New Jersey Administrative Code › Title 13 - LAW AND PUBLIC SAFETY › Chapter 74 - OFF-TRACK WAGERING AND ACCOUNT WAGERING › Subchapter 1 - GENERAL PROVISIONS › Section 13:74-1.1 - 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:
"Account holder" means a resident of this State, 18 years of
				  age or older, who establishes an account through which account wagers are
				  placed.
"Account wagering" means a form of pari-mutuel wagering in
				  which an account holder may deposit money in an account with the account
				  wagering licensee and then use the account balance to pay for pari-mutuel
				  wagers by the account holder.
"Account wagering licensee" means the New Jersey Sports and
				  Exposition Authority, provided that the Commission has granted its approval for
				  the Authority to establish an account wagering system.
"Account wagering system" means the system through which
				  account wagers are processed by the account wagering licensee.
"Act" means the Off-Track and Account Wagering Act,
				  P.L.
				  2001, c. 199, as
				  amended.
"Applicant" means the New Jersey Sports and Exposition
				  Authority or another entity that submits an application to the Commission for a
				  license to establish and conduct an off-track wagering facility pursuant to the
				  Act.
"Authority" means the New Jersey Sports and Exposition
				  Authority created by section 4 of P.L. 1971, c.137 (5:10-4 ).
"Closed-loop system" means a system of telephone, computer or
				  other electronic based wagering as approved by the Commission, whose key
				  elements shall be located in this State. The key elements shall include, but
				  not be limited to, the hub facility, permanent information databases, banking
				  databases, system monitoring equipment and account information representatives
				  including those situated at the phone bank. The non-key elements of such
				  system, as determined by the Commission upon application to and approval by it,
				  may be located outside this State.
"Commission" means the New Jersey Racing Commission created
				  by section 1 of P.L. 1940, c.17 (5:5-22 ).
"Delay period" means the time difference between off-time and
				  the start of a simulcast horse race.
"Dormant account" means a 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 pari-mutuel wagers were made utilizing funds in that account, no valid
				  deposits or credits were made to the wagering account, and no valid debits or
				  withdrawals were made to the wagering account.
"Executive Director" means the Executive Director of the
				  Commission.
"Horsemen's organization" means the New Jersey Thoroughbred
				  Horsemen's Association, the Standardbred Breeders' and Owners' Association of
				  New Jersey, the Thoroughbred Breeders' Association of New Jersey or another
				  organization or group representing a majority of horsemen who participate in
				  horse race meetings conducted within this State.
"Hub facility" means a facility located in this State which
				  acts as an intermediary between each off-track wagering facility and an
				  in-State sending track or out-of-State sending track; and which acts as an
				  intermediary between the account wagering licensee and an in-State host track
				  or out-of-State host track, with respect to the transmission of pari-mutuel
				  wagering data. The hub facility shall be responsible for generating all reports
				  necessary for the reconciliation of payments between the off-track wagering
				  licensee or off-track wagering facilities, the account wagering licensee,
				  sending tracks and the Commission. The hub facility may also, but is not
				  required to, perform other functions, including the transmission of pictures of
				  simulcast horse races to off-track wagering facilities and pari-mutuel
				  non-wagering data.
"In-State host track" means a racetrack within this State
				  that is operated by a permit holder which conducts a horse race upon which
				  account wagers are placed.
"In-State sending track" means a racetrack within this State
				  that is operated by a permit holder and is equipped to conduct off-track
				  simulcasting.
"In-State track" means an in-State host track or an in-State
				  sending track.
"Internal control procedures" means the written procedures
				  required to be maintained and updated as necessary, for Commission approval,
				  by:
1. The off-track wagering licensee, which sets forth the
				  operational procedures to effectively operate the racing and pari-mutuel
				  wagering aspects of each off-track wagering facility and to protect the fiscal
				  soundness, technical reliability and integrity of wagering;
2. The account wagering licensee, which sets forth the
				  operational procedures to effectively operate the racing and pari-mutuel
				  wagering aspects of the account wagering system and to protect the fiscal
				  soundness, technical reliability and integrity of wagering; and
3. The hub facility, which sets forth the operational
				  procedures to effectively operate the hub facility in connection with off-track
				  wagering, account wagering, any other racing related functions performed by the
				  hub facility, and to protect the fiscal soundness, technical reliability and
				  integrity of wagering.
"Interstate common pool" means a pari-mutuel pool established
				  in this State, in another state or in another country, within which is combined
				  the pari-mutuel pools of one or more receiving tracks located in one or more
				  states or countries, upon a race at an out-of-State sending track or
				  out-of-State host track for purposes of establishing payoff prices to winning
				  pari-mutuel ticket holders in various jurisdictions participating in the
				  interstate common pool.
"Manual merge" means the process used in the event of a
				  systems or communications failure by which the off-track wagering licensee, the
				  account wagering licensee and hub facility transmits to an in-State track or
				  out-of-State track through telephone, facsimile machine, cellular telephone or
				  other means of communication, the off-track wagering licensees or account
				  wagering licensees pari-mutuel information and the process by which the
				  in-State track or out-of-State track includes such pari-mutuel wagers in the
				  common pari-mutuel pool in such event.
"Minus pari-mutuel pool" means a pari-mutuel pool in which
				  insufficient monies have been wagered to permit the minimum payoffs of winnings
				  required by the rules of pari-mutuel wagering governing the race.
"New Jersey Racing Industry Special Fund" means the fund
				  established pursuant to section 27 of the Act,
				  5:5-153.
