New Jersey Administrative Code › Title 13 - LAW AND PUBLIC SAFETY › Chapter 74C - EXCHANGE WAGERING › Subchapter 2 - APPLICATION FOR INITIAL EXCHANGE WAGERING LICENSE; APPLICATION FOR RENEWAL OF EXCHANGE WAGERING LICENSE › Section 13:74C-2.1 - Exchange wagering initial license application process

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The Authority shall make an application
				for an initial exchange wagering license, on a form prescribed by the
				Commission, accompanied by a non-refundable filing fee of $ 2,500. The initial
				exchange wagering license shall be issued for a term of one year, which in the
				Commission's discretion, may be extended until December 31st of the year within
				which the initial exchange wagering license expires. The Commission shall
				extend the initial license period where the Authority, by clear and convincing
				evidence, establishes to the Commission's satisfaction that to do so would not
				negatively impact the integrity of the exchange wagering system.
(b) An application for an initial exchange
				wagering license shall not be considered complete unless:
1. The Authority demonstrates, and the
				Commission investigation into the application confirms, that the requirements
				of the Act have been satisfied;
2.
				The Authority has completely answered each question within the application and
				complied with the requirements of this section;
3. The Authority sets forth information about
				the operation of the exchange, the Authority's participation therein, the
				participation of other persons or entities in the operation of the exchange,
				information to establish that wagers placed through the exchange wagering
				system will be accurately processed, and information to establish that there
				will be sufficient safeguards to maintain the integrity of the horse racing
				industry in this State;
4. The
				Authority sets forth information establishing that the Commission's grant of
				the exchange wagering license to the Authority will serve to promote the
				economic future of the horse racing industry in this State, foster the
				potential for increased commerce, the employment and recreational opportunities
				in this State, and to preserve the State's open spaces;
5. The Authority discloses whether it shall
				conduct or operate the exchange itself, or whether, pursuant to and as
				authorized pursuant to
				N.J.A.C.
				13:74C-3.2, it intends to enter into a
				written agreement with an exchange management agent and/or exchange services
				agent;
6. The Authority discloses
				the physical location of all hardware and software, and administrative offices
				of the exchange wagering system, and whether or not the exchange wagering
				platform shall be stand-alone or shall integrate with a totalisator
				system;
7. The Authority discloses
				the number of jobs which the exchange wagering system is expected to generate,
				as well as employ in terms of pre-existing jobs, and whether the related job
				functions are proposed to occur in this State or outside the State;
8. The Authority attaches written internal
				control procedures of the Authority that set forth the procedures to be
				implemented: to effectively operate and manage the exchange wagering system; to
				ensure that wagers placed through the exchange wagering system will be
				accurately processed and that all aspects of wagering integrity and wagering
				recordkeeping will be maintained; to effectively ensure that the exchange
				wagering system operates with fiscal soundness and technological reliability;
				and to effectively ensure that there will be sufficient safeguards to maintain
				the integrity of the horse racing industry in this State. Where the Authority
				intends to enter into a written agreement with an exchange management agent
				and/or exchange services agent, the Authority may satisfy this requirement by
				including the internal control procedures of each such person or entity with
				its application. However, in such case, the Authority shall include with its
				application its own internal control procedures, which, at a minimum, include a
				certification that it has reviewed the internal control procedures of such
				exchange management agent, and/or exchange services agent, and finds them to be
				sufficient, and such internal control procedures of the Authority shall further
				include sufficient provisions to ensure that the Authority, as the exchange
				wagering licensee, maintains meaningful and adequate oversight controls with
				respect to both the exchange wagering system and its exchange wagering license;
				and
9. The initial application
				shall be accompanied by a certification, signed by a high managerial agent of
				the Authority, attesting that the disclosures within the application and within
				its attachments are true, accurate, and complete.