Current through Register Vol. 56, No. 18, September 16, 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.
2. By December 31 of the year after the
application is submitted, the horsemen's organization's application must be
deemed complete by the Commission. Prior to the application being deemed
complete, the applicant must submit all the necessary documentation set forth
in (a)1 above and rectify any deficiencies in the application via delivery of
all supplemental documentation and information requested, and in the timeframe
stated, by the Commission;
3. By
December 31 of the year following the year in which the application was deemed
complete, the off-track wagering facility referred to in the benchmark
requirements of (a)1 and 2 above shall be opened for business and begin
accepting wagers;
4. Each
horsemen's organization shall comply with the consecutive annual requirements
of (a)1 through 3 above until that horsemen's organization has opened all of
the off-track wagering facilities within its acquired share or the unopened
off-track wagering facilities within its acquired share will be subject to
forfeiture. For example, by December 31 of the year after the horsemen's
organization opened an off-track wagering facility for business, the horsemen's
organization must file an application for an initial license for at least one
other off-track wagering facility within its acquired share; and
5. Should no horsemen's organization petition
to acquire a permit holder's forfeited share within one year of the
Commission's written notice that a permit holder's right to appeal the
forfeiture of its share has been exhausted, the Commission shall begin the
process of making an off-track wagering facility within the forfeited share
available to a well-suited entity pursuant to
N.J.A.C.
13:74-2.6.
(b) The failure to meet the benchmarks in
this section shall constitute a basis for the denial of the initial off-track
wagering license for which the horsemen's organization applied. The failure to
meet the benchmarks in this section shall result in the Commission ordering
that the horsemen's organization shall forfeit its share of unopened off-track
wagering facilities to be established. A horsemen's organization's share of
unopened off-track wagering facilities to be established cannot be transferred
until that horsemen's organization has exhausted its right to appeal the
forfeiture.
