NEW JERSEY REGISTER
VOLUME 33, NUMBER 14
MONDAY, JULY 16, 2001
RULE PROPOSAL
LAW AND PUBLIC SAFETY
DIVISION OF CONSUMER AFFAIRS
LEGALIZED GAMES OF CHANCE CONTROL COMMISSION
ARMCHAIR RACES

Additions are indicated by <<+ Text +>>; deletions by <<- Text ->>.
Changes in tables are made but not highlighted.

Proposed Amendments: N.J.A.C. 13:47-4.9, 6.4, 6.5, 6.11, 13.3, 13.6, 13.7, 13.8, 16.1 and 16.2
Proposed New Rules: N.J.A.C. 13:47-18 and 19

Authorized By: Legalized Games of Chance Control Commission, William J. Yorke, Executive Director

Authority: N.J.S.A. 5:8-34, 5:8-51 and 5:8-61.
Proposal Number: PRN 2001-269.

Submit comments by August 15, 2001 to:
William J. Yorke, Executive Director Legalized Games of Chance Control Commission
124 Halsey Street
PO Box 46000
Newark, New Jersey 07101

The agency proposal follows:

Summary

P.L. 1999, c.17, which amended N.J.S.A. 5:8-34, 5:8-51 and 5:8-61, became effective on February 8, 1999. The new law authorizes qualified organizations to hold events known as armchair races and permits the qualified organizations to pay compensation to persons approved by the Legalized Games of Chance Control Commission ("Control Commission") for services rendered in connection with armchair races. The Control Commission proposes to amend N.J.A.C. 13:47-4.9, 6.4, 6.5, 6.11, 13.1, 13.6, 13.7, 13.8, 16.1 and 16.2, reserve subchapter N.J.A.C. 13:47-17, and create new subchapters N.J.A.C. 13:47-18 and 19, in accordance with the authority of P.L. 1999, c.17, in order to implement the new statutory provisions.

The Control Commission proposes to amend N.J.A.C. 13:47-4.9(c) to include a licensing fee of $50.00 per licensed day of operation for an armchair race.

The Control Commission proposes to amend N.J.A.C. 13:47-6.4 to allow a compensated non-member of a qualified organization, who has been approved by the Control Commission, to assist the qualified organization in the holding, operating or conducting of a game of chance.

The Control Commission proposes to amend N.J.A.C. 13:47-6.5 to allow a person approved by the Control Commission as a game operator who is not a member of the licensed organization or a member of an organization which is auxiliary to, or affiliated with, the licensed organization to be compensated for holding, operating, conducting or assisting in the holding, operating or conducting of a game of chance.

The Control Commission proposes to amend N.J.A.C. 13:47-6.11(a) to limit the number of armchair races a qualified organization can hold to no more than six per week. In addition, a new subsection (c) is added which sets forth the length of time an armchair race license is valid

The proposed amendments to N.J.A.C. 13:47-13.1, 13.6, 13.7 and 13.8 will add armchair race equipment providers to the rules concerning the application process to become an approved supplier as well as allow armchair race equipment suppliers to also provide personnel for use in, or in connection with, the holding of an armchair race event.

The Control Commission proposes to amend N.J.A.C. 13:47-16.1 to add subsections (b) and (c). Subsection (b) limits the rates for equipment rental used for or in connection with the holding, operating or conducting of a raffle to those rates set forth in the section. Subsection (c) sets forth that all rates for rental or use of a game must include all the equipment necessary to hold, operate or conduct that game.

The Control Commission proposes to amend N.J.A.C. 13:47-16.2(a) which sets the maximum rate for both an armchair race projectionist and cashier at $250.00 per day. New subsection (b) prohibits payments in excess of those established in the rule.

The Control Commission proposes to reserve subchapter 17.

The Control Commission proposes a new subchapter 18 which will govern the conduct of armchair races.

N.J.A.C. 13:47-18.1 sets forth the purpose and scope of the subchapter.

N.J.A.C. 13:47-18.2 contains definitions of relevant words and terms used in the subchapter.

N.J.A.C. 13:47-18.3 establishes that it is lawful to hold armchair races when they have been properly licensed, reflecting the changes to the Raffles Licensing Law made by P.L. 1999, c.17.

N.J.A.C. 13:47-18.4 permits a licensed organization holding an armchair race to pay compensation to non-members who have been approved by the Control Commission for operating or assisting in the operation of an armchair race. The section also specifies that a holder, or operator, of an armchair race must be familiar with how an armchair race is conducted.

The Commission proposes new rule N.J.A.C. 13:47-18.5 that lists restrictions placed on wagering and prizes at an armchair race. No unauthorized gambling will be allowed at an armchair race. The equipment used at an armchair race must meet the requirements of the Raffles Licensing Law and applicable regulations. Players may only use imitation money to make wagers; wagering with cash or money is prohibited, as is wagering between players. Cash or money, or any prize otherwise prohibited, cannot be used as a prize at an armchair race, although other bingo or raffle games may be held in conjunction with an armchair race where cash or money prizes are permitted. In addition, no person working a game of chance at an armchair race may play the games, accept a direct or indirect gratuity or tip, enter a prize drawing, redeem imitation money for a prize, or consume alcoholic beverages during the event.

N.J.A.C. 13:47-18.6 requires the licensed organization holding an armchair race to display, in addition to notices required by N.J.A.C. 13:47-6.6, notices concerning the exchange rate, the exchange ratio if prizes are to be awarded based on a drawing, the method by which prizes will be awarded and the value of imitation money if it is color-coded.

