1 1 STATE OF NEW JERSEY 2 CASINO CONTROL COMMISSION 3 - - - - - - - - - - - - - - - - - - - 4 5 PUBLIC MEETING NO. 06-03-01 6 7 - - - - - - - - - - - - - - - - - - - 8 9 Wednesday, March 1, 2006 10 Atlantic City Commission Offices 11 Joseph P. Lordi Public Meeting Room - First Floor 12 Tennessee Avenue and Boardwalk 13 Atlantic City, New Jersey 08401 14 10:30 a.m. to 11:10 a.m. 15 16 17 Certified Shorthand Reporter: Darlene Sillitoe 18 - - - - - - - - - - - - - - - - - - - - - - - - - - - 19 20 CIPOLLONI & ASSOCIATES, INC. 21 CERTIFIED SHORTHAND REPORTERS 22 1125 ATLANTIC AVENUE, SUITE 416 23 ATLANTIC CITY, NEW JERSEY 08401 24 (609) 348-9190 25 www.cipolloni-associates.com 2 1 B E F O R E : 2 CASINO CONTROL COMMISSION: LINDA M. KASSEKERT, CHAIR 3 RALPH G. FRULIO, VICE CHAIR MICHAEL C. EPPS, COMMISSIONER 4 MICHAEL A. FEDORKO, COMMISSIOENR WILLIAM T. SOMMELING, COMMISSIONER 5 PRESENT FOR THE CASINO CONTROL COMMISSION: 6 DARYL W. NANCE, ADMINISTRATIVE ANALYST DANIEL J. HENEGHAN, PUBLIC INFORMATION OFFICER 7 OFFICE OF THE GENERAL COUNSEL: 8 DIANNA W. FAUNTLEROY, GENERAL COUNSEL/EXECUTIVE SECRETARY 9 MARY WOZNIAK, ASSISTANT GENERAL COUNSEL SUSAN L. MYERS, SENIOR COUNSEL 10 STEVEN M. INGIS, ASSISTANT GENERAL COUNSEL SETH H. BRILIANT, SENIOR COUNSEL 11 LON E. MAMOLEN, SENIOR COUNSEL BERNADETTE T. FRIGEN, PROGRAM SUPERVISOR 12 SANDRA DELIA, LEGAL SUPPORT SPECIALIST 13 DIVISION OF GAMING ENFORCEMENT 14 DEPUTY ATTORNEYS GENERAL: JAMES ARMSTRONG, DEPUTY ATTORNEY GENERAL 15 TIMOTHY FICCHI, DEPUTY ATTORNEY GENERAL JAMES FOGARTY, DEPUTY ATTORNEY GENERAL 16 RAYMOND MARQUEZ, DEPUTY ATTORNEY GENERAL BEVERLY TANNENHAUS, DEPUTY ATTORNEY GENERAL 17 18 19 20 21 22 23 24 25 3 1 AGENDA PUBLIC MEETING NO. 06-03-01 2 March 1, 2006, 10:30 a.m. ITEM PAGE VOTE 3 1 Ratification of the minutes of 8 8 4 February 15, 2006 2 Applications for emloyee and casino 9 9 5 service industry licenses 3 Stipulations of settlement and 6 consent agreements: a) John A. Hanchar (06-0054-EA) 11 13 7 b) Patricia Y. Higgs (05-0674-ER) 11 13 c) Gregory E. Moore (05-0094-ER) 11 13 8 d) Robert L. Warder (05-0739-EA) 11 13 e) Ednardo Valentin (04-0584-ER) 11 13 9 f) Joi N. Robinson (06-0026-EA) 11 13 g) Gar L. Lee (05-0698-ER) 11 13 10 h) Steven R. Sparano (05-0312-ER) 11 13 i) Michael J. Inforzato (06-0018-EA) 11 13 11 j) Donald K. Larmore (05-0464-ER) 11 13 k) Carol R. Sulprizio (06-0029-EA) 11 13 12 4 Reconsideration of Commission final orders Due to Noncompliance of conditions therein: 13 a) William R. Anderson (05-0524-NC) 12 13 b) Michael Douglas (05-0691-NC) 12 13 14 c) Noland W. Graffeo (05-0693-NC) 12 13 d) Samuel A. Holt (05-0692-NC) 12 13 15 e) Patrick J. Kennedy (05-0709-NC) 12 13 f) Osvaldo Torres (05-0689-NC) 12 13 16 5 Petitions for early reapplication: a) James R. Chubb (05-0868-RA) 15 16 17 b) Terrie A. Mault (05-0827-RA) 16 18 Terrie A. Mault 16 18 6 Applications for suspension: a) Danny P. Andujar (06-0089-RC) 18 19 19 b) Jose F. Camacho-Hernandez 18 19 (a/k/a Jose Camacho) (06-0072-RC) 20 c) Kelly M. Moelius (06-0070-RC) 18 19 d) Yely Nunez-Jimenez (06-9909-RC) 18 19 21 7 Preliminary hearing concerning 19 20 the exclusion of Alex Lu (a/k/a 22 Alexander Luu, Alex Lun, Alex Luu) (06-0039-EL) 23 8 Petition of Harrah's Operating 20 23 Company, Inc., for approval of 24 transfers of securities pursuant to NJAC 19:43-2.98 and other relief (PRN 0180605) 25 4 1 AGENDA (CONTINUED) 2 PUBLIC MEETING NO. 06-03-01 March 1, 2006, 10:30 a.m. 3 ITEM PAGE VOTE 4 9 Amended petition of Morgan Stanley 24 26 & Co. and Morgan Stanley DW, Inc, 5 for a waiver of qualification pursuant to NJSA 5:22-85f (PRN 0330608) 6 10 Petition of Ace Gaming, LLC, and 26 28 American Properties Investorxz, Inc., 7 for a waiver of the qualification requirement for Adrian Tannian (PRN 02700602) 8 11 Consideration of the qualification 28 30 of Jon C. Wolfe as Senior Vice Presdident 9 and Chief Information Officer of RIH Resorts, LLC, and Executive Vice President 10 and Chief Information Officer of Colony RIH Holdings, Inc. 11 12 Petition of IGT to terminate the Harley 30 32 Davidson $.05 slot system and to transfer (36) 12 its Combination Jackpot to the progressive jackpot of Wheel of Fortune $.01 slot 13 system pursuant to NJAC 19:45-1.39(N) 32 34 13 Petition of IGT to terminate the Austin (37) 14 Powers $.05 slot system and to transfer and split its progressive jackpot to the 15 progressive jackpots of the TV Hits and the Megariches slot systems (PRN 0230605) 16 14 Consideration of the possession and 37 46 display of slot machines by Double D. 17 Gaming, Inc., pursuant to NJAC 19:46-1.22(b) Martin Caplan 39 18 15 Proposed adoption of amendments to NJAC 19:45-1.42 (remnoval of slot drop buckets 46 47 19 and slot drop boxes 16 Proposed adoption of amendment to 47 49 20 NJAC 19:45-1.48 (transport of keno drawers) 17 Proposed publication and temporary 49 50 21 adoption of amend,ments to NJAC 19:47-3.12, 4.12, and 7.11 (disclosed card dealt in 22 error for Baccarat-Punto Banco, Baccaret-Chemin De Fer, and Minibaccaret 23 18 Proposed adoption of amendment to NJAC 19:47-20.11 (alternative pay tables for 50 52 24 pair plus wager in three card poker) 25 5 1 E X H I B I T S : 2 ITEM NO. 1 DESCRIPTION ID EVD 3 4 EL-1 Remand for hearings 12 license 8 applications 5 EL-2 Grant 6 licenses 8 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 (Exhibits retained by Commission.) 23 24 25 6 1 (Public Meeting 06-03-01 was commenced at 2 10:30 a.m.) 3 MR. NANCE: I'd like to read an opening 4 statement: 5 This is to advise the general public that in 6 compliance with Chapter 231 of the Public Laws of 7 1975 entitled the "Open Public Meetings Act," the 8 New Jersey Casino Control Commission on October 9 13th, 2005, filed with the Secretary of State at the 10 State House in Trenton an annual meeting schedule. 11 On October 14th, copies were mailed to the Press of 12 Atlantic City, the Newark Star Ledger, and the 13 office of the clerk of Atlantic City. 14 Members of the press will be permitted to 15 take photographs, and we would ask that this be done 16 in a manner which is not disruptive or distracting 17 to the Commission. 18 The use of cellular telephones in the public 19 meeting room while the Commission is in session is 20 prohibited. 21 Any members of the public who wish to 22 address the Commission will be given the opportunity 23 to do so before the Commission adjourns for the day. 24 Please stand for the pledge of allegiance. 25 (The flag salute was recited.) 7 1 CHAIR KASSEKERT: Good morning. 2 MR. NANCE: Good morning. 