1 1 STATE OF NEW JERSEY 2 CASINO CONTROL COMMISSION 3 - - - - - - - - - - - - - - - - - - - 4 5 PUBLIC MEETING NO. 06-10-18 6 7 - - - - - - - - - - - - - - - - - - - 8 9 Wednesday, October 18, 2006 10 Atlantic City Commission Offices 11 Joseph P. Lordi Public Meeting Room - First Floor 12 Tennessee Avenue and Boardwalk 13 Atlantic City, New Jersey 08401 14 10:33 a.m. to 11:05 a.m. 15 16 17 Certified Shorthand Reporter: Darlene Sillitoe 18 - - - - - - - - - - - - - - - - - - - - - - - - - - - 19 20 CIPOLLONI & ASSOCIATES, INC. 21 CERTIFIED SHORTHAND REPORTERS 22 1125 ATLANTIC AVENUE, SUITE 416 23 ATLANTIC CITY, NEW JERSEY 08401 24 (609) 348-9190 25 www.cipolloni-associates.com 2 1 B E F O R E : 2 CASINO CONTROL COMMISSION: LINDA M. KASSEKERT, CHAIR 3 RALPH G. FRULIO, VICE CHAIR MICHAEL C. EPPS, COMMISSIONER 4 MICHAEL A. FEDORKO, COMMISSIONER WILLIAM T. SOMMELING, COMMISSIONER 5 PRESENT FOR THE CASINO CONTROL COMMISSION: 6 DARYL W. NANCE, ADMINISTRATIVE ANALYST DANIEL J. HENEGHAN, PUBLIC INFORMATION OFFICER 7 OFFICE OF THE GENERAL COUNSEL: 8 DIANNA W. FAUNTLEROY, GENERAL COUNSEL/EXECUTIVE SECRETARY 9 STEVEN M. INGIS, ASSISTANT GENERAL COUNSEL DENIS CORBETT, SENIOR COUNSEL 10 TERESA M. NAGENGAST, SENIOR COUNSEL LON E. MAMOLEN, SENIOR COUNSEL 11 BERNADETTE T. FRIGEN, PROGRAM SUPERVISOR 12 DIVISION OF GAMING ENFORCEMENT: 13 ASSISTANT ATTORNEYS GENERAL ANTHONY ZARRILLO, ASSISTANT ATTORNEY GENERAL 14 DEPUTY ATTORNEYS GENERAL 15 RICK McDONOUGH, DEPUTY ATTORNEY GENERAL DOROTHY TURI, DEPUTY ATTORNEY GENERAL 16 JAMES ARMSTRONG, DEPUTY ATTORNEY GENERAL 17 18 19 20 21 22 23 24 25 3 1 A P P E A R A N C E S : 2 ITEM NO. 4 STEVEN M. INGIS, ASSISTANT GENERAL COUNSEL 3 ANTHONY ZARILLO, ASSITANT ATTORNEY GENERAL COOPER LEVENSON 4 BY: LLOYD D. LEVENSON, ESQ. FOR: Gary DiBartolommeo 5 ITEM NO. 6 6 STEVEN M. INGIS, ASSISTANT GENERAL COUNSEL RICK McDONOUGH, DEPUTY ATTORNEY GENERAL 7 COOPER LEVENSON BY: LLOYD D. LEVENSON, ESQ. 8 FOR: WEATHERBY CONSTRUCTION 9 ITEM NO. 10 STEVEN M. INGIS, ASSISTANT GENERAL COUNSEL 10 RICK McDONOUGH, DEPUTY ATTORNEY GENERAL DENNIS DALEY, ESQ. 11 FOR: POKERTICK, INC. 12 ITEM NO. 12, 13, 14 STEVEN M. INGIS, ASSISTANT GENERAL COUNSEL 13 RICK McDONOUGH, DEPUTY ATTORNEY GENERAL KEN OETTLE, ESQ. 14 LYNN HANDLER,ESQ. FOR: PINNACLE, ENTERTAINMENT, INC. 15 16 17 18 19 20 21 22 23 24 25 4 1 AGENDA PUBLIC MEETING NO. 06-10-18 2 OCTOBER 18, 2006, 10:33 a.m. ITEM PAGE VOTE 3 1 Ratification of the minutes of 8 8 4 October 4, 2006 2 Applications for employee and 5 service industry licenses Exhibit List 1, 11 applications 8 9 6 Application of Gary C. DiBartolomeo 9 9 Exhibit List 2, 5 applications 9 10 7 Gelb Promotions, Inc. 10 10 and Cornell & Company, Inc. 10 10 8 Application of Michael J. Read 11 11 Application of Thomas Wiedmayer 12 12 9 3 Stipulations of settlement and consent Agreements: 10 a) Richard M. Coppola (06-0419-EA) 13 14 b) Tammi L. Evans (05-0198-ER) 13 14 11 c) Howard J. Brown (06-0354-EA) 14 15 d) Nicole S. Green (06-0327-EA) 13 14 12 e) Donold R. Morton (06-0263-EA) 13 14 f) Jeffrey D. Hughes (06-0383-EA) 13 14 13 g) Barbara Mahoney (06-0389-EA) 13 14 4 Stipulation of settlement in application 15 17 14 of Gary C. DiBartolomeo for a casino key employee license and qualification 15 (06-0516-EA) 5 Stipulation of settlement in State v. 18 19 16 Michael J. Giardino (06-0245-VC) 6 Stipulation of settlement in State v. 19 22 17 Weatherby Construction and Renovation Company 7 Consideration of Forfeiture Order in 22 24 18 State v. Marina District Development Company, LLC (d/b/a Borgata Hotel, 19 Casino & Spa; et al (06-0137-VC) 8 Peitition of Jason A. Mantegna for 24 25 20 early reapplication (06-0404-RA) 9 Applications for suspension: 21 a) Robert G. Darr (06-0505-RC) 25 26 b) Ashley R. Eberson (06-0503-RC) 25 26 22 c) James J. Liverani, Jr. (06-0502-RC) 25 26 d) Madge E. McCann (06-0504-RC) 25 26 23 e) Nabil I. Pena (06-0506-RC) 25 26 f) Federick E. Pratt, Jr. (06-0499-RC) 25 26 24 25 5 1 PUBLIC MEETING NO. 06-10-18 2 OCTOBER 18, 2006, 10:33 a.m. ITEM PAGE VOTE 3 10 Petition of Pokertek, Inc., for waiver 26 28 of qualification requirement for Madeline 4 S. Crawford Irrevocable Trust and James T. Crawford, IV Irrevocable Trust (PRN 2020601) 5 11 Petition of Bally Gaming, Inc., to adj waive qualification requirement in 6 connection with casino service industry license renewal application (PRN 3620503) 7 12 Petition of Pinnacle Entertainment, 28 36 Inc., and ACE Gaming, Inc., for approval of 8 transactional waivers (PRN 2850602) 13 Petition of Pinnacle Entertainment, 28 36 9 Inc., and ACE Gaming, Inc., for approval of transactional waivers (PRN 2850602) 10 14 Petition of Pinnacle Entertainment, 28 36 Inc., for rulings relating to its status 11 as a financial source (PRN 2710601) 15 Petition of Scientific Games Racing, adj 12 LLC, for rulings regarding residency of employees at Mt. Laurel Data Center 13 (PRN 2400601) 16 Consideration of the qualification of adj 14 Lance J. Millage to serve as Senior Vice President, Corporate controller 15 of RIH Resorts, LLC 17 Second amended petition of RIH adj 16 Acquisition NJ, LLC, to approve the issuance of certain Promnissory Notes and 17 Warrants, and for other Relief (PRN 2090615) 18 Petition of IGT to terminate the 37 38 18 "Pokermania" Slot System and to transfer its progressive and secondary jackpots 19 to the "Wheel Of Fortune $.01 Video" Slot System (PRN 270601) 20 19 Proposed adoption of amendments to 38 39 NJAC 19:45-1.6 (Complimentary Reporting 21 of Cash and Non-Cast gifts 20 Proposed adoption of amendment to 39 40 22 NJAC 19:46-1.6 (Commingled Value Chip Inventories) 23 21 Proposed temporary adoption of 40 43 Amendments for Dragon Bonus Wager in 24 Baccarat and Minibaccarat; Authorization of rulemaking experiment for Dragon 25 Bonus Wager, pursuant to NJSA 5:12-69e 6 1 E X H I B I T S : 2 ITEM NO. 1 DESCRIPTION ID EVD 3 4 EL-1 Remand for hearings 11 license 8 9 applications 5 EL-2 Grant 5 licenses 9 10 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (Exhibits retained by Commission.) 