New Jersey Administrative Code
Title 13 - LAW AND PUBLIC SAFETY
Chapter 74C - EXCHANGE WAGERING
Subchapter 1 - GENERAL PROVISIONS
Section 13:74C-1.1 - Definitions
The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.
"Act" means the Exchange Wagering Act, P.L. 2011, c. 15(N.J.S.A. 5:5-168).
"Authority" means the New Jersey Sports and Exposition Authority created by section 4 at P.L. 1971, c. 137 (N.J.S.A. 5:10-4).
"Back" means to wager on a selected outcome occurring in a given market.
"Commission" means the New Jersey Racing Commission, created by section 1 at P.L. 1940, c. 17 (N.J.S.A. 5:5-22).
"Commission Executive Director" means the Executive Director of the Commission.
"Corrective wager" means an exchange wager placed by the exchange wagering licensee in a given market, under circumstances approved by the Commission, in order to address the impact on that market of the cancellation or voiding of a given matched wager or given part of a matched wager.
"Dormant account" means an exchange wagering account, established pursuant to the Act and this chapter, which has remained inactive for a continuous period of 24 months in that, during such 24-month continuous period, no valid exchange wagers were made utilizing funds in that account, no valid deposits or credits were made to the exchange wagering account, and no valid debits or withdrawals were made to the exchange wagering account.
"Exchange" means a system operated by the exchange wagering licensee in which the exchange wagering licensee maintains one or more markets in which residents of this State may back or lay a selected outcome on horse races conducted within and outside this State.
"Exchange management agent" means a qualified person or entity who the exchange wagering licensee enters into a written management agreement with, to conduct or operate the exchange for it, and/or to act as its agent in all exchange wagering matters approved by the Commission. An exchange management agent may also, but is not required to, directly provide the services of an exchange services agent.
"Exchange revenues" means all charges and fees of any kind assessed or collected by the exchange wagering licensee, in connection with the submission of any exchange wagers to the exchange wagering licensee, by residents of this State.
"Exchange services agent" means a qualified person or entity who the exchange wagering licensee, or exchange management agent on behalf of the exchange wagering licensee, enters into a written services agreement with, to directly provide the computer hardware and software, technological services, and related support services, which services are necessary for aspects of the conduct or operation of exchange wagering.
"Exchange wagers" means wagers, by residents of this State, on the results of horse races conducted in this State or jurisdictions outside this State, which wagers are submitted (in person, by direct telephone call, or by communication through computer or other electronic media approved by the Commission) to and accepted by the exchange wagering licensee to be posted, that is, matched and pooled, in a market or markets on an exchange.
"Exchange wagering" means the form of parimutuel wagering, authorized by this chapter, in which two or more persons place identically opposing wagers in a given market, and which wagering is conducted by the exchange wagering licensee pursuant to a valid exchange wagering license issued by the Commission, and pursuant to and in compliance with the Act, this chapter, any conditions established by the Commission therefor, and the provisions of the Interstate Horse Racing Act of 1978, 15 U.S.C. §§ 3001 through 3007.
"Exchange wagering account" means the account established with the exchange wagering licensee by a person, who is a New Jersey resident, through which exchange wagers may be made by the account holder.
"Exchange wagering licensee" means the Authority, provided that the Commission has granted its approval for the Authority to establish an exchange as provided for in this chapter. "Exchange wagering licensee" may also mean a successor in interest to the Authority, as defined in this chapter.
"Exchange wagering system" means a system through which exchange wagers are processed.
"Hub facility" means a facility in this State that acts as an intermediary between each in-State wagering track or wagering outlet, and an in-State sending track or host facility or out-of-State sending track or host facility, with respect to the transmission of pari-mutuel wagering data and other information related to pari-mutuel wagering, in connection with the type of pari-mutuel wagering conducted pursuant to N.J.A.C. 13:70, 71, 72, 73, 74, and 74B.
"Identically opposing wagers" means wagers in which one or more persons offer to lay a selected outcome at the same price at which one or more persons offer to back that same outcome, with the amount subject to the lay being proportionately commensurate to the amount subject to the back.