3 Matters discussed in closed session were: 4 employee and enterprise license matters. 5 The Commissioners approved the February 6 15th, 2006, closed session minutes. 7 Litigation update regarding Warren Lackland 8 and Lewis M. Springer, Jr, versus State of New 9 Jersey, Casino Control Commission, and Gloria Ford 10 versus State of New Jersey, Casino Control 11 Commission and Linda M. Kassekert individually and 12 as Chair; and Tyrone J. Floyd versus Casino Control 13 Commssion, Sands Hotel and Casino. 14 Item No. 1, ratification of the minutes of 15 February 15th, 2006, public meeting. 16 COMMISSIONER FEDORKO: Motion to approve. 17 VICE CHAIR FRULIO: Second. 18 CHAIR KASSEKERT: The motion has been made 19 and seconded. All in favor? 20 (Ayes.) 21 CHAIR KASSEKERT: Opposed? 22 COMMISSIONER SOMMELING: Madame Chair, I 23 abstain. 24 CHAIR KASSEKERT: The motion carries. 25 Thank you. So noted. 8 1 MR. NANCE: Item No. 2, application for 2 employee and casino industry licenses. This agenda 3 item will be entered as Exhibit List 1 and 2. 4 Exhibit List 1 consists of 12 applications 5 for initial and/or renewal of casino key and casino 6 employee lisences. 7 The Division has objected to licensure. 8 VICE CHAIR FRULIO: Motion to remand for 9 hearings. 10 COMMISSIONER FEDORKO: Second. 11 CHAIR KASSEKERT: The motion has been made 12 and seconded. All in favor? 13 (Ayes.) 14 CHAIR KASSEKERT: Opposed? 15 (No response.) 16 CHAIR KASSEKERT: The motion carries. 17 MR. NANCE: Exhibit List 2 consists of six 18 applications for initial and/or renewal of casino 19 key and casino employee licenses. 20 Staff and the Division have recommended that 21 these licenses be granted. 22 VICE CHAIR FRULIO: Motion to grant 23 applications. 24 COMMISSIONER FEDORKO: Second. 25 CHAIR KASSEKERT: The motion has been made 9 1 and seconded. All in favor? 2 (Ayes.) 3 CHAIR KASSEKERT: Opposed? 4 (No response.) 5 CHAIR KASSEKERT: The motion carries. 6 MR. NANCE: For consideration is the 7 application of Regina M. Stasuk for a casino key 8 employee license and for qualification as Vice 9 President of Casino Marketing for Resort 10 International Hotel, Inc. 11 Staff and Division have recommended that 12 this application be granted. 13 VICE CHAIR FRULIO: Motion for granting key 14 license and for qualification. 15 COMMISSIONER FEDORKO: Second. 16 CHAIR KASSEKERT: Motion for -- oh. This is 17 a roll call vote. 18 MR. NANCE: Commissioner Sommeling? 19 COMMISSIONER SOMMELING: Yes. 20 MR. NANCE: Commissioner Epps? 21 COMMISSIONER EPPS: Yes. 22 MR. NANCE: Commissioner Fedorko? 23 COMMISSIONER FEDORKO: Yes. 24 MR. NANCE: Vice Chair Frulio? 25 VICE CHAIR FRULIO: Yes. 10 1 MR. NANCE: Chair Kassekert? 2 CHAIR KASSEKERT: Yes. 3 MR. NANCE: The record will reflect that the 4 motion is unanimous. 5 For consideration is the qualification of 6 Sean P. Evans in connection with the gaming related 7 casino service industry license of Aristocrat 8 Technologies, Inc., pursuant to NJAC 9 19:51-1.14B(h). 10 Staff and Division has recommended that this 11 application be granted. 12 VICE CHAIR FRULIO: Motion to find Sean P. 13 Evans plenarily qualified in connection the gaming 14 related casino service industry license of 15 Aristocrat Technologists, Inc. 16 COMMISSIONER FEDORKO: Second. 17 CHAIR KASSEKERT: The motion has been made 18 and seconded. All in favor? 19 (Ayes.) 20 CHAIR KASSEKERT: Opposed? 21 (No response.) 22 CHAIR KASSEKERT: The motion carries. 23 MR. NANCE: Item No. 3, stipulation of 24 settlement and consent agreement. When I call your 25 name, please come forward, stand behind this middle 11 1 table, spreading across the room so that you may be 2 seen: John A. Hanchar, Patricia Higgs, Gregory 3 Moore, Robert Warder, Ednardo Valentin, Joi 4 Robinson, Gar Lee, Steven Sparano, Michael 5 Inforzato, Donald Larmore, and Carlo Sulprizio. 6 CHAIR KASSEKERT: Has everyone who's name 7 been called come forward at this point? Okay. I'm 8 going to ask you that each state your name for the 9 record, starting with you, sir. 10 MR. INFORZATO: Michael Inforzato. 11 MS. ROBINSON: Joi Robinson. 12 MR. SULPRIZIO: Carl Sulprizio. 13 MR. LEE: Gar Lee. 14 MR. WARDER: Robert Warder. 15 CHAIR KASSEKERT: All right. In a moment 16 we're going to vote on the is stipulations that 17 you've agreed to with the Division of Gaming 18 Enforcement. I'm going to ask at this point if any 19 of you wish to be heard on your matter. You do not 20 have to say anything if you do not want to. Does 21 anyone wish to be heard? Okay. 22 Mr. Armstrong? 23 MR. ARMSTRONG: The Division has no nothing 24 to add. Just ask that you approve the stipulations. 25 CHAIR KASSEKERT: Thank you. Any questions? 12 1 COMMISSIONER FEDORKO: Motion to approve 2 stipulations. 3 VICE CHAIR FRULIO: Second. 4 CHAIR KASSEKERT: The motion has been made 5 and seconded. All in favor? 6 (Ayes.) 7 CHAIR KASSEKERT: Opposed? 8 (No response.) 9 CHAIR KASSEKERT: The motion carries. 10 Thank you very much for coming. Good luck. 11 MR. NANCE: Item No. 4, reconsideration of 12 Commission final orders due to noncompliance of 13 conditions therein: William Anderson, Michael 14 Douglas, Noland Graffeo, Samuel Holt, Patrick 15 Kennedy, and Osvaldo Torres. 16 Miss Frigen? 17 MS. FRIGEN: Let me ask whether any of these 18 individuals are present or represented? Okay. 19 Apparently, they are not here. 20 The Commission had granted each of these 21 individuals their license application with 22 conditions regarding reporting information to the 23 Division of Gaming Enforcement under certain time 24 frames, and each of these cases the individual has 25 failed to comply with the reporting requirement. 13 1 They also failed to attend a conference to discuss 2 the noncompliance issue. Consequently, these 3 matters are now before you for reconsideration. 4 CHAIR KASSEKERT: Thank you. 5 Mr. Armstrong? 6 MR. ARMSTRONG: Madame Chair, this is all 7 these people have had ample opportunity to avail 8 themselves of the due process you provide employees 9 and registrants and casino licensees. They've 10 ignored all kinds of correspondence and demands that 11 they appear in answer to either noncompliance with 12 prior stipulations of settlement and Commission 13 orders we'd ask that you vacate all those records 14 orders now. 15 CHAIR KASSEKERT: Thank you. 16 Any questions? 17 COMMISSIONER SOMMELING: Madame Chair, based 18 upon the noncompliance with the reporting conditions 19 set forth in their respective orders, vacate the 20 existing orders and deny the respective license 21 applications. 