1 1 STATE OF NEW JERSEY 2 CASINO CONTROL COMMISSION 3 - - - - - - - - - - - - - - - - - - - 4 5 PUBLIC MEETING NO. 06-08-16 6 7 - - - - - - - - - - - - - - - - - - - 8 9 Wednesday, August 16, 2006 10 Atlantic City Commission Offices 11 Tennessee and Boardwalk 12 Atlantic City, New Jersey 08401 13 10:30 a.m. to 11:05 a.m. 14 15 16 Certified Shorthand Reporter: Christine Stanco 17 - - - - - - - - - - - - - - - - - - - - - - - - - 18 19 20 CIPOLLONI & ASSOCIATES, INC. 21 CERTIFIED SHORTHAND REPORTERS 22 1125 Atlantic Avenue, Suite 416 23 Atlantic City, New Jersey 08401 24 (609) 348-9190 25 2 1 B E F O R E : 2 CASINO CONTROL COMMISSION: LINDA M. KASSEKERT, CHAIR 3 RALPH G. FRULIO, VICE CHAIR MICHAEL C. EPPS, COMMISSIONER (ABSENT) 4 WILLIAM T. SOMMELING, COMMISSIONER MICHAEL A. FEDORKO, COMMISSIONER 5 PRESENT FOR THE CASINO CONTROL COMMISSION: 6 DARYL W. NANCE, ADMINISTRATIVE ANALYST DANIEL J. HENEGHAN, PUBLIC INFORMATION 7 OFFICER 8 OFFICE OF THE GENERAL COUNSEL: DIANNA W. FAUNTLEROY, GENERAL COUNSEL/ 9 EXECUTIVE SECRETARY STEVEN M. INGIS, ASSISTANT GENERAL COUNSEL 10 DENIS CORBETT, SENIOR COUNSEL THERESA M. NAGENGAST, SENIOR COUNSEL 11 LON E. MAMOLEN, SENIOR COUNSEL BERNADETTE T. FRIGEN, PROGRAM SUPERVISOR 12 SANDRA DELIA, LEGAL SUPPORT SPECIALIST 13 DIVISION OF GAMING ENFORCEMENT: DEPUTY ATTORNEYS GENERAL: 14 JACK ADAMS JAMES ARMSTRONG 15 TIMOTHY FICCHI RAYMOND MARQUEZ 16 RICK McDONOUGH CYRUS P. PITRE 17 LANE STEBBINS BEVERLY TANENHAUS 18 19 20 21 22 23 24 25 3 1 A P P E A R A N C E S: ITEM 3 ADJOURNED 2 ITEM 4 JAMES ARMSTRONG, DIVISION STAFF ITEM 5 STEVEN M. INGIS, ASSISTANT GENERAL 3 COUNSEL LANE STEBBINS, DIVISION STAFF 4 PATRICIA M. WILD, ESQ. FOR: RESORTS INTERNATIONAL HOTEL, INC. 5 ITEM 6 DENIS CORBETT, SENIOR COUNSEL LANE STEBBINS, DIVISION STAFF 6 DEREK TIMMS, ESQ. FOR: JAMES DOHERTY 7 ALAN C. STALLER, ESQ. FOR: ROBERT SWAN 8 ITEM 7 BERNADETTE T. FRIGEN, PROGRAM SUPERVISOR BEVERLY TANENHAUS, DIVISION STAFF 9 ITEM 8 THERESA M. NAGENGAST, SENIOR COUNSEL RICK McDONOUGH, DIVISION STAFF 10 JUDITH BABINSKI, ESQ. FOR: CINGULAR WIRELESS PCS, LLC 11 ITEM 9 THERESA M. NAGENGAST, SENIOR COUNSEL JACK ADAMS, DIVISION STAFF 12 MARIE JONES, ESQ. FOR: CUMMINS-ALLISON CORPORATION 13 ITEM 10 SANDRA DELIA, LEGAL SUPPORT SPECIALIST RAYMOND MARQUEZ, DIVISION STAFF 14 KAREN WOSNACK, ESQ. FOR: HARRAH'S OPERATING COMPANY 15 ITEM 11 SANDRA DELIA, LEGAL SUPPORT SPECIALIST RAYMOND MARQUEZ, DIVISION STAFF 16 KAREN WOSNACK, ESQ. FOR: HARRAH'S OPERATING COMPANY 17 ITEM 12 LON E. MAMOLEN, SENIOR COUNSEL TIMOTHY FICCHI, DIVISION STAFF 18 PATRICIA M. WILD, ESQ. FOR: RIH ACQUISITIONS NJ, LLC 19 ITEM 13 LON E. MAMOLEN, SENIOR COUNSEL MARIE JONES, ESQ. 20 FOR: WMS GAMING, INC. ITEM 14 LON E. MAMOLEN, SENIOR COUNSEL 21 TIMOTHY FICCHI, DIVISION STAFF MARIE JONES, ESQ. 22 FOR: WMS GAMING, INC. ITEM 15 LON E. MAMOLEN, SENIOR COUNSEL 23 ITEM 16 DENIS CORBETT, SENIOR COUNSEL CYRUS P. PITRE, DIVISION STAFF 24 NANCY AXILROD, ESQ. FOR: ACE GAMING, LLC 25 DEREK TIMMS, ESQ. FOR: FRANK DENTE 4 1 AGENDA PUBLIC MEETING NO. 06-08-16 2 August 16, 2006, 10:30 a.m. ITEM DESCRIPTION PAGE VOTE 3 1 Ratification of the minutes of August 2, 2006 public meeting 9 9 4 2 Applications for employee and casino service industry licenses: 5 Remand for hearings 18 license applications for initial and/or 6 renewal of casino key and casino employee licenses 10 10 7 Remand for hearing CSI license applications of Worldtech Enterprises, 8 Inc. 11 11 Grant 7 applications for initial 9 and/or renewal of casino key and casino employee licenses 11 12 10 Grant CSI license and renewal application of Allied Beverage Group, 11 LLC 12 12 Grant renewal applications for 12 casino employee licenses and for qualification: 13 Mark Juliano, Chief Operating Officer for Trump Taj Mahal Associates, 14 LLC, Trump Marina Associates, LLC and Trump Plaza Associates, LLC; 15 Allan W. Noble, Vice President of Hotel Operations for Marina Associates; 16 Kevin S. Smith, Regional Vice President of Litigation for RIH 17 Acquisition NJ, LLC and Resorts International Hotel, Inc. 12 13 18 3 Petition of Gaming Partners International USA, Inc. (GPI-USA), Gaming Partners 19 International S.A.S. (GPI-SAS) and GPI Mexicana S.A. de C.V. (GPI-Mexicana) 20 for the temporary qualification of Robert J. Kelly, pursuant to N.J.A.C. 19:51-1.14B 21 and for the issuance of casino service industry licenses to GPI-USA, GPI-SAS 22 and GPI-Mexicana pursuant to N.J.S.A. 5:12-92(a) (PRN 1380605) ADJ'D 23 4 Stipulations of settlement and consent agreements: 24 A) Charles J. Cipparone(Not present) (06-0194-EA) 14 15 25 B) Scott T. Eldridge (05-0543-ER) 14 15 C) Steven Foster (06-0169-ER) 14 15 5 1 ITEM DESCRIPTION PAGE VOTE D) Cristina M. Barrella(Not present) 2 (05-0623-RC) 14 15 E) William E. Joyner (05-0818-ER) 14 15 3 F) Lynette M. Erman (06-0326-EA) 14 15 G) Robert L. Daughtry, Sr. (a/k/a 4 Bobbie L. Daughtry, Robert Hodge, Robert Doughtry) (06-0136-EA) ADJ'D 5 H) David B. Johnson (05-0680-RC) ADJ'D I) Robert Wind (06-0388-EA) 14 15 6 5 Stipulation of Settlement in State vs. Resorts International Hotel, Inc., 7 (d/b/a Resorts Atlantic City) (06-0217-VC) 15 17 8 6 Initial Decision in State v. Boardwalk Regency Corporation (d/b/a Caesars 9 Atlantic City), James Doherty, Donald Smith, John Paul Arambulo and Robert 10 Swan (05-0307-VC) 