N.J. Admin. Code § 13:69A-9.4

Current through Register Vol. 56, No. 17, September 3, 2024

Section 13:69A-9.4 - Casino license, racetrack, Internet gaming, and sports wagering fees

(a) For the purposes of this section, the following words and terms shall have the meanings ascribed to them unless a different meaning clearly appears from the context:

1. "Casino license" means a plenary casino license issued under Section 87 of the Act;

2. "Licensed casino facility" means a casino hotel facility as to which a casino license has been issued to authorized gaming operations;

3. "Casino operator" means a casino licensee is designated as the primary obligor for payment of gross revenues taxes and Internet gaming revenue taxes in accordance with N.J.A.C. 13:69L;

4. "Internet gaming permit fee" means the total fee that is required by the Act and this subchapter to be paid prior to issuance or renewal of an Internet gaming permit;

5. "Initial license fee" or "issuance fee" means the total fee, that is required pursuant to the Act and this subchapter to be paid prior to consideration or issuance of a plenary casino license or racetrack facility license to an unlicensed applicant and that is based upon the cost of investigating and considering the application;

6. "Responsible Internet Gaming Fee" means the total fee that is required pursuant to the Act and this subchapter to be paid annually to the Department of Human Services and allocated pursuant to N.J.S.A. 5:12-95.29.d;

7. "Resubmission fee" or "renewal fee" means the total fee, that is required pursuant to the Act and this subchapter to be paid prior to consideration or issuance of a resubmission of a plenary casino license or renewal of a racetrack facility license to a plenary licensee and that is based upon the cost of investigating and considering the application; and

8. "Sports wagering license fee" means the total fee that is required pursuant to the Act and this subchapter to be paid prior to issuance or renewal of a sports wagering license.

(b) No application for the issuance or retention of a casino license or an Internet gaming permit shall be accepted for filing by the Division unless a nonrefundable deposit of $ 100,000 shall first have been paid in full for each application. For a casino license, such deposit shall be applied to the initial license fee or retention fee. For the issuance or renewal of an Internet gaming permit, such deposit shall be applied to the initial permit fee or renewal fee.

(c) The following fee amounts shall apply:

1. Not less than $ 200,000 for a casino license or a casino license resubmission;

2. Not less than $ 400,000 for an initial Internet gaming permit;

3. Not less than $ 250,000 for the renewal of an Internet gaming permit;

4. A $ 250,000 Responsible Internet Gaming Fee upon the filing for an initial or renewal of an Internet gaming permit;

5. $ 100,000 for an initial sports wagering license. Fifty percent of the initial sports wagering license fee paid by casinos and racetracks shall be deposited into the State General Fund for appropriation by the Legislature to the Department of Health to provide funds for evidence-based prevention, education, and treatment programs for compulsive gambling that meet the criteria developed pursuant to P.L. 1993, c. 229, section 2 (N.J.S.A. 26:2-169), such as those provided by the Council on Compulsive Gambling of New Jersey, and including the development and implementation of programs that identify and assist problem gamblers; and

6. A minimum of $ 100,000 for a sports wagering license renewal, with the final cost to be determined by the Director after consideration of the costs for renewal, enforcement, and gambling addiction. The percentage of the renewal fee to be directed into the State General Fund for appropriation by the Legislature to the Department of Health to provide funds for evidence-based prevention, education, and treatment programs for compulsive gambling that meet the criteria developed pursuant to P.L. 1993, c. 229, section 2 (N.J.S.A. 26:2-169), such as those provided by the Council on Compulsive Gambling of New Jersey, and including the development and implementation of programs that identify and assist problem gamblers shall be established by the Director on an annual basis after considering the licensure and enforcement costs of regulating sports wagering.

(d) Pursuant to N.J.S.A. 5:12-141.1, in addition to the license fee for a sports wagering license set forth in (c) above, each initial racetrack and casino sports wagering license applicant shall be required to submit a retainer of $ 250,000 to the Casino Control Fund to cover initial, start-up, and ongoing operational costs of the Division for the regulation and enforcement of sports pool and online sports pool operations and for law enforcement functions performed by the Division of State Police and the Division of Criminal Justice. Such retainer shall be segregated within the Casino Control Fund and funds not expended during the initial license period shall be refunded to all licensees on a pro rata basis.

