NEW JERSEY

I. Definition of Gambling

N.J. Stat. Ann. § 2C:37-1(b) defines gambling as “staking or risking something of value upon the outcome of a contest of chance or a future contingent event not under the actor’s control or influence, upon an agreement that he will receive something of value in the event of a certain outcome.”

N.J. Stat. Ann. § 2C:37-1(a) , fortunately provides the definition of a contest of chance. It is defined as “any contest, game, pool, gaming scheme or gaming device in which the outcome depends in a material degree upon an element of chance, notwithstanding that skill of the contestants or some other persons may also be a factor therein.” N.J. Stat. Ann. § 2C:37-1(a) .

In holding the game of backgammon was a contest of chance, the court in Boardwalk Regency Corp. v. Attorney General of State of N.J., 457 A.2D 847, 850 (N.J. Super. Ct. Law Div.) held that the chance components in that game, namely the rolling of dice, were material to the final result. The court further considered this act to be a future contingent event not under the actor’s control or influence. Id. While there was much evidence about the skill components present in the game, the court based its decision that the chance-based activity of rolling dice was a material element of the game after examining a Sports Illustrated magazine article about the world champion of backgammon. Id. at 851. That article described the unbelievable attributes that made this champion so great at his craft, but also detailed how the roll of the dice caused him to lose a crucial match against a lesser opponent. Id. From that, the court concluded that the chance elements of the game played a material part in its outcome. Id. at 852.

The New Jersey Code and case law further define what “value” means as well as what constitutes a “free entry.”

Something of value

To be considered gambling, a scheme must involve the players giving up something of value for a chance to win something of value. N.J. Stat. Ann. § 2C:37-1(b) . Free games given by a pinball machine, deemed a game of chance by New Jersey courts because the ball may fall in a place where the player is not able to use the “flippers” to extend the game, were held to be something of value by the court in State v. Paul, 128 A.2d 737, 743 (Bergen County Ct. Law Div. 1957).

Free Entry

In State v. Berger, 17 A.2d 167 (N.J. 1941), the court held that a bingo-like game called “Payme” run by a movie theatre constituted gambling. Those that paid the thirty cents admission fee to enter the theatre to see a movie could play this game. Id. Also, anyone wishing to play the game without paying an admission fee could do so, but had to remain in the lobby. Id. at 168. The winners of “Payme” games were given vouchers for various amounts that could be redeemed for merchandise. Id. The court held that the theatre operator did gain something of value in the form of extra attendance on the nights when this game was operated. Id. at 169. Also, the court noted that letting players play for free in the lobby was merely a diversionary tactic employed by the theatre that would not work, saying essentially that trying to add this component would not make an illegal scheme legal. Id.

However, in 1980 N.J. Op. Att’y Gen. 118, the attorney general held that a backgammon tournament where no admission fee was charged to anyone would not be in contravention of the criminal gambling statutes.

II. Definition of Bookmaking

N.J. Stat. Ann. § 2C:37-1(g) defines bookmaking as “advancing gambling activity by unlawfully accepting bets from members of the public upon the outcome of future contingent events as a business.” Bookmaking is punishable seemingly under N.J. Stat. Ann. § 2C:37-2 and N.J. Stat. Ann. § 2C:37-4 .

These future contingent events usually involve some form of horse racing and other kinds of sporting events. See U.S. ex rel. Hart v. Davenport, 478 F.2d 203 (3rd Cir. 1973). However, New Jersey courts have clarified that merely making a bet for another at a lawful race meeting where the person placing the bet derives no benefit from doing so is not considered bookmaking. State v. Andreano, 285 A.2d 229, 231 (N.J. Super. Ct. App. Div. 1971).

III. Gambling Devices

N.J. Stat. Ann. § 2C:37-1(e) defines a gambling device as “any device, machine, paraphernalia, or equipment which is used or usable in the playing phases of any gambling activity, whether such activity consists of gambling between persons or gambling by a person involving the playing of a machine. Notwithstanding the foregoing, lottery, policy slips, and other items used in the playing phases of lottery and policy schemes are not gambling devices.” It would seem with that broad definition that slot machines that distribute something of value would be included in this definition of a gambling device. See Pure Mint Co. v. Labarre, 125 A. 105 (N.J. Ch. 1924). However, N.J. Stat. Ann. § 2C:37-7 provides an exemption for slot machines manufactured before 1941 which are not used for gambling purposes, and an exemption those that keep only one gambling device other than a slot machine in their house for social purposes. Also, it seems that pinball machines would fall within this definition if these machines awarded something of value, such as free games. See State v. Ricciardi, 114 A.2d 257, 258-59 (N.J. 1955).

The court in State v. De Louisa, 215 A.2d 794, 797 (Union County Ct. Law Div. 1965), held that faro, roulette, and dice are examples of a gambling device. Also, the court in Becker v. Farley, 59 A.2d 450, 451 (N.J. 1948), held that money used in a bookmaking business could be confiscated as a gambling device.

IV. Bucket-Shops

New Jersey provides no statute that specifically deals with bucket shops. However, understanding the common definition of a bucket shop, this practice would probably be criminal in violation of N.J. Stat. Ann. § 2C:37-2(1) , which prohibits individuals from accepting or receiving “money or other property, pursuant to an agreement of understanding with any person whereby he participates or will participate in the proceeds of gambling activity.” Also, with the broad definition prohibiting bookmaking activities, conducting a bucket shop could be construed to fit within N.J. Stat. Ann. § 2C:37-2(b)(1) .

