N.J. Admin. Code § 13:69Q-1.3

Current through Register Vol. 56, No. 21, November 4, 2024

Section 13:69Q-1.3 - General requirements for online fixed odds wagering

(a) Each licensed wagering operator accepting wagers from patrons online shall, prior to commencing operations, and annually thereafter, perform a system integrity and security assessment conducted by an independent professional selected by the operator. The Division shall impose a civil penalty of not less than $ 5,000 for failure to obtain the required security assessment. The party performing the assessment and the scope of the assessment shall be approved by the Division. The independent professional's report on the assessment shall be submitted to the Division and shall include:

1. A scope of the review;

2. The name and company affiliation of the individual(s) who conducted the assessment;

3. The date of the assessment;

4. Findings;

5. Any recommended corrective action, if applicable; and

6. The operator's response to the findings and recommended corrective action.

(b) A licensed wagering operator shall only accept online wagers from patrons that have been affirmatively located as being physically present in the State of New Jersey at the time of their wager, unless the Division has granted permission for acceptance of wagers from another jurisdiction. Licensed wagering operators shall employ a methodology approved by the Division that ensures patrons are located in New Jersey or other approved locations when placing wagers. The licensed wagering operator shall submit for approval to the Division a schedule of intervals at which a patron shall be geolocated while the account is being accessed.

(c) Licensed wagering operators shall offer fixed odds wagers only on races approved by the Racing Commission as suitable for parimutuel wagers.

1. If an event that originates within New Jersey is approved for parimutuel wagering, it can be offered for fixed odds wagering by all licensed wagering operators.

2. If an event originates outside New Jersey, it may be offered for fixed odds wagering provided the licensed wagering operator complies with all applicable laws, including the Interstate Horseracing Act, and further provided that the licensed wagering operator has received the consent of the track offering the event.

(d) Licensed wagering operators shall offer online fixed odds wagering to patrons 18 years of age or older and who are not self-excluded pursuant to any list maintained by the Racing Commission.

(e) Online fixed odds wagering shall only be engaged in by patrons who have established an online fixed odds wagering account.

(f) The message "If you or someone you know has a gambling problem and wants help, call 1-800-Gambler" shall be displayed prominently within the log on screen and a command to display this message on the log off screen shall be transmitted whenever the system detects a log off.

(g) When a patron logs on to an online fixed odds wagering system, the system shall display the date and time of the patron's previous log on.

(h) If a patron has suspended his or her account, a licensed wagering operator shall not send gaming-related electronic mail to such patron while the account is suspended.

(i) A client terminal used for online fixed odds wagering shall not contain patron account information or game logic that determines the outcome of any game.

(j) Client terminal software used for online fixed odds wagering shall not contain unauthorized data collection, file extraction, malware, or any other feature that compromises the integrity of the client terminal or the data contained therein.

(k) Software utilized for online fixed odds wagering shall either:

1. Continuously display the current time in the time zone where the game server is physically located and the time elapsed while in the current patron session; or

2. Cause a pop-up notification, at least every half-hour, to be prominently displayed on the client terminal advising the patron of the current time and the amount of time elapsed since his or her log on.

(l) A licensed wagering operator offering online fixed odds wagering shall have a supervising manager responsible for the operation and integrity of online fixed odds wagering. The supervising manager or designee shall be the main point of contact with the Division and shall immediately notify the Division upon detecting any person participating in online fixed odds wagering who is:

1. Engaging in, or attempting to engage in, or who is reasonably suspected of, cheating, theft, embezzlement, collusion, money laundering, or any other illegal activities;

2. Required to be excluded by having placed himself or herself on the list of excluded persons maintained by the Racing Commission; or

3. Prohibited by the licensed wagering operator from participating in online fixed odds wagering.

(m) A licensed wagering operator shall create, maintain, and file with the Division, internal controls for all aspects of fixed odds wagering operations prior to its implementation and any time a change is made thereafter. The internal controls shall include detailed procedures for system security, operations, accounting, and reporting of problem gamblers.

(n) A licensed wagering operator offering fixed odds wagering shall describe, in its internal controls, the method for securely issuing, modifying, and resetting a patron's account password, Personal Identification Number (PIN), or other approved security feature, where applicable. Any method shall include notification to the patron following any modification through electronic or regular mail, text message, or other manner approved by the Division. Such method shall include, at a minimum:

1. Proof of identity, if the account is established in person;

2. The correct response to two or more challenge questions; or

3. Strong authentication.

(o) All terms and conditions for online fixed odds wagering shall be included as an appendix to the internal controls of the licensee addressing all aspects of the operation, including the following:

1. Name of the party or parties with whom the patron is entering into a contractual relationship, including any licensee;

2. Patron's consent to have the operator confirm the patron's age and identity;

3. Rules and obligations applicable to the patron including, but not limited to:

i. Prohibition from allowing any other person to access or use his or her fixed odds wagering account;

ii. Prohibition from engaging in online fixed odds wagering activity, unless they are physically present in New Jersey or other location approved by the Racing Commission;

iii. Consent to the monitoring and recording by the operator and/or the Racing Commission of any wagering communications and geographic location information;

iv. Consent to the jurisdiction of the State of New Jersey to resolve any disputes arising out of fixed odds wagering; and

v. Prohibition against utilizing automated computerized software or other equivalent mechanism, such as a "bot," to engage in wagering;

