CHAPTER 33

(CORRECTED COPY)

AN ACT allowing wagering at casinos and racetracks on the results of certain professional or
collegiate sports or athletic events, supplementing Title 5 of the Revised Statutes,
amending and repealing various parts of the statutory law.

BE IT ENACTED by the Senate and General Assembly of the State of New Jersey:

C.5:12A-10 Definitions relative to sports wagering.

1. As used in this act:
"casino" means a licensed casino or gambling house located in Atlantic City at which
casino gambling is conducted pursuant to the provisions of P.L.1977, c.110 (C.5:12 -1 et
seq.);
“commission” means the Casino Control Commission established pursuant to section 50
of P.L.1977, c.110 (C.5:12-50);
“collegiate sport or athletic event” means a sport or athletic event offered or sponsored by
or played in connection with a public or private institution that offers educational services
beyond the secondary level;
"division" means the Division of Gaming Enforcement established pursuant to section 55
of P.L.1977, c.110 (C.5:12-55);
“former racetrack” means any former racetrack where a horse race meeting was conducted
within 15 years prior to the effective date of P.L.2014, c.62 (C.5:12A-7 et seq.), excluding
premises other than the land contained within the racecourse oval;
“Internet sports pool operator” means an entity that is licensed as a casino service industry
enterprise pursuant to section 92 of P.L.1977, c.110 (C.5:12-92) and that holds a permit
issued by the division to operate an online sports pool;
“online sports pool” means a sports wagering operation in which wagers on sports events
are made through computers or mobile or interactive devices and accepted at a sports
wagering lounge through an online gaming system which is operating pursuant to a sports
wagering permit issued by the division or racing commission pursuant to P.L.2018, c.33
(C.5:12A-10 et al.);
"operator" means a casino or a racetrack which has elected to operate a sports pool, either
independently or jointly, and any entity with whom a casino or racetrack licensed to operate
a sports pool contracts to operate a sports pool or online sports pool, including an Internet
sports pool operator, on its behalf;
“professional sport or athletic event” means an event at which two or more persons
participate in sports or athletic events and receive compensation in excess of actual expenses
for their participation in such event;
"prohibited sports event" means any collegiate sport or athletic event that takes place in
New Jersey or a sport or athletic event in which any New Jersey college team participates
regardless of where the event takes place. A “prohibited sports event” does not include the
other games of a collegiate sport or athletic tournament in which a New Jersey college team
participates, nor does it include any games of a collegiate tournament that occurs outside
New Jersey even though some of the individual games or events are held in New Jersey. A
prohibited sports event includes all high school sports events, electronic sports, and
competitive video games but does not include international sports events in which persons
under age 18 make up a minority of the participants;
"racetrack" means the physical facility and the land, as of the effective date of P.L.2018,
c.33 (C.5:12A-10 et al.), where a permit holder conducts a horse race meeting with wagering
under a license issued by the racing commission pursuant to P.L.1940, c.17 (C.5:5 -22 et
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seq.), and includes any former racetrack;

"racing commission" means the New Jersey Racing Commission established by section 1
of P.L.1940, c.17 (C.5:5-22);
"sports event" means any professional sport or athletic event, any Olympic or international
sports competition event and any collegiate sport or athletic event, or any portion thereof,
including, but not limited to, the individual performance statistics of athletes in a sports
event or combination of sports events, except “sports event” shall not include a prohib ited
sports event or a fantasy sports activity, as defined in section 2 of P.L.2017, c.231 (C.5:20 -
2);
"sports pool" means the business of accepting wagers on any sports event by any system
or method of wagering, including but not limited to single-game bets, teaser bets, parlays,
over-under, moneyline, pools, exchange wagering, in-game wagering, in-play bets,
proposition bets, and straight bets; and
"sports wagering lounge" means an area wherein a licensed sports pool is operated located
in a casino hotel or racetrack.

C.5:12A-11 Issuance, renewal of sports wagering licenses.