V. Express prohibitions on games of skill

1. Poker/Card Games

Although there is not a New Jersey statute or case that specifically describes poker as a game of chance, N.J. Stat. Ann. § 5:8-113 , in clarifying the types of games that can be licensed by the Legalized Games of Chance Commission, explains that this section does not extend to anyone playing cards for something of value. With that prohibition, it seems that New Jersey most likely regards the deal of the cards as a material element of any card game, and because the deal of the cards is chance-based and out of the player’s control, it is likely that New Jersey would define any card game where something of value is bet in hopes of receiving something of value as illegal gambling.

2. Dice Games

Although there is not a New Jersey statute or case that specifically describes dice games as a game of chance, N.J. Stat. Ann. § 5:8-113 , in clarifying the types of games that can be licensed by the Legalized Games of Chance Commission, explains that this section does not extend to anyone playing dice for something of value.

Explained in Boardwalk Regency Corp. v. Attorney General of State of N.J., 457 A.2D 847, 850 (N.J. Super. Ct. Law Div.), the court stated that because the throwing of dice was a chance-based activity out of the player’s control and also because it formed a material element of the game in question, that the game known as backgammon should be considered an illegal contest of chance if something of value is bet on it in hopes to win something of value. Therefore, it seems that most games involving the throwing of dice would be considered a contest of chance because backgammon is a game that involves a high degree of skill. Because most dice games probably don’t have the immense skill components that backgammon does, many games that involve the use of dice would be deemed to be in violation of New Jersey’s gambling laws if something of money was risked in hopes of winning something of value.

3. Billiards

Although there is not a New Jersey statute or case that specifically describes billiards as a game of chance, N.J. Stat. Ann. § 5:8-113 , in clarifying the types of games that can be licensed by the Legalized Games of Chance Commission, explains that this section does not extend to anyone playing billiards for something of value.

4. Bowling

Although there is not a New Jersey statute or case that specifically describes bowling as a game of chance, N.J. Stat. Ann. § 5:8-113 , in clarifying the types of games that can be licensed by the Legalized Games of Chance Commission, explains that this section does not extend to anyone playing bowling for something of value.

5. Darts

The court in Carll & Ramagosa, Inc. v. Ash, 129 A.2d 433 (N.J. 1957), declared that keeping a place where individuals could participate in a dart game where the players would pay money to get three chances to bust a balloon to win a prize was illegal gambling in contravention of N.J. Stat. Ann. § 2A:40-1 , because there was betting on a contingent event, namely the dart game.

VI. Exemptions

1. Social gambling

N.J. Stat. Ann. § 2C:37-7 prohibits gambling devices, but provides an exemption for a gambling device, other than a slot machine, that is used for strictly social purposes within a home.

Also, senior citizen associations or clubs that wish to conduct bingo or raffles solely for amusement purposes, meaning that no bet is required to enter and only nominal prizes are awarded, for its members can obtain a special free license for such practices for a period of two years. N.J. Stat. Ann. § 5:8-25.1 N.J. Stat. Ann. & § 5:8-51.1.

2. Charitable Gaming

a. Bingo

The governing body of any municipality can license churches, charitable, educational and fraternal organizations, civic and service clubs, senior citizen associations and clubs, official recognized volunteer fire companies, and officially recognized volunteer first aid or rescue squads to conduct the game of bingo if the entire proceeds are applied to the purpose for which that organization or club is organized. N.J. Stat. Ann. § 5:8-25. However, the voters of that particular municipality must approve the operation of bingo by these organizations. N.J. Stat. Ann. § 5:8-43. Each of the eligible organizations that submit an application to conduct bingo games is entitled to a hearing with the governing body of their municipality to discuss the merits of them receiving such a license. N.J. Stat. Ann. § 5:8-28. If granted, these licenses are effective for one year. N.J. Stat. Ann. § 5:8-27. The Legalized Games of Chance Control Commission is in charge of overseeing all of the bingo activities conducted in the state. N.J. Stat. Ann. § 5:8-6.

The maximum prize that can be awarded for a single game of bingo is one thousand dollars. N.J. Stat. Ann. § 5:8-27. The total amount of prizes that can be awarded in one night is three thousand dollars. N.J. Stat. Ann. § 5:8-27. These prize limitations do not apply to games where the prizes awarded are configured from the percentage of the gross receipts from the sale of cards used to participate in the game. N.J. Stat. Ann. § 5:8-27.

These bingo games cannot be held on Sundays, unless it is provided for expressly in the license. N.J. Stat. Ann. § 5:8-31. Also, no under the age of eighteen can participate in these bingo games. N.J. Stat. Ann. § 5:8-32. Licensees can only hold these games six days in a calendar month, and the location of these games cannot be in a room or outdoor area where alcoholic beverages are served. N.J. Stat. Ann. § 5:8-33. Also, those that conduct bingo games are not allowed to advertise the event. N.J. Stat. Ann. § 5:8-36.

b. Raffles

The same organizations that can hold and conduct bingo games are also allowed to operate raffles. N.J. Stat. Ann. § 5:8-51. However, the governing body of the municipality in which they are located must license these organizations. N.J. Stat. Ann. § 5:8-51. Before applying for such a license, that municipality’s voters must have already approved the conducting of raffles by these organizations in a general election. N.J. Stat. Ann. § 5:8-70. The Legalized Games of Chance Control Commission oversees all of the raffle activity in the state. N.J. Stat. Ann. § 5:8-6.

Those organizations applying for a license are entitled to a hearing regarding their merits of their application. N.J. Stat. Ann. § 5:8-55. If a license is granted, it is effective up to one year. N.J. Stat. Ann. § 5:8-54.

These raffles are not allowed to be conducted on Sundays unless the license specifically provides for it. N.J. Stat. Ann. § 5:8-58. Individuals under the age of 18 cannot participate in a raffle, unless the prizes awarded consists only of merchandise. N.J. Stat. Ann. § 5:8-59.

