersey college team participates, nor does it include any games of a collegiate tournament that occurs outside New Jersey even though some of the individual games or events are held in New Jersey. A "prohibited sports event" includes all high school sports events. A "prohibited sports event" includes electronic sports and competitive video games that are sponsored by or affiliated with a high school or electronic sports and competitive video games and tournaments in which a majority of the competitors are under 18 years of age. A "prohibited sports event" does not include sports, electronic sports, or competitive video game events in which persons under age 18 make up a minority of the participants. |
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| 96 | 96 | | |
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| 97 | 97 | | "Racetrack" means the physical facility and the land, as of the effective date of P.L.2018, c.33 (C.5:12A-10 et al.), where a permit holder conducts a horse race meeting with wagering under a license issued by the racing commission pursuant to P.L.1940, c.17 (C.5:5-22 et seq.), and includes any former racetrack. |
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| 98 | 98 | | |
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| 99 | 99 | | "Racing Commission" means the New Jersey Racing Commission established by section 1 of P.L.1940, c.17 (C.5:5-22). |
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| 100 | 100 | | |
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| 101 | 101 | | "Sports event" means any professional sport or athletic event, any Olympic or international sports competition event and any collegiate sport or athletic event, or any portion thereof, including, but not limited to, the individual performance statistics of athletes in a sports event or combination of sports events, except "sports event" shall not include a prohibited sports event or a fantasy sports activity, as defined in section 2 of P.L.2017, c.231 (C.5:20-2). A "sports event" shall include any live competition or talent contest, including awards competitions and competitive eating contests. |
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| 102 | 102 | | |
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| 103 | 103 | | "Sports pool" means the business of accepting wagers on any sports event by any system or method of wagering, including but not limited to single-game bets, teaser bets, parlays, over-under, moneyline, pools, exchange wagering, in-game wagering, in-play bets, proposition bets, and straight bets. |
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| 104 | 104 | | |
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| 105 | 105 | | "Sports wagering lounge" means an area wherein a licensed sports pool is operated located in a casino hotel or racetrack. |
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| 106 | 106 | | |
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| 107 | 107 | | (cf: P.L.2021, c.286, s.2) |
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| 108 | 108 | | |
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| 109 | 109 | | |
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| 110 | 110 | | |
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| 111 | 111 | | 2. Section 2 of P.L.2018, c.33 (C.5:12A-11) is amended to read as follows: |
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| 112 | 112 | | |
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| 113 | 113 | | 2. a. The division shall issue all sports wagering licenses and renewals thereof to casinos. The racing commission shall issue all initial sports wagering licenses to racetracks but the division shall have responsibility for the renewal thereof. In addition to casino games permitted pursuant to the provisions of P.L.1977, c.110 (C.5:12-1 et seq.), a casino which holds a sports wagering license issued by the division may operate a sports pool in accordance with the provisions of this act and applicable regulations promulgated pursuant to this act. A racetrack which holds an initial sports wagering license issued by the racing commission or a sports wagering license that has been renewed by the division may operate a sports pool in accordance with the provisions of this act and applicable regulations promulgated pursuant to this act. |
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| 114 | 114 | | |
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| 115 | 115 | | The division may issue a transactional waiver to allow the continued operation of an established sports wagering lounge and authorization to conduct up to three online sports wagering operations when a racetrack that holds a license issued by the racing commission pursuant to P.L.1940, c.17 (C.5:5-22, et seq.) undergoes a material change in ownership to a degree such that it would be required to file a new application with the racing commission in order to continue to operate pursuant to P.L.1940, c.17 (C.5:5-22 et seq.). A transactional waiver issued pursuant to this section shall be for an initial period of up to six months and may be renewed during the pendency of the racing commission's consideration of a new application for up to three one-year periods, but the division shall have the right to reexamine and rescind the grant of the waiver at any time. |
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| 116 | 116 | | |
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| 117 | 117 | | A racetrack at which a permit holder has scheduled a standardbred horse race meeting within one year preceding the effective date of P.L.2018, c.33 (C.5:12A-10 et al.) and that met the definition of a racetrack under P.L.2018, c.33 (C.5:12A-10 et al.) on the effective date thereof: |
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| 118 | 118 | | |
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| 119 | 119 | | shall not be permitted to hold a sports wagering license as a former racetrack on or after the effective date of P.L.2021, c.350, and |
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| 120 | 120 | | |
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| 121 | 121 | | shall, as a condition of holding a sports wagering license after the effective date of P.L.2021, c.350, schedule annually no fewer than 151 standardbred race dates, except that the annual number of scheduled standardbred race dates may be decreased to no fewer than 75 standardbred race dates upon written consent from the Standardbred Breeders' and Owners' Association of New Jersey. |
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| 122 | 122 | | |
