An Act concerning horse racing in this State and off-track wagering licenses and amending P.L.2001, c.199.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 3 of P.L.2001, c.199 (C.5:5-129) is amended to read as follows:
C.5:5-129 Definitions related to horse racing and off-track wagering.
3. As used in this act:
"Account holder" means a resident of this State over age 18 who establishes an account pursuant to this act through which account wagers are placed.
"Account wagering" means a form of parimutuel wagering in which an account holder may deposit money in an account with the account wagering licensee and then use the account balance to pay for parimutuel wagers by the account holder.
"Account wagering licensee" means the New Jersey Sports and Exposition Authority or its assignee, provided that the commission has granted its approval for the authority to establish an account wagering system as provided for in this act.
"Account wagering system" means the system through which account wagers are processed by the account wagering licensee pursuant to this act.
"Authority" means the New Jersey Sports and Exposition Authority created by section 4 of P.L.1971, c.137 (C.5:10-4).
"Backstretch Benevolency" means the Backstretch Benevolency Programs Fund established pursuant to section 1 of P.L.1993, c.15 (C.5:5-44.8).
"Breeders and Stallions" means the distribution from the special trust account created pursuant to paragraph (2) of subsection a. of section 46 of P.L.1940, c.17 (C.5:5-66) for the purposes of subparagraph (c) of that citation.
"Breeding and Development" means the New Jersey Horse Breeding and Development Account established pursuant to section 5 of P.L.1967, c.40 (C.5:5-88).
"Commission" means the New Jersey Racing Commission created by section 1 of P.L.1940, c.17 (C.5:5-22).
"Executive Director" means the Executive Director of the commission.
"Health and Welfare" means moneys distributed to the Standardbred Breeders' and Owners' Association for the administration of a health benefits program pursuant to paragraph (5) of subsection a. of section 46 of P.L.1940, c.17 (C.5:5-66).
"In-State host track" means a racetrack within this State which is operated by a permit holder which conducts a horse race upon which account wagers are placed pursuant to this act.
"In-State sending track" means a racetrack within this State which is operated by a permit holder and is equipped to conduct off-track simulcasting.
"In-State track" means an in-State host track or an in-State sending track.
"Interstate common pool" means the parimutuel pool established within this State or in another state or foreign nation within which is combined parimutuel pools of one or more receiving tracks located in one or more states or foreign nations upon a race at an out-of-State sending track or out-of-State host track for the purpose of establishing payoff prices in the various jurisdictions.
"Jockey's Health and Welfare" means a health and welfare trust established by the organization certified by the New Jersey Racing Commission as representing a majority of the active licensed thoroughbred jockeys in New Jersey for the purpose of providing health and welfare benefits to active, disabled and retired New Jersey jockeys and their dependents based upon reasonable criteria by that organization.
"New Jersey Racing Industry Special Fund" means the fund established pursuant to section 27 of this act.
"New Jersey Thoroughbred Horsemen's Association" means the association representing the majority of New Jersey thoroughbred owners and trainers responsible for receiving and distributing funds for programs designed to aid thoroughbred horsemen.
"Off-track simulcasting" means the simultaneous audio or visual transmission of horse races conducted at in-State and out-of-State racetracks to off-track wagering facilities and parimutuel wagering at those off-track wagering facilities on the results of those races.
"Off-track wagering" means parimutuel wagering at an off-track wagering facility as authorized under this act.
"Off-track wagering facility" means a licensed facility, other than a racetrack, at which parimutuel wagering is conducted pursuant to this act.
"Off-track wagering licensee" means the New Jersey Sports and Exposition Authority or its assignee, provided that the commission has granted its approval to conduct an off-track wagering facility as provided for in this act.
"Out-of-State host track" means a racetrack in a jurisdiction other than the State of New Jersey, the operator of which is lawfully permitted to conduct a horse race meeting and which conducts horse races upon which account wagers may be placed pursuant to this act.