2. a. The division shall issue all sports wagering licenses and renewals thereof to casinos.
The racing commission shall issue all initial sports wagering licenses to racetracks but the
division shall have responsibility for the renewal thereof. In addition to casino games
permitted pursuant to the provisions of P.L.1977, c.110 (C.5:12-1 et seq.), a casino which
holds a sports wagering license issued by the division may operate a sports pool in
accordance with the provisions of this act and applicable regulations promulgated pursuant to
this act. A racetrack which holds an initial sports wagering license issued by the racing
commission or a sports wagering license that has been renewed by the division may operate a
sports pool in accordance with the provisions of this act and applicable regulations
promulgated pursuant to this act. A casino which holds a sports wagering license and a
racetrack which holds a sports wagering license may enter into an agreement to jointly
operate a sports pool at the racetrack, in accordance with the provisions of this act and
applicable regulations promulgated pursuant to this act. A casino or racetrack that holds a
sports wagering license may conduct an online sports pool or may authorize an internet
sports pool operator licensed as a casino service industry enterprise pursuant to section 92 of
P.L.1977, c.110 (C.5:12-92), or an applicant for such license, to operate an online sports pool
on its behalf provided the terms of the agreement are approved by the division, in the case of
a casino, or the racing commission, in the case of a racetrack; provided, however, that each
sports wagering licensee may provide no more than three individually branded websites, each
of which may have an accompanying mobile application bearing the same brand as the
website for an online sports pool, those websites and mobile applications, in the case of a
casino being in addition to or, in the discretion of the casino, in conjunction with, any
websites and mobile applications that also offer other types of Internet gaming pursuant to
P.L.2013, c.27 (C.5:12-95.17 et seq.). No online sports pool shall be opened to the public,
and no sports wagering, except for test purposes, may be conducted therein, until an Internet
sports pool operator receives from the division a permit to conduct an online sports pool.
Sports wagering licensees and operators may provide promotional credits, incentives,
bonuses, complimentaries, or similar benefits designed to induce sports betters to wager.
The division, in consultation with the commission, shall establish by rule standards
governing the provision of these measures. The server or other equipment used by a
racetrack to accept wagers at a sports pool or online sports pool shall be located in that
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racetrack or in any location in Atlantic City which conforms to the requirements of section
20 of P.L.2013, c.27 (C.5:12-95.22) and any additional requirements which the division may
impose by regulation. The server or other equipment used by a casino to accept wagers at a
sports pool or online sports pool shall conform to the requirements of section 20 of P.L.2013,
c.27 (C.5:12-95.22) and any additional requirements which the division may impose by
regulation.
With regard to this act, P.L.2018, c.33 (C.5:12A-10 et al.), the duties specified in section
63 of P.L.1977, c.110 (C.5:12-63) of the Casino Control Commission shall apply to the
extent not inconsistent with the provisions of this act. In addition to the duties specified in
section 76 of P.L.1977, c.110 (C.5:12-76), the division or racing commission, as required
pursuant to this act, shall hear and decide promptly and in reasonable order all applications
for a license to operate a sports pool. In addition to the duties specified in section 76 of
P.L.1977, c.110 (C.5:12-76), the division shall have the general responsibility for the
implementation of this act, except with respect to the authority to issue sports wagering
licenses to a racetrack as provided by this act, and shall have all other duties specified in that
section with regard to the operation of a sports pool.
The license to operate a sports pool shall be in addition to any other license required to be
issued pursuant to P.L.1977, c.110 (C.5:12-1 et seq.) to operate a casino or pursuant to
P.L.1940, c. 17 (C.5:5-22 et seq.) to conduct horse racing. The division and the racing
commission shall each have the authority to charge a casino or a racetrack a fee for the
issuance or, in the case of the division renewal, of a sports wagering license in an amount of
$100,000 for initial issuance and in the case of a renewal a reasonable fee that is based upon
the expense associated with renewal, enforcement, and gambling addiction programs. No
sports wagering license shall be issued by the division or racing commission to any entity
unless it has established its financial stability, integrity and responsibility and its good
character, honesty and integrity. No casino or racetrack shall be permitted to operate a sports
pool or accept wagers via an online sports pool unless a sports wagering lounge is
established and has commenced operation in its facility; provided, however, that an applicant
for a sports wagering license may petition the agency issuing the sports wagering license
pursuant to this act to commence operation of the sports pool at a temporary facility and/or
an online sports pool during the pendency of construction of a sports wagering lounge in its
facility. Such temporary facility may include, at the discretion of the agency issuing the
sports wagering license pursuant to this act, the utilization of designated windows at the
current casino cage or racetrack betting window for purposes of placing sports betting
wagers and self-service wagering machines located at the racetrack or casino hotel complex.
No license to operate a sports pool shall be issued to any entity which is disqualified under
the criteria of section 86 of P.L.1977, c.110 (C.5:12-86).
No later than five years after the date of the issuance of a license and every five years
thereafter or within such lesser periods as the agency issuing the sports wagering license
pursuant to this act may direct, a licensee shall submit to the said agency such documentation
or information as the division or racing commission may by regulation require, to
demonstrate to the satisfaction of the agency that the licensee continues to meet the
requirements of the law and regulations.
The division and the racing commission following consultation with the sports wagering
licensees shall annually cause a report to be prepared and distributed to the Governor on the
impact of sports wagering, including Internet wagering on sports events, on problem
gamblers and gambling addiction in New Jersey. The report shall be prepared by a private
organization or entity with expertise in serving the needs of persons with gambling
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addictions, which organization or entity shall be selected jointly by the division and the
racing commission. The report shall be prepared and distributed under the supervision of,
and in coordination with, the division and the racing commission. Any costs associated with
the preparation and distribution of the report shall be borne by casino and racetrack licensees
who have been authorized by the division or the racing commission to conduct Internet
gaming and the division and the racing commission shall be authorized to assess a fee against
such licensees for these purposes. The division and the racing commission may a lso report
periodically to the Governor on the effectiveness of the statutory and regulatory controls in
place to ensure the integrity of gaming operations through the Internet.
b. A sports pool shall be operated in a sports wagering lounge located at a casino or
racetrack. A sports wagering lounge may be located at a casino simulcasting facility. The
lounge shall conform to all requirements concerning square footage, design, equipment,
security measures and related matters which the division shall by regulation prescribe. The
space required for the establishment of a lounge shall not reduce the space authorized for
casino gaming activities as specified in section 83 of P.L.1977, c.110 (C.5:12-83).
c. No sports pool or online sports pool shall be offered or made available for wagering
to the public by any entity other than a sports wagering licensee, pursuant to P.L.2018, c.33
(C.5:12A-10 et al.), an applicant for such license, operating such pool on behalf of a licensee,
or an Internet sports pool operator, on behalf of a sports wagering licensee. Any person who
offers a sports pool or an online sports pool without approval of the division or racing
commission to do so is guilty of a crime of the fourth degree and notwithstanding the
provisions of N.J.S.2C:43-3, shall be subject to a fine of not more than $25,000 and in the
case of a person other than a natural person, to a fine of not more than $100,000 and any
other appropriate disposition authorized by subsection b. of N.J.S.2C:43-2.
d. The operator shall establish or display the odds at which wagers may be placed on
sports events.
e. An operator shall accept wagers on sports events only from persons physically present
in the sports wagering lounge; through self-service wagering machines located in its facility
as authorized by the agency issuing the sports wagering license; or through an online sports
pool. A person placing a wager on a sports event shall be at least 21 years of age.
f. (1) Any person who is an athlete, coach, referee, or director of a sports governing body
or any of its member teams, a sports governing body or any of its member teams, a player or
a referee personnel member, in or on any sports event overseen by that person’s sports
governing body based on publicly available information, a person who holds a position of
authority or influence sufficient to exert influence over the participants in a sporting contest,
including but not limited to coaches, managers, handlers, athletic trainers, or horse trainers, a
person with access to certain types of exclusive information on any sports event overseen by
that person’s sports governing body based on publicly available information, or a person
identified by any lists provided by the sports governing body to the division and t he racing
commission shall not be permitted to have any ownership interest in, control of, or otherwise
be employed by an operator, a sports wagering licensee, or a facility in which a sports
wagering lounge is located or place a wager on a sports event that is overseen by that
person’s sports governing body based on publicly available information. Any employee of a
sports governing body or its member teams who is not prohibited from wagering on a sports
event shall, nevertheless, provide notice to the division prior to placing a wager on a sports
event. The direct or indirect legal or beneficial owner of 10 percent or more of a sports
governing body or any of its member teams shall not place or accept any wager on a sports
event in which any member team of that sports governing body participates. Any person
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who violates this paragraph shall be guilty of a disorderly persons offense and shall be fined
not less than $500 and not more than $1,000.
(2) The prohibition set forth in paragraph (1) of this subsection shall not apply to any
person who is a direct or indirect owner of a specific sports governing body member team
and (i) has less than 10 percent direct or indirect ownership interest in a casino or racetrack
or (ii) the shares of such person are registered pursuant to section 12 of the Securities
Exchange Act of 1934, as amended (15 U.S.C. s.781), and the value of the ownership of such
team represents less than one percent of the person’s total enterprise value.
(3) An operator shall adopt procedures to prevent persons from wagering on sports events
who are prohibited from placing sports wagers. An operator shall not accept wagers from
any person whose identity is known to the operator and:
whose name appears on the exclusion list maintained by the division pursuant to section
71 of P.L.1977, c.110 (C.5:12-71);
whose name appears on any self-exclusion list maintained by the division pursuant to
sections 1 and 2 of P.L.2001, c.39 (C.5:12-71.2 and C.5:12-71.3, respectively);
who is the operator, director, officer, owner, or employee of the operator or any relative
thereof living in the same household as the operator;
who has access to nonpublic confidential information held by the operator; or
who is an agent or proxy for any other person.
(4) An operator shall adopt procedures to obtain personally identifiable information from
any individual who places any single wager in an amount of $10,000 or greater on a sports
event while physically present in a racetrack facility or a casino.
Sections 1 and 2 of P.L.2002, c.89 (C.5:5-65.1 and C.5:5-65.2, respectively) shall apply to
the conduct of sports wagering under this act.
g. The holder of a sports wagering license may contract with an entity to conduct that
operation, in accordance with the regulations of the division. That entity shall obtain a
license as a casino service industry enterprise prior to the execution of any such contract, and
such license shall be issued pursuant to the provisions of P.L.1977, c.110 (C.5:12 -1 et seq.)
and in accordance with the regulations promulgated by the division in consultation with the
commission.
h. If any provision of this act, P.L.2018, c.33 (C.5:12A-10 et al.), or its application to
any person or circumstance, is held invalid, the invalidity shall not affect other provisions or
applications of this act which can be given effect without the invalid provision or
application, and to this end the provisions of this act are severable.
i. An operator shall promptly report to the division:
any criminal or disciplinary proceedings commenced against the operator or its employees
in connection with the operations of the sports pool or online sports pool;
any abnormal betting activity or patterns that may indicate a concern about the integrity of
a sports event or events;
any other conduct with the potential to corrupt a betting outcome of a sports event for
purposes of financial gain, including but not limited to match fixing; and
suspicious or illegal wagering activities, including the use of funds derived from illeg al
activity, wagers to conceal or launder funds derived from illegal activity, use of agents to
place wagers, or use of false identification.
The division is authorized to share any information under this section with any law
enforcement entity, team, sports governing body, or regulatory agency the division deems
appropriate.
j. An operator shall maintain records of sports wagering operations in accordance with
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regulations promulgated by the division.

