1 1 STATE OF NEW JERSEY 2 CASINO CONTROL COMMISSION 3 - - - - - - - - - - - - - - - - - - - 4 5 PUBLIC MEETING NO. 06-06-21 6 7 - - - - - - - - - - - - - - - - - - - 8 9 Wednesday, June 21, 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 10:40 a.m. to 11:22 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, COMMISSIONER 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 STEVEN M. INGIS, ASSISTANT GENERAL COUNSEL 10 SETH H. BRILIANT, SENIOR COUNSEL DENIS CORBETT, SENIOR COUNSEL 11 TERESA M. NAGENGAST, SENIOR COUNSEL BERNADETTE T. FRIGEN, PROGRAM SUPERVISOR 12 SANDRA DELIA, LEGAL SUPPORT SPECIALIST 13 DIVISION OF GAMING ENFORCEMENT: ASSISTANT ATTORNEYS GENERAL 14 ANTHONY ZARRILLO, ASSISTANT ATTORNEY GENERAL 15 DEPUTY ATTORNEYS GENERAL BRIAN BISCIEGLIA, DEPUTY ATTORNEY GENERAL 16 TIMOTHY FICCHI, DEPUTY ATTORNEY GENERAL JAMES FOGARTY, DEPUTY ATTORNEY GENERAL 17 RICK McDONOUGH, DEPUTY ATTORNEY GENERAL CYRUS P. PITRE, DEPUTY ATTORNEY GENERAL 18 DOROTHY TURI, DEPUTY ATTORNEY GENERAL 19 20 21 22 23 24 25 3 1 A P P E A R A N C E S : 2 ITEM NO. 6 STEVEN M. INGIS, SENIOR COUNSEL BRIAN BISCIEGLIA, DEPUTY ATTORNEY GENERAL 3 ITEM NO. 7 STEVEN M. INGIS, SENIOR COUNSEL 4 BRIAN BISCIEGLIA, DEPUTY ATTORNEY GENERAL 5 ITEM NO. 8 STEVEN M. INGIS, SENIOR COUNSEL RICK McDONOUGH, DEPUTY ATTORNEY GENERAL 6 PATRICIA WILD, ESQ. FOR: RESORTS INTERNATIONAL HOTEL 7 ITEM NO. 9 DENIS CORBETT, SENIOR COUNSEL 8 CYRUS P. PITRE, DEPUTY ATTORNEY GENERAL PATRICIA WILD, ESQ. 9 FOR: RESORTS MARIE JONES, ESQ. 10 FOR: HEATHER ALLEN 11 ITEM NO. 10 DENIS CORBETT, SENIOR COUNSEL ANTHONY ZARRILLO, ASSISTANT 12 ATTORNEY GENERAL N. LYNNE HUGHES, ESQ 13 FOR: BOARDWALK REGENCY CORP. 14 ITEM NO. 11 BERNADETTE T. FRIGEN, PROGRAM SUPERVISOR BRIAN BISCIEGLIA, DEPUTY ATTORNEY GENERAL 15 ITEM NO. 14 TERESA NAGENGAST, SENIOR COUNSEL 16 RICK McDONOUGH, DEPUTY ATTORNEY GENERAL PATRICK McAULEY, ESQ. 17 FOR: MICROSOFT CORPORATION 18 ITEM NO. 15 MARY WOZNIAK, ASSISTANT GENERAL COUNSEL DOROTHY TURI, DEPUTY ATTORNEY GENERAL 19 WOSNACK, ESQ. FOR: 20 ITEM NO. 18 SETH H. BRILIANT, SENIOR COUNSEL 21 22 ITEM NO. 19 SETH H. BRILIANT, SENIOR COUNSEL 23 24 25 4 1 AGENDA PUBLIC MEETING NO. 06-06-21 2 June 21, 2006, 10:40 a.m. ITEM PAGE VOTE 3 1 Ratification of the minutes of 9 9 4 June 7, 2006 meeting 2 Applications for employee and casino 9 10 5 Service industry licenses 3 Petition of Marina District Development 12 13 6 Company, LLC (d/b/a Borgata Hotel Casino & Spa) for the issuance of a temporary 7 casino key employee license to Signe Huff pursuant to NJSA 5:12-89(e) and to permit 8 her pursuant to NJAC 19:43-2.6 to assume the duties and exercise the powers of Vice 9 President of Talent without first having Been found qualified (PRN 1450613) 10 4 Petition of Trump Taj Mahal Associates, adj. LLC, Trump Plaza Associates, LLC, and 11 Trump Marina Associates, LLC, for the issuance of a temporary casino key employee 12 license to Gary Ng pursuant to NJSA 5:12-89(e) and to permit him pursuant to NJAC 19:43-2.6 13 to assume the duties and exercise the powers of Senior Vice President of Asian Player 14 Development without first having been found qualified (PRN 1600603) 15 5 Stipulations of settlement and consent agreements a) Jessier Soriano (05-0848-EA) 13 15 16 b) Francis A. DiJohn, Jr. (04-0828-ER) 13 15 c) Carlton S. Evans (06-0005-ER) 13 15 17 d) Kamil A. Zaffa (05-0776-ER) 13 15 e) George A. Johnson (06-0159-EA) 13 15 18 f) Xiao F. Chu (a/k/a Danny Chu) 13 15 (06-0101-EA) 19 g) Donna M. James (05-0029-EA) 13 15 h) Elaine P. Maffeo (05-0817-ER) 13 15 20 i) Anthony F. Ruffo, II (05-0725-ER) 13 15 j) Guy A. Woods, Jr. (05-0678-ER) 13 15 21 k) Schneider Laguerre (06-0175-ER) 13 15 l) Anthony P. Cantelmi (06-0101-EA) 13 15 22 6 Initial Decision in application of Scott 15 16 C. Burzynski (05-0731-EA) 23 7 Initial Decision in application of 17 17 Emmitt Worthy, III, (05-0483-RC) 24 8 Stipulation of settlement in State v. 23 25 Resorts International Hotel, Inc. (06-0138-VC) 25 5 1 AGENDA CONTINUED PUBLIC MEETING NO. 06-06-21 2 June 21, 2006, 10:40 a.m. ITEM PAGE VOTE 3 9 Stipulation of settlement in State v. 23 25 4 Resorts International Hotel, Inc., (d/b/a Resorts Atlantic City), Heather 5 Allen, and Richard Cook (06-0069-VC) 10 Stipulation of settlement in State v. 26 27 6 Boardwalk Regency Corporation (d/b/a) Caesars Atlantic City (05-0307-VC) 7 11 Petition of Juan C. Gonzalez for early 30 33 reapplication (06-0147-RA) 8 12 Motion of the Division of Gaming 34 35 Enforcement for a temporary prohibitory 9 order concerning Omnicon, Inc., and Mikhail Erman (06-0306-MI) 10 13 Applications for Suspension a) Doneesha T. Cross (06-0316-RC) 36 37 11 b) Hoa T. Dam (06-0317-RC) 36 37 c) Moni Kazi (06-0275-RC) 36 37 12 14 Petition of Microsoft Corporation for 38 41 waiver from certain disclosure requirements 13 (PRN 0830601) 15 Petition of Harrah's Operating Company, 41 43 14 Inc., Marina Associates, Atlantic City Showboat, Inc., Bally's Park Place and 15 Boardwalk Regency Corp. For waiver of qualification for certain officer of HOC 16 (Brad Belhouse and Brad Hirsch)(PRN 1590623) 16 Petition of Marina District Development 44 45 17 Company, LLC, (d/b/a Borgata Hotel Casino & Spa) requesting permission for Gage Parrish 18 to perform the duties and exercise the powers of Vice President of Finance for Boyd 19 Gaming Corporation pending plenary qualification (PRN 1450602) 20 17 Petition of Boardwalk Regency Corporation 46 47 (d/b/a Caesars Atlantic City) for an 21 amendment to its certificate of operation and casino hotel alcoholic beverage license 22 to permit a reconfiguration and expansion of its casino floor (PRN 1590624) 23 18 Petition of IGT for approval of an 47 48 agreement to administer certain Multi-Casino 24 Slot System Trust Agreement (PRN 1570614) 25 6 1 AGENDA CONTINUED PUBLIC MEETING NO. 06-06-21 2 June 21, 2006, 10:40 a.m. ITEM PAGE VOTE 3 19 Proposed adoption of amendments to 48 49 4 NJAC 19:45-1.8 (Retention of Redeemed Gaming Vouchers, Cashed Pari-Mutual Tickets 5 and Cashed Credit Vouchers) 20 Petition of Lakes Entertainment, Inc., 49 50 6 and Trump Taj Mahal Casino Resort for Approval of "World Poker Tour All-in Hold'em" 7 (PRN 1380602) 21 Proposed adoption of amendments and 51 51 8 new rules for Flop Poker 22 Proposed publication and temporary 51 52 9 adoption of amendment to NJAC 19:46-1.6 (Commingled Value Chip Inventories) 10 23 Proposed publication and temporary 52 53 adoption of amendments to NJAC 19:45-1.9B 11 and 1.09C (Complementary Reporting of Cash and Noncash Gifts) 12 24 Proposed publication of amendments 53 54 concerning alternative procedure for 13 Pre-Inspection and Pre-Shuffling of Cards 25 Temporary adoption of amendments for the 55 57 14 Ten Bonus Wagers ("Bonus Bet 21 with Multi Bets") in Blackjack; Reauthorization of 15 Rulemaking experiment for the Ten Bonus Wagers in Blackjack 16 26 Proposed temporary adoption of amendments 57 59 and new rules for Asia Poker; Authorization 17 of rulemaking experiment for Asia Poker pursuant to NJSA 5:12-69e 18 27 Stipulation of settlement in application 28 29 of Joseph Sarnese for renewal of a casino 19 key employee license and qualification (06-0190-ER) 20 28 Petition of Division of Gaming adj. Enforcement to grant testimonial 21 immunity in the matter of Investigation of Interstate Industrial Corporation, 22 Interstate Drywall Corporation, Frank DiTommaso, and Peter DiTommaso (06-0339-MI) 23 24 25 7 1 E X H I B I T S : 2 ITEM NO. 2 DESCRIPTION PAGE 3 4 EL-1 Remand for hearings 16 license 9 applications 5 Julius Silvert, Inc., remand for hearing EL-2 Grant 10 licenses 11 6 Joseph A. Corbo, VP, General Counsel For Marina District Development 7 John W. Payne, Regional President of Atlantic City Operations, Marina 8 Associates, Atlantic City Showboat, Inc., Bally's Park Place, Inc., and Boardwalk 9 Regency Corporation 10 ITEM NO. 3 Petition No. 1450613, Marina District 12 11 Development Company, LLC, Signe Huff 12 13 14 15 (Exhibits retained by Commission.) 