22 COMMISSIONER FEDORKO: Second. 23 CHAIR KASSEKERT: The motion has been made 24 and seconded. All in favor? 25 (Ayes.) 14 1 CHAIR KASSEKERT: Opposed? 2 (No response.) 3 CHAIR KASSEKERT: The motion carries. 4 MR. NANCE: Item No. 5, petition or early 5 reapplication for James Chubb and Terrie Mault. 6 Miss Frigen? 7 MS. FRIGEN: Let me ask whether Mr. Chubb is 8 present or represented? I don't believe I see him 9 in the meeting room. 10 For your consideration is his petition in 11 which he seeks permission to reapply early for a 12 license registration and/or a noncredential nonhotel 13 employment. By letters dated February 2nd and 21st 14 the Division has interposed an objection to the the 15 petition in its entirety. 16 CHAIR KASSEKERT: Thank you. 17 Mr. Armstrong? 18 MR. ARMSTRONG: Madame Chair, Commissioners, 19 you have our letter of February 2nd. On June 26th 20 of 2002 the Commission revoked Mr. Chubb's license 21 based on our complaint seeking revocation of that 22 credential because of his indictment for 23 disqualifying sexual assault charges. It is our 24 position, especially in light of the new arrest he's 25 had on December 15th of last year and that he is 15 1 still on probation, there is sufficient evidence on 2 the record before you this morning to provide the 3 relief that he's seeking here, that he be granted 4 any relief under his petition. 5 Thank you. 6 CHAIR KASSEKERT: Thank you. 7 Any questions? 8 COMMISSIONER FEDORKO: Motion to deny Mr. 9 Chubb permission to reapply early for a casino 10 employee license, a casino service employee 11 registration, and/or to obtain employment early as a 12 noncredential employee. 13 VICE CHAIR FRULIO: Second. 14 HAIR KASSEKERT: The motion has been made 15 and seconded. All in favor? 16 (Ayes.) 17 CHAIR KASSEKERT: Opposed? 18 (No response.) 19 CHAIR KASSEKERT: The motion carries. 20 MS. FRIGEN: Okay. Next we have Terrie 21 Mault. I believe she is present. 22 MS. MAULT: Yes. 23 MS. FRIGEN: I would ask Miss Mault to have 24 a seat at the table. 25 MS. MAULT: Hi. 16 1 MS. FRIGEN: Similar to the last matter -- 2 yes, that's fine. 3 For your consideration is Miss Mault's 4 petition in which she seeks permission to apply 5 early for a nonregistration or non -- in this case 6 by letter dated February 6th the Division interposed 7 no objection to the petition conditioned upon Miss 8 Mault addressing two financial obligations. 9 CHAIR KASSEKERT: Thank you. 10 Miss Mault is there anything you'd like to 11 say today? We need to have you sworn if you do. 12 Please rise, and we'll administer the oath. 13 TERRIE A. MAULT, having been duly sworn to 14 tell the truth, testified as follows: 15 MR. NANCE: Please state your name for the 16 record. 17 MS. MAULT: Terrie A. Mault. 18 CHAIR KASSEKERT: Okay. Miss Mault. Go 19 ahead. 20 MS. MAULT: I'm trying to get back into the 21 casino industry. I let my license lapse, and I had 22 some financial as well as legal obligations to take 23 care of. I've tried to address every issue that I 24 was denied for, and I'm currently a full-time 25 employee at the Wal-Mart up in Audobon, New Jersey, 17 1 and I would like to try to get my license back to 2 come back down here and deal. 3 CHAIR KASSEKERT: Okay. You understand the 4 conditions that the Division corresponded with you? 5 MS. MAULT: Absolutely. Yes. 6 CHAIR KASSEKERT: And you're going to comply 7 with those issues? 8 MS. MAULT: Oh, yes. 9 CHAIR KASSEKERT: Okay. Let me ask if any 10 of the Commissioners have any questions? 11 Mr. Armstrong? 12 MR. ARMSTRONG: Madame Chair, the Division 13 has nothing to nothing to add other than what's in 14 our letter of February 6th. 15 CHAIR KASSEKERT: Thank you. If there 16 aren't any questions, I'll entertain a motion. 17 VICE CHAIR FRULIO: Move that Miss Mault 18 permission to reapply early for a casino employee 19 license, a casino service employee registration 20 and/or to obtain employment early as a noncredential 21 hotel employee subject to the compliance to certain 22 financial obligations. 23 COMMISSIONER FEDORKO: Second. 24 CHAIR KASSEKERT: The motion has been made 25 and seconded. All in favor? 18 1 (Ayes.) 2 CHAIR KASSEKERT: Opposed? 3 (No response.) 4 CHAIR KASSEKERT: The motion carries. 5 Thank you very much for coming. Good luck. 6 MS. MAULT: Thank you. I appreciate it. 7 Thank you. 8 MR. NANCE: Item No. 6, application for 9 suspension for Danny Andujar, Jose 10 Camacho-Hernandez, Kelly Moelius, Yely 11 Muenz-Jimenez. 12 MS. FRIGEN: Let me ask whether any of these 13 individuals are present or represented? Apparently 14 not. 15 I remand this matter over to the Division 16 CHAIR KASSEKERT: Thank you. 17 Mr. Armstrong? 18 MR. ARMSTRONG: Madame Chair, Commissions, 19 you have our complaint seeking revocation of all of 20 these credentials. They've all been involved in 21 very serious offenses, some of them involving the 22 casino industry. We ask that while the application 23 is pending before you that you suspend any 24 credential. 25 CHAIR KASSEKERT: Thank you. 19 1 Any questions? 2 COMMISSIONER SOMMELING: Motion to suspend 3 credentials. 4 COMMISSIONER EPPS: Second. 5 CHAIR KASSEKERT: The motion has been made 6 and seconded. All in favor? 7 (Ayes.) 8 CHAIR KASSEKERT: Opposed? 9 (No response.) 10 CHAIR KASSEKERT: The motion carries. 11 MR. NANCE: Item No. 7, preliminary hearing 12 concerning the exclusion of Alex Lu. 13 Miss Frigen? 14 MS. FRIGEN: Let me ask for the record 15 whether Mr. Lu or his attorney, William Hughes, is 16 present today? I don't believe so. Mr. Hughes 17 indicated that Mr. Lu would likely not be contesting 18 the preliminary order, and apparently he is not here 19 today. 20 CHAIR KASSEKERT: Good morning. 21 MS. TANNENHAUS: Hi. The Division will rely 22 on its papers. We feel that we have more than 23 proved the reasonable possibility that Mr. Lu 24 satisfies the criteria for exclusion from at casino 25 industry and the casinos. He pled guilty to a 20 1 federal crime that is very serious punishable by 2 more than six months, and the inimicality speaks for 3 itself. The offense was prostitution -- was using a 4 telephone. We rest on the papers, and I'm here to 5 ask answer any questions you might have in this 6 case. 7 CHAIR KASSEKERT: Thank you. 8 Any questions from the Division? 9 COMMISSIONER FEDORKO: Motion to grant the 10 Division's request for preliminary order placing the 11 name of Mr. Lu on the exclusion list pending the 12 final outcome of the related petition for final 13 exclusion. 