New Jersey Administrative Code › Title 13 - LAW AND PUBLIC SAFETY › Chapter 74C - EXCHANGE WAGERING › Subchapter 1 - GENERAL PROVISIONS › Section 13:74C-1.1 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this chapter,
				  shall have the following meanings, unless the context clearly indicates
				  otherwise.
"Act" means the Exchange Wagering Act,
				  P.L.
				  2011, c. 15(N.J.S.A.
				  5:5-168).
"Authority" means the New Jersey Sports and Exposition
				  Authority created by section 4 at
				  P.L.
				  1971, c. 137 (N.J.S.A. 5:10-4).
"Back" means to wager on a selected outcome occurring in a
				  given market.
"Commission" means the New Jersey Racing Commission, created
				  by section 1 at P.L.
				  1940, c. 17 (N.J.S.A. 5:5-22).
"Commission Executive Director" means the Executive Director
				  of the Commission.
"Corrective wager" means an exchange wager placed by the
				  exchange wagering licensee in a given market, under circumstances approved by
				  the Commission, in order to address the impact on that market of the
				  cancellation or voiding of a given matched wager or given part of a matched
				  wager.
"Dormant account" means an exchange wagering account,
				  established pursuant to the Act and this chapter, which has remained inactive
				  for a continuous period of 24 months in that, during such 24-month continuous
				  period, no valid exchange wagers were made utilizing funds in that account, no
				  valid deposits or credits were made to the exchange wagering account, and no
				  valid debits or withdrawals were made to the exchange wagering account.
"Exchange" means a system operated by the exchange wagering
				  licensee in which the exchange wagering licensee maintains one or more markets
				  in which residents of this State may back or lay a selected outcome on horse
				  races conducted within and outside this State.
"Exchange management agent" means a qualified person or
				  entity who the exchange wagering licensee enters into a written management
				  agreement with, to conduct or operate the exchange for it, and/or to act as its
				  agent in all exchange wagering matters approved by the Commission. An exchange
				  management agent may also, but is not required to, directly provide the
				  services of an exchange services agent.
"Exchange revenues" means all charges and fees of any kind
				  assessed or collected by the exchange wagering licensee, in connection with the
				  submission of any exchange wagers to the exchange wagering licensee, by
				  residents of this State.
"Exchange services agent" means a qualified person or entity
				  who the exchange wagering licensee, or exchange management agent on behalf of
				  the exchange wagering licensee, enters into a written services agreement with,
				  to directly provide the computer hardware and software, technological services,
				  and related support services, which services are necessary for aspects of the
				  conduct or operation of exchange wagering.
"Exchange wagers" means wagers, by residents of this State,
				  on the results of horse races conducted in this State or jurisdictions outside
				  this State, which wagers are submitted (in person, by direct telephone call, or
				  by communication through computer or other electronic media approved by the
				  Commission) to and accepted by the exchange wagering licensee to be posted,
				  that is, matched and pooled, in a market or markets on an exchange.
"Exchange wagering" means the form of parimutuel wagering,
				  authorized by this chapter, in which two or more persons place identically
				  opposing wagers in a given market, and which wagering is conducted by the
				  exchange wagering licensee pursuant to a valid exchange wagering license issued
				  by the Commission, and pursuant to and in compliance with the Act, this
				  chapter, any conditions established by the Commission therefor, and the
				  provisions of the Interstate Horse Racing Act of 1978,
				  15 U.S.C. §§
										3001 through
				  3007.
"Exchange wagering account" means the account established
				  with the exchange wagering licensee by a person, who is a New Jersey resident,
				  through which exchange wagers may be made by the account holder.
"Exchange wagering licensee" means the Authority, provided
				  that the Commission has granted its approval for the Authority to establish an
				  exchange as provided for in this chapter. "Exchange wagering licensee" may also
				  mean a successor in interest to the Authority, as defined in this
				  chapter.
"Exchange wagering system" means a system through which
				  exchange wagers are processed.
"Hub facility" means a facility in this State that acts as an
				  intermediary between each in-State wagering track or wagering outlet, and an
				  in-State sending track or host facility or out-of-State sending track or host
				  facility, with respect to the transmission of pari-mutuel wagering data and
				  other information related to pari-mutuel wagering, in connection with the type
				  of pari-mutuel wagering conducted pursuant to N.J.A.C. 13:70, 71, 72, 73, 74,
				  and 74B.
