1 1 STATE OF NEW JERSEY 2 CASINO CONTROL COMMISSION 3 4 - - - - - - - - - - - - - - - - - - - 5 6 EMERGENCY PUBLIC MEETING 7 8 - - - - - - - - - - - - - - - - - - - 9 10 Friday, June 30, 2006 11 12 Atlantic City Commission Offices 13 Joseph P. Lordi Public Meeting Room - First Floor 14 Tennessee Avenue and Boardwalk 15 Atlantic City, New Jersey 08401 16 5:30 p.m. to 7:35 p.m. 17 18 19 Certified Shorthand Reporter: Darlene Sillitoe 20 - - - - - - - - - - - - - - - - - - - - - - - - - - 21 CIPOLLONI & ASSOCIATES, INC. 22 CERTIFIED SHORTHAND REPORTERS 23 1125 ATLANTIC AVENUE, SUITE 416 24 ATLANTIC CITY, NEW JERSEY 08401 25 (609) 348-9190 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 STEVEN INGIS, SENIOR COUNSEL DANIEL J. HENEGHAN, PUBLIC INFORMATION OFFICER 7 OFFICE OF THE GENERAL COUNSEL: 8 DIANNA W. FAUNTLEROY, GENERAL COUNSEL/EXECUTIVE SECRETARY 9 LEONARD J. DIGIACOMO, ASSISTANT GENERAL COUNSEL STEVEN M. INGIS, ASSISTANT GENERAL COUNSEL 10 DIVISION OF GAMING ENFORCEMENT: 11 THOMAS AURIEMMA, DIRECTOR MITCHELL SCHWEFEL, DEPUTY DIRECTOR 12 13 14 15 16 17 18 19 20 21 22 23 24 25 3 1 A P P E A R A N C E S : 2 SANDSON & DeLUCRY, LLC BY: TIMOTHY J. LOWRY, ESQ. 3 FOR: CASINO ASSOCIATES/BALLY'S/BOARDWALK REGENCY 4 JOSEPH CORBO, ESQ. 5 FOR: CASINO ASSOCIATES/BORGATA 6 NANCY AXILROD, ESQ. FOR: SANDS CASINO HOTEL/ACE GAMING 7 JOSEPH FUSCO, ESQ. 8 FOR: TRUMP PROPERTIES 9 NICHOLAS F. MOLES, ESQ. FOR: TROPICANA CASINO HOTEL 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 4 1 E X H I B I T S : 2 3 No. Description EVD. 4 P-1 Letter, 6-29-06 to State Secretary X 5 Nina Mitchell Wells 6 P-2 Letter, 6-30-06 and Attachments X 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Exhibits retained by Commission. 25 5 1 (The Public Meeting was commenced at 5:30 2 p.m.) 3 (The flag salute was recited.) 4 MR. INGIS: I have 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," on 8 June 29, 2006, the New Jersey Casino Control Act 9 filed notice with the New Jersey Secretary of State 10 at the State House that a special meeting of the 11 Commission would be held on June 30th, 2006, at 5:00 12 p.m. 13 Copies of this notice were also sent by 14 facsimile to each casino licensees and The Press of 15 Atlantic City and the Star Ledger on June 29th. 16 The Commission was unable to provide 48 17 hours of this special meeting. The Commission was 18 anticipating on June 29th, 2006, that an Annual 19 Appropriations Act would be enacted for fiscal year 20 2007 prior to July 1, 2006. 21 Section 63f of the Casino Control Act 22 mandates the presence of Commission inspectors to be 23 present at all times during the operation of any 24 casino or casino simulcasting facility. Since 25 Commission inspectors have not been classified as 6 1 "essential employees" who may continue to perform 2 their functions in the absence of a Constitutionally 3 mandated budget, the Casino Control Commission, the 4 operations should be conducted as soon as possible 5 to ensure the orderly, safe, and secure suspensions 6 of gaming operations in Atlantic City should such 7 actions be necessary. An affirmative vote of 8 three-quarters of the members present is required. 9 CHAIR KASSEKERT: Let me first ask if there 10 are any arguments on the Commission's authority to 11 hold this meeting? 12 Could you please identify yourself for the 13 record? 14 MR. LOWRY: Yes. Chair, members of the 15 Commission, for the record, Tim Lowry of the firm of 16 Sandson & DeLucry on behalf of -- Joe Corbo is lead 17 counsel on behalf of the Casino Association of New 18 Jersey. I am co-counsel. I also represent Bally's 19 Park Place, Inc., as well as its sister property. 20 Boardwalk Regency Corp. 21 First and foremost, on behalf of the casino 22 association and the individual members, we contend 23 that the Commission is without the proper 24 jurisdiction to address and/or suspend any casino 25 license or operations certificate for many reasons. 7 1 Basically in support of same we're arguing that 2 there is a lack of the process required substantive 3 and procedurally prescribed by the United States 4 Constitution, the New Jersey Constitution, the 5 Casino Control Act, as well as and not least 6 important the Open Public Meetings Act. 7 We have completely ignored the traditional 8 and fundamental notions of formal notice. There was 9 no real opportunity to be heard in that we received 10 notice just yesterday in a letter dated June 29th, 11 which I will address in a couple minutes. But there 12 has been no reasonable and viable opportunity for 13 the Casino Association or its individual members to 14 present a viable argument to the Commission. 15 Moreover there has been no pleadings 16 drafted. The Division has not drafted any 17 pleadings. There is no notice or there is no 18 specific agenda prescribed within any alleged 19 notice. We are completely without the ability to 20 argue or present any viable position at this point 21 in time. 22 Moreover, we do not believe that there's the 23 ability for an independent evaluation on the merits 24 of the suspension of the operational certificates at 25 issue. 8 1 For these reasons and more, without even 2 complying with the notice provisions, we object and 3 submit that the Division is without jurisdiction to 4 have this meeting. 5 Additionally, notwithstanding the foregoing, 6 the Open Public Meetings Act requires adequate 7 notice for any public meeting. I think we can all 8 admit that this is, in fact, a public meeting. 9 Adequate notice is defined in the statutes as a 10 minimum of 48 hours notice. 11 Additionally, additionally, we must also 12 properly post at least in one public place, mail, 13 telegram, telephone to at least two newspapers, and 14 we must file with the clerk or municipalities or 15 something like that the provisions of the notice. 16 The notice itself must also comply with the Open 17 Public Meetings Act. The notice must prescribe an 18 agenda. It must detail in specificity the positions 19 and the arguments to be submitted. And none of that 20 has been accomplished here. All we have for the 21 order if I will -- I will mark it as P-1 -- if I 22 have to, but I have a letter by yourself, Chair, and 23 it's to Secretary Wells, and it states -- it's dated 24 June 29th, and for the record it says that in 25 accordance with the Open Public Meetings Act, this 9 1 is to advise that the Casino Control Act Casino 2 Control Commission will hold a special meeting, and 3 this is a matter to be considered, is consideration 4 of the temporary suspension of certificates of 5 operation. 6 It does not include a detailed agenda. It 7 also says there's a meeting. There is no hearing. 8 Does not prescribe for a hearing. Without that 9 language and without the jurisdictional 10 prerequisites, the Commission is without 11 jurisdiction to even consider the suspension of the 12 operation certificates. The remedy of that, of 13 course, is for a renotice and reposting -- and we 14 can get to that later. But I imagine -- and in that 15 case we would have to do it, a notice again, anew 16 which would be 48 hours notice and would have to 17 comply with all the mandatory prescriptions of the 18 Open Public Meetings Act at a minimum. 19 And at that time we would appreciate an 20 opportunity to fully brief and address the matter 21 and present a coherent and competent argument on the 22 position. 23 CHAIR KASSEKERT: Thank you, Mr. Lowry. 24 Director? 25 MR. AURIEMMA: Thomas Auriemma, Director, on 10 1 behalf of the Division of Gaming Enforcement and the 2 Attorney General's Office. 3 First, I thank you for the privilege of 4 letting me appear here today, and I'd like to 5 address several issues that were raised just a few 6 minutes ago. 7 First, with respect to the Open Public 8 Meetings Act, the Open Public Meetings Act is 9 designed, obviously, to give the public notice to 10 permit it to view the actions of this tribunal. 