ADMINISTRATIVE LAW | ENTERTAINMENT AND SPORTS LAW
01-2-5828 In The Matter Of The Order Of The New Jersey Racing Commission, App. Div. (per curiam) (31 pp.) Appellant New Jersey Account Wagering, LLC (NJAW) appealed from an order of respondent New Jersey Racing Commission. The order granted the petition filed by respondent New Jersey Sports and Exposition Authority (NJSEA), to approve an agreement between the NJSEA and Darby Development, LLC, whereby Darby, as a non-agent independent contractor, would manage and operate all aspects of a horse race wagering system known as the “account wagering system” (AWS). On appeal, NJAW contended the order is void because the Commission violated its procedural rules in considering the petition on an expedited basis, the Commission and the NJSEA violated the Open Public Meetings Act and the order impermissibly appoints Darby as a non-agent independent contractor in violation of the New Jersey Off-Track and Account Wagering Act and an agreement between the NJSEA and NJAW. NJAW also contended the order is arbitrary, capricious and unreasonable because it conflicts with the Commission’s prior decision prohibiting Darby, as a non-agent independent contractor, from managing a racetrack and off-track wagering facility and conflicts with the terms of the Darby Agreement. NJAW also appealed from the Commission’s order which approved Darby to continue to manage and operate the AWS. The appellate panel affirmed in part and remanded in part for the Commission to modify the orders to require an amendment to the Darby Agreement providing that Darby is acting as the NJSEA’s agent with respect to Darby’s management and operation of the AWS. Further, Darby has no final decision making authority, the NJSEA retains ultimate control and decision-making authority and the NJSEA shall oversee and manage Darby.