k. A sports wagering licensee may, in addition to having a sports wagering lounge,
conduct wagering on authorized sports events through one or more kiosks or self -service
wagering stations located within its facility. Such self-service wagering stations located at a
casino may offer any game authorized under rules established by the division. Such self-
service wagering stations located at a racetrack may offer wagering only on authorized sports
events and horse races.
l. All wagers on sports events authorized under this provision shall be initiated, receiv ed
and otherwise made within this State unless otherwise determined by the division in
accordance with applicable federal and state laws. Consistent with the intent of the United
States Congress as articulated in the Unlawful Internet Gambling Enforcement Act of 2006
(31 U.S.C. s.5361 et seq.), the intermediate routing of electronic data relating to a lawful
intrastate wager authorized under this provision shall not determine the location or locations
in which such wager is initiated, received or otherwise made.

C.5:12A-12 Disclosure of information by corporate applicants.

3. a.Corporate applicants for and holders of a sports wagering license shall be required to
disclose the identity of the following: each board appointed officer of the corporation; each
director of the corporation; each person who directly holds any voting or controlling interest
of 5 percent or more of the securities issued by such applicant or holder; each person who
directly holds any non-voting or passive ownership interest of 25 percent or more of the
securities issued by such applicant or holder; and each holding or intermediary company of
an applicant for or holder of an operator.
b. As to each holding, intermediary and subsidiary company of an applicant for or
holder of a sports wagering license, such applicants and holders shall be required to establish
and maintain the qualifications of the following: each board appointed officer of the
corporation; each director of the corporation; each person who directly holds any voting or
controlling interest of 5 percent or more of the securities issued by such applicant or holder;
and each person who directly holds any non-voting or passive ownership interest of 25
percent or more in such holding or intermediary company.
c. The racing commission or the division shall have the authority to waive any or all of
the qualification requirements for any person listed in subsection a. or b. of this section.
d. All persons employed directly in wagering-related activities conducted within a
casino or a racetrack in a sports wagering lounge and an online sports pool shall be licensed
as a casino key employee or registered as a casino employee, as determined by the
commission, pursuant to the provisions of P.L.1977, c.110 (C.5:12-1 et seq.). All other
employees who are working in the sports wagering lounge may be required to be registered,
if appropriate, in accordance with regulations of the division promulgated in consultation
with the commission.
e. Each operator shall designate one or more casino key employees who shall be
responsible for the operation of the sports pool. At least one such casino key employee shall
be on the premises whenever sports wagering is conducted.

