New Jersey § 5:12-104

§ 5:12-104.

a. Unless otherwise provided in this subsection, no agreement shall be lawful which

provides for the payment, however defined, of any direct or indirect interest, percentage

or share of: any money or property gambled at a casino or simulcasting facility;

any money or property derived from casino gaming activity or wagering at a simulcasting

facility; or any revenues, profits or earnings of a casino or simulcasting facility. Notwithstanding the foregoing: (1) Agreements which provide only for the payment of a fixed sum which is in no way

affected by the amount of any such money, property, revenues, profits or earnings

shall not be subject to the provisions of this subsection; and receipts, rentals

or charges for real property, personal property or services shall not lose their character

as payments of a fixed sum because of contract, lease, or license provisions for adjustments

in charges, rentals or fees on account of changes in taxes or assessments, cost-of-living

index escalations, expansion or improvement of facilities, or changes in services

supplied. (2) Agreements between a casino licensee and a junket enterprise or junket representative

licensed, qualified or registered in accordance with the provisions of P.L.1977, c.

110 ( C.5:12-1 et seq. ) and the regulations of the division which provide for the compensation of the junket

enterprise or junket representative by the casino licensee based upon the actual casino

gaming or simulcast wagering activities of a patron procured or referred by the junket

enterprise or junket representative shall be lawful if filed with the division prior

to the conduct of any junket that is governed by the agreement. (3) Agreements between a casino licensee and its employees which provide for casino

employee or casino key employee profit sharing shall be lawful if the agreement is

in writing and filed with the division prior to its effective date. Such agreements may be reviewed by the division under any relevant provision of

P.L.1977, c. 110 ( C.5:12-1 et seq. ). (4) Agreements to lease an approved casino hotel or the land thereunder and agreements

for the complete management of all casino gaming operations in a casino hotel shall

not be subject to the provisions of this subsection but shall rather be subject to

the provisions of subsections b. and c. of section 82 of this act. 1 (5) Agreements which provide for percentage charges between the casino licensee and

a holding company or intermediary company of the casino licensee shall be in writing

and filed with the division but shall not be subject to the provisions of this subsection. (6) Agreements relating to simulcast racing and wagering between a casino licensee

and an in-State or out-of-State sending track licensed or exempt from licensure in

accordance with section 92 of P.L.1977, c. 110 ( C.5:12-92 ) shall be in writing, be filed with the division, and be lawful and effective only

if expressly approved as to their terms by the division and the New Jersey Racing

Commission, except that any such agreements which provide for a percentage of the

parimutuel pool wagered at a simulcasting facility to be paid to the sending track

shall not be subject to the provisions of this subsection. (7) Agreements relating to simulcast racing and wagering between a casino licensee

and a casino service industry enterprise licensed pursuant to the provisions of subsection

a. of section 92 of P.L.1977, c. 110 ( C.5:12-92 ) as a hub facility, as defined in joint regulations of the Division of Gaming Enforcement

and the New Jersey Racing Commission, shall be in writing, be filed with the commission,

and be lawful and effective only if expressly approved as to their terms by the commission

and the New Jersey Racing Commission, except that any such agreements which provide

for a percentage of the casino licensee's share of the parimutuel pool wagered at

a simulcasting facility to be paid to the hub facility shall not be subject to the

provisions of this subsection. (8) Agreements relating to simulcast racing and wagering between a casino licensee

and a casino service industry enterprise licensed pursuant to the provisions of subsection

a. of section 92 of P.L.1977, c. 110 ( C.5:12-92 ) to conduct casino simulcasting in a simulcasting facility shall be in writing, be

filed with the commission, and be lawful and effective only if expressly approved

as to their terms by the commission, except that any such agreements which provide

for a percentage of the casino licensee's share of the parimutuel pool wagered at

a simulcasting facility to be paid to the casino service industry enterprise shall

not be subject to the provisions of this subsection. (9) Written agreements relating to the operation of multi-casino or multi-state progressive

slot machine systems between one or more casino licensees and a casino service industry

enterprise licensed pursuant to the provisions of subsection a. of section 92 of P.L.1977,

c. 110 ( C.5:12-92 ), or an eligible applicant for such license, which provide for an interest, percentage

or share of the casino licensee's revenues, profits or earnings from the operation

of such multi-casino or multi-state progressive slot machines to be paid to the casino

service industry enterprise licensee or applicant shall not be subject to the provisions

of this subsection if the agreements are filed with and approved by the division. (10) A written agreement between a casino licensee and a casino service industry enterprise

licensed pursuant to subsection a. of section 92 of P.L.1977, c. 110 ( C.5:12-92 ), or an eligible applicant for such license, relating to the construction, renovation

or operation of qualifying sleeping units, as defined in section 27 of P.L.1977, c.