"Out-of-State sending track" means a racetrack in a jurisdiction other than the State of New Jersey which is equipped to conduct off-track simulcasting and the operator of which is lawfully permitted to conduct a horse race meeting and to provide simulcast horse races to off-track wagering facilities in this State.
"Out-of-State track" means an out-of-State host track or an out-of-State sending track.
"Outstanding parimutuel ticket" means a winning parimutuel ticket which is not claimed within 12 months of sale.
"Parimutuel" means any system whereby wagers with respect to the outcome of a horse race are placed with, or in, a wagering pool conducted by an authorized person, and in which the participants are wagering with each other and not against the person conducting the wagering pool.
"Participation agreement" means the written contract entered into prior to the effective date of P.L.2011, c.26, that provides for the establishment or implementation of either (a) an off-track wagering facility or facilities; or (b) an account wagering system. Each such contract shall set forth the manner in which the off-track wagering facility or facilities or the account wagering system shall be managed, operated, and capitalized, as well as how expenses and revenues shall be allocated and distributed by and among the authority and the other eligible participants.
"Permit holder" means the holder of an annual permit to conduct a horse race meeting issued by the commission.
"Racetrack" means the physical facility where a permit holder conducts a horse race meeting with parimutuel wagering.
"Racing costs" means the prospective and actual costs for all licensing, investigation, operation, regulation, supervision, and enforcement activities and functions performed by the commission.
"Simulcast horse races" means horse races conducted at an in-State sending track or an out-of-State sending track, as the case may be, and transmitted simultaneously by picture to a receiving track or an off-track wagering facility.
"Sire Stakes" means the Sire Stakes Program established pursuant to section 1 of P.L.1971, c.85 (C.5:5-91).
"Standardbred Drivers' Health and Welfare" means a health and welfare trust established by the Standardbred Breeders' and Owners' Association of New Jersey for the purpose of providing health and welfare benefits to active, disabled, and retired New Jersey standardbred drivers and their dependents based upon reasonable criteria by that organization.
"Takeout" means that portion of a wager which is deducted from or not included in the parimutuel pool, and which is distributed other than to persons placing wagers.
"Thoroughbred Breeders and Stallions" means the special trust account created pursuant to section 46 b.(1)(e) of P.L.1940, c.17 (C.5:5-66).
2. Section 4 of P.L.2001, c.199 (C.5:5-130) is amended to read as follows:
C.5:5-130 Issuance of license to permit off-track wagering; establishment of facilities.
4. a. The commission is authorized to issue a license to the authority to permit off-track wagering at a specified facility upon application of the authority and in accordance with the provisions of this act. A license issued pursuant to this act shall be valid for a period of time to be determined by the commission, but for not less than one year. The commission shall renew any such license that is valid on, or issued after, the effective date of P.L.2025, c.302, upon filing of the necessary renewal forms with the commission and payment of any renewal fees required by the commission, provided the commission determines that the qualifications set forth in this subsection and any applicable regulations promulgated by the commission have been satisfied.
The commission shall issue a license pursuant to this subsection only if the permit holder at Monmouth Park and the thoroughbred and standardbred permit holders at Meadowlands Racetrack schedule at least the minimum number of race dates required in section 30 of this act, P.L.2001, c.199 (C.5:5-156), and it is satisfied that the authority has entered into a participation agreement with each and every other person, partnership, association, corporation, or authority or the successor in interest to such person, partnership, association, corporation, or authority that:
(1) held a valid permit to hold or conduct a race horse meeting within this State in the calendar year 2000 or holds a current, valid permit to hold or conduct a race horse meeting within this State;
(2) has complied with the terms of such permit; and
(3) is in good standing with the commission and the State of New Jersey.
