1 1 STATE OF NEW JERSEY 2 CASINO CONTROL COMMISSION 3 - - - - - - - - - - - - - - - - - - - 4 5 PUBLIC MEETING NO. 06-06-07 6 7 - - - - - - - - - - - - - - - - - - - 8 9 Wednesday, June 7, 2006 10 Atlantic City Commission Offices 11 Tennessee and Boardwalk 12 Atlantic City, New Jersey 08401 13 10:30 a.m. to 11:32 a.m. 14 15 16 Certified Shorthand Reporter: Christine Stanco 17 - - - - - - - - - - - - - - - - - - - - - - - - - 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 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 WILLIAM T. SOMMELING, COMMISSIONER MICHAEL A. FEDORKO, COMMISSIONER 5 PRESENT FOR THE CASINO CONTROL COMMISSION: 6 DARYL W. NANCE, ADMINISTRATIVE ANALYST 7 OFFICE OF THE GENERAL COUNSEL: DIANNA W. FAUNTLEROY, GENERAL COUNSEL/ 8 EXECUTIVE SECRETARY STEVEN M. INGIS, ASSISTANT GENERAL COUNSEL 9 CAROLE R. JACOBSON, SENIOR COUNSEL ROBERT BARNEY, SENIOR COUNSEL 10 THERESA M. NAGENGAST, SENIOR 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: DEPUTY ATTORNEYS GENERAL: 14 TIMOTHY FICCHI RAYMOND MARQUEZ 15 NORMA STANCIL LANE STEBBINS 16 BEVERLY TANENHAUS 17 18 19 20 21 22 23 24 25 3 1 A P P E A R A N C E S: 2 ITEM 3 STEVEN M. INGIS, ASSISTANT GENERAL COUNSEL 3 RAYMOND MARQUEZ, DIVISION STAFF PATRICIA M. WILD, ESQ. 4 FOR: RESORTS INTERNATIONAL HOTEL, INC. AND RIH ACQUISITIONS NJ, LLC 5 ITEM 4 NORMA STANCIL, DIVISION STAFF ITEM 5 CAROLE R. JACOBSON, SENIOR COUNSEL 6 BEVERLY TANENHAUS, DIVISION STAFF JOSEPH A. FUSCO, ESQ. 7 FOR: TRUMP TAJ MAHAL ASSOCIATES COOPER LEVENSON 8 BY: LLOYD LEVENSON, ESQ. FOR: BENNILEE ("FLOYD") REAVES 9 ITEM 6 THERESA M. NAGENGAST, SENIOR COUNSEL LANE STEBBINS, DIVISION STAFF 10 ITEM 7 BERNADETTE T. FRIGEN, PROGRAM SUPERVISOR NORMA STANCIL, DIVISION STAFF 11 ITEM 8 BERNADETTE T. FRIGEN, PROGRAM SUPERVISOR NORMA STANCIL, DIVISION STAFF 12 ITEM 9 SANDRA DELIA, LEGAL SUPPORT SPECIALIST RAYMOND MARQUEZ, DIVISION STAFF 13 DENNIS DALY, ESQ. FOR: ACE GAMING, LLC AND AMERICAN 14 PROPERTY INVESTORS, INC. ITEM 10 SANDRA DELIA, LEGAL SUPPORT SPECIALIST 15 RAYMOND MARQUEZ, DIVISION STAFF DENNIS DALY, ESQ. 16 FOR: ACE GAMING, LLC AND AMERICAN PROPERTY INVESTORS, INC. 17 ITEM 11 SANDRA DELIA, LEGAL SUPPORT SPECIALIST RAYMOND MARQUEZ, DIVISION STAFF 18 KAREN M. WOSNACK, ESQ. FOR: HARRAH'S OPERATING COMPANY, INC. 19 ITEM 12 SANDRA DELIA, LEGAL SUPPORT SPECIALIST ITEM 13 SETH H. BRILIANT, SENIOR COUNSEL 20 ITEM 14 SETH H. BRILIANT, SENIOR COUNSEL TIMOTHY FICCHI, DIVISION STAFF 21 JOSEPH A. CORBO, JR., ESQ. FOR: MARINA DISTRICT DEVELOPMENT 22 COMPANY, LLC, D/B/A BORGATA HOTEL CASINO WITNESSES: LARRY MULLIN 23 AUGGIE CIPOLLINI ITEM 15 SETH H. BRILIANT, SENIOR COUNSEL 24 TIMOTHY FICCHI, DIVISION STAFF ITEM 16 LON E. MAMOLEN, SENIOR COUNSEL 25 ITEM 17 LON E. MAMOLEN, SENIOR COUNSEL ITEM 18 LON E. MAMOLEN, SENIOR COUNSEL 4 1 A P P E A R A N C E S: (CONTINUED) 2 ITEM 19 SANDRA DELIA, LEGAL SUPPORT SPECIALIST RAYMOND MARQUEZ, DIVISION STAFF 3 PATRICIA M. WILD, ESQ. FOR: RIH ACQUISITIONS NJ, LLC 4 ITEM 20 ROBERT BARNEY, SENIOR COUNSEL NORMA STANCIL, DIVISION STAFF 5 PUBLIC PARTICIPATION: FRANKLIN JOHNSON 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 5 1 AGENDA PUBLIC MEETING NO. 06-06-07 2 June 7, 2006, 10:30 a.m. ITEM DESCRIPTION PAGE VOTE 3 1 Ratification of the minutes of May 17, 2006 public meeting 11 11 4 2 Applications for employee and casino service industry licenses: 5 Remand for hearings 19 license applications for initial and/or 6 renewal of casino key and casino employee licenses 12 12 7 Remand for hearing CSI license applications of R-2000 Architectural 8 Millwork, Inc. 12 13 Grant 11 applications for initial 9 and/or renewal of casino key and casino employee licenses 13 13 10 Grant CSI license application of Massett Bertino Joint Venture 11 (renewal) 14 14 Grant CSI licenses to Yvette M. 12 Champagne, Kevin M. Brewster, Daurean Sloan, Dean A. Ehrlich, Larry J. Pacey 13 and Edward W. Rabin, Jr. of WMS Gaming, Inc. 14 15 14 Grant applications for initial and renewal of casino key employee licenses 15 and for qualification to: Carolyn Chun, Vice President of Customer Development/ 16 Slots for Adamar of New Jersey, Inc.; Martin R. Goldman, Vice President of 17 Marketing for Marina Associates and Atlantic City Showboat, Inc.; William P. 18 King, Jr., Director of Internal Audit for ACE Gaming, LLC; Daniel L. Nita, Senior 19 Vice and General Manager for Boardwalk Regency Corporation; David J. Polizzi, 20 Vice President of Casino Operations for Trump Plaza Associates, LLC 15 16 21 3 Joint Petition of Resorts International Hotel, Inc. and RIH Acquisitions NJ, LLC 22 for the issuance of a temporary casino key employee license to Gary C. DiBartolomeo 23 pursuant to N.J.S.A. 5:12-89(e) and to permit him pursuant to N.J.A.C. 19:43-2.6 24 to assume the duties and exercise the powers of Vice President of National 25 Marketing without first having been found qualified (PRN 1220606) 17 18 6 1 ITEM DESCRIPTION PAGE VOTE 4 Stipulations of settlement and consent 2 agreements: A) John R. Hall, Jr. (Not present) 3 (05-0733-EA) 18 20 B) Carl T. Pickens (Not present) 4 (05-0451-ER) 18 20 C) James Weatherford (05-0468-ER) 18 20 5 D) Colleen J. Kelly (Not present) (05-0176-RC) 18 20 6 E) Richard P. Stropoli (06-0049-RC) 18 20 F) Eddie M. Wilson (Not present) 7 (04-0174-EA) 18 20 G) Michael G. Anthony (Not present) 8 (05-0854-ER) 18 20 H) Dawn L. Tennant (05-0853-ER) 18 20 9 I) Frank J. Varra (Not present) (06-0198-ER) 18 20 10 J) Peter R. Arbona, Jr.(06-0095-RC) 18 20 K) Miosotis Colon (a/k/a Miosotis-Colon- 11 Afanador, Alejandra Zendejas) (05-0877-RC) 18 20 12 L) Tiffany J. Mixson (a/k/a Tiffani Mixson) (Not present)(05-0671-EA) 18 20 13 M) Douglas A. Pluck (Not present) (05-0345-ER) 18 20 14 N) Dante Y. Coleman (05-0653-RC) 18 20 5 Stipulations of Settlement in State 15 vs. Trump Taj Mahal Associates (d/b/a Trump Taj Mahal Casino Resort), 16 Bennilee ("Floyd") Reaves, Francesco ("Sal") Macrina, and Marie Campolo 17 (05-0282-VC) 20 23 6 Initial decision of David H. Morse 18 for removal from the exclusion list (05-0423-MI) 24 26 19 7 Petitions for early reapplication: A) John C. Clark (06-0135-RA) 28 31 20 B) Donald J. Mooney (06-0113-RA) 28 32 C) Kim M. Smith (06-0116-RA) 28 34 21 8 Applications for Suspension: A) Terry L. Gay (Not present) 22 (06-0240-RC) 34 35 B) Aldo T. Lapaix (Not present) 23 (06-0238-RC) 34 35 C) Jeury J. Sierra (Not present) 24 (06-0236-RC) 34 35 D) Wendy G. Moradel-Lopez 25 (Not present) (06-0239-RC) 34 35 E) Jayme L. White (Not present) 34 35 7 1 ITEM DESCRIPTION PAGE VOTE (06-0237-RC) 2 9 First amended petition of ACE Gaming, LLC and American Property Investors, Inc. 3 requesting permission for Vincent James Intrieri to perform the duties and 4 exercise the powers of a Member of the Board of Directors of American Property 5 Investors, Inc. pending plenary qualification (PRN 1240604) 35 37 6 10 Petition of ACE Gaming, LLC, American Properties Investors, Inc., and American 7 Real Estate Partners, L.P., requesting permission for Hillel Moerman to be 8 permitted to perform the duties and exercise the powers of Vice President 9 of Strategic Planning for American Real Estate Partners, L.P., pending plenary 10 qualification (PRN 1280602) 37 39 11 Consideration of the qualification of 11 Charles B. Danner to serve as Vice President of Design and Construction 12 for Harrah's Operating Company, Inc., Eastern Division 39 40 13 12 Proposed readoption of N.J.A.C. 19:47 (Rules of the Game) 43 43 14 13 Proposed adoption of amendments to N.J.A.C. 19:41-9.8 (Gaming Related Casino 15 Service Industry License Fee) 43 45 14 Petitions of Marina District Development 16 Company, LLC (d/b/a Borgata Hotel Casino) for amendments to its certificate of 17 operation and casino hotel alcoholic beverage license to permit a reconfiguration 18 and expansion of its gaming floor; and a reconfiguration of its hard and soft 19 count rooms (PRN 1070617, 1160604) 45 59 15 Petition of Olympia Dice; Trump Taj Mahal 20 Associates (d/b/a Trump Taj Mahal Casino Resort); and Greate Bay Hotel and Casino, 21 Inc. (t/a Sands Hotel and Casino), for approval of "Lonestar Craps" (Additional 22 Wagers in the Authorized Games of Craps and Mini-Craps) (PRN 1080601) 59 62 23 16 Proposed adoption of amendment to N.J.A.C. 19:45-1.40D (Division Inspection of Slot 24 Machine Jackpots) 63 64 17 Proposed adoption of amendment to N.J.A.C. 25 19:46-1.19B (Pai Gow Tile Changing Frequency) 64 65 8 1 ITEM DESCRIPTION PAGE VOTE 18 Proposed temporary adoption of amendments 2 and new rule for bad beat payouts in poker; authorization of rulemaking 3 experiment for bad beat payouts pursuant to N.J.S.A. 5:12-69e 65 67 4 19 Petition of RIH Acquisitions NJ, LLC for permission to allow Kevin S. Smith 5 to perform the duties and exercise the powers of Regional Vice President of 6 Litigation for RIH Resorts, LLC, pending plenary qualification (PRN 1380609) 41 42 7 20 Motion for relief to reinstate license of Patrick J. Kennedy (06-0257-NC) 26 29 8 Public Participation 67 74 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 9 1 I N D E X 2 3 WITNESS PAGE 4 ITEM 3 5 LARRY J. MULLIN 49 6 AUGGIE CIPOLLINI 55 7 8 9 10 E X H I B I T S 11 12 NUMBER DESCRIPTION EVD 13 ITEM 2 14 EL-1 Remand for hearings 19 license 15 applications 12 16 EL-2 Grant 11 license applications 12 17 18 19 20 21 (Exhibits retained by Commission.) 