N.J.A.C. 13:47-18.7 sets forth the control of imitation money. Imitation money shall be obtained from an approved equipment provider or shall be provided by the armchair race event holder. The rule requires imitation money to be in full dollar amounts with a minimum exchange rate of $2.00 of imitation money for every $1.00 of cash or money exchanged. The value of the imitation money must be clearly marked and must bear the name of the organization holding the event and must be dated with the date of the event. The imitation money can only be distributed at the time and place of an armchair race and cannot be removed from the place where the event is held. Only a banker may convert cash or money into imitation money for a player and the imitation money cannot be converted back into cash or money. Only imitation money can be used to place wagers, pay winnings, and be redeemed for raffle tickets or merchandise prizes.

N.J.A.C. 13:47-18.8 permits licensed organizations holding an armchair race to charge an admission fee.

N.J.A.C. 13:47-18.9 requires that the container(s) which holds a previously filmed horse race(s) be sealed with a tamper evidencing seal(s) which contains the equipment provider's name and/or logo. The seal(s) should be of the type that would be obvious if tampered with.

N.J.A.C. 13:47-18.10 prohibits an armchair race equipment provider from supplying a previously filmed horse race unless the horse race was run at least one year before the armchair event.

N.J.A.C. 13:47-18.11 requires the armchair equipment provider to be familiar with the operation of an armchair race.

N.J.A.C. 13:47-18.12 outlines the equipment a licensed organization must obtain in order to conduct an armchair race. The organization must obtain a previously filmed horse race film(s) in a sealed container(s), race programs, wagering tickets, and the ticket control and wager computation sheets. All of these items can only be obtained from an armchair race equipment provider approved by the Control Commission.

N.J.A.C. 13:47-18.13 lists restrictions on the method of operation of armchair races. If only one race is on a film, wagers must be placed and cashier windows must be closed before the seal on the container is removed. If more than one race is on a film, an announcement must be made prior to the removal of the seal, whether wagers for all of the races on the film must be made before the seal is removed or whether wagers may be placed on each race prior to the showing of each race. A horse race film that appears to be tampered with or opened before all wagers are placed cannot be shown, except when a film contains more than one race and an announcement has been made that wagers shall be placed prior to the showing of each race when the film is stopped at the blank space at the end of each race. A horse race film can only be shown one time at an armchair race. No person can disclose any information about the identity or past performance or the outcome of a race prior to the race's conclusion. A horse race film cannot be shown at an armchair race unless the horse race was originally run at least one year prior to the armchair event. All these restrictions are designed to ensure the fairness of armchair races and prevent any impropriety in the method of operation of an armchair race.

N.J.A.C. 13:47-18.14 sets forth the responsibilities of the designated member in charge. The member in charge is a member of the licensed organization holding the armchair race who has primary responsibility for the overall operation of the armchair race. The duties of the member in charge include supervising all activities of the armchair race, completing a report of operations, being familiar with the Raffles Licensing Law and applicable regulations, receiving the armchair race films and maintaining the seals on the films, and returning the films to the armchair race equipment provider. The designation of a member in charge ensures that there is proper oversight of an armchair race and a person who is responsible for any problems that may arise during the course of an armchair race.

N.J.A.C. 13:47-18.15 requires the armchair race holder to designate a member in charge of the proceeds of the event.

N.J.A.C. 13:47-18.16 outlines the duties of a banker at an armchair race. A banker must be a member of the licensed organization holding the armchair race and is responsible for converting players' cash or money into imitation money. This ensures that only members of the licensed organization handle players' cash or money. A banker may not work as a cashier during the same armchair race, be compensated for services as a banker or convert imitation money into cash or money.

N.J.A.C. 13:47-18.17 outlines the duties of a cashier at an armchair race. A cashier processes all transactions involving imitation money, with the exception of converting cash or money into imitation money, which is done only by a banker. A cashier handles transactions such as accepting wagers and paying out winnings for successful wagers. For each race, exacta, daily double, trifecta and quiniela, a cashier must prepare a ticket control and wager computation sheet. A cashier may not process transactions involving cash money or work as a banker during the same armchair race.

N.J.A.C. 13:47-18.18 authorizes straight betting, exacta, daily double, trifecta and quiniela wagering. All wagers must be made in full dollar amounts in imitation money.

N.J.A.C. 13:47-18.19 determines the distribution of the winnings, which is the amount of imitation money distributed to players who make successful wagers. The licensed organization may keep a percentage of all wagers on a race. The amount remaining is distributed to the winners. Allowing the licensed organization to withdraw a portion of imitation money wagered on each race helps to ensure a profitable fund raiser for the organization.

N.J.A.C. 13:47-18.20 sets forth the value of merchandise prizes awarded at armchair race events.

The Control Commission also proposes a new subchapter 19, Compensated Armchair Race Projectionist and Cashier. The new subchapter sets forth the requirements which are applicable to compensated armchair race projectionists and cashiers.

N.J.A.C. 13:47-19.1 outlines the application process for persons desiring to become compensated armchair race projectionists or cashiers. A person, including an employee of an approved armchair race equipment provider, who wants to become a compensated armchair race projectionist or cashier must submit an application and fee to the Control Commission. The Control Commission will review the application and notify the applicant upon approval.