An off-track wagering license may not be transferred or assigned to a successor in interest without the approval of the commission and the Attorney General, which approval may not be unreasonably withheld.
b. Any participation agreement entered into for the purposes of subsection a. of this section, or any modification to the agreement made thereafter, shall be reviewed by the commission and the Attorney General to determine whether the agreement meets the requirements of this act and shall be subject to the approval of the commission and the Attorney General.
c. (Deleted by amendment, P.L.2025, c.302)
d. (Deleted by amendment, P.L.2025, c.302)
e. (Deleted by amendment, P.L.2025, c.302)
f. Nothing in P.L.2001, c.199 (C.5:5-127 et seq.) shall be construed to limit the ability of a horsemen’s organization to enter into or enforce a participation agreement or any other partnership agreement with a horse racing permit holder for the operation of an off-track wagering facility pursuant to a valid license issued pursuant to P.L.2001, c.199 (C.5:5-127 et seq.).
3. Section 5 of P.L.2001, c.199 (C.5:5-131) is amended to read as follows:
C.5:5-131 Filing fee, certification; standards.
5. a. At the time of filing an application for an off-track wagering license, the applicant shall submit to the commission a non-refundable filing fee in an amount established by regulation by the commission and a certification in a form prescribed by the commission which specifies, but is not limited to, the following information:
(1) a plan depicting the proposed facility and improvements thereon, including information about the size, seating capacity, parking, and services to be provided at the facility;
(2) the location of the proposed facility and relevant demographic or other information concerning the municipality and surrounding area where the proposed facility is to be located;
(3) the number of permanent and part-time jobs expected to be created at the proposed facility and gross revenues expected to be generated by the facility;
(4) the fire evacuation plan for the proposed facility;
(5) the type of food and beverages available, which shall include the provision of first-class dining facilities; and
(6) such other information as the commission may require.
b. The applicant shall file a separate application and certification for each proposed off-track wagering facility.
c. The commission shall charge each off-track wagering licensee a reasonable fee in connection with the renewal of the off-track wagering license and shall establish by regulation procedures, conditions, and forms necessary for renewal of licenses issued under this act. The amount of the license renewal fee shall be used by the commission to cover commission expenses associated with implementation of the provisions of this act, P.L.2001, c.199, and shall reasonably reflect those costs.
d. The commission shall by regulation establish the maximum hours of operation of off-track wagering facilities.
e. (1) Notwithstanding R.S.33:1-42, priority for the service of alcoholic beverages for on-premise consumption at an off-track wagering facility shall be given to a Class C plenary retail consumption licensee, by an agreement or contract with the off-track wagering licensee, pursuant to the provisions of R.S.33:1-1 et seq., in accordance with such procedures as established by statute and by regulation of the Division of Alcoholic Beverage Control. When a Class C plenary retail consumption license or licensee is available in the municipality, the authority shall not hold a license to provide alcoholic beverages at an off-track wagering facility. However, when a Class C plenary retail consumption licensee or license is not available in the municipality, the Director of the Division of Alcoholic Beverage Control shall issue a special concessionaire permit to the authority for the provision of alcoholic beverages at the off-track wagering facility and, if the off-track wagering license is held by an off-track wagering licensee other than the authority, the director may issue a non-transferable special license to provide alcoholic beverages at the off-track wagering facility pursuant to paragraph (2) of this subsection.
