Current through Register Vol. 56, No. 18, September 16, 2024
(a) The Authority shall make an application
for an initial exchange wagering license, on a form prescribed by the
Commission, accompanied by a non-refundable filing fee of $ 2,500. The initial
exchange wagering license shall be issued for a term of one year, which in the
Commission's discretion, may be extended until December 31st of the year within
which the initial exchange wagering license expires. The Commission shall
extend the initial license period where the Authority, by clear and convincing
evidence, establishes to the Commission's satisfaction that to do so would not
negatively impact the integrity of the exchange wagering system.
(b) An application for an initial exchange
wagering license shall not be considered complete unless:
1. The Authority demonstrates, and the
Commission investigation into the application confirms, that the requirements
of the Act have been satisfied;
2.
The Authority has completely answered each question within the application and
complied with the requirements of this section;
3. The Authority sets forth information about
the operation of the exchange, the Authority's participation therein, the
participation of other persons or entities in the operation of the exchange,
information to establish that wagers placed through the exchange wagering
system will be accurately processed, and information to establish that there
will be sufficient safeguards to maintain the integrity of the horse racing
industry in this State;
4. The
Authority sets forth information establishing that the Commission's grant of
the exchange wagering license to the Authority will serve to promote the
economic future of the horse racing industry in this State, foster the
potential for increased commerce, the employment and recreational opportunities
in this State, and to preserve the State's open spaces;
5. The Authority discloses whether it shall
conduct or operate the exchange itself, or whether, pursuant to and as
authorized pursuant to
N.J.A.C.
13:74C-3.2, it intends to enter into a
written agreement with an exchange management agent and/or exchange services
agent;
6. The Authority discloses
the physical location of all hardware and software, and administrative offices
of the exchange wagering system, and whether or not the exchange wagering
platform shall be stand-alone or shall integrate with a totalisator
system;
7. The Authority discloses
the number of jobs which the exchange wagering system is expected to generate,
as well as employ in terms of pre-existing jobs, and whether the related job
functions are proposed to occur in this State or outside the State;
8. The Authority attaches written internal
control procedures of the Authority that set forth the procedures to be
implemented: to effectively operate and manage the exchange wagering system; 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 the Authority
intends to enter into a written agreement with an exchange management agent
and/or exchange services agent, the Authority may satisfy this requirement by
including the internal control procedures of each such person or entity with
its application. However, in such case, the Authority shall include with its
application its own internal control procedures, which, at a minimum, include a
certification that it has reviewed the internal control procedures of such
exchange management agent, and/or exchange services agent, and finds them to be
sufficient, and such internal control procedures of the Authority shall further
include sufficient provisions to ensure that the Authority, as the exchange
wagering licensee, maintains meaningful and adequate oversight controls with
respect to both the exchange wagering system and its exchange wagering license;
and
9. The initial application
shall be accompanied by a certification, signed by a high managerial agent of
the Authority, attesting that the disclosures within the application and within
its attachments are true, accurate, and complete.
(c) Following a determination that the
application for an initial exchange wagering license is complete, the
Commission Executive Director shall within 14 days review the application in
accordance with the Act to ensure that the application is in due form and meets
the requirements of law in all respects. Upon the Commission Executive Director
being satisfied that these requirements are met, the Commission shall within 60
days thereof consider the application at a public meeting, and no later than 30
days from the closing of the record of the public meeting where the Commission
considers the application, the Commission shall make a final determination on
the application. The Commission's final determination may prescribe such
conditions or terms as the Commission deems appropriate.
(d) The Commission may refuse to issue a
license if it shall find that the Authority has failed to demonstrate its
suitability for a license by clear and convincing evidence. The Authority shall
bear the burden of establishing to the Commission, by clear and convincing
evidence, that:
1. It and its employees are
qualified in all aspects to hold the appropriate license;
2. The issuance of an exchange wagering
license to the Authority will not be inimical to the best interests of the
public and the horse racing industry in this State;
3. Wagers placed through the exchange
wagering system will be accurately processed and that there will be sufficient
safeguards to maintain the integrity of the horse racing industry in this
State; and
4. All of the
requirements of the Act and this chapter have been met, including the approval
of the Attorney General.
(e) The Commission's determination on the
application shall be submitted to the Attorney General for review and approval,
within 14 days following the Commission's determination. 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 Commission shall issue the license to the
Authority, to establish the exchange, upon approval of the Attorney General.
The Attorney General shall approve the Commission's determination where the
Attorney General, in his or her discretion, finds that the Commission's
determination was consistent with the Act and this chapter. The decision of the
Attorney General shall be deemed a final decision, and the Attorney General may
prescribe such conditions or terms as he or she deems appropriate.