11 These are not ordinary times where you have the 12 opportunity to publish well in advance an agenda or 13 publish well in advance a -- a notice. We are 14 dealing here with circumstances that are developing 15 as we speak. We are dealing with a situation which 16 is preparatory. In fact, I believe that you have 17 complied with all the applicable requirements of the 18 Open Public Meetings Act to deal with a situation 19 that is developing and may develop tonight, 20 tomorrow, or over the weekend. In fact, it would be 21 a dereliction of your duty if you did not have this 22 meeting at this point. 23 With respect to that, I further say that as 24 to the jurisdiction of this Commission, there is 25 nobody -- no agency, no tribunal that would have 11 1 jurisdiction other than you. You must address this 2 particular issue at this point in time in order to 3 deal with what potentially could be coming down the 4 road. And we don't know what's coming down the road 5 at this point in time. We've heard many published 6 reports. We've had some contact with various other 7 state officials. But what we must recognize at this 8 point in time is we don't have any executive order 9 closing any casinos or closing state government. We 10 might. We don't know that at this point in time. 11 And if we get to that point, we'll deal with it at 12 an appropriate time in an appropriate fashion. But 13 you have to be prepared, and that's why you're here 14 today. And I applaud you for calling this meeting 15 so that we are prepared so that if an executive 16 order is signed, if it directs the Commission and 17 the Division of Gaming Enforcement to perform 18 certain actions, you will perform them and we will 19 perform them, and we will perform them in a very 20 orderly way. So, once again, I applaud you with 21 respect to that. 22 Again, this is not a hearing. You're not 23 here to suspend a certificate of operation. What 24 you're here to do is be prepared. Be prepared in 25 the event that there is not a state budget signed, 12 1 that there is an executive order at some point in 2 time, whenever that point in time may be, that 3 directs the Commission and the Division to do 4 something with respect to the casinos. 5 So in that regard, I think it is most 6 appropriate that we address that issue in a very 7 narrow fashion. And I will address it more as to 8 how the Division is prepared if you want me to at a 9 later moment in these proceedings. 10 But for now I repeat, you clearly have the 11 authority to hold this meeting. You clearly have 12 the jurisdiction because you are the tribunal that 13 regulates the casinos in Atlantic City. You are the 14 agency which regulates all gambling in this city, 15 and it is only you that can deal with the situation 16 that is now potentially before us. 17 Thank you 18 CHAIR KASSEKERT: Thank you, Mr. Auriemma. 19 Let me just ask if the general counsel of 20 the Casino Control Commission would like to make any 21 comments at this time. 22 MS. FAUNTLEROY: I would only comment with 23 respect to the notice provided that there is an 24 exception under the Open Public Meetings Act when 25 there is an inadequate opportunity to provide 13 1 notice, 10:4-9 requires, as indicated by the clerk, 2 a three-quarters vote of the Commission members. 3 That the meeting is required to deal with matters of 4 urgency and importance, and a delay for purpose of 5 providing adequate notice would likely result in 6 substantial harm. The options are your meeting is 7 limited to such matters of urgency as the proposed 8 notice that was sent to the news outlets as well as 9 individuals to the properties specified. The 10 limited purpose of today's meeting and that notice 11 of such meeting is provided as soon as possible 12 following the calling of the meeting. In fact, the 13 meeting notice was provided pre the meeting. So 14 there is an exception provided should this body 15 decide that is the appropriate motion to determine, 16 and that is the motion that's on the floor. 17 CHAIR KASSEKERT: Thank you. Thank you. 18 Any other arguments? 19 Let me ask if the Commissioners have any 20 questions or need a recess? 21 MR. CORBO: Chair Kassekert, I didn't have a 22 legal argument, so to speak, but I do have a -- 23 something to go. I don't know if you're going to 24 address at this point or at some other point in the 25 proceeding. 14 1 CHAIR KASSEKERT: I think at some other 2 point in the meeting. What I need to do is put this 3 on the floor. 4 So, accordingly, I would move that the 5 Commission commence a meeting immediately to 6 consider a temporary suspension of certificates of 7 operation of the 12 casino licensees pursuant to 8 NJSA 5:12-96, in the event that the Governor of the 9 State of New Jersey declares a State of Emergency 10 due to the absence of an Annual Appropriations Act 11 for fiscal year 2007. 12 Is there a second? 13 COMMISSIONER SOMMELING: Second. 14 CHAIR KASSEKERT: Motion is made and 15 seconded. This is a roll call vote. 16 MR. INGIS: Commissioner Sommeling? 17 COMMISSIONER SOMMELING: Yes. 18 MR. INGIS: Commissioner Epps? 19 COMMISSIONER EPPS: Yes. 20 MR. INGIS: Commissioner Fedorko? 21 COMMISSIONER FEDORKO: Yes. 22 MR. INGIS: Vice Chair Frulio? 23 VICE CHAIR FRULIO: Yes. 24 MR. INGIS: Chair Kassekert? 25 CHAIR KASSEKERT: Yes. 15 1 Yes. The motion carries. 2 Mr. Clerk? 3 MR. INGIS: The matter before the Commission 4 today is consideration of a temporary suspension of 5 certificates of operation of the 12 casino licensees 6 pursuant to NJSA 5:12-96 in the event that the 7 Governor of the State of New Jersey declares a State 8 of Emergency due to the absence of an Annual 9 Appropriations Act for fiscal year 2007. 10 In accordance with the requirements of the 11 Open Public Meetings Act, the suspension of the 12 12 casino licensees shall be the sole matter discussed 13 and acted upon at this special meeting. 14 Members of the press will be permitted to 15 take photographs, and we would ask that this be done 16 in a manner that is not disruptive or distracting in 17 any manner. The use of cellular telephones in the 18 public meeting room while the Commission is in 19 session is prohibited. 20 CHAIR KASSEKERT: Thank you, Mr. Clerk. 21 I have a few introductory remarks to make. 22 Section 63f of the Casino Control Act mandates the 23 presence of Commission inspectors at all times 24 during the operation of a casino or a simulcasting 25 facility for the purpose of certifying gross revenue 16 1 and receiving patron complaints. 2 Commission inspectors have not been deemed 3 to be "essential employees" who may perform their 4 duties if the legislature has failed to enact an 5 Annual Appropriations Act for fiscal year 2007 by 6 the Constitutional deadline of midnight tonight, 7 June 30th. 8 In anticipation of that possibility, we have 9 commenced this proceeding for the purposes of 10 facilitating an orderly cessation of casino and 11 simulcasting operations. We're thus here today to 12 consider the temporary suspension of the operation 13 certificates that have been issued to each casino 14 licensees pursuant to section 96 of the Act. 15 Counsel for each casino licensee and the 16 Division will have the opportunity at today's 17 hearing to present legal argument or testimony. 18 Are there any materials that anyone wishes 19 to introduce into evidence? Okay. 20 Seeing none, I will ask that counsel who 21 wish to address the Commission regarding this matter 22 to so indicate at this time and to enter their 23 appearances. 24 MR. CORBO: Chair Kassekert, Commission. 25 Joseph Corbo on behalf of Borgata. 17 1 MS. FAUNTLEROY: If I may just to 2 facilitate. Part of the -- I know that the 3 proceedings today were interrupted by a Superior 4 Court proceeding. But part of the notice had 5 requested identification of those that were coming 6 and arguments that were going to be made, so I would 7 just ask for a facilitation that each that are 8 intending to make arguments come up and put that on 9 the record. 10 CHAIR KASSEKERT: Before -- first, before we 11 hear the arguments, Mr. Corbo. 12 MR. CORBO: On behalf of the Borgata and as 13 well as on behalf of Casino Association. 