N.J.A.C. 13:47-19.2 requires that the Executive Officer of the Control Commission be appointed as agent for service of process for all persons who are approved by the Control Commission to be an armchair race projectionist or cashier.

N.J.A.C. 13:47-19.3 prohibits a person approved by the Control Commission to be an armchair race projectionist or cashier from acting as a projectionist or cashier at an armchair race that has not been authorized by the Control Commission or properly licensed by a municipality or which uses equipment that is not authorized by Commission rules.

N.J.A.C. 13:47-19.4 establishes the licensing fees for armchair race projectionists and cashiers. The approval is valid for one year. A licensed armchair race projectionist or cashier can renew a license by submitting an application for license renewal with the annual licensing fee prior to the expiration of the licensing period. The Control Commission may suspend or revoke the license of an armchair race projectionist or cashier after an opportunity to be heard for any violation of the Bingo Licensing Law, N.J.S.A. 5:80-24 et seq., the Raffle Licensing Law, N.J.S.A. 5:8-50 et seq., the Amusement Games Licensing Law, N.J.S.A. 5:8-100 et seq., or any other applicable Commission statute or rule.

Social Impact

The proposed amendments and new rules will affect qualified organizations and their members, armchair race equipment and personnel providers, armchair race projectionists and cashiers, and the members of the public who will attend armchair races. The amendments and new rules will permit qualified organizations to hold armchair races as a fund raising activity and set forth the conditions for conducting such races. Qualified organizations will benefit from the amendments and new rules since they will be permitted another fund raising option. The amendments and new rules also permit providers of armchair race equipment to provide such equipment and personnel to organizations that wish to conduct armchair races. The amendments and new rules also permit individuals to work at armchair race events as projectionists and cashiers and be compensated.

Economic Impact

The proposed amendments and new rules will have an economic impact on qualified organizations, armchair race equipment and personnel providers, and armchair race projectionists and cashiers since these groups will be required to pay licensing fees in order to conduct armchair races, provide equipment and personnel to those organizations which conduct the races and those persons who want to work at these races. At the same time, these groups may also benefit financially since the authorization of armchair races may encourage the growth of the armchair race equipment provider industry, permit people who work as armchair race projectionists and cashiers to be compensated and provide an opportunity to raise additional funding for charitable purposes.

Federal Standards Statement

A Federal standards analysis is not required because the proposed amendments and new rules are not subject to any Federal requirements or standards.

Jobs Impact

The Control Commission believes that the proposed amendments and new rules may result in the creation of jobs. The amendments and new rules permit the holding of armchair races which may generate jobs for armchair race projectionists and cashiers who will be allowed to be compensated. The amendments and new rules may increase demand for armchair race equipment and personnel thereby promoting the growth of armchair race equipment providers and creating jobs within that industry.

Agriculture Industry Impact

The Control Commission does not anticipate that the proposed amendments and new rules will have any impact on the agriculture industry in the State.

Regulatory Flexibility Analysis

The Regulatory Flexibility Act (Act), N.J.S.A. 52:14B-16 et seq., requires the Control Commission to estimate the number of small businesses to which the proposed amendments and new rules will apply. There are approximately 12,000 qualified organizations which may be subject to these amendments and new rules if they decide to conduct armchair races and an indeterminable number of providers of armchair race equipment, which, if they wish to provide equipment to these organizations, may be subject to these rules. If these organizations or providers are deemed "small businesses" as defined in the Act, then the following analysis applies.

The Act requires the Control Commission to set forth the reporting, recordkeeping and other compliance requirements of the amendments and new rules, including the kinds of professional services likely to be needed to comply with its requirements. The Act further requires the Control Commission to estimate the initial and annual compliance costs of the amendments and new rules and set forth whether the rules establish differing compliance requirements for small businesses.

The amendments and new rules do not impose reporting or recordkeeping requirements. The amendments and new rules do, however, impose compliance requirements. N.J.A.C. 13:47-4.9 requires an organization to pay a licensing fee of $50.00 for each day an armchair race is conducted. N.J.A.C. 13:47-6.4 and 6.5 prohibit compensating persons who are not members of a licensed organization unless such persons have been approved by the Control Commission. N.J.A.C. 13:47-6.11 limits the holding of an armchair race to no more than six times per week and specifies that a license issued for such events is valid beginning at 12:00 A.M. on the day of the event and expires 2:00 A.M. of the next day.

The amendments to N.J.A.C. 13:47-13 will require that any person who wishes to provide equipment or personnel to conduct an armchair race must comply with the application requirements of subchapter 13 as do other suppliers of raffle and bingo equipment, except when the equipment is provided in compliance with N.J.A.C. 13:47-8.14(b)4.

N.J.A.C. 13:47-16.1 sets forth the amount of money that may be charged for equipment and prohibits the paying or the accepting of any rate in excess of that established in the schedule. N.J.A.C. 13:47-16.2 sets the amount that can be paid to a cashier or a projectionist who works at an armchair race at $250.00 per day.

The proposed new rules at N.J.A.C. 13:47-18 contain numerous compliance requirements. N.J.A.C. 13:47-18.5 sets forth restrictions on the holder of an armchair race and on persons who work at an armchair race event. N.J.A.C. 13:47-18.6 requires the display of certain notices at particular locations on the occasion of an armchair race. N.J.A.C. 13:47-18.7 establishes requirements on the use of imitation money at an armchair race.

