The following words and terms, when used in this chapter, shall
have the following meanings, unless the context clearly indicates otherwise:
"Act" means the Exchange Wagering Act,
2011, c. 15
"Authority" means the New Jersey Sports and Exposition Authority
created by section 4 of P.L. 1971, c. 137 (5:10-4
"Back" means to wager on a selected outcome occurring in a given
"Commission" means the New Jersey Racing Commission, created by
section 1 of P.L. 1940, c. 17 (5:5-22
"Commission Executive Director" means the Executive Director of
"Corrective wager" means an exchange wager placed by the exchange
wagering licensee in a given market, under circumstances approved by the Commission,
in order to address the impact on that market of the cancellation or voiding of a
given matched wager or given part of a matched wager.
"Dormant account" means an exchange wagering account, established
pursuant to the Act and this chapter, which has remained inactive for a continuous
period of 24 months in that, during such 24-month continuous period, no valid
exchange wagers were made utilizing funds in that account, no valid deposits or
credits were made to the exchange wagering account, and no valid debits or
withdrawals were made to the exchange wagering account.
"Exchange" means a system operated by the exchange wagering
licensee in which the exchange wagering licensee maintains one or more markets in
which residents of this State may back or lay a selected outcome on horse races
conducted within and outside this State.
"Exchange management agent" means a qualified person or entity who
the exchange wagering licensee enters into a written management agreement with, to
conduct or operate the exchange for it, and/or to act as its agent in all exchange
wagering matters approved by the Commission. An exchange management agent may also,
but is not required to, directly provide the services of an exchange services
"Exchange revenues" means all charges and fees of any kind
assessed or collected by the exchange wagering licensee, in connection with the
submission of any exchange wagers to the exchange wagering licensee, by residents of
"Exchange services agent" means a qualified person or entity who
the exchange wagering licensee, or exchange management agent on behalf of the
exchange wagering licensee, enters into a written services agreement with, to
directly provide the computer hardware and software, technological services, and
related support services, which services are necessary for aspects of the conduct or
operation of exchange wagering.
"Exchange wagers" means wagers, by residents of this State, on the
results of horse races conducted in this State or jurisdictions outside this State,
which wagers are submitted (in person, by direct telephone call, or by communication
through computer or other electronic media approved by the Commission) to and
accepted by the exchange wagering licensee to be posted, that is, matched and
pooled, in a market or markets on an exchange.
"Exchange wagering" means the form of parimutuel wagering,
authorized by this chapter, in which two or more persons place identically opposing
wagers in a given market, and which wagering is conducted by the exchange wagering
licensee pursuant to a valid exchange wagering license issued by the Commission, and
pursuant to and in compliance with the Act, this chapter, any conditions established
by the Commission therefor, and the provisions of the Interstate Horse Racing Act of
15 U.S.C. §§
-3007, as amended.
"Exchange wagering account" means the account established with the
exchange wagering licensee by a person, who is a New Jersey resident, through which
exchange wagers may be made by the account holder.
"Exchange wagering licensee" means the Authority, provided that
the Commission has granted its approval for the Authority to establish an exchange
as provided for in this chapter. "Exchange wagering licensee" may also mean a
successor in interest to the Authority, as defined in this subchapter.
"Exchange wagering system" means a system through which exchange
wagers are processed.
"Hub facility" means a facility in this State that acts as an
intermediary between each in-State wagering track or wagering outlet, and an
in-State sending track or host facility or out-of-State sending track or host
facility, with respect to the transmission of parimutuel wagering data and other
information related to pari-mutuel wagering, in connection with the type of
pari-mutuel wagering conducted pursuant to N.J.A.C. 13:70, 71, 72,
73, 74, and 74B.
"Identically opposing wagers" means wagers in which one or more
persons offer to lay a selected outcome at the same price at which one or more
persons offer to back that same outcome, with the amount subject to the lay being
proportionately commensurate to the amount subject to the back.
