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 13:74-2.2 - Prerequisites to and procedures for grant of initial off-track wagering license to a horsemen's organization or a well-suited entity for an off-track wagering facility that is no longer part of a permit holder's share

Universal Citation: NJ Admin Code 13:74-2.2

Current through Register Vol. 56, No. 18, September 16, 2024

(a) A horsemen's organization or a well-suited entity, as provided for in N.J.S.A. 5:5-130.c, shall make an application for an initial off-track wagering license on a form prescribed by the Commission.

1. An application filed by a horsemen's organization shall be accompanied by a non-refundable filing fee of $ 2,500. To be considered by the Commission, the application must be filed after compliance with N.J.A.C. 13:74-2.5(a).

2. An application filed by a well-suited entity shall be accompanied by a non-refundable license fee in the amount of the successful bid pursuant to N.J.S.A. 5:5-130.d(2), which shall be distributed 50 percent to the New Jersey Thoroughbred Horsemen's Association and 50 percent to the Standardbred Breeders and Owners Association of New Jersey for programs designed to benefit the New Jersey horsemen.
i. To be qualified to submit an application for an initial off-track wagering license as a well-suited entity, a person, persons, association, corporation, partnership, organization, or other entity must be selected as a successful bidder in the bidding process set forth in this subsection.

ii. An initial off-track wagering license shall become available for public bid after:
(1) The Commission has determined, pursuant to N.J.A.C. 13:74-2.5(b) or 2.6(b) that an off-track wagering facility is available for bid; or

(2) The Commission has determined that no horsemen's organization has applied for the available off-track wagering license.

iii. In placing an available off-track wagering license up for bid, the Commission may utilize the services of the Division of Purchase and Property (Division), which is in and of the Department of the Treasury, to advertise, solicit, accept, and evaluate formal sealed bids pursuant to the Division's rules set forth in N.J.A.C. 17:12. The Commission may consult with the Division during the bidding process and ensure that the bidding process:
(1) Includes procedures for the establishment of a minimum bid threshold for the selection of a successful bidder;

(2) Notifies bidders that the awarding of a bid to a successful bidder shall be contingent upon that bidder's ability to establish its eligibility to be licensed as an off-track wagering licensee in compliance with N.J.S.A. 5:5-130 and (h) below;

(3) Requires that, in addition to submitting a monetary bid, a bidder shall submit a conceptual plan describing the off-track wagering facility the bidder intends to establish, the amenities it will offer, and its proposed or intended location; and

(4) Informs bidders that a successful bid shall be conditional upon the successful bidder's compliance with all the provisions of the Act and the applicable rules promulgated by the Commission.

iv. Upon receipt of any evaluation or recommendations, the Commission shall select the successful bidder. In selecting the successful bidder, the Commission shall consider and balance the following factors:
(1) The monetary value of the bid in comparison to other bids submitted;

(2) The level of quality of the proposed facility and the amenities it will offer in striving to be a first-rate experience for the customer that includes the provision of first-class dining facilities;

(3) The potential of the proposed facility and amenities to generate greater interest in the horse racing industry and the sport of horse racing in the State; and

(4) The proximity of the bidder's proposed or intended location for the off-track wagering facility and its impact on other planned or existing off-track wagering facilities and racetracks in the State.

v. The Commission's selection of the successful bidder and the basis for its decision shall be submitted to the Attorney General, for review and approval. The Commission's determination shall be deemed approved by the Attorney General if not affirmatively approved or disapproved by the Attorney General within 14 days of the date of submission. The decision of the Attorney General shall be deemed a final decision.

vi. The Commission's selection of a successful bidder and the Attorney General's approval of the successful bidder shall grant that bidder the right to file an application for the issuance of an initial off-track wagering license. Any grant of an initial off-track wagering license is contingent upon the bidder's full compliance with the application process and the bidder's ability to meet the eligibility standards set forth in this section. The Commission's selection of a successful bidder and the Attorney General's approval shall not be construed as granting that bidder the right to receive an initial off-track wagering license.

3. An initial application, accompanied by the non-refundable filing fee, shall be filed for each off-track wagering facility proposed by the applicant pursuant to this section.

(b) An application for an initial off-track wagering license filed pursuant to this section shall not be considered complete unless the applicant demonstrates through the application that the requirements of the Act have been satisfied and the applicant has completely answered each question within the application and complied with the requirements of this section.