C.5:12A-13 Authority of division.

4. a. Except as otherwise provided by this act, the division shall have the authority to
regulate sports pools, online sports pools, and the conduct of sports wagering under this act
to the same extent that the division regulates casino games. No casino or racetrack shall be
authorized to operate a sports pool or online sports pool unless it has produced, to the
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satisfaction of the agency issuing the sports wagering license, information, documentation,
and assurances concerning its financial background and resources, including cash reserve s,
that are sufficient to demonstrate that it has the financial stability, integrity, and
responsibility to operate a sports pool or online sports pool. In developing rules and
regulations applicable to sports wagering, the division may examine the regulations
implemented in other states where sports wagering is conducted and may, as far as
practicable, adopt a similar regulatory framework. The division, in consultation with the
commission, shall promulgate regulations necessary to carry out the provision s of this act,
including, but not limited to, regulations governing the:
(1) amount of cash reserves to be maintained by operators to cover winning wagers;
(2) acceptance of wagers on a series of sports events;
(3) maximum wagers which may be accepted by an operator from any one patron on any
one sports event;
(4) type of wagering tickets which may be used;
(5) method of issuing tickets;
(6) method of accounting to be used by operators;
(7) types of records which shall be kept;
(8) use of credit and checks by patrons;
(9) type of system for wagering;
(10) protections for a person placing a wager; and
(11) display of the words, "If you or someone you know has a gambling problem and
wants help, call 1-800 GAMBLER," or some comparable language approved by the division,
which language shall include the words "gambling problem" and "call 1-800 GAMBLER," in
all print, billboard, sign, online, or broadcast advertisements of a sports pool and online
sports pool and in every sports wagering lounge.
b. Notwithstanding any other provision of P.L.2018, c.33 (C.5:12A-10 et al.) or of the
“Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), to the contrary,
during the 90-day period following the effective date of this act, the division and the racing
commission may, after notice provided in accordance with this subsection, summarily adopt,
amend, or repeal any order, rule, or regulation for a period not to exceed 270 days for the
purpose of ensuring the expeditious and effective implementation of sports wagering at
casinos or racetracks in accordance with this act. Any summary rulemaking authorized by
this subsection shall be subject to such terms and conditions as the division and the racing
commission may deem appropriate. Such rules shall be effective when published by the
division and the racing commission on their respective websites and shall allow for the
immediate application of any racetrack licensed by the racing commission, or casino licensed
by the division, to the respective agency by which they are licensed or permitted, for a
transactional waiver to immediately commence sports wagering. Upon the filing of such
application, these rules shall further provide that, upon a showing therein that the applicant is
licensed or permitted by the appropriate agency, a sports wagering license shall immediately
be issued to the respective applicant allowing for its immediate commencement of sports
wagering subject to the condition that it conform to the entity and individual or other
licensing, facility and any other requirements set forth in the respective rules of each within
270 days. In the event such rules are not complied with within such time period, the non -
complying racetrack or casino will not thereafter be eligible to conduct sports wagering until
such compliance is achieved. Notice of any emergency rulemaking action taken by the
division or the racing commission pursuant to this subsection shall be published in the New
Jersey Register, and provided to the newspapers designated by the division and racing
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commission pursuant to subsection d. of section 3 of P.L.1975, c.231 (C.10:4 -8), not later
than 30 days subsequent to the implementation of the emergency rules. The text of any
emergency rule adopted by the division and the racing commission pursuant to this section
shall be available in each racetrack, casino, sports wagering lounge, and simulcasting facility
implementing the provisions of emergency rulemaking.
c. Any person employed on the effective date of this act, P.L.2018, c.33 (C.5:12A-10 et
al.), by a permitholder in the admissions department or parimutuel clerk department of a
racetrack operated by the permitholder shall be given a one-time right of first refusal offer of
employment at the sports pool, including an online sports pool, that opens at that racetrack,
for the then available positions of similar employment in that sports pool, or with any vendor
contracting with the licensee to operate the sports pool.

C.5:12A-14 Adoption of comprehensive house rules.

5. Each operator shall adopt comprehensive house rules governing sports wagering
transactions with its patrons which shall be approved by the division. The rules shall specify the
amounts to be paid on winning wagers and the effect of schedule changes. The house rul es,
together with any other information the division deems appropriate, shall be conspicuously
displayed in the sports wagering lounge, posted on the operator’s Internet website, and included
in the terms and conditions of the account wagering system, and copies shall be made readily
available to patrons.

C.5:12A-15 Distribution of revenues subject to joint agreement.

6. Whenever a casino licensee and a racetrack permit holder enter into an agreement to
jointly establish a sports wagering lounge, and to operate and conduct sports wagering under
this act, the agreement shall specify the distribution of revenues from the joint sports
wagering operation among the parties to the agreement.

C.5:12A-16 Taxation of sums received by casino, racetrack.

