SENATE STATE GOVERNMENT COMMITTEE

STATEMENT TO

SENATE, No. 448

with committee amendments

STATE OF NEW JERSEY

DATED: FEBRUARY 22, 1996

      The Senate State Government Committee reports favorably and with committee amendments Senate, No. 448.

      This bill amends the "Raffles Licensing Law", P.L.1954, c.5, to place limits on the prizes awarded in certain games of chance and to establish restrictions on advertising games of chance in certain municipalities.

      Specifically, the bill provides that:

      1) the maximum prize that may be offered and awarded in a golf hole-in-one contest shall not exceed $1,000,000 and any prizes greater than $25,000 shall be offered and awarded only when the entire amount is insured by a company licensed to conduct business in this State and approved by the Legalized Games of Chance Control Commission;

      2) the prize in such a contest shall be paid as an annuity with a payout over a maximum of 20 years;

      3) no game of chance shall be advertised in any municipality in which the majority of voters voting therein have not voted in favor of the adoption of the provisions of the "Raffles Licensing Law" or in any municipality in which the majority of voters voting therein have voted in favor of rescinding the adoption of the provisions of that law; and

      4) the control commission shall promulgate regulations to govern the advertising of any game of chance occurring in a municipality in which the game of chance is held, operated or conducted under any license issued thereby.

      The regulations would prohibit: 1) any advertisement from containing any false, deceptive, misleading or fraudulent statement regarding the holding, operation or conduct of a game of chance; 2) any advertisement from causing undue or unfair competition between organizations registered with the control commission that are holding competing games of chance; and 3) the use, to an extent deemed excessive, of the proceeds derived from the conduct of any individual game of chance for advertising subsequent games of chance.

COMMITTEE AMENDMENTS

      The committee adopted amendments for the bill recommended by the Attorney General's office and the Legalized Games of Chance Control Commission that: 1) expand the range of prizes required to be insured from prizes greater than $500,000 but not exceeding $1,000,000 to include prizes greater than $25,000; 2) provide that a prize shall be paid as an annuity with a maximum payout period of 20 years rather than 40 years; and 3) provide that any ancillary prizes, in addition to having an aggregate retail value no greater than $500,000 in any calendar year, shall also be subject to regulations promulgated by the control commission concerning the limit on the value of prizes that shall be awarded in a raffle conducted by a drawing or for each spin of the wheel or other allotment by chance.