No organization can award prizes that exceed five hundred thousand dollars in any calendar year. N.J. Stat. Ann. § 5:8-62. However, this prize limit does not apply to raffles where all tickets are sold only to persons present, the winners are determined, and the prizes are distributed on the same occasion. N.J. Stat. Ann. § 5:8-62. There is also an exception for raffles where the prizes are wholly donated. N.J. Stat. Ann. § 5:8-62. If the raffle is in the form of golf hole-in-one contest, the maximum prize awarded cannot exceed one million dollars. N.J. Stat. Ann. § 5:8-62 (Supp. 2006). Any prize over twenty-five thousand dollars must be insured by a company licensed to conduct business in New Jersey. N.J. Stat. Ann. § 5:8-62 (Supp. 2006).

These organizations are not allowed to advertise for these raffles. N.J. Stat. Ann. § 5:8-63.

c. Amusement Games

The governing body of a municipality can license the owner and operator of any amusement games or games, whether of skill or chance, to hold and operate such amusement games. N.J. Stat. Ann. § 5:8-101. These owners or operators must hold these games at a recognized amusement park or at a seashore or other resort that is commonly deemed an amusement or entertainment area. N.J. Stat. Ann. § 5:8-101.

Amusement games are defined as games where the outcome is not controlled by the operator, and the paying money to enter the game, the playing of the game, and the award of prizes is a continuous sequence. N.J. Stat. Ann. § 5:8-101. However, before a municipality can grant these licenses, the voters of that municipality must have approved the operation of such games. N.J. Stat. Ann. § 5:8-115. The Amusement Games Control Commissioner oversees all the amusement game activity conducted in New Jersey. N.J. Stat. Ann. § 5:8-79.1.

The annual fee for such a license is two hundred fifty dollars, with an additional ten dollars charged per machine for each machine over fifty. N.J. Stat. Ann. § 5:8-102.

Each applicant is entitled to a hearing before the governing board of the municipality. N.J. Stat. Ann. § 5:8-104.

3. Chucky Cheese Exemption

New Jersey allows amusement game licensees to offer prizes to players that win one of their amusement games. N.J. Stat. Ann. § 5:8-107. However, the prizes awarded can only consist of merchandise and the retail value of these prizes is to be determined by the Amusement Games Control Commissioner. N.J. Stat. Ann. § 5:8-107.

New Jersey provides for the licensing of arcades, defined as a place where a player that pays a fee is allowed to play a machine or device for a prize, or a ticket or token redeemable for a prize. N.J. Stat. Ann. § 5:8-102.

4. Commercial Gaming

New Jersey has in place the New Jersey Casino Control Commission that is in charge of overseeing the commercial gambling activity in the state. N.J. Stat. Ann. § 5:12-50 & N.J. Stat. Ann. § 5:12-63. This gambling activity is allowed in Atlantic City in major hotel convention complexes. N.J. Stat. Ann. § 5:12-1(4).

Among the authorized games that these establishments can permit is slot machines. N.J. Stat. Ann. § 5:12-5.

5. State Lottery

New Jersey has a State Lottery Commission that is in charge of overseeing the state-authorized and operated lottery. N.J. Stat. Ann. § 5:9-4. This commission makes decisions regarding the price of entering the lottery, the number and sizes of the prizes awarded, the frequency of the drawings, and the licensing of agents to sell lottery tickets or shares. N.J. Stat. Ann. § 5:9-7. However, no one can be in business solely to sell lottery tickets. N.J. Stat. Ann. § 5:9-11. When issuing a license to sell lottery tickets, the commission considers a number of factors including the person’s financial responsibility, the accessibility of his place of business, the number of existing licensees, and the expected number of sales. N.J. Stat. Ann. § 5:9-11.

An interesting feature of the State Lottery in New Jersey is that if a person owes child support or was a former receipt of Aid to Families with Dependent Children or Work First New Jersey, food stamps benefits, or home energy assistance benefits, who has incurred an overpayment which has not been overpaid, their lottery prize can be reduced by the amount which is owing on these debts. N.J. Stat. Ann. § 5:9-13.5.

If a person under the age of eighteen wins a prize under five thousand dollars in the state lottery, this amount must be given to an adult member of the minor’s family or a guardian of the minor in the form of a check made out to the minor. N.J. Stat. Ann. § 5:9-20. If the prize is over five thousand dollars, the amount is deposited in the bank account of an adult member of the minor’s family or a guardian of the minor. N.J. Stat. Ann. § 5:9-20.

The conducting of a lottery through a video machine or device is not allowed in New Jersey. N.J. Stat. Ann. § 5:9-7.1.

5. Pari-Mutuel Betting

New Jersey has a Racing Commission that is charged with overseeing the horse and harness racing in the state. N.J. Stat. Ann. § 5:5-22. This commission is in charge of granting permits to potential owners and operators of horse tracks. N.J. Stat. Ann. § 5:5-47. A potential permit holder must give the commission a ten thousand dollar deposit, which will be returned if the permit is refused. N.J. Stat. Ann. § 5:5-39. However, even before a permit can be issued, the voters of the county in which this racing activity is proposed to take place must have voted for the allowance of such racing. N.J. Stat. Ann. § 5:5-39.1.

Another one of the commission’s duties is licensing all of the pari-mutuel employees and all horse owners, riders, agents, trainers, starters, timers, judges, grooms, drivers and others involved with the horse racing activity. N.J. Stat. Ann. § 5:5-33. N.J. Stat. Ann. § 5:5-36 provides that eighty-five percent of persons employed by a permit holder must be New Jersey residents who have actually resided in the state for at least two years. However, this percentage does not apply to jockeys, drivers, owners, trainers, clocker exercise boys, and governing and managing officials and heads of departments of the track. N.J. Stat. Ann. § 5:5-36.

