Current through Register Vol. 56, No. 18, September 16, 2024
(a) A
casino licensee may offer an annuity jackpot. Prior to offering an annuity
jackpot, a casino licensee or slot system operator shall obtain Division
approval. No annuity jackpot shall be permitted unless it expressly prohibits
the winner from encumbering, assigning, or otherwise transferring in any way
his or her right to receive the future cash payments, except as permitted by
5:12-100.1.
(b) Whenever an annuity
jackpot is won, the casino licensee or slot system operator shall determine if
any portion of the winnings is subject to withholding for a jackpot winner who
is:
1. In arrears of a child support order;
or
2. A former recipient of Aid to
Families with Dependent Children or Work First New Jersey, food stamp benefits,
or low-income home energy assistance benefits with an overpayment that has not
been repaid.
(c) If any
amount is subject to withholding pursuant to (b) above, the casino licensee
shall withhold payment until the Probation Division of the Superior Court or
the Department of Human Services authorizes payment.
(d) A casino licensee or slot system which
offers an annuity jackpot shall provide clear notice of the following:
1. That the displayed jackpot amount will be
paid over time;
2.The number of
payments and the time interval between payments; and
3. That the right to receive the jackpot
payments may not be encumbered, assigned, or otherwise transferred in any way
except as permitted by 5:12-100.1 and the rules of the Division.
(e) A casino licensee may offer an
option to a patron who has won an annuity jackpot to be paid a single cash
payment in lieu of future installments in an amount that is equal to the
present value of the face amount of the jackpot ("cash payout option") provided
that:
1. The present value shall be
calculated by applying a discount rate to the amount of the jackpot taking into
consideration the number of years that the annuity would otherwise be payable;
and
2. The discount rate shall
equal the prime rate as defined in Title 54 of the New Jersey Statues or other
rate as approved by the Division.
(f) When an annuity jackpot lock up occurs, a
slot attendant or above shall prepare and present to a cage or slot booth
cashier an Annuity Request, which includes:
1. The date and time;
2. The asset number and location;
3. The display amount;
4. The patron's name and identification
information; and
5. The patron's
Social Security number.
(g) When an annuity jackpot lock up occurs,
the casino licensee or slot system operator shall generate a Jackpot Report in
a manner approved by the Division. The Jackpot Report shall be provided to a
cage or slot booth cashier of the casino licensee where the lock up occurred.
The Jackpot Report shall include, at a minimum:
1. The date and time;
2. The asset number and location;
3. A game or link description;
4. The slot system operator, if
applicable;
5. The name of casino
licensee; and
6. The amount to be
paid.
(h) Upon receipt
of the Annuity Request and Jackpot Report, either a slot department supervisor
or a cage or slot booth cashier shall prepare a Jackpot Acknowledgement which
shall include, at a minimum, the following information:
1. The date;
2. The patron's name and address;
3. The patron's Social Security
number;
4. The jackpot amount as
recorded on the Jackpot Report;
5.The amount of the annual payments
calculated as a factor of the number of years over which the annuity shall be
paid;
6. If applicable, the offer
of a cash payout option;
7. A
disclosure that the casino licensee or the slot operator will provide
information to the patron within three business days as to payment
options;
8. A disclosure that the
patron's name and identification information shall be provided to the
Department of Human Services in order to determine if any portion of the
winnings shall be subject to withholding if the annuity jackpot winner is:
i. In arrears of a child support order;
or
ii. Is a former recipient of Aid
to Families with Dependent Children or Work First New Jersey, food stamp
benefits, or low-income home energy assistance benefits with an overpayment
that has not been repaid;
9. The signature of a slot attendant or
above; and
10. The signature of the
patron.
(i) The Annuity
Jackpot Acknowledgement form shall either be a multi-part form or copied for
distribution, at a minimum, to the following:
1. Casino accounting;
2. The slot system operator, if applicable;
and
3. The patron.
(j) Upon confirmation that the
patron is not subject to payout withholding, a casino licensee or slot system
operator shall issue cash, check, or electronic payment to the patron in an
amount equal to the first installment of the annuity. The payment shall be
documented in accordance with internal controls.
(k) If confirmation is received that the
patron is subject to a withholding, the casino licensee or slot system operator
shall issue cash, check, or electronic payment to the patron in an amount equal
to the first installment of the annuity less any required withholding. The
payment shall be documented in accordance with internal controls.
(l) Nothing in this section shall prevent a
casino licensee or slot system operator, in its discretion, from paying a
patron prior to completing the checks for withholding required by this section
provided that the checks are subsequently completed in accordance with the
licensee's internal controls. The casino licensee shall be liable for the
payment of any amount subject to withholding up to the amount it paid to the
patron.
(m) The casino licensee or
slot system operator shall, within three business days, provide a Jackpot
Acceptance form for patron completion and notify the patron either personally
or by certified mail of the following:
1. The
date of notice;
2. The date of the
annuity jackpot;
3. The amount and
number of years over which the annuity is payable;
4. The amount of the annual
payments;
5. If applicable, the
cash payout value and method of calculation;
6. A disclosure that a part or all of the
payment shall be withheld if the Department of Human Services determines that
the winner is subject to payout withholding; and
7. A statement that the patron shall have 60
days to return the Jackpot Acceptance form selecting the annuity or, if
applicable, the cash option.
(n) Upon receipt of the patron's Jackpot
Acceptance form, a casino licensee or slot system operator shall:
1. If the patron selects the cash payout
option, issue a check or authorize an electronic payment to the patron within
five business days in an amount equal to the present value of the cash payout
amount less the amount of the initial annuity installment and any required
withholding; or
2. If the patron
selects the annuity payout option, issue a check or authorize an electronic
payment on each anniversary date of the win, for the duration of the annuity,
in the amount equal to the annuity payment less any required withholding. Prior
to each payment, the casino licensee or slot system operator shall determine if
the payment is subject to any withholding pursuant to this section.
(o) On or before the fifth day of
each month, a casino licensee or slot system operator shall submit to the
Division a summary report of all annuity jackpots paid to one or more patrons
during the prior month.
1. A casino licensee
individually offering an annuity jackpot shall be entitled to a gross revenue
deduction as follows:
i. The present value of
the cash payout amount; or
ii. The
first installment of the annuity jackpot and the amount used to fund the
remainder payments.
2. A
slot system operator shall calculate the total gross revenue deduction in the
same manner as (o)1 above and prorate the deduction amount to each casino
licensee participating in the annuity jackpot. The slot system operator shall
distribute reports to the Division and each participating casino licensee
delineating the respective gross revenue deduction amounts.
