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S3466
SENATE, No. 3466
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED FEBRUARY 12, 2026
Sponsored by:
Senator� JAMES BEACH
District 6 (Burlington and Camden)
SYNOPSIS
���� Permits wagering by business entities with horse
racing and sports pool operators.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
permitting the placement of certain wagers by business
entities and supplementing Title 5 of the Revised Statutes and chapter 37 of
Title 2C of the New Jersey Statutes.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� Notwithstanding the
provisions of the �Off-Track and Account Wagering Act,� P.L.2001, c.199
(C.5:5-127 et seq.), the �Casino Simulcasting Act,� P.L.1992, c.19 (C.5:12-191
et seq.), the �Exchange Wagering Act,� P.L.2011, c.15 (C.5:5-168 et seq.), and
P.L.2018, c.33 (C.5:12A-10 et seq.), or any other law, rule, or regulation to
the contrary, a horse racing or sports pool operator may accept wagers from a
designated individual of a business entity if the business entity has
established a wagering account with the operator and provided certain
information to the operator pursuant to section 2 of P.L.�� , c.�� (C.��� )
(pending before the Legislature as this bill).� All wagers placed by a business
entity shall comply with applicable State and federal laws.
���� For the purposes of P.L.�� ,
c.�� (C.�� ) (pending before the Legislature as this bill):
���� �business entity� means a
corporation, partnership, limited partnership, or a limited liability company
organized under the laws of this State; and
���� �designated individual� means
a person listed as an officer, director, partner or manager of a business
entity in the business entity�s filings with the Division of Revenue and
Enterprise Services in the Department of the Treasury, or any other natural
person authorized by the business entity in writing to place wagers on behalf
of the business entity.
���� 2.��� a.� A business entity
that chooses to establish a wagering account with a horse racing or sports pool
operator shall provide to the operator:
���� (1)�� the name, residential
address, copy of a valid photo identification which evidences that the person
is at least 21 years of age, and social security number or individual taxpayer
identification number, of each of the business entity�s equity owners, holders
of indebtedness, directors, officers, managers and partners, anyone entitled to
payments based on the profits or revenues, and any designated individuals;
���� (2)�� copies of the business
entity�s formation documents and all filings made with the Division of Revenue
and Enterprise Services in the Department of the Treasury;
���� (3)�� any other documentation
or information the Casino Control Commission, the Division of Gaming
Enforcement, and the Racing Commission may require; and
���� (4)�� any other documentation
or information the horse racing or sports pool operator may require.
���� In the event the information
provided pursuant to this section changes, the business entity shall submit
updated documents reflecting the changes to the horse racing or sports pool
operator within five business days from the date the change occurred.
���� �b.�� A business entity
placing wagers shall also:
���� (1)�� maintain in this State
originals or copies of records received from the operator for all wagers
placed;
���� (2)�� maintain an account with
a bank or other financial institution in this State having a principal office,
branch or agency located in the State from which the entity shall transfer and
receive all funds used in wagering with a horse racing or sports pool operator;
and
���� (3)�� make all records
produced pursuant to this subsection available for review by the Casino Control
Commission, the Division of Gaming Enforcement, and the Racing Commission.
���� 3.��� It shall be unlawful for
any person either solely or in conjunction with others:
���� �a.��� to knowingly pay or
distribute profits or compensation to a designated individual or equity owner
who is not disclosed to a horse racing or sports pool operator pursuant to
subsection a of section 2 of P.L.�� , c.�� (C.�� ) (pending before the
Legislature as this bill);
���� �b.�� to knowingly pay or
distribute a percentage of revenue derived from the wagering activity of a
business entity to a person who is not disclosed to a horse racing or sports
pool operator pursuant to subsection a. of section 2 of P.L.�� , c.�� (C.�� ) (pending
before the Legislature as this bill);
���� �c.��� to wager with money
received from a person who is not disclosed to a horse racing or sports pool
operator pursuant to subsection a of section 2 of P.L.�� , c.�� (C.�� ) (pending
before the Legislature as this bill);
���� �d.�� to place a wager on
behalf of a person who is not disclosed to a horse racing or sports pool
operator pursuant to subsection a of section 2 of P.L.�� , c.�� (C.�� ) (pending
before the Legislature as this bill); or
���� �e.��� to knowingly submit any
false information as required by this section.
���� 4.��� The Casino Control
Commission shall, in consultation with the Division of Gaming Enforcement and
the Racing Commission, adopt rules and regulations pursuant to the
�Administrative Procedure Act,� P.L.1968, c.410 (C.52:14B-1 et seq.) as deemed
necessary to carry out the provisions of P.L.�� , c.��� (C.�� ) (pending before
the Legislature as this bill).
���� 5.��� A person who willfully
violates, attempts to violate, or conspires to violate any provisions of P.L.��
, c.�� (C.�� ) (pending before the Legislature as this bill) shall be guilty of
a crime of the second degree punishable by a minimum term of five years
imprisonment and a maximum term of ten years, by a fine of no more than
$50,000, or by both a term of imprisonment and a fine.
���� 6.��� This act shall take
effect 180 days following the date of enactment but the Casino Control
Commission, the Division of Gaming Enforcement, and the Racing Commission may
take anticipatory action in advance of the effective date to ensure timely
implementation of this act.
STATEMENT
���� This bill would permit
wagering by business entities with horse racing or sports pool operators.�
Business entity wagering functions similar to a mutual fund whereby funds
pooled together from different investors are then used by fund managers to
wager on various sporting events in an attempt to produce a profit for
investors.� The business entity�s gains or losses would be shared by each
investor in proportion to his or her equity share.� Business entities would not
be permitted to wager on casino games.
���� Business entities that choose
to establish a wagering account with a horse racing or sports pool operator
would be required to provide certain documentation to the operator showing that
all those associated with the business entity are over 21 years of age and that
the business entity has been properly formed, along with any other documents
required by the Casino Control Commission, the Division of Gaming Enforcement,
the Racing Commission, or a horse racing or sports pool operator.� A business
entity would also be required to maintain originals or copies of records
received from the operator for all wagers placed, maintain an account with a
bank or other financial institution in the State, and make the above records
available for review by the Casino Control Commission, the Division of Gaming
Enforcement, and the Racing Commission.
���� It would be unlawful for any
person solely, or in conjunction with others, to knowingly distribute funds to
a designated individual or equity owner who is not disclosed to the horse
racing or sports pool operator, distribute revenue from a business entity�s
wagering activities to an individual that has not been disclosed to the horse
racing or sports pool operator, wager money on behalf of an individual who has
not been disclosed to the horse racing or sports pool operator, or submit false
information required by the bill.� Under the bill, violations would be a second
degree crime punishable by fines, imprisonment, or both.