7 1 (Public Meeting 06-10-18 was commenced at 2 10:33 a.m.) 3 MR. NANCE: I'd like to read an opening 4 statement: 5 This is to advise the general public that in 6 compliance with Chapter 231 of the Public Laws of 7 1975 entitled the "Open Public Meetings Act," the 8 New Jersey Casino Control Commission on October 9 13th, 2005, filed with the Secretary of State at the 10 State House in Trenton an annual meeting schedule. 11 On October 14th, copies were mailed to the Press of 12 Atlantic City, the Newark Star Ledger, and the 13 office of the clerk of Atlantic City. 14 Members of the press will be permitted to 15 take photographs, and we would ask that this be done 16 in a manner which is not disruptive or distracting 17 to the Commission. 18 The use of cellular telephones in the public 19 meeting room while the Commission is in session is 20 prohibited. 21 Any members of the public who wish to 22 address the Commission will be given the opportunity 23 to do so before the Commission adjourns for the day. 24 Please stand for the pledge of allegiance. 25 (The flag salute was recited.) 8 ITEM NO. 1-2 1 CHAIR KASSEKERT: Good morning. 2 MR. NANCE: Good morning. 3 The matters discussed in closed session 4 were: Employee and enterprise license matters. 5 The Commissioners approved the October 4th, 6 2006, closed session minutes. 7 Item No. 1, ratification of the minutes of 8 October 4th, 2006. 9 COMMISSIONER SOMMELING: Move to approve. 10 COMMISSIONER FEDORKO: Second. 11 CHAIR KASSEKERT: The motion has been made 12 and seconded. All in favor? 13 (Ayes.) 14 CHAIR KASSEKERT: Opposed? 15 (No response.) 16 CHAIR KASSEKERT: The motion carries. 17 MR. NANCE: Item No. 2, application for 18 employee and casino service industry licenses. 19 This agenda item will be entered as Exhibit 20 List 1 and 2. Exhibit List 1 consists of 11 21 applications for initial and/or renewal of casino 22 key and casino employee licenses. 23 The Division has objected to licensure. 24 VICE CHAIR FRULIO: Move to remand for 25 hearings. 9 ITEM NO. 2 1 COMMISSIONER FEDORKO: Second. 2 CHAIR KASSEKERT: The motion has been made 3 and seconded. All in favor? 4 (Ayes.) 5 CHAIR KASSEKERT: Opposed? 6 (No response.) 7 CHAIR KASSEKERT: The motion carries. 8 MR. NANCE: For consideration is the 9 application of Gary C. DiBartolomeo for casino key 10 employee licenses and qualification. 11 The Division has recommended that this 12 application be granted. 13 COMMISSIONER FRULIO: Motion to remand for 14 hearing. 15 COMMISSIONER FEDORKO: Second. 16 CHAIR KASSEKERT: The motion has been made 17 and seconded. All those in favor? 18 (Ayes.) 19 CHAIR KASSEKERT: Opposed? 20 (No response.) 21 CHAIR KASSEKERT: The motion carries. 22 Mr. Zarrillo, I'm sorry. Did you want to -- 23 MR. ZARRILLO: No, no, Commissioner. 24 CHAIR KASSEKERT: Very good. Thank you. 25 MR. NANCE: Exhibit List 2 consists of five 10 ITEM NO. 2 1 applications for initial and/or renewal of casino 2 key and casino employee licenses. 3 Staff and Division have recommended that 4 these licenses be granted. 5 VICE CHAIR FRULIO: Motion to grant 6 applications. 7 COMMISSIONER FEDORKO: Second. 8 CHAIR KASSEKERT: The motion has been made 9 and seconded. All in favor? 10 (Ayes.) 11 CHAIR KASSEKERT: Opposed? 12 (No response.) 13 CHAIR KASSEKERT: The motion carries. 14 MR. NANCE: For consideration is the casino 15 service industry license renewal applications 16 pursuant to NJSA 5:12-92(c) for Gelb Promotions, 17 Inc., and Cornell & Company, Inc. 18 Staff and the Division have recommended that 19 these applications be granted. 20 VICE CHAIR FRULIO: Motion to grant 21 applications. 22 COMMISSIONER FEDORKO: Second. 23 CHAIR KASSEKERT: The motion has been made 24 and seconded. All in favor? 25 (Ayes.) 11 ITEM NO. 2 1 CHAIR KASSEKERT: Opposed? 2 (No response.) 3 CHAIR KASSEKERT: The motion carries. 4 MR. NANCE: For consideration is the 5 application for qualification of Michael J. Read. 6 Staff and the Division have recommended that 7 this application be granted. 8 VICE CHAIR FRULIO: Find Michael J. Read has 9 established his plenary qualifications to the 10 standards of a casino key employee, except for 11 residency, as required by NJAC 19:51-1.3, for a term 12 to expire on October 31st, 2009. 13 COMMISSIONER FEDORKO: Second. 14 CHAIR KASSEKERT: Motion made and seconded. 15 This a roll call vote. 16 MR. NANCE: Commissioner Sommeling? 17 COMMISSIONER SOMMELING: Yes. 18 MR. NANCE: Commissioner Epps? 19 COMMISSIONER EPPS: Yes. 20 MR. NANCE: Commissioner Fedorko? 21 COMMISSIONER FEDORKO: Yes. 22 MR. NANCE: Vice Chair Frulio? 23 VICE CHAIR FRULIO: Yes. 24 MR. NANCE: Chair Kassekert? 25 CHAIR KASSEKERT: Yes. 12 ITEM NO. 2 1 MR. NANCE: The record will reflect that the 2 motion is unanimous. 