A6081

An Act authorizing the sale of instant lottery game tickets by courier services and establishing a self-exclusion list for State Lottery games, amending P.L.2017, c.11, and supplementing P.L.1970, c.13 (C.5:9-1 et seq.).

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

1. Section 1 of P.L.2017, c.11 (C.5:9-14.3) is amended to read as follows:

1. a. For the purposes of this act, "courier service" means a person or business entity that is registered with the State Lottery Commission to purchase State Lottery tickets on behalf of individuals within the State and deliver those tickets to those individuals in the State as a for-profit service.

b. (1) Upon receipt of an application from a courier service, the commission shall register and authorize the courier service to purchase and deliver State lottery tickets within the State of New Jersey. The registration of any courier service shall include, but shall not be limited to, a check of credit reporting sources, other State departments and agencies, and criminal justice agencies. The commission shall substantiate the moral character and integrity of the owners, operators, directors, key personnel, and couriers of a courier service that submits a registration application.

(2) The commission shall supervise registered courier services in a manner necessary to ensure that the integrity and reputation of the New Jersey lottery is maintained. The commission shall accept complaints concerning such services and investigate those complaints. The commission shall investigate suspected violations of the statutes and regulations by such services and impose sanctions for violations. The commission may suspend or revoke the registration of a courier service for violations or for such other reasons as shall be set forth in the rules and regulations promulgated by the commission.

(3) In accordance with the rules and regulation promulgated by the commission, a registered courier service shall maintain an Internet site and shall display prominently on that site:

a warning of the risk of being defrauded if purchasing lottery tickets through a courier service that is not registered by the commission;

the identical gambling addiction warning required of licensed New Jersey casinos; and

information on how to seek help for a gambling problem through education, by telephone, from the Internet, or by other electronic means.

(4) In accordance with the rules and regulations promulgated by the commission, a registered courier service shall safeguard the personal information, including credit card numbers, and properly verify the age and physical location of customers utilizing the service.

(5) In accordance with the rules and regulations promulgated by the commission, the courier service shall be permitted to redeem a lottery ticket on behalf of a customer utilizing the service in a manner that is secure for that customer and transparent to the public.

c. In lieu of delivery of a purchased lottery ticket to a customer utilizing the courier service, a courier service may store such ticket on behalf of that customer, with the customer's consent, if the courier service provides an electronic receipt of the ticket purchased with the numbers of the ticket shown on the receipt. A customer utilizing the courier service shall have the option at all times to obtain the ticket for the purpose of redemption. A courier service storing a ticket on behalf of a customer shall maintain a secure database of all stored lottery tickets, linked to the respective customers. The courier service shall notify the customer of a winning ticket value and maximum prize within 24 hours of a drawing. The commission shall conduct, and a courier service shall submit as a condition of registration, to random audits of the database.

d. No portion or percentage of lottery winnings shall be charged, accepted, given, or payable to the courier service as a fee for the purchase or delivery or for the redemption of a ticket.

The operation of a registered courier service shall not constitute a violation of N.J.S.2C:37-2 or N.J.S.2C:37-3, or the sale of lottery tickets. The charging of a fee by a courier service for the purchase and delivery of a ticket shall not constitute a violation of section 14 of P.L.1970, c.13 (C.5:9-14).

A courier service shall not be licensed as a lottery sales agent under section 11 of P.L.1970, c.13 (C.5:9-11).

e. A person or business entity operating a lottery courier service without being registered and authorized by the commission pursuant to this section shall be guilty of a crime of the third degree.

f. The commission shall promulgate rules and regulations, pursuant to the "Administrative Procedure Act," P.L. 1968, c.410 (C.52:14B-1 et seq.), as may be needed to effectuate the provisions of this section.

g. Notwithstanding the provisions of any law, rule, or regulation to the contrary, a courier service that is registered with the State Lottery Commission to purchase State Lottery tickets on behalf of individuals within the State and deliver those tickets to those individuals in the State may receive and fulfill orders for instant lottery game tickets electronically delivered within the State. For purposes of this subsection, "instant lottery game ticket" means a physical ticket approved by the Division of State Lottery where play symbols are revealed by removing a latex or protective coating, and prizes are awarded according to the symbols revealed on a particular ticket.

