A4297

An Act concerning the conduct of certain games of chance remotely and amending P.L.1954, c.6 and P.L.1954, c.5.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 2 of P.L.1954, c.6 (C.5:8-25) is amended to read as follows:

2. a. It shall be lawful for the governing body of any municipality, at any time after this act shall become operative within such municipality and except when prohibited by this act, to license bona fide organizations or associations of veterans of any war in which the United States has been engaged, churches or religious congregations and religious organizations, charitable, educational and fraternal organizations, civic and service clubs, senior citizen associations and clubs, officially recognized volunteer fire companies, and officially recognized volunteer first aid or rescue squads, to hold and operate games of chance of, and restricted to, the specific kind of game of chance commonly known as bingo or lotto played for prizes with cards bearing numbers or other designations, five or more in one line, the holder covering numbers, as objects, similarly numbered, are drawn from a receptacle and the game being won by the person who first covers a previously designated arrangement of numbers on such a card, by selling shares or tickets or rights to participate in such games and by conducting the games accordingly, when the entire net proceeds of such games of chance are to be devoted to educational, charitable, patriotic, religious or public-spirited uses, and, in the case of organizations or associations of veterans, and senior citizen associations or clubs, to the support of such organizations, and for any such organization, association, church, congregation, society, club, fire company, first aid or rescue squad, or senior citizen association or club, when so licensed, to hold, operate and conduct such games of chance by its active members pursuant to this act and such license, and under such conditions and regulations for the supervision and conduct thereof as shall be prescribed by rules and regulations duly adopted from time to time by the Legalized Games of Chance Control Commission, hereinafter designated as the control commission, not inconsistent with the provisions of this act, but only when the entire net proceeds thereof are devoted to the uses aforesaid and for any person or persons to participate in and play such games of chance conducted under any such license.

b. (1) The control commission shall, pursuant to regulations promulgated by it, authorize the use in conducting bingo or lotto of electronic devices that are the functional equivalent of the cards,

numbered objects, and receptacle described herein to the extent that the use of such devices is not inconsistent with any other provision of this act or the provisions of subparagraph A of the New Jersey Constitution, Article IV, Section 7, paragraph 2. Any such electronic device shall comply with specifications prescribed by the commission and shall be approved by the commission prior to use. Such devices shall not include any device into which currency, coins or tokens may be inserted or from which currency, coins or tokens, or any receipt for monetary value, can be dispensed or which, once provided to a person participating in bingo, is capable of communicating with other such devices. Nothing contained in this [section] paragraph shall be construed as allowing electronic devices used by a qualified organization in conducting bingo or lotto to be linked to electronic devices used by any other qualified organization in conducting bingo or lotto.

(2) The control commission shall adopt regulations permitting the conduct of bingo or lotto remotely using communication technology in a manner consistent the provisions of P.L.1954, c.6 (C.5:8-24 et seq.) and to the extent not inconsistent with the provisions of subparagraph A of the New Jersey Constitution, Article IV, Section 7, paragraph 2. Such technology shall comply with specifications prescribed by the commission and shall be approved by the commission prior to use. A licensee conducting bingo or lotto pursuant to this paragraph shall verify that the physical location of each participant, irrespective of the location of any server or intermediate routing of electronic data, is within a municipality in which the majority of voters voting therein voted in favor of the adoption of the provisions of P.L.1954, c.6 (C.5:8-24 et seq.) and in which such provisions are still in effect. For the purpose of conducting bingo or lotto pursuant to this paragraph, the location of the active member or other person approved by the control commission to hold, operate, or conduct the game shall be deemed the licensed premises.

(cf: P.L.2013, c.85, s.1)

