Bill > S3019

Introduced Session

This bill authorizes Internet wagering at Atlantic City casinos to enable New Jersey residents to place wagers on casino games via the Internet. Specifically, the bill provides: · all games, including poker, which may be played at a casino, as well as variations or composites thereof, may be offered through Internet wagering; · all equipment used by a licensee to conduct Internet wagering, including but not limited to computers, servers, monitoring rooms, and hubs, must be located either in a restricted area on the premises of the casino hotel or in a secure facility inaccessible to the public and specifically designed for that purpose off the premises of a casino hotel but within the territorial limits of Atlantic City and all Internet wagers will be deemed to be placed when received in Atlantic City by the licensee regardless of the players physical location within this State; any intermediate routing of electronic data in connection with a wager will not affect the fact that the wager is placed in Atlantic City; · in order to participate in Internet wagering, a player must be physically present in New Jersey whenever a wager is placed by that player; · each licensee that conducts Internet wagering must be able to verify that a player is physically present in New Jersey when placing a wager; · the division must confirm on a continuing basis that a licensees equipment is able to verify that the player is physically present in this State when placing a wager; · Internet wagering in this State will be subject to the provisions of, and preempted and superseded by, any applicable federal law; · there is imposed an annual tax on Internet wagering gross revenues in the amount of 10% of such gross revenues which will be paid into the casino revenue fund; the 8% tax on casino gross revenues will not apply to Internet wagering gross revenues; and the investment alternative tax will apply to Internet wagering gross revenues, except that the investment alternative tax on these revenues will be 5% and the investment alternative will be 2.5%, with the proceeds thereof used as provided by law; · the Division of Gaming Enforcement may establish an Office of Internet Wagering to which it may delegate authority for the administration of Internet wagering conducted by casino licensees; the division would be responsible for recommending regulations concerning Internet wagering for consideration and possible adoption by the commission; this would not affect the authority of the Division of Gaming Enforcement with respect to all casino gaming activities, including Internet wagering; · the application process for a licensed casino to obtain a permit to establish Internet wagering, with the permit valid for one year and subject to renewal. As part of the application process, a casino licensee must submit a description of its system of internal procedures (including security procedures) and administrative and accounting controls for Internet wagering, including provisions that provide for real time monitoring of all games. A casino licensee must also submit its gaming software and other Internet wagering equipment to the Division of Gaming Enforcement for testing to ensure compliance with technical standards for such equipment set by the commission; · procedures for the crediting and debiting of a wagering account; · it will be lawful for a casino licensee to provide marketing information by means of the Internet to players engaged in Internet wagering and to offer those players incentives to visit the licensees casino in Atlantic City; · required features of Internet wagering to assist the wagering account holder; · required features to assist problem gamblers and potential problem gamblers; · penalties for violations of the provisions of the bill; · an annual fee for Internet wagering permit holders for the initial permit and permit renewal to cover the costs of regulation by the commission and the division, with the initial fee to be at least $200,000 and the renewal fee to be at least $100,000; and · an annual fee for Internet wagering permit holders of $100,000 to be allocated to programs to prevent compulsive gambling and to assist compulsive gamblers. Except as otherwise provided in the bill, a licensed casinos Internet wagering operation would be subject to the existing provisions of the Casino Control Act and the regulations promulgated thereunder, including, but not limited to: · the licensure of all employees with gaming-related duties or responsibilities; · penalties for a violation of the act; and · supplemental sanctions deemed appropriate by the commission for violations. The division will adopt regulations for the implementation and conduct of Internet wagering that are consistent with regulations governing casino gambling generally. The bill provides that no organization or commercial enterprise, other than a casino located in Atlantic City that has been issued a permit to conduct Internet wagering and has located all of its equipment used to conduct Internet wagering, including computers, servers, monitoring rooms, and hubs, in Atlantic City, would be able to make its premises available for placing wagers at casinos using the Internet or advertise that its premises may be used for such purpose. Violations would be punishable by a penalty of $1,000 per player per day for making a premises available for placing wagers at casinos using the Internet and of $10,000 per violation for advertising that a premises may be used for such purpose. It also provides that it will be a condition of conducting Internet gambling that a casino licensee enters into an agreement with other such licensees to contribute to a fund established by those licensees that, through an assessment on the participating licensees in a manner determined by them, will raise $20 million annually in each of the first three State fiscal years commencing with the State fiscal year in which Internet wagering commences which amount will be contributed to the New Jersey Racing Commission to be used to support the horse racing industry in this State through the augmentation of purses. The sponsors note that, in State v. Trump 160 N.J. 505 (1999), a majority of the New Jersey Supreme Court adopted a purposive reading of Article IV, Section 7, paragraph 2, subparagraph D, of the State Constitution. The court clearly indicated that the purposes of the provision were "a rejuvenated tourist industry, increased employment, capital investment and much needed urban redevelopment," and "to raise revenue to benefit senior and disabled citizens." Trump, 160 N.J. at 516.

AI Summary

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Raymond Lesniak (D)*, 

Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee (on 08/25/2011)

Official Document