New Jersey’s Law on Maintaining Gambling Resorts – What You Need to Know

New Jersey has some pretty strict laws when it comes to gambling. Section 2C:37-4 of the New Jersey Code specifically deals with maintaining gambling resorts. As a lawyer practicing in NJ, it’s important to understand this law and how it can impact your clients.

The Basics of 2C:37-4

The law basically says that it’s a crime to own, lease or operate a gambling resort. A gambling resort is defined as any place where people can gamble and also get food, drinks, lodging or entertainment. So if you’ve got a hotel where folks can also play poker or slots, that would qualify.

Some key points:

• It’s a crime of the fourth degree (more serious than a disorderly persons offense)
• Jail time can be up to 18 months
• Fines can be up to $10,000

So yeah, they don’t mess around with this stuff in NJ. The state wants to crack down on gambling operations trying to disguise themselves as resorts or entertainment complexes.

What Constitutes a Gambling Resort?

Obviously like a full-blown casino hotel would count. But what about other scenarios?

Well, in State v. Fiola, the court said a small cafe with some video poker machines qualified as a gambling resort. Even though it was just a cafe, the video poker made it a place where people could gamble and get food/drinks.

There’s also a case where a guy set up a few slot machines in his auto repair shop. Customers could play while they waited for their cars to be fixed. The court said this was illegal – it constituted a gambling resort because of the combo of gambling and entertainment (waiting area).

So the definition is pretty broad. The law was designed to stop inventive individuals from trying to get around gambling prohibitions.

Can Gambling Resorts Ever be Legal in NJ?

Yes, gambling resorts can be legal if they are properly licensed. New Jersey actually has legalized casinos and sports betting.

However, operators must obtain the appropriate licenses from state regulators. For example, casinos in Atlantic City are legal because they have casino licenses. And online sportsbooks partner with casinos to offer legal sports betting apps.

So if your client wanted to set up a gambling resort, they need to get all the required licenses. This includes a casino license, equipment registration, site approvals, individual licenses for employees, etc. It’s a lengthy process with lots of oversight.

Trying to open an unlicensed gambling resort in NJ is illegal and can lead to raidss and criminal prosecution.

Defenses and Challenges

What if your client gets charged under 2C:37-4 but they feel the allegations are bogus? There are some potential defenses.

One is that the place does not actually meet the definition of a gambling resort. For example, maybe they just have a few slot machines for entertainment, and no other amenities like food, drinks, or lodging. Then it would not qualify as a gambling resort.

Another defense is that your client was not actually “maintaining” the gambling resort. Perhaps they just owned the property but did not know the tenant was running an illegal operation there. In State v. Costa, the court said owners could not be convicted under 2C:37-4 without active maintenance.

Procedural challenges are also an option. If there were issues with the search warrant or evidence collection, those could potentially lead to suppression of evidence.

Policy Implications and Discussion

New Jersey’s laws against unlicensed gambling resorts seem pretty strict. There are certainly policy arguments on both sides.

Supporters say these laws combat organized crime and corruption associated with the gambling industry. It also ensures gambling operations are closely monitored by the state.

Critics argue it limits economic opportunities. A small business owner might see gambling machines as a draw to increase revenues. Outright bans seem heavy-handed.

There are also debates around social impacts. Do strict gambling laws limit harmful behaviors and addiction? Or do they just push gambling underground where it’s unregulated?

It’s a complex issue with reasonable points on both sides. As a lawyer, understanding the nuances of laws like 2C:37-4 allows you to best advise clients. You can let them know what is and isn’t allowed in NJ. And help mount a vigorous defense if they face charges.

The gaming industry is evolving, so gambling laws are always changing too. We’ll have to see if New Jersey ever loosens the reins on maintaining gambling resorts down the road. For now, the restrictions remain fairly tight.