7. The sums received by the casino from sports wagering or from a joint sports wagering
operation, less only the total of all sums actually paid out as winnings to patrons, shall not be
taxed as gross revenue as specified under section 24 of P.L.1977, c.110 (C.5:12-24) but shall
be subject to an 8.5 percent tax, except that sums received from Internet wagering on sports
events, less only the total of all sums actually paid out as winnings to patrons, shall be
subject to a 13 percent tax, which shall be paid to the Casino Revenue Fund and the
investment alternative tax established by section 3 of P.L.1984, c.218 (C.5:12 -144.1) which
investment alternative tax funds shall be used exclusively for tourism and marketing for the
City of Atlantic City, provided, however, that the cash equivalent value of any merchandise
or thing of value included in a jackpot or payout shall not be included in the total of all sums
paid out as winnings to patrons for purposes of determining revenue under this paragraph.
The sums actually received by the horse racing permit holder from any sports wagering
operation, either jointly established with a casino or established independently or with non -
casino partners, less only the total of all sums actually paid out as winnings to patrons, sha ll
be subject to an 8.5 percent tax, except that sums received from Internet wagering on sports
events, less only the total of all sums actually paid out as winnings to patrons, shall be
subject to a 13 percent tax, to be collected by the division and paid to the State General Fund
and to an additional tax of 1.25 percent on amounts actually received from a sports wagering
operation, less only the total of all sums actually paid out as winnings to patrons, to be paid
to the Division of Local Government Services in the Department of Community Affairs for
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distribution, upon application by a municipality or county, to the municipality and to the

county in which the sports wagering lounge is located or to an economic development
authority of that municipality and county with those amounts used for economic development
purposes, provided, however, that the cash equivalent value of any merchandise or thing of
value included in a jackpot or payout shall not be included in the total of all sums paid out as
winnings to patrons for purposes of determining revenue under this paragraph.
A percentage of the fee paid for a license to operate a sports pool shall be deposited into
the State General Fund for appropriation by the Legislature to the Department of Health to
provide funds for evidence-based prevention, education, and treatment programs for
compulsive gambling that meet the criteria developed pursuant to section 2 of P.L.1993,
c.229 (C.26:2-169), such as those provided by the Council on Compulsive Gambling of New
Jersey, and including the development and implementation of programs that identify and
assist problem gamblers. The percentage shall be determined by the division.

C.5:12A-17 Sports wagering lounges, permitted use.

8. Sports wagering lounges at which a sports pool is operated shall be a permitted use in
all commercial, retail, industrial, non-residential and mixed-use zoning districts of a
municipality.

C.5:12A-18 Distribution of unclaimed funds.

9. If a patron does not claim a winning sports pool wager within one year from the time
of the event, the obligation of the operator to pay the winnings shall expire and the funds
shall be distributed as follows:
for wagers placed with a sports pool operated by or on behalf of a casino, the casino shall
retain 50 percent and remit the remaining 50 percent to the Casino Revenue Fund;
for wagers placed with a sports pool operated by or on behalf of a racetrack, the racetrack
shall retain 50 percent and remit the remaining 50 percent to the State General Fund ; and
for wagers placed with a sports pool jointly operated by a casino and a racetrack, the
casino and racetrack shall retain a total of 50 percent which shall be apportioned among them
pursuant to the terms of their operation agreement, and the remaining 50 percent shall be
apportioned in the same manner, with the casino percentage being deposited in the Casino
Revenue Fund and the racetrack percentage being deposited in the State General Fund.

C.5:12A-19 Acceptance of certain out-of-State wagers.

10. Notwithstanding any other provision of P.L.2013, c.27 (C.5:12-95.17 et al.), wagers
may be accepted thereunder or pooled with wagers from persons who are not physically
present in this State if the division determines that such wagering is not inconsisten t with
federal law or the law of the jurisdiction, including any foreign nation, in which any such
person is located, or such wagering is conducted pursuant to a reciprocal agreement to which
the State is a party that is not inconsistent with federal law.

11. Section 24 of P.L.1977, c.110 (C.5:12-24) is amended to read as follows:

C.5:12-24 “Gross revenue.”

24. "Gross Revenue"-- The total of all sums actually received by a casino licensee from
gaming operations, less only the total of all sums actually paid out as winnings to patrons;
provided, however, that the cash equivalent value of any merchandise or thing of value
included in a jackpot or payout shall not be included in the total of all sums paid out as
P.L.2018, CHAPTER 33
10

winnings to patrons for purposes of determining gross revenue. "Gross Revenue" shall not
include any amount received by a casino from casino simulcasting pursuant to the "Casino
Simulcasting Act," P.L.1992, c.19 (C.5:12-191 et al.) or from sports wagering pursuant to
P.L.2018, c.33 (C.5:12A-10 et al.).

12. Section 104 of P.L.1977, c.110 (C.5:12-104) is amended to read as follows:

C.5:12-104 Casino licensees, leases, contracts.