16 17 18 19 20 21 22 23 24 25 8 1 (Public Meeting 06-06-21 was commenced at 2 10:40 a.m.) 3 MR. NANCE: Good morning. I'd like to read 4 an opening 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 Pledge of Allegiance was recited.) 9 ITEM NO. 2 1 MR. NANCE: Good morning. 2 The matters discussed in closed session 3 were: Employee and enterprise license matters. 4 The Commission approved the June 7th, 2006, 5 closed session minutes. 6 Litigation update regarding Warren Lackland 7 and Lewis M. Springer, Jr., versus the State of New 8 Jersey, Casino Control Commission and Tyron J. Floyd 9 versus Casino Control Commission, and Sands Hotel 10 Casino. 11 Item No. 1, ratification of the minutes of 12 June 7th, 2006, public meeting. 13 COMMISSIONER FEDORKO: Motion to approve. 14 COMMISSIONER SOMMELING: 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 MR. NANCE: Item No. 2, applications for 22 employee and casino service industry licenses. This 23 agenda item will be entered as Exhibit List 1 and 2. 24 Exhibit List 1 consists of 16 applications 25 for initial and/or renewal of casino key and casino 10 ITEM NO. 2 1 employee licenses. 2 The Division has objected to licensure. 3 VICE CHAIR FRULIO: Motion to remand for 4 hearings. 5 COMMISSIONER FEDORKO: Second. 6 CHAIR KASSEKERT: The motion has been made 7 and seconded. All in favor? 8 (Ayes.) 9 CHAIR KASSEKERT: Opposed? 10 (No response.) 11 CHAIR KASSEKERT: The motion carries. 12 MR. NANCE: For consideration is the casino 13 service industry license application of Julius 14 Silvert, Inc. 15 The Division has objected to this 16 application. 17 VICE CHAIR FRULIO: Motion to remand for 18 hearing. 19 COMMISSIONER FEDORKO: Second. 20 CHAIR KASSEKERT: The motion has been made 21 and seconded. All in favor? 22 (Ayes.) 23 CHAIR KASSEKERT: Opposed? 24 (No response.) 25 CHAIR KASSEKERT: The motion carries. 11 ITEM NO. 2 1 MR. NANCE: Exhibit List 2 consists of 10 2 applications for initial and/or renewal of casino 3 key and casino employee licenses. 4 Staff and the Division have recommended that 5 these licenses be granted. 6 VICE CHAIR FRULIO: Motion to grant 7 applications. 8 COMMISSIONER FEDORKO: Second. 9 CHAIR KASSEKERT: The motion has been made 10 and seconded. All in favor? 11 (Ayes.) 12 CHAIR KASSEKERT: Opposed? 13 (No response.) 14 CHAIR KASSEKERT: The motion carries. 15 MR. NANCE: For consideration are the 16 following applications for initial and/or renewal of 17 casino key employee licenses and for qualification: 18 For Joseph A. Corbo, Vice President and General 19 Counsel for Marina District Development Company, 20 LLC; and John W. Payne, Regional President of 21 Atlantic City Operations for Marina Associates, 22 Atlantic City Showboat, Inc., Bally's Park Place, 23 Inc., and Boardwalk Regency Corp. 24 Staff and Division have recommended these 25 these applications be granted. 12 ITEM NO. 3 1 VICE CHAIR FRULIO: Motion to grant initial 2 and renewal applications. 3 COMMISSIONER FEDORKO: Second. 4 CHAIR KASSEKERT: Motion is made and 5 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 that the 17 motion is unanimous. 18 Item No. 3, Petition No. 1450613 of Marina 19 District Development Company, LLC, is requesting the 20 issuance of a temporary casino key employee license 21 to Signe Huff pursuant to NJSA 5:12-89(e) and to 22 permit her pursuant to NJAC 19:43-2.6 to assume the 23 duties and exercise the powers of Vice President of 24 Talent without first having been qualified. 25 Staff and the Division have recommended that 13 ITEM NO. 4-5 1 this petition be granted. 2 VICE CHAIR FRULIO: Motion to grant 3 temporary key license and qualification. 4 COMMISSIONER FEDORKO: Second. 5 CHAIR KASSEKERT: Motion has been made and 6 seconded. This is a roll call vote. 7 MR. NANCE: Commissioner Sommeling? 8 COMMISSIONER SOMMELING: Yes. 9 MR. NANCE: Commissioner Epps? 10 COMMISSIONER EPPS: Yes. 11 MR. NANCE: Commissioner Fedorko? 12 COMMISSIONER FEDORKO: Yes. 13 MR. NANCE: Vice Chair Frulio? 14 VICE CHAIR FRULIO: Yes. 15 MR. NANCE: Chair Kassekert? 16 CHAIR KASSEKERT: Yes. 17 MR. NANCE: The record will reflect that the 18 motion is unanimous. 19 Item No. 4 has been adjourned at the request 20 of the Division. 21 Item No. 5, stipulation of settlement and 22 consent agreements. When I call your name, please 23 come forward and stand behind the middle table 24 spreading across the room so that you may be seen: 25 Jessier Soriano, Francis DiJohn, Jr., Carlton Evans, 14 ITEM NO. 5 1 Kamil Zaffa, George Johnson, Xiao Chu, Donna James, 2 Elaine Maffeo, Anthony Ruffo, II, Guy Woods, Jr., 3 Schneider Laguerre, and Anthony Cantelmi. 4 CHAIR KASSEKERT: Has everyone whose name 5 been called come forward? 6 I'm going to ask that you each state your 7 name, starting with you. 8 MR. WOODS: Guy Woods. 9 MR. DiJOHN: Francis DiJohn, Jr. 10 MR. CANTELMI: Anthony Cantelmi. 11 MR. JOHNSON: George Johnson. 12 CHAIR KASSEKERT: Okay. In a moment we're 13 going to vote on the stipulations which you've 14 agreed to with the Division of Gaming Enforcement. 15 I'm going to ask at this point if any of you wish to 16 be heard on your matter. You do not have to say 17 anything if you do not want to. Does anyone wish to 18 be heard? 19 Okay. Very good. 20 Mr. Biscieglia. 21 MR. BISCIEGLIA: Good morning, Chair, Vice 22 Chair, Commissioners. 23 The Division has nothing further to add and 24 ask that the stipulations be adopted. Thank you. 25 CHAIR KASSEKERT: Thank you. 15 ITEM NO. 6 1 Any questions? 2 COMMISSIONER SOMMELING: Madame Chair, I 3 move to approve the stipulations. 4 COMMISSIONER FEDORKO: 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 Thank you very much for coming. Good luck. 12 FROM THE FLOOR: Thank you. 13 MR. NANCE: Item No. 6, initial decision 14 application of Scott C. Burzynski. 15 Mr. Ingis? 16 MR. INGIS: Good morning, Madame Chair, 17 Commissioners. 18 I would ask if Mr. Burzynski is present in 19 the meeting room or represented by counsel? 20 Apparently not. 21 This is an initial decision of Commissioner 22 Sommeling which recommends a disqualification and 23 denial of casino employee license application and a 24 prohibition of employment by a casino licensee in 25 any capacity. 