ARTICLE
11 December 2013

Is "Instant Racing" Coming To NJ?

DM
Duane Morris LLP

Contributor

Duane Morris LLP, a law firm with more than 800 attorneys in offices across the United States and internationally, is asked by a broad array of clients to provide innovative solutions to today's legal and business challenges.
On December 9, the Senate State Government, Wagering, Tourism & Historic Preservation Committee advanced S2935, a bill that would authorize "instant racing" to be offered at New Jersey racetracks, OTWs, and casino simulcast rooms.
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On December 9, the Senate State Government, Wagering, Tourism & Historic Preservation Committee advanced S2935, a bill that would authorize "instant racing" to be offered at New Jersey racetracks, OTWs, and casino simulcast rooms. 

Instant racing is a form of horse race wagering offered only at wagering terminals.  The customer is offered a screen with horse numbers and past performance data, and the option to make traditional horse race bets.  The race itself is a randomly selected, recorded race, often from many years ago.  Because the track, date, and horse names are not identified, and the race is selected at random, it would be extremely difficult to identify the actual race so as to enable the customer to have the advantage of knowing the result.

Instant racing is viewed as a way to offer racetrack patrons another form of wagering during the relatively lengthy periods between races.  Typically, at New Jersey's racetracks, races take place approximately every 20-30 minutes.  Moreover, the fact that instant racing uses a terminal that often looks similar to a slot machine might be more appealing to customers who prefer to use higher technology devices.

One important issue was discussed during the committee hearing on December 9 - namely, the constitutionality of instant racing.  Currently, the New Jersey Constitution permits wagering only on live horse races and on simulcast horse races.  Instant wagering is arguably neither of those, and in light of how the courts generally strictly construe New Jersey's constitutional language and statutes authorizing gambling, instant wagering might be vulnerable to a challenge.  The solution discussed by the committee was to place instant wagering under the auspices of the Atlantic City casinos through the intrastate internet wagering protocols currently in place, thus deeming all wagers placed in and through an Atlantic City casino, avoiding constitutional implications.

There are still a number of legislative steps for this bill to get through before becoming law, but it certainly appears that New Jersey continues to look for ways to be at the technological forefront in the gaming industry.

This article is for general information and does not include full legal analysis of the matters presented. It should not be construed or relied upon as legal advice or legal opinion on any specific facts or circumstances. The description of the results of any specific case or transaction contained herein does not mean or suggest that similar results can or could be obtained in any other matter. Each legal matter should be considered to be unique and subject to varying results. The invitation to contact the authors or attorneys in our firm is not a solicitation to provide professional services and should not be construed as a statement as to any availability to perform legal services in any jurisdiction in which such attorney is not permitted to practice.

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