New Jersey Administrative Code › Title 13 - LAW AND PUBLIC SAFETY › Chapter 74 - OFF-TRACK WAGERING AND ACCOUNT WAGERING › Subchapter 2 - APPLICATION FOR INITIAL OFF-TRACK WAGERING LICENSE; APPLICATION FOR RENEWAL OF OFF-TRACK WAGERING LICENSE › Section 13:74-2.5 - Progress benchmarks that must be satisfied for a horsemen's organization to maintain its acquired share of off- track wagering facilities

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The
				horsemen's organizations shall become eligible to petition the Commission to
				obtain the right to apply for a permit holder's forfeited share of off-track
				wagering facilities when the permit holder's right to appeal that forfeiture is
				exhausted. When the permit holder's right to appeal is exhausted, the
				Commission shall notify, in writing, the horsemen's organizations that are
				eligible to petition to obtain the right to apply. From the date of this
				written notice, the horsemen's organizations shall have one year to petition
				the Commission for the right to apply for the permit holder's forfeited share
				of unopened off-track wagering facilities. The petition shall include general
				information about the financial and managerial ability of the horsemen's
				organization to open and operate the remaining off-track wagering facilities in
				the permit holder's forfeited share. A horsemen's organization may include
				supplemental information and documentation in support of its petition. The
				Commission may request additional information before rendering a decision on
				the petition(s) received. The Commission will review all such petitions and
				determine which petitioner will be awarded the right to apply for the forfeited
				share. The horsemen's organization granted the right to acquire the permit
				holder's forfeited share must file an application pursuant to
				N.J.A.C.
				13:74-2.2 and demonstrate to the satisfaction
				of the Commission that it continues to make progress on an annual calendar
				basis towards opening the off-track wagering facilities it has acquired in
				accordance with the requirements in (a)1 through 5 below, which shall commence
				on the date the Commission approves the petition of a horsemen's organization:
1. By December 31 of the year in which the
				horsemen's organization's petition is approved, the horsemen's organization
				must file an application for an initial license for at least one off-track
				wagering facility within its acquired share. This deadline may be extended, at
				the request of the horsemen's organization, to December 31 of the following
				year if the horsemen's organization's petition was approved on a date after
				June 30 or for other good cause shown. After filing the application for an
				initial off-track wagering license, the horsemen's organization shall also
				demonstrate compliance with each of the following requirements:
i. The applicant has submitted to the
				Commission all information and documentation required by
				N.J.A.C.
				13:74-2.2;
ii. The applicant has demonstrated to the
				Commission that the proposed off-track wagering facility is in a suitable
				location and the applicant has obtained fee title ownership of the proposed
				property or obtained a leasehold interest in the proposed property for a period
				of not less than five years;
iii.
				The applicant has obtained sufficient financial resources to pay for the
				design, construction, development, and other costs necessary to establish the
				proposed off-track wagering facility. The applicant shall provide to the
				Commission, a detailed project development budget informed by a qualified
				professional design and construction team and documentation that the applicant
				has either placed monies into escrow or secured an irrevocable letter of credit
				in an amount equal to or greater than the project development budget;
				and
iv. The applicant has
				demonstrated to the Commission that the operational capacity and market
				feasibility of the proposed off- track wagering facility will benefit the horse
				racing industry in this State. The applicant shall provide to the Commission:
(1) A five -year financial pro forma
				detailing the projected revenues and expenses of the proposed off-track
				wagering facility in sufficient detail to support an acceptable market rate of
				return on the project; and
(2)
				Detailed information on key individuals necessary to operate the proposed
				off-track wagering facility, which shall demonstrate that the applicant has the
				requisite staff to operate the facility.