22 23 24 25 10 1 (Public Meeting No. 06-06-07 commenced 2 at 10:30 a.m.) 3 MR. NANCE: Good morning. I'd like to 4 read an opening statement. 5 This is to advise the general public 6 that in Compliance with Chapter 231 of the Public 7 Laws of 1975 entitled the "Open Public Meetings 8 Act", the New Jersey Casino Control Commission on 9 October 13th, 2005 filed with the Secretary of 10 State at the State House in Trenton, an Annual 11 Meeting Schedule. On October 14th, copies were 12 mailed to the Press of Atlantic City, the Newark 13 Star Ledger and the Office of the Clerk of 14 Atlantic City. 15 Members of the press will be permitted 16 to take photographs, and we ask that this be done 17 in a manner which is not disruptive or 18 distracting to the Commission. 19 The use of cellular telephones in the 20 Public Meeting Room while the Commission is in 21 session is prohibited. 22 Any member of the public who wish to 23 address the Commission will be given the 24 opportunity to do so before the Commission 25 adjourns for the day. 11 Item No. 1 1 Please stand for the Pledge of 2 Allegiance. 3 (Whereupon, the Pledge of Allegiance was 4 executed.) 5 CHAIR KASSEKERT: Good morning. 6 MR. NANCE: Good morning. The matters 7 discussed in closed session were employee and 8 enterprise license matters. The Commission 9 approved the May 17th, 2006 closed session 10 minutes; litigation update regarding Warren 11 Lackland and Lewis M. Springer, Jr. versus State 12 of New Jersey, Casino Control Commission; appeal 13 in application of Interstate Drywall Corporation, 14 et al; and Gloria Ford versus State of New 15 Jersey, Casino Control Commission, et al. 16 Item No. 1, ratification of the minutes 17 of May 17th, 2006 public meeting. 18 COMMISSIONER FEDORKO: Motion to approve. 19 VICE CHAIR FRULIO: Second. 20 CHAIR KASSEKERT: The motion has been 21 made and seconded. All in favor? 22 (Aye.) 23 COMMISSIONER SOMMELING: Abstained. 24 CHAIR KASSEKERT: Please note for the 25 record Commissioner Sommeling abstained. 12 Item No. 2 1 MR. NANCE: Item No. 2, applications for 2 employee and casino service industry licenses. 3 This agenda item will be entered as Exhibit Lists 4 1 and 2. 5 (Whereupon, Exhibit Lists 1 and 2 were 6 entered into evidence.) 7 MR. NANCE: Exhibit List 1 consists of 19 8 applications for initial and/or renewal of casino 9 key and casino employee licenses. The Division 10 has objected to licensure. 11 VICE CHAIR FRULIO: Motion to remand for 12 hearings. 13 COMMISSIONER FEDORKO: Second. 14 CHAIR KASSEKERT: The motion has been 15 made and seconded. All in favor? 16 (Aye.) 17 CHAIR KASSEKERT: Opposed? 18 (No response.) 19 CHAIR KASSEKERT: The motion carries. 20 (The Commission members vote unanimously 21 in favor of the motion.) 22 MR. NANCE: For consideration is the 23 casino service industry license application of 24 R-2000 Architectural Millwork, Inc. The Division 25 has objected to this application. 13 Item No. 2 1 VICE CHAIR FRULIO: Motion to remand for 2 a hearing. 3 COMMISSIONER FEDORKO: Second. 4 CHAIR KASSEKERT: The motion has been 5 made and seconded. All in favor? 6 (Aye.) 7 CHAIR KASSEKERT: Opposed? 8 (No response.) 9 CHAIR KASSEKERT: The motion carries. 10 (The Commission members vote unanimously 11 in favor of the motion.) 12 MR. NANCE: Exhibit List 2 consists of 11 13 applications for initial and/or renewal of casino 14 key and casino employee licenses. Staff and the 15 Division have recommended that these licenses be 16 granted. 17 VICE CHAIR FRULIO: Motion to grant 18 applications. 19 COMMISSIONER FEDORKO: Second. 20 CHAIR KASSEKERT: The motion has been 21 made and seconded. All in favor? 22 (Aye.) 23 CHAIR KASSEKERT: Opposed? 24 (No response.) 25 CHAIR KASSEKERT: The motion carries. 14 Item No. 2 1 (The Commission members vote unanimously 2 in favor of the motion.) 3 MR. NANCE: For consideration is the 4 casino service industry license renewal 5 application pursuant to N.J.S.A. 5:12-92(c) for 6 Massett Bertino Joint Venture. Staff and the 7 Division have recommended that this application 8 be granted. 9 VICE CHAIR FRULIO: Motion to grant 10 application. 11 COMMISSIONER FEDORKO: Second. 12 CHAIR KASSEKERT: The motion has been 13 made and seconded. All in favor? 14 (Aye.) 15 CHAIR KASSEKERT: Opposed? 16 (No response.) 17 CHAIR KASSEKERT: The motion carries. 18 (The Commission members vote unanimously 19 in favor of the motion.) 20 MR. NANCE: For consideration is the 21 qualification of Yvette M. Champagne, Kevin M. 22 Brewster, Daurean Sloan, Dean A. Ehrlich, Larry 23 J. Pacey and Edward Rabin, Jr. in connection with 24 the gaming related casino services industry 25 license of WMS Gaming, Inc. pursuant to N.J.A.C. 15 Item No. 2 1 19:51-1.14B(h). 2 Staff and the Division have recommended 3 that these applications be granted. 4 VICE CHAIR FRULIO: Motion to find 5 qualifier Champagne, Brewster, Sloan, Ehrlich, 6 Pacey and Rabin, Jr. plenarily qualified in 7 connection with the gaming related casino service 8 industry license of WMS Gaming, Inc. 9 COMMISSIONER FEDORKO: Second. 10 CHAIR KASSEKERT: The motion has been 11 made and seconded. All in favor? 12 (Aye.) 13 CHAIR KASSEKERT: Opposed? 14 (No response.) 15 CHAIR KASSEKERT: The motion carries. 16 (The Commission members vote unanimously 17 in favor of the motion.) 18 MR. NANCE: For consideration are the 19 following applications for initial and renewal of 20 casino key employee licenses and for 21 qualification: Carolyn Chun, Vice President of 22 Customer Development/Slots for Adamar of New 23 Jersey, Inc.; Martin R. Goldman, Vice President 24 of Marketing for Marina Associates and Atlantic 25 City Showboat, Inc.; William P. King, Jr., 16 Item No. 3 1 Director of Internal Audit for ACE Gaming, LLC; 2 Daniel Nita, Senior Vice President and General 3 Manager for Boardwalk Regency Corporation; and 4 David J. Polizzi, Vice President of Casino 5 Operations for Trump Plaza Associates, LLC. 6 Staff and the Division have recommended 7 that these applications be granted. 8 VICE CHAIR FRULIO: Motion to grant 9 initial and renewal of key licenses and for 10 qualification. 11 COMMISSIONER FEDORKO: Second. 12 CHAIR KASSEKERT: The motion has been 13 made and seconded. This is a roll call vote. 14 MR. NANCE: Commissioner Sommeling? 15 COMMISSIONER SOMMELING: Yes. 16 MR. NANCE: Commissioner Epps? 17 COMMISSIONER EPPS: Yes. 18 MR. NANCE: Commissioner Fedorko? 19 COMMISSIONER FEDORKO: Yes. 20 MR. NANCE: Vice Chair Frulio? 21 VICE CHAIR FRULIO: Yes. 22 MR. NANCE: Chair Kassekert? 23 CHAIR KASSEKERT: Yes. 24 MR. NANCE: The record will reflect that 25 the motion is unanimous. 17 Item No. 3 1 Item No. 3, Petition No. 1220606 of 2 Resorts International Hotel, Inc. and RIH 3 Acquisitions New Jersey, LLC, is requesting the 4 issuance of a temporary casino key employee 5 license to Gary C. DiBartolomeo pursuant to 6 N.J.S.A. 5:12-89(e) and to permit him, pursuant 7 to N.J.A.C. 19:43-2.6, to assume the duties and 8 exercise the powers of Vice President of National 9 Marketing without first having been found 10 qualified. 11 MR. INGIS: I note the presence of Pat 12 Wild and Ray Marquez; Ray Marquez on behalf of 13 the Division, and Pat Wild on behalf of Resorts 14 International Hotel. I don't know if Pat wants 15 to say something. 16 MS. WILD: Just good morning to everyone. 17 I thank you for your consideration of this 18 petition, and I ask that you grant the relief 19 sought therein. 20 CHAIR KASSEKERT: Thank you. 21 Mr. Marquez? 22 MR. MARQUEZ: Indeed, the Division has 23 indicated that it has no objection to the relief 24 being sought. 25 CHAIR KASSEKERT: Thank you. 18 Item No. 4 1 Any questions? 2 VICE CHAIR FRULIO: Motion to grant 3 temporary key license and qualification subject 4 to compliance with the license conditions imposed 5 by the Commission Order dated March 16th, 2005. 6 COMMISSIONER FEDORKO: Second. 7 CHAIR KASSEKERT: The motion has been 8 made and seconded. This is a roll call vote. 9 MR. NANCE: Commissioner Sommeling? 10 COMMISSIONER SOMMELING: Yes. 11 MR. NANCE: Commissioner Epps? 12 COMMISSIONER EPPS: Yes. 13 MR. NANCE: Commissioner Fedorko? 14 COMMISSIONER FEDORKO: Yes. 15 MR. NANCE: Vice Chair Frulio? 16 VICE CHAIR FRULIO: Yes. 17 MR. NANCE: Chair Kassekert? 18 CHAIR KASSEKERT: Yes. 19 MR. NANCE: Let the record reflect the 20 motion is unanimous. 21 MS. WILD: Thank you. 22 MR. NANCE: Item No. 4, stipulations of 23 settlement and consent agreements. 24 When I call your name, please come 25 forward, spreading across the room so that you 19 Item No. 4 1 may be seen: John Hall, Jr., Carl Pickens, James 2 Weatherford, Colleen Kelly, Richard Stropoli, 3 Eddie Wilson, Michael Anthony, Dawn Tennant, 4 Frank Varra, Peter Arbona, Miosotis Colon, 5 Tiffany Mixson, Douglas Pluck and Dante Coleman. 6 CHAIR KASSEKERT: Has everyone whose name 7 has been named come forward at this time? 8 Okay, thank you. I'm going to ask that 9 you each state your name for the record, starting 10 with you. 11 MS. TENNANT: Dawn Tennant. 