17 22 7 Preliminary hearing concerning the exclusion 11 of State vs. John Michael Redington (a/k/a Jerome Casey, James Knowles, John McCormick, 12 William McCormick, John Reddington, Michael Reddington, Michael Reed, John 13 Reilly and John Riley) (06-0112-EL) 24 26 8 Petition of Cingular Wireless PCS, LLC for 14 exemption from casino service industry licensing requirement (PRN 0890601) 26 27 15 9 Petition of Cummins-Allison Corporation for waiver of qualification requirements 16 of certain Shareholders(PRN 1030609) 27 31 10 Petition of Harrah's Operating Company, 17 Inc., Marina Associates, Atlantic City Showboat, Inc., Bally's Park Place, Inc. 18 and Boardwalk Regency Corp. requesting permission for Robert Hebeler to perform 19 the duties and exercise the powers of Vice President Customer Service 20 Assurance (Eastern Division) for HOC pending plenary qualification 21 (PRN 2150612) 31 33 11 Consideration of the qualification of 22 Mary H. Thomas to serve as Senior Vice President of Human Resources for Harrah's 23 Entertainment, Inc. and Harrah's Operating Company, Inc. 33 34 24 12 Petition of RIH Acquisitions NJ, LLC, (d/b/a Atlantic City Hilton), for an 25 amendment to its certificate of operation and casino hotel alcoholic beverage license 6 1 ITEM DESCRIPTION PAGE VOTE to permit a temporary expansion of its 2 casino floor (PRN 2150609) 34 37 13 Petition of WMS Gaming, Inc. for approval 3 of the "Reel Legends" Multi-Casino Progressive Slot System and its Associated 4 Slot System Agreement, pursuant to N.J.S.A. 5:12-82(c) and N.J.A.C. 5 19:45-1.39A (PRN 2020613) 37 38 14 Proposed temporary adoption of amendments 6 and new rule for Three Card Bonus Wager in let it ride poker; authorization of 7 rule making experiment for Three Card Bonus Wager, pursuant to N.J.S.A. 8 5:12-69e 39 41 15 Proposed adoption of amendments and new 9 rules for Two Card Joker Poker 41 42 16 State v. Ace Gaming, LLC, (d/b/a Sands 10 Casino and Hotel), and Frank Dente (06-0216-VC) 22 24 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 7 1 E X H I B I T S 2 3 NUMBER DESCRIPTION EVD 4 ITEM 2 5 EL-1 Remand for hearings 18 license 6 applications 10 7 EL-2 Grant 7 license applications 10 8 9 10 11 12 (Exhibits retained by Commission.) 13 14 15 16 17 18 19 20 21 22 23 24 25 8 1 MR. NANCE: Good morning. I would like 2 to read an opening statement. 3 This is to advise the general public in 4 compliance with Chapter 231 of the Public Laws of 5 1975 entitled the "Open Public Meetings Act," the 6 New Jersey Casino Control Commission on October 7 13th, 2005 filed with the Secretary of State at 8 the State House in Trenton an annual meeting 9 schedule. 10 On October 14th, copies were mailed to 11 the Press of Atlantic City, the Newark Star 12 Ledger and the Office of the Clerk of Atlantic 13 City. 14 Members of the press will be permitted 15 to take photographs and we ask that this be done 16 in a manner which is not disruptive or 17 distracting to the Commission. 18 The use of cellular telephones in the 19 Public Meeting Room while the Commission is in 20 session is prohibited. 21 Any member of the public who wish to 22 address the Commission will be given the 23 opportunity to do so before the Commission 24 adjourns for the day. 25 Please stand for the Pledge of 9 Item No. 1 1 Allegiance. 2 (Whereupon, the Pledge of Allegiance was 3 executed.) 4 CHAIR KASSEKERT: Good morning. 5 MR. NANCE: Good morning. The matters 6 discussed in closed session were employee and 7 enterprise license matters; the Commission 8 approved the August 2nd, 2006 closed session 9 minutes; litigation update regarding Warren 10 Lackland and Lewis M. Springer, Jr. vs. State of 11 New Jersey, Casino Control Commission; appeal in 12 applications of Interstate Drywall Corporation, 13 et al; Wirtz vs. Casino Control Commission, 14 Division of Gaming Enforcement; Gloria Ford vs. 15 State of New Jersey, Casino Control Commission, 16 et al; and Tyron J. Floyd vs. Casino Control 17 Commission and Sands Hotel Casino. 18 Item No. 1, ratification of the minutes 19 of August 2, 2006. 20 COMMISSIONER SOMMELING: Move to approve. 21 COMMISSIONER FEDORKO: Second. 22 CHAIR KASSEKERT: The motion has been 23 made and seconded. All in favor? 24 (Aye.) 25 CHAIR KASSEKERT: Opposed? 10 Item No. 2 1 (No response.) 2 CHAIR KASSEKERT: The motion carries. 3 (The Commission members vote unanimously 4 in favor of the motion.) 5 MR. NANCE: Item No. 2, applications for 6 employee and casino service industry licenses. 7 This agenda item will be entered as Exhibit Lists 8 1 and 2. 9 (Whereupon, Exhibit Lists 1 and 2 were 10 entered into evidence.) 11 MR. NANCE: Exhibit List 1 consists of 18 12 applications for initial and/or renewal of casino 13 key and casino employee licenses. The Division 14 has objected to licensure. 15 VICE CHAIR FRULIO: Motion to remand for 16 hearings. 17 COMMISSIONER FEDORKO: Second. 18 CHAIR KASSEKERT: The motion has been 19 made and seconded. All in favor? 20 (Aye.) 21 CHAIR KASSEKERT: Opposed? 22 (No response.) 23 CHAIR KASSEKERT: The motion carries. 24 (The Commission members vote unanimously 25 in favor of the motion.) 11 Item No. 2 1 MR. NANCE: For consideration is the 2 casino service industry license applications of 3 Worldtech Enterprises, Inc. The Division has 4 objected to this application. 