14 CHAIR KASSEKERT: Thank you. 15 MR. Fusco? 16 MR. FUSCO: Joseph Fusco on behalf of the 17 three Trump casino licensees. 18 CHAIR KASSEKERT: Thank you. 19 Mr. Moles? 20 MR. MOLES: Nicholas F. Moles on behalf of 21 the Tropicana Casino and Resort. 22 Nancy Axilrod on behalf of Ace Gaming doing 23 business as the Sands. 24 CHAIR KASSEKERT: Thank you. 25 Mr. Auriemma? 18 1 MR. AURIEMMA: Yes. Thomas Auriemma, 2 obviously, for the Division of Gaming Enforcement 3 through my Deputy Director. Mr. Schwefel or myself 4 will be prepared to address certain issues before 5 the Commission. 6 CHAIR KASSEKERT: Thank you. 7 Mr. Lowry, are you going to enter an 8 appearance? 9 MR. LOWRY: Yes, I'm sorry. Tim Lowry on 10 behalf of the Bally's Park Place, Inc., and 11 Boardwalk Regency Corporation. Thank you. 12 CHAIR KASSEKERT: Thank you. We'll proceed. 13 Who would like to -- Mr. Corbo? 14 MR. CORBO: Sure. Thank you, Chair, 15 Commissioners. My comments will be brief. 16 It's almost -- you almost don't know what to 17 say, given the circumstances. And let me just 18 preface everything by saying that we understand that 19 what we're talking about here is the Commission's 20 fulfilling an order that's going to come from 21 another branch of the government, so we fully 22 understand that. To the extent that I'm making any 23 observations here, they are not necessarily directed 24 at anyone other than just making some observations. 25 And at the end, I do want to talk about the 19 1 transition process, if there is the unfortunate 2 eventuality of a closing. Some of the circumstances 3 that we might want to think about, and I think some 4 of the other casino counsel are going to discuss 5 those as well. 6 But it's just a bit surreal to, you know, 7 having opened five hours ago a significant expansion 8 at the Borgata and then to be here today to talk 9 about potentially closing that. It's a bit surreal 10 to be here on a Friday of 4th of July weekend when 11 all of our casino licensees have been spending the 12 past six months building up to this five-day 13 weekend, inviting, you know, all of our best 14 customers down, all of whom are going to be coming 15 down. We're going to be at full capacity and then 16 some. And then to be talking about closing our 17 casinos in that circumstance. It's a bit surreal 18 for a state that's in a budget crisis to be talking 19 about closing businesses that generate millions of 20 dollars of tax revenues. 21 And if you look at just the five-day period 22 that's going to be the 4th of July weekend, using 23 very conservative figures, not taking into account 24 any of the other ancillary taxes, just of the gross 25 gaming revenue tax, we estimate that will be a $7 20 1 million loss to the State. About 1.2 to $1.3 2 million loss of CRDA contributions and these are 3 monies that can never be recouped. Once they're 4 gone, they're gone. Not to mention the harm that 5 our industry -- the State and our industry will have 6 to its representation for, you know, closing at any 7 time, let alone under the circumstances that we're 8 in right now on the 4th of July weekend. 9 And it's going to be surreal, and it's going 10 to be sad, and there are going to be some angry 11 customers if this happens. And there are going to 12 be some rightfully angry employees because, 13 obviously, if this occurs, the employees who are 14 directly involved with the casino, the employees who 15 are involved in ancillary facilities to the casino 16 will not be asked to come to work because the 17 demand -- you know, people are going to leave this 18 town as quickly as they came in. And what -- what I 19 would like to address with you in that regard is I 20 don't know how this order, if this order comes, when 21 it's going to come, but that for there to be some 22 thought and some consideration to be given to the 23 chaos that there would be if enough time and effort 24 and consideration is not given to an orderly 25 closure. I don't even want to say that word, but 21 1 that's what we're here to talk about, and none of us 2 seemingly have any control at. 3 If that eventually happens, the thousands 4 and thousands of people that are in town here, 5 getting them off of the casino floor and everything 6 that that entails from the chips and the slot 7 machines and the gaming equipment, that needs to be 8 done, thought needs to be given to that. How that 9 can occur in an orderly trans -- in an orderly 10 fashion. 11 We've been thinking about how do we get our 12 customers here and what we're going to do once our 13 customers get here. Quite candidly we haven't had a 14 whole lot of time to think about how we're going to 15 get our customers off of the casino floor. That's 16 just counterintuitive to us. So what we would ask, 17 to the extent that you have the ability to influence 18 others who are going to be making this decision, to 19 make sure they're fully aware of what those 20 consequences and circumstances would be so that this 21 devastating event is at least done with some form of 22 order so that it's not worse than it needs to be. 23 And to that extent, you know, obviously, our 24 operational people are the people who are the 25 experts with regard to that. We would be happy to 22 1 assemble our people to meet with your people, your 2 staff that does the same thing, so that we can 3 discuss how that can be done in an orderly fashion, 4 and we would just ask you for the opportunity to do 5 that. 6 I don't know if that's what you were 7 intending to happen here today but, quite candidly, 8 everything else that's happening and with the notice 9 we just got late yesterday, which we understand, we 10 just are not in a position to be able to do that 11 today 12 CHAIR KASSEKERT: Thank you, Mr. Corbo. 13 Let me -- 14 MR. CORBO: Thank you. 15 CHAIR KASSEKERT: Let me ask if any 16 Commissioners have any questions at this point. 17 COMMISSIONER SOMMELING: No questions, 18 Madame Chair. 19 CHAIR KASSEKERT: Mr. Auriemma, I'm assuming 20 you would like to wait until each of the counsel -- 21 MR. AURIEMMA: That's correct. 22 CHAIR KASSEKERT: All right. Mr. Fusco? 23 MR. FUSCO: Thank you, Chair, members of the 24 Commission. 25 We at Trump -- and I'm sure the whole 23 1 industry, we understand how we got here, and we 2 understand that the Commission's going to react to 3 an order that will or will not be issued by the 4 Governor because of circumstances which the State 5 Constitution causes consequences for, the 6 circumstances that could come to pass. Hopefully, 7 they won't, but they could. My comments are really 8 directed to what prerogative the Commission has. 9 Your discretion. 10 In your remarks, Chair Kassekert, you 11 indicated that you -- this discussion today, this 12 meeting, this proceeding is about the orderly 13 temporary cessation of all New Jersey casino gaming 14 operations. And I focus on the word "orderly." I 15 emphasize the notion of the fact that this 16 administrative agency is endowed with discretion, 17 and that's really what I'm trying to talk to. And I 18 don't know the terms, and I don't know that anyone 19 does know the terms of what executive order the 20 Governor might issue or, in fact, will issue. So I 21 don't know what those terms are. So I just would 22 like to speak for a couple minutes of discretion, 23 and the broad discretion that the Casino Control 24 invests in this agency to try to manage, oversee, 25 regulate casino operations. 