Notwithstanding the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the Division of State Lottery shall adopt, immediately, upon filing with the Office of Administrative Law, such rules and regulations as the division deems necessary to implement the provisions of this subsection, which rules and regulations shall be effective for a period not to exceed 365 days after the date of the filing. Prior to the expiration of the rules and regulations, the Division of State Lottery shall amend, adopt, or readopt the rules and regulations in accordance with the requirements of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).

(cf: P.L.2017, c.11, s.1)

2. (New section) a. The State Lottery Commission shall provide by regulation for the establishment of a list of persons who voluntarily seek to be excluded from participation in games offered by the State Lottery. A person may request placement on the self-exclusion list by acknowledging in a manner to be established by the commission that the person is a problem gambler and by agreeing that, during a period of voluntary exclusion, the person may not collect any prize or winnings or recover losses resulting from the person’s participation in a State Lottery game.

b. The commission shall promulgate regulations to: (1) establish procedures for placements on, and removals from, the list of self-excluded persons; (2) establish procedures for the transmittal to lottery courier services of identifying information concerning persons on the self-exclusion list; and (3) require lottery courier services to establish procedures designed, at a minimum, to remove persons on the self-exclusion list from targeted mailings or other forms of advertising or promotions and deny such persons access to credit and other benefits, as determined by the commission.

c. The commission, a lottery sales agent, or lottery courier service, or an employee thereof, shall not be liable to a person on the self-exclusion list or to another party in a judicial proceeding for harm, monetary or otherwise, which may arise as a result of:

(1) the failure of a lottery sales agent or lottery courier service to withhold lottery tickets or shares from a person on the self-exclusion list; or

(2) permitting a person on the self-exclusion list to purchase lottery tickets or shares.

d. (1) The commission’s self-exclusion list shall be privileged and confidential and shall not be accessible to the public pursuant to P.L.1963, c.73 (C.47:1A-1 et seq.).

(2) The commission, a lottery courier service, or an employee thereof, shall not be liable to a person on the self-exclusion list or to another party in a judicial proceeding for harm, monetary or otherwise, which may arise as a result of disclosure or publication, other than a willfully unlawful disclosure or publication, of the identity of a self-excluded person.

e. A person on the self-exclusion list established pursuant to this section shall not collect, in any manner or proceeding, any prize or winnings, or recover losses, arising as a result of the person’s participation in a State Lottery game.

f. Any prize or winnings which have been obtained by, or are owed to, a person on the self-exclusion list as a result of the person’s participation in a State Lottery game shall be subject to forfeiture by order of the commission, following notice to the person on the self-exclusion list and opportunity to be heard.

Any prize or winnings forfeited shall be deposited into the State General Fund for appropriation by the Legislature to the Department of Human Services to provide funds for compulsive gambling treatment and prevention programs in the State.

g. In a proceeding brought by the commission against a lottery courier service for a willful violation of the commission’s self-exclusion regulations, the commission may order in addition to a license suspension, a fine not to exceed $5,000 per incident, the forfeiture of any prize or winnings obtained by the lottery courier service from a person on the self-exclusion list, and other remedial conditions the commission deems appropriate. Any prize or winnings so forfeited shall be disposed of in the same manner as money or a thing of value forfeited pursuant to subsection f. of this section.

3. This act shall take effect immediately.

STATEMENT

This bill authorizes lottery ticket courier services to sell instant lottery game tickets electronically to persons located in this State. The bill defines “instant lottery game ticket” to mean a physical ticket approved by the Division of State Lottery where play symbols are revealed by removing a latex or protective coating, and prizes are awarded according to the symbols revealed on a particular ticket.

The bill also directs the State Lottery Commission to establish a self-exclusion list, which will allow problem gamblers to exclude themselves from participation in State Lottery games in a manner similar to the self-exclusion lists which currently exist for casinos and racetracks. The commission will (1) establish procedures for placements on, and removals from, the list of self-excluded persons; (2) establish procedures for the transmittal to lottery courier services of identifying information concerning persons on the self-exclusion list; and (3) require lottery courier services to establish procedures designed, at a minimum, to remove persons on the self-exclusion list from targeted mailings or other forms of advertising or promotions and deny such persons access to credit and other benefits, as determined by the commission. Any prize or winnings which have been obtained by, or are owed to, a person on the self-exclusion list as a result of the person’s participation in a State Lottery game will be subject to forfeiture by order of the commission, following notice to the person on the self-exclusion list and opportunity to be heard.