LAW AND PUBLIC SAFETY
NEW JERSEY RACING COMMISSION
Harness Racing
Handicapping Contests
Proposed New Rule: N.J.A.C. 13:71-27.61
Authorized By: New Jersey Racing Commission, Frank Zanzuccki,
Executive Director
Authority: N.J.S.A. 5:5-30
Calendar Reference: See Summary below for explanation of exception
to calendar requirement.
Proposal Number: PRN 2002-406
Submit written comments
by January 17, 2003 to:
Frank Zanzuccki, Executive Director
New Jersey Racing Commission
P.O. Box 088, 140 E. Front St.
Trenton, New Jersey 08625-0088
The agency proposal follows:
Summary
The New Jersey Racing Commission ("Racing Commission")
is interested in obtaining public comment regarding the proposed
new rule N.J.A.C.13:71-27.61 Handicapping contests.
The proposed new rule at subsection (a) would allow a holder
of a racetrack permit, and/or an Atlantic City casino authorized
to conduct casino simulcasting (“Atlantic City casino”),
to operate a handicapping contest and to charge an entry fee to
the participants of the contest. The rule at subsection (b) requires
that all such entry fees collected be distributed as prizes to
the winners of the handicapping contest. In addition, the rule
does not preclude the operator of the contest from providing additional
prizes or promotions. Subsection (c) of the rule requires that
the racetrack permit holder or Atlantic City casino apply to and
receive the approval of the Racing Commission to conduct a handicapping
contest. As part of this approval process, the proposed rule would
require that the Racing Commission issue a written approval as
to the rules of the contest, and as to the payment of prizes,
each before the acceptance of any entry fees regarding said contest.
The proposed rule sets forth additional requirements related
to the conduct of a handicapping contest. Subsection (d) of the
rule requires that the horse races subject of the handicapping
contest be a race on which the operator of the contest is authorized
to conduct wagering. Subsection (f) of the rule requires that
a contest entrant personally place all wagers. Subsection (g)
of the rule concerns tax liability as to winning wagers, and provides
that the winner of any wagers is solely responsible for reporting,
signing and deductions made. Subsection (h) of the rule prohibits
employees or their families of the venue conducting a handicapping
contest from participation therein. Subsection (i) of the rule
sets forth requirements relevant to the contest venue and racetracks
participating in a handicapping contest. Subsection (j) of the
rule defines “racetrack” for purposes of the rule,
to include both in and out-of-state racetracks.
A handicapping contest, within the racing industry, is a competition
in which all entrants pay a prescribed fee to register. The exact
parameters of the handicapping contest are dependent on the rules
of the particular contest, which rules pursuant to the proposed
rule must be approved by the Racing Commission. The rules of the
particular contest are variable, may or may not limit the number
of entrants in the contest, and establish the minimum as well
as any maximum wager permitted by the contest. Each participant
in a handicapping contest purchases a cash betting stake, the
amount of which betting stake will be defined in the rules of
the contest. The rules of the contest also define the instruments
of wagering, as well as the minimum amount of races at the prescribed
tournament tracks (and the pari-mutuel pools relevant to the contest),
that is, the tracks where races are being conducted as encompassed
by the contest. At the end of the last race of the final tournament
track participating in the contest, the entrant with the highest
net profit as defined i the rules wins the contest. The contest
rules also address the impact o the contest of any dead heats,
that is, in races or scratches of horses (elimination of a horse
from a scheduled race competition) from the tournament races.
The contest rules for the specific handicapping contest, as noted
above, must set forth the prizes to the winners of the contest.
Since all wagers in handicapping contests are to be introduced
into accepted pari-mutuel wagering pools, no changes to the Racing
Commission’s existing regulations needs to be made concerning
horse race betting at racetracks or Atlantic City casinos.
As the Racing Commission has provided a 60-day comment period
with regard to this notice of proposal, this notice is excepted
from the rulemaking calendar requirements of N.J.A.C. 1:30-3.3(a)5.
Social Impact
The social impact of proposed N.J.A.C.13:71-27.61 will be positive
by allowing racetracks and/or casino simulcast venues the benefit
of another promotional tool which will stimulate additional interest
and patron participation in the sport.