5 VICE CHAIR FRULIO: Motion to remand for 6 hearing. 7 COMMISSIONER FEDORKO: Second. 8 CHAIR KASSEKERT: The motion has been 9 made and seconded. All in favor? 10 (Aye.) 11 CHAIR KASSEKERT: Opposed? 12 (No response.) 13 CHAIR KASSEKERT: The motion carries. 14 (The Commission members vote unanimously 15 in favor of the motion.) 16 MR. NANCE: Exhibit List 2 consists of 7 17 applications for initial and/or renewal of casino 18 key and casino employee licenses. Staff and the 19 Division have recommended that these licenses be 20 granted. 21 VICE CHAIR FRULIO: Motion to grant 22 applications. 23 COMMISSIONER FEDORKO: Second. 24 CHAIR KASSEKERT: The motion has been 25 made and seconded. All in favor? 12 Item No. 2 1 (Aye.) 2 CHAIR KASSEKERT: Opposed? 3 (No response.) 4 CHAIR KASSEKERT: The motion carries. 5 (The Commission members vote unanimously 6 in favor of the motion.) 7 MR. NANCE: For consideration is the 8 casino service industry license renewal 9 application of Allied Beverage Group, LLC. Staff 10 and the Division have recommended that this 11 application be granted. 12 VICE CHAIR FRULIO: Motion to grant 13 application. 14 COMMISSIONER FEDORKO: Second. 15 CHAIR KASSEKERT: The motion has been 16 made and seconded. All in favor? 17 (Aye.) 18 CHAIR KASSEKERT: Opposed? 19 (No response.) 20 CHAIR KASSEKERT: The motion carries. 21 (The Commission members vote unanimously 22 in favor of the motion.) 23 MR. NANCE: For consideration are the 24 following applications for initial and renewal of 25 casino key employee licenses and for 13 Item No. 2 1 qualification: Mark Juliano, Chief Operating 2 Officer for Trump Taj Mahal Associates, LLC, 3 Trump Marina Associates, LLC and Trump Plaza 4 Associates, LLC; Allan W. Noble, Vice President 5 of Hotel Operations for Marina Associates; and 6 Kevin S. Smith, Regional Vice President of 7 Litigation for RIH Acquisition New Jersey and 8 Resorts International, Inc. 9 Staff and the Division have recommended 10 that these applications be granted. 11 VICE CHAIR FRULIO: Motion to grant 12 initial and renewal of key licenses and for 13 qualification. 14 COMMISSIONER FEDORKO: Second. 15 CHAIR KASSEKERT: The motion has been 16 made and seconded. This is a roll call vote. 17 MR. NANCE: Commissioner Sommeling? 18 COMMISSIONER SOMMELING: Yes. 19 MR. NANCE: Commissioner Fedorko? 20 COMMISSIONER FEDORKO: Yes. 21 MR. NANCE: Vice Chair Frulio? 22 VICE CHAIR FRULIO: Yes. 23 MR. NANCE: Chair Kassekert? 24 CHAIR KASSEKERT: Yes. 25 MR. NANCE: The record will reflect that 14 Item No. 4 1 the motion is unanimous. 2 Item No. 3 has been adjourned without 3 date. 4 Item No. 4, stipulations of settlement 5 and consent agreements. When I call your name, 6 please come forward, stand behind this middle 7 table spreading across the room so that you may 8 be seen: Charles Cipparone, Scott Eldridge, 9 Steven Foster, Cristina Barrella, William Joyner, 10 Lynette Erman and Robert Wind. 11 Stipulation of settlement in Robert 12 Daughtry and David Johnson has been adjourned. 13 CHAIR KASSEKERT: Thank you. I'm going to 14 ask that each of you state your name for the 15 record starting with you, sir. 16 MR. JOYNER: My name is William Joyner. 17 MR. ELDRIDGE: Scott Eldridge. 18 MS. ERMAN: Lynette Erman. 19 MR. FOSTER: Steven Foster. 20 MR. WIND: Bob Wind. 21 CHAIR KASSEKERT: Okay. In a moment, 22 we're going to vote on the stipulations which 23 you've agreed to with the Division of Gaming 24 Enforcement. 25 I'm going to ask at this point if any of 15 Item No. 5 1 you would like to be heard on your matter. You 2 don't have to say anything if you don't want to. 3 Does anyone wish to be heard? 4 (No response.) 5 CHAIR KASSEKERT: Okay, thank you. 6 Mr. Armstrong? 7 MR. ARMSTRONG: The Division has nothing 8 to add, Madam Chair. 9 CHAIR KASSEKERT: Okay. Any questions? 10 COMMISSIONER SOMMELING: Madam Chair, 11 move to approve the stipulations. 12 COMMISSIONER FEDORKO: Second. 13 CHAIR KASSEKERT: The motion has been 14 made and seconded. All in favor? 15 (Aye.) 16 CHAIR KASSEKERT: Opposed? 17 (No response.) 18 CHAIR KASSEKERT: The motion carries. 19 (The Commission members vote unanimously 20 in favor of the motion.) 21 CHAIR KASSEKERT: Thank you very much for 22 coming. Good luck. 23 MR. NANCE: Item No. 5, stipulation of 24 settlement in State vs. Resorts International 25 Hotel, Inc. 16 Item No. 5 1 Mr. Ingis? 2 MR. INGIS: Good morning, Madam Chair, 3 Commissioners. This is a stipulation of 4 settlement which if approved will result in an 5 imposition of penalty in the amount of $40,000. 6 Patricia Wild is here on behalf of the 7 Respondent, and Lane Stebbins is on behalf of the 8 Division. 9 CHAIR KASSEKERT: Thank you. 10 Good morning, Miss Wild. 11 MS. WILD: Good morning, Madam Chair and 12 members of the Commission. 13 MR. STEBBINS: Good morning. 14 MS. WILD: We have reviewed the 15 stipulation, and we ask that you adopt it as 16 proposed. 17 CHAIR KASSEKERT: Thank you. 18 Mr. Stebbins? 19 MR. STEBBINS: Thank you. I join in Miss 20 Wild's comments. The papers are before you, I 21 think they're clear, and I on behalf of the 22 Division would urge that you adopt the 23 stipulation. 24 CHAIR KASSEKERT: Thank you. 25 Any questions? 17 Item No. 6 1 COMMISSIONER SOMMELING: No questions, 2 Madam Chair. 