N.J. Admin. Code § 13:69Q-1.7

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

Section 13:69Q-1.7 - Licensing requirements for entities offering fixed odds wagering

(a) Racetracks and the Authority shall be licensed by the Division as a licensed wagering operator. Any other entity authorized to operate fixed odds wagering, either online or retail, shall be licensed by the Division as a casino service industry enterprise and shall be considered a licensed wagering operator. A racetrack or the Authority, if licensed by the Division as a casino service industry enterprise, or an applicant for such licensure, shall not be required to file the additional application form.

(b) The application form for licensed wagering operators who are not already licensed as casino service industry enterprises, and who are not required at (a) above to be licensed by the Division as casino service industry enterprises, shall be available on the Division's website.

1. The application form shall be completed in its entirety and shall be filed with the Division along with a non-refundable fee of $ 25,000.

2. The Authority shall file a certification that it is licensed by the Racing Commission and shall pay a non-refundable fee of $ 25,000.

3. Each racetrack offering fixed odds wagering shall pay a non-refundable fee of $ 25,000. If a race track authorizes third parties to conduct retail or online fixed odds wagering, it shall pay a non-refundable fee of $ 25,000 for each third party it so authorizes.

4. The fee to be a licensed wagering operator shall be deposited into a separate program account of the Casino Control Fund for use by the Division in the regulation of fixed odds wagering. This account will be created by the Division, in consultation with the Department of Law and Public Safety.

5. The Division, in its discretion, may order a portion of the fees deposited into the separate program account be used for responsible gaming programs.

(c) Once an applicant to be a licensed wagering operator not required at (a) above to be a casino service industry enterprise has filed an application, the Division shall determine its completeness within 14 days. Within 60 days of the receipt of a completed application, the Division shall determine whether the license shall be issued. If the Division approves the application, the matter shall be transmitted to the Attorney General, who shall review the Division's findings with regard to the application. Within 14 days, the Attorney General shall determine whether to accept the Division's findings. If the Attorney General has not decided within 14 days, the Division's decision shall stand as a final agency decision.

(d) If the Division determines to issue a fixed odds wagering license, the initial approval shall be valid for a period of one year. Thereafter, a race track shall file an application for renewal for a five-year period.

1. The Authority shall file a certification every five years that it is licensed by the Racing Commission.

2. A race track offering fixed odds wagering shall be required to pay an annual fee to keep the five-year license active. The annual fee shall be non-refundable and shall be determined by the Division at the start of each fiscal year. A race track shall pay a non-refundable fee for each third party it authorizes to operate fixed odds wagering.

(e) Once the Division has deemed an application submitted to become a licensed wagering operator is complete, the Division may authorize the entity to commence operations with regard to fixed odds wagering for a period of not more than six months. This permission may renewed for additional periods of not more than six months. This permission shall be superseded upon the issuance of a license by the Division.

1. Entities required pursuant to (a) above to obtain a casino service industry enterprise license to participate in fixed odds wagering may obtain a transactional waiver from the Division during the pendency of its license application.

(f) If the amount of the initial fee set forth at (b) above or the renewal fee set forth at (d) above is not sufficient to pay for the costs of the investigation of the initial or renewal application, the Division shall require the additional costs of the investigation to be paid by the licensed wagering operator and may require periodic payments towards such deficiency.

(g) Oddsmakers, manufacturers of totalisator equipment, and any other entity who, in the exclusive discretion of the Division, is providing goods or services directly related to the wagering or revenue aspects of fixed odds wagering, shall file a registration form with the Division as a fixed odds vendor. The registration form shall be available on the Division's website. Failure to file a completed registration form within 45 days of the signing of a contract with a licensed wagering operator shall result in the entity being prohibited from conducting direct or indirect business with a licensed wagering operator for a minimum of 10 days or until the registration form is filed with the Division, whichever period is greater.

1. Any entity that holds a Casino Service Industry Enterprise (CSIE) license or Ancillary CSIE license issued by the Division, any applicant for such licensure, and any vendor registered with the Division as a casino vendor registrant shall not be required to file a fixed odds registration form and shall be deemed to be a fixed odds vendor who is subject to the jurisdiction of the Division.

(h) The Director shall have discretion to order any fixed odds licensee, registrant, or other participant to be called forward at any time to a higher level of licensure.

(i) Each licensed wagering operator offering either retail or fixed odds wagering shall cause a third-party accounting firm to conduct an annual audit of the entity's fixed odds wagering operations. The third-party accounting firm shall file a certification with the Division that it conducted the audit. The licensed wagering operator shall make the results of the audit, including any reports and findings, available to the Division, if requested.

N.J. Admin. Code § 13:69Q-1.7

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

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