New Jersey allows for two types of horse racing. These types are running races, which is a horse race where the horses are mounted by a jockey, and harness racing, which is racing where the horses are harnessed to a carriage, but not mounted by a jockey. N.J. Stat. Ann. § 5:5-22(b-c). While the commission is in charge of determining the minimum amount of purses available for a harness race, it cannot set the minimum purse for a running race below one thousand dollars. N.J. Stat. Ann. § 5:5-32. These races can be run between noon and one o’clock the following day on every day of the week, except that an applicant who wants to conduct horse race meetings on Sundays cannot hold racing on any other day of the week. N.J. Stat. Ann. § 5:5-84.

The commission cannot authorize over 75 days of running racing and 100 days of harness racing for each permit holder. However, if any of the permit holders is to reject any or all of the days in which they are entitled, the commission can allot these remaining days among the remaining permit holders. N.J. Stat. Ann. § 5:5-44(a). Also, the commission is allowed to allot equally among the four running racing permit holders an additional one hundred racing days. N.J. Stat. Ann. § 5:5-44(b). The commission may also allot 200 additional days among the harness racing permit holders in any manner it sees fit. N.J. Stat. Ann. § 5:5-44(b). These permit holders can also obtain permission from the commission, to hold three racing days a year in addition to the days already granted, if the racing days are run as “Charity Racing Days for the Developmentally Disabled.” N.J. Stat. Ann. § 5:5-44.2. A similar statute provides for an additional racing day known as a “Charity Racing Day for Backstretch Benevolency Programs.” N.J. Stat. Ann. § 5:5-44.8. This limit on racing days also does not include days where a permit holder allows a fair, agricultural or livestock exhibition or hunt race meet to conduct harness racing or trotting on the permit holder’s track if no form of betting, pool selling, or gambling on the results of the race is allowed. N.J. Stat. Ann. § 5:5-74. Also, fairs or events organized by an agricultural society can permit harness racing or trotting for a prize when the pari-mutuel system of wagering and any other form of wagering is not allowed. N.J. Stat. Ann. § 5:5-72.

Permit holders are allowed to provide a pari-mutuel system of wagering within their race meeting grounds or enclosure on horse races being held at the actual track itself or on simulcast horse races held within or outside the state. N.J. Stat. Ann. § 5:5-62. This pari-mutuel system can be run between eight a.m. and one a.m. the following day on Mondays thru Saturday, and between noon and one a.m. the following day on Sundays. N.J. Stat. Ann. § 5:5-85.

New Jersey allows permit holders to simulcast horse races from within or outside the state to their facility. However, before this simulcast racing can be conducted, the track must be issued an intertrack wagering license from the commission specifying the dates, times, and conditions of such simulcasting. N.J. Stat. Ann. § 5:5-112.

VII. Internet Prohibition

There is no statute explicitly prohibiting Internet Gambling in the state of New Jersey.

1. Gaming Crimes

Promoting gambling

New Jersey penalizes those who promote gambling, which is defined to mean anyone who knowingly accepts or receives money used to participate in gambling activity or anyone who creates or establishes any part of a gambling game or that induces or entices anyone to play the game. N.J. Stat. Ann. § 2C:37-2(a) . Encompassed within this definition is anyone who is engaged in bookmaking where he receives more than five bets totaling over one thousand dollars or anyone who receives money in connection with a lottery scheme from anyone other than a player or receives more than one hundred dollars a day played in such a lottery scheme. N.J. Stat. Ann. § 2C:37-2(b) . Those individuals are guilty of a crime in the third degree and can be fined up to thirty-five thousand dollars as well as any punishment authorized by N.J. Stat. Ann. § 2C:43-2b .

That section provides:

b. Except as provided in subsection a. of this section and subject to the applicable provisions of the code, the court may suspend the imposition of sentence on a person who has been convicted of an offense, or may sentence him as follows:

(1) To pay a fine or make restitution authorized by N.J.S.2C:43-3 or P.L.1997, c. 253 (C.2C:43-3.4 et al.); or
(2) Except as provided in subsection g. of this section, to be placed on probation and, in the case of a person convicted of a crime, to imprisonment for a term fixed by the court not exceeding 364 days to be served as a condition of probation, or in the case of a person convicted of a disorderly persons offense, to imprisonment for a term fixed by the court not exceeding 90 days to be served as a condition of probation; or
(3) To imprisonment for a term authorized by sections 2C:11-3, 2C:43-5, 2C:43-6, 2C:43-7, and 2C:43-8 or 2C:44-5; or
(4) To pay a fine, make restitution and probation, or fine, restitution and imprisonment; or
(5) To release under supervision in the community or to require the performance of community-related service; or
(6) To a halfway house or other residential facility in the community, including agencies which are not operated by the Department of Human Services; or
(7) To imprisonment at night or on weekends with liberty to work or to participate in training or educational programs.
N.J. Stat. Ann. § 2C:43-2b . Those engaged in bookmaking that receive three or more bets in a two week period are guilty of a crime in the fourth degree and can be fined up to twenty-five thousand dollars and can receive any other punishment authorized by N.J. Stat. Ann. § 2C:43-2b . N.J. Stat. Ann. § 2C:37-2(b) . Otherwise, this offense is a disorderly persons offense and an individual found guilty of it can be fined up to ten thousand dollars and can be punished by any other method provided by N.J. Stat. Ann. § 2C:43-2b . N.J. Stat. Ann. § 2C:37-2(b) . However, this section does not apply to those that are just players of the games. N.J. Stat. Ann. § 2C:37-2(c) . To be charged, one must be involved somehow with the actual operation, setting up, or establishment of the illegal gambling. N.J. Stat. Ann. § 2C:37-2 .