3 For consideration is the application of 4 Thomas Wiedmayer for a casino key employee license 5 and for qualifications of Vice President of Casino 6 Operations for Marina Associates. 7 Staff and the Division have recommended that 8 this application be granted. 9 VICE CHAIR FRULIO: Motion to grant key 10 license and for qualification. 11 COMMISSIONER FEDORKO: Second 12 CHAIR KASSEKERT: Motion has been made and 13 seconded. This a roll call vote. 14 MR. NANCE: Commissioner Sommeling? 15 COMMISSIONER SOMMELING: Yes. 16 MR. NANCE: Commissioner Epps? 17 COMMISSIONER EPPS: Yes. 18 MR. NANCE: Commissioner Fedorko? 19 COMMISSIONER FEDORKO: Yes. 20 MR. NANCE: Vice Chair Frulio? 21 VICE CHAIR FRULIO: Yes. 22 MR. NANCE: Chair Kassekert? 23 CHAIR KASSEKERT: Yes. 24 MR. NANCE: The record will reflect that the 25 motion is unanimous. 13 ITEM NO. 3 1 Item No. 3, stipulation of settlement and 2 consent agreements. When I call your name, please 3 come forward, stand behind this middle table, 4 spreading across the room so that you may be seen: 5 Richard Coppola, Tammi Evans, Nicole Green, 6 Donald Morton, Jeffrey Hughes, Barabra Mahoney, and 7 James Dorsey. 8 CHAIR KASSEKERT: Has everyone whose name 9 has been called come forward at this point? 10 Okay. I'm going to ask that you each state 11 your name for the record, starting with you, sir. 12 MR. MORTON: My name is Doanld Morton. 13 MR. COPPOLA: My name is Richard Coppola. 14 MS. GREEN: My name is Nicole S. Green. 15 CHAIR KASSEKERT: Thank you. 16 In a moment we're going to vote on the 17 stipulations which you've agreed to with the 18 Division of Gaming Enforcement. I'm going to ask at 19 this point if any of you wish to be heard on your 20 matter. You don't have to say anything if you don't 21 want to. 22 Does anyone wish to be heard? Okay. 23 Mr. Armstrong? 24 MR. ARMSTRONG: Good morning, Madame Chair, 25 Commissioners. 14 ITEM NO. 3 1 We ask that all these stipulations of 2 settlement be approved. 3 CHAIR KASSEKERT: Thank you. 4 Any questions? 5 COMMISSIONER SOMMELING: Madame Chair, move 6 that we approve the stipulations. 7 COMMISSIONER FEDORKO: Second. 8 VICE CHAIR EPPS: Second. 9 CHAIR KASSEKERT: The motion has been made 10 and seconded. All in favor? 11 (Ayes.) 12 CHAIR KASSEKERT: Opposed? 13 (No response.) 14 CHAIR KASSEKERT: The motion carries. 15 Thank you very much for coming. Good luck. 16 MR. NANCE: I would now like to call 17 stipulation of settlment for Howard J. Brown. 18 CHAIR KASSEKERT: Mr. Brown? Can you come 19 forward and stand right there. 20 Mr. Armstrong, anything? 21 Mr. Corbett, anything to add on this 22 settlement? 23 MR. CORBETT: Nothing to add, Chair. But 24 the reason it's being called separately is because 25 the stipulation calls for a penalty of $250. 15 ITEM NO. 4 1 CHAIR KASSEKERT: Thank you. 2 Mr. Armstrong? 3 MR. ARMSTRONG: I have nothing to add, 4 Chair. 5 CHAIR KASSEKERT: Thank you. 6 Do you have anything you wish to say, sir? 7 MR. BROWN: No. 8 CHAIR KASSEKERT: Very good. Any questions? 9 COMMISSIONER SOMMELING: Madame Chair, move 10 to approve the stipulations for Howard J. Brown. 11 VICE CHAIR EPPS: Second. 12 CHAIR KASSEKERT: And this would require -- 13 we would impose a civil penalty of $250 and a 20 14 working-day suspension for violation of section 119a 15 of the Act. 16 The motion has been made and seconded. All 17 those in favor? 18 (Ayes.) 19 CHAIR KASSEKERT: Opposed? 20 (No response.) 21 CHAIR KASSEKERT: The motion carries. 22 Thank you for coming. Good luck. 23 MR. BROWN: Thank you. 24 MR. NANCE: Item No. 4, stipulation of 25 settlement and application of Gary DiBartolomeo for 16 ITEM NO. 4 1 a casino key employee license and qualification. 2 Mr. Ingis? 3 MR. INGIS: Good morning, Madame Chair, 4 Commissioners. 5 Mr. Levenson is here on behalf of the 6 Applicant and Mr. Zarrillo is here on behalf of the 7 Division of Gaming Enforcement. 8 CHAIR KASSEKERT: Thank you. 9 Mr. Zarrillo, Mr. Lenenson? 10 MR. ZARRILLO: Good morning, Madame Chair, 11 Commissioners. 12 MR. LEVENSON: Good morning. 13 MR. ZARRILLO: As you know, this is a matter 14 that we have worked a settlement out between 15 counsel, Mr. DiBartolomeo, and myself and the 16 Division, and we ask that you accept the 17 stipulation. 18 The terms of the stipulation, essentially, 19 the continuation of conditions that were imposed -- 20 when Mr. DeBartolomeo was initially granted -- or 21 not initially granted, but eventually granted his 22 license with the one exception. We removed one 23 because he complied with that condition. 24 CHAIR KASSEKERT: Thank you. 25 Mr. Levenson? 17 ITEM NO. 4 1 MR. LEVENSON: Yes. I believe that all that 2 is accurate, and that this will basically end one 3 chapter and begin another chapter in Gary's life. 4 And we look forward, hopefully, to your 5 adopting the stipulation of settlement and granting 6 him his plenary casino employee license. 7 Thank you. 8 CHAIR KASSEKERT: Thank you. Any questions? 9 COMMISSIONER SOMMELING: No questions, 10 Madame Chair. 11 VICE CHAIR EPPS: Madame Chair, I move that 12 we move to approve the stipulation and grant Mr. 13 DiBartolomeo's application for a casino key employee 14 license and qualification as Vice President of 15 Marketing, Regional, for RIH Acquisitions, NJ, LLC, 16 and Resorts International Hotel, Incorporated, 17 subject to the conditions set forth in the 18 stipulation. 