12 MR. WEATHERFORD: James Weatherford. 13 MR. STROPOLI: Richard Stropoli. 14 MR. ARBONA: Peter Arbona. 15 MS. COLON: Miosotis Colon. 16 MR. COLEMAN: Dante Coleman. 17 CHAIR KASSEKERT: In a moment, we're 18 going to vote on your stipulation which you've 19 agreed to with the Division of Gaming 20 Enforcement. 21 I'm going to ask at this point if any of 22 you wish to be heard on your matter. You do not 23 have to say anything if you don't want to. 24 Does anybody wish to be heard? 25 (No response.) 20 Item No. 5 1 CHAIR KASSEKERT: Okay. Miss Stancil 2 from the Division? 3 MS. STANCIL: We would ask that you 4 approve the stipulations. 5 CHAIR KASSEKERT: Thank you. 6 Any questions on the stipulations? 7 COMMISSIONER SOMMELING: Madam Chair, 8 move to approve the stipulations. 9 COMMISSIONER FEDORKO: Second. 10 CHAIR KASSEKERT: The motion has been 11 made and seconded. All in favor? 12 (Aye.) 13 CHAIR KASSEKERT: Opposed? 14 (No response.) 15 CHAIR KASSEKERT: The motion carries. 16 (The Commission members vote unanimously 17 in favor of the motion.) 18 CHAIR KASSEKERT: Thank you for coming, 19 good luck. 20 MR. NANCE: Item No. 5, stipulations of 21 settlement in State versus Trump Taj Mahal 22 Associates, Bennilee Reaves, Francesco Macrina, 23 and Marie Campolo. 24 Miss Jacobson? 25 CHAIR KASSEKERT: Miss Jacobson, before 21 Item No. 5 1 you proceed, let me just congratulate you. I 2 know that you will be leaving us shortly and will 3 be retiring, and I want to thank you for your 25 4 years of state service and all your efforts on 5 behalf of this Commission and the State of New 6 Jersey. 7 So congratulations and best of luck. 8 (Applause.) 9 CHAIR KASSEKERT: Now, you can proceed. 10 MS. JACOBSON: Good morning, Chair, 11 Commissioners. Beverly Tanenhaus is here on 12 behalf of the Division, Joe Fusco is here on 13 behalf of Taj, Lloyd Levenson is here on behalf 14 of Floyd Reaves, and Marie Campolo is here today 15 representing herself. 16 CHAIR KASSEKERT: Is she here? 17 Thank you. 18 Miss Jacobson, you want to proceed first 19 on the stipulations? 20 MS. JACOBSON: Before you is one 21 complaint which generated three separate 22 stipulations of settlement between the Division 23 and Taj, the Division and Floyd Reaves, and the 24 Division and Marie Campolo, all involving various 25 violations of the credit regulation which if 22 Item No. 5 1 approved will result in a total civil penalty of 2 $60,000 against Taj, total civil penalty in the 3 amount of $2500 against Floyd Reaves and a two 4 day suspension without pay within 30 days after 5 Commission approval of the stipulation of 6 settlement, and a total civil penalty in the 7 amount of $300 against Marie Campolo and a two 8 day suspension without pay within 30 days after 9 Commission approval of this stipulation of 10 settlement. 11 CHAIR KASSEKERT: Okay. Mr. Fusco? 12 MR. FUSCO: The stipulation sets forth 13 everything that we have reached by way of 14 agreement with the Division, and we would urge 15 the Commission to consider and approve the 16 stipulation. 17 CHAIR KASSEKERT: Mr. Levenson? 18 MR. LEVENSON: Same. 19 CHAIR KASSEKERT: Okay. Miss Campolo? 20 MS. CAMPOLO: The same. 21 CHAIR KASSEKERT: Miss Tanenhaus? 22 MS. TANENHAUS: The Division also urges 23 that you approve the stipulation. We think it's 24 a fair settlement, and we think you've addressed 25 all the violations. 23 Item No. 5 1 CHAIR KASSEKERT: Thank you. 2 Let me ask if anyone has any questions? 3 COMMISSIONER SOMMELING: No questions, 4 Madam Chair. 5 CHAIR KASSEKERT: Entertain a motion 6 then? 7 COMMISSIONER FEDORKO: Motion to approve 8 stipulations and assess the following penalties 9 for violation of Commission regulations regarding 10 credit regulations: A), impose a total civil 11 penalty of $60,000 against Trump Taj Mahal 12 Associates; B), impose a total civil penalty of 13 $2500 against Bennilee ("Floyd") Reaves and a two 14 day suspension without pay; and C), impose a 15 total civil penalty of $300 against Marie Campolo 16 and a two day suspension without pay. 17 VICE CHAIR FRULIO: Second. 18 CHAIR KASSEKERT: The motion has been 19 made and seconded. All in favor? 20 (Aye.) 21 CHAIR KASSEKERT: Opposed? 22 COMMISSIONER EPPS: I'm going to abstain. 23 CHAIR KASSEKERT: Please note 24 Commissioner Epps abstained on this item. 25 The motion passes, thank you. 24 Item No. 6 1 MR. LEVENSON: Thank you. 2 MR. FUSCO: Thank you very much. 3 MR. NANCE: Item No. 6, initial decision 4 of David H. Morse for removal from the exclusion 5 list. 6 Miss Nagengast? 7 MS. NAGENGAST: Good morning, Chair, 8 Commissioners. You have for your consideration 9 this morning the initial decision of Vice Chair 10 Frulio denying Petitioner's request to be removed 11 from the Commission's exclusion list. 12 I note that Lane Stebbins is here on 13 behalf of the Division, and Petitioner's counsel 14 has advised that he will not be appearing. 15 CHAIR KASSEKERT: Thank you. 16 Mr. Stebbins? 17 MR. STEBBINS: Thank you, Chair 18 Kassekert, members of the Commission. David H. 19 Morse again, in 1995, the Division came before 20 the Commission not comprised as it is today, we 21 alleged that Mr. Morse was cheating in the game 22 of Blackjack by virtue of his card cutting 23 technique. That allegation was proven to the 24 satisfaction of Judge Mason, Administrative Law 25 Judge Mason, and it's affirmed by this 25 Item No. 6 1 Commission. 2 10 years go by. Mr. Morse comes back. 3 He says that he wants to get taken off the 4 exclusion list. We went to a hearing in front of 5 Commissioner Frulio; and at the hearing, I think 6 perhaps the most telling thing is that Mr. Morse 7 either refused to acknowledge or doesn't believe 8 that what he did before was cheating. 9 As the initial decision notes, I pressed 10 him on it, and he couldn't bring himself to make 11 that admission. I think the two most telling 12 things that come out of this case are the words 13 of Commissioner Frulio, and I couldn't say it 14 better myself, with regard to Mr. Morse's 15 credibility and candor, and all of that, 16 Commissioner Frulio says, "I doubt his 17 sincerity". 18 Secondly, and I like the term when you 19 talk about the cheats and risks of putting 20 somebody back, allowing somebody to return to the 21 industry after they've demonstrated cheating as 22 Commissioner Frulio said in terms the petitioner 23 can understand, "I don't like these odds". I 24 don't like the odds, Commissioner Frulio doesn't 25 like the odds, and I would suggest that 26 Item No. 20 1 collectively, this Commission should not like the 2 odds. You should affirm the initial decision. 3 Thank you. 4 CHAIR KASSEKERT: Thank you. 5 Any questions? 6 COMMISSIONER SOMMELING: Madam Chair, 7 move to adopt the Initial Decision and deny the 8 petition for removal of David H. Morse from the 9 Commission's exclusion list. 10 COMMISSIONER FEDORKO: Second. 11 CHAIR KASSEKERT: The motion has been 12 made and seconded. All in favor? 13 (Aye.) 14 CHAIR KASSEKERT: Opposed? 15 (No response.) 16 CHAIR KASSEKERT: The motion carries. 17 (The Commission members vote unanimously 18 in favor of the motion.) 19 MR. STEBBINS: Thank you. 20 MR. NANCE: For your consideration is 21 Item No. 20, motion for relief to reinstate 22 license of Patrick J. Kennedy. 23 Mr. Barney? 24 MR. BARNEY: Thank you, Chair Kassekert, 25 members of the Commission. Mr. Kennedy can take 27 Item No. 20 1 a seat, Mr. Kennedy is here this morning. 2 This is a rather complicated procedural 3 motion only. We seek this morning Commission's 4 approval to basically unroll a couple of 5 decisions that were made and reinstate 6 Mr. Kennedy's license under the original 7 Commission order of May 25th, 2005. 8 What occasioned this was a failure on 9 his part to report to the Division as was part of 10 the initial -- his initial stipulated settlement 11 concerning the payment of some debts. It was a 12 motor vehicle surcharge debt that was involved. 13 He did, in fact, during the period pay it off. 14 What caused the confusion was this 15 mix-up in his address. He went to Florida to 16 seek medical services and was not in Atlantic 17 City, gave up his Atlantic City address, and we 18 started sending him correspondence there, got no 19 answer. 20 According to the usual procedures, those 21 are considered ultimately an abandonment, and his 22 license then was denied retroactively. He was, 23 in fact, at a place where he was receiving 24 medical treatment. 25 He came back, explained all these 28 Item No. 20 1 things, had been some communication with him in 2 Florida. So it couldn't be denied that the State 3 of New Jersey knew where he was; and accordingly, 4 we decided that the fairest thing to do is to 5 give him a chance to get back in the industry by 6 unrolling things. 7 There's a slight modification to the 8 original order in the sense that the motor 9 vehicle surcharge debt that he had is paid in 10 full. So the orders we're modifying requires 11 only that he comply with a wage execution for 12 child support which is updated to reflect the 13 current view of the court. 