3 COMMISSIONER FEDORKO: Motion to approve 4 the Stipulation of Settlement and impose a civil 5 penalty of $40,000 against Resorts International 6 Hotel, Inc. for violation of Commission 7 regulations regarding access to its information 8 system. 9 VICE CHAIR FRULIO: Second. 10 CHAIR KASSEKERT: The motion has been 11 made and seconded. All in favor? 12 (Aye.) 13 CHAIR KASSEKERT: Opposed? 14 (No response.) 15 CHAIR KASSEKERT: The motion carries. 16 (The Commission members vote unanimously 17 in favor of the motion.) 18 CHAIR KASSEKERT: Thank you. 19 MS. WILD: Thank you. 20 MR. NANCE: Item No. 6, initial decision 21 in State vs. Boardwalk Regency Corporation, James 22 Doherty, Donald Smith, John Paul Arambulo and 23 Robert Swan; excuse me for the mispronunciation. 24 Mr. Corbett? 25 MR. CORBETT: Good morning, Chair, 18 Item No. 6 1 Commissioners. 2 For your consideration this morning, you 3 have the initial decision of Commissioner Fedorko 4 finding Respondent Robert Swan not to be in 5 violation of the Commission regulations regarding 6 surveillance, but finding Respondent James 7 Doherty to be in violation of those regulations, 8 and recommending that Respondent Doherty's casino 9 key employee license be suspended for 20 days. 10 Mr. Stebbins is here for the Division. 11 MR. STALLER: Alan Staller for 12 Mr. Donnelly here for Mr. Swan. Mr. Donnelly 13 couldn't be here today. 14 CHAIR KASSEKERT: Okay. 15 MR. CORBETT: Mr. Timms is here for 16 Respondent Doherty. 17 CHAIR KASSEKERT: Mr. Stebbins? 18 MR. STEBBINS: Chair Kassekert, members 19 of the Commission, you have the initial decision. 20 You have some responsive papers filed by Deputy 21 Attorney General Zarrillo, and I would ask that 22 you move forward and adopt the initial decision 23 and impose the appropriate penalties. 24 CHAIR KASSEKERT: Thank you. 25 Mr. Staller, Mr. Timms? 19 Item No. 6 1 MR. TIMMS: We would rely on the record. 2 CHAIR KASSEKERT: Very good. 3 Mr. Staller? 4 MR. STALLER: I'd like to address the 5 Commission. Mr. Donnelly did pose in the letter 6 couple of exceptions to the decision, one of 7 which involves the law if the Commission approves 8 the decision, then that becomes a moot issue, but 9 there was some wording in the language of the 10 decision that made it sound like Mr. Swan was 11 denied -- dismissed because of these actions, and 12 I don't believe there was, according to 13 Mr. Donnelly, evidence taken on that issue, and 14 it puts him in a funny position because it could 15 be misinterpreted. Mr. Swan was not dismissed 16 because of this action. 17 It's on Page 6 of the decision by Mr. 18 Fedorko, and Mr. Donnelly's requesting that the 19 wording, the sentence reads, "Robert Swan was not 20 terminated by Caesars as a result of this 21 incident". It's the beginning of the second full 22 paragraph on Page 6, and Mr. Donnelly indicated 23 to me Mr. Fedorko would know this, I wouldn't 24 know, that there was no evidence taken as to the 25 cause of his dismissal, and then it would be more 20 Item No. 6 1 appropriate to say Mr. Swan was not immediately 2 terminated by Caesars as a result of this 3 incident, which would be accurate, more accurate 4 than, I believe, than it's stated. 5 CHAIR KASSEKERT: But the fact was that 6 he was not terminated. I don't know that -- 7 MR. STALLER: He was terminated. 8 CHAIR KASSEKERT: Ultimately but not 9 terminated at that point. 10 MR. STALLER: He was not immediately 11 terminated at that point, and the language seems 12 to say he was not terminated because of this 13 action, and we don't know that one way or the 14 other. 15 CHAIR KASSEKERT: Mr. Stebbins, 16 Mr. Corbett? 17 MR. CORBETT: Chair, I think the reading 18 of the full paragraph makes it clear that 19 Respondent Swan was not fired at the same time as 20 the other respondents, but he was terminated by 21 the casino licensee at a later date. 22 CHAIR KASSEKERT: Yes, I'm not sure that 23 I follow your argument. 24 Mr. Stebbins? 25 MR. STEBBINS: I agree with Mr. Corbett. 21 Item No. 6 1 I think in the context of the full reading, it 2 tells what had happened. 3 CHAIR KASSEKERT: I would agree. Thank 4 you for your comments though. 5 Any questions? 6 COMMISSIONER SOMMELING: Madam Chair -- 7 MR. STALLER: Sorry, I have one other 8 comment I'd like to make. 9 CHAIR KASSEKERT: Sure. 10 MR. STALLER: Mr. Swan has worked in the 11 -- for 22 years in the casino surveillance 12 business. The last 16 years, he was a 13 supervisor, and I'm assuming the press is here, 14 and his reputation has been really just marred in 15 the press, and I would hope they would exonerate 16 him with the same strength of words that they did 17 in the past by accusing him. 18 CHAIR KASSEKERT: Thank you. 19 Well, the press is here, Mr. Wittkowski. 20 Any other questions? 21 COMMISSIONER SOMMELING: Madam Chair, I 22 move to adopt the initial decision; and A, find 23 Robert Swan not in violation of Commission 24 regulations; and B, find James Doherty in 25 violation of N.J.A.C. 19:45-1.10b and 1.11b and 22 Item No. 16 1 suspend his casino key employee license for 20 2 working days. 3 VICE CHAIR FRULIO: Second. 4 CHAIR KASSEKERT: The motion has been 5 made and seconded. All in favor? 6 (Aye.) 7 CHAIR KASSEKERT: Opposed? 8 (No response.) 9 CHAIR KASSEKERT: The motion carries. 