16 ITEM NO. 7 1 No exceptions were filed. And Brian 2 Biscieglia is here on behalf of the Division. 3 CHAIR KASSEKERT: Thank you. 4 Mr. Biscieglia? 5 MR. BISCIEGLIA: Thank you, Chair. 6 The Division filed no exceptions and 7 respectfully ask that the decision be adopted. 8 Thank you. 9 CHAIR KASSEKERT: Thank you. 10 Any questions? 11 COMMISSIONER FEDORKO: Motion to adopt the 12 initial decision and find Mr. Burzynski disqualified 13 and deny his casino employee license application and 14 prohibit him from employment by a casino licensee in 15 any capacity. 16 VICE CHAIR FRULIO: 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. 7, initial decision 24 application of Emmitt Worthy, III. 25 Mr. Ingis? 17 ITEM NO. 7 1 MR. INGIS: I would ask if Mr. Worthy is 2 present in the meeting room or represented by 3 counsel? Apparently not. 4 CHAIR KASSEKERT: Mr. Biscieglia? 5 MR. BISCIEGLIA: Thank you. 6 Once again, the Division did not file any 7 exceptions with this case and respectfully ask that 8 the Commission adopt the initial decision. 9 CHAIR KASSEKERT: Thank you. 10 Any questions? 11 MR. BISCIEGLIA: Thank you. 12 COMMISSIONER SOMMELING: Madame Chair, move 13 to adopt the initial decision and find Mr. Worthy 14 disqualified from licensure; continue in effect the 15 order dated October 20, 2004, and revoke his casino 16 service employee service registration, and prohibit 17 Respondent from employment by a casino licensee in 18 any capacity. 19 COMMISSIONER FEDORKO: Second. 20 CHAIR KASSEKERT: The motion has been made 21 and seconded. All in favor? 22 (Ayes.) 23 CHAIR KASSEKERT: Opposed? 24 (No response.) 25 CHAIR KASSEKERT: The motion carries. 18 ITEM NO. 8 1 MR. BISCIEGLIA: Thank you. 2 CHAIR KASSEKERT: Commissioner Frulio, you 3 abstain? 4 VICE CHAIR FRULIO: Yes. 5 CHAIR KASSEKERT: Let the record reflect 6 that Commissioner Frulio abstains. 7 Thank you. 8 MR. NANCE: Item No. 8, stipulation of 9 settlement in State versus Resort International 10 Hotel, Inc. 11 Mr. Ingis? 12 MR. INGIS: Good morning again. I note the 13 presence of Pat Wild on behalf of Resorts and Rick 14 McDonough on behalf of the Division of Gaming 15 Enforcement. 16 This is a stipulation in which, if approved, 17 will result in the imposition of a civil penalty in 18 the amount of $35,000 against Resorts 19 CHAIR KASSEKERT: Thank you. 20 Good morning. 21 MR. McDONOUGH: Good morning. 22 MS. WILD: Good morning. 23 CHAIR KASSEKERT: Stipulations, so we'll let 24 the Division go first. 25 MR. McDONOUGH: Thank you. 19 ITEM NO. 8 1 Good morning, Madame Chair and 2 Commissioners. This matter had its genesis in 3 September 2004 as a result of a hearing that was 4 held before you at that time involving a company 5 called High Gate Steel. You probably remember that. 6 High Gate at the time was a prohibited vendor -- 7 still is a prohibited vendor. And we had discovered 8 that it was doing work on a casino contract on the 9 Pier at Caesars and filed a motion for relief from 10 that prohibitory order. We held a hearing before 11 you, you denied that relief, and as an outgrowth of 12 that hearing, the Division undertook an 13 investigation of High Gate. And we learned that the 14 Pier at Caesars was one of only about five or six 15 other casino contracts that it had obtained and 16 worked on in violation of your prohibitory order. 17 We did approximately 24 sworn interviews in 18 the course of our investigation of those violations, 19 and we performed about 40 investigative interviews, 20 and looked at thousands of pages of documents during 21 the course of the ensuing investigations. As a 22 result of all that, we filed an objection to the 23 High Gate renewal, which that objection is pending 24 before the Commission now. We also filed the 25 complaint that is here before you today for 20 ITEM NO. 8 1 settlement, and we filed the companion complaint 2 against a company called Weatherby and that is also 3 pending before you. 4 We concluded that we would send warning 5 letters to the other casinos and the other CSIs that 6 were involved in our investigation and shared you a 7 copy on those warning letters. 8 The case that's before you today for 9 settlement is the most serious of all of the other 10 five or six violations that we discovered during the 11 course of our investigation. What happened 12 essentially is laid out in my complaint and in the 13 settlement. We had a former employee of the casino 14 who found out that High Gate Steel was being used as 15 a secondary subcontractor on the Resorts expansion 16 project a few years ago, and when this former 17 employee found out that High Gate was being used, 18 the former employee called Weatherby Construction, 19 the company that had subbed out the job to High 20 Gate, and asked Weatherby to submit phoney lists, 21 phoney subcontractor certifications lists that 22 omitted the name of High Gate. 23 And this is all uncontested. Miss Wild 24 agrees with me. This is what happened. This was 25 done by the former employee. 21 ITEM NO. 8 1 The former employee became a former employee 2 in December of 2005 shortly after we took her sworn 3 interview. She denied in the sworn interview the 4 conduct that we allege in the complaint. And we did 5 never did find out, and we never may find out, why 6 the former employee concocted this scheme to submit 7 phoney lists to you. We may never know the answer 8 as to why. 9 But we did do an investigation that included 10 the superior of this former employee, this Diane 11 Dixon, who I believe is your Executive Director of 12 Purchasing; is that correct? 13 MS. WILD: That's correct. 14 MR. McDONOUGH: We did a sworn interview of 15 Miss Dixon, and she denied any involvement in or any 16 knowledge of the scheme that was engaged in by the 17 former employee. And so we are satisfied that the 18 misconduct stopped with that former employee and did 19 not rise any higher. 20 As a result of that, we filed a complaint, 21 had settlement discussions with Miss Wild, and we 22 have agreed on a fine of $35,000, which is what we 23 ask you to approve today. 24 CHAIR KASSEKERT: Thank you. 25 MR. McDONOUGH: If you have any questions 22 ITEM NO. 8 1 about this, I'll be happy to respond to them. Thank 2 you. 3 CHAIR KASSEKERT: Any questions for Mr. 4 McDonough? 5 COMMISSIONER SOMMELING: No questions, 6 Madame Chair. 7 CHAIR KASSEKERT: Miss Wild? 8 MS. WILD: Thank you. I just want to say 9 that I think Mr. McDonough has accurately and fairly 10 summarized the investigation that was undertaken. 11 We at Resorts were as puzzled by this as the 12 Division. We are also gratified to find out that 13 our Executive Director of Purchasing was as shocked 14 at this as anyone was. So in summary I just ask 15 that you accept and approve the stipulation and 16 enter the relief that we seek therein. 17 Thank you. 18 CHAIR KASSEKERT: Thank you. 19 Any questions? 20 COMMISSIONER SOMMELING: No questions, 21 Madame Chair. 22 COMMISSIONER EPPS: Madame Chair, I move 23 that we approve the stipulation and impose a civil 24 penalties of $35,000 against Resorts International 25 Hotel Incorporated, for violation of Commission 23 ITEM NO. 9 1 Regulations regarding NJSA 12:104b and NJAC 2 12:10.6(a)5. 