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13 N.J.A.R. 558

Resorts; In the Matter of the Petition of, Concerning a 'Cashless' Slot Tournament
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Citation: 13 N.J.A.R. 558
Decision Date: 1987
Synopsis: Resorts filed a petition with the Casino Control Commission seeking permission to conduct a 'cashless' slot tournament. The Commission denied the request. The proposed tournament would have involved slot machines programmed to record points scored, with cash prizes awarded to the highest scorers. No money would be placed in the slot machines and no money would issue from them. Each participant would pay a $1,000 entry fee. Of the total collected, 83 percent would be paid out to the winners of the tournament. Resorts contended that the tournament constituted the authorized game of slot machine under N.J.S.,4. 5:12-5 and that it complied with N.J.S.,4. 5:12-100e, which requires the slot machines have a minimum payout of 83 percent. Alternatively, Resorts argued that the tournament was permissible under N.J.S.,4. 5:12-5 as a variation of the authorized game of slot machine. In its opinion denying the request for the tournament, the Commission noted that it has never issued a general authorization for tournaments based on the casino games enumerated in N.J.S.,4. 5:12-5. Each proposed tournament must be reviewed on a case-bycase basis. The Commission concluded that the tournament proposed by Resorts was not an authorized game of slot machine because each slot machine would not produce the minimum payout required by section 100e. The tournament was also not a variation of the authorized game of slot machine because players would be participating in a lottery using slot machine mechanisms to determine the winners of pooled funds, as opposed to actually playing slot machine. William Mugha, Esq. for Resorts International Hotel, Inc.
Statute(s) Cited: 5:12-5 5:12-45 5:12-100e