"Internal control procedures" means the written procedures required to be maintained and updated, as necessary, for Commission approval, by the exchange wagering licensee, any exchange management agent employed by the exchange wagering licensee, and any exchange services agent employed by the exchange wagering licensee or exchange management agent, that set forth procedures to effectively operate and manage the exchange wagering system as provided for in this chapter, including: to ensure that wagers placed through the exchange wagering system will be accurately processed and that all aspects of wagering integrity and wagering recordkeeping will be maintained; to effectively ensure that the exchange wagering system operates with fiscal soundness and technological reliability; and to effectively ensure that there will be sufficient safeguards to maintain the integrity of the horse racing industry in this State. Where an exchange management agent or exchange services agent is employed in connection with the exchange wagering system, the internal control procedures of the exchange wagering licensee shall also include meaningful and adequate oversight controls with respect to both the exchange wagering system and its exchange wagering license.
"Interstate exchange pool" means an exchange wagering system established within this State or in another state or foreign nation within which is combined unmatched wagers on one or more horse races in order to form identically opposing wagers.
"Lay" means to wager on a selected outcome not occurring in a given market.
"Market" means, in relation to a given horse race or a given set of horse races, a particular outcome that is subject to exchange wagering as determined by the exchange wagering licensee.
"Matched wager" means the wager that is formed when two or more persons are confirmed by the exchange wagering licensee as having placed identically opposing wagers in a given market on the exchange.
"Net exchange revenues" means those exchange wagering revenues that remain after certain deductions are made from exchange revenues, as required pursuant to N.J.A.C. 13:74C-3.5(a)1 through 5, and which are to be distributed between and amongst the exchange wagering licensee and racetrack permitholders pursuant to N.J.A.C. 13:74C-3.5(a)6.
"Net winnings" means the aggregate amounts payable to a person, through an exchange wagering account established by that person consistent with this chapter, as a result of that person's winning matched wagers in a pool, less the aggregate amount paid by that person as a result of that person's losing matched wagers in that pool.
"Off-time" means the official time when wagering is ceased prior to the start of a horse race, or in the event the transmission of data conveying the official time of cessation of wagering to the exchange wagering licensee is interrupted or corrupted, the time wagering ceases in accordance with the internal control procedures of the exchange wagering license.
"Pari-mutuel" means any system whereby wagers with respect to the outcome of a horse race are placed with, or in, a wagering pool conducted by an authorized person or entity, and in which the participants are wagering with each other and not against the person or entity conducting the wagering pool.
"Pool" means the total of all matched wagers in a given market.
"Price" means the odds for a given exchange wager.
"Racetrack permitholder" means an entity, which holds a racetrack permit, issued by the Commission, to operate the Freehold Raceway, Monmouth Park, New Meadowlands Racetrack, or any other racetrack for which a permit to lawfully conduct racing may be issued by the Commission, each eligible to enter into a business agreement with the exchange wagering licensee, pursuant to this chapter, as concerns participation in exchange wagering and the distribution of net exchange wagering revenues.
"Successor in interest" means the person or entity to whom, with the prior approval of the Commission and Attorney General, the initial exchange wagering license, or the renewed exchange wagering license, has been transferred or assigned.
"Supervisor of Mutuels" means the Commission employee, who reports to the Commission Executive Director, and who acts on behalf of the Commission in overseeing the conduct of pari-mutuel wagering in this State, including exchange wagering.
"Totalisator" means a computer situated within the in-State hub facility that, among other things, directly or indirectly through one or more totalisators receives pari-mutuel wagering information, calculates payoffs for winning pari-mutuel tickets, generates reports with respect to such information, and in the event that the transmission of data from a sending or host racetrack has been interrupted, automatically ceases wagering in accordance with the internal control procedures of the hub facility, in connection with the type of pari-mutuel wagering conducted pursuant to N.J.A.C. 13:70, 71, 72, 73, 74, and 74B.
"Unmatched wager" means a wager or portion of a wager placed in a given market within an exchange that does not become part of a matched wager because there are not one or more available exchange wagers in that market with which to form one or more identically opposing wagers.