24 1 This is not -- let me say what this is not, 2 in a few days that we've been talking about it. 3 This is not casinos at 4:00 closing like they did 20 4 years ago. Every day at 4:00 in the morning, a.m. 5 or 6:00, whatever the time was casinos used to 6 close, and then they would reopen and that would be 7 that. There were circumstances during the wee hours 8 when that wasn't a whole lot of activity at the 9 time. Those closings would occur. Everyone's 10 expectation who was there, every employee, every 11 patron, every patron who would be a patron coming in 12 the next day, knew that they -- that would be a 13 closing. So the notion of an orderly closing 14 that -- okay. We're saying we're closing at 4:00 15 and we expect everybody out of here in a short 16 period of time or a couple minutes, that might be an 17 orderly close. Or even today if you give us notice 18 that 48 hours from now on a Tuesday -- or Thursday 19 or whatever day you pick -- there's going to be no 20 casino gaming that day, we would work to create the 21 expectation in the people who would be here, our 22 patrons, our employees, our hard-driving marketing 23 machines, the 12 of them that you have in this city 24 in this industry. We would work hard to create the 25 expectation and we would create the expectations, we 25 1 would communicate, and so would the rest of the 2 media communicate, there's going to be no gaming on 3 July 12, whatever date that is, and it would be easy 4 to have an orderly close-down of the casino then 5 because the world would expect that. 6 But this is even today, even at 20 to 6:00, 7 we don't know whether or not the Governor is going 8 to be in a position where he feels that it's 9 important that he issues an order or required by the 10 circumstances to close down, to direct that the 11 casinos close down. But if he does, he will issue 12 the order to the Commission to -- and with the 13 Division's assistance to preside over the orderly 14 temporary cessation of all New Jersey casino gaming 15 operations. 16 So we're talking about 12 casinos. 40,000 17 employees but 12 casinos. A million square feet of 18 gaming space. I'm not sure exactly how many because 19 I've lost a little bit of count but maybe 40,000 20 slot machines. Maybe 1500 table games. We're 21 talking about hundreds of thousands of patrons that 22 we can't even get to tell not to come here. We 23 could. Maybe we could tell them maybe you shouldn't 24 be coming here or not. But we're not going to tell 25 them yet. We have an obligation to try to run our 26 1 properties as efficient as possible and our 2 employees -- our thousands of employees -- that if 3 somebody closes our casino for an unspecified period 4 of time, we can tell our employees to go home. Do 5 we tell one shift not to? Three shifts out? A week 6 out? How do we even know? How do they know? 7 So I'm talking -- I'm trying to focus on the 8 word "orderly," and the notion of discretion, your 9 discretion, and how broad that discretion truly is. 10 How broad that discretion, the legislature when they 11 created you all, how broad they want that discretion 12 to be, because in your hands is this critically 13 valuable asset to the State. So I ask you make 14 reference in your reflections how to give that 15 directive to us. As the operators. That you don't 16 think in terms of, yeah, somebody says it will be at 17 11:00 so by 11:00, we'll give you to 12:00, you get 18 out. I don't think -- I say most respectfully, it's 19 that easy. Let's think about a bus that comes down. 20 Let's say a bus takes two hours to get here. They 21 get on the bus, they buy the ticket, they come on, 22 they get whatever it. So now it's -- it's -- 23 they're on the bus. You say -- let's say that we're 24 going to stop at 11:00. Well, some people at 11:00 25 have been riding already two hours. Some people 27 1 have only been riding an hour, and they got another 2 hour to get here. The bus is here for six hours, 3 and then they go home. 4 But I submit, respectfully, it isn't too 5 orderly that when those folks arrive, and we can't 6 tell those folks not to come yet until somebody 7 tells us such and such not to come, so what's 8 orderly about that? What's orderly and would be -- 9 and I submit respectfully -- and I submit that you 10 have the discretion to do this. I submit that it is 11 inherent in the very large amount of authority that 12 the Casino Control Commission has to say no. You 13 have to let those folks come, play, leave and go 14 home. Because otherwise what are we going to do? 15 They're going to come down here, and they're going 16 to have nothing to do. They are going to have 17 things to do, but not the thing to do. They'll go 18 and eat and this and that. And what are they going 19 to do? That will build. That will build. 20 I ask that you give consideration to giving 21 us some time, some room to make this orderly. So 22 that the folks that -- now where are we? We happen 23 to be at perhaps -- I'm not really the marketing guy 24 the busiest and most driven holiday weekend that we 25 have. And it's an odd one this time because the 4th 28 1 of July is on an odd day. Tuesday. So that a lot 2 of folks are coming down here for the weekend going 3 to stay Monday. Who's coming down Monday and stay 4 Tuesday, Wednesday, Thursday? So you got a very odd 5 circumstances here, which is probably the epitome of 6 activity. So as opposed to the expectations of 20 7 years ago when people would come to the casino and 8 know at 4:00 you're gone, and that's the way it's 9 always been. This is one hundred percent at 10 opposite of that. This is where our 12 marketing 11 machines in these properties which generate the 12 hundreds of millions of dollars of revenue are at 13 their apex. They have driven -- 14 So now, what's an orderly way to close the 15 casino? An orderly way to close the casino, an 16 orderly way to deal with those hundreds of thousands 17 of patrons who are going to be headed down here. 18 And if you say, okay, it's Saturday. Here's the 19 order. Close at 11:00, I submit we need days. We 20 need days to make it orderly. 21 And we -- and there is -- and if you have to 22 shut us down then, I ask that you give some 23 consideration to these remarks. You have great 24 discretion. The standard -- I don't know what the 25 standard is. I'm only taking the "orderly." 29 1 I heard the attorney for the Governor today 2 speak before the court and use the word "orderly," 3 and then I heard in, Chair, your remarks this 4 morning, this -- opening this meeting use the word 5 "orderly," so I'm going to take "orderly" as my 6 sense of what this discussion is about. And this is 7 administrative law kind of thing as far as I would 8 submit. This is agency law. 9 And so then I look and say how does the 10 Commission deal with the notion of "orderly"? They 11 deal with it within the broad discretion they have 12 to regulate in a sensible way. Forget about the 13 black eye. The black eye that this industry is 14 going to get as we send people -- can you just 15 picture the notion that you now, let's just say 16 11:00 tomorrow, okay. Everybody's got to go out. 17 Can you imagine the conversation? And this is going 18 to repeat itself thousands of times when you lean 19 over to that slot patron. I'm not talking about 20 even a table game. That slot patron and say, well, 21 we're closing the casino, you have to be out of 22 here. And what that discussion back and forth is. 23 And where that discussion is going to go. Are you 24 nuts? Are you crazy? Why are you doing that? 25 Well, the government couldn't agree, whatever the 30 1 heck it is that is said to get through the moment 2 with that patron. No one is going to have 3 malevolence. It's just going to be the discussion. 4 So the black eye that's going to exist with 5 those patrons and those employees. We send our 6 employees home, that's a real problem for us. We're 7 going to deal with whatever it is that you require 8 that we do. We're going to do it. But I'm just 9 saying that the black eye that we're going to get 10 from that, from that activity can be taken into 11 consideration -- or I urge that you take it into 12 consideration when you decide what is a plan that is 13 acceptable to you that is orderly. 14 But I ask you on behalf of our three 15 properties -- but I'm sure on behalf of everybody 16 here, that you think in terms of and don't dismiss 17 the notion. Think in days. This isn't hours, this 18 is days to do it orderly. It might be -- it might 19 be hours if we were in February on a Tuesday. But 20 we're not. We're in that -- we're in the beginning 21 of the quarter which is what represents 40 percent 22 of our whole business or more. I probably have 23 understated the proposition. 