N.J.A.C. 13:47-18.9 requires that horse races to be shown at an armchair race must be packaged in a container(s) that is sealed and tamper resistant. N.J.A.C. 13:47-18.10 prohibits an armchair race equipment provider from supplying a film unless the horse race was run at least one year prior to the armchair race event. N.J.A.C. 13:47-18.11 requires the provider to be thoroughly familiar with how an armchair race is conducted. N.J.A.C. 13:47- 18.12 requires that all equipment to be used at an armchair race must be provided by an equipment provider approved by the Control Commission and the rule sets forth the equipment to be used in order to conduct an armchair race. N.J.A.C. 13:47-18.13 sets forth when wagers on an armchair race must be placed. The rule also prohibits the disclosure of any information about the horses in the race and the showing of the same race more than once. N.J.A.C. 13:47-18.14 requires the armchair race holder to designate a member who must be in charge of the event and sets forth the armchair race duties of the member. N.J.A.C. 13:47-18.15 requires the armchair race holder to designate a member who is in charge of the proceeds of the event. N.J.A.C. 13:47-18.16 and 18.17 set forth responsibilities and prohibitions for both bankers and cashiers respectively during the holding of an armchair race event. N.J.A.C. 13:47-18.18 prescribes permissible wagering while N.J.A.C. 13:47-18.19 establishes the distribution of the winnings on each race. N.J.A.C. 13:47- 18.20 establishes the value of the prize(s) to be awarded at an armchair race event.

The proposed new rules at N.J.A.C. 13:47-19 contain the application procedure requirements that individuals must follow in order to be approved as projectionists or cashiers by the Control Commission.

The Control Commission anticipates that no additional professional services will be required in order for organizations or equipment providers to comply with the proposed amendments and new rules. Furthermore, the Control Commission estimates that no annual compliance costs other than the license fees mentioned above will be necessary. Since gaming activity is strictly regulated in the State of New Jersey and the Control Commission is specifically charged with preventing unauthorized gambling and ensuring that games are fairly and properly conducted, this proposal must be applied uniformly to all licensees without differentiation as to the size of the entity.

Full text of the proposal follows (additions indicated in boldface thus; deletions indicated in brackets [thus]):

<< NJ ADC 13:47-4.9 >>

13:47-4.9 Licensing fees payable to the Control Commission

(a)-(b) (No change.)

(c) The licensing fees payable to the Commission are:

1.-10. (No change.)

<<+11. Armchair race: $50.00 per licensed day of operation.+>>

 

<< NJ ADC 13:47-6.4 >>

13:47-6.4 Conduct by active members <<-exclusively->> <<+and compensated non-members+>>

(a) No person shall assist in the holding, operating or conducting of a game of chance except<<+:+>>

<<+1. +>><<-active->> <<+Active+>> members of the licensee, active members of its parent organization, active members of an auxiliary organization, active members of an organization of which the licensee is an auxiliary or active members of an organization having a common parent organization, provided that the assisting organization is registered with the Control Commission<<+; and+>>

<<+2. A person who is not a member of the licensed organization, an auxiliary or affiliated organization as described in this subsection, and who has been approved by the Control Commission in accordance with the provisions of this chapter and who will be compensated for holding, operating or conducting or assisting in the holding, operating or conducting of the game.+>>

(b)-(g) (No change.)

<< NJ ADC 13:47-6.5 >>

13:47-6.5 Compensation

(a) No commission, salary, compensation, reward or recompense may be paid to any <<-person->> <<+member of the licensed organization or a member of an organization which is auxiliary to or affiliated with the licensed organization+>> for holding, operating or conducting, or assisting in the holding, operating or conducting of a game of chance, except for bookkeepers or accountants who assist by rendering their professional services for an amount within the schedule of fees fixed by these rules<<+, or a person approved by the Control Commission as a game operator who is not a member of the licensed organization or a member of an organization which is auxiliary to or affiliated with the licensed organization.+>>

(b) (No change.)

<< NJ ADC 13:47-6.11 >>

13:47-6.11 Frequency and location of games

(a) No registered organization shall conduct any game(s) of chance more often than as set forth in this section:

1.-8. (No change.)

<<+9. Armchair race events shall not be conducted more often than six times in any one week.+>>

(b) (No change.)

<<+(c) A license issued for the purpose of holding an armchair race shall be valid on the date of the occasion for which the license is issued beginning at 12:00 A.M. and will expire at 2:00 A.M. the next day.+>>

SUBCHAPTER 13. RAFFLES AND BINGO EQUIPMENT PROVIDERS; INSTANT RAFFLE EQUIPMENT <<-SUPPLIER->> <<+PROVIDERS; ARMCHAIR RACE EQUIPMENT AND PERSONNEL PROVIDERS;+>> FEES NOTIFICATIONS; QUALIFICATIONS

<< NJ ADC 13:47-13.1 >>

13:47-13.1 Application

(a) An applicant desiring to provide or supply <<+equipment or personnel for an armchair race,+>> bingo, raffle or instant raffle <<-equipment->> for use in, or in connection with, holding, operating or conducting <<+an armchair race,+>> <<-raffles,->> bingo<<+, raffle+>> or instant raffle game<<-s->> shall first be approved by the Control Commission.

(b)-(f) (No change.)

(g) Each applicant desiring to provide <<+equipment or personnel to be used in or in connection with an armchair race, a+>> bingo or raffle <<- equipment->> shall forward together with Form 11, a non-refundable application fee of $100.00 by check or money order made payable to the order of the Legalized Games of Chance Control Commission.

