N.J. Admin. Code § 13:74C-3.3 - In-State requirement for exchange wagering administrative offices and components of exchange wagering system; waiver criteria

(a) The exchange wagering licensee, and any person or entity approved by the Commission as an exchange management agent or exchange services agent, shall each maintain an office or offices in this State, which office may comprise a single location. The Commission shall have unrestricted access to such premise or premises at all times. All business activities and functions related to the exchange wagering system, including the performance of job responsibilities incident to the exchange wagering system, the maintenance and keeping of all records related to the exchange wagering system, and all hardware or software components necessary for the operation of the exchange wagering system, shall be conducted and situated at such in-State location or locations. However, the exchange wagering licensee, or the exchange wagering licensee and any exchange management agent or exchange services agent, may respectively file a written petition or written joint petition with the Racing Commission to waive the requirement that all such exchange wagering business activities and functions be conducted and situated in-State. The Commission shall grant such a waiver, as to a particular business activity and function related to the exchange wagering system, where the Commission determines that the petitioner has established, by clear and convincing evidence, that:
1. The business activity and function proposed to be conducted outside this State may be conducted at such location consistent with law in all respects;
2. The business activity and function proposed to be conducted outside this State will not prevent or negatively implicate the ability of wagers placed through the proposed exchange wagering system to be accurately processed;
3. The business activity and function proposed to be conducted outside this State is not inconsistent with maintaining the integrity of the horse racing industry in this State;
4. The business activity and function proposed to be conducted outside this State will not unreasonably negatively impact employment opportunities in this State;
5. The business activity and function proposed to be conducted outside this State may be monitored and reviewed by the Commission, by electronic or other means from an in-State location selected by the Commission, to the satisfaction of the Commission; and
6. The business activity and function proposed to be conducted out-of-State shall not be inconsistent with the Commission's ability to readily investigate any related aspect of the exchange wagering system.
(b) Prior to the Commission's grant of any waiver of the in-State requirement of (a) above, the Commission Executive Director or his or her designee(s) shall conduct an investigative on-site inspection of each location outside this State where business activities and functions are proposed to be conducted and/or situated. Following such inspection, the Commission Executive Director shall cause to be filed a written report on the results of the investigative on-site inspection with the Commission.
(c) Notwithstanding (a) and (b) above, in the event the technological requirements of the exchange wagering system require integration with a totalisator system, the totalisator shall be located in this State and, in such case, the exchange wagering system shall utilize the same totalisator situated in the hub facility licensed by the Commission pursuant to 13:74-8.1 . Nothing contained in this subsection shall be interpreted to prohibit the exchange wagering system from utilizing technology not requiring integration with a totalisator system, and therefore comprising a stand-alone system that does not include a totalisator as one of its components.

Notes

N.J. Admin. Code § 13:74C-3.3
Adopted by 47 N.J.R. 807(b), effective 4/20/2015.

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