(e) Licensed casino facilities, racetracks that host sports wagering facilities and activities, Internet gaming operations, and online or retail sports book wagering operations shall be required to pay for the efforts of the Division and the Commission on matters directly related to the licensed casino facility, racetrack that host sports wagering facilities and activities, Internet gaming operations, and online or retail sports book wagering operations at hourly rates to be set by the Division in accordance with this subsection, and to reimburse any unusual costs or out-of-pocket expenses incurred by the Division or the Commission in regard to such matters.

1. Prior to the start of each fiscal year, the Division shall determine the hourly fee rates to be paid by licensed casino facilities, racetracks that host sports wagering facilities and activities, Internet gaming operations, and online or retail sports book wagering operations, pursuant to this subchapter. These rates shall be based upon the hourly costs of services provided by Division professional staff and the Commission professional staff during the fiscal year, as estimated from the projected fiscal year budget for the Division and the Commission.

2. The projected hourly fee rates established pursuant to (e)1 above may be adjusted by the Division during the fiscal year based upon the final fiscal year budget approved for the Division and the Commission by the Legislature.

3. Notice of the hourly fee rates established pursuant to (e)1 above shall be published in the New Jersey Register.

(f) Licensed casino facilities and racetracks that host sports wagering facilities and activities shall be required, as determined by the Division, to pay a prorated share of the amount of any liability to the Casino Control Fund existing as of the close of business on June 30 of each fiscal year, or as assessed during the fiscal year based upon a projected deficit. Allocated charges for operators of licensed casino facilities and racetracks that host sports wagering facilities and activities shall be billed among all operators. Allocated charges for Internet gaming and online sports wagering operations shall be identified based upon the pro rata market share related to New Jersey operations of those two revenue streams for the immediately preceding calendar year.

1. The share for each licensed casino facility that operates a casino gaming floor that is assessed an amount to cover a deficit in the Casino Control Fund shall be no more than that proportion of the deficit that is equal to the proportion of the Division's expenditures on casino gaming compared to the Division's overall expenditures. For example, if 20 percent of the Division's overall expenditures are attributable to casino gaming, not more than 20 percent of the total deficit may be associated with casino licensees. Any days during which a necessary casino license or operation certificate for a licensed casino facility has been suspended shall also be counted in determining the share of such facility. Further, the operation of the facility by a conservator or trustee shall be deemed continued operation by the casino operator for these purposes. The obligation to pay the assessed share of a licensed casino facility shall be that of the casino operator; provided, however, that if a change of casino operators occurs during the fiscal year, each such operator shall be liable for an amount of the share apportioned according to the time during which each operator functioned. Any share calculated in accordance with this section shall be paid in full upon receipt of a bill by the Division.

2. The share for each casino conducting an Internet gaming operation that is assessed an amount to cover a deficit in the Casino Control Fund shall be no more than that proportion of the deficit that is equal to the proportion of the Division's expenditures on Internet gaming operations compared to the Division's overall expenditures. For example, if 20 percent of the Division's overall expenditures are attributable to Internet gaming, not more than 20 percent of the total deficit may be associated with Internet gaming operations.

3. The share for each casino and racetrack that hosts sports wagering facilities and activities and online or retail sports book wagering operations that is assessed an amount to cover a deficit in the Casino Control Fund shall be no more than that proportion of the deficit that is equal to the proportion of the Division's expenditures on sports wagering compared to the Division's overall expenditures. For example, if 20 percent of the Division's overall expenditures are attributable to sports wagering, not more than 20 percent of the total deficit may be associated with a casino or racetrack that hosts sports wagering facilities and activities and online or retail sports wagering operations.

4. A licensee operating in multiple industry fields may be assessed an amount that is reflective of each of its activities. For example, an entity that is a casino gaming operator, an Internet gaming operator, and an online or retail sports book wagering operator may be assessed an amount reflective of each activity.

5. The Division may, from time-to-time during the fiscal year, project the deficit share for each licensed casino facility or racetrack that hosts sports wagering facilities and activities incurred to that time and require payment of such projected deficit share on a monthly or other periodic basis during the fiscal year.

6. The Division may allocate costs for any agency conducting New Jersey gaming or criminal law enforcement, investigative, or regulatory activities to the extent that normal and recurring billing processes are projected to be insufficient to cover the costs of that agency.

N.J. Admin. Code § 13:69A-9.4

Amended by 50 N.J.R. 1652(a), effective 7/16/2018

Administrative Change, 50 N.J.R. 1820(a).

Amended by 51 N.J.R. 1514(b), effective 10/7/2019

Administrative Change, 54 N.J.R. 1978(a), effective 9/21/2022

Amended by 56 N.J.R. 38(a), effective 1/2/2024