10 (The Commission members vote unanimously 11 in favor of the motion.) 12 CHAIR KASSEKERT: Thank you. 13 MR. STALLER: Thank you. 14 MR. TIMMS: Thank you. 15 MR. STEBBINS: Thank you. 16 MR. NANCE: For your consideration is 17 Item No. 16, State versus Ace Gaming, LLC and 18 Frank Dente. 19 Mr. Corbett? 20 CHAIR KASSEKERT: We're moving to 16 21 first. 22 MR. CORBETT: Chair, Commissioners, 23 approval of this stipulation in this case will 24 result in the casino licensee paying a civil 25 penalty of $25,000, and individual Respondent 23 Item No. 16 1 Frank Dente receiving a letter of reprimand. 2 Miss Axilrod is here for the Sands, 3 Mr. Timms for Mr. Dente, and Cyrus Pitre for the 4 Division. 5 CHAIR KASSEKERT: Thank you. 6 Good morning, Miss Axilrod. 7 MS. AXILROD: Good morning. We have 8 reviewed the stipulation as has been provided, 9 and we ask that you adopt it without any changes. 10 CHAIR KASSEKERT: Thank you. 11 Mr. Timms? 12 MR. TIMMS: We additionally ask that you 13 adopt. 14 MR. PITRE: The Division, on behalf of 15 the Division and Deputy Attorney General Charles 16 Kimmel, I would ask that you adopt the 17 stipulation. 18 CHAIR KASSEKERT: Thank you. 19 Any questions? 20 COMMISSIONER SOMMELING: No questions, 21 Madam Chair. 22 VICE CHAIR FRULIO: Move we adopt the 23 stipulation and assess the following penalties 24 for violation of Commission regulations regarding 25 N.J.A.C. 19:45-1.55b, 19:46-1.28(a)(10) and 24 Item No. 7 1 19:46-1.20(a)(2): A, impose a civil penalty of 2 $25,000 against Ace Gaming, LLC; and B, a letter 3 of reprimand shall be issued to Frank Dente and 4 made a part of his employee file. 5 COMMISSIONER FEDORKO: Second. 6 CHAIR KASSEKERT: The motion has been 7 made and seconded. All in favor? 8 (Aye.) 9 CHAIR KASSEKERT: Opposed? 10 (No response.) 11 CHAIR KASSEKERT: The motion carries. 12 (The Commission members vote unanimously 13 in favor of the motion.) 14 CHAIR KASSEKERT: Thank you. 15 MR. NANCE: Item No. 7, preliminary 16 hearing concerning the exclusion of State versus 17 John Michael Redington. 18 Miss Frigen? 19 MS. FRIGEN: Good morning, Madam Chair, 20 Commissioners. Before we hear from the Division, 21 let me ask for the record whether Mr. Redington 22 is present or represented today? 23 (No response.) 24 MS. FRIGEN: Apparently not. I would 25 refer this matter over to DAG Tanenhaus. 25 Item No. 7 1 CHAIR KASSEKERT: Good morning, Miss 2 Tanenhaus. 3 MS. TANENHAUS: Good morning, Chair, 4 fellow Commissioners. 5 The Division is asking today for 6 preliminary exclusion for John Michael Redington, 7 and we have presented voluminous, I believe, 8 documentation and iteration of Mr. Redington's 9 misconduct over the course of many years in 10 virtually every casino. So I am prepared to 11 answer any questions that you might have, but we 12 stand on the papers. 13 CHAIR KASSEKERT: Thank you. 14 Any questions? 15 COMMISSIONER SOMMELING: No questions, 16 Madam Chair. 17 Move to grant the Division's request for 18 a preliminary order placing the name of John 19 Michael Redington on the exclusion list, pending 20 final action on the related petition for final 21 exclusion. 22 COMMISSIONER FEDORKO: Second. 23 CHAIR KASSEKERT: The motion has been 24 made and seconded. 25 Let me just say that with respect to 26 Item No. 8 1 this issue, not only do I think the Division has 2 met its burden under the statute with respect to 3 the crimes convicted and punishable by more than 4 six months, but given, and I think we have to 5 look at these cases on a case by case basis, and 6 they're very fact specific, but given the amount 7 of information provided with respect to the 8 disruption caused in the casinos, and I think the 9 fear for public safety on the part of some of the 10 casino employees, I agree that this is warranted. 11 So we have a motion which has been made 12 and seconded. All those in favor? 13 (Aye.) 14 CHAIR KASSEKERT: Opposed? 15 (No response.) 16 CHAIR KASSEKERT: Motion carries. 17 (The Commission members vote unanimously 18 in favor of the motion.) 19 CHAIR KASSEKERT: Thank you very much. 20 MR. NANCE: Item No. 8, petition of 21 Cingular Wireless PCS, LLC for exemption from 22 casino service industry licensing requirement. 23 Miss Nagengast? 24 MS. NAGENGAST: Good morning, 25 Commissioners. Miss Babinski is here on behalf 27 Item No. 8 1 of Petitioner, Rick McDonough on behalf of the 2 Division. 3 CHAIR KASSEKERT: Thank you. 4 Good morning, Miss Babinski. 5 MS. BABINSKI: Good morning. I'd like to 6 rely upon the papers before the Commission in 7 this matter. 8 MR. McDONOUGH: I submitted a report 9 dated May 30th of this year in which we 10 recommended this petition be granted. I'd be 11 happy to respond to any questions the Commission 12 may have. 13 CHAIR KASSEKERT: Any questions? 14 COMMISSIONER SOMMELING: No questions. 15 COMMISSIONER FEDORKO: Motion to grant 16 the petition of Cingular Wireless PCS for an 17 exemption from casino service industry licensure 18 based on it being comparably regulated as 19 permitted by N.J.S.A. 5:12-92(c) and N.J.A.C. 20 19:51-1.13. 21 VICE CHAIR FRULIO: Second. 22 CHAIR KASSEKERT: The motion has been 23 made and seconded. All in favor? 24 (Aye.) 25 CHAIR KASSEKERT: Opposed? 28 Item No. 9 1 (No response.) 2 CHAIR KASSEKERT: The motion carries. 