24 So I just ask that you exercise that 25 discretion and apply that notion of orderly in a 31 1 context that you are finding it now that we are 2 finding ourselves in. 3 And I, you know, they're kind of my remarks. 4 That's really what I have to say 5 CHAIR KASSEKERT: Thank you. 6 Let me ask if any members of the Commission 7 have any questions. 8 COMMISSIONER SOMMELING: No questions, 9 Madame Chair. 10 COMMISSIONER EPPS: I have one question. 11 CHAIR KASSEKERT: Sure. 12 COMMISSIONER EPPS: Mr. Fusco, I'd be 13 interested in hearing your comments or you further 14 expound on your concept of broad discretion because 15 I think that is something that causes us some 16 conflict in this matter. I mean, you stated it 17 accurately. We're operating in a vacuum as much as 18 you are because we're operating in anticipation of 19 something that is unknown. We don't know when it's 20 going to come, and we don't know what it's going to 21 say, what effect it's going to order if it ever 22 comes, which is as difficult for us as much as it is 23 for you. But then the question is how much are we 24 as a state agency going to be able to continue to 25 function beyond what those above us have directed? 32 1 That's where I would like to hear you argue our 2 discretion versus our higher authority. 3 MR. FUSCO: I'm trying -- 4 COMMISSIONER EPPS: Do you understand my 5 question? 6 MR. FUSCO: I totally do. You will get an 7 order. The thesis is that you will get an order. 8 This is hypothetical, but this is what we're 9 expecting. You will get an order, if things aren't 10 resolved from the Governor's office, who is a higher 11 power who's going to say do this, and then you as a 12 Commission have got to do what you've got to do. I 13 don't -- respectfully, I haven't really thought it 14 through enough to say could the Governor send people 15 other than the Commission down here to cause the 16 orderly temporary cessation of gaming in all New 17 Jersey casinos? I don't know about that. 18 It would seem to me that you still have to 19 proceed in -- you have broad discretion to consider 20 all the elements of the Casino Control Act, but you 21 cannot defy the order from the Governor. I would 22 never even begin to suggest that. And my belief 23 that the real world is the order is going to come 24 with plenty of access to consultation on what the 25 expectation is of that author of the order. What is 33 1 the Governor, the Governor's folks, the people 2 around him, what's the expectation? I just suggest 3 that it is appropriate that there would be, look, I 4 think designating somebody "essential" or 5 "nonessential" is you can talk about that forever. 6 If the fact is that -- but that's not something that 7 the Commission doesn't the Commission -- decide 8 who's essential or not. The Commission communicates 9 up to the agency as the government and the 10 government -- Governor's office is somewhere in that 11 mechanism, they decide what is essential or what is 12 not essential. That is one hundred percent 13 debatable. I'm not asking you to debate that. If 14 the inspectors are not deemed to be called 15 "essential," so be it, and I'm not asking you in any 16 way shape or form to defy, nor would you even 17 consider it, anyway, to defy what the Governor would 18 say. I only ask that this is the agency that has 19 the expertise. This is the agency that has 25 years 20 of experience in understanding what your industry 21 is. Nobody understands what the patrons are. No 22 part of government other than -- better than you do. 23 No one understands what the employees are, what -- 24 how large and vast this is. How much intense 25 planning goes into all of this. 34 1 So, to me, those are the factors that weigh 2 in that you all would be able to bring to this more 3 than the Governor can or anybody else because 4 they're just not in this business. That's what the 5 agency expertise, I think, that whole notion of 6 having broad discretion is all about, and I would 7 just urge that when you consider it, and I don't 8 think you're going to be anything that you think is 9 going to do against what the expectations are for 10 the author of the order that you're going to get. 11 But I urge that you consider to the extent 12 that you accept my remarks, and I think that there 13 are a few others here who would support what I said 14 here from the industry point of view. We're not 15 just trying to confuse this or not we're trying to 16 talk about the real situation here and try to 17 balance all of that is something that you all have. 18 I can't -- but I can't -- I don't know what the 19 order would say and I don't know what the surround 20 of the order will be. I mean I spend a little time 21 in government, too, and there's a lot of ways you 22 get information in or what you think you should do 23 the right thing. 24 I just ask that I know that when I first 25 heard and have had discussions over the last few 35 1 days, I had conversations with a lot of people who 2 would say, okay. You say close at 10:00 and maybe 3 that stretches to 11:00. That is not realistic. 4 That is not enough, and that is borne of folks who 5 are thinking of closing the casino in 1981 when we 6 had gaming that stopped at 4:00 in the morning for 7 four hours before it resumed again. Or 10:00 in the 8 morning whenever it resumed again. That's not this 9 and people ought not to be confused with this. And, 10 you know, it's not this -- and especially on this 11 4th of July weekend. So "orderly" is the key, and 12 my sense is you have discretion to -- and I can't 13 respect -- respectfully urge you to urge that as a 14 consideration on whoever is the author of the order 15 that gives it to you that there's a broader way to 16 look at this, and you got to give us a little room 17 here. That's the most I can say because I can't be 18 more precise in that, but you know, you don't need 19 me to tell you on that -- for the Casino Control Act 20 of how broad your discretion is and why you have 21 that broad discretion. Because you are responsible 22 for this whole industry, and it's important that you 23 take care of this industry with all the know-how 24 that you have and I -- again, I never urge you to 25 confront or anybody else that the executive of this 36 1 state. But I think that you can bring a lot of 2 knowledge that you could in your discretion and in 3 your advocacy powers. You cannot just say, oh, 4 well, we're going to have this like that. Because 5 the more I talk to the folks that actually operate 6 our casino, the more I see of what the problem would 7 be. And I think that it's a factor. 8 It's got to be a factor because I don't 9 think that anyone really wants to close the casino. 10 They don't want to close the casino, like it sounds 11 like it's a piece of what's caught in political 12 discussions that go on. So nobody wants to harm 13 this industry. No one wants to give this industry a 14 bad mark on -- in the financial marketplace. Or 15 with the patrons that we've worked so hard to build 16 up or with all the money that's been invested 17 recently and continues to be invested. It's a big 18 black eye, and I think you all are way more able to 19 put that into the mix than -- and I'm -- this is not 20 demeanor to the Governor's office. The Governor's 21 office who has to govern the entire span of 22 government. You are a very specific part of that. 23 So I would urge, the realistic notion is we 24 need days and not hours, and I will just urge that 25 you consider that. And as far as the law, it is not 37 1 a section of the statute as much as it is the broad 2 notion of the discretion you have throughout the 3 statute as viewed in so many of its functions. 