(2) The Director of the Division of Alcoholic Beverage Control may issue one special license to an individual, corporation, or other type of legal entity to serve alcoholic beverages at an off-track wagering facility located in the municipality where a Class C plenary retail consumption licensee was not available to provide alcoholic beverages at the off-track wagering facility pursuant to paragraph (1) of this subsection. The license shall authorize the sale of alcoholic beverages for immediate consumption on the premises of the off-track wagering facility. The director may issue not more than 15 licenses pursuant to this paragraph. Furthermore, licenses issued pursuant to this paragraph shall be subject to the following requirements:
(a) No person who would fail to qualify as a licensee under Title 33 of the Revised Statutes shall be permitted to hold an interest in a special license under the provisions of this paragraph;
(b) Licenses shall be subject to the provisions of Title 33 of the Revised Statutes and rules and regulations promulgated by the director to the extent those provisions are not inconsistent with the provisions of this act;
(c) No license issued pursuant to this paragraph shall be transferred to any other premises;
(d) Application for the initial issuance and renewal of each license shall be made to the director on an annual basis. The fee for the initial issuance of the license shall be the average sale price for the three most recent sales of plenary retail consumption licenses in the municipality where the license is being issued during the preceding five years. If the off-track wagering facility is located within the boundaries of two or more municipalities, the highest average sale price of the two or more municipalities shall be used. If less than three plenary retail consumption licenses have been sold in the municipality or municipalities, as the case may be, within the previous five years, the director shall obtain an appraisal, at the applicant's expense, to determine the appropriate fee for the license. The appraisal process shall include an examination of previous transactions in the municipality or municipalities, as the case may be, and shall reflect what a willing buyer, under no pressure to buy, would pay a willing seller, under no pressure to sell, for a plenary retail consumption license in that municipality or municipalities, as the case may be. One half of the amount of the application fee for the initial issuance of the license shall be paid upon the issuance of the license and the other half of that amount shall be paid one year later. The director shall establish an annual fee for the license which shall not exceed the fee which may be imposed by a municipality for a plenary retail consumption license pursuant to R.S.33:1-12, a portion of which shall be paid by the director to the New Jersey Racing Commission for the funding of horse breeding incentive programs;
(e) The fee for the initial issuance of the license shall be distributed in the following manner:
(i) Twenty-five percent shall be paid to the municipality where the off-track wagering facility is located and if the off-track wagering facility is located within the boundaries of two or more municipalities, the fee shall be divided equally among those municipalities;
(ii) Twenty-five percent shall be paid to the Director of the Division of Alcoholic Beverage Control; and
(iii) Fifty percent shall be paid to the New Jersey Racing Commission for the funding of horse breeding incentive programs;
(f) The individual corporation or entity holding the license shall not be entitled to sell a license issued pursuant to this paragraph, and the license shall expire upon the closure of the off-track wagering facility;
(g) The director shall not issue a special concessionaire permit for any off-track wagering facility or premises which is eligible to obtain a license to serve alcoholic beverages under the provisions of this paragraph; and
(h) Pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), the director shall adopt rules and regulations to effectuate the purposes of this paragraph.
(3) Nothing in this subsection shall be construed to allow the Director of the Division of Alcoholic Beverage Control to issue a special concessionaire permit or a special license described in paragraph (2) of this subsection to the authority pursuant to this act, P.L.2001, c.199, or to issue a special license to any individual, corporation, or other type of legal entity to serve alcoholic beverages in a municipality that prohibits the retail sale of alcoholic beverages within its boundaries.
f. Persons under the age of 18 years shall not be permitted in any off-track wagering facility, except in dining areas if accompanied by a parent or guardian.
g. The commission shall by regulation establish minimum standards for off-track wagering facilities, including, but not limited to, standards for quality, size, seating capacity, the provision of first-class dining facilities, and parking and services to be provided. The failure of an off-track wagering licensee to meet these standards shall be sufficient cause for the commission to revoke, suspend, or refuse to renew a license pursuant to the provisions of section 8 of P.L.2001, c.199 (C.5:5-134).
h. Notwithstanding the provisions of any law, rule,
or regulation to the contrary, an off-track wagering facility shall be a
permitted use in all commercial and industrial districts of
a municipality.
i. In evaluating an application for an off-track wagering license, the commission shall consider the proximity of the applicant's proposed site to other planned or existing off-track wagering facilities and to racetracks in this State. If, in the opinion of the commission, the establishment of the facility at its proposed location would be inimical to the interests of another planned or established off-track wagering facility, or to a State racetrack, the commission shall require the applicant to consider alternative sites for the proposed facility.
4. This act shall take effect immediately.
Approved January 20, 2026.