14 VICE CHAIR FRULIO: Second. 15 CHAIR KASSEKERT: The motion has been made 16 and seconded. All in favor? 17 (Ayes.) 18 CHAIR KASSEKERT: Opposed? 19 (No response.) 20 CHAIR KASSEKERT: The motion carries. 21 Thank you. 22 MS. FRIGEN: Yes. 23 MR. NANCE: Item No. 8, petition of Harrah's 24 Operating Company, Inc., for approval of transfers 25 of securities pursuant to NJAC 19:43-2.8 and other 21 1 relief. 2 Miss Wozniak? 3 MS. WOZNIAK: Good morning. Mr. Anderson is 4 here on behalf of the Petitioners. You have Miss 5 Turi's letter of February 16th and Mr. Marquez is 6 here for the Division. 7 CHAIR KASSEKERT: Thank you. 8 CHAIR KASSEKERT: Mr. Anderson? 9 MR. ANDERSON: Good morning, Madame Chair. 10 Top 'o the morning to you all, Commissioners. Nice 11 to see you again. 12 I've reviewed the resolution that Miss 13 Wozniak and her staff has prepared, it looks like we 14 have no objection to the conditions being interposed 15 in the resolution. I'll be glad to answer any 16 questions if I can for you. 17 CHAIR KASSEKERT: Let me ask if there are 18 any questions. 19 COMMISSIONER SOMMELING: No questions, 20 Madame Chair. 21 CHAIR KASSEKERT: Okay. Mr. Marquez? 22 MR. MARQUEZ: Indicated she has no problem 23 with it. 24 CHAIR KASSEKERT: Thank you. Any questions 25 from the Division? 22 1 COMMISSIONER FEDORKO: I just have a 2 question for Harrah's. If the Division of taxation 3 acts on this, are you prepared to pay the -- 4 whatever taxes are due? 5 MR. ANDERSON: Well, I assume that Harrah's 6 Corporation -- Harrah's Operating Company, Inc., is 7 actually the entity that's the taxable entity under 8 the consolidated returns that they -- and I assume 9 they will pay any taxes they lawfully have to pay 10 after all the appeals are exhausted. The issue just 11 hadn't come up because the returns haven't been 12 reviewed by the Division of Taxation yet. If that's 13 an answer to your question. 14 COMMISSIONER FEDORKO: It is. Thank you. 15 CHAIR KASSEKERT: I have a couple of remarks 16 I want to put on the record. This matter is before 17 us today pursuant to NJAC 19:43-2.8, which requires 18 that the Commission approve prior to the transfer of 19 securities such as the intercompany notes here at 20 issue. Our findings here today are of limited scope 21 and purpose. The point of requiring preapprovals is 22 to ensure that first the transferee is qualified 23 and, second, that the casino licensees will remain 24 financially stable after the transfer. I want to 25 make it clear today that it is neither our purpose 23 1 nor our intent to posit on the merits of Harrah's 2 interpretation of the state tax law. That is a 3 determination that is ultimately for the Division of 4 taxation as Commissioner Fedorko pointed out. 5 That said, I'll move to adopt the draft 6 resolution and approve the proposed transfer based 7 upon and to the extent set forth in the findings and 8 conditions therein. And I so moved. Is there a 9 second? 10 COMMISSIONER SOMMELING: Second. 11 CHAIR KASSEKERT: The motion has been made 12 and seconded. All in favor? 13 (Ayes.) 14 CHAIR KASSEKERT: Opposed? 15 (No response.) 16 CHAIR KASSEKERT: The motion carries. 17 Thank you. 18 MR. ANDERSON: Thank you. 19 MR. NANCE: Item No. 9, amended petition of 20 Morgan Stanley & Company and Morgan Stanley DW, 21 Inc., for a waiver of qualification pursuant no NJSA 22 5:12-85f. 23 Ms. Wozniak? 24 MS. WOZNIAK: Chair, Commissioners, Lynn 25 Kauffman is here on Petitioners and James Fogarty on 24 1 behalf of the Division. I have prepared a draft 2 resolution which has been distributed to the 3 parties. 4 CHAIR KASSEKERT: Thank you. Good morning, 5 Miss Kauffman. 6 MS. KAUFFMAN: Good morning. I've reviewed 7 the draft resolution and find it acceptable. 8 CHAIR KASSEKERT: Thank you. Mr. Fogarty? 9 MR. FOGARTY: Good morning, Commissioners. 10 James Fogarty for the Division. 11 I, too, have reviewed the draft resolution, 12 and this will be the one that was circulated Monday 13 morning, the 27th. And we have no objection to you 14 all passing that resolution. 15 I think it's important just to state 16 publicly for the record that Morgan Stanley never 17 based upon what we now know owned 20 percent of the 18 company of Trump. They own 20 percent of a certain 19 class of stock but, in fact, they never owned 20 20 percent of the company, actually 20.4 or 5. 21 Whatever the press reported on that. They, in fact, 22 owned roughly and maybe a particular over at a 23 certain point of time no more than 15 percent of the 24 voting securities of the company. And I know 25 there's some confusion, perhaps in your mind. Maybe 25 1 there wasn't. There was in mine and obviously in 2 the press as to what Morgan Stanley owned at a 3 certain point in time. And I just wanted -- thought 4 it would be helpful to point that out on the record. 5 CHAIR KASSEKERT: Thank you. I appreciate 6 your comments. I know how hard both you and Mary 7 Wozniak worked on this, and Mary's charged did not 8 go in vain in terms of researching this information 9 and breaking it down, so I appreciate that. 10 Let me ask if there are any questions. 11 COMMISSIONER SOMMELING: No questions, 12 Madame Chair. 13 COMMISSIONER SOMMELING: No questions, 14 Madame Chair. 15 VICE CHAIR FRULIO: Madame Chair, move to 16 approve the draft resolution and grant the requested 17 waiver of qualification to Morgan Stanley based upon 18 and to the extent set forth in the findings and 19 rulings and subject to the conditions contained in 20 the resolution. 21 COMMISSIONER FEDORKO: Second. 22 MR. NANCE: Commissioner Sommeling? 23 COMMISSIONER SOMMELING: Yes. 24 MR. NANCE: Commissioner Epps? 25 COMMISSIONER EPPS: Yes. 26 1 MR. NANCE: Commissioner Fedorko? 2 COMMISSIONER FEDORKO: Yes. 3 MR. NANCE: Vice Chair Frulio? 4 VICE CHAIR FRULIO: Yes. 5 MR. NANCE: Chair Kassekert? 6 CHAIR KASSEKERT: Yes. 7 MR. NANCE: The record will reflect that the 8 motion is unanimous. 9 MR. FOGARTY: Thank you. 10 MS. WOZNIAK: Thank you. 11 MR. NANCE: Item No. 10, petition of Ace 12 Gaming, LLC, and American Properties Investors, 13 Inc., for a waiver of the qualification requirement 14 for Adrian Tannian. 15 Miss Myers? 16 MS. MYERS: Good morning, Chair and 17 Commissioners. Dennis Daly is hear on behalf of the 18 petitioners and Ray Marquez on behalf of the 19 Division. I have circulated the draft resolution to 20 the parties. 