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| 123 | 123 | | A casino which holds a sports wagering license and a racetrack which holds a sports wagering license 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. A casino or racetrack that holds a sports wagering license may conduct an online sports pool or may authorize an internet sports pool operator licensed as a casino service industry enterprise pursuant to section 92 of P.L.1977, c.110 (C.5:12-92), or an applicant for such license, to operate an online sports pool on its behalf provided the terms of the agreement are approved by the division and, in the case of a racetrack, the racing commission has been provided with notice of any such division approval; provided, however, that each sports wagering licensee may provide no more than three individually branded websites, each of which may have an accompanying mobile application bearing the same brand as the website for an online sports pool. Those websites and mobile applications shall be permitted to offer wagering on traditional sports events and electronic sports events that are approved for wagering by the division. Websites and mobile applications authorized by casino licensees may also offer other types of Internet gaming pursuant to P.L.2013, c.27 (C.5:12-95.17 et seq.). In addition, each sports wagering licensee may offer not more than two additional individually branded websites with accompanying mobile applications that offer wagering solely on electronic sports events. No online sports pool shall be opened to the public, and no sports wagering, except for test purposes, may be conducted therein, until an Internet sports pool operator receives from the division a permit to conduct an online sports pool. Sports wagering licensees and operators may provide promotional credits, incentives, bonuses, complimentaries, or similar benefits designed to induce sports betters to wager. The division, in consultation with the commission, shall establish by rule standards governing the provision of these measures. The server or other equipment used by a racetrack to accept wagers at a sports pool or online sports pool shall be located in that racetrack or in any location in Atlantic City which conforms to the requirements of section 20 of P.L.2013, c.27 (C.5:12-95.22) and any additional requirements which the division may impose by regulation. The server or other equipment used by a casino to accept wagers at a sports pool or online sports pool shall conform to the requirements of section 20 of P.L.2013, c.27 (C.5:12-95.22) and any additional requirements which the division may impose by regulation. |
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| 124 | 124 | | |
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| 125 | 125 | | With regard to this act, P.L.2018, c.33 (C.5:12A-10 et al.), the duties specified in section 63 of P.L.1977, c.110 (C.5:12-63) of the Casino Control Commission shall apply to the extent not inconsistent with the provisions of this act. In addition to the duties specified in section 76 of P.L.1977, c.110 (C.5:12-76), the division or racing commission, as required pursuant to this act, shall hear and decide promptly and in reasonable order all applications for a license to operate a sports pool. In addition to the duties specified in section 76 of P.L.1977, c.110 (C.5:12-76), the division shall have the general responsibility for the implementation of this act, except with respect to the authority to issue sports wagering licenses to a racetrack as provided by this act, and shall have all other duties specified in that section with regard to the operation of a sports pool. |
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| 126 | 126 | | |
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| 127 | 127 | | The license to operate a sports pool shall be in addition to any other license required to be issued pursuant to P.L.1977, c.110 (C.5:12-1 et seq.) to operate a casino or pursuant to P.L.1940, c.17 (C.5:5-22 et seq.) to conduct horse racing. The division and the racing commission shall each have the authority to charge a casino or a racetrack a fee for the issuance or, in the case of the division renewal, of a sports wagering license in an amount of $100,000 for initial issuance and in the case of a renewal a reasonable fee that is based upon the expense associated with renewal, enforcement, and gambling addiction programs. No sports wagering license shall be issued by the division or racing commission to any entity unless it has established its financial stability, integrity and responsibility and its good character, honesty and integrity. No casino or racetrack shall be permitted to operate a sports pool or accept wagers via an online sports pool unless a sports wagering lounge is established and has commenced operation in its facility; provided, however, that an applicant for a sports wagering license may petition the agency issuing the sports wagering license pursuant to this act to commence operation of the sports pool at a temporary facility and/or an online sports pool during the pendency of construction of a sports wagering lounge in its facility. Such temporary facility may include, at the discretion of the agency issuing the sports wagering license pursuant to this act, the utilization of designated windows at the current casino cage or racetrack betting window for purposes of placing sports betting wagers and self-service wagering machines located at the racetrack or casino hotel complex. No license to operate a sports pool shall be issued to any entity which is disqualified under the criteria of section 86 of P.L.1977, c.110 (C.5:12-86). |
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| 128 | 128 | | |
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| 129 | 129 | | No later than five years after the date of the issuance of a license and every five years thereafter or within such lesser periods as the agency issuing the sports wagering license pursuant to this act may direct, a licensee shall submit to the said agency such documentation or information as the division or racing commission may by regulation require, to demonstrate to the satisfaction of the agency that the licensee continues to meet the requirements of the law and regulations. |
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| 130 | 130 | | |
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| 131 | 131 | | The division and the racing commission following consultation with the sports wagering licensees shall annually cause a report to be prepared and distributed to the Governor on the impact of sports wagering, including Internet wagering on sports events, on problem gamblers and gambling addiction in New Jersey. The report shall be prepared by a private organization or entity with expertise in serving the needs of persons with gambling addictions, which organization or entity shall be selected jointly by the division and the racing commission. The report shall be prepared and distributed under the supervision of, and in coordination with, the division and the racing commission. Any costs associated with the preparation and distribution of the report shall be borne by casino and racetrack licensees who have been authorized by the division or the racing commission to conduct Internet gaming and the division and the racing commission shall be authorized to assess a fee against such licensees for these purposes. The division and the racing commission may also report periodically to the Governor on the effectiveness of the statutory and regulatory controls in place to ensure the integrity of gaming operations through the Internet. |