14 If there are any questions, I'd be happy 15 to answer them. Mr. Kennedy is here, you may ask 16 him questions if you wish. Thank you very much. 17 CHAIR KASSEKERT: Thank you. 18 Mr. Kennedy, is there anything you'd 19 like to say to us this morning? 20 MR. KENNEDY: Mr. Barney, I think, 21 covered everything. 22 CHAIR KASSEKERT: All right. 23 Miss Stancil? 24 MS. STANCIL: The Division is not opposed 25 to the motion. 29 Item No. 7 1 CHAIR KASSEKERT: Thank you. 2 Any questions? 3 COMMISSIONER SOMMELING: No questions. 4 COMMISSIONER FEDORKO: Motion to grant 5 the motion for relief; vacate the Commission's 6 order dated March 1st, 2006, and reinstate 7 Mr. Kennedy's license in accordance with an 8 earlier Commission Order dated May 25, 2005, 9 subject to compliance with a new wage execution 10 dated May 25, 2006. 11 VICE CHAIR FRULIO: Second. 12 CHAIR KASSEKERT: The motion has been 13 made and seconded. All in favor? 14 (Aye.) 15 CHAIR KASSEKERT: Opposed? 16 (No response.) 17 CHAIR KASSEKERT: The motion carries. 18 (The Commission members vote unanimously 19 in favor of the motion.) 20 CHAIR KASSEKERT: Thank you for coming, 21 good luck. 22 MR. KENNEDY: Thank you. Thank you very 23 much. 24 MR. NANCE: Item No. 7, petitions for 25 early reapplication of John Clark, Donald Mooney, 30 Item No. 7 1 and Kim Smith. 2 Miss Frigen? 3 MS. FRIGEN: Madam Chair, Commissioners, 4 good morning. 5 Mr. Clark is present. I'd ask that he 6 come forward and have a seat at the table. 7 For your consideration is Mr. Clark's 8 petition in which he seeks permission to reapply 9 early for a registration and/or non-credential 10 casino hotel alcoholic beverage employment. By 11 letter dated May 10th, the Division has 12 interposed no objection to this petition. 13 CHAIR KASSEKERT: Thank you. 14 Mr. Clark, is there anything you'd like 15 to say this morning? 16 MR. CLARK: No. 17 CHAIR KASSEKERT: Miss Stancil, anything 18 to add? 19 MS. STANCIL: Nothing further. 20 CHAIR KASSEKERT: Thank you. 21 Any questions? 22 COMMISSIONER SOMMELING: No questions, 23 Madam Chair. 24 COMMISSIONER FEDORKO: Motion to grant 25 Mr. Clark's petition to reapply early for a 31 Item No. 7 1 casino service employee registration and/or to 2 obtain employment early as a non-credential 3 casino hotel alcoholic beverage employee. 4 VICE CHAIR FRULIO: Second. 5 CHAIR KASSEKERT: The motion has been 6 made and seconded. All in favor? 7 (Aye.) 8 CHAIR KASSEKERT: Opposed? 9 (No response.) 10 CHAIR KASSEKERT: The motion carries. 11 (The Commission members vote unanimously 12 in favor of the motion.) 13 CHAIR KASSEKERT: Thank you for coming, 14 good luck. 15 MR. CLARK: Thank you. 16 MS. FRIGEN: Before we get to you, Miss 17 Smith, we have Mr. Mooney which would be, 18 Mr. Mooney, you can take a seat right there, 19 you'll be next. 20 Similar to the last agenda item, 21 Mr. Mooney is here seeking permission to reapply 22 early for a license registration and/or 23 non-credential hotel employment. By letter dated 24 May 4th, the Division has interposed no 25 objection. 32 Item No. 7 1 CHAIR KASSEKERT: Thank you. 2 Mr. Mooney, is there anything you'd like 3 to say this morning? 4 MR. MOONEY: Not really, no. 5 CHAIR KASSEKERT: Miss Stancil, anything 6 to add? 7 MS. STANCIL: No. 8 CHAIR KASSEKERT: Okay. Any questions? 9 COMMISSIONER SOMMELING: No questions, 10 Madam Chair. 11 COMMISSIONER FEDORKO: Motion to grant 12 Mr. Mooney permission to reapply early for a 13 casino employee license; a casino service 14 employee registration and/or to obtain employment 15 early as a non-credential hotel employee. 16 VICE CHAIR FRULIO: Second. 17 CHAIR KASSEKERT: The motion has been 18 made and seconded. All in favor? 19 (Aye.) 20 CHAIR KASSEKERT: Opposed? 21 (No response.) 22 CHAIR KASSEKERT: The motion carries. 23 (The Commission members vote unanimously 24 in favor of the motion.) 25 CHAIR KASSEKERT: Thank you for coming, 33 Item No. 7 1 good luck. 2 MR. MOONEY: Thank you very much. 3 MS. FRIGEN: Finally, we have Miss Smith. 4 For your consideration is Miss Smith's petition 5 in which she also seeks permission to reapply 6 early for license registration and/or 7 non-credential hotel employment. By letter dated 8 May 5th, the Division has interposed no objection 9 to this petition. 10 CHAIR KASSEKERT: Miss Smith, is there 11 anything you'd like to say this morning? 12 MS. SMITH: No. 13 CHAIR KASSEKERT: Miss Stancil, anything 14 to add? 15 MS. STANCIL: No. 16 CHAIR KASSEKERT: Okay. 17 Any questions? 18 COMMISSIONER SOMMELING: No questions, 19 Madam Chair. 20 COMMISSIONER FEDORKO: Motion to grant 21 Ms. Smith permission to reapply early for a 22 casino employee license; a casino service 23 employee registration and/or to obtain employment 24 early as a non-credential hotel employee. 25 VICE CHAIR FRULIO: Second. 34 Item No. 8 1 CHAIR KASSEKERT: The motion has been 2 made and seconded. All in favor? 3 (Aye.) 4 CHAIR KASSEKERT: Opposed? 5 (No response.) 6 CHAIR KASSEKERT: The motion carries. 7 (The Commission members vote unanimously 8 in favor of the motion.) 9 CHAIR KASSEKERT: Thank you for coming, 10 good luck. 11 MS. SMITH: Thank you. 12 MR. NANCE: Item No. 8, applications for 13 suspension for Terry Gay, Aldo Lapaix, Jeury 14 Sierra, Wendy Moradel-Lopez and Jayme White. 15 Miss Frigen? 16 MS. FRIGEN: Before we hear from the 17 Division, let me just ask whether any of the 18 individuals who were just named are present or 19 represented here today? 20 (No response.) 21 MS. FRIGEN: Apparently not. 22 CHAIR KASSEKERT: Miss Stancil? 23 MS. STANCIL: I'll ask that you grant the 24 applications. 25 CHAIR KASSEKERT: Thank you. 35 Item No. 9 1 Any questions? 2 COMMISSIONER FEDORKO: Motion to suspend 3 credentials. 4 VICE CHAIR FRULIO: Second. 5 CHAIR KASSEKERT: The motion has been 6 made and seconded. All in favor? 7 (Aye.) 8 CHAIR KASSEKERT: Opposed? 9 (No response.) 10 CHAIR KASSEKERT: The motion carries. 11 (The Commission members vote unanimously 12 in favor of the motion.) 13 MR. NANCE: Item No. 9, first amended 14 petition of Ace Gaming, LLC and American Property 15 Investors, Inc. requesting permission for Vincent 16 James Intrieri to perform the duties and exercise 17 the powers of a Member of the Board of Directors 18 of American Property Investors, Inc. pending 19 plenary qualification. 20 Miss Delia? 21 MS. DELIA: Good morning, Chair and 22 Commissioners. Dennis Daly is here on behalf of 23 the Petitioners, and Ray Marquez is here on 24 behalf of the Division. 25 I have circulated a copy of the draft 36 Item No. 9 1 resolution to the parties for their review. 2 CHAIR KASSEKERT: Thank you. 3 Mr. Daly? 4 MR. DALY: Good morning, Commissioners, 5 Madam Chair. We have read the draft resolution 6 and find no objection to it, and ask you to go 7 ahead and grant the petition for early -- for 8 temporary qualification. 9 CHAIR KASSEKERT: Thank you. 10 Mr. Marquez? 11 MR. MARQUEZ: Likewise, we've read the 12 resolution, find it adequate, and we believe that 13 subject to the usual conditions on filing the 14 proper PHD, that you grant it. 15 CHAIR KASSEKERT: Thank you. 16 Any questions? 17 COMMISSIONER SOMMELING: No questions, 18 Madam Chair. 19 COMMISSIONER EPPS: I move that we adopt 20 the draft resolution and find Vincent James 21 Intrieri temporarily qualified and authorize him 22 to assume the duties and exercise the powers of a 23 Member of the Board of Directors of American 24 Property Investors, subject to the conditions 25 contained in N.J.A.C. 19:43-2.7, which among 37 Item No. 10 1 other things, require that he file a PHD-MJ and 2 New Jersey Supplemental by June 22nd, 2006. 3 COMMISSIONER SOMMELING: Second. 4 CHAIR KASSEKERT: The motion has been 5 made and seconded. This is a roll call vote. 6 MR. NANCE: Commissioner Sommeling? 7 COMMISSIONER SOMMELING: Yes. 8 MR. NANCE: Commissioner Epps? 9 COMMISSIONER EPPS: Yes. 10 MR. NANCE: Commissioner Fedorko? 11 COMMISSIONER FEDORKO: Yes. 12 MR. NANCE: Vice Chair Frulio? 13 VICE CHAIR FRULIO: Yes. 14 MR. NANCE: Chair Kassekert? 15 CHAIR KASSEKERT: Yes. 16 MR. NANCE: The record will reflect the 17 motion is unanimous. 18 Item No. 10, petition of ACE Gaming, 19 LLC, American Properties Investors, Inc. and 20 American Real Estate Partners, L.P., requesting 21 permission for Hillel Moerman to be permitted to 22 perform the duties and exercise the powers of 23 Vice President of Strategic Planning for American 24 Real Estate Partners, L.P., pending plenary 25 qualification. 38 Item No. 10 1 Miss Delia? 2 MS. DELIA: Same parties are here, and I 3 again have circulated a copy of the draft 4 resolution. 5 CHAIR KASSEKERT: Thank you. 6 Mr. Daly? 7 MR. DALY: Same issues, same 8 presentation. 9 CHAIR KASSEKERT: Very good. 10 Any questions? 11 Don't you have a question for him? 12 COMMISSIONER FEDORKO: The joys of 13 private practice. 14 VICE CHAIR FRULIO: Do you guys get paid 15 for that? 16 COMMISSIONER FEDORKO: Big time. 17 CHAIR KASSEKERT: Did we have a second on 18 that motion? 19 COMMISSIONER EPPS: Second. 