(h) (No change.)

<< NJ ADC 13:47-13.6 >>

13:47-13.6 Approval; time limitations; renewal

(a) Upon notification of approval by the Commission, each <<+armchair race,+>> bingo and raffle equipment provider shall forward an annual licensing fee of $500.00 by certified check or money order made payable to the order of the Legalized Games of Chance Control Commission. The approval to supply <<+armchair race,+>> bingo and raffle equipment, when granted, shall be valid for one year.

(b) Prior to the expiration of the current annual license period, each licensed <<+armchair race,+>> bingo and raffle equipment provider shall submit an application for license renewal together with the annual license renewal fee.

(c)-(f) (No change.)

(g) The Commission may suspend or revoke the license of <<+armchair race,+>> bingo and raffle equipment providers or manufacturers and distributors of instant raffle equipment issued by the Commission, after an opportunity for a hearing pursuant to the Administrative Procedure Act, N.J.S.A. 52:14B-1 et seq., and the Uniform Administrative Procedure Rules, N.J.A.C. 1:1, for any violation of the Bingo Licensing Law, the Raffle Licensing Law, <<+the Amusement Games Licensing Law,+>> this chapter or any other relevant law.

<< NJ ADC 13:47-13.7 >>

13:47-13.7 Certification

(a) Within 48 hours after agreeing to supply <<+armchair race or+>> raffles equipment <<+or personnel+>> to a licensee, <<+except when provided in compliance with N.J.A.C. 13:47-8.14(b)4, and+>> whether or not a charge is made by the supplier, the <<+armchair race or+>> raffles equipment supplier shall send to the Control Commission a certification as to the following:

1.-5. (No change.)

(b)-(c) (No change.)

<< NJ ADC 13:47-13.8 >>

13:47-13.8 Providing <<+armchair race,+>> bingo or raffle equipment; restriction

No person approved by the Control Commission to provide equipment for use in or in connection with the conduct of <<+an armchair race,+>> bingo or raffle game<<-s->> shall provide such equipment to any person not registered with the Control Commission and licensed by the municipality in which the activity is held, operated or conducted.

<< NJ ADC 13:47-16.1 >>

13:47-16.1 <<-Schedule of rates->> <<+Rates for equipment+>>

(a) (No change.)

<<+(b) No rate in excess of that set forth in this section shall be paid or accepted for the rental or use of any equipment used in or in connection with the holding, operating or conducting of a raffle.+>>

<<+(c) The rate for the rental or use of any authorized game shall include all equipment, material and devices necessary to hold, operate or conduct the particular game.+>>

<< NJ ADC 13:47-16.2 >>

13:47-16.2 <<-Schedule of fees "B"->> <<+Rates for services+>>

(a) <<-The schedule of fees "B" is->> <<+The following fees may be charged for the services listed+>>:

Schedule of Fees "B" Fee Service (No more than) ... Armchair race projectionist $250.00 per day Armchair race cashier $250.00 per day <<+(b) No rate in excess of that set forth in this section shall be paid or accepted for the services provided.+>>

<<+SUBCHAPTER 17. (RESERVED)+>>

<<+SUBCHAPTER 18. CONDUCT OF ARMCHAIR RACES+>>

<< NJ ADC 13:47-18.1 >>

<<+13:47-18.1 Purpose and scope+>>

<<+(a) The purpose of the rules in this subchapter is to implement P.L. 1999, c.17 concerning the conduct of armchair races.+>>

<<+(b) This subchapter shall apply to all persons who hold an armchair race.+>>

<< NJ ADC 13:47-18.2 >>

<<+13:47-18.2 Definitions+>>

<<+The following words and terms, when used in this subchapter, shall have the following meanings unless the context clearly indicates otherwise.+>>

<<+"Armchair race(s)" means an event at which wagers are placed with imitation money on the outcome of a previously filmed horse race(s) and wagerers do not know the results in advance, when the prize awarded consists of merchandise or raffle tickets only, and not cash or money.+>>

<<+"Armchair race equipment provider" means a person approved by the Control Commission to provide armchair race equipment for use in or in connection with the holding of an armchair race in accordance with this subchapter.+>>

<<+"Armchair race holder" means the registered organization in whose name the armchair race license is issued from a municipality.+>>

<<+"Armchair race operator" means a person who works any game of chance at an armchair race including, but not limited to, cashiers and projectionists.+>>

<<+"Banker" means a person who converts cash or money into imitation money at the posted exchange rate.+>>

<<+"Cashier" means a person who processes transactions involving imitation money which do not also involve legal currency, cash or money, including accepting wagers, paying out winnings and redeeming imitation money for raffle tickets or merchandise prizes.+>>

<<+"Daily double" means a wager on which horses will finish first in two designated races.+>>

<<+"Exacta" means a wager on which horse will finish first and which horse will finish second in a race.+>>

<<+"Exchange rate" means the rate at which cash or money is converted into imitation money used to place wagers at an armchair race.+>>

<<+"Exchange ratio" means the rate of exchange of imitation money for raffle tickets.+>>

<<+"Film" means any recording medium used to show previously filmed horse races including, but not limited to, film, videotape and digital video discs.+>>

<<+"Imitation money" means any script which is either used to place wagers and pay winnings, or is redeemed for raffle tickets or merchandise prizes at an armchair race.+>>

<<+"Tamper evidencing seal" means a seal on a film container, bearing the equipment providers' name and/or logo, that is constructed in such a way that should the container be opened or tampered with, such opening or tampering would be easily discernible and obvious.+>>