4 COMMISSIONER EPPS: Madame Chair, if I may. 5 CHAIR KASSEKERT: Sure. 6 COMMISSIONER EPPS: I don't think I'm 7 telling tales out of school, Mr. Fusco, to tell you 8 that in the days leading up to this meeting we've 9 had many discussions about the very issues that 10 you've raised, and we're conscious of all those 11 issues that both you and Mr. Corbo raised and the 12 ramifications of any actions that we take and what 13 the consequences of those are. And to the extent 14 that we will have a seat at the table when the 15 decision is ultimately made about how to move along 16 in this process, I'm confident that the Chair will 17 express those concerns as they have been articulated 18 by you and as they have been discussed by us. 19 Nothing you have said is foreign to us and 20 nothing you have said has not been discussed and 21 debated by us as we try to come up with a plan that 22 we sincerely hope we never ever, ever have to put 23 into operation. 24 But trust me when I tell you that we've got 25 some talented individuals here. We've taken all the 38 1 input they have and a lot of the discussions we've 2 had are very much consistent with what you've said. 3 And we've tried to put a contingency plan together 4 that most effectively will do what you've asked to 5 be done. So I'm confident that whoever has a seat 6 at the table when the discussion has to happen be 7 mindful of your concerns, has your same concerns and 8 will express those. 9 MR. FUSCO: Well, I think -- I can ask no 10 more than you give us a fair opportunity and 11 consider what I have said as part of what you will 12 use in your decision mechanism. You know, that's -- 13 I can't say more than that. 14 CHAIR KASSEKERT: Thank you. 15 Commissioners, any questions? 16 COMMISSIONER SOMMELING: No questions, 17 Madame Chair. 18 CHAIR KASSEKERT: Commission Fedorko? 19 COMMISSIONER FEDORKO: Mr. Fusco, just so 20 I'm clear on what you have said for the last 20 21 minutes. 22 MR. FUSCO: I didn't say "brief." If you 23 notice. Corbo said "brief." I said "hello." 24 COMMISSIONER FEDORKO: Usually after talking 25 for 20 minutes you stand up and say "in a word" so. 39 1 We get an order from the Governor, is it 2 your -- are you saying that we have some discretion 3 as to the interpretation of that order, or we have 4 some latitude for that? I mean if he says the 5 casino will shut at 02:00 on Saturday morning. What 6 latitude do we have? What discretion do we have? 7 MR. FUSCO: There doesn't seem to be much in 8 the way of precedent here, but there's a lot of 9 newspaper articles around, and some of them quoted 10 the notion of -- let's take parks. Let's take 11 public parks. Oh, by the way, this is a 4th of July 12 weekend. We're not going to take people and not let 13 them come to public parks for the five days. We'll 14 let our nonessential employees patrol and be present 15 to maintain whatever safety is needed at the public 16 parks, the public beaches. And, you know, we'll get 17 around that till -- till Tuesday or Wednesday, that 18 would be just fine. 19 So I don't know what the order would be. If 20 the order says that you have to close the casinos at 21 11:00 at a particular time, I don't know other than 22 it really -- it really depends on what goes with the 23 order. What goes with the order. 24 My view of life, you know, they'll be plenty 25 communication of how much discretion you have. I 40 1 just say that on the communication of how much 2 discretion you have, I would respectfully urge you 3 to push do you back and indicate that this has got 4 to be in an orderly fashion, and we have the 5 expertise and you have to entrust us that we have 6 the expertise to allow us to do this in an orderly 7 way. I think different -- a 10:00 on July fourth 8 weekend is different than 10:00 on some non day at 9 the end of the February. It's just different. And 10 it's the same Commission with the same order but the 11 concepts and the context is different. And this 12 happens to oddly come at the context of the absolute 13 highest level of us driving people down here. 14 Bringing them down here. Their expectation is 15 they're going to be here to gamble. We've created 16 that expectation. 17 So that all I say is I don't know what is 18 going to be -- what is going to say nor what is 19 going to be said with it verbally when it's provided 20 to the Commission or what the expectation is going 21 to be. 22 So I -- Commissioner Fedorko, I wish I had 23 the great answer. I don't. I think you have a 24 difficult task in front of you, but you have always 25 over these years looked to the industry and tried to 41 1 consider the impact on the industry in whatever it 2 is you've been asked to do by anybody, and I just 3 don't have the answer to that question that you're 4 asking. I don't pretend to know that. 5 COMMISSIONER FEDORKO: Let me ask you this. 6 Has the Trump organization at all given any kind of 7 a warning to its patrons that there may be a 8 potential shutdown. 9 MR. FUSCO: No. Not a formal warning. No. 10 There's plenty -- any of the patrons who read the 11 papers certainly have heard this over the last week 12 or so, this possibility. But here's our -- we are 13 unable to -- well, we're not unable. We could 14 always say, look, we maybe we're going to be closed 15 down. 16 We have -- we have our obligations, also, I 17 say respectfully. Other obligations that are not 18 contrary to our obligations to regulate a company 19 but obligations to our shareholders to if it doesn't 20 happen, we are not going to be trying to undermine 21 the likelihood of folks coming down here. If 22 somebody tells us we're going to have to close, 23 believe me, we will do everything that we can to 24 comply as fully as possible with the unknown which 25 you're grappling with it as much as we are. But we 42 1 have not. And I don't think we would until it does 2 become clear. That's -- 3 COMMISSIONER FEDORKO: Okay. Thank you. 4 CHAIR KASSEKERT: Thank you. 5 Thank you, Mr. Fusco. 6 Mr. Moles? 7 MR. MOLES: Madame Chair, I'm going to waive 8 my time because I believe Mr. Fusco has really 9 covered everything. 10 VICE CHAIR FRULIO: Many words. 11 MR. MOLES: Much more eloquently as well. 12 Thank you. 13 CHAIR KASSEKERT: Thank you. 14 Miss Axilrod. 15 MS. AXILROD: Just very briefly. I promise 16 to be very quick, Madame Chair, members of the 17 Commission. 18 As I am the new kid on the block when it 19 comes to being general counsel, and trying to get it 20 right, and I try to do it every day, there are just 21 a couple of brief observations I want to make. And 22 one of them is I know how deliberate all the 23 decisions that you make are. I know the process, 24 and I have come to learn the process, and it's been 25 reminded to me when I need to have someone remind me 43 1 that everything we do is in an orderly fashion. If 2 we want to move a slot machine from there to there, 3 the most minute detail change that we make to our 4 casino floor, is a lengthy process and one very well 5 thought out. It's a process that has amazed me and 6 at times befuddled me, and I hope I can say that and 7 not mean any disrespect. I have learned to respect 8 it. I know why you do it, and I think it would be 9 exceedingly unfortunate if in a moment all of that 10 was undone, and you took a decision that was the 11 largest decision possibly to be made and threw away 12 all of those procedures and all that deliberateness 13 and did so quickly that all of those built-in 14 procedures and safeguards are not followed. And I 15 would just ask you to keep that in mind. 16 And I think to, you know, follow up on what 17 Mr. Fusco said, if you get an order that requires 18 you to do something at X hour, you know, I don't 19 know that you have much alternative but to comply 20 with that. I think what we are asking -- at least 21 what my expectation would be is that you ask for 22 something more orderly and something beyond, you 23 know, this weekend beyond a few days for the reasons 24 that Mr. Fusco said. 25 The only other thing that I want to add is I 44 1 have had the unfortunate experience -- and I hope 2 commenting on a case that is pending before this 3 Commission will not get me in any hot water. But I 4 was on our casino floor in when brief electrical 5 interruption froze up our slot machines, and I can 6 tell you how horrible it was. And I'm not just -- 7 I'm not talking about loss of revenue. I'm talking 8 about people. I'm talking about potential violence. 