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| 132 | 132 | | |
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| 133 | 133 | | b. A sports pool shall be operated in a sports wagering lounge located at a casino or racetrack. A sports wagering lounge may be located at a casino simulcasting facility. 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). |
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| 134 | 134 | | |
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| 135 | 135 | | c. No sports pool or online sports pool shall be offered or made available for wagering to the public by any entity other than a sports wagering licensee, pursuant to P.L.2018, c.33 (C.5:12A-10 et al.), an applicant for such license, operating such pool on behalf of a licensee, or an Internet sports pool operator, on behalf of a sports wagering licensee. Any person who offers a sports pool or an online sports pool without approval of the division or racing commission to do so is guilty of a crime of the fourth degree and notwithstanding the provisions of N.J.S.2C:43-3, shall be subject to a fine of not more than $25,000 and in the case of a person other than a natural person, to a fine of not more than $100,000 and any other appropriate disposition authorized by subsection b. of N.J.S.2C:43-2. |
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| 136 | 136 | | |
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| 137 | 137 | | d. The operator shall establish or display the odds at which wagers may be placed on sports events. |
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| 138 | 138 | | |
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| 139 | 139 | | e. An operator shall accept wagers on sports events only from persons physically present in the sports wagering lounge; through self-service wagering machines located in its facility as authorized by the agency issuing the sports wagering license; or through an online sports pool. A person placing a wager on a sports event shall be at least 21 years of age. |
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| 140 | 140 | | |
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| 141 | 141 | | f. (1) Any person who is: |
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| 142 | 142 | | |
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| 143 | 143 | | an athlete, coach, referee, or director of a sports governing body or any of its member teams; |
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| 144 | 144 | | |
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| 145 | 145 | | a sports governing body or any of its member teams; |
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| 146 | 146 | | |
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| 147 | 147 | | a player or a referee personnel member, in or on any sports event overseen by that person's sports governing body based on publicly available information; |
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| 148 | 148 | | |
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| 149 | 149 | | a person who holds a position of authority or influence sufficient to exert influence over the participants in a sporting contest, including but not limited to coaches, managers, handlers, athletic trainers, or horse trainers; |
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| 150 | 150 | | |
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| 151 | 151 | | a person with access to certain types of exclusive information on any sports event overseen by that person's sports governing body based on publicly available information; or |
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| 152 | 152 | | |
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| 153 | 153 | | a person identified by any lists provided by the sports governing body to the division and the racing commission, |
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| 154 | 154 | | |
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| 155 | 155 | | shall not be permitted to have any ownership interest in, control of, or otherwise be employed by an operator, a sports wagering licensee, or a facility in which a sports wagering lounge is located or place a wager on a sports event that is overseen by that person's sports governing body based on publicly available information. |
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| 156 | 156 | | |
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| 157 | 157 | | Any employee of a sports governing body or its member teams who is not prohibited from wagering on a sports event shall, nevertheless, provide notice to the division prior to placing a wager on a sports event. The direct or indirect legal or beneficial owner of 10 percent or more of a sports governing body shall not place or accept any wager on a sports event in which any member team of that sports governing body participates. The direct or indirect legal or beneficial owner of 10 percent or more of a member team of a sports governing body shall not place or accept any wager on a sports event in which that member team participates. Any person who violates this paragraph shall be guilty of a disorderly persons offense and shall be fined not less than $500 and not more than $1,000. |
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| 158 | 158 | | |
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| 159 | 159 | | (2) The prohibition set forth in paragraph (1) of this subsection shall not apply to any person who is a direct or indirect owner of a specific sports governing body member team and (i) has less than 10 percent direct or indirect ownership interest in a casino or racetrack or (ii) the shares of such person are registered pursuant to section 12 of the Securities Exchange Act of 1934, as amended (15 U.S.C. s.78l), and the value of the ownership of such team represents less than one percent of the person's total enterprise value. |
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| 160 | 160 | | |
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| 161 | 161 | | (3) An operator shall adopt procedures to prevent persons from wagering on sports events who are prohibited from placing sports wagers. An operator shall not accept wagers from any person whose identity is known to the operator and: |