20 CHAIR KASSEKERT: The motion has been 21 made and seconded. This is a roll call vote. 22 MR. NANCE: Commissioner Sommeling? 23 COMMISSIONER SOMMELING: Yes. 24 MR. NANCE: Commissioner Epps? 25 COMMISSIONER EPPS: Yes. 39 Item No. 11 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 the 8 motion is unanimous. 9 Item No. 11, consideration of the 10 qualification of Charles B. Danner to serve as 11 Vice President of Design and Construction for 12 Harrah's Operating Company Inc., Eastern 13 Division. 14 Miss Delia? 15 MS. DELIA: Charles Danner was found 16 temporarily qualified by the Commission on 17 October 19th, 2005. A copy of the draft 18 resolution has been circulated to the parties. 19 Karen Wosnack is here on behalf of the 20 Petitioners, and Ray Marquez is here on behalf of 21 the Division. 22 MS. WOSNACK: Good morning, Madam Chair, 23 Commissioners. We just ask that you adopt the 24 resolution as presented. 25 CHAIR KASSEKERT: Thank you. 40 Item No. 11 1 Mr. Marquez? 2 MR. MARQUEZ: Division agrees pursuant to 3 the letter. 4 CHAIR KASSEKERT: Thank you. 5 Any questions for the parties? 6 COMMISSIONER FEDORKO: Motion to adopt 7 the draft resolution and find Charles B. Danner 8 qualified to serve as Vice President of Design 9 and Construction for Harrah's Operating Company, 10 Inc., Eastern Division. 11 VICE CHAIR FRULIO: Second. 12 CHAIR KASSEKERT: This is a roll call 13 vote. 14 COMMISSIONER SOMMELING: Madam Chair, 15 I'll abstain on this. 16 CHAIR KASSEKERT: Let the record reflect 17 that. 18 MR. NANCE: Commissioner Epps? 19 COMMISSIONER EPPS: Yes. 20 MR. NANCE: Commissioner Fedorko? 21 COMMISSIONER FEDORKO: Yes. 22 MR. NANCE: Vice Chair Frulio? 23 VICE CHAIR FRULIO: Yes. 24 MR. NANCE: Chair Kassekert? 25 CHAIR KASSEKERT: Yes. 41 Item No. 19 1 MR. NANCE: Let the record reflect the 2 motion carries by a vote of 4-0 with Commissioner 3 Sommeling abstaining. 4 For your consideration is Item No. 19, 5 petition of RIH Acquisitions New Jersey, LLC, for 6 permission to allow Kevin S. Smith to perform the 7 duties and exercise the powers of Regional Vice 8 President of Litigation for RIH Resorts, LLC, 9 pending plenary qualification. 10 Miss Delia? 11 MS. DELIA: Pat Wild is here on behalf of 12 the Petitioner, Ray Marquez on behalf of the 13 Division, and a copy of the draft resolution has 14 been circulated to the parties. 15 CHAIR KASSEKERT: Thank you. 16 Miss Wild? 17 MS. WILD: Good morning again. I would 18 just ask that you adopt the draft resolution as 19 proposed allowing Kevin S. Smith to perform the 20 duties as Regional Vice President of litigation 21 for RIH Resorts, LLC. Thank you. 22 CHAIR KASSEKERT: Mr. Marquez? 23 MR. MARQUEZ: Division concurs, Madam 24 Chair. 25 CHAIR KASSEKERT: Thank you. 42 Item No. 19 1 Any questions? 2 VICE CHAIR FRULIO: Motion to adopt the 3 draft resolution and find Kevin S. Smith 4 temporarily qualified and authorize him to assume 5 the duties and exercise the powers of Regional 6 Vice President of Litigation for RIH Resorts, 7 LLC, subject to the conditions contained in 8 N.J.A.C. 19:43-2.7. 9 COMMISSIONER FEDORKO: Second. 10 CHAIR KASSEKERT: This is a roll call 11 vote. 12 MR. NANCE: Commissioner Sommeling? 13 COMMISSIONER SOMMELING: Yes. 14 MR. NANCE: Commissioner Epps? 15 COMMISSIONER EPPS: Yes. 16 MR. NANCE: Commissioner Fedorko? 17 COMMISSIONER FEDORKO: Yes. 18 MR. NANCE: Vice Chair Frulio? 19 VICE CHAIR FRULIO: Yes. 20 MR. NANCE: Chair Kassekert? 21 CHAIR KASSEKERT: Yes. 22 MR. NANCE: The record will reflect the 23 motion is unanimous. 24 CHAIR KASSEKERT: Thank you. 25 MS. WILD: Thank you. 43 Item No. 12 1 MR. NANCE: Item No. 12, proposed 2 readoption of N.J.A.C. 19:47. 3 Miss Delia? 4 MS. DELIA: Chapter 47 Rules of the Game 5 is scheduled to expire on September 5th, 2006. 6 The proposed readoption without amendments was 7 published in the New Jersey register on March 8 20th, 2006. No comments were received. The 9 matter is before you today for your approval of 10 the final readoption without amendments as 11 published. 12 CHAIR KASSEKERT: Thank you. 13 Any questions for Miss Delia? 14 COMMISSIONER SOMMELING: Move to readopt 15 as published. 16 COMMISSIONER EPPS: Second. 17 CHAIR KASSEKERT: The motion has been 18 made and seconded. All in favor? 19 (Aye.) 20 CHAIR KASSEKERT: Opposed? 21 (No response.) 22 CHAIR KASSEKERT: The motion carries. 23 (The Commission members vote unanimously 24 in favor of the motion.) 25 MS. DELIA: Thank you. 44 Item No. 13 1 MR. NANCE: Item No. 13, proposed 2 readoption of amendments to N.J.A.C. 19:41-9.8. 3 Mr. Briliant? 4 MR. BRILIANT: Good morning, Madam Chair 5 and Commissioners. Under the Commission's 6 current fee structure, which has not been 7 modified since 1993, the average applicant for a 8 gaming related casino service industry license 9 only pays approximately nine percent of the 10 actual cost of an initial license application, 11 and approximately six percent of the actual cost 12 of a renewal application. 13 Under the fee structure in these 14 proposed regulations, the average applicant for a 15 gaming related casino service industry license 16 would be anticipated to pay approximately 41 17 percent of the actual cost of an initial license 18 application, and approximately 59 percent of the 19 actual cost of a renewal application. 20 Although the proposal, if adopted, would 21 represent a significant increase in the fees 22 actually paid by the enterprise, the fees would 23 continue to be substantially less than would have 24 been charged if the applicant was required to pay 25 the full cost of investigating and processing its 45 Item No. 14 1 application. The matter is now before you, the 2 Commission, for consideration. 3 CHAIR KASSEKERT: I'd note not only that, 4 but the cost, the extra cost is borne by the 5 industry as well. 6 MR. BRILIANT: That's correct, yes. 7 CHAIR KASSEKERT: Any questions? 8 COMMISSIONER SOMMELING: No questions, 9 Madam Chair. 10 COMMISSIONER FEDORKO: Motion to adopt as 11 published. 12 VICE CHAIR FRULIO: Second. 13 CHAIR KASSEKERT: The motion has been 14 made and seconded. All in favor? 15 (Aye.) 16 CHAIR KASSEKERT: Opposed? 17 (No response.) 18 CHAIR KASSEKERT: The motion carries. 19 (The Commission members vote unanimously 20 in favor of the motion.) 21 MR. NANCE: Item No. 14, petitions of 22 Marina District Development Company, LLC, for 23 amendments to its certificate of operation and 24 casino hotel alcoholic beverage license to permit 25 a reconfiguration and expansion of its gaming 46 Item No. 14 1 floor. 2 MR. BRILIANT: Madam Chair, I have with 3 me this morning Bruce Band, who's the principal 4 inspector over at the Borgata; and before we 5 begin, I just wanted to put one or two technical 6 matters on the record. 7 CHAIR KASSEKERT: Okay. 8 MR. BRILIANT: This item originally 9 consisted of two petitions; the latter petition, 10 1160604, was a petition to reconfigure the hard 11 and soft count. That has been handled by 12 delegated authority by Mr. Band. It's not going 13 to be part of today's agenda item. No need for 14 the Commission to consider it. It's already 15 done. 16 CHAIR KASSEKERT: So noted. 17 MR. BRILIANT: I have circulated a 18 proposed resolution among all the parties, and 19 they've indicated to me that it's satisfactory to 20 them should the Commission proceed. 21 Mr. Corbo is here on behalf of Borgata. 22 I'll let him present his matter. 23 CHAIR KASSEKERT: Thank you. 24 Good morning, Mr. Corbo. 25 MR. BRILIANT: Mr. Ficchi is here on 47 Item No. 14 1 behalf of the Division. 2 MR. CORBO: Madam Chair, Commissioners, 3 it's my pleasure to be here today just about 4 three years from the date that we got our initial 5 certificate of operation and today, of course, 6 we're seeking the expansion of that certificate 7 of operation. 8 If I may, I've got an entourage here. 9 It's a significant event for us at Borgata, of 10 course, and apropos that, we brought some people 11 along. So if I could introduce, just acknowledge 12 Auggie Cipollini, who's our Vice President, 13 Senior Vice President and Chief Administrative 14 Officer; Larry Mullin, who's, of course, our 15 President and COO; Joe Lupo, our Senior Vice 16 President of Operations; Mike Kasenda, our 17 Director of Marketing Services; Paul Tjoumakaris, 18 our Vice President of Slots; Peter Finamore, our 19 Vice President of Hospitality; Eric Reynolds, 20 Vice President of our Atlantic City Jobs and 21 Opportunity Program; Meg Elevich, our trusted 22 paralegal. 23 CHAIR KASSEKERT: The woman who does all 24 the work. 25 MR. CORBO: People call me up and say 48 Item No. 14 1 Joe, why did you pick up the phone directly, why 2 didn't you have somebody answer the phone? 3 Meg is too important; Kelly Cooper, 4 who's got the best job in Atlantic City for the 5 summer, as an intern for the Food and Beverage 6 Department, Kelly is an intern to the legal 7 department; Tammy Powell, who is our Director of 8 Purchasing; Hugh Turner, who is our relatively 9 new Vice President of Finance; and Victor 10 Tiffany, who is our Vice President of Food and 11 Beverage. I got everybody; right? 