Economic Impact
The proposed new rule N.J.A.C. 13:71-27.61, will likely have
a positive economic impact upon racetracks, casino operators and
the State because of the pari-mutuel handle. The handicapping
contest is designed to stimulate interest in wagering on races
by increasing the opportunity for reward to entrants in a fashion
based on competition in relationship to other entrants, which
is in addition to the basic reward of net profits from the pari-mutuel
pools. The exact arising economic impact, however, is difficult
to measure because it cannot accurately be assessed whether the
implementation of the rule will generate new wagering dollars,
or alternatively, whether wagering dollars will be diverted from
existing non-handicapping horse race wagering opportunities to
new handicapping contest wagering races.
There may be a limited economic impact associated with the implementation
of the new rule. This impact will result from the development
or acquisition of computer software necessary to offer handicapping
contests. This cost will be borne by the racetrcks or casino operators
who intend to offer handicapping contests, either directly or
through a third party agent. There may also be costs associated
with advertising the availability of handicapping contests to
the wagering public, but these costs (as well as the software
development or acquisition costs) will likely be offset from the
profits associated with this new method of horse race wagering.
It is not anticipated that an economic impact will arise due to
new manpower needs associated with offering handicapping contest
wagering, as existing staff at racetracks and casinos simulcast
facilities is considered sufficient.
Federal Standards Statement
A Federal standard’s analysis is not required because
the rules of racing are dictated by State statute N.J.S.A. 5:5-22
et seq. and the proposed new rule is not subject to any Federal
requirements or standards.
Jobs Impact
The proposed new rule will likely have no impact on the work
force in the State. No jobs will be gained or lost due to the
proposed rule. The existing number of mutuel clerks (persons who
issue pari-mutuel tickets to patrons in exchange for cash or vouchers),
SAM machines (self-activated machines, which machines issue pari-mutuel
tickets in exchange for cash or vouchers) and Tiny Tim Machines
(TIMS, or portable ticket issuing machines which, as opposed to
actually issuing pari-mutuel tickets, allow for pari-mutuel wagers
to be placed with funds on account) are adequate to handle the
wagering opportunities arising as a result of the implementation
and operation of the handicapping contests to be authorized by
this rule.
Agriculture Industry Impact
The proposed new rule will have an impact on the agriculture
industry in the State. In anticipation of increased pari-mutuel
handle due to the inception of handicapping contests, the ratio
of increased handle will also be evidenced in the horse breeding
and development, stallion, and other horse breed promotions conducted
by the Department of Agriculture as per N.J.S.A. 5:5-88.
Regulatory Flexibility Statement
The proposed new rule imposes certain compliance requirements
(see Economic Impact Statement) on racetracks and those Atlantic
City casinos which offer casino simulcasting. However, because
these businesses employ over 100 individuals full-time, they are
not “small businesses” as defined under the Regulatory
Flexibility Act, N.J.S.A. 52:14B-16 et seq., and a regulatory
flexibility analysis is not therefore required.
Smart Growth Impact
The proposed new rule is not anticipated to have an impact on
the achievement of smart growth implementation of the State Development
and Redevelopment Plan as defined under Executive Order No. 4
(2002).
Full text of the proposed new rule follows:
13:71-27.61 Handicapping contests
(a) Notwithstanding any other provision of law to the contrary,
a permit holder, casino simulcasting licensee or a combination
thereof may operate a handicapping contest at which the participants
may be charged an entry fee. The contest must be conducted in
accordance with the provisions of this rule.
(b) The operator of a handicapping contest shall distribute
all of the entry fees as prizes to the winners of the contest.
Nothing in this section shall preclude an operator from providing
additional prizes or promotions.
(c) Operators must apply to and receive the approval of the
New Jersey Racing Commission to conduct a handicapping contest
in New Jersey. The operators must secure the Commission’s
written approval of the rules and the payment of prizes prior
to the acceptance of any entry fees regarding said contest.
(d) The horse races that are the subject of the handicapping
contest must be races on which the operator of the contest is
authorized to conduct wagering.
(e) The operator of a handicapping contest must apply to the
Racing Commission for approval of each and every contest.
(f) An entrant must personally place all wagers. No person shall
directly or indirectly act as a transmitter, intermediary, or
agent in placing wagers for the entrant.
(g) Winners of wagers where taxes apply are solely responsible
for the reporting, signing and deductions made to the appropriate
State or Federal Tax Agencies.
(h) Employees or their families of the venue conducting a handicapping
contest are not eligible to participate in any tournament.
(i) Denominations of wagers and types of pools wagered must
be agreed to in contract form between the contest venue and the
racetracks participating in a handicapping contest.
(j) Racetracks, for the purpose of this section, are defined
as both in and out-of-state.
(k) All track rulings are official in the event of scratches
and disqualifications.