3 COMMISSIONER SOMMELING: 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. McDONOUGH: Thank you very much. 11 CHAIR KASSEKERT: Thank you. 12 MS. WILD: Thank you. 13 MR. NANCE: Item No. 9, stipulation of 14 settlement in State versus Resorts International 15 Hotel, Inc., Heather Allen, and Richard Cook. 16 Mr. Corbett? 17 MR. CORBETT: Good morning, Chair, 18 Commissioners. 19 In this particular case, we have two 20 stipulations, one the casino licensee agrees to pay 21 a penalty of $103,000 for violating surveillance 22 department regulations, and the individual 23 Respondent Heather Allen agrees to a three-month 24 license suspension for casino key employee license 25 for the same violations. 24 ITEM NO. 9 1 My understanding is that Mr. Pitre has an 2 amendment to make to the stipulation? 3 MR. PITRE: That's correct. Good morning, 4 Chair, Commission. 5 CHAIR KASSEKERT: Good morning. 6 MR. PITRE: We would like to have the 7 stipulation with regard to Miss Allen amended to 8 remove the issuance of a letter of reprimand as Miss 9 Allen is no longer employed at Resorts. 10 CHAIR KASSEKERT: Thank you. 11 MR. PITRE: With -- do you want me to -- 12 CHAIR KASSEKERT: Yeah. Go ahead. 13 MR. PITRE: With regard to other the 14 remaining stipulations with Resorts and Miss Allen, 15 we would urge the Commission to adopt as submitted. 16 CHAIR KASSEKERT: Thank you. 17 Any questions for the Division? 18 COMMISSIONER SOMMELING: No questions, 19 Madame Chair. 20 CHAIR KASSEKERT: Miss Wild, would you -- 21 MS. WILD: I'll speak for Resorts, first. 22 CHAIR KASSEKERT: Sure. 23 MS. WILD: We also urge the acceptance of 24 the stipulation and the imposition of the fine. 25 CHAIR KASSEKERT: Thank you. 25 ITEM NO. 9 1 Miss Jones? 2 MS. JONES: Thank you. Good morning, Chair 3 and Commissioners. 4 I'm here representing Miss Allen, and Miss 5 Allen is also here this morning, and we would 6 likewise urge to you adopt the stipulation with the 7 amendment. 8 CHAIR KASSEKERT: Thank you. 9 Any questions. 10 COMMISSIONER SOMMELING: No questions, 11 Madame Chair. 12 COMMISSIONER EPPS: No. 13 COMMISSIONER FEDORKO: Motion to approve 14 stipulations and assess the following penalties, 15 regarding NJAC 5:45-1.3 and 1.10d and 1.11a, impose 16 a civil penalty of $103,000 against Resorts 17 International Hotel, Inc., and suspend Heather 18 Allen's casino key employee license for a period of 19 three consecutive months. 20 VICE CHAIR FRULIO: Second. 21 CHAIR KASSEKERT: The motion has been made 22 and seconded. All in favor? 23 (Ayes.) 24 CHAIR KASSEKERT: Opposed? 25 (No response.) 26 ITEM NO. 10 1 CHAIR KASSEKERT: The motion carries. 2 Thank you. 3 MS. WILD: Thank you. 4 MS. JONES: Thank you. 5 MR. CORBETT: Chair, just one other item on 6 this case, the other individual Respondent, Cook, we 7 understand that Lloyd Levenson represents him, and a 8 stipulation will be filed shortly in that matter. 9 CHAIR KASSEKERT: Thank you. 10 MR. PITRE: That's correct. 11 MR. NANCE: Item No. 10, stipulation of 12 settlement in State versus Boardwalk Regency Corp. 13 Mr. Corbett? 14 MR. CORBETT: Chair, Miss Hughes is here for 15 the casino licensee and Mr. Zarrillo for the 16 Division. 17 In this particular stipulation, the casino 18 licensee agrees to pay a penalty of $185,000 for its 19 employees engaging in improper surveillance 20 activity. 21 CHAIR KASSEKERT: Thank you. 22 Mr. Zarrillo? 23 MR. ZARRILLO: Good morning, Chair, 24 Commissioners. Anthony Zarrillo on behalf of the 25 Division of Gaming Enforcement. 27 ITEM NO. 10 1 I just ask that you accept the terms of the 2 stipulated agreement. We have nothing to add. Of 3 course, I'm open to any questions you may have. 4 CHAIR KASSEKERT: Thank you. 5 Any questions? 6 COMMISSIONER SOMMELING: No questions, 7 Madame Chair. 8 No questions, Madame Chair. 9 CHAIR KASSEKERT: Miss Hughes? 10 MS. HUGHES: Thank you. I also have 11 reviewed over this stipulation and urge your 12 acceptance and approval of it. 13 CHAIR KASSEKERT: Thank you. 14 Any questions? 15 VICE CHAIR FRULIO: Move to approve the 16 stipulations and impose a civil penalty of $185,000 17 against Boardwalk Regency Corporation for violation 18 of Commission regulations regarding NJAC 19:45-1.10 19 and 1.11. 20 COMMISSIONER FEDORKO: Second. 21 CHAIR KASSEKERT: The motion has been made 22 and seconded. All in favor? 23 (Ayes.) 24 CHAIR KASSEKERT: Opposed? 25 (No response.) 28 ITEM NO. 27 1 CHAIR KASSEKERT: The motion carries. 2 Thank you. 3 MR. ZARRILLO: Thank you. 4 MR. NANCE: For your consideration, Item No. 5 27, stipulation of settlement and application of 6 Joseph Sarnese for renewal of a casino key employee 7 license and qualification. 8 Mr. Corbett? 9 MR. CORBETT: Chair, Commissioners, Mr. 10 Michael is here on behalf of the applicant 11 qualifier. 12 MR. MICHAEL: Good morning. 13 MR. CORBETT: And Mr. Fogarty on behalf of 14 Division. 15 CHAIR KASSEKERT: Thank you. 16 Mr. Fogarty? 17 MR. FOGARTY: Good morning, Chair, 18 Commissioners. 19 There has been a stipulation of settlement 20 presented to you for your consideration with regard 21 to this matter. We at the Division -- I on behalf 22 of the Division have signed off on it, and we'd ask 23 you to please approve it. 24 CHAIR KASSEKERT: Thank you. 25 Mr. Michael? 29 ITEM NO. 27 1 MR. MICHAEL: Thank you, Madame Chair, 2 members of the Commission. Good morning. 3 On behalf of Mr. Sarnese, first, he 4 apologizes for not being able to be here today. He 5 had a medical situation that prevented him from 6 being in attendance. But he, and I on his behalf, 7 thank the Division and Division's staff for their 8 work in this matter and urge you approve the 9 stipulations. 10 CHAIR KASSEKERT: Thank you. 11 Any questions? 12 COMMISSIONER SOMMELING: No questions, 13 Madame Chair. 14 COMMISSIONER FEDORKO: Motion to approve 15 stipulation and grant Joseph Sarnese's application 16 for renewal of casino key employee license and 17 qualification subject to the conditions in the 18 order. 19 COMMISSIONER SOMMELING: Second. 20 VICE CHAIR FRULIO: Second. 21 CHAIR KASSEKERT: The motion has been made 22 and seconded. All in favor? 23 (Ayes.) 24 CHAIR KASSEKERT: Opposed? 25 (No response.) 30 ITEM NO. 11 1 CHAIR KASSEKERT: I will be abstaining in 2 this matter. 3 MR. CORBETT: Chair, I believe this calls 4 for a roll call vote because of the qualification? 5 CHAIR KASSEKERT: Is it a roll call vote? 6 MR. INGIS: You've already voted, so it's 7 okay. 8 Ordinarily, a roll call vote would have been 9 in order because there's a qualification issue, 10 however, you've also voted and the requisite four 11 votes were obtained, so I think that's your 12 discretion. 13 CHAIR KASSEKERT: Okay. It was not noted on 14 the log sheets. Thank you. 15 MR. MICHAEL: Okay. Thank you. 16 MR. FOGARTY: Thank you. 17 MR. NANCE: Item No. 11, petition of Juan 18 Gonzalez for early reapplication. 19 Miss Frigen? 20 MS. FRIGEN: Good morning, Madame Chair, 21 Commissioners. 