2. Section 2 of P.L.1954, c.5 (C.5:8-51) is amended to read as follows:

2. a. It shall be lawful for the governing body of any municipality, at any time after this act shall become operative within such municipality and except when prohibited by this act, to license bona fide organizations or associations of veterans of any war in which the United States has been engaged, churches or religious congregations and religious organizations, charitable, educational and fraternal organizations, civic and service clubs, senior citizen associations and clubs, officially recognized volunteer fire companies, and officially recognized volunteer first aid or rescue squads, to hold and operate the specific kind of game or games of chance commonly known as a raffle or raffles played by drawing for prizes or the allotment of prizes by chance, by the selling of shares or tickets or rights to participate in such game or games and by conducting the game or games accordingly, when the entire net proceeds of such games of chance are to be devoted to educational, charitable, patriotic, religious or public-spirited uses, and in the case of organizations or associations of veterans, and senior citizen associations and clubs to the support of these organizations, and for any such organization or association, church, congregation, society, club, company or squad, when so licensed or without any license when and as hereinafter prescribed, to hold, operate and conduct such game of chance pursuant to this act and such license, in such municipality and to sell shares or tickets or rights to participate in such game or games of chance therein and in any other municipality which shall have adopted this act and under such conditions and regulations for the supervision and conduct thereof as shall be prescribed by rules and regulations duly adopted from time to time by the Legalized Games of Chance Control Commission, hereinafter designated as the control commission, not inconsistent with the provisions of this act, but only when the entire net proceeds thereof are devoted to the uses aforesaid and for any person or persons to participate in and play such games of chance conducted under any such license.

b. The control commission may adopt regulations authorizing licensees to hold events known as:

"armchair races" at which wagers are placed on the outcome of previously-filmed horse races and wagerers do not know the results in advance, when the prize awarded consists of merchandise or raffle tickets only, and not cash; and

"casino nights" at which players use chips or script purchased from the licensee to wager in games of chance known as blackjack, under/over, beat-the-dealer, chuck-a-luck, craps, roulette, bingo or similar games approved by the commission, when the chips or script are redeemable for merchandise or raffle tickets only, and not for cash.

The regulations shall establish the frequency with which these events may be held, the rules of the games, the specific type and value of prizes which may be offered, the qualifications of the individuals conducting the games and other requirements which the commission may deem pertinent.

c. No license shall be required for the holding, operating or conducting of a raffle for a door prize of merchandise of the total retail value of $200.00 or less, or a higher amount as established by regulation of the control commission, for which no extra charge is made at an assemblage, if the proceeds of such assemblage are devoted to the uses described in this section.

d. The control commission shall adopt regulations permitting the conduct of raffles remotely using communication technology in a manner consistent the provisions of P.L.1954, c.5 (C.5:8-50 et seq.) and to the extent not inconsistent with the provisions of subparagraph A of paragraph 2 of Section 7 of Article IV of the New Jersey Constitution. Such technology shall comply with specifications prescribed by the commission and shall be approved by the commission prior to use. A licensee conducting a raffle pursuant to this subsection shall verify that the physical location of each participant, irrespective of the location of any server or intermediate routing of electronic data, is within a municipality in which the majority of voters voting therein voted in favor of the adoption of the provisions of P.L.1954, c.5 (C.5:8-50 et seq.) and in which such provisions are still in effect. For the purpose of conducting raffles pursuant to this subsection, the location of the active member or other person approved by the control commission to hold, operate, or conduct the game shall be deemed the licensed premises. This subsection shall not be applicable to raffles conducted pursuant to section 1 of P.L.2018, c.79 (C.5:8-51.6).

(cf: P.L.2015, c.80, s.1)

3. The rules and regulations established pursuant to this act, P.L. , c. (pending before the Legislature as this bill) shall be effective immediately upon filing with the Office of Administrative Law for a period not to exceed 18 months, and may, thereafter, be amended, adopted or readopted in accordance with the provisions of the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.).

4. This act shall take effect immediately.

STATEMENT

This bill permits the conduct of bingos and raffles remotely. The bill directs the Legalized Games of Chance Control Commission to adopt regulations permitting the conduct of raffles remotely using communication technology, to the extent its use is not inconsistent with the New Jersey Constitution. The control commission must approve the technology prior to use by an eligible organization. A licensee conducting a raffle remotely is required to verify that the physical location of each participant, irrespective of the location of any server or intermediate routing of electronic data, is within a municipality that has authorized the conduct of bingos and raffles. The bill deems the location of the person conducting the game to be the licensed premises. The bill is not applicable to raffles conducted at large sporting venues.

Under current law, eligible organizations include veterans organizations or associations, churches or religious congregations and organizations, charitable, educational and fraternal organizations, civic and service clubs, senior citizen associations and clubs, and volunteer fire companies, first aid, and rescue squads.