21 CHAIR KASSEKERT: Mr. Daly? 22 MR. DALY: Good morning, Commissioners, 23 Chair. We've read the draft resolution and 24 certainly have no problem with it. It's a simple 25 matter involving a qualifier who may be wiaved. If 27 1 you agree with the Division of Gaming Enforcement, 2 we certainly would, too. 3 CHAIR KASSEKERT: Thank you. 4 Any questions for Mr. Daly? 5 COMMISSIONER SOMMELING: No questions, 6 Madame Chair. 7 CHAIR KASSEKERT: Mr. Marquez? 8 MR. MARQUEZ: We have no objection to it. 9 CHAIR KASSEKERT: Thank you. There are no 10 questions, I'll entertain a motion. 11 COMMISSIONER SOMMELING: Madame Chair, move 12 to adopt the draft resolution and waive the 13 qualification requirement pursuant to NJAC 5:85d(1) 14 as to Adrian Tannian in his capacity of Chief 15 Accounting Officer For American Properties 16 Investors, Incorporated. 17 CHAIR KASSEKERT: Is there a second? 18 COMMISSIONER FRULIO: Second. 19 COMMISSIONER FEDORKO: Roll call. 20 CHAIR KASSEKERT: I need a second first. 21 Now I'll take a roll call. 22 MR. NANCE: Commissioner Sommeling? 23 COMMISSIONER SOMMELING: Yes. 24 MR. NANCE: Commissioner Epps? 25 COMMISSIONER EPPS: Yes. 28 1 MR. NANCE: Commissioner Fedorko? 2 COMMISSIONER FEDORKO: Yes. 3 MR. NANCE: Vice Chair Frulio? 4 VICE CHAIR FRULIO: Yes. 5 MR. NANCE: Chair Kassekert? 6 CHAIR KASSEKERT: Yes. 7 MR. NANCE: The record will reflect that the 8 motion is unanimous. 9 CHAIR KASSEKERT: Thank you. 10 MR. DALY: Thank you. 11 MR. NANCE: Item No. 11, consideration of 12 the qualification of Jon Wolfe as Senior Vice 13 President and Chief Information Officer of RIH 14 Resorts, LLC, and Executive Vice President and Chief 15 Information Officer of Colony RIH Holdings, Inc. 16 Miss Delia? 17 MS. DELIA: Good morning, Chair, 18 Commissioners. John C. Wolfe found was temporarily 19 qualified by the Commission on June 20th, 2005. A 20 copy of the draft resolution has been distributed to 21 the parties for their review. 22 Pat wild is here on behalf of the 23 Petitioners and Ray Marquez is here on behalf of the 24 Division. 25 CHAIR KASSEKERT: Thank you, Miss Wild? 29 1 MS. WILD: Yes. Good morning, 2 Commissioners. Thank you. I have reviewed the 3 draft resolution, and we would ask that you adopt 4 the draft resolution as proposed. 5 CHAIR KASSEKERT: Thank you. 6 MR. MARQUEZ: And we have recommended to 7 grant qualification. 8 CHAIR KASSEKERT: Thank you. Any questions? 9 COMMISSIONER SOMMELING: No questions, 10 Madame Chair. 11 COMMISSIONER FEDORKO: Motion to adopt the 12 draft resolution and find Jon C. Wolfe qualified to 13 serve as Senior Vice President and Chief Information 14 Officer of RIH Resorts, LLC, and Executive Vice 15 President and Chief Exective Officer of Colony RIH 16 Holdings, Inc. 17 VICE CHAIR FRULIO: Second. 18 CHAIR KASSEKERT: That motion is made and 19 seconded this is a roll call vote. 20 MR. NANCE: Commissioner Sommeling? 21 COMMISSIONER SOMMELING: Yes. 22 MR. NANCE: Commissioner Epps? 23 COMMISSIONER EPPS: Yes. 24 MR. NANCE: Commissioner Fedorko? 25 COMMISSIONER FEDORKO: Yes. 30 1 MR. NANCE: Vice Chair Frulio? 2 VICE CHAIR FRULIO: Yes. 3 MR. NANCE: Chair Kassekert? 4 CHAIR KASSEKERT: Yes. 5 MR. NANCE: The record are will reflect that 6 the motion is unanimous. 7 MS. WILD: Thank you. 8 MR. NANCE: Item No. 12, petition of IGT to 9 terminate the Harley Davidson .05 slot system and to 10 transfer its combination jackpot to the progressive 11 jackpot of Wheel of Fortune .01 slot system, 12 pursuant to NJAC 19:45-1.39(N). 13 CHAIR KASSEKERT: Mr. Briliant? 14 MR. BRILIANT: Good morning, Madame Chair 15 and Commissioners. Mr. Previti is here on behalf of 16 IGT. Mr. Ficchi is here on behalf of the Division. 17 CHAIR KASSEKERT: Mr. Previti? 18 MR. PREVITI: Good morning, chair, 19 Commissioners. We're asking to transfer the Harley 20 Davidson game jackpot to the Wheel of Fortune penny. 21 There's a little difference here in the Harley game 22 actually has a prize of a meter amount plus either a 23 bike or 12,500. And for simplicity sake, we prefer 24 that the twelve-five be added to the meter rather 25 than offering the Wheel of Fortune penny game a 31 1 bike. 2 CHAIR KASSEKERT: Thank you. Any questions 3 for Mr. Previti? 4 COMMISSIONER SOMMELING: No questions, 5 Madame Chair. 6 CHAIR KASSEKERT: Mr. Ficchi? 7 MR. FICCHI: Thank you, Chair, 8 Commissioners. 9 You have the Division's letter drated by 10 Charles Kimmel, DAG, dated February 13th, where we 11 do not object to the transfer of the jackpot. It's 12 been our position on this one with regard to the 13 bike is that they can transfer the cash equivalent 14 of that bike and not have to actually transfer the 15 prize of the bike, but that's certainly in your 16 discretion as to how you want to handle that. 17 CHAIR KASSEKERT: Thank you, any questions? 18 COMMISSIONER SOMMELING: No questions, 19 Madame Chair. 20 COMMISSIONER SOMMELING: No questions, 21 Madame Chair. 22 CHAIR KASSEKERT: The bike or not the bike? 23 That is the question. 24 CHAIR KASSEKERT: Is there a motion? 25 COMMISSIONER FEDORKO: Motion to adopt the 32 1 draft resolution and approve the transfer of all 2 three elements of the combination progressive slot 3 jackpot subject to IGT's satisfaction of the 30-day 4 posting requirement in NJAC 19:45-1.39(n). 5 COMMISSIONER FEDORKO: Second. 6 COMMISSIONER EPPS: Second. 7 CHAIR KASSEKERT: The motion has been made 8 and seconded. All in favor? 9 (Ayes.) 10 CHAIR KASSEKERT: Opposed? 11 (No response.) 12 CHAIR KASSEKERT: The motion carries. 13 CHAIR KASSEKERT: Thank you. 14 MR. NANCE: Item No. 13, petition of IGT to 15 terminate the Austin Powers .05 slot system and to 16 transfer and split its progressive jackpot to the 17 progressive jackpot of the TV hits and Megariches 18 slot system. 19 Mr. Briliant? 20 MR. BRILIANT: Light. In this matter, 21 Commissioners there is a draft resolution that 22 circulated. There was not a draft resolution for 23 the prior matter, but I will certainly write one up 24 to comply with the motion that was made. Mr. 25 Previti and Mr. Ficchi are here. 33 1 CHAIR KASSEKERT: Thank you. 2 MR. PREVITI: Good morning again. This one 3 is very simple. It's taking the meter from the one 4 jackpot and putting it over to two others that 5 actually have all the -- all the elements. I'll be 6 happy to answer any questions. 7 CHAIR KASSEKERT: Thank you. 8 Mr. Ficchi? 9 MR. FICCHI: Thank you, Chair. The 10 Division's position is always more in our letter of 11 February 14th where we did not object to the 12 transfer of the jackpot. 13 CHAIR KASSEKERT: Thank you. Any questions? 14 (Mr. Briliant and Commissioner Epps 15 conferring.) 16 CHAIR KASSEKERT: Any questions? 17 COMMISSIONER SOMMELING: No questions, 18 Madame Chair. 