22 Is Juan Gonzales present or represented? 23 Apparently not. 24 For your consideration is his petition in 25 which he seeks permission to obtain noncredential 31 ITEM NO. 11 1 hotel employment early. By letter dated June 5th, 2 the Division has interposed an objection to this 3 petition 4 CHAIR KASSEKERT: Thank you. 5 Mr. Biscieglia? 6 MR. BISCIEGLIA: Thank you, Chair Kassekert. 7 As Miss Frigen just stated the Division does 8 oppose this petition. Respondent's casino service 9 employee registration was originally revoked by 10 Commission order on September 26, 2001, based upon a 11 May 25th, 2001, theft arrest for theft by unlawful 12 taking where Responded admitted to cashing in $480 13 worth of stolen bus coupons at the Trump Marina. He 14 was convicted of theft by deception, fourth degree, 15 on May 31st, 2002, and sentenced to five years 16 probation. 17 Following this conviction, on December 6, 18 2002, the Respondent violated his probation by 19 failing a urine screening. And, once again, on 20 January 16th of 2004, the Respondent again violated 21 probation by failing a urine screening. 22 After the second violation of probation, his 23 probation was revoked. He was sentenced to 365 days 24 incarceration, which he served. 25 Following the criminal charges that were the 32 ITEM NO. 11 1 basis of the original revocation, on February 8th, 2 2003, Respondent was arrested by Atlantic City 3 Police Department for simple assault in which he 4 allegedly choked and slapped the victim. It was a 5 domestic issue. This was dismissed but the 6 Respondent failed to disclose this arrest on his 7 reapplication petition. 8 Once again, on June 9th, 2004, Respondent 9 was again arrested for simple assault, a domestic 10 issue, causing bodily injury of bruising and 11 swelling to the victim's eye. This case was also 12 dismissed but, once again, the Respondent failed to 13 disclose it on his reapplication petition. 14 And following that on December 4, 2004, the 15 Respondent was again arrested for simple is assault. 16 Once again this was a domestic issue. That was 17 dismissed, and he failed to disclose on his 18 petition. 19 In addition to those matters, on October 20 22nd, 2005, he was apprehended by Atlantic City 21 Police Department on four outstanding warrants for 22 child support. And on November 16th of 2005, he was 23 arrested for criminal mischief for breaking a 24 windshield. And this case was dismissed but 25 failed -- the Respondent, once again, failed to 33 ITEM NO. 11 1 disclose it. 2 In decision to the numerous arrests in his 3 background since his -- the initial revocation, he 4 provided us with no supporting documentation in 5 support of the current petition. 6 So based upon the seriousness of the 7 original offense, the multiple arrests that have 8 occurred since then, the repeated violations of 9 probation, and the fact that the Respondent provided 10 us with no supporting documentation to support his 11 petition, the Division cannot conclude that he has 12 shown good cause to be allowed to work in a 13 noncredential position and respectfully ask that the 14 Commission deny his petition. 15 Thank you. 16 CHAIR KASSEKERT: Thank you. 17 Any questions for Mr. Biscieglia? 18 COMMISSIONER SOMMELING: No questions, 19 Madame Chair. 20 COMMISSIONER EPPS: I move that we deny Mr. 21 Gonzalez's petition to obtain employment early as a 22 non-credential hotel employee. 23 COMMISSIONER SOMMELING: Second. 24 CHAIR KASSEKERT: The motion has been made 25 and seconded. All in favor? 34 ITEM NO. 12 1 (Ayes.) 2 CHAIR KASSEKERT: Opposed? 3 (No response.) 4 CHAIR KASSEKERT: The motion carries. 5 Thank you. 6 MR. BISCIEGLIA: Thank you. 7 MR. NANCE: Item No. 12, motion of the 8 Division of Gaming Enforcement for a temporary 9 prohibitory order concerning Omnicon and Mikhail 10 Erman. 11 Miss Frigen? 12 MS. FRIGEN: Before we hear from the 13 Division, Mr. McDonough, let me ask whether there's 14 anybody here on behalf of Omnicon, Inc., or Mikhail 15 Erman? Apparently not. 16 CHAIR KASSEKERT: Mr. McDonough? 17 MR. McDONOUGH: Yes. Good morning. 18 This is yet again a boxer or entertainment 19 company before you today with ties to a person that 20 you have on your prohibited list, and that person is 21 named Vlad Lavrinovich. 22 This company, Omnicon, failed to cooperate 23 with our attempts to investigate its qualifications 24 as a vendor. These are detailed in an affidavit 25 that was in an exhibit to the motion that I filed 35 ITEM NO. 12 1 with you. 2 Again, this is just one of several companies 3 with ties to this individual, Lavrinovich, who has 4 failed or refused to cooperate when we try to 5 investigate. They seem to keep popping up. And 6 we're going to keep finding them. And if they don't 7 cooperate, we're going to be before you asking for 8 more prohibitory temporary orders. 9 And if you have any questions regarding this 10 one, I'll be happy to answer it. 11 Thank you. 12 CHAIR KASSEKERT: Thank you. Any questions? 13 VICE CHAIR FRULIO: Move to grant the 14 Division of Gaming Enforcement's motion and issue a 15 temporary prohibitory order concerning Omnicon, 16 Inc., and Mikhail Erman pending further order of the 17 Commission. 18 COMMISSIONER FEDORKO: Second. 19 CHAIR KASSEKERT: The motion has been made 20 and seconded. All in favor? 21 (Ayes.) 22 CHAIR KASSEKERT: Opposed? 23 (No response.) 24 CHAIR KASSEKERT: The motion carries. 25 MR. McDONOUGH: Thank you. 36 ITEM NO. 13 1 MR. NANCE: Item No. 13, application for 2 suspension for Doneesha Cross, Hoa Dam, and Moni 3 Kazi. 4 Miss Frigen? 5 MS. FRIGEN: Before we hear from the 6 Division, let me ask whether any of these 7 individuals who were just named are present or 8 represented, Doneesha Cross, Hoa Dam, or Moni Kazi? 9 Apparently not. 10 CHAIR KASSEKERT: Mr. Biscieglia? 11 MR. BISCIEGLIA: Thank you. 12 The only thing the Division would like to 13 add in addition to our suspension application is the 14 fact that in the case of Hoa Dam, that on April 15 26th, 2006, he pled guilty to a downgraded charge of 16 improper behavior. He was fined $658, sentenced to 17 one-year probation, and ordered to pay $100 18 restitution to the victim. 19 In the cases of Denise Cross and Moni Kazi, 20 they are both awaiting pending a grand jury with no 21 date set. 22 CHAIR KASSEKERT: Thank you. 23 Any questions? 24 COMMISSIONER SOMMELING: Move to suspend the 25 credentials, Madame Chair. 37 ITEM NO. 13 1 CHAIR KASSEKERT: Are we going to call A 2 separately? Why don't we call -- Commissioner 3 Sommeling, why don't we amend your motion to call 4 item A, Doneesha Cross, separately, please? 5 COMMISSIONER SOMMELING: Very well. I make 6 that motion, Madame Chair. 7 COMMISSIONER FEDORKO: Second. 8 CHAIR KASSEKERT: The motion has been made 9 and seconded. All in favor? 10 (Ayes.) 11 CHAIR KASSEKERT: Opposed? 12 (No response.) 13 COMMISSIONER EPPS: Abstain. 14 CHAIR KASSEKERT: Please note that 15 Commissioner Epps abstained. 16 And now you can make a motion for the other 17 two. 18 COMMISSIONER SOMMELING: Yes. Madame Chair, 19 I move to suspend the credentials for Hoa T. Dam and 20 Moni Kazi. 21 COMMISSIONER FEDORKO: Second. 