9 I'm talking about yelling, shoving, abusing our 10 employees. I don't know how it is that one would 11 walk on the floor and what? Shut off the power to 12 slot machines or tell people in an hour you've got 13 to be out of here? I was there on the floor that 14 night. It wasn't 4th of July weekend. It was 15 horrible. It was -- I was worried about the safety 16 and well-being of our employees and of our patrons, 17 and I hope we don't have to go there. 18 CHAIR KASSEKERT: Thank you. 19 MS. AXILROD: And that's all I have to say. 20 Mr. Lowry? 21 MS. AXILROD: Thank you very much. 22 MR. LOWRY: I'll try to be brief as well. 23 Just for the record I just wanted to note 24 that we served papers with Miss Fauntleroy and Mr. 25 Schwefel this morning, and we just want to reiterate 45 1 that we rely upon the position in those briefs. And 2 I won't repeat those. 3 Second, I just want to address Commission 4 Fedorko's one comment about discretion, latitude. 5 We've come a long way since 1978 when the 6 casino gaming was first authorized. The public was 7 extremely skeptical and scared of the effects of 8 gaming upon the industry. Since 1978, this 9 Commission has done the unbelievable task to 10 preserve, protect, and insulate the trust and 11 confidence in gaming. You've done such a remarkable 12 job that the industry itself has grown 13 exponentially, not just here in New Jersey but 14 worldwide. You see gaming now in Singapore. 15 Everywhere. And the Casino Control Act and the 16 rules and regulations promulgated by this Commission 17 have extended everywhere. New Jersey is at the 18 forefront of gaming and regulation. We have the 19 greatest, highest operating budget as far as gaming. 20 And we are seen as the most -- seen as the most 21 protected, most trusted, it's the most confidence I 22 guess -- that people have the most confident in our 23 way of business and our way of life here in casino 24 gaming. 25 Just wanted to simply submit that to the 46 1 extent that the Governor does hand down such an 2 order, the casino industry will have to mobilize 3 somewheres north of 40,000 employees, a million 4 square feet of casino space, and hundreds of 5 thousands of people who come down for the 4th of 6 July weekend. We just respectfully submit that 11 7 hours isn't sufficient. To preserve the trust and 8 confidence in gaming, we simply ask for a couple of 9 days in order to effect the policies and 10 prescriptions promulgated by the Commission. We 11 just believe five days is reasonable, and we ask 12 this just to continue the success that this industry 13 will have on the casino industry 14 CHAIR KASSEKERT: Thank you. 15 Any questions for Mr. Lowry? 16 COMMISSIONER SOMMELING: No questions, 17 Madame Chair. 18 No questions, Madame Chair. 19 CHAIR KASSEKERT: Director Auriemma? Mr. 20 Schwefel? 21 MR. AURIEMMA: I'd like to waive my time, 22 too, but I don't think I can at this point. I think 23 I need to address a few issues. 24 First, I think Mr. Fusco has very 25 convincingly described the economic, social, and 47 1 media harm that might befall a closure of casinos. 2 I think you recognize that. We recognize that. And 3 neither the Division nor the Commission want a 4 casino or all casinos to close. 5 We're regulators and what that clearly means 6 is we need casinos to operate so we can regulate 7 them. That's what we've devoted our lives to, our 8 careers to. And we certainly don't want to oversee 9 closure of casinos. That's not what we're all 10 about. We want successful casinos. We want 11 mob-free casinos. We want casinos to give New 12 Jersey a very positive vision. But, again, we're 13 faced with an unusual circumstance. One that may 14 never happen again. It's hard to say. But we are 15 dealing with a situation now that is potentially 16 beyond our control. And I heard Mr. Fusco talk 17 about discretion. And, yes, you have a lot of 18 discretion. Discretion that is given to you by the 19 Casino Control Act. And I as Director have a lot of 20 discretion, discretion that's given to me by the 21 Casino Control Act, but it's not unlimited. It's 22 circumscribed in many different ways. And more 23 importantly, it's circumscribed by directive orders 24 and directives from the Governor's office. And 25 depending upon what any order may say, and -- again, 48 1 we're talking hypothetically -- that order may 2 circumscribe the discretion that you have and the 3 discretion that I have. And whatever you do, 4 whatever order you issue today, is obviously in 5 preparation for what you think may be potentially 6 signed. And you have to take into account the 7 actual letter of the writing that the Governor gives 8 to you and to me, and you have to take into the 9 spirit of that order as well. And clearly casinos 10 are important to the State, but they are one aspect 11 of what is going to be affected by any potential 12 Governor's order. We're talking about, based on 13 published reports, a statewide shutdown. That's 14 going to affect your agency, my agency, and all the 15 departments of state government. It's a very, very 16 massive undertaking. And so we have to abide by a 17 very explicit language and spirit of the language 18 that's given to us by the Governor's order. 19 Again, Mr. Fusco, you know, talked about the 20 need for days. Well, we may not have days. That 21 may not be given to us. Clearly we all want an 22 orderly cessation of casino gaming if that's what 23 we're instructed to do. But to accomplish that 24 task, we have to abide by what the true intent of 25 the Governor's order is. Whether it be an exact 49 1 directive with regard to a time or whether it does 2 give you a little bit of discretion. Days may not 3 be possible at this point in time. But the industry 4 should know that after this meeting today, you're 5 not going anywhere. I'm not going anywhere. We're 6 here. Tonight, tomorrow, Sunday, Monday. Whatever 7 it takes. We will be here to address any and all 8 issues that are necessary to resolve this particular 9 issue before the Commission or before the Division. 10 So we're available essentially 24/7 at this point in 11 time. 12 With respect to Mr. Fusco's comments with 13 regard to patrons who are traveling down to Atlantic 14 City, we know that that presents a problem. And it 15 does pose the potential of a black eye, any closure 16 of any state operations potentially presents the -- 17 a black eye. But it should come as no surprise to 18 anyone -- at least in the past week or so -- who has 19 listened to the media, whether it be the print media 20 or television or radio, that a government shutdown 21 in New Jersey is imminent so and it should come as 22 no surprise to anyone who listens to that media that 23 the potential closure of a casino or of all the 24 casinos is at hand. That could happen. So I don't 25 believe that the vast majority of citizens of New 50 1 Jersey would be surprised at this point in time. 2 With respect to the procedures that are 3 necessary to close all 12 casinos, it's a very 4 daunting task. It's a daunting task for you and 5 your staff. It's a daunting task for my staff and 6 the New Jersey State Police assigned to the Division 7 of Gaming Enforcement. But we haven't just thought 8 of this today. We obviously have been preparing, as 9 has your staff. We have contacted casino security. 10 We have met. We have also discussed the potential 11 ways to close the casinos in an orderly way. With 12 respect to staffing, starting at 12:01 tonight, I 13 will be prepared, depending upon what the Governor's 14 order says, when and if it's signed -- I will be 15 prepared with well over 70 New Jersey State Police, 16 well over 60 New Jersey Division of Gaming 17 Enforcement investigators, with my slot laboratory 18 and with other selected individuals in the Division 19 of Gaming Enforcement to effectuate the Governor's 20 order and to any instructions that you give to me 21 with respect to an orderly closure. We will work 22 hand in hand with your staff with your inspectors. 