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| 162 | 162 | | |
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| 163 | 163 | | whose name appears on the exclusion list maintained by the division pursuant to section 71 of P.L.1977, c.110 (C.5:12-71); |
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| 164 | 164 | | |
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| 165 | 165 | | whose name appears on any self-exclusion list maintained by the division pursuant to sections 1 and 2 of P.L.2001, c.39 (C.5:12-71.2 and C.5:12-71.3, respectively); |
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| 166 | 166 | | |
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| 167 | 167 | | who is the operator, director, officer, owner, or employee of the operator or any relative thereof living in the same household as the operator; |
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| 168 | 168 | | |
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| 169 | 169 | | who has access to nonpublic confidential information held by the operator; or |
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| 170 | 170 | | |
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| 171 | 171 | | who is an agent or proxy for any other person. |
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| 172 | 172 | | |
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| 173 | 173 | | (4) An operator shall adopt procedures to obtain personally identifiable information from any individual who places any single wager in an amount of $10,000 or greater on a sports event while physically present in a racetrack facility or a casino. |
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| 174 | 174 | | |
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| 175 | 175 | | 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. |
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| 176 | 176 | | |
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| 177 | 177 | | g. The holder of a sports wagering license may contract with an entity to conduct that operation, in accordance with the regulations of and approval by the division. That entity shall obtain a license as a casino service industry enterprise prior to the execution of any such contract, and such license shall be issued pursuant to the provisions of P.L.1977, c.110 (C.5:12-1 et seq.) and in accordance with the regulations promulgated by the division in consultation with the commission. That entity shall, upon approval of the division, expand on any initial license granted by the division prior to entering into any such contract. The approval shall be in accordance with the terms and conditions set forth by the division. |
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| 178 | 178 | | |
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| 179 | 179 | | h. If any provision of this act, P.L.2018, c.33 (C.5:12A-10 et al.), or its application to any person or circumstance, is held invalid, the invalidity shall not affect other provisions or applications of this act which can be given effect without the invalid provision or application, and to this end the provisions of this act are severable. |
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| 180 | 180 | | |
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| 181 | 181 | | i. An operator shall promptly report to the division: |
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| 182 | 182 | | |
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| 183 | 183 | | any criminal or disciplinary proceedings commenced against the operator or its employees in connection with the operations of the sports pool or online sports pool; |
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| 184 | 184 | | |
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| 185 | 185 | | any abnormal betting activity or patterns that may indicate a concern about the integrity of a sports event or events; |
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| 186 | 186 | | |
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| 187 | 187 | | any other conduct with the potential to corrupt a betting outcome of a sports event for purposes of financial gain, including but not limited to match fixing; and |
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| 188 | 188 | | |
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| 189 | 189 | | suspicious or illegal wagering activities, including the use of funds derived from illegal activity, wagers to conceal or launder funds derived from illegal activity, use of agents to place wagers, or use of false identification. |
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| 190 | 190 | | |
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| 191 | 191 | | The division is authorized to share any information under this section with any law enforcement entity, team, sports governing body, or regulatory agency the division deems appropriate. |
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| 192 | 192 | | |
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| 193 | 193 | | j. An operator shall maintain records of sports wagering operations in accordance with regulations promulgated by the division. |
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| 194 | 194 | | |
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| 195 | 195 | | k. A sports wagering licensee may, in addition to having a sports wagering lounge, conduct wagering on authorized sports events through one or more kiosks or self-service wagering stations located within its facility. Such self-service wagering stations located at a casino may offer any game authorized under rules established by the division. Such self-service wagering stations located at a racetrack may offer wagering only on authorized sports events and horse races. |
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| 196 | 196 | | |
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| 197 | 197 | | l. All wagers on sports events authorized under this provision shall be initiated, received and otherwise made within this State unless otherwise determined by the division in accordance with applicable federal and State laws. Consistent with the intent of the United States Congress as articulated in the Unlawful Internet Gambling Enforcement Act of 2006 (31 U.S.C. s.5361 et seq.), the intermediate routing of electronic data relating to a lawful intrastate wager authorized under this provision shall not determine the location or locations in which such wager is initiated, received or otherwise made. |
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| 198 | 198 | | |