104. a. Unless otherwise provided in this subsection, no agreement shall be lawful which
provides for the payment, however defined, of any direct or indirect interest, percentage or
share of: any money or property gambled at a casino or simulcasting facility; any money or
property derived from casino gaming activity or wagering at a simulcasting facility; or any
revenues, profits or earnings of a casino or simulcasting facility. Notwithstanding the
foregoing:
(1) Agreements which provide only for the payment of a fixed sum which is in no way
affected by the amount of any such money, property, revenues, profits or earnings shall not
be subject to the provisions of this subsection; and receipts, rentals or charges for real
property, personal property or services shall not lose their character as payments of a fixed
sum because of contract, lease, or license provisions for adjustments in charges, rentals or
fees on account of changes in taxes or assessments, cost-of-living index escalations,
expansion or improvement of facilities, or changes in services supplied.
(2) Agreements between a casino licensee and a junket enterprise or junket representative
licensed, qualified or registered in accordance with the provisions of P.L.1977, c.110
(C.5:12-1 et seq.) and the regulations of the division which provide for the compensation of
the junket enterprise or junket representative by the casino licensee based upon the actual
casino gaming or simulcast wagering activities of a patron procured or referred by the junket
enterprise or junket representative shall be lawful if filed with the division prior to the
conduct of any junket that is governed by the agreement.
(3) Agreements between a casino licensee and its employees which provide for casino
employee or casino key employee profit sharing shall be lawful if the agreement is in writing
and filed with the division prior to its effective date. Such agreements may be reviewed by
the division under any relevant provision of P.L.1977, c.110 (C.5:12-1 et seq.).
(4) Agreements to lease an approved casino hotel or the land thereunder and agreements
for the complete management of all casino gaming operations in a casino hotel shall not be
subject to the provisions of this subsection but shall rather be subject to the provisions of
subsections b. and c. of section 82 of this act.
(5) Agreements which provide for percentage charges between the casino licensee and a
holding company or intermediary company of the casino licensee shall be in writing and filed
with the division but shall not be subject to the provisions of this subsection.
(6) Agreements relating to simulcast racing and wagering between a casino licensee and
an in-State or out-of-State sending track licensed or exempt from licensure in accordance
with section 92 of P.L.1977, c.110 (C.5:12-92) shall be in writing, be filed with the division,
and be lawful and effective only if expressly approved as to their terms by the division and
the New Jersey Racing Commission, except that any such agreements which provide for a
percentage of the parimutuel pool wagered at a simulcasting facility to be paid to the sending
track shall not be subject to the provisions of this subsection.
(7) Agreements relating to simulcast racing and wagering between a casino licensee and a
casino service industry enterprise licensed pursuant to the provisions of subsection a. of
P.L.2018, CHAPTER 33
11

section 92 of P.L.1977, c.110 (C.5:12-92) as a hub facility, as defined in joint regulations of

the Division of Gaming Enforcement and the New Jersey Racing Commission, shall be in
writing, be filed with the commission, and be lawful and effective only if expressly approved
as to their terms by the commission and the New Jersey Racing Commission, except that any
such agreements which provide for a percentage of the casino licensee's share of the
parimutuel pool wagered at a simulcasting facility to be paid to the hub facility shall not be
subject to the provisions of this subsection.
(8) Agreements relating to simulcast racing and wagering between a casino licensee and a
casino service industry enterprise licensed pursuant to the provisions of subsection a. of
section 92 of P.L.1977, c.110 (C.5:12-92) to conduct casino simulcasting in a simulcasting
facility shall be in writing, be filed with the commission, and be lawful and effective only if
expressly approved as to their terms by the commission, except that any such agreements
which provide for a percentage of the casino licensee's share of the parimutuel pool wagered
at a simulcasting facility to be paid to the casino service industry enterprise shall not be
subject to the provisions of this subsection.
(9) Written agreements relating to the operation of multi-casino or multi-state progressive
slot machine systems between one or more casino licensees and a casino service industry
enterprise licensed pursuant to the provisions of subsection a. of section 92 of P.L.1977,
c.110 (C.5:12-92), or an eligible applicant for such license, which provide for an interest,
percentage or share of the casino licensee's revenues, profits or earnings from the operation
of such multi-casino or multi-state progressive slot machines to be paid to the casino service
industry enterprise licensee or applicant shall not be subject to the provisions of this
subsection if the agreements are filed with and approved by the division.
(10) A written agreement between a casino licensee and a casino service industry
enterprise licensed pursuant to subsection a. of section 92 of P.L.1977, c.110 (C.5:12-92), or
an eligible applicant for such license, relating to the construction, renovation or operation of
qualifying sleeping units, as defined in section 27 of P.L.1977, c.110 (C.5:12-27), or of non-
gaming amenities, as defined by the division, within the limits of the city of Atlantic City,
regardless of whether such qualifying sleeping units or non-gaming amenities are connected
to a casino hotel facility, which provides for an interest, percentage or share of the c asino
licensee's revenues, profits or earnings, not to exceed 5% of the casino licensee's revenues, to
be paid to the casino service industry enterprise licensee or applicant in return for the
construction, renovation or operation of such qualifying sleeping units or non-gaming
amenities shall not be subject to the provisions of this subsection provided that: (i) the
agreement requires a capital investment, at least 10% of which shall be made by the casino
service industry enterprise licensee or applicant over the term of the agreement, of not less
than $30 million, which minimum amount shall be adjusted periodically by the division for
inflation; (ii) the division finds that the total amount of casino revenues, profits or earnings
that can be paid to the casino service industry enterprise licensee or applicant pursuant to this
agreement is commercially reasonable under the circumstances; and (iii) the agreement is
filed with and approved by the division.
(11) A written agreement between a casino licensee holding an Internet gaming permit
and a casino service industry enterprise licensed pursuant to subsection a. of section 92 of
P.L.1977, c.110 (C.5:12-92), or an eligible applicant for such a license, in connection with
the conduct of Internet gaming under P.L.2013, c.27 (C.5:12-95.17 et al.), which provides for
a percentage of the casino licensee's Internet gaming gross revenue to be paid to the casino
service industry enterprise licensee shall not be subject to the provisions of this subsection,
P.L.2018, CHAPTER 33
12

