LAW AND PUBLIC SAFETY
NEW JERSEY RACING COMMISSION
Casino Simulcasting Rules
Proposed Readoption: N.J.A.C. 13:72
Authorized by: New Jersey Racing Commission, Frank Zanzuccki,
Executive Director
Authority: Casino Simulcasting Act, N.J.S.A. 5:12-191
et seq., 5:12-210 and 5:5-30
Calendar Reference: See Summary below for explanation
of exception to calendar requirement.
Proposal Number: PRN 2003-2
Submit written comments by March 7, 2003 to:
Michael Vukcevich, Deputy Director
New Jersey Racing Commission
140 East Front Street
P.O. Box 088
Trenton, New Jersey 08625-0088
The agency proposal follows:
Summary
Pursuant to N.J.S.A. 52:14B-5.1c, N.J.A.C.
13:72 is scheduled to expire June 13, 2003.
The current rules have been reviewed pursuant to the Executive
Order and the Commission has found them to continue to
be reasonable, necessary, and
effective
for the purposes for which they were originally promulgated, that is, to
regulate the casino simulcast industry. The Commission, in past years,
has acted to
keep its rules governing casino simulcasting current. It has proposed various
amendments to those rules on an ongoing basis, in response to industry
concerns, concerns of the public and as a result of evolving
circumstances. The Commission
will continue to review its rules on a regular basis, proposing and adopting
amendments as necessary, desirable and as appropriate.
The current rules proposed for readoption have
had an advantageous impact on the
regulation and conduct of casino simulcasting industry participants
and racetrack permit
holders. The chapter proposed for readoption contains nine
subchapters, described as follows:
Subchapter 1 , General Provisions, contains
definitions applicable to terms used in
Chapter 72 as they are related to casino simulcasting, and incorporates the
rules of the Racing
Commission in conjunction with the casino simulcasting rules being proposed
for readoption.
Subchapter 2, Conduct of Casino Simulcasting
contains rules of general
applicability which govern the use of a hub facility, receipt
of races from racetracks, the location
of the simulcasting facility, the hours of operation, ticket claims and the
expiration of pari-mutuel
tickets.
Subchapter 3, Casino Simulcasting Facility establishes
requirements for the actual
wagering space, location and conduct of the internal function and the operation
of the casino
simulcasting facility within the participating casino property.
Subchapter 4, Pari-Mutuel Pools establishes
requirements and conditions for the
placement of pari-mutuel wagers, acceptance of wagers, take-out, cancellation
of tickets, refunds,
display of wagering odds and the closure or malfunction of equipment
in or used by the casino
simulcasting facility.
Subchapter 5, Licensing of Employees, contains
the procedures and fees for licensure of
employees of a casino simulcasting facility.
Subchapter 6, Licensing and Registration of
Entities and their Employees, requires all
sending racetracks to be licensed or registered with the Commission
as well as the licensure of
manufacturers, suppliers and repairers of simulcast wagering equipment,
hub facilities and its
employees, and only other enterprise transacting business with a
casino licensee or hub facility.
Subchapter 7, Reconciliation with Sending Tracks
and Payments to Racing Commission
sets forth requirements for the disbursement of funds derived from
pari-mutuel wagering to
sending tracks, the deposit of funds for outstanding pari-mutuel
wagering tickets and the
transmission of underpays and other moneys due to the Commission.
Subchapter 8, Race Information, requires casino
simulcasting licensees
to provide patrons
with accurate race program information.
Subchapter 9, Supervisors of Mutuels and Verifiers
mandates the presence of a
Supervisor of Mutuels at a hub facility and sets forth his duties.
As the Commission has provided a 60-day comment period on this
notice of proposal,
this notice is excepted from the rulemaking calendar requirement
pursuant to N.J.A.C. 1:30-
3.3(a)5.
Social Impact
The rules proposed for readoption provide various
procedures, requirements and
conditions necessary for the orderly administration and conduct
of the casino simulcasting
industry and participants therein. The racing industry, with
its allowance for wagering, is an
industry which affects the public interest and thus requires
strong regulation. By its rules, the
Racing Commission attempts to keep undesirables and individuals
convicted of serious crimes
from participation in the sport. The readoption of these rules
will assist the Commission in
achieving its statutory mandate to provide revenue to the State
of New Jersey, to insure the
orderly continuation of a racing circuit to maintain and enhance
the employment it provides,
to provide the public with a recreational opportunity, and
to improve the State’s
competitive
position with neighboring jurisdictions where horse racing
is permitted.
The implementation of casino simulcasting, pursuant
to N.J.S.A. 5:12-191 et seq., has had a beneficial social impact
in that
it results in
the depositing of funds in the Casino Simulcasting Fund to
be appropriated for the benefit
of horse breeding and development in New Jersey. Additionally,
one half of one percent of all moneys wagered on casino simulcasting
is
to be
deposited in the Casino Simulcasting Fund and appropriated
exclusively for services
to
benefit eligible senior citizens. Further, all gross revenues
from authorized games which are conducted in casino simulcasting
facilities
are subject
to
an eight percent tax for deposit in the Casino Revenue Fund
to be
appropriated exclusively for programs to benefit eligible senior
citizens and disabled
residents of New Jersey. The proposed rules for readoption,
in that they enhance these
purposes, are considered by the Commission as having a positive
social impact.
