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1. |
Upgrade,
expand and relocate the New Jersey Racing Commission
equine testing laboratory. |
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The
equine testing laboratory is funded by the racing
industry and is subject to the jurisdiction of
the Racing Commission in terms of testing policy.
It is staffed by State Police personnel and is
part of the State Police Forensic Science Bureau.
Laboratory personnel test specimens collected
from racehorses for the presence of illegal drugs.
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Currently,
the Lab is located on the grounds of the Meadowlands
Racetrack and relocating to a larger facility
has been a priority for years. The Commissioners
believe that increasing the size of the laboratory
and purchasing new testing equipment is needed
to effectively regulate racing in the future. |
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2. |
Complete an audit of
the books and records of the New Jersey Account
Wagering Licensee.
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Account wagering commenced in
New Jersey in October 2004. Account wagering
presently consists of the ability of New Jersey
residents to establish and maintain multi-day
wagering accounts (prior to this new law, one-day
accounts only were permitted), through which
wagers on horse racing may be debited and winning
wagers credited. Patrons can now wager within
New Jersey by telephone (through an automated
system), by computer, and at eligible New Jersey
racetracks and off-track wagering facilities
using their account.
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With
the bulk of the system now operational, the Racing
Commission believes it is an opportune time to
exercise its authority to conduct an audit of
the account wagering licensee’s books and
records. Such an audit will serve to ensure that
the requirements set forth in its rules, concerning
account wagering, are being followed. If any deficiencies
are detected, such an audit will allow for the
ability to implement remedial measures. Hopefully,
this initiative will provide evidence that the
Account Wagering System, through diligent oversight,
is operating accurately and efficiently. |
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3. |
Licensing Initiatives - digital fingerprinting
of all Racing Commission licensees; electronic
web-based license applications. |
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The
Racing Commission has a continuing interest
in implementing a digital fingerprinting system
in 2008. Presently, the Racing Commission fingerprints
approximately 4,000 license applicants per year.
The conversion from the existing “ink
and roll” to a digital system will be
more efficient and will allow for a quicker
response from the Federal Bureau of Investigation
concerning criminal history information.
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The
Racing Commission would also like to implement
a web-based electronic filing of licensing applications.
Upgrading the license application process to such
a system will not only provide a convenience to
applicants but will also result in increased efficiencies
of the licensing operation. Currently all applications
are completed manually and either presented in
person to a Racing Commission licensing inspector
for processing or submitted through the mail for
processing. Licensing inspectors must enter the
licensing information manually into the computer
system before a license can be issued. Electronic
submission of applications and payment will eliminate
the manual entering of information which will
expedite the processing time and reduce the number
of manually processed applications. |
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4. |
Enhancement
of pari-mutuel monitoring and security |
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Pari-mutuel wagering has evolved
into an expansive and growing wagering system.
Betting on races originating in New Jersey has
expanded from on-track wagering by patrons in
attendance at a particular in-state racetrack
to wagering by patrons in attendance at other
in-state racetracks, out-of-state racetracks,
out-of-country racetracks, and off-track and
account wagering facilities located worldwide.
Patrons from around the world now have the ability
to wager on horses competing at New Jersey racetracks.
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Monitoring of wagering became
more complicated as the wagering expanded. Concern
over the ability to effectively monitor the
current system of wagering is growing. This
is an industry concern that confronts all racing
jurisdictions. Association of Racing Commissioners
International (ARCI), the trade association
of pari-mutuel regulators, through its subsidiary,
RCI Integrity Services, has
developed an independent monitoring system that
has recently been made available to all regulators
that provides:
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- real-time
regulatory monitoring and auditing services
for all the wagering activity of the customer
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an independent auditing service for the proceeds
of pari-mutuel wagering
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coordination with system operators and State
Regulators, providing a consolidated response
to all detected wagering discrepancies
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methods to define and implement tracking and
escalation procedures to ensure a coordinated
response to wagering discrepancies
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The
New Jersey Racing Commission has received a detailed
explanation of the services provided by RCI Integrity
Services and has had preliminary discussions with
representatives of the New Jersey racetracks.
It is the Commission’s intention to pursue
implementation of this service once its effectiveness
has been demonstrated and adequate funding has
been identified. |
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5. |
Regulatory
due diligence of secondary pari-mutuel organizations
(SPMO’s) |
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SPMO’s are defined as
non-racetrack facilities that conduct pari-mutuel
wagering. SPMO’s located in the United
States and Canada are regulated entities and
are licensed as such in each jurisdiction. However,
there are many SPMO’s located off-shore
which do not undergo any type of thorough licensing
review. Many racing regulators have relied on
representations made by racetracks as to the
suitability of exporting signals to entities
not licensed in the US or Canada due to limited
resources. Because these entities are not within
the geographic boundaries of a jurisdiction,
in-person inspections, interviews with key personnel,
technology tests and audits are not possible.
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The
failure to conduct regulatory due diligence came
to national attention with the highly publicized
Uvari indictments, where allegations of identity
fraud, money laundering and ties to organized
crime were raised. These indictments were both
embarrassing to the tracks as well as the regulatory
agencies who did not conduct independent assessments
as to the simulcasting partners of their licensed
racetracks. As such, many racing commissions are
concerned that they can no longer rely simply
on representations made by racetracks as to the
suitability of their simulcast export partners.
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Absent
a national certification program, the New Jersey
Racing Commission has decided to create a due
diligence questionnaire designed to provide necessary
information as to the suitability of the off-shore
entity. The failure of such entities to complete
said questionnaire and provide the requested information
will cause their application to be denied, prohibiting
New Jersey racetracks from simulcasting their
races to this entity. |
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6. |
Modification
of regulations defining the Racing Commissions
authority to conduct warrant-less searches of
farms where racehorse are stabled |
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With
the assistance of the Division of Law, the New
Jersey Racing Commission intends to conduct a
comprehensive review and amend existing regulations
for the purpose of defining when and where the
Racing Commission can conduct warrant- less searches
of farms where race horses are situated. The Racing
Commission believes it should pass regulations
that clearly define when and where the Racing
Commission may conduct administrative warrant-less
searches The regulations should also define the
scope of said searches including a clear determination
as to the appropriate and legal limitations of
the searching investigator. |
