[First Reprint]
ASSEMBLY, No. 3356
STATE OF NEW JERSEY
210th LEGISLATURE
INTRODUCED FEBRUARY 24, 2003
Sponsored by:
Assemblyman GARY L. GUEAR, SR.
District 14 (Mercer and Middlesex)
Assemblyman JEFF VAN DREW
District 1 (Cape May, Atlantic and Cumberland)
SYNOPSIS
Clarifies definition of illegal gambling to address Internet gambling; voids credit card debt incurred through illegal gambling; authorizes State to recover illegal gambling losses.
CURRENT VERSION OF TEXT
As reported by the Assembly Tourism and Gaming Committee on February 27, 2003, with amendments.
An Act concerning Internet gambling and other forms of illegal 1[remote]1 gambling, amending Title 2A of the New Jersey Statutes 1and repealing N.J.S.2A:40-2 and N.J.S.2A:40-61.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. The Legislature finds and declares:
a. It is the public policy of this State to permit only those forms of gambling which are authorized by the New Jersey Constitution and duly enacted laws of this State. Concomitantly, forms of gambling which are not so authorized are contrary to the public policy of the State.
b. These constitutional and statutory limitations enable the State to regulate gambling, in order to promote the fairness of gaming activities and to ensure the integrity and financial accountability of industry participants. These protections have been designed and implemented to protect New Jersey consumers and to minimize or avoid adverse societal consequences which are often associated with unregulated or unlawful gambling
c. Developments in communications technology, particularly the Internet, have enabled operators to conduct unauthorized gambling activities, including gambling transacted with individuals located within New Jersey by means of the Internet or other medium of communication, in contravention of the laws and public policy of this State. Unauthorized gambling operators make casino gambling and sports betting potentially available to anyone in this State with access to a personal computer.
d. Unauthorized Internet gambling activities implicate a wide range of consumer and public safety concerns, such as the integrity and financial resources of the operators, the fairness of the games and the possibility of tampering by operators or hackers, the lack of effective consumer dispute resolution procedures, the facilitation of underage gambling, the expansion of problem gambling, and the potential for enhanced criminal activity and increased vulnerability to money laundering.
e. A primary means of funding unauthorized Internet gambling is through the use of credit card transactions. The Legislature believes that rendering these transactions void and unenforceable 1[as against the public policy of New Jersey]1 will have the salutary effect of reducing the targeting of New Jersey consumers by unauthorized gambling operators and curtailing the participation of State residents in these unlawful, unregulated transactions.
2. N.J.S.2A:40-1 is amended to read as follows:
2A:40-1. [All] Except as authorized under the laws and the Constitution of this State, all wagers, bets or stakes made to depend upon any race or game, or upon any gaming by lot or chance, or upon any lot, chance, casualty or unknown or contingent event, shall be unlawful. This section shall apply to any wager, bet or stake made if any party to the transaction is present in this State when the transaction occurs, regardless of the location of any other party to the transaction, and without regard to whether the transaction is conducted in person or through a medium of communication, including but not limited to mail, telephone, television, telegraph, facsimile, cable, wire, satellite, the Internet, wireless network, or other medium of communication.
(cf: N.J.S.2A:40-1)
3. N.J.S.2A:40-3 is amended to read as follows:
2A:40-3. a. All promises, agreements, notes, bills, bonds, contracts, judgments, mortgages, leases or other securities or conveyances which shall be made, given, entered into or executed by any person, the whole or part of the consideration of which is for any money, property or thing in action whatsoever laid, won or bet in violation of [section] N.J.S.2A:40-1 [of this title], or for reimbursing or repaying any money knowingly lent or advanced to help or facilitate such violation, shall be 1[utterly]1 void 1[,]1 [and] and 1[of no effect] unenforceable1.
b. A credit card transaction shall be void and 1[of no effect] unenforceable1 against the obligor if the creditor knew or should have known at the time the transaction occurred that the credit card was an 1[instrumentality] instrument1 used in the commission of a transaction in violation of N.J.S.2A:40-1.
c. For the purpose of subsection b. of this section, there shall be a rebuttable presumption that a creditor has actual or constructive knowledge that the credit card was an 1[instrumentality] instrument1 used in the commission of a transaction in violation of N.J.S.2A:40-1 if one or more parties to the credit card transaction are engaged directly or indirectly in gambling using the Internet or any other medium of communication set forth in N.J.S.2A:40-1.
(cf: N.J.S.2A:40-3)
4. N.J.S.2A:40-5 is amended to read as follows:
2A:40-5. 1[a.]1 If any person shall lose any money, goods, chattels or other valuable thing, in violation of [section] N.J.S.2A:40-1 [of this title], and shall pay or deliver the same or any part thereof to the winner, or to any person to his use, or to a stakeholder, 1[such person] the State1 may [sue] bring suit for and recover such money, or the value of such goods, chattels, or other valuable thing, 1with costs of suit,1 from such winner, or from such depositary, or from such stakeholder, whether the same has been delivered or paid over by such stakeholder or not, in a civil action provided such action is brought within 1[6] 121 calendar months after payment or delivery.
1[b. Notwithstanding the provisions of subsection a. of this section, a person who loses any money, goods, chattels or other valuable thing in violation of N.J.S.2A:40-1 shall not bring suit for and recover such money, or the value of such goods, chattel or other valuable thing under subsection a. of section this section, the consumer fraud law, P.L.1960, c.39 (C.56:8-1 et seq.), or any other provision of State law, if the violation of N.J.S.2A:40-1 by such person involves the use of the Internet or any other medium of communication set forth in N.J.S.2A:40-1.]1 Nothing in this 1[subsection] section1 shall preclude 1[such]1 recovery 1of losses1 as may be effected under subsection b. of N.J.S.2A:40-3.
(cf: N.J.S.2A:40-5)
1[5. N.J.S.2A:40-6 is amended to read as follows:
a. If the person who shall lose and pay such money, or lose and deliver such thing or things as aforesaid, shall not, within the time aforesaid, without collusion, [sue] bring suit for the money or other thing or things so lost and paid, or delivered, the State or any other person may [sue] bring suit for and recover the same, with costs of suit, from such winner, depositary or stakeholder as aforesaid; [the one moiety] one-half thereof to the use of the person suing for the same, and the other [moiety] half to the use of the [state] State, or the entirety thereof to the use of the State when the State brings the suit; provided the action is instituted within 6 calendar months from and after the expiration of the time limited in [section] N.J.S.2A:40-5 [of this title] for the loser to [sue] bring suit for the same.
b. When a person is prevented from bringing suit to recover losses pursuant to subsection b. of N.J.S.2A:40-5, the State may bring suit for and recover the same before the expiration of the six calendar month period established in subsection a. of N.J.S.2A:40-5. Notwithstanding the provisions of subsection a. of this section, no person, other than the State, may recover money or property lost by another if the person who lost the money or property would be precluded from recovery under subsection b. of N.J.S.2A:40-5.
(cf: N.J.S.2A:40-6)]1
15. N.J.S.2A:40-2 and N.J.S.2A:40-6 are repealed.1
6. This act shall take effect immediately.