19 VICE CHAIR FRULIO: Move to adopt the draft 20 resolution and approve IGT's request to transfer the 21 progressive slot machine jackpot subject to the 22 conditions in the resolution. 23 COMMISSIONER SOMMELING: Second. 24 CHAIR KASSEKERT: The motion has been made 25 and seconded. All in favor? 34 1 (Ayes.) 2 CHAIR KASSEKERT: Opposed? 3 (No response.) 4 CHAIR KASSEKERT: The motion carries. 5 COMMISSIONER EPPS: Madame Chair? 6 CHAIR KASSEKERT: Yes. 7 COMMISSIONER EPPS: May I make a motion for 8 reconsideration on Item No -- 9 COMMISSIONER FEDORKO: 12. 10 COMMISSIONER EPPS: 12? 11 CHAIR KASSEKERT: Is there a second for that 12 motion? 13 COMMISSIONER SOMMELING: Second. 14 COMMISSIONER FEDORKO: Second. 15 CHAIR KASSEKERT: I don't know. Do we need 16 to take a vote on motion to reconsideration? 17 CHAIR KASSEKERT: Yes, you did. You just 18 did. 19 CHAIR KASSEKERT: Okay. 20 The motion has been made and seconded. All 21 in favor? 22 (Ayes.) 23 CHAIR KASSEKERT: Opposed? 24 (No response.) 25 CHAIR KASSEKERT: The motion carries. 35 1 COMMISSIONER FEDORKO: Move to -- 2 COMMISSIONER EPPS: I will move in the 3 alternative that we waive of the requirements of -- 4 1.4 and M 4 and NJAC 19:45-1.9 N and a combination 5 progress jackpot be transferred in its entirety. 6 Further determine that the merchandise, motorcycle 7 prize need not be transferred and permit the 8 transfer of the progressive jackpot and the $12,500 9 alternative cash price subject to IGT's satisfaction 10 of the 30 day posting requirement in NJAC 19:45-1. 11 3.9(n), which would be more specific to the request 12 that was made. 13 CHAIR KASSEKERT: Right. 14 COMMISSIONER FEDORKO: Second. 15 CHAIR KASSEKERT: Is there a second? 16 COMMISSIONER FEDORKO: Second. 17 COMMISSIONER SOMMELING: Second. 18 CHAIR KASSEKERT: And just to clarify, this 19 means that the motorcycle does not get transferred; 20 correct? 21 COMMISSIONER FEDORKO: Correct. 22 MR. BRILIANT: Correct. 23 CHAIR KASSEKERT: All right. 24 The motion has been made and seconded. All 25 in favor? 36 1 (Ayes.) 2 CHAIR KASSEKERT: Opposed? 3 (No response.) 4 CHAIR KASSEKERT: The motion carries. 5 MR. PREVITI: Thank you. 6 MR. BRILIANT: Madame Chair, did you want to 7 make any comments to delegated authority resolutions 8 of the Austin Powers matter? 9 MR. NANCE: It's Item 13. 10 CHAIR KASSEKERT: It's Item 13. 11 CHAIR KASSEKERT: All right. Yes. Yes. I 12 would. Thank you. 13 With respect to the transper of the Austin 14 Power slot system, I should note that although the 15 specifications of the jackpots in question aren't 16 identical, they do meet for exceed the requirements 17 for a transfer under NJAC 19:45-3.39(n). And I see 18 no reason why similar proposed progressive jackpot 19 transfer shall not be subsequently approved by 20 delegated authority. 21 This is the first time this matter has been 22 brought before us, this is why we brought it to the 23 full Commission. Such delegated authority is 24 limited to jackpots with identical requirements 25 only, so I will on the record then, therefore, 37 1 direct our staff to prepare and presents to us an 2 amendment to delegate authority resolution to 3 approve progressive transsport transfers which 4 neither meet or exceed the requirements of NJAC 5 19:45-1.39a. thank you. 6 MR. PREVITI: Okay. 7 MR. BRILIANT: And we did take a vote on 8 Austin Powers? 9 CHAIR KASSEKERT: Yes. We did. We did take 10 a vote. 11 MR. PREVITI: Thank you. 12 MR. NANCE: Item No. 14, consideration of 13 the possession of display of slot machines by Double 14 D Gaming, Inc., pursuant to NJAC 19:46-1.22(b). 15 Mr. Briliant? 16 MR. BRILIANT: Okay. Madame Chair and 17 Commissioners, Mr. Martin Caplan is here on behalf 18 of Double D Gaming. He is the sole shareholder of 19 that corporation and, therefore, can speak on its 20 behalf, and Mr. Ficchi is here on behalf of the 21 Division. 22 CHAIR KASSEKERT: Thank you. Good morning. 23 MR. CAPLAN: Good morning. Members of the 24 Commission, thank you for the opportunity to appear 25 today and consider my request to display slot 38 1 machines at the 11th Annual New Jersey -- 2 CHAIR KASSEKERT: Let me just interrupt you 3 for one second. Are you an attorney, sir? 4 MR. CAPLAN: No, I am not. 5 CHAIR KASSEKERT: We need to swear you in. 6 MARTIN CAPLAN, having been duly sworn to 7 tell the truth, testified as follows: 8 CHAIR KASSEKERT: Thank you Mr. Caplan. You 9 can proceed. 10 MR. CAPLAN: My name is Martin Caplan. I'm 11 the president of Double D Gaming, Inc., located at 12 1146 South Delsea Drive, Vineland, New Jersey, 13 08360. I currently have licensing pending before 14 the Commission for a CSI license filed October 19th, 15 2005. And I've been approved by the Division of 16 Gaming Enforcement as a slot storage warehouse. On 17 December 21st, 2005. I have a copy of my letter 18 with me today. I was led to believe that display of 19 as yet unapproved machines at the amusement show was 20 permissible activity. I've complied with all the 21 conditions imposed by the legalized games of chance 22 control commission and have permission to display 23 from that agency. 24 However, having spoken with Mr. Briliant on 25 many occasions concerning slots, I did not believe 39 1 that information was totally accurate and operated 2 to contact Mr. Briliant for a more informed official 3 opinion from the Commission before proceeding. The 4 machines in question are four units are being 5 converted to which subtokens have had the hoppers 6 removed, pay out winning combinations in the form of 7 printed tickets that specify points and dispense 8 generic paper tickets. I have samples of all them 9 with me today. In addition the software that 10 controls the operation of the games, it has been 11 modified to affect a pay out ratio in excess of 950 12 percent. The machines on display will have coin 13 trays loaded with Double D brand tokens. There's no 14 charge imposed to play or evaluate the operation of 15 our machines. Further, the machines have been 16 converted to still stop units, do not use random 17 number generator. If tokens are inserted, and the 18 player fails to manual stop the wheels, the machine 19 time out and the time starts back the tokens revert 20 to play. The units on display will not be sold and 21 will be returned to me at the conclusion of the 22 show. Of the four units I plan to display. Wild 23 Cherry, Wild Bunch, Cherry 7, which I've submitting 24 applications for approval to Legalized Games Control 25 Commission and have copies of those applications 40 1 with me today along with proof of mailing of the 2 post office and certified receipts. This is my 3 understanding that Mr. Briliant can verify the 4 submissions to Legalized Games. I have certificates 5 of per admissability from legalized games for all 6 divergence of Wild Cherry and Cherry 7s with me 7 today as well. With all the pertinent facts, I'm 8 asking that the Commission grant my request to 9 display the four units at the amusement show. 10 I'll answer any questions that the 11 Commission may have about it. 12 CHAIR KASSEKERT: Thank you. Could you just 13 clarify, the protypes have all been submitted to 14 Legalized Games of Chance? 