3 (The Commission members vote unanimously 4 in favor of the motion.) 5 CHAIR KASSEKERT: Thank you very much. 6 MS. BABINSKI: Thank you very much. 7 MR. NANCE: Item No. 9, petition of 8 Cummins-Allison Corporation for waiver of 9 qualification requirements of certain 10 shareholders. 11 Miss Nagengast? 12 MS. NAGENGAST: Chair and Commissioners, 13 this morning, Marie Jones is here on behalf of 14 the Petitioner, and Jack Adams on behalf of the 15 Division. 16 CHAIR KASSEKERT: Good morning, Miss 17 Jones. 18 MS. JONES: Good morning, Chair, 19 Commissioners. We are here seeking waiver of a 20 trustee of for Cummins-Allison. It is the 21 trustee of the Paul C. Jones Insurance Trust, 22 Glenview State Bank. 23 Earlier this year, you ruled that the 24 trustee -- trust had to file, and we determined 25 that the trustee also would have to file and are 29 Item No. 9 1 seeking waiver for two reasons; one is the 2 inability to control; and two is the special 3 structure under this trust that requires the 4 investment advisor to control these shares. 5 On the inability of Glenview to control 6 Cummins-Allison, Glenview is the trustee of 7 non-voting shares held by the trust and has no 8 ability to vote or control Cummins-Allison. 9 Glenview has confirmed same in the certification 10 it filed. 11 The second reason that we believe this 12 should be granted is the trust defines these 13 shares as special securities, and that requires 14 that the investment advisor make the decisions 15 with respect to these shares. The investment 16 advisor, John Jones, who has filed for 17 qualification already, he has to make any 18 decisions regarding the purchase, pledge or sale 19 of these securities. He also has to set forth in 20 writing whether or not they can, the trustee can 21 allow for the reorganization or any type of 22 restructuring of these assets. 23 So based on those two reasons, we think 24 waiver is appropriate. 25 CHAIR KASSEKERT: Thank you. 30 Item No. 9 1 Mr. Adams, good morning. 2 MR. ADAMS: Good morning, Chair, 3 Commissioners. You have my letter dated June 4 12th in response to the petition. We believe 5 enough facts are here that a waiver can be 6 granted under the circumstances as outlined by 7 Miss Jones; and if you have any questions, I 8 would be happy to answer them. 9 CHAIR KASSEKERT: Thank you. 10 Any questions for the parties? 11 COMMISSIONER SOMMELING: No questions, 12 Madam Chair. 13 VICE CHAIR FRULIO: Madam Chair, I move 14 to grant the petition of Cummins-Allison 15 Corporation requesting a waiver of qualification 16 for Glenview State Bank by finding that Glenview 17 State Bank lacks the ability to control 18 Cummins-Allison Corporation as permitted by 19 N.J.A.C. 19:51-1.14.(b)(4) subject to the 20 condition that Glenview State Bank comply with 21 the Commission's notice and filing requirements, 22 should it subsequently determine to influence or 23 affect the affairs of Cummins-Allison 24 Corporation. 25 COMMISSIONER FEDORKO: Second. 31 Item No. 10 1 CHAIR KASSEKERT: The motion has been 2 made and seconded. All in favor? 3 (Aye.) 4 CHAIR KASSEKERT: Opposed? 5 (No response.) 6 CHAIR KASSEKERT: The motion carries. 7 (The Commission members vote unanimously 8 in favor of the motion.) 9 CHAIR KASSEKERT: Thank you. 10 MS. JONES: Thank you. 11 MR. NANCE: Item No. 10, petition of 12 Harrah's Operating Company, Inc., Marina 13 Associates, Atlantic City Showboat, Inc., Park 14 Place, Inc. and Boardwalk Regency Corp. 15 requesting permission for Robert Hebeler to 16 perform the duties and exercise the powers of 17 Vice President of Customer Service Assurance 18 (Eastern Division) for HOC pending plenary 19 qualification. 20 Miss Delia? 21 MS. DELIA: Good morning, Chair and 22 Commissioners. A draft resolution has been 23 circulated to the parties. Karen Wosnack is here 24 on behalf of the petitioners, and Ray Marquez is 25 here on behalf of the Division. 32 Item No. 10 1 MS. WOSNACK: Good morning. Karen 2 Wosnack here on behalf of the various Harrah's 3 subsidiaries. I would just ask that you adopt the 4 resolution as drafted. Thank you. 5 MR. MARQUEZ: We have no objection. 6 CHAIR KASSEKERT: Thank you. 7 Any questions? 8 COMMISSIONER SOMMELING: No questions, 9 Madam Chair. 10 COMMISSIONER FEDORKO: Motion to adopt 11 the draft resolution and find Robert Hebeler 12 temporary qualified and authorize him to assume 13 the duties and exercise the powers of Vice 14 President of Customer Service Assurance for HOC's 15 Eastern Division subject to the conditions 16 contained in N.J.A.C. 19:43-2.7, which among 17 other things, require that he file a PHD-MJ and 18 the New Jersey Supplemental by August 31st, 2006. 19 COMMISSIONER SOMMELING: Second. 20 CHAIR KASSEKERT: The motion has been 21 made and seconded. This is a roll call vote. 22 MR. NANCE: Commissioner Sommeling? 23 COMMISSIONER SOMMELING: Yes. 24 MR. NANCE: Commissioner Fedorko? 25 COMMISSIONER FEDORKO: Yes. 33 Item No. 11 1 MR. NANCE: Vice Chair Frulio? 2 VICE CHAIR FRULIO: Yes. 3 MR. NANCE: Chair Kassekert? 4 CHAIR KASSEKERT: Yes. 5 MR. NANCE: The record will reflect that 6 the motion is unanimous. 7 Item No. 11, consideration of the 8 qualification of Mary H. Thomas to serve as 9 Senior Vice President of Human Resources for 10 Harrah's Entertainment, Inc. and Harrah's 11 Operating Company, Inc. 12 Miss Delia? 