<<+"Quiniela" means a wager to select the first two horses to finish in a race, irrespective of the order in which the horses finish in that race.+>>

<<+"Straight betting" means a wager on which horse will finish first in the race.+>>

<<+"Trifecta" means a wager made on which horse will finish in first, second and third place in a race.+>>

<< NJ ADC 13:47-18.3 >>

<<+13:47-18.3 Armchair race; authorization; license required+>>

<<+It shall be lawful to hold or operate an armchair race when properly licensed in accordance with the provisions of N.J.S.A. 5:8-50 et seq. and this subchapter.+>>

<< NJ ADC 13:47-18.4 >>

<<+13:47-18.4 Personnel; compensation; qualifications+>>

<<+(a) In addition to bookkeepers and accountants, who may be compensated pursuant to N.J.A.C. 13:47-6.5, a person approved by the Control Commission pursuant to N.J.A.C. 13:47-19 who is not a member of the licensed organization, an auxiliary or affiliated organization may be compensated for services as a cashier or projectionist at an armchair race, but only in the amounts set forth in the schedule in N.J.A.C. 13:47-16.2.+>>

<<+(b) An armchair race holder or operator shall be thoroughly familiar with the method of armchair race operations as set forth in this subchapter.+>>

<< NJ ADC 13:47-18.5 >>

<<+13:47-18.5 Restrictions; equipment; wagering; prizes+>>

<<+(a) On the occasion of an armchair race, no gambling shall take place other than that specifically authorized in this chapter.+>>

<<+(b) No person shall use, rent, lease, acquire or provide any equipment or service for use in or in connection with the holding of any armchair race which is not provided in accordance with the provisions of the Raffles Licensing Law, N.J.S.A. 5:8-50 et seq., and this chapter.+>>

<<+(c) An armchair race holder shall not:+>>

<<+1. Allow any wager to be placed on an armchair race game by any means except with imitation money;+>>

<<+2. Allow wagering between players, commonly known as side betting;+>>

<<+3. Offer or award any prize consisting of cash or money;+>>

<<+4. Offer or award any merchandise prize of a type prohibited by N.J.A.C. 13:47-6.20(a); or+>>

<<+5. Purchase or exchange any merchandise prize for a player for cash or money or imitation money.+>>

<<+(d) An armchair race operator, banker, cashier or member in charge shall not on the occasion of the armchair race:+>>

<<+1. Participate as a player in any game of chance, including, but not limited to, an armchair race;+>>

<<+2. Accept any direct or indirect tip or gratuity; or+>>

<<+3. Consume alcoholic beverages during the period between the commencement of the first race and conclusion of the final race of the armchair event.+>>

<<+(e) Nothing contained in this section shall be construed to prohibit the award of cash or money as a prize in an authorized bingo or raffle game or to prohibit such a game from being held, operated and conducted in accordance with N.J.A.C. 13:40-6.20(b) in conjunction with an armchair race.+>>

<< NJ ADC 13:47-18.6 >>

<<+13:47-18.6 Display of notices+>>

<<+(a) In addition to the notices required by N.J.A.C. 13:47-6.6, an armchair race holder shall conspicuously post the following notices at the places indicated:+>>

<<+1. The exchange rate: at the banker's window; and+>>

<<+2. The method by which all prizes will be awarded: in the room(s) or area(s) where the race(s) is shown and where the prize(s) is displayed.+>>

<<+(b) If a prize(s) is to be awarded based upon a drawing, the exchange ratio shall be posted in the room(s) or area(s) where the race(s) is shown and where the prize(s) is displayed.+>>

<<+(c) If the value of imitation money is color-coded, the value of each color shall be posted in the room(s) or area(s) where the race(s) is shown and where the prize(s) is displayed.+>>

<< NJ ADC 13:47-18.7 >>

<<+13:47-18.7 Imitation money; sales; restrictions; amounts+>>

<<+(a) Imitation money shall be obtained from the equipment provider or shall be provided by the armchair race holder.+>>

<<+(b) The value of imitation money shall be marked on each script or shall be color coded.+>>

<<+(c) The minimum exchange rate shall be $2.00 of imitation money for every $1.00 of cash or money.+>>

<<+(d) Imitation money shall be:+>>

<<+1. Issued in full dollar amounts;+>>

<<+2. Distributed at the time and place of the event at which it is to be used;+>>

<<+3. Sold by a banker at a banker's window;+>>

<<+4. Used to place wagers or pay winnings or redeemed for raffle tickets or merchandise prizes; and+>>

<<+5. Dated with the date of the armchair race event and bear the name of the organization holding the event.+>>

<<+(e) Imitation money shall not be:+>>

<<+1. Converted into cash or money; or+>>

<<+2. Removed from the room or area where the event is held.+>>

<< NJ ADC 13:47-18.8 >>

<<+13:47-18.8 Admission fee+>>

<<+An armchair race holder may charge a fee for admission to the armchair race.+>>

<< NJ ADC 13:47-18.9 >>

<<+13:47-18.9 Previously filmed horse race container seal+>>

<<+Prior to shipment, an armchair race equipment provider shall seal the container(s) holding a previously filmed horse race(s) with a tamper evidencing seal(s) bearing the equipment provider's name and/or logo. The seal(s) shall be constructed in such a way that should the container(s) be opened or tampered with, such tampering or opening would be easily discernable and obvious.+>>