Possession of gambling records

A person is guilty of possessing gambling records when he knowingly possesses a writing, paper, instrument, or article that is commonly used in the promotion of a bookmaking, lottery, or policy scheme. N.J. Stat. Ann. § 2C:37-3(a) . If the paper represents more than five bets totaling over one thousand dollars in a bookmaking scheme, or more than one hundred plays or chances of a lottery or policy scheme, the person is guilty of a crime in the third degree and can be fined up to thirty-five thousand dollars and can be imposed with any other punishment provided for by N.J. Stat. Ann. § 2C:43-2b . N.J. Stat. Ann. § 2C:37-3(c) . Otherwise this crime is a disorderly persons offense and the person can be fined up to twenty thousand dollars and punished by any method under N.J. Stat. Ann. § 2C:43-2b . If the defendant can prove by clear and convincing evidence that the writing contained ten or less bets made by the defendant himself or if the defendant can show by clear and convincing evidence that the writing was not intended to be used in a bookmaking, lottery, or policy scheme, they will not be charged under this section. N.J. Stat. Ann. § 2C:37-3(b) .

Maintenance of a gambling resort

A person that knowingly permits a place under his control that is open to the general public to be used for gambling activity or that knowingly permits a place, whether open to the general public or not, under his control to be used for gambling purposes and shares in the proceeds of such activity, is guilty of a crime in the fourth degree, which is punishable with a fine up to twenty-five thousand dollars and any other punishment authorized under N.J. Stat. Ann. § 2C:43-2b . N.J. Stat. Ann. § 2C:37-4 . This punishment only applies to those that keep or maintain the resort, and not those who frequent it.

Shipboard gambling

Anyone that knowingly causes, engages in, or permits any of the gambling activity described in the three previous paragraphs to be conducted on a vessel that leaves from this state and comes back, is guilty of a crime of the same degree as the most serious crime that was done on this vessel. N.J. Stat. Ann. § 2C:37-4.1 . This provision does not apply to gambling activity on vessels that are “United States-flagged or foreign-flagged vessels during travel from a foreign nation or another state or possession of the United States up to the point of first entry into New Jersey waters or during travel to a foreign nation or another state or possession of the United States from the point of departure from New Jersey waters.” N.J. Stat. Ann. § 2C:37-4.1 .

Possession of a gambling device

Anyone that possesses a gambling device or slot machine with knowledge of its later use in the advancement of unlawful gambling activity and that tries to dispose or move the device in some way is guilty of a disorderly persons offense. N.J. Stat. Ann. § 2C:37-7 . However, this section does grant an exemption to individuals that have a gambling device other than a slot machine for social use within their home or antique slot machines, defined in this provision as slot machines manufactured before 1941 that are not used for gambling purposes. N.J. Stat. Ann. § 2C:37-7 .

2. State Lottery Crimes

Sale above fixed price

Anyone that sells a state lottery ticket for a price greater than that fixed by the commission, or anyone that is not a licensed lottery agent that sells a ticket is guilty of a misdemeanor. N.J. Stat. Ann. § 5:9-14. However, a person can still give away lottery tickets as a gift without fear of violating this section. N.J. Stat. Ann. § 5:9-14.

False or fraudulently made state lottery ticket

Anyone who falsely or fraudulently makes, forges, or alters a state lottery ticket and who tries to pass them off as true is guilty of a misdemeanor. N.J. Stat. Ann. § 5:9-14.1. Sales to persons under eighteen years; gifts

A licensee that sells or offers to sell state lottery tickets to individuals under eighteen is charged as a disorderly person. N.J. Stat. Ann. § 5:9-15. However, this section doesn’t prohibit individuals from giving individuals under eighteen state lottery tickets as a gift. N.J. Stat. Ann. § 5:9-15.

3. Pari-mutuel crimes

Holding an unlicensed horse race meeting

Anyone that conducts or assists in the operation of a horse race meeting that is not authorized by the state is guilty of a misdemeanor and upon conviction can be fined between five thousand and ten thousand dollars and can be imprisoned for up to a year. N.J. Stat. Ann. § 5:5-70. Each day of unauthorized racing is considered a separate offense. N.J. Stat. Ann. § 5:5-70.

Illegal influence

Anyone that tries to interfere in a horse race in an attempt to alter its results is guilty of a misdemeanor and upon conviction can be fined between one thousand and five thousand dollars and can be imprisoned between one and ten years. N.J. Stat. Ann. § 5:5-71. Examples of this interfering includes anyone that tries to give the horse some sort of narcotic or stimulant, a person that owns the horse that knows of this drug injection, a person that tries to convince the owner, jockey, groom, or any other person interested in the horse to not win the race, etc. N.J. Stat. Ann. § 5:5-71.

IX. Commercial Gaming

1. Games Permitted

In defining what an authorized gambling game is, New Jersey lists the games of roulette, baccarat, blackjack, craps, big six wheel, slot machines, minibaccarrat, red dog, pai gow, and sic bo, as well as variations of these games that are approved by the commission. N.J. Stat. Ann. § 5:12-5. It seems however that the commission can authorize any other game provided that it has went through rigorous testing by the commission. N.J. Stat. Ann. § 5:12-5. This section also authorizes the casino to conduct a tournament of one of the above listed games with commission approval.

Also, a casino can conduct horse racing simulcasting with any licensed in-state horse racing track or any licensed out of state horse racing track. N.J. Stat. Ann. § 5:12-193. Those casinos that wish to do this must set up a simulcasting facility as part of the casino hotel, but this room cannot be part of a room where casino gambling is being conducted. N.J. Stat. Ann. § 5:12-194. Wagering on these races is only allowed within the simulcasting facility. N.J. Stat. Ann. § 5:12-194(a)(2). A in-state race track permit holder that wishes to simulcast their races to a casino must request the approval of the New Jersey Racing Commission in its annual application for horse race meeting dates. N.J. Stat. Ann. § 5:12-195. Race track permit holders out of state must be approved by the New Jersey Racing Commission and licensed by the Casino Control Commission as a casino service industry. N.J. Stat. Ann. § 5:12-199.