19 COMMISSIONER FEDORKO: Second. 20 COMMISSIONER SOMMELING: Second. 21 CHAIR KASSEKERT: The motion has been made 22 and seconded. This is a roll call vote. 23 MR. NANCE: Commissioner Sommeling? 24 COMMISSIONER SOMMELING: Yes. 25 MR. NANCE: Commissioner Epps? 18 ITEM NO. 5 1 COMMISSIONER EPPS: Yes. 2 MR. NANCE: Commissioner Fedorko? 3 COMMISSIONER FEDORKO: Yes. 4 MR. NANCE: Vice Chair Frulio? 5 VICE CHAIR FRULIO: Yes. 6 MR. NANCE: Chair Kassekert? 7 CHAIR KASSEKERT: Yes. 8 MR. NANCE: The record will reflect that the 9 motion is unanimous. 10 CHAIR KASSEKERT: Thank you. 11 Good luck, Mr. DiBartolomeo, 12 MR. DiBARTOLOMEO: Thank you very much. 13 MR. ARMSTRONG: Thank you. 14 MR. NANCE: Item No. 5, stipulation of 15 settlement in State versus Michael J. Giardino. 16 Mr. Corbett? 17 MR. CORBETT: Chair, Commissioners, is 18 Michael Giardino or anyone representing Michael 19 Giardino in the public meeting room today? 20 I don't see them, Chair. 21 The stipulation calls for a $250 penalty for 22 violation of section 100n of the Act. 23 CHAIR KASSEKERT: Thank you. 24 Mr. Armstrong? 25 MR. ARMSTRONG: Chair, the Division has 19 ITEM NO. 6 1 nothing to add. We just ask that you approve the 2 stipulation. 3 CHAIR KASSEKERT: Thank you. 4 Any questions? 5 COMMISSIONER SOMMELING: No questions, 6 Madame Chair. 7 COMMISSIONER FEDORKO: Motion to approve the 8 stipulation and impose a civil penalty of $250 9 against Mr. Giardino for underage gaming violation 10 of section 100n of the Act. 11 VICE CHAIR FRULIO: Second. 12 The motion has been made and seconded. All 13 those in favor? 14 (Ayes.) 15 CHAIR KASSEKERT: Opposed? 16 (No response.) 17 CHAIR KASSEKERT: The motion carries. 18 Thank you. 19 MR. NANCE: Item No. 6, stipulation of 20 settlement in State versus Weatherby Construction 21 and Renovation Company. 22 Mr. Ingis? 23 MR. INGIS: Good morning, again, Madame 24 Chair, Commissioners. 25 Lloyd Levenson is here on behalf of 20 ITEM NO. 6 1 Weatherby, and Rick McDonough for the Division of 2 Gaming Enforcement. 3 And this is a stipulation with a recommended 4 civil penalty in the amount of $17,500. 5 CHAIR KASSEKERT: Thank you. 6 Mr. McDonough? Mr. Levenson? 7 MR. McDONOUGH: Good morning, Chair and 8 Commissioners. 9 This matter before you today, brings to a 10 close our investigation involving a company called 11 Highgate Steel, which I'm sure you all remember. It 12 was quite a lengthy investigation. It resulted in a 13 complaint being filed against a casino which was 14 settled before you a couple of months ago for a 15 civil penalty of $35,000 and also the adoption by 16 the casino of policies that would prevent a 17 recurrence of the problem that brought us all here. 18 Similarly, the stipulation that is in front 19 of you now calls for a civil penalty of $17,500. 20 Again, this company and the adoption by the company 21 of certain procedures that, we hope, will prevent 22 any recurrences of this kind of mistake. 23 We would like you to adopt it. If you have 24 any questions regarding the details here, I'll be 25 happy to answer them. 21 ITEM NO. 6 1 Thank you. 2 CHAIR KASSEKERT: Thank you. 3 Mr. Levenson? 4 MR. LEVENSON: Yeah. Just briefly. Madame 5 Chair, members of the Commission. 6 We believe this is a fair settlement. It is 7 clear from the stipulation of settlement that the 8 owner of the company was unaware of what the 9 employee was doing with regard to making changes on 10 some documents at the direction of a particular 11 employee at Resorts, who also is no longer at 12 Resorts. And steps have been taken at the company 13 to ensure that any such activity will never occur in 14 the future. 15 So in light of that -- in light of that, 16 there is strict liability on the part of the company 17 to ensure that the company holds its lower level 18 employees' actions responsible in the event that the 19 executives of the company know what the -- know 20 exactly what was going on when it was going on. 21 CHIAR KASSEKERT: Thank you. 22 Any questions? 23 COMMISSIONER FEDORKO: Motion to approve 24 stipulation and impose a civil penalty of $17,500 25 against Weatherby Construction and Renovation 22 ITEM NO. 7 1 Company for violation of NJSA 5:12-104b and 123b. 2 VICE CHAIR FRULIO: Second. 3 CHIAR KASSEKERT: The motion has been made 4 and seconded. All those in favor? 5 (Ayes.) 6 CHAIR KASSEKERT: Opposed? 7 (No response.) 8 CHAIR KASSEKERT: The motion carries. 9 Thank you. 10 MR. NANCE: Item No. 7, consideration of 11 forfeiture order of State versus Marina District 12 Development Company, LLC. 13 Miss Frigen? 14 MS. FRIGEN: Is either Mr. Park or Mr. 15 Kinney (phonetic) present or represented? 16 Apparently not. 17 For the Commission's consideration is the 18 Division's complaint seeking forfeiture of $10,000 19 that is presently being retained by the Borgata. It 20 was confiscated from Mr. Park, who had gambled also 21 at the casino while on the Commission's exclusion 22 list. 23 I would note that Mr. Kinney came into the 24 picture because subsequent to money being seized 25 from Mr. Park, he had accompanied Mr. Park playing 23 ITEM NO. 7 1 that night at the casino. And we have sent notice 2 to both of these individuals advising them of their 3 right to request a hearing and request of forfeiture 4 action. We have not heard a reply from either one. 5 The matter is presented before you for 6 consideration. We have on file a letter from the 7 Borgata indicating they are not contesting the 8 forfeiture. 