SENATE STATE GOVERNMENT, WAGERING, TOURISM & HISTORIC PRESERVATION COMMITTEE

STATEMENT TO

SENATE, No. 1323

with committee amendments

STATE OF NEW JERSEY

DATED: FEBRUARY 6, 2012

      The Senate State Government, Wagering, Tourism and Historic Preservation Committee reports favorably and with committee amendments Senate Bill No. 1323.

      This bill makes various changes to the law governing casino gaming in this State.

      As amended by the committee, the bill:

      authorizes the division to allow electronic versions of authorized games to be played on mobile gaming devices within an approved hotel facility, including any area within the property boundaries of the casino hotel such as the pool and outdoor recreation areas; provided the player has established an account with the casino licensee, the wager is placed by and paid to the patron in person within the approved hotel facility, the mobile gaming device is inoperable outside the approved hotel facility, the division authorizes the device for mobile gaming, and ensures that gaming will not extend outside of the casino hotel’s property boundaries;

      amends the definition of “gross revenue” to specify that the cash equivalent value of any merchandise or thing of value included in a jackpot or payout will be included in the total of all sums paid out as winnings to patrons for purposes of determining gross revenue, and that such cash equivalent value must be equal to the amount actually paid by the casino licensee for the merchandise or thing of value;

      amends the definition of "corporate officer" to include chief compliance officer;

      clarifies in one section of the law that it is the Division of Gaming Enforcement, not the Casino Control Commission, that will decide which persons are to be qualified in conjunction with a casino license or casino license applicant;

      removes the requirement for the commission’s prior approval of a non-publicly traded corporation’s transfers of securities, shares, and other interests in connection with that corporation’s application for a casino license, but clarifies that the commission receives notice of such transfers and may disapprove within five business days from receiving the notice, or the transfers become effective at the end of that period; 

      removes the prohibition against a casino key employee licensee wagering in any casino outside of the State, and removes a reference to any person who is required to hold a casino key employee license as a condition of employment or qualification;

      permits a casino licensee to accept a check, from a person to take part in gaming or simulcast wagering as a player, issued by any entity, not just a check issued by an affiliate casino licensee;

      restores language deleted by P.L.2011, c.19 so that a casino licensee may compensate a junket enterprise or representative based upon the actual casino gaming or simulcast wagering  activities of a patron procured or referred by the junket enterprise or representative; 

      permits participation agreements between casino licensees and casino service industry enterprise licensees, or applicants for such licenses, which involve the purchase or lease of slot machines, to provide for payments of an interest, percentage, or share of the proceeds from the operation of the slot machines to the casino service industry enterprise licensees or applicants, subject to the approval of the Division of Gaming Enforcement; and 

      provides that a former employee of the Casino Control Commission who has been hired by the Division of Gaming Enforcement will retain all seniority and rights attendant thereto.

COMMITTEE AMENDMENTS:

      The committee amended the bill to provide that:

      (1) consistent with a provision in current law, the commission does not have the right of prior approval of transfers of securities, shares, and other interests in a casino applicant’s corporation, but the commission receives notice of, and may disapprove, such transfers within five business days of receiving the notice.  Transfers that are not disapproved by the commission become effective following the five business day period; and

      (2) mobile gaming devices may be used by patrons in any area located within the property boundaries of the casino hotel facility, including the swimming pool area and an outdoor recreation area, provided that the division must ascertain and ensure, pursuant to rules and regulations to be issued by it to implement mobile gaming, that mobile gaming must not extend outside of the property boundaries of the casino hotel facility.