22 CHAIR KASSEKERT: The motion has been made 23 and seconded. All in favor? 24 (Ayes.) 25 CHAIR KASSEKERT: Opposed? 38 ITEM NO. 14 1 (No response.) 2 CHAIR KASSEKERT: The motion carries. 3 Thank you. 4 MR. BISCIEGLIA: Thank you. 5 MR. NANCE: Item No. 14, petition of 6 Microsoft Corporation for waiver from certain 7 disclosure requirements. 8 Miss Nagengast? 9 MS. NAGENGAST: Good morning, Chair, 10 Commissioners. 11 You have before you today a petition by 12 Microsoft Corporation seeking to have the Commission 13 rule that Bill Gates and Steve Ballmer not file the 14 requisite qualified disclosure forms in order for 15 Microsoft's application to be deemed complete. 16 Patrick McAuley is here on behalf of the 17 Petitioner, and Mr. McDonough on behalf of the 18 Division. 19 CHAIR KASSEKERT: Thank you. 20 Mr. McAuley? 21 MR. McAULEY: Madame Chair, Vice Chair, 22 Commissioners, thank you. 23 We represent Microsoft, and the petition 24 before you is on behalf of Microsoft requesting that 25 the Commission deem their application for nongaming 39 ITEM NO. 14 1 casino licensure -- casino service industry 2 licensure complete without the need to file a QDF on 3 behalf for Messrs. Bill Gates and Steve Ballmer. 4 Both Mr. Gates and Mr. Ballmer has been issued top 5 secret clearances by the Department of Defense after 6 extensive investigation. The nature of that 7 investigation is detailed in our brief at pages 5 8 and 6, as well as in the supporting certification. 9 The nature of the questionnaire itself is actually 10 attached to the application, as well. I think it 11 shows that the actual type of investigation that was 12 conducted by the Department of Defense for both 13 Messrs. Gates and Ballmer is actually more extensive 14 than even what the Division of Gaming Enforcement 15 normally would conduct on behalf of a -- in 16 connection with a nongaming casino service industry 17 license. 18 So we would respectfully request, and I 19 would also point out the that Commission has granted 20 a similar petitions on behalf of IBM on the basis of 21 such top secret clearances. 22 One other thing I'd like to point out is 23 Microsoft -- Mr. Gates and Mr. Ballmer are really 24 not significantly involved in the Atlantic City 25 business. We have set forth in our brief, 40 ITEM NO. 14 1 Microsoft's revenues last year annually were 2 approximately $40 billion, and the revenues 3 generated from Atlantic City business was less than 4 three-hundredths of one percent. 5 So, respectfully, we request the petition be 6 granted. 7 CHAIR KASSEKERT: Thank you. 8 Any questions? 9 COMMISSIONER SOMMELING: No questions, 10 Madame Chair. 11 CHAIR KASSEKERT: Mr. McDonough? 12 MR. McDONOUGH: Good morning. 13 I filed a response dated May 8th in which I 14 agreed that relief would seem to be appropriate in 15 this matter. And I agree with Mr. McAuley that the 16 investigation to which these two gentlemen were 17 subject by the Federal Government is detailed on 18 pages 5 and 6. Very, very extensive and very, very 19 impressive, and it's close enough to our 20 investigation, that perhaps -- 21 CHAIR KASSEKERT: I knew we were going to 22 hear that. 23 Any questions? 24 COMMISSIONER SOMMELING: No questions, 25 Madame Chair. 41 ITEM NO. 15 1 COMMISSIONER EPPS: Madame Chair, I move 2 that we grant the relief and deem Microsoft 3 nongaming related casino service industry license 4 application complete without requiring a qualifier 5 disclosure form from Bill Gates or Steve Ballmer for 6 the reasons set forth in the petition, supporting 7 briefs, and documents; and further, Petitioner must 8 file an outstanding qualifier closure form for 9 Bradford Smith by July 21st, 2006. 10 COMMISSIONER SOMMELING: Second. 11 COMMISSIONER EPPS: Not our -- 12 CHAIR KASSEKERT: Not the former chair of 13 the Casino Control Commission. 14 The motion has been made and seconded. All 15 those in favor? 16 (Ayes.) 17 CHAIR KASSEKERT: Opposed? 18 (No response.) 19 CHAIR KASSEKERT: The motion carries. 20 Thank you. 21 MR. NANCE: Item No. 15, petition of 22 Harrah's Operating Company, Inc., Marina Associates, 23 Atlantic City Showboat, Inc., Bally's Park Place, 24 Inc., and Boardwalk Regency Corp. for waiver of 25 qualification for certain officers of HOC. 42 ITEM NO. 15 1 Miss Wozniak? 2 MS. WOZNIAK: Good morning, Chair, 3 Commissioners. 4 For the record, you have a revised draft 5 resolution which has also gone out to the parties 6 which correctly reflects Mr. Hirsch's title, which 7 is Vice President Customer Service Assurance For the 8 Central Division. 9 CHAIR KASSEKERT: Very well. 10 MS. WOZNIAK: That said, Miss Hughes is here 11 for the Petitioners and Miss Turi for the Division. 12 CHAIR KASSEKERT: Thank you. 13 Miss Hughes? 14 MS. HUGHES: Thank you. 15 I have reviewed over the draft resolution as 16 amended and ask for your approval. 17 CHAIR KASSEKERT: Thank you. 18 Miss Turi? 19 MS. TURI: Good morning, Chair, 20 Commissioners. 21 We also have no objection to the relief 22 requested. 23 CHAIR KASSEKERT: Thank you. 24 Any questions for the parties? 25 COMMISSIONER SOMMELING: No questions, 43 ITEM NO. 15 1 Madame Chair. 2 Move to adopt the draft resolution and waive 3 qualification pursuant to NJSA 5:12-85d(1) as to 4 Brad Belhouse in his capacity as Vice President of 5 Corporate Finance; and as to Brad Hirsch in his 6 capacity as Vice President of Customer Service 7 Assurance, Central Division, subject to the 8 conditions stated in the resolution. 9 COMMISSIONER FEDORKO: Second. 10 CHAIR KASSEKERT: Motion's been made an 11 seconded. This is a roll call 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 that the 23 motion is unanimous. 24 CHAIR KASSEKERT: Thank you. 25 MS. HUGHES: Thank you. 44 ITEM NO. 16 1 MR. NANCE: Item No. 16, petition of Marina 2 Development Company, LLC, requesting permission for 3 Gage Parrish to perform the duties of and exercise 4 the duties of Vice President of Finance for Boyd 5 Gaming Corporation pending plenary qualification. 6 Miss Delia? 7 MS. DELIA: Good morning, Chair, 8 Commissioners. 9 Doesn't seem to be anybody here on behalf of 10 the Petitioners, but I did -- 11 CHAIR KASSEKERT: Petitioner's counsel told 12 me that he could not make it this morning, so I gave 13 him a pass. 14 MS. DELIA: Okay. He did say that he 15 reviewed the resolution, and it was fine with him. 16 CHAIR KASSEKERT: Very good. 17 Mr. Fogarty is here on behalf of the 18 Division. 19 MR. FOGARTY: Thank you, Chair, 20 Commissioners. 21 Again, I submitted a letter on behalf of the 22 Division recommending that you grant the requested 23 relief with regard to Mr. Parish, and I've seen Miss 24 Delia's draft resolution. I have no objection to 25 its entry. 45 ITEM NO. 16 1 CHAIR KASSEKERT: Thank you. 2 Any questions for Mr. Fogarty? 3 COMMISSIONER SOMMELING: No questions, 4 Madame Chair. 5 VICE CHAIR FRULIO: Move to adopt the draft 6 resolution and find Gage Parrish temporarily 7 qualified and authorize him to assume the duties and 8 exercise the powers of Vice President of Finance for 9 Boyd Gaming Corporation subject to the conditions 10 contained in NJSA 19:43-2.7. 