9 CHIAR KASSEKERT: Thank you. 10 Mr. Stebbins? 11 MR. STEBBINS: Thank you, Madame Chair and 12 Commissioners. 13 We really have nothing to add. The Borgata 14 has the 10,000. We leave it to you. 15 CHIAR KASSEKERT: Thank you. 16 Any questions? 17 COMMISSIONER SOMMELING: No questions, 18 Madame Chair. 19 COMMISSIONER EPPS: Madame Chair, I move 20 that we order that the $10,000 in gaming chips 21 confiscated from an excluded individual, Jeopng Bae 22 Park, be forfeited. Marina District Development 23 Company, LLC, is directed to remit said money to the 24 Commission in accordance with NJSA 5:12-71.3. 25 COMMISSIONER SOMMELING: Second. 24 ITEM NO. 8 1 CHIAR KASSEKERT: The motion has been made 2 and seconded. All those in favor? 3 (Ayes.) 4 CHAIR KASSEKERT: Opposed? 5 (No response.) 6 CHAIR KASSEKERT: The motion carries. 7 MR. NANCE: Item No. 8, petition of Jason A. 8 Mantegna for early reapplication. 9 Miss Frigen? 10 MS. FRIGEN: Is Mr. Mantegan present or 11 represented? He is not here. 12 For your consideration is his petition 13 seeking permission to reapply early for permission 14 to reapply early for license registration at the 15 Borgata Hotel for employment and/or to work as a 16 non-credential hotel employee. 17 In a letter dated October 3rd, the Division 18 has submitted no objection. 19 CHAIR KASSEKERT: Thank you. 20 Mr. Armstrong, anything to add? 21 MR. ARMSTRONG: Chair, Commissioners, you 22 have or October 3rd letter with no objections. 23 CHIAR KASSEKERT: Thank you. 24 Any questions? 25 VICE CHAIR FRULIO: Motion to grant Mr. 25 ITEM NO. 9 1 Mantegna permission to reapply early for a casino 2 employee license, a casino service employee 3 registration and/or to work as a non-credential 4 hotel employee. 5 COMMISSIONER FEDORKO: Second. 6 CHIAR KASSEKERT: The motion has been made 7 and seconded. All those in favor? 8 (Ayes.) 9 CHAIR KASSEKERT: Opposed? 10 (No response.) 11 CHAIR KASSEKERT: The motion carries. 12 MR. NANCE: Item No. 9, application for 13 suspension of Robert Darr, Ashley Eberson, James 14 Liverani, Jr., Madge McCann, Nabil Pena, and 15 Fredrick Pratt, Jr. 16 Miss Frigen? 17 MS. FRIGEN: Before we hear from the 18 Division, let me just ask if anyone is here in 19 connection with any of these matters? 20 Apparently not. 21 CHIAR KASSEKERT: Mr. Armstrong? 22 MR. ARMSTRONG: Chair, Commissioners, the 23 Division requests that you suspend credentials for 24 these individuals. 25 CHIAR KASSEKERT: Thank you. 26 ITEM NO. 10 1 Any questions? 2 COMMISSIONER SOMMELING: Motion made to 3 suspend the credentials. 4 COMMISSIONER FEDORKO: Second. 5 CHIAR KASSEKERT: The motion has been made 6 and seconded. All those in favor? 7 (Ayes.) 8 CHAIR KASSEKERT: Opposed? 9 (No response.) 10 CHAIR KASSEKERT: The motion carries. 11 MR. NANCE: Item No. 10, petition of 12 Pokertek, Inc., for waiver of qualification 13 requirement for Madeline S. Crawford, irrevocable 14 trust, and James T. Crawford, IV, irrevocable trust. 15 Miss Nagengast? 16 MS. NAGENGAST: Thank you. Good morning, 17 Chair and Commissioners. 18 Dennis Daley is here on behalf of 19 Petitioners and Rick McDonough on behalf of the 20 Division. 21 CHIAR KASSEKERT: Thank you. 22 Good morning, Mr. Daley. 23 MR. DALEY: Good morning, Chair, 24 Commissioners, nice to see you again. 25 It appears you're on the fast track this 27 ITEM NO. 10 1 morning so I won't delay this for long. 2 This is Pokertek's petition seeking a waiver 3 of qualification requirement for the children of one 4 of the founders of the company. There are 5 significant amounts in the trust. The trustee of 6 that trust is the other founder. And with respect 7 to the waiver of qualification, we ask that you 8 grant the petition and grant waiver of 9 qualification. 10 CHIAR KASSEKERT: Thank you. 11 Mr. McDonough? 12 MR. McDONOUGH: Good morning. 13 We recommend that this petition be granted. 14 Thank you. 15 CHIAR KASSEKERT: Thank you. 16 Any questions? 17 COMMISSIONER SOMMELING: No questions, 18 Madame Chair. 19 COMMISSIONER EPPS: Chair, I move that we 20 grant the petition of Pokertek, Inc., requesting a 21 waiver of qualification for Madeline S. Crawford, 22 Irrevocable Trust, and James T. Crawford, IV, 23 Irrevocable Trust, by finding that both trusts lack 24 the ability to control Pokertek, Inc., as permitted 25 by NJAC 19:51-1.14(b)(4), subject to the condition 28 ITEM NO. 10-14 1 that each comply with the Commission's notice and 2 filing requirements should they subsequently 3 determine to influence or affect the affairs of 4 Pokertek, Inc. 5 COMMISSIONER FEDORKO: Second. 6 CHIAR KASSEKERT: The motion has been made 7 and seconded. All those in favor? 8 (Ayes.) 9 CHAIR KASSEKERT: Opposed? 10 (No response.) 11 CHAIR KASSEKERT: The motion carries. 12 Thanks, everyone. 13 MR. NANCE: Item No. 11 has been adjourned. 14 Item No. 12, 13, and 14 are called together. 15 Petition of Pinnacle Entertainment, Inc., 16 for declaratory ruling, that an application for a 17 casino service industry license pursuant to section 18 92a of the Act is deemed complete. 19 Petition of Pinnacle Entertainment, Inc., 20 and ACE Gaming, Inc., for approval of transactional 21 waivers. 