<< NJ ADC 13:47-18.10 >>

<<+13:47-18.10 Previously filmed horse races; time limits+>>

<<+An armchair race equipment provider shall not supply a previously filmed horse race film for use in any armchair race unless the horse race was run at least one year prior to the date of the armchair race.+>>

<< NJ ADC 13:47-18.11 >>

<<+13:47-18.11 Qualifications of equipment provider+>>

<<+An armchair race equipment provider shall be thoroughly familiar with the method of operation of an armchair race as set forth in this subchapter.+>>

<< NJ ADC 13:47-18.12 >>

<<+13:47-18.12 Equipment; method of play+>>

<<+(a) All equipment used in an armchair race shall be provided by an equipment provider approved by the Control Commission pursuant to the Raffles Licensing Law, N.J.S.A. 5:8-50 et seq., and this chapter.+>>

<<+(b) An armchair race holder shall obtain the following equipment from an approved armchair race equipment provider:+>>

<<+1. A container, holding a previously filmed horse race(s), sealed in accordance with N.J.A.C. 13:47-18:9;+>>

<<+2. A race program which indicates the number of horses in each race and identifies the horses in each race by number and fictitious name but which in no way indicates the past performance of the horses;+>>

<<+3. Wagering tickets which contain at least the following information:+>>

<<+i. The date of the occasion;+>>

<<+ii. The name of the organization and the identification number issued to it by the Control Commission;+>>

<<+iii. The license number issued by the municipality for the armchair race;+>>

<<+iv. The race number;+>>

<<+v. The number of the horse(s) wagered upon; and+>>

<<+vi. The serial number to identify the tickets used at that armchair race; and+>>

<<+4. Ticket control and wager computation sheets.+>>

<< NJ ADC 13:47-18.13 >>

<<+13:47-18.13 Armchair race; method of operation; restriction+>>

<<+(a) If a film contains only one race, all wagers shall be placed and all cashier windows shall be closed prior to removing the seal on the film container. The race shall not be shown if the seal has been tampered with or removed.+>>

<<+(b) If a film contains more than one race, the armchair race holder shall announce, prior to the removal of the seal on the film container, whether wagers for all races on that film shall be placed before the seal is broken or whether wagers shall be placed on each race prior to the showing of each race. If wagers are to be placed prior to the showing of each race, the film shall be stopped at the blank space at the end of each race to allow wagers to be placed on the horses in the next race.+>>

<<+(c) The film(s) shall not be shown if the equipment provider's seal has been tampered with or removed, except when a film contains more than one race and an announcement has been made, and the film has been stopped at the end of each race, as required by (b) above.+>>

<<+(d) An armchair race holder may accept wagers for one or more races provided that the equipment provider's seal on the films has not been broken, except when a film contains more than one race and an announcement has been made, and the film has been stopped at the end of each race, as required by (b) above.+>>

<<+(e) No person shall disclose any information regarding the identity of a horse, its past performance, or the outcome of a race prior to the conclusion of the race.+>>

<<+(f) No previously filmed horse race shall be shown more than once at any armchair race event.+>>

<<+(g) A previously filmed horse race shown at an armchair race event shall have been run at least one year prior to the date of the armchair race event.+>>

<< NJ ADC 13:47-18.14 >>

<<+13:47-18.14 Armchair race; designated member in charge of the conduct of the event+>>

<<+(a) The officers of the armchair race holder shall designate a member who shall be in charge of the conduct of the event. The duties of the member in charge shall include all the duties set forth in N.J.A.C. 13:47-6.1 and, in addition, the member in charge shall:+>>

<<+1. Supervise the banker, cashier, projectionist and all persons operating games at the event;+>>

<<+2. Receive the film(s) and any associated documents from the approved equipment provider;+>>

<<+3. Maintain the equipment provider's seal(s) placed on the film(s) until each race is shown; and+>>

<<+4. Return the film(s) to the approved equipment provider on the next business day following the day upon which the armchair race event is held.+>>

<< NJ ADC 13:47-18.15 >>

<<+13:47-18.15 Armchair race; designated member in charge of net proceeds+>>

<<+The officers of the armchair race holder shall designate a member in charge of proceeds who shall have the responsibilities as set forth in N.J.A.C. 13:47-6.2.+>>

<< NJ ADC 13:47-18.16 >>

<<+13:47-18.16 Armchair race banker+>>

<<+(a) An armchair race banker shall:+>>

<<+1. Be a bona fide active member of the armchair race holder; and+>>

<<+2. Convert cash or money into imitation money at the posted exchange rate.+>>

<<+(b) An armchair race banker shall not:+>>

<<+1. Convert imitation money into cash or money;+>>

<<+2. Work as a cashier at the same armchair race event; or+>>

<<+3. Be compensated for services as a banker.+>>

<< NJ ADC 13:47-18.17 >>

<<+13:47-18.17 Armchair race cashier+>>

<<+(a) An armchair race cashier shall:+>>

<<+1. Accept wagers and pay out winnings for successful wagers;+>>

<<+2. Exchange imitation money for merchandise or raffle tickets at the posted exchange rate;+>>

<<+3. Complete a ticket control and wager computation sheet for each race, daily double, trifecta, quiniela and exacta. Each sheet shall contain the following information:+>>