2. Limits

N.J. Stat. Ann. § 5:12-100(e) states that all “wagers and pay-offs of winning wagers shall be made according to rules promulgated by the commission, which shall establish such limitations as may be necessary to assure the vitality of casino operations and fair odds to patrons.” That section goes on to state that each slot machine should have a minimum payout of 83%. N.J. Stat. Ann. § 5:12-100(e).

3. Taxes and fees

The New Jersey Casino Control Commission is allowed to set a fee for the issuance of a casino license, however the figure cannot be less than two hundred thousand dollars. N.J. Stat. Ann. § 5:12-139(a). The renewal fee must be one hundred thousand dollars or more for one year and two hundred thousand dollars or more for a four-year casino license. N.J. Stat. Ann. § 5:12-139. With each application, the potential licensee needs to prove a nonrefundable deposit of at least one hundred thousand dollars that will be applied to the license fee if the application is approved. N.J. Stat. Ann. § 5:12-139(c).

A five hundred dollar annual license fee for each slot machine in the casino is required under N.J. Stat. Ann. § 5:12-140.

Each casino is imposed with a annual tax on its gross revenues in the amount of 8% of such gross revenues. N.J. Stat. Ann. § 5:12-144(a). Gross revenue is defined in N.J. Stat. Ann. § 5:12-24 as:

The total of all sums, including checks received by a casino licensee pursuant to section 101 of this act, whether collected or not, actually received by a casino licensee from gaming operations, less only the total of all sums paid out as winnings to patrons; provided, however, that the cash equivalent value of any merchandise or thing of value included in a jackpot or payout shall not be included in the total of all sums paid out as winnings to patrons for purposes of determining gross revenue. “Gross Revenue” shall not include any amount received by a casino from casino simulcasting pursuant to the

“Casino Simulcasting Act,” P.L.1992, c. 19 (C.5:12-191 et al.).Also, there is an annual investment alternative tax on the gross revenues of a casino in the amount of 2.5% of those gross revenues for any calendar year beginning after Dec. 31^st, 1983. N.J. Stat. Ann. § 5:12-144.1(a). However, no tax can be imposed on a licensee during the first twelve months of its operation if they begin operation after January 1, 1984. N.J. Stat. Ann. § 5:12-144.1(a). Each of these licensees must pay this tax for fifty years after the obligation for the tax is first incurred by that licensee. N.J. Stat. Ann. § 5:12-144.1(k).

Any casino that is located in a blighted area or endangered by blight, may for up to twenty five years enter into a written agreement with the Department of Treasury to instead of paying full local real property tax payments, pay either:

1. An annual amount equal to two percent of the cost of the real property investment. This term means the actual cost or fair market value of direct labor and all materials used in the construction, maintenance, or rehabilitation of all facilities associated with the casino project. N.J. Stat. Ann. § 5:12-146(1).

2. “An amount equivalent to the difference between an amount that would have been payable as property taxes under the full local property tax rate and the amount calculated pursuant to subsection a.(1) of this section, which shall be payable from such profits, if any, as hereinafter described in section 147, as shall remain after deducting therefrom interest and principal paid on mortgage loans applicable to the real property held for use as a licensed casino hotel. The total payments provided by this section shall not exceed the full local property taxes normally payable for the year.” N.J. Stat. Ann. § 5:12-146(2).

4. Operational requirements, hours, advertising, entertainment, exclusion, gambling age, mandatory exclusions, discretionary exclusions, voluntary exclusions by problem gamblers

a. Operational requirements

As provided in N.J. Stat. Ann. § 5:12-82(d) , a corporation is not eligible to apply for a casino license unless:

(1) The corporation shall be incorporated in the State of New Jersey, although such corporation may be a wholly or partially owned subsidiary of a corporation which is organized pursuant to the laws of another state of the United States or of a foreign country;
(2) The corporation shall maintain an office of the corporation in the casino hotel licensed or to be licensed;
(3) The corporation shall comply with all the requirements of the laws of the State of New Jersey pertaining to corporations;
(4) The corporation shall maintain a ledger in the principal office of the corporation in New Jersey which shall at all times reflect the current ownership of every class of security issued by the corporation and shall be available for inspection by the commission or the division and authorized agents of the commission and the division at all reasonable times without notice;
(5) The corporation shall maintain all operating accounts required by the commission in a bank in New Jersey, except that a casino licensee may establish deposit-only accounts in any jurisdiction in order to obtain payment of any check described in section 101 of P.L.1977, c. 110 (C.5:12-101);
(6) The corporation shall include among the purposes stated in its certificate of incorporation the conduct of casino gaming and provide that the certificate of incorporation includes all provisions required by this act;
(7) The corporation, if it is not a publicly traded corporation, shall file with the commission such adopted corporate charter provisions as may be necessary to establish the right of prior approval by the commission with regard to transfers of securities, shares, and other interests in the applicant corporation; and, if it is a publicly traded corporation, provide in its corporate charter that any securities of such corporation are held subject to the condition that if a holder thereof is found to be disqualified by the commission pursuant to the provisions of this act, such holder shall dispose of his interest in the corporation; provided, however, that, notwithstanding the provisions of N.J.S.14A:7-12 and N.J.S.12A:8-101 et seq., nothing herein shall be deemed to require that any security of such corporation bear any legend to this effect;
(8) The corporation, if it is not a publicly traded corporation, shall establish to the satisfaction of the commission that appropriate charter provisions create the absolute right of such non-publicly traded corporations and companies to repurchase at the market price or the purchase price, whichever is the lesser, any security, share or other interest in the corporation in the event that the commission disapproves a transfer in accordance with the provisions of this act;
(9) Any publicly traded holding, intermediary, or subsidiary company of the corporation, whether the corporation is publicly traded or not, shall contain in its corporate charter the same provisions required under paragraph (7) for a publicly traded corporation to be eligible to apply for a casino license; and
(10) Any non-publicly traded holding, intermediary or subsidiary company of the corporation, whether the corporation is publicly traded or not, shall establish to the satisfaction of the commission that its charter provisions are the same as those required under paragraphs (7) and (8) for a non-publicly traded corporation to be eligible to apply for a casino license.