22 And petition of Pinnacle Entertainment, 23 Inc., for rulings related to its status as a 24 financial source. 25 Mr. Ingis? 29 ITEM NO. 12-14 1 MR. INGIS: Good morning, again, Madame 2 Chair, Commissioners. 3 Ken Oettle and Lynn Handler are here on 4 behalf of Pinnacle Entertainment, Inc, and Rick 5 McDonough and Dot Turi are here on behalf of the 6 Division. 7 The three petitions were called together 8 because they relate to the same issue. They pertain 9 to Pinnacle's request for certain rulings pertaining 10 to the purchase of the Sands Hotel and Casino and 11 the proposed closure of the Sands. 12 We note for the record that a special 13 meeting will be held on November 2nd to resolve 14 certain issues that not be addressed today. 15 CHIAR KASSEKERT: Thank you. 16 Good morning. 17 MS. HANDLER: Good morning, Chair, 18 Commissioners. 19 MR. OETTLE: Good morning, Chair, 20 Commissioners. 21 Thank you for hearing the petitions here 22 this morning. 23 They are together, essentially an 24 application by Pinnacle for approval as a casino 25 gaming-related casino service industry licensee and 30 ITEM NO. 12-14 1 to grant application of Pinnacle's application is 2 complete and approval of transactional waivers for 3 the purposes of allowing Pinnacle to possess, store, 4 and transport gaming issues in connection with the 5 closing of the Sands so that Pinnacle can resolve to 6 the Sands personnel in the closing of the Sands. 7 I want to express thanks, first of all, to 8 the staff and to the Division of Gaming Enforcement. 9 They are very diligent and attentive and creative in 10 terms of helping us shape this form of relief, which 11 is novel. We have the -- the industry hadn't seen 12 this situation before with the closing of the casino 13 and its transfer of ownership at the same time. And 14 in order to work our way through the Act and the 15 regulations, staff gave us a lot of guidance, and 16 the result is what you see in the petitions that you 17 see before you today, reflect their work, and we 18 sincerely thank them for all that they did. 19 There's one item that I've been asked to 20 address for the record, that was a glitch in the 21 certifications submitted by Pinnacle in support of 22 its application for waiver of the non-involved 23 officers. The form of application that we use said 24 that the officers would not be involved in the 25 business "of" the casinos or any casino applicants. 31 ITEM NO. 12-14 1 And those certifications should have said not be 2 involved in the business -- in business "with" the 3 casino licensees or applicants. 4 I've checked with Pinnacle. They've 5 confirmed that the intent was to comply with the 6 regulation. It should have said "with." It simply 7 was interpreted as "of." But it means "with." And 8 these officers who have submitted their 9 certifications are saying that they will not be 10 involved in doing business "with" casino licensees 11 or applicants. 12 I've also been asked to indicate on the 13 record the individuals associated with Pinnacle who 14 would serve as contact persons with the Sands. 15 There are four, once transactional waivers are 16 granted for consulting purposes. The four are Kim 17 Townsend, Lynn Handler, Ron Regal, and Sarah Tucker. 18 All of whom have filed their forms and fingerprint 19 cards and, as far as we know, have filed everything 20 that's necessary for purposes of their 21 qualification. And the contact between Pinnacle and 22 the Sands would be limited to these four people, and 23 everything would flow through them. 24 One other item we have submitted as per the 25 regulations in connection with the application for 32 ITEM NO. 12-14 1 waiver of the non-involved officers' financial 2 information regarding the compensation of these 3 officers, and we respectfully ask that the 4 Commission seal that information. 5 If you have any questions, I'd be happy to 6 answer them. 7 CHIAR KASSEKERT: Thank you. 8 Let me ask, before we hear from the 9 Division, if there are any questions for Mr. Oettle 10 in these matters? 11 Okay. Mr. McDonough? Miss Turi? Good 12 morning. 13 MS. TURI: Good morning. 14 I think I'll go first on this one. 15 CHIAR KASSEKERT: Very good. 16 MS. TURI: As you know, the Division filed 17 its letter on October 1st raised by Mr. Oettle. The 18 first one had to do with the fact that they were 19 seeking qualification as a financial source. And 20 based on the documents that have been filed in 21 conjunction with their application for a statement 22 of compliance, the Division has maintained there's 23 no negative information and that they be qualified 24 as a financial source, but as the draft order 25 suggests that that be limited in some respects in 33 ITEM NO. 12-14 1 that they would not draw down on any of the escrow 2 accounts that are currently disabled without getting 3 prior Commission approval. 4 Secondly, this petition also requested that 5 they be deemed a casino service industry gaming 6 related, and the Division had no objection to that. 7 And as Mr. Oettle stated in his subsequent petition, 8 they also seek a final determination that their 9 application for casino service industry licensure be 10 deemed complete, and I will leave that to the 11 Commission to ascertain and determine. 12 I've also had an opportunity to look at the 13 draft order that's been presented this morning. And 14 from the perspective that I have, I have no 15 objection to that order being entered as it is now 16 in draft form. 17 Thank you. 18 CHIAR KASSEKERT: Thank you. 19 Mr. McDonough? 