provided that the agreement shall be in writing, filed with the division, and shall be lawful
and effective only if the terms thereof are expressly approved by the division.
(12) A written agreement between a casino licensee and a casino service industry
enterprise licensed pursuant to subsection a. of section 92 of P.L.1977, c.110 (C.5:12-92), or
an eligible applicant for such a license, in connection with the conduct of mobile gaming
under section 100 of P.L.1977, c.110 (C.5:12-100), or mobile sports pool operations within a
casino hotel facility in areas in which mobile gaming under section 100 of P.L.1977, c.110
(C.5:12-100) is authorized, which provides for a percentage of the casino licensee’s gross
revenue from mobile gaming to be paid to the casino service industry enterprise licensee
shall not be subject to the provisions of this subsection, provided that the agreement shall be
in writing, filed with the division, and shall be lawful and effective only if the terms thereof
are expressly approved by the division.
(13) A written agreement between a casino licensee and a casino service industry
enterprise licensed pursuant to subsection a. of section 92 of P.L.1977, c.110 (C.5:12 -92), or
an eligible applicant for such a license, in connection with the conduct of a sports pool,
including an online sports pool, mobile sports pool operations within a casino hotel facility
in areas in which mobile gaming under section 100 of P.L.1977, c.110 (C.5:12-100) is
authorized, or both, which provides for a percentage of the casino licensee’s gross revenue
from the operations of a sports pool, including online sports pool and mobile operations, to
be paid to the casino service industry enterprise licensee shall not be subject to the provisions
of this subsection, provided that the agreement shall be in writing, filed with the division,
and shall be lawful and effective only if the terms thereof are expressly approved by the
division.
b. Each casino applicant or licensee shall maintain, in accordance with the rules of the
division, a record of each written or unwritten agreement regarding the realty, construction,
maintenance, or business of a proposed or existing casino hotel or related facility. The
foregoing obligation shall apply regardless of whether the casino applicant or licensee is a
party to the agreement. Any such agreement may be reviewed by the division on the basis of
the reasonableness of its terms, including the terms of compensation, and of the
qualifications of the owners, officers, employees, and directors of an y enterprise involved in
the agreement, which qualifications shall be reviewed according to the standards enumerated
in section 86 of P.L.1977, c.110 (C.5:12-86). If the division disapproves such an agreement
or the owners, officers, employees, or directors of any enterprise involved therein, the
division may require its termination.
Every agreement required to be maintained, and every related agreement the performance
of which is dependent upon the performance of any such agreement, shall be deemed to
include a provision to the effect that, if the commission shall require termination of an
agreement pursuant to its authority under P.L.1977, c.110 (C.5:12-1 et seq.), such
termination shall occur without liability on the part of the casino applicant or lice nsee or any
qualified party to the agreement or any related agreement. Failure expressly to include such a
provision in the agreement shall not constitute a defense in any action brought to terminate
the agreement. If the agreement is not maintained or presented to the commission in
accordance with division regulations, or the disapproved agreement is not terminated, the
division may pursue any remedy or combination of remedies provided in this act.
For the purposes of this subsection, "casino applicant" includes any person required to
hold a casino license pursuant to section 82 of P.L.1977, c.110 (C.5:12-82) who has applied
to the division for a casino license or any approval required under P.L.1977, c.110 (C.5:12 -1
et seq.).
P.L.2018, CHAPTER 33
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c. Nothing in this act shall be deemed to permit the transfer of any license, or any
interest in any license, or any certificate of compliance or any commitment or reservation.

13. Section 1 of P.L.2008, c.12 (C.5:12-38a) is amended to read as follows:

C.5:12-38a “Promotional gaming credit.”

1. "Promotional gaming credit" - A slot machine credit, sports wagering credit or other
item approved by the division that is issued by a licensee to a patron for the purpose of
enabling the placement of a wager at a slot machine or in a sports pool in the licensee's
casino or through the licensee's Internet gaming system. No such credit shall be reported as a
promotional gaming credit unless the casino licensee can establish that the credit was issued
by the casino licensee and received from a patron as a wager at a slot machine or in a sports
pool in the licensee's casino or Internet gaming system.

14. Section 3 of P.L.2016, c.5 (C.52:27BBBB-20) is amended to read as follows:

C.52:27BBBB-20 Definitions relative to stabilization of finances of a municipality in which

casino gaming is authorized.
3. a. As used in P.L.2016, c.5 (C.52:27BBBB-18 et al.):
"Atlantic City" means the City of Atlantic City, in Atlantic County;
"Base amount" means the amount of the payment in lieu of taxes as determined by
subparagraph (d) of paragraph (3) of subsection c. of this section;
"Casino gaming property" means one or more parcels of real property located in Atlantic
City, and any adjacent property utilized in connection with such property, upon which there
is located a facility licensed to be used for casino gaming in 2014 or thereafter, whether or
not in actual operation, which has more than 500 guest hotel rooms, and is not subject to
recorded covenants prohibiting casino gaming;
"Division" means the Division of Gaming Enforcement in the Department of Law and
Public Safety;
"Gross gaming revenue" (GGR) means the total amount of revenue raised through casino
gaming, including revenue from sports pool operations, from all of the casino gaming
properties located in Atlantic City as determined by the division;
"Local Finance Board" means the Local Finance Board in the Division of Local
Government Services in the Department of Community Affairs; and
"Treasury" means the Department of the Treasury.
b. Beginning with calendar year 2017, and for the next succeeding nine calendar years,
casino gaming properties located in Atlantic City shall be exempt from local property
taxation on real property and improvements, including accessory hotels, conference cen ters,
parking garages, and other appurtenant facilities, except that any new improvement
developed on a casino gaming property that is made outside of the perimeter footprint of any
improvement existing as of the effective date of this act and any real property, not formerly
qualified as casino gaming property, acquired after such date by an owner of casino gaming
property shall not be exempt from local property taxation in any calendar year and shall be
subject to local property taxation annually at Atlantic City's general property tax rate. The
provisions of this section shall not apply to any casino property that operates under a small
scale casino facility license or a staged casino facility license pursuant to section 1 of
P.L.2010, c.115 (C.5:12-80.1).
P.L.2018, CHAPTER 33
14