15 MR. BRILIANT: Yes. 16 CHAIR KASSEKERT: Okay. Very good. 17 Let me ask if there are any othere 18 questions. Okay. 19 MR. FICCHI: Madame Chair, I'm handling this 20 mad for DAG Kimmel who was on this matter initially. 21 The Commission as obviously jurisdiction in this 22 matter. The Division would recommend though that 23 the Commission not exercise that jurisdiction. The 24 machines that Mr. Caplan is referring to have been 25 machines that have been converted to a nonslot 41 1 machine status and, in fact, in other areas of the 2 in state, amusement parks that kind of thing where 3 they're under the jurisdiction. Legalized Games f 4 Chance, Commission of Legalized Games of Chance in 5 the state, which is the sister agency. We would 6 just recommend that even though the Commission can 7 exercise authority to grant specific approvals that 8 they not -- excuse me, that they not exercise that 9 jurisdiction in matters such as these. 10 CHAIR KASSEKERT: Thank you. 11 So what you're suggesting is that we retain 12 jurisdiction but determine that the permit is not 13 required or because everything has been submitted to 14 the Legalized Games of Chance Commission. 15 MR. FICCHI: Let Legalized Games of Chance 16 handle it basically but the Commission would always 17 have jurisdiction over any slot machine in the 18 state. 19 CHAIR KASSEKERT: Commissioner Epps, you 20 have a question? I mean, I guess the question is 21 the Legalized Game of Chance have not ruled on this 22 particular matter yet, but in the interim they are 23 seeking to be displayed somewhere other than where 24 there's a permit. That's where we're in a quandry 25 sort of caught in that in between cycle. Are you 42 1 suggesting that we permit or we not deal were a 2 permit on this issue because its -- it's not been 3 approved by games of chance yet? 4 MR. FICCHI: I would say that the 5 Commission-- the Division would say that first 6 Legalized Games of Chance should rule on the 7 qualification of these machines. 8 COMMISSIONER EPPS: Well, ordinarily that 9 would be the case except that we have got a time 10 crunch which makes this a more difficult matter. 11 There's something that needs to happen in the 12 interim. So we would either retain jurisdiction and 13 grant a permit or we would leave it up to games of 14 chance. If we leave it up to games of chance if 15 something occurs in the interim. 16 CHAIR KASSEKERT: Acts. 17 COMMISSIONER EPPS: Is that accurate. 18 MR. BRILIANT: Right. I think it's 19 important to note on the record, it's my 20 understanding that the Legalized Games of Chance 21 policy is that if an amusement device has been 22 submitted to that agency and accepted for review, 23 they would permit the display of that device at one 24 of these trade shows on the condition that it be not 25 be sold or used until it is actually finally 43 1 approved. 2 MR. FICCHI: Okay. 3 MR. BRILIANT: So. 4 COMMISSIONER EPPS: So we don't -- 5 MR. FICCHI: Under those conditions then. 6 COMMISSIONER EPPS: There's no permit 7 issued. 8 MR. BRILIANT: No. No. If the Commission 9 were to take the position that it -- that these 10 devices are now under legalized games jurisdiction, 11 Legalized Games has a policy and a procedure in 12 place for allowing their display, in this type of 13 situation, and we wouldn't have to issue a permit 14 because we would be saying that they would not be 15 under our jurisdiction in this situation. 16 As Mr. Ficchi noted, we still have 17 jurisdiction over slot machines. This thing is 18 somewhere between being a slot machine and being 19 something else. 20 CHAIR KASSEKERT: Right. 21 MR. BRILIANT: In the past we've always said 22 a slot machine is a slot machine until some other 23 agency finally rules on what it is. We're or 24 approves it as something else. We are somewhere in 25 between that. 44 1 COMMISSIONER EPPS: So this action today 2 will basically change that status and say that once 3 a slot machine is submitted to games of chance, it 4 is no longer a slot machine. 5 MR. BRILIANT: Right. We would be modifying 6 our previous procedure to this extent. 7 COMMISSIONER EPPS: Would that require a reg 8 change? 9 MR. BRILIANT: I don't believe so. But 10 that's something I could look into. 11 CHAIR KASSEKERT: But, of course, just by 12 virtue of the fact that the machine's been modified 13 it is -- I mean, it isn't a slot machine in the 14 purest sense because it's been modified. 15 MR. BRILIANT: Yeah. Legally it's still a 16 slot machine because of the way the statutes are 17 written. Even if you take a slot machine apart and 18 put all the parts in a box, it's still a slot 19 machine because you could put it back together, and 20 it would still work. It may not look like a slot 21 machine or operate like one, but theoretically at 22 least you could undue all of the modifications and 23 then you have what you started with. It's kind of 24 like a gun. You can take it apart, it's still a 25 gun. 45 1 CHAIR KASSEKERT: Any other questions? 2 CHAIR KASSEKERT: I just want to see if 3 counsel. 4 MR. BRILIANT: Okay. 5 CHAIR KASSEKERT: Anything else you need to 6 point out Mr. Briliant? 7 MR. BRILIANT: Only that this ruling, I 8 think sort of applies to this specific situation. 9 There may be other cases that people do, I don't 10 know what to slot machines and we would have to deal 11 with them on a case by case basis. But I think this 12 is a fairly novel and unique type situation so -- 13 VICE CHAIR FRULIO: So this wouldn't put us 14 in a bind when VLTs come out down the road. 15 MR. BRILIANT: VLT and amusement device -- 16 they both may be amusing -- but they are two 17 separate kinds of things. 18 CHAIR KASSEKERT: Okay. Any other 19 questions? 20 COMMISSIONER SOMMELING: No questions, 21 Madame Chair. 22 CHAIR KASSEKERT: Commission Fedorko? 