20 MR. McDONOUGH: Good morning. 21 I'm appearing in place of Jack Adams this 22 morning, and I'll speak to the issue of 23 transactional waivers. 24 We recommend that the transactional waiver 25 petition be granted. We have now had the 34 ITEM NO. 12-14 1 opportunity to complete the background checks on all 2 of the persons for whom they are required, including 3 the two most recent filers, and that would be Mr. 4 Buck and Miss Tucker. Those background checks came 5 back with no negative information, and so we feel 6 comfortable recommending to you that the 7 transactional waivers be granted. 8 Thank you. 9 CHIAR KASSEKERT: Thank you. 10 Are there any questions for either of the 11 parties? 12 COMMISSIONER SOMMELING: No questions, 13 Madame Chair. 14 CHIAR KASSEKERT: Okay. Before I entertain 15 a motion, let me just join Mr. Oettle's declaration 16 about the assistance of the staff. I know that the 17 Division and the Commission staff put in very long 18 hours working through this process so I -- on behalf 19 of the Commission, I thank you all for that. 20 I'll entertain a motion now at this point. 21 VICE CHAIR FRULIO: Yeah. I'll make a 22 motion, Madame Chair, to resolve the petitions for 23 Items 12, 13, and 14, and adopt the draft order and 24 find: 25 A, Pinnacle to be a qualified financial 35 ITEM NO. 12-14 1 source of ACE Gaming, LLC; 2 B, Pinnacle's status as a financial source 3 does not allow Sands to draw from the escrow account 4 established by Pinnacle without prior Commission 5 approval; 6 C, deem Pinnacle's casino service industry 7 license application to be complete; 8 D, waive the qualification for the eleven 9 officers identified in the petition; 10 E, grant the transactional waivers and 11 permit Pinnacle to possess, store, and transport 12 gaming equipment and perform the specific consulting 13 services enumerated in the petition during the 14 pendency of Pinnacle's CSI license application; 15 F, delegate to Chair Kassekert or her 16 disignee the authority to approve any request by 17 Pinnalcle to engage in any consulting activity -- 18 excuse me -- not specified in its petition and 19 incorporated in the Commission's order; 20 G, seal the exhibit containing the terms of 21 compensation for certain officers, and; 22 H, Pinnacle's request to be able to, one, 23 collect on countercheckes, two, pay out on certain 24 gaming liabilities such as gaming chips, slot 25 tickets, unclaimed jackpots, and front money 36 ITEM NO. 12-14 1 deposits; and, three, possess and store gaming 2 records of Sands. 3 Remains outstanding will be considered at 4 the Commission's public meeting of November 2, 5 2006. 6 CHIAR KASSEKERT: Is there a second? 7 COMMISSIONER FEDORKO: Second. 8 CHIAR KASSEKERT: Motion was made and 9 seconded. 10 This is a roll call vote. 11 MR. NANCE: Commissioner Sommeling? 12 COMMISSIONER SOMMELING: Yes. 13 MR. NANCE: Commissioner Epps? 14 COMMISSIONER EPPS: Yes. 15 MR. NANCE: Commissioner Fedorko? 16 COMMISSIONER FEDORKO: Yes. 17 MR. NANCE: Vice Chair Frulio? 18 VICE CHAIR FRULIO: Yes. 19 MR. NANCE: Chair Kassekert? 20 CHAIR KASSEKERT: Yes. 21 MR. NANCE: The record will reflect that the 22 motion is unanimous. 23 CHIAR KASSEKERT: Thank you. 24 Welcome Pinnacle to Atlantic City. As you 25 start this process and as you move forward, we look 37 ITEM NO. 15-18 1 forward to a smooth transition between yourselves 2 and Sands as Sands closes down. And welcome to 3 Atlantic City. 4 MS. HANDLER: Thank you. 5 MR. OETTLE: Thank you, Madame Chair. 6 MR. McDONOUGH: Thank you. 7 MR. NANCE: Item No. 15 has been adjourned 8 to the November 8th, 2006, meeting. 9 Item 16 has been adjourned. 10 And Item No. 17 has been adjourned. 11 Item No. 18, petition of IGT to terminate 12 the Pokermania slot system and to transfer its 13 progressive and secondary jackpot on the Wheel of 14 Fortune video slot system. 15 Mr. Mamolen? 16 MR. MAMOLEN: Good morning, Madame Chair, 17 and Commissioners. Pinch-hitting for Mr. Briliant 18 this morning. 19 This is IGT's request for relief to have 20 certain jackpots transferred from one slot system on 21 its termination to another. 22 You have before you staff's recommendation 23 for approval subject to specified conditions which 24 are set forth in a draft resolution which has been 25 approved in both form and content by counsel for IGT 38 ITEM NO. 19 1 and the Division. 2 CHIAR KASSEKERT: Thank you. 3 Any questions? 4 COMMISSIONER SOMMELING: Madame Chair, move 5 to adopt the draft resolution and approve IGT's 6 request to transfer the Pokermania progressive 7 jackpots subject to the conditions in the 8 resolution. 9 COMMISSIONER FEDORKO: Second. 10 CHIAR KASSEKERT: The motion has been made 11 and seconded. All those in favor? 12 (Ayes.) 13 CHAIR KASSEKERT: Opposed? 14 (No response.) 15 CHAIR KASSEKERT: The motion carries. 16 MR. NANCE: Item No. 19, proposed adoption 17 of amendment to NJAC 19:45-1.9b and 1.9c. 18 Mr. Mamolen? 19 MR. MAMOLEN: This matter is before you for 20 final adoption, and if it would be adopted, it would 21 eliminate the filing requirement for both cash and 22 noncash complimentaries worth $10,000 or more within 23 a five-day period. The amendment would not change 24 the licensee's obligation to maintain records of 25 these gifts subject to regulatory inspection. 