110 ( C.5:12-27 ), or of non-gaming amenities, as defined by the division, within the limits of the

city of Atlantic City, regardless of whether such qualifying sleeping units or non-gaming

amenities are connected to a casino hotel facility, which provides for an interest,

percentage or share of the casino licensee's revenues, profits or earnings, not to

exceed 5% of the casino licensee's revenues, to be paid to the casino service industry

enterprise licensee or applicant in return for the construction, renovation or operation

of such qualifying sleeping units or non-gaming amenities shall not be subject to

the provisions of this subsection provided that: (i) the agreement requires a capital

investment, at least 10% of which shall be made by the casino service industry enterprise

licensee or applicant over the term of the agreement, of not less than $30 million,

which minimum amount shall be adjusted periodically by the division for inflation;

(ii) the division finds that the total amount of casino revenues, profits or earnings

that can be paid to the casino service industry enterprise licensee or applicant pursuant

to this agreement is commercially reasonable under the circumstances; and (iii) the

agreement is filed with and approved by the division. (11) A written agreement between a casino licensee holding an Internet gaming permit

and a casino service industry enterprise licensed pursuant to subsection a. of section

92 of P.L.1977, c. 110 ( C.5:12-92 ), or an eligible applicant for such a license, in connection with the conduct of

Internet gaming under P.L.2013, c. 27 ( C.5:12-95.17 et al.), which provides for a percentage of the casino licensee's Internet gaming

gross revenue to be paid to the casino service industry enterprise licensee shall

not be subject to the provisions of this subsection, provided that the agreement shall

be in writing, filed with the division, and shall be lawful and effective only if

the terms thereof are expressly approved by the division. (12) A written agreement between a casino licensee and a casino service industry enterprise

licensed pursuant to subsection a. of section 92 of P.L.1977, c. 110 ( C.5:12-92 ), or an eligible applicant for such a license, in connection with the conduct of

mobile gaming under section 100 of P.L.1977, c. 110 ( C.5:12-100 ), or mobile sports pool operations within a casino hotel facility in areas in which

mobile gaming under section 100 of P.L.1977, c. 110 ( C.5:12-100 ) is authorized, which provides for a percentage of the casino licensee's gross revenue

from mobile gaming to be paid to the casino service industry enterprise licensee shall

not be subject to the provisions of this subsection, provided that the agreement shall

be in writing, filed with the division, and shall be lawful and effective only if

the terms thereof are expressly approved by the division. (13) A written agreement between a casino licensee and a casino service industry enterprise

licensed pursuant to subsection a. of section 92 of P.L.1977, c. 110 ( C.5:12-92 ), or an eligible applicant for such a license, in connection with the conduct of

a sports pool, including an online sports pool, mobile sports pool operations within

a casino hotel facility in areas in which mobile gaming under section 100 of P.L.1977,

c. 110 ( C.5:12-100 ) is authorized, or both, which provides for a percentage of the casino licensee's

gross revenue from the operations of a sports pool, including online sports pool and

mobile operations, to be paid to the casino service industry enterprise licensee shall

not be subject to the provisions of this subsection, provided that the agreement shall

be in writing, filed with the division, and shall be lawful and effective only if

the terms thereof are expressly approved by the division. b. Each casino applicant or licensee shall maintain, in accordance with the rules

of the division, a record of each written or unwritten agreement regarding the realty,

construction, maintenance, or business of a proposed or existing casino hotel or related

facility. The foregoing obligation shall apply regardless of whether the casino applicant

or licensee is a party to the agreement. Any such agreement may be reviewed by the division on the basis of the reasonableness

of its terms, including the terms of compensation, and of the qualifications of the

owners, officers, employees, and directors of any enterprise involved in the agreement,

which qualifications shall be reviewed according to the standards enumerated in section

86 of P.L.1977, c. 110 ( C.5:12-86 ). If the division disapproves such an agreement or the owners, officers, employees,

or directors of any enterprise involved therein, the division may require its termination. Every agreement required to be maintained, and every related agreement the performance

of which is dependent upon the performance of any such agreement, shall be deemed

to include a provision to the effect that, if the commission shall require termination

of an agreement pursuant to its authority under P.L.1977, c. 110 ( C.5:12-1 et seq. ), such termination shall occur without liability on the part of the casino applicant

or licensee or any qualified party to the agreement or any related agreement. Failure expressly to include such a provision in the agreement shall not constitute

a defense in any action brought to terminate the agreement. If the agreement is not maintained or presented to the commission in accordance

with division regulations, or the disapproved agreement is not terminated, the division

may pursue any remedy or combination of remedies provided in this act. For the purposes of this subsection, “ casino applicant ” includes any person required to hold a casino license pursuant to section 82 of

P.L.1977, c. 110 ( C.5:12-82 ) who has applied to the division for a casino license or any approval required under

P.L.1977, c. 110 ( C.5:12-1 et seq. ). c. Nothing in this act shall be deemed to permit the transfer of any license, or any

interest in any license, or any certificate of compliance or any commitment or reservation. 1

N.J.S.A. § 5:12-82.