(c) The initial application form, as prescribed by the Commission, shall include disclosure requirements concerning, but not limited to, the physical plan, location and the proposed hours of operation of the proposed off-track wagering facility subject of the specific application, including the space relationship between wagering and non-wagering related amenities, the number of jobs expected to be created at the proposed facility, the gross revenues expected to be generated by the facility, the fire evacuation plan for the proposed facility, the type of food and beverages to be available, which shall include the provision of first-class dining facilities and, if alcoholic beverages are to be offered at the proposed facility, whether the requirements of the Act, as amended, have been satisfied.

(d) The initial application shall have a written internal controls procedure attached, which shall set forth:

1. The procedures to be implemented to effectively operate and manage the proposed off-track wagering facility;

2. The procedures to be implemented to effectively maintain the integrity of wagering and the security of the proceeds from wagering within the proposed off-track wagering facility;

3. The procedures to be implemented to insure that the off-track wagering licensee complies with the requirements of the Act; and

4. The procedures to be implemented to ensure that a right of first refusal has been offered to certain individuals for certain employment opportunities within off-track wagering facilities.

(e) The initial application shall be accompanied by a certification, signed and dated by a high managerial agent of the applicant, attesting that the disclosures within the application and within its attachments are true, accurate, and complete.

(f) Any initial license granted pursuant to such application shall be for a period of one year.

(g) In evaluating an application for an off-track wagering license, the Commission shall consider the proximity of the applicant's proposed site to other planned or existing off-track wagering facilities and to racetracks in this State. If, in the opinion of the Commission, the establishment of the facility at its proposed location would be inimical to the interests of another planned or established off-track wagering facility, or to a State racetrack, the Commission shall reject the application and require the applicant to consider alternative sites for the proposed facility.

(h) In evaluating an application for an off-track wagering license filed by a horsemen's organization or a well-suited entity pursuant to N.J.S.A. 5:5-130.b and 130.c, the Commission shall assess the qualifications of the organization or entity and, in doing so, apply substantially similar standards and criteria to those the Commission applies to the Authority, permit holders and other off-track wagering licensees in the State. These standards and criteria shall enable the Commission to determine by clear and convincing evidence that the person or persons applying for licensure on behalf of the organization or entity are well-suited to receive licensure. The Commission may refuse to issue a license if it finds that the applicant has failed to demonstrate its suitability for licensure by clear and convincing evidence. These standards and criteria shall include, but not be limited to:

1. Proof of financial resources sufficient to enable the organization or entity to establish and conduct a quality off-track wagering facility or facilities with appropriately staffed and managed operations;

2. Evidence of good character, honesty, competency and integrity;

3. The absence of a conviction for a crime involving fraud, dishonesty or moral turpitude; and

4. All requirements and considerations set forth in N.J.A.C. 13:74-5.8.

(i) Following a determination that the application for an initial off-track wagering license is complete, the Executive Director shall review the application in accordance with the Act to insure that the application is in due form and meets the requirements of law in all respects. Upon being satisfied that these requirements are met, the Commission shall hold a public hearing in the municipality in which the proposed off-track facility is to be located within 45 days of the application being deemed complete. The cost of such a public hearing shall be borne by the applicant.

(j) Between 30 days and 60 days following the closing of the record on the public hearing described in (i) above, the Commission shall make a final determination on the application. The Commission shall approve the application if it determines that the applicant has demonstrated, by clear and convincing evidence, that:

1. The plan for the proposed facility, including its size, seating capacity, parking, and services to be provided reflects appropriate standards of quality including, but not limited to, first-class dining;

2. The grant of a license to establish the proposed off-track wagering facility will not be inimical to the interest of the public and the horse racing industry in this State; and

3. The proposed off-track wagering facility site is in an appropriate location.

(k) If the entity receiving the off-track wagering license is not a permit holder in this State, the grant of the license shall be contingent upon the licensee showing simulcast New Jersey races and allowing wagering thereon at the off-track wagering facility, subject to the rules and regulations of the Commission including, but not limited to, N.J.A.C. 13:74-8.2.

(l) An off-track wagering license shall be issued only if the permit holders in this State schedule at least the minimum number of race dates required by N.J.S.A. 5:5-156.

(m) The Commission's determination on the application shall be submitted to the Attorney General for review and approval. The determination of the Commission shall be deemed approved by the Attorney General if not affirmatively approved or disapproved by the Attorney General within 14 days of the date of submission. The decision of the Attorney General shall be deemed a final decision. The Commission shall issue the license upon approval of the Attorney General.

(n) Any off-track wagering license issued to the applicant shall specify the effective dates of the license, the location of the off-track wagering facility, the periods of time during the calendar year and the hours of operation during which off-track wagering is permitted at the facility and prescribe any other conditions or terms the Commission deems appropriate, including, but not limited to, the requiring of an annual audit of the off-track wagering licensee's books and records pertaining to off-track wagering.

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