12 Due to the good work of Seth and Bruce 13 and Steve Freich, most of the work has already 14 been done, of course, and I'm advised that there 15 really are no issues for us to consider today, 16 but again, this is a significant event for us, 17 and we appreciate the opportunity to be able to 18 put on a brief presentation here today. 19 So with your permission -- 20 CHAIR KASSEKERT: Absolutely. 21 MR. CORBO: -- I'm going to call first 22 Larry Mullin to the stand, and then Auggie 23 Cipollini. 24 I'll be seated if that's okay with you. 25 CHAIR KASSEKERT: That's perfectly okay. 49 Item No. 14 1 Mr. Ficchi's got a real tough 2 cross-examination prepared, I can tell. 3 Mr. Mullin, you need to be sworn in. 4 MR. NANCE: Raise your right hand, 5 please. 6 You swear to tell the truth, the whole 7 truth and nothing but the truth? 8 MR. MULLIN: I do. 9 MR. NANCE: Please state your name for 10 the record. 11 MR. MULLIN: Larry Mullin. 12 MR. NANCE: Thank you. 13 CHAIR KASSEKERT: You can proceed, 14 Mr. Corbo. 15 (Whereupon, LARRY J. MULLIN, having been 16 first duly sworn, was examined and testified as 17 follows:) 18 DIRECT EXAMINATION BY MR. CORBO: 19 Q. Larry, when was the decision made to 20 expand Borgata, and why was that decision made? 21 A. It was several months after opening 22 Borgata in late of '03, and the reason was for 23 actually the supply constraints of all of our 24 product offerings at Borgata, we're fully engaged 25 in taking a look on how we can expand the 50 Item No. 14 1 property. 2 Q. Would you describe, and I will note 3 that the Commissioners have been over certainly 4 months ago to see the expansion, and they're 5 going to be coming over again today; but with 6 that in mind, a brief overview of exactly what 7 the expansion entails? 8 A. Yeah, I'll be brief, and you're 9 going to have a tour later today. 10 Phase I of the expansion, which we're 11 opening in several weeks, is the 200 million 12 dollar project of the public space consists of 13 500 slot machines, 85 poker tables, a hundred 14 seat race book, 44 table games, three fine dining 15 restaurants, a food court with eight restaurants 16 and a nightclub. Ultra Lounge, that is a 17 nightclub. 18 Q. And why those items, what sort of 19 demand did we see early on that made us want to 20 go that way? 21 A. Our gaming demand was very strong, 22 and specifically table games and poker; 23 therefore, the need to expand in there, but the 24 other good news was our restaurants were at 25 demand that really was, you know, putting people 51 Item No. 14 1 in a point where we were turning people away 2 significantly. 3 So the decision to be made for the low 4 rise to come on as quickly as we could was the 5 reason for Phase I, Phase I expansion. 6 Q. Could you expand a little bit on the 7 restaurant offerings that we're going to have? 8 A. The three fine dining restaurants 9 starting with Bobby Flay Steaks would be about a 10 250 seat restaurant that Bobby Flay has 11 restaurants in Las Vegas as well as New York. I 12 believe this is his fifth restaurant. 13 Second restaurant, Michael Mina, would 14 be our first seafood restaurant at Borgata. 15 Michael Mina is very popular out in Las Vegas -- 16 excuse me -- also in California and was recently 17 named restaurant of the year in Las Vegas with 18 Bon Appetit as well as the James Beard 19 organization, and then our most popular 20 restaurant which is going to be Wolfgang Puck. 21 Wolfgang Puck will be over 250 seat restaurant, 22 that it will be his first restaurant on the east 23 coast. 24 We also have a food court that we saw 25 opportunity for quick service restaurant offering 52 Item No. 14 1 that Borgata didn't have in its current form, and 2 we have eight restaurants that will be comprised 3 of Tony Lukes Steak Shop, Villa Pizza, Fat 4 Burger, Panda Express, Lettuce Heads, Ben & 5 Jerry's Ice Cream, and what did I forget, Hibachi 6 Sun, and we also have one of our own restaurants 7 that will be on the first -- on the current floor 8 called Bread & Butter, which again is going to be 9 a new restaurant that we think is going to have a 10 lot of demand. I think a lot of griddle 11 sandwiches, as Victor likes to describe them, 12 cheese and butter. 13 Q. Larry, speaking of the food court, I 14 know that we expect that the poker players are 15 going to be some of the prime consumers for that 16 product. 17 Could you talk a little bit about 18 opening with 34 poker rooms, and how bumping that 19 up to about 85 poker rooms, and how we feel about 20 poker? 21 A. Poker, when we first opened with our 22 35 tables, it was -- you know, I think we got 23 caught in a phenomena that was happening around 24 the country with poker, and we've had great 25 success with our poker and plan on utilizing that 53 Item No. 14 1 as a key part of our marketing as well as 2 accommodating more people to play poker and, 3 therefore, the need to go to 85 tables. 4 The other opportunity we saw with poker 5 was, as I mentioned earlier with the restaurants, 6 a lot of -- a lot of those players like to get a 7 quick sandwich or quick bite to eat, and the food 8 court being located just off of the poker room, 9 we think, is going to be a great offering that we 10 can accommodate our customers with. 11 Q. While it's not part of the 12 preliminary decision we're seeking today, could 13 you touch briefly on the hotel tower expansion? 14 A. Phase II expansion, which will be a 15 little over 325 million dollars, is a 800 room 16 tower that will comprise of 750 classic rooms, 50 17 suites. There will be four pools, more public 18 space, a retail area. It will have its own 19 parking facility for valet as well as its own 20 check-in, and the hotel will be called the Water 21 Club, and that will hopefully come on line at the 22 end of '07. 23 MR. CORBO: I've no further questions for 24 Mr. Mullin. 25 CHAIR KASSEKERT: Mr. Ficchi, do you have 54 Item No. 14 1 any questions for Mr. Mullin? 2 MR. FICCHI: No, I don't, other than just 3 to wish you good luck on the expansion. It's not 4 a question. 5 MR. MULLIN: Thank you. 6 CHAIR KASSEKERT: Let me ask if any of 7 the Commissioners have any questions? 8 COMMISSIONER SOMMELING: No questions, 9 Madam Chair. 10 CHAIR KASSEKERT: Thank you, Mr. Mullin. 11 You may step down. 12 MR. MULLIN: Thank you very much, and I 13 will say the cooperation with both the 14 Commission, Division and the State has been 15 terrific, and in the short time that we've had to 16 bring on all the product that we have in the last 17 35 months, to be able to bring this on as quickly 18 as we have is again with good cooperation. I 19 just wanted to thank everybody for their help. 20 CHAIR KASSEKERT: Thank you. We 21 appreciate your comments. 22 MR. CORBO: I'd like to call 23 Mr. Cipollini, please. 24 CHAIR KASSEKERT: Sure. 25 Mr. Cipollini, we need to swear you in. 55 Item No. 14 1 MR. CIPOLLINI: Okay. 2 MR. NANCE: Raise your right hand, 3 please. 4 Do you swear to tell the truth, the 5 whole truth and nothing but the truth? 6 MR. CIPOLLINI: I do. 7 MR. NANCE: Please state your name, for 8 the record. 9 MR. CIPOLLINI: Auggie Cipollini. 10 MR. NANCE: Thank you. 11 (Whereupon, AUGGIE CIPOLLINI, having 12 been first duly sworn, was examined and testified 13 as follows:) 14 CHAIR KASSEKERT: Mr. Corbo? 15 DIRECT EXAMINATION BY MR. CORBO: 16 Q. Thank you. Auggie, would you please 17 speak to the business climate that exists in New 18 Jersey that permits the type and magnitude of 19 investment and Borgata's initial investment now 20 in the additional expansions? 21 A. Sure. It actually goes back to 2003 22 when we made our initial one point one billion 23 dollar investment. We did that partly because of 24 business climate that existed in the State of New 25 Jersey which regarded its stable tax rate. 56 Item No. 14 1 Now, as you know, just before we opened 2 due to that state budget crisis, an incremental 3 tax was passed on to the casinos, and that was a 4 tax that was going to be a temporary tax, that we 5 hoped is a temporary tax, but notwithstanding, we 6 went back and said knowing that this one time tax 7 was going to sunset, we went ahead and decided 8 that we're going to make an incremental 9 investment of half a billion dollars, and we did 10 that with the trust in confidence that that tax 11 would sunset. 12 Now, there's no mistaking a good 13 business climate, stable tax rate, and the level 14 of investment that's made within the state, and a 15 stable tax rate like New Jersey has, and 16 conversely like Nevada has, has shown the 17 increase in investment that is going to both 18 those states. 19 Conversely, there's been other states 20 that have had increasing tax rate, and that level 21 investment has moved to other states. 22 The point is, you know, New Jersey, 23 we're in competition with other jurisdictions, 24 not just for gaming dollars, but also for 25 investment in the state, and, you know, the point 57 Item No. 14 1 being stable tax rate yields more incremental 2 investment like you see with the Borgata. 3 Q. And how does that tie into growing 4 the market so that ultimately, there are more tax 5 dollars in the coffers of the State of New 6 Jersey? 