Cas€ dsb! 14-45460-NDuBurhisht: DOSMkEBASZSA FRade:1183/1-DategulddoO1RatzONS 73 John J. Hoffman Acting Attorney General of the State of New Jersey R.J. Hughes Justice Complex 25 Market Street P.O, Box 112 Trenton, New Jersey 08625-0112 Gibson, Dunn & Crutcher LLP 1050 Connecticut Avenue, N.W. Washington, D.C. 20036-5306 (202) 955-8500 IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY NATIONAL COLLEGIATE ATHLETIC Civil Action No. 3:14-cv-06450 (MAS) ASSOCIATION, et al, (LHG) Honorable Michael A. Shipp, U.S.D.J. Plaintiffs, v. DECLARATION OF FRANK CHRISTOPHER J. CHRISTIE, et al, ZANZUCCKI IN SUPPORT OF THE STATE DEFENDANTS OPPOSITION Defendants. ‘TO PLAINTIFES’ MOTION FORA. PRELIMINARY INJUNCTION I, Frank Zanzuccki, hereby declare: 1. Lam the Executive Director of the New Jersey Racing Commission (“NIRC” or “Commission”). I have worked for the Commission since 1978 and was appointed Executive Director in 1991, NIRC is responsible for regulating the horse racing industry, which it uccomplishes through regular monitoring, investigations, and, if necessary, prosecutions. NJRC has jurisdiction over New Jersey's thoroughbred and standardbred permit-holders and holds the authority to regulate horse racing at the four racetracks in this State. AAI7Cas€ asbt-bi-05460-NDUBUChiIt: DOSURESHOVE2 FReda1199/1 Date gelato D1 24¢2005 774 2, As the Bxecutive Director of the Commission, I am responsible for administering all Commission activities, In addition, I have certain specific responsibilities, including the authority to supervise all race officials licensees, and employees, as well as the conduct of acing, pari-mutuel operations, and the testing of horses. of Racetrack Regul New Jers 3. The Commission is a division of the New Jersey Department of Law and Public Safety, Among other activities, NIRC oversees pari-mutuel wagering, supervises pari-rmutuel operations at all operating New Jersey racetracks, and grants permits for running the thoroughbred and standardbred race meetings in the State, 4, Pari-mutuel wagering is a common form of betting on horse racing, and involves pooling, ‘a group of bets and calculating the odds based on the assumption that the pool will be shared by all winning bets. Pari-mutuel wagering is permitted at the four racetracks ‘currently operating in New Jersey. ‘The Commission also bas jurisdiction over the simulcasting of horse racing activities at New Jersey's racetracks, as well as casino simulcasting fucilitics and the State's five currently-operating off-track wagering facilities, 5. The horse racing industry in New Jersey is governed by the statutory provisions set forth in NJ. Stat, Ann. § 5:5-22 et seq., as well as the administrative rules and regulations promulgated by NIRC and set forth in the New Jersey Administrative Code at Title 13, Chapters 70, 71, 72, 73, 74, 74A and 74B, A number of these statutory provisions relate to the pari-mutuol wagering that may occur at racetracks, ‘These include: * The need to have a license to offer pari-mutuel wagering, N.J, Stat, Ann. § 5:5-62; + Regulations regarding the size of the wagering pools, id, § 5:5-62.1; A418Cas€ @sbl-b4-05460-NDUBUChIBt: DOSUCESHOFEA FRegd:1205/1 Date géledD4RA(2006 775 * Regulations regarding the display of the odds, the placement of the horses, and the elapsed time of the race, id. § 5:5-63; © Regulations regarding the types of tickets and ticket machines, id.; © Distribution of payments to winners or in the ease of ties, id; © Percentage of payments racetracks are allowed to keep, and purposes for which those payments may be used (e.g., increasing the size of the purse the track can offer), id. § 5:5-64, 6. The Commission administers and enforces these statutory provisions and regulations through investigations, penalties, fines, exclusions, and revocation of licenses, among. other methods. URC ind 012 Sy 7. NIRC had a fairly limited role in regulating sports wagering under the 2012 Sports Wagering Law (“2012 Law”). NIRC’s main responsibilities under the 2012 Law were to give “approval,” in conjunction with the Division of Gaming Enforcement ("DGE), to any vendor or operator seeking to offer sports wagering at a racetrack, N.J. Stat, Ann. §5:12A-2. Typically, the approval process for a vendor would involve a criminal background check and an investigation of the vendor’s financials, NJRC’s approval process was to be distinct from the sports wagering license itself, which could only be issued by DGE. ‘NIRC’s Role After The 2014 Act 8. In contrast to NIRC’s limited role under the 2012 Law, NIRC has no role a al in sports ‘wagering following the 2014 Sports Wagering Act (‘2014 Act”). Because the 2014 Act is self-executing, neither I nor anyone else at NIRC will play any part in implementing, enforcing or otherwise effectuating the 2014 Act. To the contrary, we will have no involvement at all in any of the sports wagering operations that may occur at any of the A419Cas€asb4-b4-05460-NDuBuihisat: DOSAGKSAIEBA Peg d1203/14Ddtagilddo D4 RAigODS 776 four racetracks in New Jersey. Thus, whereas under the 2012 Law, the Commission might have enforced regulations generally applicable to racetrack vendors—such as the vendor licensing requirements —against sports wagering operators, the Commission will no longer do so following the 2014 Act, 9. Ofcourse, federal and state criminal and civil laws applicable to businesses generally (including but not limited to racetracks and casinos) will continue to apply to all conduct at New Jersey's racotracks, whether or not related to sports wagering, But NIRC will have no direct role in onforcing those laws or prosecuting any violations of those laws. 10. In sum, NJRC will be completely “hands-off” with. Tespect to any sports wagering that ‘may or may not occur at one of the four racetracks subject to its regulatory authority, Following the 2014 Act, sports wagering will be subject to none of the laws or regulations governing, for example, pari-mutuel wagering or simuleasting, and vendors seeking to offer sports wagering will be exempt from the requirements that apply to other vendors, including those selling food or beverages. The facts in this document are known to me and I would be able to testify about them. T hereby declare under penalty of perjury under the laws of the State of New Jersey and the laws of the United States States that the foregoing information is true and comet and thet I signed this declaration in [rahe NI. J onthe 3" ‘ofNovember, 2014, Executive Director, New Jersey Racing Commission A-420