"Internal control procedures" means the written procedures
required to be maintained and updated as necessary, for Commission approval, by the
exchange wagering licensee, any exchange management agent employed by the exchange
wagering licensee, and any exchange services agent employed by the exchange wagering
licensee or exchange management agent, that set forth procedures to effectively
operate and manage the exchange wagering system as provided for in this chapter,
including: to insure that wagers placed through the exchange wagering system will be
accurately processed and that all aspects of wagering integrity and wagering
recordkeeping will be maintained; to
effectively insure that the exchange wagering system operates with
fiscal soundness and technological reliability; and to effectively insure that there
will be sufficient safeguards to maintain the integrity of the horse racing industry
in this State. Where an exchange management agent or exchange services agent is
employed in connection with the exchange wagering system, the internal control
procedures of the exchange wagering licensee shall also include meaningful and
adequate oversight controls with respect to both the exchange wagering system and
its exchange wagering license.
"Interstate exchange pool" means an exchange wagering system
established within this State or in another state or foreign nation within which is
combined unmatched wagers on one or more horse races in order to form identically
"Lay" means to wager on a selected outcome not occurring in a
"Market" means, in relation to a given horse race or a given set
of horse races, a particular outcome that is subject to exchange wagering as
determined by the exchange wagering licensee.
"Matched wager" means the wager that is formed when two or more
persons are confirmed by the exchange wagering licensee as having placed identically
opposing wagers in a given market on the exchange.
"Net exchange revenues" means those exchange wagering revenues
that remain after certain deductions are made from exchange revenues, as required by
through 5, and which are to be distributed between and amongst the exchange wagering
licensee and racetrack permitholders pursuant to
"Net winnings" means the aggregate amounts payable to a person,
through an exchange wagering account established by that person consistent with this
chapter, as a result of that person's winning matched wagers in a pool, less the
aggregate amount paid by that person as a result of that person's losing matched
wagers in that pool.
"Off-time" means the official time when wagering is ceased prior
to the start of a horse race, or in the event the transmission of data conveying the
official time of cessation of wagering to the exchange wagering licensee is
interrupted or corrupted, the time wagering ceases in accordance with the internal
control procedures of the exchange wagering license.
"Parimutuel" means any system whereby wagers with respect to the
outcome of a horse race are placed with, or in, a wagering pool conducted by an
authorized person or entity, and in which the participants are wagering with each
other and not against the person or entity conducting the wagering pool.
"Pool" means the total of all matched wagers in a given
"Price" means the odds for a given exchange wager.
"Racetrack permitholder" means an entity, which holds a racetrack
permit, issued by the Commission, to operate the Atlantic City Race Course, Freehold
Raceway, Monmouth Park, New Meadowlands Racetrack, or any other racetrack for which
a permit to lawfully conduct racing may be issued by the Commission, who are each
eligible to enter into a business agreement with the exchange wagering licensee,
pursuant to this chapter, as concerns participation in exchange wagering and the
distribution of net exchange wagering revenues.
"Successor in interest" means the person or entity to whom, with
the prior approval of the Commission and Attorney General, the initial exchange
wagering license, or the renewed exchange wagering license, has been transferred or
"Supervisor of Mutuels" means the Commission employee, who reports
to the Commission Executive Director, and who acts on behalf of the Commission in
overseeing the conduct of parimutuel wagering in this State, including exchange
"Totalisator" means a computer situated within the in-State hub
facility that, among other things, directly or indirectly through one or more
totalisators receives parimutuel wagering information, calculates payoffs for
winning parimutuel tickets, generates reports with respect to such information, and
in the event that the transmission of data from a sending or host racetrack has been
interrupted, automatically ceases wagering in accordance with the internal control
procedures of the hub facility, in connection with the type of parimutuel wagering
conducted pursuant to N.J.A.C. 13:70, 71, 72, 73, 74, and
"Unmatched wager" means a wager or portion of a wager placed in a
given market within an exchange that does not become part of a matched wager because
there are not one or more available exchange wagers in that market with which to
form one or more identically opposing wagers.