7 A. Investment yields demand, and what 8 we've seen, what we've actually seen Atlantic 9 City really has been a renaissance since Borgata 10 has opened. Actually, if you turn the clock back 11 to the year 2002, the mix between gaming revenues 12 and non-gaming revenues, actually case revenues 13 coming into the state, take away all the comp 14 revenue out of that, the mix between gaming and 15 non-gaming was 91 percent gaming and nine percent 16 was non-gaming revenues coming into the state. 17 Fast forward up to the year 2005, that 18 mix of cash revenues coming in between gaming and 19 non-gaming moved down to 89 percent gaming, 11 20 percent non-gaming. 21 So what that means is with the right 22 kind of investment, we're bringing not just 23 gamers into Atlantic City, but we're bringing 24 non-gaming dollars into Atlantic City, and we've 25 seen that not just with Borgata, but we're seeing 58 Item No. 14 1 other investment outside of the gaming industry 2 with Ruth's Chris Steak House, 40/40 Club, The 3 Walk, The Quarter, and also the pier that's going 4 to open this summer. That bodes well for 5 everyone. 6 MR. CORBO: Thank you. I've no further 7 questions. 8 CHAIR KASSEKERT: Mr. Ficchi, do you have 9 any questions? 10 MR. FICCHI: No questions. 11 CHAIR KASSEKERT: Any questions from the 12 Commission? 13 COMMISSIONER SOMMELING: No questions, 14 Madam Chair. 15 CHAIR KASSEKERT: You may step down. 16 MR. CORBO: That concludes our 17 presentation, and I would just ask that you grant 18 the requested relief. 19 CHAIR KASSEKERT: Thank you. 20 Mr. Ficchi? 21 MR. FICCHI: Yes, Chair, Commissioners, 22 the Division has reviewed the draft resolution 23 which Mr. Briliant has indicated, and we have no 24 objection to the adoption. 25 CHAIR KASSEKERT: Thank you. 59 Item No. 15 1 Any questions? 2 I'll entertain a motion. 3 COMMISSIONER SOMMELING: Madam Chair, I 4 move to adopt the draft resolution and approve 5 the petition of Marina District Development 6 Company, LLC, for an amendment to its certificate 7 of operation and casino hotel alcoholic beverage 8 license, to permit the reconfiguration and 9 expansion of its casino floor, subject to the 10 conditions in the resolution. 11 COMMISSIONER FEDORKO: Second. 12 CHAIR KASSEKERT: The motion has been 13 made and seconded. All in favor? 14 (Aye.) 15 CHAIR KASSEKERT: Opposed? 16 (No response.) 17 CHAIR KASSEKERT: The motion carries. 18 (The Commission members vote unanimously 19 in favor of the motion.) 20 CHAIR KASSEKERT: Thank you very much. 21 Congratulations, continued best wishes on more 22 and more expansion. 23 MR. CORBO: Thank you very much. 24 MR. NANCE: Item No. 15, petition of 25 Olympia Dice; Trump Taj Mahal Associates, and 60 Item No. 15 1 Greate Bay Hotel and Casino, Inc. for approval of 2 "Lonestar Craps." 3 Mr. Briliant? 4 MR. BRILIANT: Madam Chair and 5 Commissioners, this petition requests approval of 6 Lonestar Craps which consists of two additional 7 wagers in the authorized games of craps and 8 mini-craps. These wagers have already been 9 approved for use in Nevada and Mississippi. The 10 wagers are variations of existing craps and 11 mini-craps bets that could be made at any time 12 during the game independent of any other craps or 13 mini-craps wagers. 14 Each is a one roll wager that is 15 specific number combination would appear on the 16 next roll of the dice. This is essentially what 17 they call a proposition bet. 18 The Petitioner, Mr. Cacas, from Olympia 19 Dice has requested that the matter be heard on 20 the papers. 21 I can also update the Commission that 22 yesterday afternoon, I did receive the release 23 and indemnification from the Sands, which is the 24 other casino that petitioned in this, 25 participating in the test of the wager. 61 Item No. 15 1 So there's no reason really that the 2 test cannot go forward if the Commission goes 3 ahead and approves these wagers for use. 4 I have circulated a proposed notice of 5 -- excuse me, a temporary, notice of temporary 6 adoption. Mr. Ficchi has seen it, and I think we 7 should hear from him. 8 CHAIR KASSEKERT: Thank you. 9 Mr. Ficchi? 10 MR. FICCHI: The Division is working on 11 the analysis for the house advantage, and we'll 12 provide the report to the Commission as soon as 13 it's available, and the Division has no objection 14 to the adoption of the proposed amendment. 15 CHAIR KASSEKERT: Very good. 16 Any questions? 17 COMMISSIONER EPPS: The only question, 18 Seth, is there a separate layout for this game 19 and will it only be available at the table with 20 that layout, or is it just going to be -- 21 MR. BRILLIANT: Well, it would be a 22 slightly different layout than the existing craps 23 layout because there's a place on this layout for 24 these high low wagers. It will only be available 25 for the table that has that layout, yes. 62 Item No. 15 1 CHAIR KASSEKERT: Any other questions? 2 COMMISSIONER SOMMELING: No questions, 3 Madam Chair. 4 VICE CHAIR FRULIO: Move to approve the 5 proposed craps and mini-craps wager; and one, 6 find that the proposed new wagers are variations 7 of existing wagers in the games of craps and 8 mini-craps pursuant to N.J.S.A. 5:12-5 and 9 N.J.A.C. 19:47-8.4; two, authorize the 10 publication of the Notice of Proposal and Notice 11 of Temporary Adoption, and temporarily adopt the 12 proposed amendments which will permit the new 13 wager to be offered on the gaming floor for up to 14 270 days; three, condition any test or use of the 15 new craps and mini-craps upon: A, the filing with 16 and approval by the Division of Compliance of all 17 necessary internal control submissions and 18 Indemnification and Release Agreements; and B, 19 the issuance of a CSI license or any necessary 20 transactional waivers to Olympia Dice. 21 COMMISSIONER FEDORKO: Second. 22 CHAIR KASSEKERT: The motion has been 23 made and seconded. All in favor? 24 (Aye.) 25 CHAIR KASSEKERT: Opposed? 63 Item No. 16 1 (No response.) 2 CHAIR KASSEKERT: The motion carries. 3 (The Commission members vote unanimously 4 in favor of the motion.) 5 MR. BRILIANT: Thank you. 6 MR. FICCHI: Thank you. 7 MR. NANCE: Item No. 16, proposed 8 adoption of amendment to N.J.A.C. 19:45-1.40D. 9 Mr. Mamolen? 10 MR. MAMOLEN: This matter is before you 11 for final adoption, Commissioners, and it 12 essentially increases the dollar threshold to for 13 slot machine jackpots of greater than $75,000 14 from its previous threshold from greater than 15 $45,000. 16 During the comment period after the 17 proposed amendment was published, we received 18 three comments from the Division and two casino 19 licensees, all of which did not interpose an 20 objection. Casino licensees, in fact, support 21 the amendment. 22 CHAIR KASSEKERT: I would note this is 23 another item from the Wish List? 24 MR. MAMOLEN: Yes, it is. 25 CHAIR KASSEKERT: Very good. 64 Item No. 17 1 Any questions? 2 COMMISSIONER FEDORKO: Motion to adopt as 3 published. 4 COMMISSIONER EPPS: Second. 5 CHAIR KASSEKERT: The motion has been 6 made and seconded. All in favor? 7 (Aye.) 8 CHAIR KASSEKERT: Opposed? 9 (No response.) 10 CHAIR KASSEKERT: The motion carries. 11 (The Commission members vote unanimously 12 in favor of the motion.) 13 MR. NANCE: Item No. 17, proposed 14 adoption of amendment to N.J.A.C. 19:46-1.19B. 15 Mr. Mamolen? 16 MR. MAMOLEN: Another item from the Wish 17 List which would decrease the frequency of Pai 18 Gow Tile, changing Pai Gow Tiles from eight hours 19 to at least once every 12 hours. There is only 20 one comment during the comment period from the 21 Division of Gaming Enforcement, which did not 22 interpose an objection. 23 CHAIR KASSEKERT: Thank you. 24 Any questions? 25 COMMISSIONER FEDORKO: Motion to approve 65 Item No. 18 1 as published. 2 COMMISSIONER SOMMELING: Second. 3 CHAIR KASSEKERT: The motion has been 4 made and seconded. All in favor? 5 (Aye.) 6 CHAIR KASSEKERT: Opposed? 7 (No response.) 8 CHAIR KASSEKERT: The motion carries. 9 (The Commission members vote unanimously 10 in favor of the motion.) 11 MR. NANCE: Item No. 18, proposed 12 temporary adoption of amendments and new rule for 13 bad beat payouts in poker; authorization of rule 14 making experiment for bad beat payouts pursuant 15 to N.J.S.A. 5:12-69e. 16 Mr. Mamolen? 17 MR. MAMOLEN: Still another Wish List 18 item, bad beat pay outs previously, of course, 19 were not authorized by the Commission, and before 20 you are temporary rules and a request for test 21 authorization that encompasses pretty much the 22 whole gamut for bad beat payouts including player 23 contributions, posting of amounts, of the payout 24 amounts to be won by players, transport of monies 25 from the poker tables to the cage area, and in 66 Item No. 18 1 addition, transfer of payout amounts back to the 2 poker table or division board's contribution at 3 the cage. 4 CHAIR KASSEKERT: Thank you, and I would 5 note that this issue would not impact on the 6 gross revenues tax; is that correct? 7 MR. MAMOLEN: That's correct. 8 CHAIR KASSEKERT: Very good. 9 Any questions? 