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-2.2 - Exchange wagering license application renewal process

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The procedures in this section shall
				apply where the Authority has been granted an initial exchange wagering
				license, and seeks to renew that license, or where a successor in interest to
				the exchange wagering license makes proper application to the Commission for
				the transfer or assignment of said license, or for the renewal of said
				transferred or assigned license.
(b) The applicant may apply for a renewal
				license of either a one-year or two-year duration, on a form prescribed by the
				Commission, accompanied by a non-refundable filing fee of $ 2,500 for each year
				that the license is to be effective. In the event the applicant requests a
				renewal license to be effective for two years, the Commission may elect to
				grant a license for only one year, where it finds that any significant problems
				associated with or encountered by the exchange wagering system, which occurred
				between 12 months preceding the filing date of the applicant's renewal
				application and the date upon which the Commission considers such renewal
				application, require the imposition of a license condition for remedial action
				on the part of the applicant during the license renewal period. In such event,
				the applicant shall be reimbursed $ 2,500 of the $ 5,000 filing fee paid in
				connection with such application.
(c) The applicant shall file with the
				Commission a complete exchange wagering renewal application, on a form
				prescribed by the Commission, no earlier than 90 days prior to the date upon
				which it is issued and outstanding exchange wagering license is due to expire,
				and no later than 75 days prior to the date upon which it is issued and the
				outstanding exchange wagering license is due to expire. The renewed exchange
				wagering license shall expire on the 31st of December during the last year for
				which it is effective.
(d) An
				application for a renewal exchange wagering license shall not be considered
				complete unless:
1. The applicant demonstrates
				that the requirements of the Act have been satisfied;
2. The applicant has completely answered each
				question within the application and complied with the requirements of this
				section;
3. The applicant sets
				forth information about the operation of the exchange, the applicant's
				participation therein, the participation of other persons or entities in the
				operation of the exchange, the participation of each racetrack permitholder in
				the sharing of net exchange revenues, 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 applicant sets forth information
				establishing that the Commission's grant of the exchange wagering license to
				the applicant will serve to promote the economic future of the horse racing
				industry in this State, foster the potential for increased commerce,
				employment, and recreational opportunities in this State, and preserve the
				State's open spaces;
5. The
				applicant 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 applicant 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 applicant discloses
				the number of jobs that the exchange wagering system has generated or 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 this State;
8. The
				applicant attaches a written internal control procedures of the applicant,
				which 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 applicant with prior Commission approval has
				entered into, or intends to enter into, a written agreement with an exchange
				management agent and/or exchange services agent, the applicant may satisfy this
				requirement by including the sufficient internal control procedures of each
				such agent with its application. However, in such case, the applicant 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
				applicant shall further include sufficient provisions to ensure that the
				applicant, as the exchange wagering licensee, maintains meaningful and adequate
				oversight controls with respect to both the exchange wagering system and its
				exchange wagering license;
9. The
				applicant attaches a written report to its application identifying in detail
				any significant problems associated with or encountered by the exchange
				wagering system during the 12-month period preceding the date of the filing of
				the application with the Commission; and
10. The application form shall be accompanied
				by a certification, signed by a high managerial agent of the applicant,
				attesting that the disclosures within the application and within its
				attachments are true, accurate, and complete.