23 Clearly crowd control is a potential issue. 24 It's something that has to be dealt with by casino 25 security, and it will be dealt with by New Jersey 51 1 State Police and my investigators. New Jersey State 2 Police will be in uniform to address any and all 3 patron issues that arise. We will be there to, 4 again, effectuate an orderly evacuation, an orderly 5 dispersement from all those casino hotels. 6 Whenever, whatever it may be. 7 Lastly, I think as Mr. Fusco aptly pointed 8 out, they'll be some pain. But you have a very 9 talented and experienced staff, and I have a very 10 talented and experienced staff. And to the extent 11 that we have to carry out any order that's given to 12 us, we will carry it out in a very professional way 13 and in a very successful way. Hopefully, if those 14 casinos are required to close, that closure will be 15 for a minimal period of time, and we will get them 16 reopened as quickly as possible. 17 Thank you 18 CHAIR KASSEKERT: Thank you. 19 Any questions for the Director? 20 COMMISSIONER SOMMELING: No questions, 21 Madame Chair. 22 CHAIR KASSEKERT: All right. I think we're 23 going to take a short recess. 24 MS. FAUNTLEROY: May I can make a point? 25 CHAIR KASSEKERT: Yes. Yes. 52 1 MS. FAUNTLEROY: Just a point of 2 clarification. Mr. Lowry referenced the documents 3 that were filed this morning. They were not a part 4 of this record unless you make them so. They were 5 received in the context of -- 6 MR. LOWRY: That was my intention to. 7 MS. FAUNTLEROY: You need to mark them and 8 present them so we can have them part of the record. 9 MR. LOWRY: Would you rather I do that now 10 or wait until -- 11 MS. FAUNTLEROY: They'll be taking a recess. 12 When they come back up. 13 CHAIR KASSEKERT: Very good. Thank you. 14 We'll be taking a short recess. 15 (A recess was taken from 6:12 to 7:26 p.m.) 16 CHAIR KASSEKERT: We'll go back on the 17 record. 18 Mr. Ingis? 19 MR. INGIS: Madame Chair, for the record, 20 two exhibits will be marked, P-1 and P-2. P-1 is a 21 letter dated June 29, 2006, from Chair Linda M. 22 Kassekert, to the New Jersey Secretary of State Nina 23 Mitchell Wells providing notice under the Open 24 Public Meetings Act. 25 Exhibit P-2 is dated June 30th, 2006. It 53 1 contains the documents filed by the law firm of 2 Ballard, Spahr, Andrews & Ingersoll on today's date 3 to the Honorable Steven P. Perskie, Superior Court 4 of New Jersey, Atlantic County. It contains the 5 following: One, an application for Order to Show 6 Cause with Temporary Restraints; two, a Verified 7 Complaint; three, a proposed Order to Show Cause 8 with Temporary Restraints; four, certification of 9 John B. Kearney, Esq.; five, a certification of 10 David Wright; and, six, a Brief in Support of 11 Application With Temporary Restraint. 12 CHAIR KASSEKERT: Is there any objection to 13 the entry of those exhibits? 14 MR. AURIEMMA: No objection. 15 CHAIR KASSEKERT: Seeing none, I'll have 16 them entered. 17 I have a few remarks to make at first. The 18 Commission has carefully considered the issues 19 presented, including the presentations from counsel 20 this evening. 21 We are well aware of the potential severe 22 ramifications of any cessation of casino operations, 23 should that ultimately occur. We hope that it does 24 not. Certainly during any period of a shutdown, the 25 anticipated revenue loss would have a devastating 54 1 financial impact not only upon the casino industry 2 but also upon those who benefit from the programs 3 funded by the gross revenue tax. 4 Nonetheless we are constrained by the 5 provisions of the Casino Control Act and the Federal 6 Fair Labor Standards Act. We are further duty-bound 7 to comply with all aspects of an executive order 8 emanating from the Governor's office. To a certain 9 extent, our action today is ministerial in nature. 10 We must take precautionary action today in order to 11 ensure an orderly compliance with any such executive 12 order in accordance with the casinos' licensees' 13 internal control submissions. 14 I assure you that, in the event that closure 15 occurs, the Commission will act to facilitate the 16 implementation of the orderly resumption of 17 operations expeditiously as possible. 18 It should be noted that the suspension of 19 the certificates of operation will affect only the 20 gaming operations and not the operations of the 21 hotel facility and its restaurants and other 22 amenities. 23 That having been said, there are bars 24 adjacent to and on the casino floor, some of which 25 have bartop slot machines. It would be incumbent 55 1 upon any licensees to monitor such venues that 2 remain open to the public to assure that no gaming 3 takes place. 4 Similarly, there will be instances where it 5 may be necessary for patrons to cross the gaming 6 floor by way of passage to another room, as is 7 currently the case with minors. Again, it will be 8 the responsibility of the casino licensees to ensure 9 that no gaming takes place under such circumstances. 10 Accordingly, I move to suspend the 11 certificate of operations held by each casino 12 licensee, contingent upon the issuance of an 13 executive order declaring a state of emergency due 14 to the absence of an Appropriations Act for fiscal 15 year 2007 following an orderly cessation of 16 services. 17 And that upon the issuance of such executive 18 order, each casino licensee shall effectuate the 19 orderly closure of its casino and simulcasting 20 facilities, and the cessation of gaming and 21 simulcasting wagering activities in accordance with 22 its approved internal controls. 23 I further move to delegate authority to the 24 Chair for the proper implementation of the closing 25 of the casinos and the simulcasting facilities and 56 1 the cessation of gaming and simulcasting wagering, 2 consistent with the executive order, and to delegate 3 authority to the Chair or my designee to vacate the 4 suspension of each certificate of operation and to 5 implement the orderly reopening of casino and 6 simulcast wagering facilities and the resumption of 7 casino and simulcasting wagering activities at such 8 time and under such circumstances as the Chair deems 9 appropriate after being advised by the Governor that 10 the state employees required for the operation of 11 casino may resume their duties. 12 I so move. Is there a second? 13 COMMISSIONER SOMMELING: Second. 14 CHAIR KASSEKERT: And this is a voice vote, 15 so all those in favor signify by saying "aye." 16 (Ayes.) 17 CHAIR KASSEKERT: Opposed? 18 (No response.) 19 CHAIR KASSEKERT: Motion carries. 20 I'll now entertain a motion to adjourn. 21 COMMISSIONER SOMMELING: Motion to adjourn. 22 COMMISSIONER FEDORKO: Second. 23 CHAIR KASSEKERT: The motion has been made 24 and seconded. All in favor? 25 (Ayes.) 57 1 CHAIR KASSEKERT: Opposed? 2 (No response.) 3 CHAIR KASSEKERT: The motion carries. 4 MS. FAUNTLEROY: I would -- if I may, I 5 would ask Mr. Corbo for Casino Association present 6 to identify for us, if you can, to me those involved 7 in security details if we meet tomorrow, if we need 8 to, so we can discuss protocol for cessation. 9 CHAIR KASSEKERT: Thank you. 10 (The meeting was adjourned at 7:35 p.m.) 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 58 1 2 C E R T I F I C A T E 3 4 5 I, DARLENE SILLITOE, a Certified Shorthand 6 Reporter and Notary Public of the State of New 7 Jersey, certify that the foregoing is a true and 8 accurate transcript of the proceedings. 9 10 11 I further certify that I am neither 12 attorney, of counsel for, nor related to or employed 13 by any of the parties to the action; further that I 14 am not a relative or employee of any attorney or 15 counsel employed in this case; nor am I financially 16 interested in the action. 17 18 19 DARLENE SILLITOE CSR 20 License No XI01023 21 22 Dated: June 30, 2006 23 My Commission Expires on July 10, 2009 24 ID No 2062871 25