10 COMMISSIONER SOMMELING: No questions, 11 Madam Chair. 12 VICE CHAIR FRULIO: Move to preliminarily 13 approve the bad beat payouts compatible with the 14 public interest pursuant to section 5 of the Act; 15 B, authorize the publication of the Notice of 16 Temporary Adoption which will permit a test of 17 bad beat payouts in poker to begin on or after 18 July 10th, 2006, subject to the conditions listed 19 below, and continue for a period of time not to 20 exceed 270 days; C, temporarily adopt the 21 amendments contained in the Notice of Proposal 22 for the purpose of conducting the above test; D, 23 delegate to the Director of the Division of 24 Compliance the authority to establish the terms 25 and conditions of a test of the bad beat payouts, 67 Public Participation 1 and to approve any gaming equipment necessary to 2 the implementation of the test; and E, condition 3 any test of bad beat payouts upon the filing with 4 and approval by the Division of Compliance of all 5 necessary test submissions for a 69e test of bad 6 beat payouts. 7 COMMISSIONER FEDORKO: Second. 8 CHAIR KASSEKERT: The motion has been 9 made and seconded. All in favor? 10 (Aye.) 11 CHAIR KASSEKERT: Opposed? 12 (No response.) 13 CHAIR KASSEKERT: The motion carries. 14 (The Commission members vote unanimously 15 in favor of the motion.) 16 MR. NANCE: In accordance with Resolution 17 No. 05-12-14-19, the next closed session of the 18 Commission shall be held on Wednesday, June 21st, 19 2006, at 9:15 a.m. in the Commission offices. 20 It is now time for the public 21 participation portion of the meeting. 22 CHAIR KASSEKERT: Is there anyone from 23 the public that wishes to be heard? 24 Mr. Johnson, you can come forward. Sit 25 at the middle table there, Mr. Johnson. 68 Public Participation 1 Would you please state your name and 2 your address for our record? 3 MR. JOHNSON: Franklin Johnson, 701 East 4 19th Street, North Carolina. 5 CHAIR KASSEKERT: Okay. What would you 6 like to tell us today? 7 MR. JOHNSON: During my last meeting 8 here, I requested certain information concerning 9 the exclusion of individuals from certain 10 casinos. 11 I also requested certain information in 12 regards to eviction and ejection concerning 13 certain casinos. I ask that that information be 14 forwarded to the Federal Bureau of Investigation 15 over here in Northfield so that they would know 16 that I am no longer able to be of any service in 17 regards to public corruption in connection to 18 these casinos. We have not received any of those 19 particular requests. 20 We have also been given a document that 21 does not seem to be authentic in terms of the 22 legal process to the exclusionary list. 23 Now, I don't know how the Commission 24 really feels about federal intervention or 25 federal authority intervention to these casinos 69 Public Participation 1 and some of the public corruption that's involved 2 in some of these casinos. I understand that they 3 generate a lot of revenue for the State of New 4 Jersey. I know that certain departments here are 5 above and beyond the line of corruption. 6 Now, my thoughts is that the Commission 7 here seems to be in opposition with the Federal 8 Bureau of Investigation in connection to this 9 because it's been over three weeks, and those 10 papers weren't sent to them. 11 CHAIR KASSEKERT: Any of the 12 Commissioners want to comment? 13 COMMISSIONER EPPS: Well -- 14 CHAIR KASSEKERT: You know, Mr. Johnson, 15 we have tried to help you. You know, I 16 understand that you think -- you think in a 17 particular way in terms of what's going on here, 18 but as Mr. Briliant has told you, as other 19 individuals have told you, the casinos are free 20 to exclude people from their premises. That is 21 different from our exclusion list which has to 22 follow a statutory requirement, which is entirely 23 different, but they are free to do that. I don't 24 know what else we can say to you that will 25 convince you that that's the case, but that's 70 Public Participation 1 what it is, and I can only thank you for your 2 comments. 3 MR. JOHNSON: Well, it's not me that is 4 having a problem with understanding the due 5 process of that. 6 CHAIR KASSEKERT: It is not a due process 7 issue. 8 MR. JOHNSON: Would you -- are you saying 9 that I lose my constitutional right to due 10 process because it's private industry here that's 11 exempted from the regulations here? 12 CHAIR KASSEKERT: The casinos are not a 13 court of law. They are not -- they are private 14 enterprises. They can exclude who they wish from 15 their premises, and that's all I can say to you. 16 MR. JOHNSON: I'm not saying that that's 17 not so. I'm saying that there is a process of 18 law involved in that. That's my claim to that. 19 My claim is that all of that is possible, but 20 according to the Casino Control Act, and I wish I 21 had it in front of me now, that they have a 22 process of doing that just as the state has a 23 process which is the same process. 24 Now, maybe the error is in the defiance 25 of them being lax in taking those particular 71 Public Participation 1 steps, but that's the same process. It's no 2 different than the process. 3 CHAIR KASSEKERT: There is no 4 exclusionary process for the casinos in the 5 Casino Control Act. There's exclusionary process 6 for the Commission and the Division to follow if 7 the Division files a petition, but that does not 8 pertain to someone that the casinos wish to 9 exclude themselves. It's entirely two separate 10 matters. Okay? 11 MR. JOHNSON: Okay. But we still didn't 12 get to the area why they wouldn't send that to 13 the Federal Bureau of Investigation. 14 COMMISSIONER FEDORKO: Because it's not 15 their jurisdiction. FBI don't get involved in 16 what happens here, unless it's a federal offense. 17 This is not a federal offense. 18 If the casinos deem you, if they decide 19 that they don't want you in the casino, you know, 20 for whatever reason, according to the Casino 21 Control Act, they can evict you. 22 MR. JOHNSON: Well, I have no objection 23 to the eviction part. I have objection to the 24 exclusion part. I'm under the belief that they 25 should have the same guidelines in due process as 72 Public Participation 1 the Casino Control Act states in regards to 2 public figures. I don't see any difference to 3 that. 4 COMMISSIONER FEDORKO: I assume that's 5 what they're basing their decision on, the Casino 6 Control Act. 7 COMMISSIONER EPPS: I think we're getting 8 into a matter of a semantics discussion and the 9 confusion in terms of the use of some terms, and 10 if you think -- I don't mean to be short -- but 11 if you think you have recourse, you might want to 12 at this point seek counsel to guide you through 13 your process the next step because we can't from 14 here give you legal advice, and I think we're at 15 an impasse where you need -- you need some legal 16 counsel to determine your next move, and we're 17 not able to give that to you. 18 The second point is, if there's -- us 19 being a state agency, if there's a request of 20 another government agency for documentation or 21 records, there are steps that we follow as state 22 agencies to get that information. So if there's 23 something that the FBI needs from the Casino 24 Control Commission, they are well-equipped to 25 make that request, and they would most certainly 73 Public Participation 1 get that, but inasmuch as you indicated to us 2 previously, that your participation is as a 3 voluntary assistant -- 4 MR. JOHNSON: Former. 5 COMMISSIONER EPPS: -- former voluntary 6 assistant, that's not the manner in which a 7 document request would normally flow. 8 So if the FBI is still waiting for 9 information, they have ways to communicate to us 10 what it is that they need, and they would usually 11 get it when it follows that proper form of 12 communication. 13 MR. JOHNSON: Okay. So I probably will 14 request of them to inquire into that. 15 COMMISSIONER EPPS: When they make that 16 request, it most probably would be responded to 17 immediately. 18 MR. JOHNSON: Okay, thank you. 19 CHAIR KASSEKERT: Thanks. 20 Anyone else from the public who wishes 21 to be heard? 22 (No response.) 23 CHAIR KASSEKERT: See no one, I will 24 declare this portion of the meeting closed and 25 entertain a motion to adjourn. 74 Public Participation 1 COMMISSIONER SOMMELING: Motion to 2 adjourn. 3 COMMISSIONER FEDORKO: Second. 4 CHAIR KASSEKERT: The motion has been 5 made and seconded. All in favor? 6 (Aye.) 7 CHAIR KASSEKERT: Opposed? 8 (No response.) 9 CHAIR KASSEKERT: The motion carries. 10 (The Commission members vote unanimously 11 in favor of the motion.) 12 (Whereupon, proceedings were adjourned 13 at 11:32 a.m.) 14 15 16 17 18 19 20 21 22 23 24 25 75 1 C E R T I F I C A T E 2 3 4 I, CHRISTINE STANCO, a Certified 5 Shorthand Reporter and Notary Public of the State 6 of New Jersey, do hereby certify that the 7 foregoing is a true and accurate transcript of 8 the stenographic notes as taken by and before me, 9 on the date and place hereinbefore set forth. 10 11 12 13 14 15 16 17 CHRISTINE STANCO, C.S.R. 18 LICENSE NO. XI00789 19 20 21 22 23 24 25