LAW AND PUBLIC SAFETY
NEW JERSEY RACING COMMISSION
Horse Racing
Handicapping Contests
Proposed New Rule: N.J.A.C. 13:70-29.63
Authorized By: New Jersey Racing Commission, Frank Zanzuccki,
Executive Director
Authority: N.J.S.A. 5:5-30
Calendar Reference: See Summary below for explanation of exception
to calendar requirement.
Proposal Number: PRN 2002-405
Submit written comments
by January 17, 2003 to:
Frank Zanzuccki, Executive Director
New Jersey Racing Commission
P.O. Box 088, 140 E. Front St.
Trenton, New Jersey 08625-0088
The agency proposal follows:
Summary
The New Jersey Racing Commission ("Racing Commission")
is interested in obtaining public comment regarding the proposed
new rule N.J.A.C.13:70-29.63 Handicapping contests.
The proposed new rule at subsection (a) would allow a holder
of a racetrack permit, and/or an Atlantic City casino authorized
to conduct casino simulcasting (“Atlantic City casino”),
to operate a handicapping contest and to charge an entry fee to
the participants of the contest. The rule at subsection (b) requires
that all such entry fees collected be distributed as prizes to
the winners of the handicapping contest. In addition, the rule
does not preclude the operator of the contest from providing additional
prizes or promotions. Subsection (c) of the rule requires that
the racetrack permit holder or Atlantic City casino apply to and
receive the approval of the Racing Commission to conduct a handicapping
contest. As part of this approval process, the proposed rule would
require that the Racing Commission issue a written approval as
to the rules of the contest, and as to the payment of prizes,
each before the acceptance of any entry fees regarding said contest.
The proposed rule sets forth additional requirements related
to the conduct of a handicapping contest. Subsection (d) of the
rule requires that the horse races subject of the handicapping
contest be a race on which the operator of the contest is authorized
to conduct wagering. Subsection (f) of the rule requires that
a contest entrant personally place all wagers. Subsection (g)
of the rule concerns tax liability as to winning wagers, and provides
that the winner of any wagers is solely responsible for reporting,
signing and deductions made. Subsection (h) of the rule prohibits
employees or their families of the venue conducting a handicapping
contest from participation therein. Subsection (i) of the rule
sets forth requirements relevant to the contest venue and racetracks
participating in a handicapping contest. Subsection (j) of the
rule defines “racetrack” for purposes of the rule,
to include both in and out-of-state racetracks.
A handicapping contest, within the racing industry, is a competition
in which all entrants pay a prescribed fee to register. The exact
parameters of the handicapping contest are dependent on the rules
of the particular contest, which rules pursuant to the proposed
rule must be approved by the Racing Commission. The rules of the
particular contest are variable, may or may not limit the number
of entrants in the contest, and establish the minimum as well
as any maximum wager permitted by the contest. Each participant
in a handicapping contest purchases a cash betting stake, the
amount of which betting stake will be defined in the rules of
the contest. The rules of the contest also define the instruments
of wagering, as well as the minimum amount of races at the prescribed
tournament tracks (and the pari-mutuel pools relevant to the contest),
that is, the tracks where races are being conducted as encompassed
by the contest. At the end of the last race of the final tournament
track participating in the contest, the entrant with the highest
net profit as defined i the rules wins the contest. The contest
rules also address the impact o the contest of any dead heats,
that is, in races or scratches of horses (elimination of a horse
from a scheduled race competition) from the tournament races.
The contest rules for the specific handicapping contest, as noted
above, must set forth the prizes to the winners of the contest.
Since all wagers in handicapping contests are to be introduced
into accepted pari-mutuel wagering pools, no changes to the Racing
Commission’s existing regulations needs to be made concerning
horse race betting at racetracks or Atlantic City casinos.
As the Racing Commission has provided a 60-day comment period
with regard to this notice of proposal, this notice is excepted
from the rulemaking calendar requirements of N.J.A.C. 1:30-3.3(a)5.
Social Impact
The social impact of proposed N.J.A.C.13:71-27.61 will be positive
by allowing racetracks and/or casino simulcast venues the benefit
of another promotional tool which will stimulate additional interest
and patron participation in the sport.
