Bill > A5138

Introduced Session

This bill would permit wagering by business entities with horse racing or sports pool operators. Business entity wagering functions similar to a mutual fund whereby funds pooled together from different investors are then used by fund managers to wager on various sporting events in an attempt to produce a profit for investors. The business entity's gains or losses would be shared by each investor in proportion to his or her equity share. Business entities would not be permitted to wager on casino games. Business entities that choose to establish a wagering account with a horse racing or sports pool operator would be required to provide certain documentation to the operator showing that all those associated with the business entity are over 21 years of age and that the business entity has been properly formed, along with any other documents required by the Casino Control Commission, the Division of Gaming Enforcement, the Racing Commission, or a horse racing or sports pool operator. A business entity would also be required to maintain originals or copies of records received from the operator for all wagers placed, maintain an account with a bank or other financial institution in the State, and make the above records available for review by the Casino Control Commission, the Division of Gaming Enforcement, and the Racing Commission. It would be unlawful for any person solely, or in conjunction with others, to knowingly distribute funds to a designated individual or equity owner who is not disclosed to the horse racing or sports pool operator, distribute revenue from a business entity's wagering activities to an individual that has not been disclosed to the horse racing or sports pool operator, wager money on behalf of an individual who has not been disclosed to the horse racing or sports pool operator, or submit false information required by the bill. Under the bill, violations would be a second degree crime punishable by fines, imprisonment, or both.

AI Summary

Committee Categories

Gordon Johnson (D)*,  Raj Mukherji (D)*, 

Senate State Government, Wagering, Tourism & Historic Preservation Hearing (10:00 3/22/2021 Registration Form) (on 03/22/2021)