23 COMMISSIONER FEDORKO: Madame Chair, I'm 24 going to make a motion that we determine that a 25 Commission display permit is not required because 46 1 the jurisdiction of the device now lies with 2 Legalized Games of Chance Commission. 3 VICE CHAIR FRULIO: Second. 4 CHAIR KASSEKERT: The motion has been made 5 and seconded. All in favor? 6 (Ayes.) 7 CHAIR KASSEKERT: Opposed? 8 COMMISSIONER EPPS: No. 9 CHAIR KASSEKERT: Commission Epps opposed. 10 The motion passes four to one. 11 Thank you very much. 12 MR. CAPLAN: Thank you. 13 MR. BRILIANT: Thank you. 14 MR. FICCHI: Thank you. 15 MR. NANCE: Item No. 15, proposed adoption 16 of amendments to NJAC 19:45-1.42. 17 Mr. Briliant? 18 MR. BRILIANT: Okay. The proposal before 19 you would decrease the frequency of mandatory coin 20 drops from once a month to no less than once every 21 two months for slot machines that are connected to 22 an approved gaming voucher system provided that the 23 casino licensee submits weekly estimated gross 24 revenue reports in the interim and pays the 25 estimated taxes thereon. If necessary or desired, a 47 1 casino licensee could always conduct coin drops more 2 frequently. 3 The notice of proposal in this matter was 4 published in the New Jersey Register on December 5 19th, 2005, and when the public comment period 6 expired on February 17th, 2006, one comment had been 7 received from the Division of Gaming Enforcement 8 which did not object to the proposal. 9 Now the matter is now before you for final 10 consideration. 11 CHAIR KASSEKERT: Thank you Mr. Briliant. I 12 would note that this is another in the continuing 13 wish list items. 14 Let me ask if there are any questions. 15 COMMISSIONER SOMMELING: Move to adopt as 16 published Madame Chair. 17 COMMISSIONER FEDORKO: Second. 18 CHAIR KASSEKERT: The motion has been made 19 and seconded. All in favor? 20 (Ayes.) 21 CHAIR KASSEKERT: Opposed? 22 (No response.) 23 CHAIR KASSEKERT: The motion carries. 24 MR. NANCE: Item number 16 proposed adoption 25 of amendment to NJAC 19:45-1.48. 48 1 Mr. Briliant? 2 MR. BRILIANT: This proposal would eliminate 3 the requirement of a security escort for the 4 transport of a keno drawer to the casino cage if the 5 keno drawer is transported in a locked cart and the 6 surveillance department is notified in advance of 7 the transfer. The notice of proposal was published 8 in the New Jersey Register on December 19th, 2005, 9 and when the public comment period expired on 10 February 17th, 2006, we had received one comment 11 from the Division which did not object to the 12 proposal. 13 The matter is now before you for final 14 consideration. 15 CHAIR KASSEKERT: Thank you. 16 Any questions? 17 COMMISSIONER SOMMELING: No questions, 18 Madame Chair. 19 VICE CHAIR FRULIO: Move to adopt as 20 published. 21 COMMISSIONER FEDORKO: Second. 22 CHAIR KASSEKERT: The motion has been made 23 and seconded. All in favor? 24 (Ayes.) 25 CHAIR KASSEKERT: Opposed? 49 1 (No response.) 2 CHAIR KASSEKERT: The motion carries. 3 MR. BRILIANT: Thank you very much. 4 MR. NANCE: Item No. 17, proposed 5 publication and temporary adoption of amendments to 6 NJAC 19:47-3.12, 4.12, 7.11. 7 Mr. Mamolen? 8 MR. MAMOLEN: Good morning, Madame Chair and 9 Commissioners. 10 This matter is before you for both 11 publication and temporary adoption of a modification 12 to an irregularity in the games of Baccaret-Punto 13 Banco, baccarat-Chemin De Fer, and Minibaccarat. In 14 essence, the situation occurs whenever a card is 15 disclosed in error that is not to be used in a round 16 of play. This happens in all three games, I'm told, 17 from time to time. And what the proposal would do 18 in essence would afford the licensee the option to 19 choose one of three alternatives in ceiling with the 20 irregularity. 21 CHAIR KASSEKERT: Thank you. 22 Any questions? 23 VICE CHAIR FRULIO: No. 24 COMMISSIONER SOMMELING: No questions, 25 Madame Chair. 50 1 COMMISSIONER FEDORKO: Motion to approve for 2 publication and temporary adoption. 3 VICE CHAIR FRULIO: Second. 4 CHAIR KASSEKERT: The motion has been made 5 and seconded. All in favor? 6 (Ayes.) 7 CHAIR KASSEKERT: Opposed? 8 (No response.) 9 CHAIR KASSEKERT: The motion carries. 10 MR. NANCE: Item No. 18 proposed adoption of 11 amendment to NJAC 19:47-20.11. 12 Mr. Mamolen? 13 MR. MAMOLEN: This matter is before you for 14 a final adoption. In essence it's the addition of 15 two alternative pay tables for the Pair Plus wager 16 and three card poker, both of the new alternative 17 pay tables have a slightly -- somewhat I should say 18 higher house advantage than the preexisting two. 19 There was one comment received during the 20 comment period that being from the Division of 21 Gaming Enforcement which did not interpose an 22 objection. 23 CHAIR KASSEKERT: Thank you. 24 Any questions? 25 COMMISSIONER SOMMELING: Move to adopt as 51 1 published. 2 COMMISSIONER FEDORKO: Second. 3 CHAIR KASSEKERT: The motion has been made 4 and seconded. All in favor? 5 (Ayes.) 6 CHAIR KASSEKERT: Opposed? 7 (No response.) 8 CHAIR KASSEKERT: The motion carries. 9 MR. MAMOLEN: Thank you. 10 MR. NANCE: In accordance with resolution 11 05-14-19 next closed session of the Commission shall 12 be held on Wednesday, March, 15th, 2006, 9:15 a.m. 13 in the Commission offices. 14 It's now time for the public participation 15 portion of the meeting 16 CHAIR KASSEKERT: Is there anyone in the 17 public that wishes to be heard? 18 Seeing no one, I'll close this motion 19 portion of the meeting and entertain a motion to 20 adjourn. 21 COMMISSIONER SOMMELING: Make a motion to 22 adjourn. 23 COMMISSIONER FEDORKO: Second. 24 CHAIR KASSEKERT: The motion has been made 25 and seconded. All in favor? 52 1 (Ayes.) 2 CHAIR KASSEKERT: Opposed? 3 (No response.) 4 CHAIR KASSEKERT: The motion carries. 5 (Public meeting 06-03-01 was adjourned at 6 11:10 a.m. ) 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 53 1 2 C E R T I F I C A T E 3 4 5 I, DARLENE SILLITOE, a Certified Shorthand 6 Reporter and Notary Public of the State of New 7 Jersey, certify that the foregoing is a true and 8 accurate transcript of the proceedings. 9 10 11 I further certify that I am neither 12 attorney, of counsel for, nor related to or employed 13 by any of the parties to the action; further that I 14 am not a relative or employee of any attorney or 15 counsel employed in this case; nor am I financially 16 interested in the action. 17 18 19 DARLENE SILLITOE CSR 20 License No XI01023 21 22 Dated: March 6, 2006 23 My Commission Expires on July 10, 2009 24 ID No 2062871 25