New Jersey Introduces Online Gambling, Sports Betting Bill

Breaking News from Gambling911.com as New Jersey Senator Raymond Lesniak has authored a bill that would make sports betting legal in the state.

Gambling911.com obtained a copy of the measure.

Additionally, Lesniak wants to "go for the gold" so to speak, whereby he will also be looking to legalize most forms of online gambling on games that are currently being offered in the Atlantic City casinos. 

The Interactive Media Entertainment & Gaming Association is working with Lesniak in his efforts to legalize online sports betting, poker and casino games. 

An Act permitting wagering at casinos in-person and through an account wagering system using telephone, Internet and other means on the results of professional and collegiate sport or athletic events, subject to voter approval, and amending and supplementing  P.L.1977, c.110 (C.5:12-1 et seq.).

         Be It Enacted by the Senate and General Assembly of the State of New Jersey:

         1.         (New section)  As used in this act:

         "casino" means a licensed casino or gambling house located in Atlantic City at which casino gambling is conducted pursuant to the provisions of P.L.1977, c.110 (C.5:12-1 et seq.).

         "commission" means the New Jersey Casino Control Commission established pursuant to section 50 of P.L.1977, c.110 (C.5:12-50).

         "operator" means a casino which has elected to operate a sports pool.

         "prohibited sports event" means any amateur non-collegiate sport or athletic event, or any event, regardless of where it is held, involving a professional team or collegiate team whose home field, court, or base is in New Jersey, or any event played in New Jersey involving a professional team or collegiate team.

         "professional team" means two or more persons who join together to participate in sports or athletic events and who receive compensation in excess of actual expenses for their participation in such events.

         "collegiate sport or athletic event" means a sport or athletic event offered or sponsored by or played in connection with a public or private institution that offers educational services beyond the secondary level.

         "sports event" means any game or match except a prohibited sports event.

         "sports pool" means the business of accepting wagers on any sports event by any system or method of wagering other than the pari-mutuel method of wagering.

         "sports wagering lounge" means an area in a licensed casino wherein a sports pool is operated.

         "account wagering system" means a system of wagering using telephone, computer or other method of wagering communication, as approved by the commission, the components of which shall be located in this State.  The components shall include, but not be limited to, the systems operator, permanent information databases, system monitoring equipment, writers and patron service representatives.

         2.         (New section) a. In addition to casino games permitted pursuant to the provisions of P.L.1977, c.110 (C.5:12-1 et seq.), a casino may operate a sports pool upon the approval of the commission and in accordance with the provisions of this act and applicable regulations promulgated  pursuant to this act.

         b.         A sports pool shall be operated only in a sports wagering lounge or through an account wagering system.  The lounge shall conform to all requirements concerning square footage, design, equipment, security measures and related matters which the commission shall by regulation prescribe.  The space required for the establishment of a lounge shall not reduce the space authorized for casino gaming activities as specified in section 83 of P.L.1977, c.110 (C.5:12-83).

         c.         The operator of a sports pool shall establish the odds it will pay on wagers placed on sports events.

         d.         An operator shall accept wagers on sports events only from persons physically present in the sports wagering lounge or from registered New Jersey residents through an account wagering system.

         3.         (New section)  a.  All persons engaged directly in wagering-related activities conducted by a casino in a sports wagering lounge shall be licensed as casino employees or casino key employees, as appropriate.  All other employees of the casino licensee or of the person or entity conducting the sports pool who are working in the sports wagering lounge shall be licensed or registered in accordance with regulations of the commission.

         b.         Each licensed casino which operates a sports pool shall designate one or more casino key employees who shall be responsible for the operation of the sports pool.  At least one such casino key employee shall be on the premises whenever sports wagering is conducted.

         4.         (New section)  Except as otherwise provided by this act, the commission shall have authority to regulate sports pools to the same extent that the commission regulates other casino games.  The commission shall promulgate regulations necessary to carry out the provisions of this act, including, but not limited to, regulations governing the:

         a.         amount of cash reserves to be maintained by operators to cover winning wagers;

         b.         acceptance of wagers on a series of sports events;

         c.         maximum wagers which may be accepted by an operator from any one patron on any one sports event;

         d.         type of wagering tickets which may be used;

         e.         method of issuing tickets;

         f.         method of accounting to be used by operators;

         g.         types of records which shall be kept; and

         h.         use of credit and checks by patrons.

         5.         (New section)  Each operator shall, subject to approval by the commission, adopt comprehensive house rules governing sports wagering transactions with its patrons.  The rules shall specify the amounts to be paid on winning wagers and the effect of schedule changes.  The house rules, together with any other information the commission deems appropriate, shall be conspicuously displayed in the sports wagering lounge and included in the terms and conditions of the account wagering system, and copies shall be made readily available to patrons.

         6.         Section 24 of P.L.1977, c.110 (C.5:12-24) is amended to read as follows:

         24.  "Gross Revenue"-- The total of all sums actually received by a casino licensee from gaming operations, including operation of a sports pool, less only the total of all sums actually paid out as winnings to patrons; provided, however, that the cash equivalent value of any merchandise or thing of value included in a jackpot or payout shall not be included in the total of all sums paid out as winnings to patrons for purposes of determining gross revenue.  "Gross Revenue" shall not include any amount received by a casino from casino simulcasting pursuant to the "Casino Simulcasting Act," P.L.1992, c.19 (C.5:12-191 et al.).

(cf: P.L.2009, c.36, s.2)

         7.         For the purpose of complying with Article IV, Section VII, paragraph 2 of the State Constitution, this act shall be submitted to the people for their approval or rejection at the next general election to be held 70 or more days following the date of its enactment.

         8.         This voter referendum shall be submitted to the people in the following manner and form:

         There shall be printed on each official ballot to be used at the general election, the following:

         a.         In every municipality in which voting machines are not used, a legend which shall immediately precede the question, as follows:

         If you favor the proposition printed below make a cross (X), plus (+), or check (T) in the square opposite the word "Yes."  If you are opposed thereto make a cross (X), plus (+) or check (T) in the square opposite the word "No."

         b.         In every municipality the following question:

         9.         Sections 7 and 8 shall take effect immediately and the remainder of this act shall take effect immediately upon voter approval of this act at the general election.

STATEMENT

         If approved by the voters at a referendum held at the next general election, this bill would allow licensed casinos in Atlantic City to conduct in-person wagering, and wagering through an account wagering system, on professional and collegiate sport or athletic events under regulation by the New Jersey Casino Control Commission. Wagering on sports events, as defined by this bill, would not include wagering on any amateur non-collegiate sport or athletic event, or any event, regardless of where it is held, involving a professional or collegiate team whose home field, court, or base is in New Jersey, or any event played in New Jersey involving a professional or collegiate team.    Wagers on a sports event could only be placed in-person in a casino sports wagering lounge, or through an account wagering system available only to registered State residents. 

         Sports wagering gross revenue would be subject to the existing 8% casino gross revenue tax,  the proceeds of which are dedicated to programs for senior citizens and disabled residents, and the investment alternative tax, which results in the investment of 1.25% of gaming revenue in community and economic development projects across the State.

Permits wagering at casinos in person and through an account wagering system on certain professional and collegiate sport or athletic events.