Also, only the following individuals are eligible to hold a casino license:

(1) Any person who either owns an approved casino hotel or owns or has a contract to purchase or construct a casino hotel which in the judgment of the commission can become an approved casino hotel within 30 months or within such additional time period as the commission may, upon a showing of good cause therefore, establish;
(2) Any person who, whether as lessor or lessee, either leases an approved casino hotel or leases or has an agreement to lease a casino hotel which in the judgment of the commission can become an approved casino hotel within 30 months or within such additional time period as the commission may, upon a showing of good cause therefore, establish;
(3) Any person who has a written agreement with a casino licensee or with an eligible applicant for a casino license for the complete management of a casino and, if applicable, any authorized games in a casino simulcasting facility; and
(4) Any other person who has control over either an approved casino hotel or the land thereunder or the operation of a casino.

N.J. Stat. Ann. § 5:8-82(b)(1).

Each of these casino hotels must include in their facilities:

(1) A closed circuit television system according to specifications approved by the commission, with access on the licensed premises to the system or its signal provided to the commission or the division, in accordance with regulations pertaining thereto;
(2) One or more rooms or locations approved by the commission as casino space; and
(3) Design specifications that insure that visibility in a casino or in the simulcasting facility is not obstructed in any way that might interfere with the ability of the commission or the division to supervise casino or simulcasting facility operations.

N.J. Stat. Ann. § 5:12-98(b). Once approved, these casino licensees must make sure that their key employees (defined in N.J. Stat. Ann. § 5:12-9 as anyone employed by a licensed casino or simulcasting facility in a supervisory capacity or empowered to make decisions regarding the regulation of operations of the casino or simulcasting facility) obtain a valid casino key employee license from the commission. N.J. Stat. Ann. § 5:12-89(a). Any other casino employee besides casino service employees must obtain a valid casino employee license before beginning work. N.J. Stat. Ann. § 5:12-90(a). Casino service employees, defined in N.J. Stat. Ann. § 5:12-11.1 , must register with the commission before beginning work. N.J. Stat. Ann. § 5:12-91(a).

Besides the actual employees of a casino, anyone wishing to offer goods or services that relate to casino or gaming activity to a New Jersey casino must be licensed before conducting business with these casino hotels. N.J. Stat. Ann. § 5:12-92(a)(1) provides that casino service industries like suppliers of alcoholic beverages, food and non-alcoholic beverages, garbage handlers, vending machine providers, etc. must also be licensed in accordance with the rules of the New Jersey Casino Control Commission before beginning their relationship with a licensed casino in the state.

N.J. Stat. Ann. § 5:12-92(c).

b. Hours

Each casino licensed under this act is permitted to operate twenty-four hours a day every day of the week. N.J. Stat. Ann. § 5:12-97(a).

c. Advertising

According to the Senate Judiciary Committee Statement, No. 652-L.1992, c.9, all forms of gaming-related advertising by casinos are required to include certain phrases that signal or offer help to those with a compulsive gambling program. These advertisements must also provide the 800-number for the compulsive gambling program in New Jersey.

N.J. Stat. Ann. § 5:12-76.1 (Supp. 2006) provides for a public awareness campaign about the issues surrounding Internet gambling. These ads are to run in both print and electronic form, as well be included on the commission’s website. N.J. Stat. Ann. § 5:12-76.1 (Supp. 2006).

d. Entertainment

As already established, licensed casinos are only available in approved hotels, so lodging is an obvious entertainment attraction.

Also, casinos are allowed to serve alcoholic beverages within the casino provided that the New Jersey Casino Control Commission licenses them. N.J. Stat. Ann. § 5:12-103(a).

e. Mandatory Exclusions

The New Jersey Casino Control Commission must provide a list of excluded or ejected persons from any licensed casino establishment. N.J. Stat. Ann. § 5:12-71(a). In making this list, the commission shall include those individuals who:

1. Are career or professional offenders as defined by the regulations of the commission.

2. Have been convicted of a criminal offense in the United States that is punishable by more than six months in prison, or any crime involving moral turpitude.

3. would deter the purposes of the commercial gambling scene in New Jersey, as determined by the commission.

N.J. Stat. Ann. § 5:12-71(a). These individuals must be given notice of their placement on the list by personal service, certified mail to their last known address, or by publication daily for one week in a newspaper of general circulation in Atlantic City. N.J. Stat. Ann. § 5:12-71(e). Within thirty days after this service, the excluded individual can demand a hearing where the division of gaming enforcement has to prove by a preponderance of the evidence that this particular individual meets the criteria for an excluded person.