39 ITEM NO. 20 1 During the comment period, the only comment 2 received was from the Division of Gaming Enforcement 3 which supports the amended adoption. 4 CHIAR KASSEKERT: Thank you. 5 Any questions? 6 COMMISSIONER SOMMELING: No questions, 7 Madame Chair. 8 COMMISSIONER FEDORKO: Motion to adopt as 9 published. 10 VICE CHAIR FRULIO: Second. 11 CHIAR KASSEKERT: The motion has been made 12 and seconded. All those in favor? 13 (Ayes.) 14 CHAIR KASSEKERT: Opposed? 15 (No response.) 16 CHAIR KASSEKERT: The motion carries. 17 MR. NANCE: Item No. 20, proposed adoption 18 of amendment to NJAC 19:46-1.6. 19 Mr. Mamolen? 20 MR. MAMOLEN: Another matter before you for 21 final adoption. This amendment would increase the 22 treatment of comingled chip inventories from casino 23 value chips quarterly to once -- at least once every 24 six months. 25 The only comment received during the comment 40 ITEM NO. 21 1 period was, again, from the Division of Gaming 2 Enforcement which supports adoption. 3 CHIAR KASSEKERT: Thank you. 4 Any questions? 5 COMMISSIONER FEDORKO: Motion -- 6 COMMISSIONER SOMMELING: Move to adopt as 7 published. 8 COMMISSIONER FEDORKO: Second. 9 CHIAR KASSEKERT: The motion has been made 10 and seconded. All those in favor? 11 (Ayes.) 12 CHAIR KASSEKERT: Opposed? 13 (No response.) 14 CHAIR KASSEKERT: The motion carries. 15 MR. NANCE: Item 21, proposed temporary 16 adoption of amendments for dragon bonus wagers in 17 baccarat and minibaccarat, authorization of rule 18 making experiment for "dragon bonus wager." 19 Pursuant to NJSA 5:12-69e. 20 Mr. Mamolen? 21 MR. MAMOLEN: This is a matter that is 22 essentially reintroduced in the Atlantic City 23 market. It was first introduced several years ago 24 as a side wager for baccarat, punto banco, and 25 minibaccarat wherein a player can bet on either a 41 ITEM NO. 21 1 player's hand or the banker's hand in those two 2 games. Two types of winning, dragon bonus bonanza 3 wagers, one for a natural where the pay-out is one 4 to one and that would, of course, encompass a 5 natural that is superior to the nonwagered hand 6 natural. 7 The other type of wining wager would be a 8 hand point count that exceeds a four or more points 9 at the hand -- of the other hands. In that instance 10 there's a risk of pay-out odds all the way up to 30 11 to one. 12 CHIAR KASSEKERT: Thank you. 13 Let me ask if there are any questions. 14 COMMISSIONER SOMMELING: No questions, 15 Madame Chair. 16 VICE CHAIR FRULIO: Yes. Madame Chair. 17 Excuse me. 18 CHIAR KASSEKERT: Sure. Go ahead, 19 Commissioner Frulio. 20 VICE CHAIR FRULIO: If I understand 21 correctly, this was voted on for testing about three 22 years ago? 23 MR. MAMOLEN: Yes. It never came to a test. 24 VICE CHAIR FRULIO: Do you know why? No one 25 is interested? Now they're interested? 42 ITEM NO. 21 1 MR. MAMOLEN: I think the excuse was 2 proffered by the licensee they were undergoing 3 numerous configurations, and it got backburnered. 4 VICE CHAIR FRULIO: For the time? Okay. 5 Thank you. 6 CHIAR KASSEKERT: Any other questions? 7 COMMISSIONER SOMMELING: No questions, 8 Madame Chair. 9 CHIAR KASSEKERT: If not, I'll entertain a 10 motion. 11 COMMISSIONER FEDORKO: Motion to: 12 Preliminarily approve dragon bonus wager for 13 baccarat, punto banco, and minibaccarat as a new 14 wager compatible with the public interest, pursuant 15 to section 5 of the Act; 16 Authorize the publication of the Notice of 17 Temporary Adoption which will permit a test of the 18 new wager to begin on or after November 27, 2006, 19 subject to the conditions and continue for a period 20 of time, not to exceed 270 days; 21 Temporarily adopt the amendments contained 22 in the Notice of Proposal for the purpose of 23 conducting the test; 24 Delegate to the Director of the Division of 25 Compliance the authority to establish the terms and 43 1 conditions of a test of the new wager, and; 2 Condition any test of dragon bonus wager 3 upon the filing with and approval by the Division of 4 Compliance of all necessary test submissions for a 5 section 69e test of the new wager. 6 COMMISSIONER SOMMELING: Second. 7 VICE CHAIR FRULIO: Second. 8 CHIAR KASSEKERT: The motion has been made 9 and seconded. All those in favor? 10 (Ayes.) 11 CHAIR KASSEKERT: Opposed? 12 (No response.) 13 CHAIR KASSEKERT: The motion carries. 14 Thank you. 15 MR. NANCE: In accordance with Resolution 16 No. 05-12-14-19, the next closed session of the 17 Commission shall be held on Wednesday, November 8th, 18 2006, at 9:15 a.m. in the Commission offices. 19 It is now time for the public participation 20 portion of the meeting. 21 CHIAR KASSEKERT: Is there anyone in the 22 public who wishes to be heard? 23 Seeing no one, I'll declare this portion of 24 the public meeting closed and entertain a motion to 25 adjourn. 44 1 COMMISSIONER SOMMELING: Motion to adjourn. 2 VICE CHAIR FRULIO: Second. 3 CHIAR KASSEKERT: The motion has been made 4 and seconded. All those in favor? 5 (Ayes.) 6 CHAIR KASSEKERT: Opposed? 7 (No response.) 8 CHAIR KASSEKERT: The motion carries. 9 Thank you. 10 (Public Meeting 06-10-18 was concluded at 11 11:05 a.m.) 12 13 14 15 16 17 18 19 20 21 22 23 24 25 45 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: October 21, 2006 23 My Commission Expires on July 10, 2009 24 ID No 2062871 25