N.J. Admin. Code § 13:74-3.1

Current through Register Vol. 56, No. 24, December 18, 2024

Section 13:74-3.1 - Prerequisites to and procedures for grant of initial account wagering license

(a) An application for an initial account wagering license shall be made by the Authority on a form prescribed by the Commission, accompanied by a non-refundable filing fee of $7,500.

(b) An initial application for an account wagering license shall not be considered complete unless:

1. The Authority is in compliance with the minimum live race date requirements of the Act;

2. The Authority includes with the application a copy of a fully executed participation agreement which the Authority has entered into with all parties or successors in interest that held a valid race permit in 2000 consisting of an aggregate 40 live dates (who are each in compliance with said permit, who each are in compliance with any minimum live race date requirements of the Act, and who are each in good standing with the Commission and State); and

3. The Authority has completely answered each question within the application and complied with this section.

(c) The initial application form, as prescribed by the Commission, shall include disclosure requirements concerning, but not limited to:

1. The Authority's participation in the proposed account wagering system;

2. The participation of persons other than the Authority in the account wagering system;

3. The physical plan, location of and particular functions of the phone bank facility to be utilized in connection with the account wagering system;

4. A detailed description of the intended account wagering operating system, including the methods by which account wagers are proposed to be taken; and

5. The proposed maximum hours of operation during which wagers are to be taken as to each method.

(d) The initial application form shall have attached a written internal controls procedure which shall set forth the procedures to be implemented to effectively operate and manage the racing and pari-mutuel aspects of the account wagering system, and the procedures to be implemented to effectively maintain the integrity of wagering and the proceeds from wagering associated with the account wagering system. The internal control procedures shall include a procedure to foster and insure that the account wagering licensee complies with the requirement of the Act creating a right of first refusal as to certain individuals for certain employment opportunities associated with the account wagering system.

(e) The completed initial application shall be accompanied by a certification, signed and dated by a high managerial agent of the Authority, attesting that the disclosures within the application and its attachments are true, accurate and complete. Any initial license granted pursuant to such application shall be for a one year period.

(f) The Commission in its discretion may accept an initial application for an account wagering license prior to the effective date of the Act, but it may not conduct a hearing on the application or render a decision on the application until after the effective date of the Act. If the Commission accepts such an application, the date of receipt for purposes of the time restrictions within this section shall be deemed to be the effective date of the Act.

(g) Following a determination that the application for an initial account wagering license is complete, the Executive Director shall within 14 days review the application in accordance with the Act to insure that the application is in due form and meets the requirements of law in all respects. Upon the Executive Director being satisfied that these requirements are met, the Executive Director shall at the cost of the Authority cause a hearing to be held before the Commission within 45 days of the receipt of the completed application, certification and non-refundable fee. Any such hearing may be held at a properly and regularly convened public meeting of the Commission, and at a location at the Commission's discretion.

(h) Between 30 days and 60 days following the closing of record on the public hearing described in (g) above, the Commission shall make a final determination on the application. The Commission shall approve the application if it determines that the Authority by clear and convincing evidence has demonstrated, through its application and internal control procedures, that:

1. Wagers placed through the proposed account wagering system will be accurately processed, with sufficient safeguards to maintain the integrity of the horse racing industry in this State;

2. The grant of a license to establish the proposed account wagering licensee will not be inimical to the interests of the public and the horse racing industry in this State;

3. The participation agreement meets the requirements of the Act to the satisfaction of the Commission and Attorney General; and

4. All parties to the participation agreement are licensed by the Commission, or otherwise qualified to participate in account wagering.

(i) The Commission's determination on the application shall be submitted to the Attorney General, for review and approval, within three business days following the Commission's determination. The determination of the Commission shall be deemed approved by the Attorney General if not affirmatively approved or disapproved by the Attorney General within 14 days of the date of submission. The decision of the Attorney General shall be deemed a final decision. The Commission shall issue the license upon approval of the Attorney General.

(j) An account wagering license issued to the Authority shall specify the effective dates of the license, the methods of account wagering authorized by the license, and other conditions or terms the Commission may deem appropriate, including, but not limited to, the requiring of an annual audit of the account wagering licensee's books and records pertaining to account wagering, as well as the imposition of any condition consistent with N.J.A.C. 13:74-11.2.

N.J. Admin. Code § 13:74-3.1