Economic Impact
The proposed new rule N.J.A.C. 13:71-27.61, will likely have
a positive economic impact upon racetracks, casino operators and
the State because of the pari-mutuel handle. The handicapping
contest is designed to stimulate interest in wagering on races
by increasing the opportunity for reward to entrants in a fashion
based on competition in relationship to other entrants, which
is in addition to the basic reward of net profits from the pari-mutuel
pools. The exact arising economic impact, however, is difficult
to measure because it cannot accurately be assessed whether the
implementation of the rule will generate new wagering dollars,
or alternatively, whether wagering dollars will be diverted from
existing non-handicapping horse race wagering opportunities to
new handicapping contest wagering races.
There may be a limited economic impact associated with the implementation
of the new rule. This impact will result from the development
or acquisition of computer software necessary to offer handicapping
contests. This cost will be borne by the racetrcks or casino operators
who intend to offer handicapping contests, either directly or
through a third party agent. There may also be costs associated
with advertising the availability of handicapping contests to
the wagering public, but these costs (as well as the software
development or acquisition costs) will likely be offset from the
profits associated with this new method of horse race wagering.
It is not anticipated that an economic impact will arise due to
new manpower needs associated with offering handicapping contest
wagering, as existing staff at racetracks and casinos simulcast
facilities is considered sufficient.
Federal Standards Statement
A Federal standard’s analysis is not required because
the rules of racing are dictated by State statute N.J.S.A. 5:5-22
et seq. and the proposed new rule is not subject to any Federal
requirements or standards.
Jobs Impact
The proposed new rule will likely have no impact on the work
force in the State. No jobs will be gained or lost due to the
proposed rule. The existing number of mutuel clerks (persons who
issue pari-mutuel tickets to patrons in exchange for cash or vouchers),
SAM machines (self-activated machines, which machines issue pari-mutuel
tickets in exchange for cash or vouchers) and Tiny Tim Machines
(TIMS, or portable ticket issuing machines which, as opposed to
actually issuing pari-mutuel tickets, allow for pari-mutuel wagers
to be placed with funds on account) are adequate to handle the
wagering opportunities arising as a result of the implementation
and operation of the handicapping contests to be authorized by
this rule.
Agriculture Industry Impact
The proposed new rule will have an impact on the agriculture
industry in the State. In anticipation of increased pari-mutuel
handle due to the inception of handicapping contests, the ratio
of increased handle will also be evidenced in the horse breeding
and development, stallion, and other horse breed promotions conducted
by the Department of Agriculture as per N.J.S.A. 5:5-88.
Regulatory Flexibility Statement
The proposed new rule imposes certain compliance requirements
(see Economic Impact Statement) on racetracks and those Atlantic
City casinos which offer casino simulcasting. However, because
these businesses employ over 100 individuals full-time, they are
not “small businesses” as defined under the Regulatory
Flexibility Act, N.J.S.A. 52:14B-16 et seq., and a regulatory
flexibility analysis is not therefore required.
Smart Growth Impact
The proposed new rule is not anticipated to have an impact on
the achievement of smart growth implementation of the State Development
and Redevelopment Plan as defined under Executive Order No. 4
(2002).
Full text of the proposed new rule follows:
13:70-29.63 Handicapping contests
(a) Notwithstanding any other provision of law to the contrary,
a permit holder, casino simulcasting licensee or a combination
thereof may operate a handicapping contest at which the participants
may be charged an entry fee. The contest must be conducted in
accordance with the provisions of this rule.
(b) The operator of a handicapping contest shall distribute
all of the entry fees as prizes to the winners of the contest.
Nothing in this section shall preclude an operator from providing
additional prizes or promotions.
(c) Operators must apply to and receive the approval of the
New Jersey Racing Commission to conduct a handicapping contest
in New Jersey. The operators must secure the Commission’s
written approval of the rules and the payment of prizes prior
to the acceptance of any entry fees regarding said contest.
(d) The horse races that are the subject of the handicapping
contest must be races on which the operator of the contest is
authorized to conduct wagering.
(e) The operator of a handicapping contest must apply to the
Racing Commission for approval of each and every contest.
(f) An entrant must personally place all wagers. No person shall
directly or indirectly act as a transmitter, intermediary, or
agent in placing wagers for the entrant.
(g) Winners of wagers where taxes apply are solely responsible
for the reporting, signing and deductions made to the appropriate
State or Federal Tax Agencies.
(h) Employees or their families of the venue conducting a handicapping
contest are not eligible to participate in any tournament.
(i) Denominations of wagers and types of pools wagered must
be agreed to in contract form between the contest venue and the
racetracks participating in a handicapping contest.
(j) Racetracks, for the purpose of this section, are defined
as both in and out-of-state.
(k) All track rulings are official in the event of scratches
and disqualifications.
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