"Off-time" means when wagering is ceased prior to the start
				  of a horse race by a signal transmitted from an in-State track or out-of-State
				  track to the totalisator, through which the account wagering system or an
				  off-track wagering facility is conducting wagering, or in the event that the
				  transmission of data has been interrupted, by the totalisator in accordance
				  with the internal controls of the hub facility.
"Off-track simulcasting" means the simultaneous video
				  transmission which may include a simultaneous audio transmission, of horse
				  races conducted live at in-State or out-of-State racetracks to off-track
				  wagering facilities and pari-mutuel wagering at those off-track wagering
				  facilities on the results of those races.
"Off-track wagering" means pari-mutuel wagering at an
				  off-track wagering facility within this State.
"Off-track wagering facility" means a licensed facility
				  within this State, other than a racetrack or casino simulcast facility operated
				  within the premises of an Atlantic City casino, where no live racing is
				  conducted.
"Off-track wagering licensee" means the Authority or its
				  assignee or assignees or another entity to which the Commission has granted its
				  approval to conduct an off-track wagering facility as provided for in the
				  Act.
"Out-of-State host track" means a racetrack in a jurisdiction
				  other than this State, the operator of which is lawfully permitted to conduct a
				  horse race meeting and which conducts horse races upon which account wagers may
				  be placed.
"Out-of-State sending track" means a racetrack in a
				  jurisdiction other than this State, which is equipped to conduct off-track
				  simulcasting and the operator of which is lawfully permitted to conduct a horse
				  race meeting and to provide simulcast horse races to off-track wagering
				  facilities within this State.
"Out-of-State track" means an out-of-State host track or an
				  out-of-State sending track.
"Outstanding pari-mutuel ticket" means a winning or
				  refundable pari-mutuel ticket that is not claimed within six months of sale,
				  which six month period is to be calculated as set forth in this chapter.
"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, and in which the participants are wagering with each
				  other and not against the person conducting the wagering pool.
"Participation agreement" means the written contract entered
				  into prior to February 23, 2011, the effective date of
				  P.L.
				  2011, c. 26, that
				  provides for the establishment or implementation of either an off-track
				  wagering facility or facilities or an account wagering system. Each such
				  contract shall set forth the manner in which the off-track wagering facility or
				  facilities or the account wagering system shall be managed, operated and
				  capitalized, as well as how expenses and revenues shall be allocated and
				  distributed by and among the Authority and the other eligible participants
				  subject to the agreement.
"Permit holder" means the holder of an annual permit issued
				  by the Commission to conduct a horse race meeting within this State.
"Phone bank" means a facility located within this State
				  operated by the account wagering licensee or an assignee or assignees, as
				  approved by the Commission, the functions of which facility shall include the
				  processing of all account wagers placed by telephone and, unless otherwise
				  approved by the Commission, such other functions related to account wagering
				  and the administration thereof as set forth in this chapter.
"Racetrack" means the facility within this State where a
				  permit holder conducts a live horse race meeting or meetings with pari-mutuel
				  wagering.
"Racing costs" means the prospective and actual costs for all
				  licensing, investigation, operation, regulation, supervision and enforcement
				  activities and functions performed by the Commission.
"Scratch" means the withdrawal of an entered horse from a
				  race after the closing of overnight entries.
"Self-service pari-mutuel machine" means a mechanical,
				  electrical or other device connected to a totalisator which upon the insertion
				  of a credit voucher, coupon or currency, or any combination thereof, and the
				  selection of a permissible wager, automatically issues a pari-mutuel ticket
				  together with a credit voucher for any balance which may be due; and which,
				  upon the insertion of a winning or refunded pari-mutuel ticket, reads the
				  ticket and automatically issues a credit voucher in the amount of the correct
				  payout; and which, upon the entry of an account wagering account number and
				  correct personal identification number by a patron, allows the patron to access
				  his or her wagering account for the purposes of placing wagers by selecting a
				  permissible simulcast wager in an amount not to exceed the balance of the
				  patron's account.
"Share" means the number of off-track wagering facilities
				  allocated to the Authority or a permit holder in the participation agreement
				  for off-track wagering required by
				  5:5-130(a), which
				  has been reviewed and approved by the Commission and Attorney General pursuant
				  to 5:5-130(b), minus
				  any off-track wagering facility or facilities that are no longer within the
				  number allocated to the Authority or permit holder pursuant to the operation of
				  P.L.
				  2011, c. 205
				  (5:5-130(b)(1) 
				  ).
"Simulcast horse races" means horse races conducted at an
				  in-State sending track or an out-of-State sending track, as the case may be,
				  and transmitted simultaneously by picture to a receiving track or an off-track
				  wagering facility.
"Successor in interest" means:
1. The party to whom, with the prior approval of the
				  Commission, the annual permit to conduct a horse race meeting issued by the
				  Commission has been transferred; or
2. The party to whom, with the prior approval of the
				  Commission and Attorney General, an initial off-track wagering license, renewed
				  off-track wagering license, initial account wagering license, or renewed
				  account wagering license has been transferred or assigned.
"Takeout" means that portion of a wager that is deducted from
				  or not included in the pari-mutuel pool, and which is distributed other than to
				  persons placing wagers.
"Totalisator" means a computer situated within the hub
				  facility which, among other things, directly or indirectly through one or more
				  other 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 track has been interrupted, automatically ceases wagering in accordance
				  with the internal control procedures of the hub facility.
"Wagering account" means an account through which an account
				  holder may place account wagers through the account wagering system.
"Well-suited entity" means a person, persons, association,
				  corporation, partnership, organization or other entity authorized to apply for
				  an off-track wagering license pursuant to
				  5:5-130(c), which
				  meets the standards, criteria and qualifications set forth in
				  13:74-2.2 by clear and convincing
				  evidence as determined by the Commission.