11 COMMISSIONER FEDORKO: Second. 12 CHAIR KASSEKERT: Motion is made and 13 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 the 25 motion is unanimous. 46 ITEM NO. 17 1 MR. FOGARTY: Thank you. 2 CHAIR KASSEKERT: Thank you. 3 MR. NANCE: Item No. 17, a petition of 4 Boardwalk Regency Corp. for amendment to alcoholic 5 beverage license to permit a reconfiguration and 6 expansion of the casino floor. 7 Mr. Briliant? 8 MR. BRILIANT: Good morning, Madame Chair, 9 and Commissioners. 10 Lynne Hughes is here on behalf of the 11 Petitioner. Mr. Ficchi is here on behalf of the 12 Division. 13 I have circulated the proposed draft 14 petitions to all of the parties, and they have all 15 indicated it's fine with them. 16 CHAIR KASSEKERT: Thank you. 17 Miss Hughes? 18 MS. HUGHES: That's true. I have reviewed 19 the draft resolution and would ask that you approve 20 it. 21 CHAIR KASSEKERT: Thank you. 22 Mr. Ficchi? 23 MR. FICCHI: Thank you. As Mr. Briliant 24 indicated, we have no objection to the resolution. 25 CHAIR KASSEKERT: Thank you. 47 ITEM NO. 18 1 Any questions for the parties? 2 COMMISSIONER SOMMELING: No questions, 3 Madame Chair. 4 COMMISSIONER EPPS: Madame Chair, I move we 5 adopt the draft resolution and approve the Petition 6 of Boardwalk Regency Corporation for amendment to 7 its Certificate of Operation and Casino Hotel 8 Alcoholic 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 VICE CHAIR FRULIO: Second. 13 CHAIR KASSEKERT: The motion has been made 14 and seconded. All those in favor? 15 (Ayes.) 16 CHAIR KASSEKERT: Opposed? 17 (No response.) 18 CHAIR KASSEKERT: The motion carries. 19 Thank you. 20 MS. HUGHES: Thank you. 21 MR. NANCE: Item No. 18, petition of IGT for 22 approval of an agreement to an administer certain 23 Multi-Casino Slot System Trust Agreements. 24 MR. BRILIANT: Madame Chair, my 25 understanding is this matter is going to be 48 ITEM NO. 19 1 adjourned for one meeting. 2 CHAIR KASSEKERT: Yes. Correct. I think 3 they need a motion for that. 4 COMMISSIONER EPPS: I move to move to the 5 next meeting.. 6 COMMISSIONER SOMMELING: Second. 7 VICE CHAIR FRULIO: Second. 8 CHAIR KASSEKERT: The motion has been made 9 and seconded. All in favor? 10 (Ayes.) 11 CHAIR KASSEKERT: Opposed? 12 (No response.) 13 CHAIR KASSEKERT: The motion carries. Thank 14 you. 15 MR. NANCE: Item No. 19, proposed adoption 16 of amendments to NJAC 19:45-1.8. 17 Mr. Briliant? 18 MR. BRILIANT: All right. The attached 19 reproposal would reduce the minimum retention period 20 for cash printed tickets, cash printed vouchers and 21 gaming vouchers redeemed at slot machines. We've 22 reduced that period from 30 days to seven days. 23 However, a casino licensee could thereafter destroy 24 cashed or redeemed gaming vouchers without notice to 25 the Commission or the Division of Gaming Enforcement 49 ITEM NO. 20 1 unless either the Commission or someone notifies the 2 licensee otherwise within the seven-day retention 3 period. 4 The notice of reproposal was published in 5 the New Jersey Register on March 20th, 2006. And 6 when the public comment expired on May 19th, 2006, 7 one comment had been received from the Division of 8 Gaming Enforcement, which did not object to the 9 reproposal. 10 The matter is now before the Commission. 11 CHAIR KASSEKERT: Thank you. 12 Any questions for Mr. Briliant? 13 COMMISSIONER EPPS: Move to adopt as 14 published without change. 15 COMMISSIONER SOMMELING: Second. 16 CHAIR KASSEKERT: The motion has been made 17 and seconded. All in favor? 18 (Ayes.) 19 CHAIR KASSEKERT: Opposed? 20 (No response.) 21 CHAIR KASSEKERT: The motion carries. 22 MR. BRILIANT: Thank you. 23 CHAIR KASSEKERT: Thank you. 24 MR. NANCE: Item No. 20, petition of Lakes 25 Entertainment, Inc., and Trump Taj Mahal Casino 50 ITEM NO. 20 1 Resort for approval of "World Poker Tour All-in 2 Hold'em." 3 Mr. Mamolen? 4 MR. MAMOLEN: Good morning, Madame Chair, 5 Commissioners. 6 This matter is before you for purposes of 7 compliance with the Office of Administrative Law 8 agency action deadlines and, in essence, the 9 petition for the new game the Division has not 10 objected. 11 CHAIR KASSEKERT: Thank you. 12 Any questions? 13 COMMISSIONER SOMMELING: No questions, 14 Madame Chair. 15 COMMISSIONER EPPS: Chair, move that we 16 table the petition for up to an additional 90 days 17 and authorize a Public Notice of Action to that 18 effect. 19 COMMISSIONER SOMMELING: Second. 20 CHAIR KASSEKERT: The motion has been made 21 and seconded. All in favor? 22 (Ayes.) 23 CHAIR KASSEKERT: Opposed? 24 (No response.) 25 CHAIR KASSEKERT: The motion carries. 51 ITEM NO. 22 1 MR. NANCE: Item 21, proposed adoption of 2 amendments and new rules for Flop Poker. 3 Mr. Mamolen? 4 MR. MAMOLEN: Another new game for final 5 adoption. Flop poker is a variation, of course, of 6 Hold'em. And, of course, only one casino 7 participated in the field test, but there were no 8 reported problems. It was, of course, published. 9 Only comment during the comment period was 10 the Division did not pose an objection. 11 CHAIR KASSEKERT: Thank you. 12 Any questions? 13 COMMISSIONER SOMMELING: No questions, 14 Madame Chair. 15 COMMISSIONER FEDORKO: Motion to adopt with 16 as published with minor technical changes. 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 (No response.) 23 CHAIR KASSEKERT: The motion carries. 24 MR. NANCE: Item No. 22, proposed 25 publication and temporary adoption of amendments to 52 ITEM NO. 23 1 NJAC 19:46-1.6. 2 Mr. Mamolen? 3 MR. MAMOLEN: This is temporary adoption and 4 a publication of a wish list item, which would, in 5 essence, decrease the frequency performing 6 inventories of commingled chip samples within a set 7 from quarterly to bi-annually. 8 CHAIR KASSEKERT: Thank you. 9 Any questions? 10 COMMISSIONER SOMMELING: No questions, 11 Madame Chair. 12 VICE CHAIR FRULIO: Move to approve for 13 publication and temporary adoption. 14 COMMISSIONER FEDORKO: 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 MR. NANCE: Item No. 23, Proposed 22 publication and temporary adoption of amendments to 23 NJAC 19:45-1.9B and 9.9C. 24 Mr. Mamolen? 25 MR. MAMOLEN: Another item for both 53 ITEM NO. 24 1 publication and temporary adoption which was another 2 wish list item. And this amendment would eliminate 3 the affirmative filing obligation of cash and 4 noncash gifts of at least $10,000 to a person or his 5 or her guest within a five-day period. 6 As you know, these records are always to be 7 available upon regulator request. 8 CHAIR KASSEKERT: Thank you. 9 Any questions? 10 COMMISSIONER SOMMELING: No questions, 11 Madame Chair. 12 COMMISSIONER FEDORKO: Motion to approve for 13 publication and temporary adoption. 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 MR. NANCE: Item No. 24, proposed 22 publication of amendments concerning alternative 23 procedure for pre-inspection and pre-shuffling of 24 cards. 25 Mr. Mamolen? 