New Jersey § 5:12-95

§ 5:12-95.

The Legislature finds and declares that: a. The 1976 amendment to the New Jersey Constitution that amended Article IV, Section

VII, paragraph 2 thereof, and the “Casino Control Act,” P.L.1977, c. 110 ( C.5:12-1 et seq. ), that authorized casino gaming in Atlantic City casinos clearly demonstrate, both

through their text and their legislative history, that a fundamental goal of these

enactments was to achieve the rehabilitation of Atlantic City as a tourist and resort

destination; and b. As recognized in the July 2010 Report of the Governor's Advisory Commission on

New Jersey Gaming, Sports, and Entertainment, and as confirmed in subsequent legislative

hearings held in Trenton and throughout the State culminating in the enactment of

significant bipartisan reform legislation in February of 2011 ( P.L.2011, c. 18 and P.L.2011, c. 19 ), legalized casino gaming in New Jersey presently stands at a crossroads, facing

critical regional and global challenges that jeopardize its important role in the

State's economy; and c. The State and New Jersey's general public possess a vital interest in the success

of tourism and casino gaming in Atlantic City, having established a limited exception

to the general policy of the State concerning gaming for private gain under Article IV, Section VII, paragraph 2 of the New Jersey Constitution within Atlantic City, which by reason of its location, natural resources, and historical

prominence and reputation as a noteworthy tourist destination, has been determined

by the people of this State, the Legislature, and the Governor to be a unique and

valuable asset that must be preserved, restored, and revitalized; and d. The tourist, resort, and convention industry in Atlantic City constitutes a critical

component of our State's economic infrastructure that, if properly regulated, developed,

and fostered, is capable of providing a substantial contribution to the general health,

welfare, and prosperity of the State and its residents; and e. As recognized in the State Constitution and the Casino Control Act, as well as

in P.L.2011, c. 18 and P.L.2011, c. 19 , an important component of the State's historical and ongoing commitment to Atlantic

City involves creating and maintaining a robust casino gaming industry that is capable

of competing regionally, nationally, and internationally at the highest levels of

quality while, at the same time, fully retaining strict State regulatory oversight

to ensure the integrity of all casino gaming operations conducted in this State;

and f. Since the development of the Internet, millions of people have chosen to gamble

online through illegal off-shore operators, and such gambling is conducted without

oversight, regulation, enforcement, or consumer protections, all of which raise significant

concerns for the protection of individuals and consumers in this State; and g. In October 2006, the United States Congress passed the Unlawful Internet Gambling

Enforcement Act, 31 U.S.C. 5361 et seq., which generally prohibits the use of banking instruments, including credit cards,

checks, and fund transfers, for interstate Internet gambling, essentially prohibiting

online gambling by United States citizens, but which includes exceptions that permit

individual states to create a regulatory framework to enable intrastate Internet gambling,

provided that the bets or wagers are made exclusively within a single state under

certain circumstances; and h. An effective State regulatory and licensing system for participating in online

gaming would increase public trust and confidence in legalized gambling, inhibit wagering

by underage or otherwise vulnerable individuals, ensure that any games offered through

the Internet are fair and safe, end the practice of sending much-needed jobs and tax

revenue overseas to illegal operators while creating jobs and economic development

in Atlantic City, and ensure that only those of good character and fitness who meet

strict criteria may participate in Internet gaming operations in New Jersey; and i. Moreover, providing regulators and law enforcement with the tools to restrict and

stop the illegal Internet gambling market that takes place via the Internet in foreign

jurisdictions and authorizing strict controls over how Atlantic City casinos may accept

wagers placed over the Internet for games conducted in Atlantic City casinos will

assist and enhance the rehabilitation and redevelopment of existing tourist and convention

facilities in Atlantic City consistent with the original intent of the Casino Control

Act and will further assist in marketing Atlantic City to customers that now have

the convenience of gambling in jurisdictions closer to their homes through the legalization

of gambling in states throughout the United States over the past three decades; and j. Internet gaming, as defined and strictly limited in P.L.2013, c. 27 ( C.5:12-95.17 et al.), is unlike pari-mutuel wagering and other forms of remote gambling and will

take place entirely on the servers and computer equipment located in the casino based

in Atlantic City or in another facility in Atlantic City owned or leased by the casino licensee and

thereby considered to be part of the casino hotel facility that is secure, inaccessible

to the public, and specifically designed to house that equipment, and where the equipment

will be under the complete control of a casino licensee or its Internet gaming affiliate . By contrast, in off-track pari-mutuel simulcast wagering, the customer places a

wager at an off-track facility, the wager is accepted by the off-track facility, as

evidenced by issuance of a ticket, and any amounts paid on a winning wager are paid

out and received at the off-track facility. Any rights on the part of a customer in the event of a dishonored, misdirected or

other frustrated pari-mutuel wager arise against the off-track facility where the

wager is placed and received, not against the remote track at which the race is run;

and k. Internet gaming as authorized and limited under this act, on the other hand, requires

that all hardware, software, and other equipment that is involved with Internet gaming

will be located in casino facilities in Atlantic City or in other facilities in Atlantic City owned or leased by a casino licensee and thereby

considered to be part of a casino hotel facility that are secure, inaccessible to

the public, and specifically designed to house that equipment, and where the equipment

will be under the complete control of a casino licensee or its Internet gaming affiliate . All that is needed by a customer is a computing or similar device of general application

and a communications connection through a common carriage or similar medium. For example, in an online poker or other card game, the “ table ” is the server hosted by the operator in the casino premises in Atlantic City. The “cards” are played on that table in Atlantic City, and the wager is placed on

and accepted at that table. No activity other than the transmission of information to and from the players along

common carriage lines takes place outside of Atlantic City ; and l . Pursuant to the 1976 amendment to the New Jersey State Constitution and the express

authorization to the Legislature to determine the type of gambling games that may

be conducted in casinos under regulation and control by the State, the Legislature

hereby declares that in furtherance of the goals of the Casino Control Act and in

recognition that the technologies necessary to support Internet gaming can be prescribed

and implemented in a manner that ensures all such gambling activity occurs within

casinos located in Atlantic City or in other facilities in Atlantic City owned or leased by a casino licensee and thereby

considered to be part of a casino hotel facility that are secure, inaccessible to

the public, and specifically designed to house Internet gaming equipment, and where

that equipment will be under the complete control of a casino licensee or its Internet

gaming affiliate , it is appropriate that the Casino Control Act be amended and supplemented to authorize

licensed casino operators to conduct such games within the casino premises with all

wagering to be conducted solely within the casinos.