"Identically opposing wagers" means wagers in which one or
				  more persons offer to lay a selected outcome at the same price at which one or
				  more persons offer to back that same outcome, with the amount subject to the
				  lay being proportionately commensurate to the amount subject to the
				  back.
"Internal control procedures" means the written procedures
				  required to be maintained and updated, as necessary, for Commission approval,
				  by the exchange wagering licensee, any exchange management agent employed by
				  the exchange wagering licensee, and any exchange services agent employed by the
				  exchange wagering licensee or exchange management agent, that set forth
				  procedures to effectively operate and manage the exchange wagering system as
				  provided for in this chapter, including: 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 an exchange management agent or exchange services
				  agent is employed in connection with the exchange wagering system, the internal
				  control procedures of the exchange wagering licensee shall also include
				  meaningful and adequate oversight controls with respect to both the exchange
				  wagering system and its exchange wagering license.
"Interstate exchange pool" means an exchange wagering system
				  established within this State or in another state or foreign nation within
				  which is combined unmatched wagers on one or more horse races in order to form
				  identically opposing wagers.
"Lay" means to wager on a selected outcome not occurring in a
				  given market.
"Market" means, in relation to a given horse race or a given
				  set of horse races, a particular outcome that is subject to exchange wagering
				  as determined by the exchange wagering licensee.
"Matched wager" means the wager that is formed when two or
				  more persons are confirmed by the exchange wagering licensee as having placed
				  identically opposing wagers in a given market on the exchange.
"Net exchange revenues" means those exchange wagering
				  revenues that remain after certain deductions are made from exchange revenues,
				  as required pursuant to
				  N.J.A.C.
				  13:74C-3.5(a)1  through 5,
				  and which are to be distributed between and amongst the exchange wagering
				  licensee and racetrack permitholders pursuant to
				  N.J.A.C.
				  13:74C-3.5(a)6.
"Net winnings" means the aggregate amounts payable to a
				  person, through an exchange wagering account established by that person
				  consistent with this chapter, as a result of that person's winning matched
				  wagers in a pool, less the aggregate amount paid by that person as a result of
				  that person's losing matched wagers in that pool.
"Off-time" means the official time when wagering is ceased
				  prior to the start of a horse race, or in the event the transmission of data
				  conveying the official time of cessation of wagering to the exchange wagering
				  licensee is interrupted or corrupted, the time wagering ceases in accordance
				  with the internal control procedures of the exchange wagering license.
"Pari-mutuel" means any system whereby wagers with respect to
				  the outcome of a horse race are placed with, or in, a wagering pool conducted
				  by an authorized person or entity, and in which the participants are wagering
				  with each other and not against the person or entity conducting the wagering
				  pool.
"Pool" means the total of all matched wagers in a given
				  market.
"Price" means the odds for a given exchange wager.
"Racetrack permitholder" means an entity, which holds a
				  racetrack permit, issued by the Commission, to operate the Freehold Raceway,
				  Monmouth Park, New Meadowlands Racetrack, or any other racetrack for which a
				  permit to lawfully conduct racing may be issued by the Commission, each
				  eligible to enter into a business agreement with the exchange wagering
				  licensee, pursuant to this chapter, as concerns participation in exchange
				  wagering and the distribution of net exchange wagering revenues.
"Successor in interest" means the person or entity to whom,
				  with the prior approval of the Commission and Attorney General, the initial
				  exchange wagering license, or the renewed exchange wagering license, has been
				  transferred or assigned.
"Supervisor of Mutuels" means the Commission employee, who
				  reports to the Commission Executive Director, and who acts on behalf of the
				  Commission in overseeing the conduct of pari-mutuel wagering in this State,
				  including exchange wagering.
"Totalisator" means a computer situated within the in-State
				  hub facility that, among other things, directly or indirectly through one or
				  more totalisators receives pari-mutuel wagering information, calculates payoffs
				  for winning pari-mutuel tickets, generates reports with respect to such
				  information, and in the event that the transmission of data from a sending or
				  host racetrack has been interrupted, automatically ceases wagering in
				  accordance with the internal control procedures of the hub facility, in
				  connection with the type of pari-mutuel wagering conducted pursuant to N.J.A.C.
				  13:70, 71, 72, 73, 74, and 74B.
"Unmatched wager" means a wager or portion of a wager placed
				  in a given market within an exchange that does not become part of a matched
				  wager because there are not one or more available exchange wagers in that
				  market with which to form one or more identically opposing
				  wagers.