New Jersey Section 2C:37-1 – Definitions

New Jersey’s Gambling Laws: An Overview of 2C:37-1 Definitions

New Jersey has a complex set of gambling laws that regulate everything from casino gaming to office March Madness brackets. Section 2C:37-1 of the state’s criminal code lays out key definitions related to gambling offenses. For lawyers advising clients on gambling issues or defending against gambling charges, understanding these definitions is crucial. This article provides an overview of 2C:37-1 and analyzes some of the implications.

Defining Gambling

Section 2C:37-1 starts by defining “contest of chance” broadly as “any contest, game, pool, gaming scheme or gaming device in which the outcome depends in a material degree upon an element of chance, notwithstanding that the skill of the contestants may also be a factor.” This covers a wide range of activities from poker tournaments to slot machines. The breadth of this definition shows New Jersey’s intent to regulate many forms of betting.

The statute goes on to define “gambling resort” as any facility where casino gaming is authorized. In New Jersey, that’s limited to Atlantic City casinos. The state also defines gambling-related terms like “lottery,” “policy scheme,” “gambling information,” and “gambling record.” These definitions are important for understanding the scope of prohibited activities under other sections of 2C:37.

Carve-Outs and Defenses

While New Jersey defines gambling broadly, 2C:37-1 also carves out some exceptions. Social gambling, amusement games, and regulated casino gaming are permitted. And skill-based contests like fantasy sports leagues are exempt if chance doesn’t play a “material degree” in the outcome.

The statute also establishes some defenses to gambling charges. For example, possessing betting slips or other records isn’t illegal if they aren’t used in an illegal gambling operation. Defendants can avoid conviction by showing the materials were neither used nor intended for use in unlawful gambling activity.

Analysis and Implications

New Jersey’s definitions create a regulatory regime that permits some forms of gambling while prohibiting others. Atlantic City casinos are legal, but unregulated card games and sports betting outside of approved channels remain crimes. This balance aims to capture tax revenue and tourism dollars from the casino industry while limiting risks associated with uncontrolled gambling.

But as technology evolves, applying 2C:37-1’s definitions consistently becomes challenging. Are daily fantasy sports contests of chance, or games of skill? What about online poker? Regulators have struggled with these questions. And the statute’s old-fashioned terminology doesn’t offer much guidance on modern innovations.

The broad definitions also give prosecutors discretion in charging decisions. Many gambling activities fall into gray areas, so the law allows selective enforcement. Critics argue this vagueness means average citizens can get charged for gambling that seems harmless, while connected individuals play with impunity. But supporters counter that flexible rules are necessary to restrict potentially exploitative gambling.

Looking ahead, New Jersey may need to update 2C:37-1 to address new forms of gambling. But major changes seem unlikely given the established interests invested in the current regulatory model. Atlantic City casinos will surely lobby to maintain their privileged position. So expect legal battles to continue over interpreting this statute’s dated definitions in the context of modern technology and evolving cultural attitudes toward gambling.

The bottom line is that 2C:37-1 remains the foundation of New Jersey’s gambling policy. Lawyers dealing with gambling issues need to understand these definitions and their implications. But the statute leaves many gray areas, especially when applying old concepts to new activities. So expect ongoing legal disputes about interpreting and enforcing New Jersey’s gambling laws under 2C:37-1.