N.J. Admin. Code § 13:74C-2.1 - Exchange wagering initial license application process
(a) The Authority shall make an application for an
initial exchange wagering license, on a form prescribed by the Commission,
accompanied by a non-refundable filing fee of $ 2,500. The initial exchange wagering
license shall be issued for a term of one year, which in the Commission's
discretion, may be extended until December 31st of the year within which the initial
exchange wagering license expires. The Commission shall extend the initial license
period where the Authority , by clear and convincing evidence, establishes to the
Commission's satisfaction that to do so would not negatively impact the integrity of
the exchange wagering system.
(b) An
application for an initial exchange wagering license shall not be considered
complete unless:
1. The Authority demonstrates,
and the Commission investigation into the application confirms, that the
requirements of the Act have been satisfied;
2. The Authority has completely answered each
question within the application and complied with the requirements of this
section;
3. The Authority sets forth
information about the operation of the exchange, the Authority 's participation
therein, the participation of other persons or entities in the operation of the
exchange, information to establish that wagers placed through the exchange wagering
system will be accurately processed, and information to establish that there will be
sufficient safeguards to maintain the integrity of the horse racing industry in this
State;
4. The Authority sets forth
information establishing that the Commission's grant of the exchange wagering
license to the Authority will serve to promote the economic future of the horse
racing industry in this State, foster the potential for increased commerce, the
employment and recreational opportunities in this State, and to preserve the State's
open spaces;
5. The Authority discloses
whether it shall conduct or operate the exchange itself, or whether, pursuant to and
as authorized by
13:74C-3.2, it intends to enter into a
written agreement with an exchange management agent and/or exchange services
agent;
6. The Authority discloses the
physical location of all hardware and software, and administrative offices of the
exchange wagering system, and whether or not the exchange wagering platform shall be
stand-alone or shall integrate with a totalisator system;
7. The Authority discloses the number of jobs
which the exchange wagering system is expected to generate, as well as employ in
terms of pre-existing jobs, and whether the related job functions are proposed to
occur in this State or outside the State;
8. The Authority attaches written internal control
procedures of the Authority that set forth the procedures to be implemented: to
effectively operate and manage the exchange wagering system; 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 the Authority intends to enter into a written agreement with an
exchange management agent and/or exchange services agent, the Authority may satisfy
this requirement by including the internal control procedures of each such person or
entity with its application. However, in such case, the Authority shall include with
its application its own internal control procedures, which at a minimum include a
certification that it has reviewed the internal control procedures of such exchange
management agent, and/or exchange services agent, and finds them to be sufficient,
and such internal control procedures of the Authority shall further include
sufficient provisions to insure that the Authority , as the exchange wagering
licensee, maintains meaningful and adequate oversight controls with respect to both
the exchange wagering system and its exchange wagering license; and
9. The initial application shall be accompanied by
a certification, signed by a high managerial agent of the Authority , attesting that
the disclosures within the application and within its attachments are true,
accurate, and complete.
(c)
Following a determination that the application for an initial exchange wagering
license is complete, the Commission Executive Director shall within 14 days review
the application in accordance with the Act to insure that the application is in due
form and meets the requirements of law in all respects. Upon the Commission
Executive Director being satisfied that these requirements are met, the Commission
shall within 60 days thereof consider the application at a public meeting, and no
later than 30 days from the closing of the record of the public meeting where the
Commission considers the application, the Commission shall make a final
determination on the application. The Commission's final determination may prescribe
such conditions or terms as the Commission deems appropriate.
(d) The Commission may refuse to issue a license
if it shall find that the Authority has failed to demonstrate its suitability for a
license by clear and convincing evidence. The Authority shall bear the burden of
establishing to the Commission, by clear and convincing evidence, that:
1. It and its employees are qualified in all
aspects to hold the appropriate license;
2. The issuance of an exchange wagering license to
the Authority will not be inimical to the best interests of the public and the horse
racing industry in this State;
3. Wagers
placed through the exchange wagering system will be accurately processed and that
there will be sufficient safeguards to maintain the integrity of the horse racing
industry in this State; and
4. All of
the requirements of the Act and this chapter have been met, including the approval
of the Attorney General.
(e)
The Commission 's determination on the application shall be submitted to the Attorney
General for review and approval, within 14 days following the Commission 's
determination. The determination of the Commission shall be deemed approved by the
Attorney General if not affirmatively approved or disapproved by the Attorney
General within 14 days of the date of submission. The Commission shall issue the
license to the Authority , to establish the exchange, upon approval of the Attorney
General. The Attorney General shall approve the Commission's determination where the
Attorney General, in his or her discretion, finds that the Commission's
determination was consistent with the Act and this chapter. The decision of the
Attorney General shall be deemed a final decision, and the Attorney General may
prescribe such conditions or terms as he or she deems appropriate.
Notes
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