N.J. Stat. Ann. § 5:12-71(f).

f. Discretionary exclusions

A casino licensee may exclude from its casino hotel any person who has been convicted of a crime, disorderly person offense, or petty disorderly person offense committed at any casino hotel. N.J. Stat. Ann. § 5:12-71.1. Also, the casino can also exclude any person from its hotel that disrupts the operation of the premises, threatens the security of the location or its occupants, or is deemed disorderly or intoxicated. N.J. Stat. Ann. § 5:12-71.1.

g. Voluntary exclusions by problem gamblers

Any person can request to be placed on the list of self-excluded persons by showing the commission that they are a problem gambler and agreeing not to engage in any gaming activity at licensed casinos. N.J. Stat. Ann. § 5:12-71.2(a) (Supp. 2006). Once placed on these lists, licensed casinos should not send these individuals any forms of casino-related advertising or offer them any casino-related benefits. N.J. Stat. Ann. § 5:12-71.2(a) (Supp. 2006). This list is not open to the public, however a casino licensee can disclose the identify of persons on the list for assisting in the administration of responsible gambling programs. N.J. Stat. Ann. § 5:12-71.2(d) (Supp. 2006).

h. Gambling Age

No one that is not authorized to purchase and consume alcoholic beverages in the state (under the age of 21) can enter, or wager in a licensed casino or simulcasting facility. N.J. Stat. Ann. § 5:12-119.

i. Gaming Contracts

There is no statutory provision in New Jersey dealing with gaming contracts.

j. Commercial Gaming Crimes

Licensee

Any licensee that willfully fails to report pay or account for any fee, tax, or payment authorized by the Casino Control Act is guilty of a crime in the fourth degree. N.J. Stat. Ann. § 5:12-111. A natural person guilty can be fined up to twenty-five thousand dollars and anyone other than a natural person can be fined up to one hundred thousand dollars and also is liable for three times the amount of the payment not paid. N.J. Stat. Ann. § 5:12-111.

Any one that permits a non licensed individual to conduct or operate any gambling game is guilty of a crime in the fourth degree and can be fined up to twenty-five thousand dollars if a natural person, or one hundred thousand dollars if not a natural person. N.J. Stat. Ann. § 5:12-112(a). Also, any licensee that places games or slot machines into play at their casino hotel without authority of the commission is guilty of a crime in the fourth degree and can be fined up to twenty-five thousand dollars if a natural person, or one hundred thousand dollars if not a natural person. N.J. Stat. Ann. § 5:12-112(b). Furthermore, any person who operates a gambling game or slot machine after his license has expired and before renewal is guilty of a crime in the fourth degree, subject to the penalties for the other two crimes listed above. N.J. Stat. Ann. § 5:12-112(c).

Any employee whose position requires a license that begins work without having a license is guilty of a crime in the fourth degree and can be fined up to ten thousand dollars if a natural person, or fifty thousand dollars if not a natural person. N.J. Stat. Ann. § 5:12-117(a). Any person that employs these individuals is subject to the same penalties. N.J. Stat. Ann. § 5:12-117(b).

Any licensee or employee that permits an individual under the age of twenty-one to remain in or wager at the casino is guilty of a disorderly persons offense. N.J. Stat. Ann. § 5:12-119(b). However, the licensee or employee can provide a defense to this charge by establishing that:

1. That the underage person falsely represented in writing that they were at or above the legal age to gamble in the state.

2. That an ordinary prudent person would believe the underage person to be at or above the legal age.

3. That the admission was made in good faith, truly believing the individual’s written representation and appearance warranted entry into the casino.

N.J. Stat. Ann. § 5:12-119(b).

Player Crimes

Any person that knowingly by trick or sleight or fraud wins or attempts to win money or attempts to reduce a losing wager is subject to the provisions found in N.J. Stat. Ann. § 5:12-113. Depending on the money involved, the punishments vary as follows:

(1) Swindling and cheating constitutes a crime of the second degree if the amount involved is $75,000 or more.
(2) Swindling and cheating constitutes a crime of the third degree if the amount involved exceeds $500.
(3) Swindling and cheating constitutes a crime of the fourth degree if the amount involved is at least $200 but not more than $500.
(4) Swindling and cheating constitutes a disorderly persons offense if the amount involved is less than $200.
(5) The trier of fact shall determine the amount involved in swindling and cheating. Amounts involved in acts of swindling and cheating committed pursuant to one scheme or course of conduct, whether from the same person or several persons, may be aggregated in determining the grade of the offense. N.J. Stat. Ann. § 5:12-113(c).

Any person that uses an electronic, electrical, computerized, or mechanical device which is made and used specifically for gaining an advantage at a game in a casino hotel is guilty of a crime in the third degree and the device is subject to forfeiture. N.J. Stat. Ann. § 5:12-113.1. If the advantaged gained could be assessed a monetary value of seventy-five thousand dollars or more, the offense becomes a crime in the second degree. N.J. Stat. Ann. § 5:12-113.1.

It is unlawful for any person playing a licensed gambling game to use bogus chips, marked cards, loaded device, or any other cheating device. N.J. Stat. Ann. § 5:12-114(a). These individuals are guilty of a crime in the fourth degree and can be fined up to twenty-five thousand dollars if a natural person, or up to one hundred thousand dollars if not a natural person. N.J. Stat. Ann. § 5:12-114(e). Also, anyone that possesses or tries to use a cheating device designed to tamper with or alter a slot machine at a casino hotel is guilty of a crime in the fourth degree, subject to the penalties of the first crime listed in this paragraph. N.J. Stat. Ann. § 5:12-114.

Any person under twenty-one that tries to enter or wager in a licensed casino or simulcasting facility is guilty of a disorderly persons offense and can be fined between five hundred dollars and one thousand dollars. N.J. Stat. Ann. § 5:12-119. These individuals can also have their driver’s licenses suspended for up to six months. N.J. Stat. Ann. § 5:12-119.

X. Statute of Anne/Recovery of Debts

N.J. Stat. Ann. § 2A:40-5 provides that a person that loses any valuable thing at gaming, and the valuable thing is then paid or delivered to the winner, or to his agent, or to a stakeholder, can sue and recover the amount lost in a civil action against the winner, the agent, or the stakeholder within six months after payment of the money.