Economic Impact
The readoption of the rules will have no anticipated
economic impact upon the
participants in racing, since the provisions subject of the
readoption are currently in effect.
However, various economic impacts emanate as a result of the
operation of the regulations
subject of this readoption proposal and an economic impact
may arise as a result of
monetary fines or the resulting inability to participate in
race-related activities.
Any economic impact resulting from casino simulcast
wagering is due to the legislature’s
decision to authorize the described activities, and not the
implementation of these rules. In
addition to the funds derived from casino simulcasting which
inure to the benefit of eligible
senior citizens and disabled residents (as explained above).
New Jersey racetracks and
horsemen’s groups share directly in the revenue from
casino simulcasting and indirectly from the
increased moneys for purses that result at live race meetings.
Casino licensees have incurred the costs of
construction and equipment related to setting
up their casino simulcasting facilities. However, the conduct
of simulcasting and other
permissible gaming in these facilities has generated revenue
for casino licensees.
There are cost associated with licensure or
registration in accordance with the Casino Control Commission
rules by those
individuals
employed in casino
simulcasting, as well as those enterprises that are subject
to license or registration under and pursuant to N.J.S.A. 5:12-91.
Additionally,
costs associated with
licensure or registration by the Racing Commission are incurred
by the hub
facilities, employees and vendors of the hub facility. Further,
the compensation of the Supervisor of Mutuels, an employee
or
designee of the Racing Commission
who is required to be present at the hub facility at all times
when
casino simulcasting is being conducted, is reimbursed to the
Racing Commission
by the operator of the hub facility.
Federal Standards Statement
A Federal standards analysis is not required
because the rulemaking requirements of the Racing Commission
are dictated by statute,
N.J.S.A. 5:5-22, et
seq., 5:12-191, et seq. and 5:12-210, and the rules proposed
for readoption do
not implicate or exceed established Federal standards.
Jobs Impact
The readoption of these rules will not have
any impact upon the number of persons
employed by racetracks, or casinos by the Racing Commission
licensees or other employers.
The operation of the Commission’s rules subject of the
readoption, however, serve to
create and generate jobs in New Jersey in a positive fashion.
Agriculture Industry Impact
Because the Commission’s rules governing
horse racing set forth criteria related to
the participation and qualification of horses to compete in
New Jersey, they have a positive
indirect impact on aspects of New Jersey’s agriculture
industry. This is because many horses
which compete in racing in New Jersey are situated on farm
lands in New Jersey, many of
which farms are issued licenses by the Racing Commission. The
availability of racing in this
State, and the advantageous impact of the Commission’s
regulations toward insuring the
integrity, fairness and safe conduct of racing, indirectly
serves to encourage the establishment of
and maintenance of horse farms, as well as horse breeding facilities
in New Jersey. Accordingly,
while the proposed readoption will not present any new impact
to agriculture, a readoption of the
Racing Commission’s regulations regarding casino simulcasting
beyond the June 13, 2003 expiration will result in continued
benefits to the agriculture
industry.
Regulatory Flexibility Analysis
With respect to casino licensees, none of which
qualifies as a small business under the Regulatory Flexibility
Act, N.J.S.A.
52:14B-16 et seq., no regulatory
flexibility analysis is required. Similarly, New Jersey racetrack permitholders,
and the operator of the licensed hub facility are not small businesses as defined
under the Regulatory Flexibility Act and no regulatory flexibility analysis
is required as to them. To the extent that these rules impact on any small
businesses, that impact is due to the legislature’s decision to implement
casino simulcasting and not to the implementation of these rules.
The rules in N.J.A.C. 13:72 require that suppliers,
manufacturers and repairers of simulcasting wagering equipment
to casino licensees of hub facilities be
licensed by the Casino Control Commission as gaming related casino service
industries. The Casino Control Commission and Racing Commission are unaware
of any small businesses which currently would be affected by this requirement.
However, even if it were, such licensure is required by the Casino Simulcasting
Act and the required licensure cannot therefore be exempted.
Other enterprises conducting business with a
casino licensee or hub facility with respect to casino simulcasting,
as well as sending tracks, have vendor
registration forms filed with the Casino Control Commission. Additionally,
these vendor registrations are, for the most part, located outside of New
Jersey. To the extent that the few registrations located in New Jersey
are small businesses,
no costs or compliance result since the vendor registration forms are filed
by the casino licensee or hub facility on behalf of the enterprise. However,
vendors of the hub facility which may constitute small businesses, as well
as the hub facility and its employees, are additionally subject to the
license jurisdiction of the Racing Commission. The hub facility
houses the “totalisator” and
generates the reports which are utilized to reconcile simulcast wagers with
sending tracks and calculate payments due to the Racing Commission. It also
performs other integral functions, such as locking the totalisator and conducting
manual merges with sending tracks in the event of a transmission failure. For
these reasons, the licensing requirements and other controls imposed upon the
hub facility and its vendors are not only amply warranted, but vitally necessary
to the integrity of casino simulcasting.
Smart Growth Impact
The proposed readoption of N.J.A.C. 13:72 is
not anticipated to have an impact on the achievement of smart
growth and
implementation of the State
Development
and Redevelopment Plan as defined under Executive Order No. 4 (2002).
Full text of the proposed readoption may be
found in the New Jersey Administrative code at
N.J.A.C. 13:72.