<<+i. Total number of tickets sold;+>>

<<+ii. Total dollar amount collected;+>>

<<+iii. Amount of commission;+>>

<<+iv. Distribution of winnings;+>>

<<+v. Winning entry or combination;+>>

<<+vi. Winners to be paid; and+>>

<<+vii. Total to be paid; and+>>

<<+4. Distribute the winnings.+>>

<<+(b) An armchair race cashier shall not:+>>

<<+1. Process transactions involving cash or money;+>>

<<+2. Work as a banker at the same armchair race event; or+>>

<<+3. Convert imitation money into cash or money.+>>

<< NJ ADC 13:47-18.18 >>

<<+13:47-18.18 Authorized wagering+>>

<<+(a) Wagers for armchair races shall be in full dollar amounts in imitation money.+>>

<<+(b) Only straight betting, exacta, daily double, trifecta and quiniela wagering shall be allowed at an armchair race.+>>

<< NJ ADC 13:47-18.19 >>

<<+13:47-18.19 Distribution of winnings+>>

<<+The armchair race holder shall retain a percentage of the total amount wagered in each race, daily double, trifecta, quiniela and exacta. The amount remaining shall be distributed among the winners.+>>

<<+EXAMPLE: The total amount of imitation money wagered in a race is $400.00. The armchair race holder retains a 50 percent commission on the race, leaving $200.00 of imitation money to be distributed among the winners. Horse number 6 wins the race. Eight wagers were placed (that is, tickets were purchased) on horse number 6. The cashier divides eight into $200.00 and pays out $25.00 in imitation money for each ticket purchased.+>>

<< NJ ADC 13:47-18.20 >>

<<+13:47-18.20 Prizes+>>

<<+The aggregate retail value of all merchandise prizes awarded at an armchair race event by drawing and/or redemption shall not exceed $100,000.+>>

<<+SUBCHAPTER 19. COMPENSATED ARMCHAIR RACE PROJECTIONIST AND CASHIER+>>

<< NJ ADC 13:47-19.1 >>

<<+13:47-19.1 Application procedure+>>

<<+(a) A person who wants to be a compensated armchair race projectionist or cashier shall submit to the Control Commission a Commission-provided application and a non-refundable $100.00 fee by check or money order made payable to the Legalized Games of Chance Control Commission. The application shall be completed in duplicate, signed by the applicant and notarized.+>>

<<+(b) A person who wants to be a compensated armchair race projectionist or cashier, who is employed by a licensed equipment provider, shall submit to the Control Commission a Commission-provided application and a non-refundable $25.00 fee by check or money order made payable to the Legalized Games of Chance Control Commission. The application shall be completed in duplicate, signed by the applicant and the approved equipment provider by whom the applicant is employed, and shall be notarized.+>>

<<+(c) The Commission shall review the application for completeness, and barring any conviction of a crime, violation of the Bingo Licensing Law, the Raffle Licensing Law, the Amusement Games Licensing Law or disciplinary action relative to a license, certificate or registration in another state, shall approve the application.+>>

<<+(d) The Commission shall notify the applicant of the approval and issue a license and license number.+>>

<< NJ ADC 13:47-19.2 >>

<<+13:47-19.2 Agent for service of process+>>

<<+(a) All armchair race projectionist and cashier applicants shall appoint the Executive Officer of the Control Commission as agent for service of process on a form provided by the Commission.+>>

<<+(b) Upon the service of any papers on the Executive Officer of the Control Commission as agent for the armchair race projectionist or cashier, the Executive Officer shall forward the papers by registered or certified mail, return receipt requested, to the person named and who is a defendant in the proceeding at the last known address on file with the Commission.+>>

<< NJ ADC 13:47-19.3 >>

<<+13:47-19.3 Authorized races+>>

<<+A person who has been approved as an armchair race projectionist or cashier by the Control Commission shall only work at an armchair race event if the event has been authorized by the Control Commission and licensed by the municipality in which the race(s) are to be held and the equipment to be used has been provided by an approved supplier in accordance with this chapter.+>>

<< NJ ADC 13:47-19.4 >>

<<+13:47-19.4 License approval and renewal+>>

<<+(a) Upon notification of approval by the Control Commission, each armchair race projectionist or cashier applicant shall forward a license fee of $125.00 by certified check or money order made payable to the Legalized Games of Chance Control Commission. The license shall be valid for one year unless modified, suspended or revoked by the Control Commission.+>>

<<+(b) Upon notification of approval by the Control Commission, each armchair race projectionist or cashier applicant, who is employed by a licensed equipment provider, shall forward a license fee of $25.00 by certified check or money order made payable to the Legalized Games of Chance Control Commission. The license shall be valid for one year unless modified, suspended or revoked by the Control Commission.+>>

<<+(c) Prior to the expiration of the annual license period, each licensed armchair race projectionist or cashier desiring to renew his or her license shall submit an application for license renewal together with an annual license renewal fee of $125.00.+>>

<<+(d) Prior to the expiration of the annual license period, each licensed armchair race projectionist or cashier who is employed by a licensed equipment provider shall submit an application for license renewal together with an annual license renewal fee of $25.00.+>>

<<+(e) The Control Commission may suspend or revoke the license of an armchair race projectionist or cashier after an opportunity to be heard for any violation of the Bingo Licensing Law, N.J.S.A. 5:8-24 et seq., the Raffle Licensing Law, N.J.S.A. 5:8-50 et seq., the Amusement Games Licensing Law, N.J.S.A. 5:8-100 et seq., this chapter or any other applicable statute or rule of the Commission+>>



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