13 MS. DELIA: Mary Thomas was found 14 temporarily qualified by the commission on 15 December the 14th, 2005. A draft resolution has 16 been circulated to the parties, and the same 17 parties are here. 18 MS. WOSNACK: Good morning, Karen 19 Wosnack. We just urge that you adopt the 20 resolution as drafted. 21 MR. MARQUEZ: We have no objection. 22 CHAIR KASSEKERT: Thank you. 23 Any questions? 24 COMMISSIONER FEDORKO: Motion to adopt 25 the draft resolution and find Mary H. Thomas 34 Item No. 12 1 qualified to serve as Senior Vice President of 2 Human Resources for Harrah's Entertainment, Inc. 3 and Harrah's Operating Company, Inc. 4 VICE CHAIR FRULIO: Second. 5 CHAIR KASSEKERT: The motion has been 6 made and seconded. This is a roll call vote. 7 MR. NANCE: Commissioner Sommeling? 8 COMMISSIONER SOMMELING: Yes. 9 MR. NANCE: Commissioner Fedorko? 10 COMMISSIONER FEDORKO: Yes. 11 MR. NANCE: Vice Chair Frulio? 12 VICE CHAIR FRULIO: Yes. 13 MR. NANCE: Chair Kassekert? 14 CHAIR KASSEKERT: Yes. 15 MR. NANCE: The record will reflect that 16 the motion is unanimous. 17 MS. WOSNACK: Thank you very much. 18 MR. NANCE: Item No. 12, petition of RIH 19 Acquisitions New Jersey, LLC for an amendment to 20 its certificate of operation and casino hotel 21 alcoholic beverage license to permit a temporary 22 expansion of its casino floor. 23 Mr. Mamolen? 24 MR. MAMOLEN: Good morning, Madam Chair 25 and Commissioners. This matter is before you 35 Item No. 12 1 essentially to accommodate a three day poker 2 tournament. As I understand from Mr. Briliant, 3 that the draft resolution has been submitted to 4 the parties for their review, and we haven't 5 heard any objection thereto. 6 CHAIR KASSEKERT: Thank you. 7 Miss Wild? 8 MS. WILD: Yes, good morning again. I 9 just wanted to state on the record a few things 10 about this poker tournament. We opened our poker 11 room at the Hilton in December of 2005. It was a 12 major expansion of that facility. It brought a 13 new excitement to the second floor, and we now 14 have a poker room and an Asian gaming room as 15 well there in areas which had not heretofore been 16 used for gaming space. It's been a successful 17 experience. 18 I have with me, in case you have any 19 questions, our poker room manager Thomas Krause, 20 but I think our petition pretty much states that, 21 the necessity for this. We are a victim of our 22 own success in needing additional space to 23 conduct this very special three day poker 24 tournament along with the sponsors, the Jersey 25 Guys, and the less said about them, the better. 36 Item No. 12 1 CHAIR KASSEKERT: Thank you. I 2 appreciate that, Miss Wild. 3 MS. WILD: This is one of those times 4 where I should probably sit down and shut up, but 5 thank you very much for your consideration. I 6 invite you all down to see how successful it's 7 been, and to also enjoy some of the fun that will 8 be surrounding this. 9 CHAIR KASSEKERT: Unfortunately, we 10 cannot enjoy that function, as you well know. 11 MS. WILD: Thank you very much. 12 CHAIR KASSEKERT: Mr. Ficchi? 13 MR. FICCHI: Good morning, Chair, 14 Commissioners. For the record, Timothy Ficchi, 15 Deputy Attorney General. The Division's reviewed 16 the draft resolution, we have no objection to its 17 adoption. Thank you. 18 CHAIR KASSEKERT: Thank you. 19 Any questions? 20 COMMISSIONER FEDORKO: Does that mean 21 we're going to vote for the Jersey Guys? 22 MS. WILD: Strictly for the Hilton. 23 COMMISSIONER SOMMELING: Madam Chair, 24 move to adopt the draft resolution and approve 25 the petition of RIH Acquisitions NJ, LLC for an 37 Item No. 13 1 amendment to its certificate of operation and 2 casino hotel alcoholic beverage license, to 3 permit the temporary expansion of its casino 4 floor, subject to the conditions in the 5 resolution. 6 VICE CHAIR FRULIO: Second. 7 CHAIR KASSEKERT: The motion has been 8 made and seconded. All in favor? 9 (Aye.) 10 CHAIR KASSEKERT: Opposed? 11 (No response.) 12 CHAIR KASSEKERT: The motion carries. 13 (The Commission members vote unanimously 14 in favor of the motion.) 15 CHAIR KASSEKERT: Thank you. 16 MS. WILD: Thank you very much. 17 MR. NANCE: Item No. 13, petition of WMS 18 Gaming, Inc. for the approval of the "Reel 19 Legends" Multi-Casino Progressive Slot System and 20 its Associated Slot System Agreement pursuant to 21 N.J.S.A. 5:12-82(c) and N.J.A.C. 19:45-1.39A. 22 Mr. Mamolen? 23 MR. MAMOLEN: This matter is before you, 24 as Mr. Nance stated, approval for slot system and 25 associated agreement. Again, as represented by 38 Item No. 13 1 Mr. Briliant, the draft resolution has been 2 distributed in advance to the parties, and he has 3 not received any objection thereto. Marie Jones 4 is counsel for the petitioner. 5 CHAIR KASSEKERT: Thank you. 6 Miss Jones? 7 MS. JONES: Good morning, Chair, 8 Commissioners. Again, we looked at the draft 9 resolution, we're fine with it, and we urge you 10 to adopt it. Thank you. 11 CHAIR KASSEKERT: Thank you. 12 Any questions? 13 COMMISSIONER SOMMELING: No questions, 14 Madam Chair. 15 COMMISSIONER FEDORKO: Motion to adopt 16 the draft resolution and approve the WMS 17 "Reel Legends" slot system and the associated 18 slot system agreement subject to the conditions 19 in the resolution. 