c. (1) In exchange for the property tax exemption granted in subsection b. of this section,
each owner of each casino gaming property shall sign a 10-year financial agreement with
Atlantic City for each casino gaming property promising to make quarterly payments to the
city of its allocated portion of the annual amount of the payment in lieu of taxes as
determined by this section. The owner of each casino gaming property shall be responsible
for the payments allocated to that property and shall be subject to the lien provisions of
R.S.54:5-6 if those payments are not made.
(2) Any new owner of a casino gaming property following the effective date of P.L.2016,
c.5 (C.52:27BBBB-18 et al.) shall immediately become responsible for signing a financial
agreement with Atlantic City promising to make payments consistent with this section.
(3) (a) The total amount of the payment in lieu of property taxes owed to Atlantic City for
calendar year 2017 shall be $120 million. To the extent that any owner of a casino gaming
property has paid property taxes for calendar year 2017 prior to the date P.L.2016, c.5
(C.52:27BBBB-18 et al.) becomes operative, the amount of property taxes so paid shall be
credited toward that owner's allocated share of the $120 million total payment in lieu of
property taxes.
(b) For calendar year 2018 and for each calendar year thereafter, the amount of the
payment in lieu of property taxes owed to Atlantic City shall increase by two percent per
year in every year in which there is no upward adjustment to the base amount of the payment
in lieu of taxes from the previous calendar year as determined by subparagraph (d) of this
paragraph.
(c) For calendar year 2018 and for each calendar year thereafter, the total amount of the
payment in lieu of property taxes owed to Atlantic City shall be the base amount as
determined by subparagraph (d) of this paragraph and the total amount of the annual
increases to date as determined by subparagraph (b) of this paragraph.
(d) For calendar year 2018 and for each calendar year thereafter, the base amount of the
payment in lieu of taxes shall be determined as follows:
If the amount of the GGR in the preceding calendar year is between $3.4 billion and $3.8
billion, the base amount shall be $165 million, or in the case of an upward adjustment, $15
million more than the PILOT in the previous year, whichever is greater;
If the amount of the GGR in the preceding calendar year is between $3.0 billion and $3.4
billion, the base amount shall be $150 million, or in the case of an upward adjustment, $20
million more than the PILOT in the previous year, whichever is greater;
If the amount of the GGR in the preceding calendar year is between $2.6 billion and $3.0
billion, the base amount shall be $130 million, or in the case of an upward adjustment, $10
million more than the PILOT in the previous year, whichever is greater;
If the amount of the GGR in the preceding calendar year is between $2.2 billion and $2.6
billion, the base amount shall be $120 million, or in the case of an upward adjustment, $10
million more than the PILOT in the previous year, whichever is greater;
If the amount of the GGR in the preceding calendar year is between $1.8 billion and $2.2
billion and the aggregate gross revenues from all of the casino gaming properties located in
Atlantic City from all revenue streams, excluding GGR, have not increased compared to the
prior calendar year by more than the amount by which GGR is less than $2.2 billion, as
determined by the division, the base amount shall be $110 million, or in the case of an
upward adjustment, $20 million more than the PILOT in the previous year, whichever is
greater;
If the amount of the GGR in the preceding calendar year is $1.8 billion or less and the
aggregate gross revenue from all of the casino gaming properties located in Atlantic City
P.L.2018, CHAPTER 33
15

from all revenue streams, excluding GGR have not increased compared to the prior calendar
year by more than the amount by which GGR is less than $1.8 billion as determined by the
division, the base amount shall be $90 million.
(4) The amount of the payment in lieu of property taxes owed pursuant to this subsection
shall be calculated annually each calendar year for each casino gaming property using a
formula implemented by the Local Finance Board, in consultation with the division, using
the following criteria:
The geographic footprint of the real property, expressed in acres, owned by each casino
gaming property;
The number of hotel guest rooms in each casino gaming property; and
The gross gaming revenue of the casino in each casino gaming property from the prior
calendar year.
Each of these three criteria shall bear equal weight in the formula implemented by the
Local Finance Board, in consultation with the division, pursuant to this paragraph , provided
that during calendar years 2017, 2018, 2019, 2020, and 2021, if the formula results in any
individual casino gaming property being allocated an amount that is in excess of the total real
property taxes due and payable by the casino gaming property in calendar year 2015, then
that casino gaming property shall receive a credit against the obligation of the operator of
that property under paragraph (2) of subsection a. of section 3 of P.L.1984, c.218 (C.5:12 -
144.1) in the amount of such excess. If, after that credit against the obligation of the operator
of that property under paragraph (2) of subsection a. of section 3 of P.L.1984, c.218 (C.5:12 -
144.1), that casino gaming property would still be liable for a payment in lieu of property
taxes in excess of the total real property taxes due and payable by the casino gaming property
in calendar year 2015, the casino gaming property shall not be required to make any
additional payment in lieu of property tax payment. Instead, any additional amount that
would have been owed by that casino gaming property shall be added, by proportional share,
to the payment in lieu of property taxes to be paid by every other casino gaming property in
order to provide Atlantic City the total amount of the payment in lieu of property taxes due
and owing for that calendar year.
d. When a new casino gaming property is added or when an existing casino gaming
property no longer qualifies as a casino gaming property as defined in subsection a. of this
section, Atlantic City's financial agreement with each owner of each casino gaming property
shall be amended to reflect the change and the allocation of the payment in lieu of property
taxes between the casino gaming properties.
e. The provisions of R.S.54:5-6 shall apply to any amount required to be paid under this
section, and the municipality shall have the same rights against any casino gaming property
for such unpaid amounts relating to that property as if such amounts were unpaid property
taxes.

Repealer.
15. Sections 1, 2, and 4 of P.L.2014, c.62 (C.5:12A-7 through C.5:12A-9) are repealed.

16. This act shall take effect immediately, except that provisions allowing online or
Internet sports wagering shall take effect 30 days thereafter.

Approved June 11, 2018.