4. Full explanation of all fees and charges imposed upon a patron, if applicable;

5. Availability of account statements detailing patron account activity;

6. Privacy policies, including information access;

7. Legal age policy, including a statement that it is a criminal offense to allow a person who is under the age of 18 to participate in online fixed odds wagering;

8. Full explanation of all rules applicable to dormant fixed odds wagering accounts;

9. Patron's right to set responsible gaming limits and to self-exclude;

10. Patron's right to suspend his or her online fixed odds wagering account; and

11. Information to be displayed on a patron protection page. The patron protection page shall be accessible to a patron during a patron session. The patron protection page shall contain, at a minimum, the following:

i. Method for changing or retrieving a password or other approved access security feature and the ability to choose "strong authentication" login protection;

ii. Method for filing a complaint with the licensed wagering operator;

iii. Method for filing, with the Division, an unresolved complaint after all reasonable means to resolve the complaint with the licensee have been exhausted, utilizing a Dispute Form on the Division's website;

iv. Method for obtaining a copy of the terms and conditions agreed to when establishing an online fixed odds wagering account;

v. Method for the patron to obtain account and wagering history from the licensed wagering operator;

vi. Notification that underage gambling is a criminal offense and that anyone who facilitates someone under the age of 18 to gamble has committed a criminal offense;

vii. Notification that the patron is responsible to configure his or her client terminal's auto-lock feature to protect the client terminal from unauthorized use; and

viii. Notification that a patron is prohibited from allowing any other person to access or use his or her online fixed odds wagering account.

(p) Whenever the material terms and conditions that apply to online fixed odds wagering are changed, the licensee shall require a patron to acknowledge acceptance of such change. Unless otherwise authorized by the Division, the patron's acknowledgement shall be date and time stamped by the online fixed odds wagering system.

(q) Equipment used to conduct online fixed odds wagering shall be located, with the prior approval of the Division, within the racetrack with whom the fixed odds wagering operator is affiliated or in another secure location approved by the Division. Backup equipment shall be located in a secure location approved by the Division.

(r) Online fixed odds wagering systems shall require a patron, following 15 minutes of user inactivity, as measured by the system, to reenter his or her username and password or to log in using another method approved by the Division;

(s) A licensed wagering operator shall comply with all Federal requirements including, but not limited to, suspicious activity reporting and W2-G reporting.

(t) A licensed gaming operator shall investigate each patron complaint related to online fixed odds wagering and provide a response to the patron within five calendar days. For complaints that cannot be resolved to the satisfaction of the patron, a copy of the complaint and the operator's response, including all relevant documentation shall be provided to the Racing Commission. The Racing Commission may refer complaints involving fixed odds wagering system equipment or server issues to the Division.

(u) An online fixed odds wagering system shall allow patrons to access a player protection page at all times while logged into their account. The player protection page shall include all features listed at (o)11 above.

(v) All licensed wagering operators with employees who have direct contact with patrons through phone, email, electronic chat, or other means shall implement training for those employees at the start of their employment, and at regular intervals thereafter, addressing areas set forth at (v)1, 2, and 3 below. If the training requirement pursuant to this subsection follows the standards set forth by the Council on Compulsive Gambling of New Jersey it shall be deemed sufficient.

1. Recognizing the nature and symptoms of problem gambling behavior and how to assist players in obtaining information regarding help for a gambling problem and self-exclusion programs;

2. Responding to patrons who may disclose that they have a gambling problem; and

3. Responding to reports from third parties, such as family members, about patrons who may have a gambling problem.

(w) Each online fixed odds wagering site or mobile application shall display the following:

1. A prominent message that states "If you or someone you know has a gambling problem and wants help, call 1-800-Gambler";

2. A direct link to the Council on Compulsive Gambling New Jersey, Inc., and one other organization based in the United States dedicated to helping people with potential gambling problems;

3. A clear statement of the operator's policy and commitment to responsible gaming; and

4. Rules governing self-imposed responsible gaming limits and the ability for the patron to establish those limits.

(x) A licensed wagering operator shall not unilaterally void any wager without the consent of the Division.

(y) Online fixed odds wagers shall not be subject to any adjustment of odds once a wager is made by a patron and accepted by an operator. However, licensed wagering operators may recalculate the starting post price at any time prior to the start of a race. Operators may make fixed odds wagers unavailable and offer only the starting post price to patrons if odds are being recalculated due to scratches or other events. Operators may, in their discretion, offer a best odds guarantee.

(z) If a fixed odds wagering account has no logins for a period of one year, it shall be considered dormant.

1. At least 30 days, but no more than 60 days, before an account will become dormant, a licensed wagering operator shall contact the accountholder at the email address for the account, informing the patron that if the account has no logins for a year, the account will be dormant and the funds therein lost.

2. If an account goes dormant, the operator shall close the account and send any funds remaining in the account to the Division for deposit in the State's General Fund.

N.J. Admin. Code § 13:69Q-1.3

Adopted by 53 N.J.R. 2081(a), effective 11/3/2021

Amended by 55 N.J.R. 1839(a), effective 8/21/2023