20 VICE CHAIR FRULIO: Second. 21 CHAIR KASSEKERT: The motion has been 22 made and seconded. All in favor? 23 (Aye.) 24 CHAIR KASSEKERT: Opposed? 25 (No response.) 39 Item No. 14 1 CHAIR KASSEKERT: The motion carries. 2 (The Commission members vote unanimously 3 in favor of the motion.) 4 CHAIR KASSEKERT: Thank you. 5 MR. NANCE: Item No. 14, proposed 6 temporary adoption of amendments and new rule for 7 Three Card Bonus Wager in let it ride poker, and 8 authorization of rule making experiment for Three 9 Card Bonus Wager pursuant to N.J.S.A.5:12-69e. 10 Mr. Mamolen? 11 MR. MAMOLEN: Another side wager again 12 for your approval for temporary adoption, test 13 authorization. This time it's for let it ride 14 poker. There is, as you know, an existing side 15 wager for that game which also is predicated on 16 the player's first three card, but as opposed to 17 that wager, this is on their own pair or better 18 for any kind of pay, table pay-out. 19 With respect to the other wager, that 20 was for three of a kind or better, and those 21 pay-outs were for fixed amount. 22 Again, this is before you for temporary 23 adoption. 24 CHAIR KASSEKERT: Miss Jones? 25 MS. JONES: Good morning, again. I urge 40 Item No. 14 1 you to adopt the temporary regulations, and I'll 2 be happy to address any questions; and if the 3 Vice Chair has any thoughts on the game, I will 4 be happy to relay it to my clients. Thank you. 5 CHAIR KASSEKERT: Mr. Ficchi? 6 MR. FICCHI: Good morning again, Chair. 7 The Division sent this over for review of the 8 house advantage, and a report will be forthcoming 9 shortly, and you'll be furnished with that copy 10 as soon as it's finished. Thank you. 11 CHAIR KASSEKERT: Thank you. 12 Any questions? 13 COMMISSIONER FRULIO: I'm just going to 14 move that A, preliminarily approve Three Card 15 Bonus Wager for let it ride poker as a new wager 16 compatible with the public interest, pursuant to 17 section 5 of the Act; B, authorize the 18 publication of the notice of temporary adoption 19 which will permit a test of the new wager to 20 begin on or after September 25th, 2006, subject 21 to conditions, and continue for a period of time 22 not to exceed 270 days; C, temporarily adopt the 23 amendments contained in the notice of proposal 24 for the purpose of conducting the test; D, 25 delegate to the Director of the Division of 41 Item No. 15 1 Compliance the authority to establish the terms 2 and conditions of a test of the new wager; and E, 3 condition any test of Three Card Bonus Wager upon 4 the filing with and approval by the Division of 5 Compliance of all necessary test submissions for 6 a section 69e test of the new wager. 7 COMMISSIONER FEDORKO: Second. 8 CHAIR KASSEKERT: The motion has been 9 made and seconded. All in favor? 10 (Aye.) 11 CHAIR KASSEKERT: Opposed? 12 (No response.) 13 CHAIR KASSEKERT: The motion carries. 14 (The Commission members vote unanimously 15 in favor of the motion.) 16 CHAIR KASSEKERT: Thank you. 17 MS. JONES: Thank you. 18 MR. NANCE: Item No. 15, proposed 19 adoption of amendments and new rules for Two Card 20 Joker Poker. 21 Mr. Mamolen? 22 MR. MAMOLEN: This is before you for 23 final adoption of the published regs 24 recommendation. We did not receive any formal 25 comment during the official comment period. 42 Public Participation 1 In the interim, since the temporary 2 adoption, however, we did receive the Division's 3 confirmation of the mathematical analysis of the 4 house advantage. So it's before you for final 5 adoption. Thank you. 6 COMMISSIONER SOMMELING: Move to adopt 7 the amendments and new rules as published with 8 minor substantive changes. 9 COMMISSIONER FEDORKO: Second. 10 CHAIR KASSEKERT: The motion has been 11 made and seconded. All in favor? 12 (Aye.) 13 CHAIR KASSEKERT: Opposed? 14 (No response.) 15 CHAIR KASSEKERT: The motion carries. 16 (The Commission members vote unanimously 17 in favor of the motion.) 18 CHAIR KASSEKERT: Thank you. 19 MR. NANCE: In accordance with Resolution 20 Number 05-12-14-19, the next closed session of 21 the Commission shall be held on Wednesday, 22 September 6th, 2006 at 9:15 in the Commission 23 offices. 24 It is now time for the public 25 participation portion of the meeting. 43 Public Participation 1 CHAIR KASSEKERT: Is there anyone from 2 the public that wishes to be heard? 3 (No response.) 4 CHAIR KASSEKERT: Seeing no one, I will 5 declare this portion of the meeting closed and 6 entertain a motion to adjourn. 7 COMMISSIONER SOMMELING: Motion to 8 adjourn. 9 COMMISSIONER FEDORKO: Second. 10 CHAIR KASSEKERT: The motion has been 11 made and seconded. All in favor? 12 (Aye.) 13 CHAIR KASSEKERT: Opposed? 14 (No response.) 15 CHAIR KASSEKERT: The motion carries. 16 (The Commission members vote unanimously 17 in favor of the motion.) 18 CHAIR KASSEKERT: Thank you. 19 (Whereupon, the proceedings were 20 adjourned at 11:04 a.m.) 21 22 23 24 25 44 1 C E R T I F I C A T E 2 3 4 I, CHRISTINE STANCO, a Certified 5 Shorthand Reporter and Notary Public of the State 6 of New Jersey, do hereby certify that the 7 foregoing is a true and accurate transcript of 8 the stenographic notes as taken by and before me, 9 on the date and place hereinbefore set forth. 10 11 12 13 14 15 16 17 CHRISTINE STANCO, C.S.R. 18 LICENSE NO. XI00789 19 20 21 22 23 24 25