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| 199 | 199 | | m. A sports wagering licensee shall not accept any wager on any sports event unless the sports event has been approved for wagering by the director. Except as otherwise provided in this subsection, no sports event shall be approved for wagering unless the director has certified that the sports event has appropriate policies and procedures to monitor the integrity of the athletes or competitors. In the absence of such certification, the director shall impose a wager limit of not more than $100 or a win limit of $500, whichever is greater, on the amount permitted to be wagered or won on such competitions or contests by any individual. |
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| 200 | 200 | | |
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| 201 | 201 | | n. Notwithstanding any other provision of P.L.2018, c.33 (C.5: 12A-10 et al.), P.L.1977, c.110 (C.5:12-1 et seq.), or P.L.2013, c. 27 (C.5:12-95.17 et seq.) to the contrary, the division may authorize wagers on electronic sports events to be accepted in a sports wagering lounge or by an internet sports wagering operator operating in partnership with a sports wagering licensee. |
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| 202 | 202 | | |
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| 203 | 203 | | (1) For electronic sports events which occur within the physical facilities of a casino licensee, within a racetrack that has a sports wagering license, or within a facility located in Atlantic City that has been approved by the division as suitable for hosting electronic sports events, and which events are sponsored by one or more casino licensees, racetracks or their authorized internet sports wagering providers or online internet gaming affiliates: |
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| 204 | 204 | | |
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| 205 | 205 | | (a) the division may authorize competitors in such events who are otherwise eligible to make sports wagers to make wagers on themselves or their own team with regard to an individual electronic sports contest; |
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| 206 | 206 | | |
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| 207 | 207 | | (b) the division may authorize the casino or other authorized facility in which the electronic sports event takes place, or the provider or affiliate which sponsors the event, to be the exclusive operator for the placing of wagers on the outcome of such electronic sports event; and |
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| 208 | 208 | | |
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| 209 | 209 | | (c) a casino, racetrack or the sponsor of the electronic sports event may accept wagers on such event provided a third party such as a game publisher certifies that the electronic sports event meets all integrity requirements of the division for being an authorized wagering event. |
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| 210 | 210 | | |
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| 211 | 211 | | (2) For electronic sports events which occur at physical facilities within the State but do not meet the criteria set forth in paragraph (1) of this subsection: |
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| 212 | 212 | | |
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| 213 | 213 | | (a) the division may authorize competitors in such events who are otherwise eligible to make sports wagers to make wagers on themselves or their own team with regard to an individual electronic sports contest; and |
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| 214 | 214 | | |
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| 215 | 215 | | (b) a casino, racetrack or the sponsor of the electronic sports event may accept wagers on such event provided that a third party, such as a game publisher, certifies that the electronic sports event meets all integrity requirements of the division for being an authorized wagering event. |
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| 216 | 216 | | |
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| 217 | 217 | | (3) Wagering in this State on electronic sports events occurring at physical facilities outside the State shall be permitted only upon the approval of the division and upon such terms and limitations as the division may impose. |
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| 218 | 218 | | |
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| 219 | 219 | | (4) An operator may accept wagers on electronic sports events which occur, or are hosted, exclusively on an online gaming system upon the approval of the division and upon such terms and limitations as the division may impose. |
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| 220 | 220 | | |
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| 221 | 221 | | (5) An operator may offer payouts to competitors in electronic sports events upon such terms and limitations as the division may impose. |
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| 222 | 222 | | |
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| 223 | 223 | | (cf: P.L.2021, c.350, s.1) |
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| 224 | 224 | | |
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| 225 | 225 | | |
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| 226 | 226 | | |
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| 227 | 227 | | 3. This act shall take effect immediately. |
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| 228 | 228 | | |
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| 229 | 229 | | |
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| 230 | 230 | | |
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| 231 | 231 | | |
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| 232 | 232 | | |
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| 233 | 233 | | STATEMENT |
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| 234 | 234 | | |
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| 235 | 235 | | |
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| 236 | 236 | | |
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| 237 | 237 | | Under current law, the Division of Gaming Enforcement is responsible for matters relating to, and arising from, sports wagering agreements, and is the entity responsible for approving the terms of an agreement with an Internet sports pool operator, which is licensed by the division, to operate an online sports pool on behalf of either a casino or a racetrack. This bill ensures that, while allowing sports wagering on electronic sports events, the division maintains its ability to oversee and approve sports wagering agreements involving either a casino or a racetrack, and that, where the agreement involves a racetrack, the New Jersey Racing Commission will be informed of the approval of such agreements. |
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