54 ITEM NO. 24 1 MR. MAMOLEN: Since this matter was -- and 2 the amendments pertaining thereto were temporarily 3 adopted last year, the Borgata was the only casino 4 licensee who stepped forward to try out new 5 procedures, and I believe at this point it is ripe 6 for publication. 7 There are a couple of amendments to the 8 proposed rules since the temporary adoption. First, 9 the practice of returning pre-inspected and 10 pre-shuffled cards back to the card storage for 11 later delivery to an open gaming table; and second, 12 there is a provision for approval of internal 13 controls for maintenance and security of unused 14 seals, those being for containers of pre-inspected 15 and pre-shuffled cards. 16 As I said, again, this is matter is now 17 before you for publication. 18 CHAIR KASSEKERT: Thank you. 19 Any questions? 20 COMMISSIONER FEDORKO: Approve for 21 publication. 22 VICE CHAIR FRULIO: Second. 23 CHAIR KASSEKERT: The motion has been made 24 and seconded. All in favor? 25 (Ayes.) 55 ITEM NO. 25 1 CHAIR KASSEKERT: Opposed? 2 (No response.) 3 CHAIR KASSEKERT: The motion carries. 4 MR. NANCE: Item No. 25, temporary adoption 5 of amendment for the Ten Bonus Wagers in blackjack 6 and reauthorization of rulemaking experiment for Ten 7 Bonus Wagers in blackjack. 8 Mr. Mamolen? 9 MR. MAMOLEN: As you know, this Ten Bonus 10 Wager is also known as the 21 multi-bets, came 11 before you, I guess it was earlier last year, for in 12 a different version. And that one, of course, since 13 you may or may not recall, had expanded the colors, 14 and they reformulated it and now want to try it out 15 again. The reason it's in before you is in essence 16 the test as originally authorized has since expired. 17 270 days have elapsed, and in order to retest the 18 new version, Commission must indeed authorize a new 19 test. 20 CHAIR KASSEKERT: Thank you. 21 Any questions? 22 COMMISSIONER SOMMELING: No questions, 23 Madame Chair. 24 COMMISSIONER EPPS: Madame Chair, I move 25 that we, A, preliminarily approve the Ten Bonus 56 ITEM NO. 25 1 Wagers for blackjack as revised as a new wager 2 compatible with the public interest pursuant to 3 section 5 of the Act; that we, B, authorize the 4 publication of the Notice of Temporary Adoption 5 which will permit a new test of Ten Bonus Wagers to 6 begin on or after July 24th, 2006, subject to the 7 conditions listed below and to continue for a period 8 of time not to exceed 270 days; that we, C, 9 temporarily adopt the amendments contained in the 10 Notice of Proposal; D, delegate to the Director of 11 the Division of Compliance the authority to 12 establish the terms and conditions of a reauthorized 13 test of Ten Bonus Wagers; E, condition any 14 reauthorized test of Ten Bonus Wagers upon the 15 filing with and approval by the Division of 16 Compliance of all necessary test submissions for a 17 section 69e test of the wager; and that we, F, 18 further condition any test reauthorized herein to be 19 conducted by each participating casino licensee to 20 provide continuous dedicated camera coverage of any 21 open gaming table at which the Ten Bonus Wagers are 22 offered. 23 COMMISSIONER SOMMELING: Second. 24 CHAIR KASSEKERT: The motion has been made 25 and seconded. All in favor? 57 ITEM NO. 26 1 (Ayes.) 2 CHAIR KASSEKERT: Opposed? 3 (No response.) 4 CHAIR KASSEKERT: The motion carries. 5 MR. NANCE: Item 26, proposed temporary 6 adoption of amendments and new rule for Asia Poker; 7 authorization of rulemaking experiment for Asia 8 Poker pursuant to NJSA 5:12-69e. 9 Mr. Mamolen? 10 MR. MAMOLEN: Another new game before you 11 for temporary adoption. Asia Poker is a variation 12 of Pai Gow except without player banking and without 13 collection of any vigorish on any action. The game 14 is like Pai Gow poker except for the fact that it's 15 three hands instead of a high-low hand as in Pai Gow 16 poker. There's a high, low, and medium hand. The 17 object of the game is for the player to win two out 18 of those three. 19 Mr. Ficchi is at counsel table and can give 20 us any input. 21 CHAIR KASSEKERT: Good morning, Mr. Ficchi. 22 MR. FICCHI: Good morning. 23 The Division has tested this game, conducted 24 a review of the house advantage, and we'll supply 25 the report as soon as it's finished. 58 ITEM NO. 26 1 CHAIR KASSEKERT: Thank you. 2 Any questions? 3 COMMISSIONER SOMMELING: No questions, 4 Madame Chair. 5 VICE CHAIR FRULIO: Make a motion that we, 6 A, preliminary approve Asia Poker as a new game 7 compatible with the public interest pursuant to 8 section 5 of the Act; B, authorize the publication 9 of the Notice of Temporary Adoption, which would 10 permit a new test of Asia Poker to begin on or after 11 July 24th, 2006, subject to the conditions listed 12 below and continue for a period of time not to 13 exceed 270 days; C, temporarily adoption the 14 amendments contained in the Notice of Proposal; D, 15 delegate to the Director of the Division of 16 Compliance the authority to establish the terms and 17 conditions of the test of Asia Poker and to approve 18 any gaming equipment necessary to the implementation 19 of the test; E, condition any test of Asia Poker 20 upon the filing with and any approval of the 21 Division of Compliance of all necessary test 22 submissions for a section 69e test of Asia Poker; 23 and, F, further condition any test of Asia Poker 24 upon the filing of Tang Dynasty Entertainment, Inc., 25 a completed casino service industry license 59 ITEM NO. 28 1 application pursuant to section 92c of the Act, and 2 the granting of appropriate transactional waiver. 3 COMMISSIONER FEDORKO: 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. 28 has been adjourned 11 to the July 19th, 2006, public meeting. 12 In accordance with Resolution No. 13 05-12-14-19, the next closed session of the 14 Commission shall be held on Wednesday, July 19th, 15 2006, at 9:15 a.m. in the Commission offices. 16 It is now time for the public participation 17 of the meeting. 18 CHAIR KASSEKERT: Is there anyone from the 19 public that wishes to be heard? 20 Seeing no one, I will close this portion of 21 the meeting and entertain a motion to adjourn. 22 COMMISSIONER SOMMELING: Motion to adjourn. 23 COMMISSIONER FEDORKO: Second. 24 CHAIR KASSEKERT: The motion has been made 25 and seconded. All in favor? 60 1 (Ayes.) 2 CHAIR KASSEKERT: Opposed? 3 (No response.) 4 CHAIR KASSEKERT: The motion carries. 5 (Public Meeting 06-06-21 was adjourned at 6 11:22 a.m.) 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 61 1 C E R T I F I C A T E 2 3 4 I, DARLENE SILLITOE, a Certified Shorthand 5 Reporter and Notary Public of the State of New 6 Jersey, certify that the foregoing is a true and 7 accurate transcript of the proceedings. 8 9 10 I further certify that I am neither 11 attorney, of counsel for, nor related to or employed 12 by any of the parties to the action; further that I 13 am not a relative or employee of any attorney or 14 counsel employed in this case; nor am I financially 15 interested in the action. 16 17 18 DARLENE SILLITOE CSR 19 License No XI01023 20 21 22 Dated: June 26, 2006 23 My Commission Expires on July 10, 2009 24 ID No 2062871 25