1 1 STATE OF NEW JERSEY 2 CASINO CONTROL COMMISSION 3 - - - - - - - - - - - - - - - - - - - 4 5 PUBLIC MEETING NO. 06-11-08 6 7 - - - - - - - - - - - - - - - - - - - 8 9 Wednesday, November 8, 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 10:37 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 MARY WOZNIAK, ASSISTANT GENERAL COUNSEL STEVEN M. INGIS, ASSISTANT GENERAL COUNSEL 10 DENIS CORBETT, SENIOR COUNSEL SETH H. BRILIANT, SENIOR COUNSEL 11 LON E. MAMOLEN, SENIOR COUNSEL BERNADETTE T. FRIGEN, PROGRAM SUPERVISOR 12 DIVISION OF GAMING ENFORCEMENT: 13 DEPUTY ATTORNEYS GENERAL JAMES FOGARTY, DEPUTY ATTORNEY GENERAL 14 NORMA STANCIL, DEPUTY ATTORNEY GENERAL R. LANE STEBBINS, DEPUTY ATTORNEY GENERAL 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 ITEM NO. 4 DENIS CORBETT, SENIOR COUNSEL NORMA STANCIL, DEPUTY ATTORNEY GENERAL 3 COOPER LEVENSON BY: LLOYD D. LEVENSON, ESQ. 4 FOR: JONATHAN'S TRANSPORTATION SERVICE 5 ITEM NO. 7 STEVEN M. INGIS, ASSISTANT GENERAL COUNSEL R. LANE STEBBINS, DEPUTY ATTORNEY GENERAL 6 SILLS, CUMMIS BY: KENNETH F. OETTLE, ESQ. 7 FOR: SCIENTIFIC GAMES RACING, LLC 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 4 1 AGENDA PUBLIC MEETING NO. 06-11-08 2 NOVEMBER 8, 2006, 10:37 a.m. ITEM PAGE VOTE 3 1 Ratification of the minutes of 8 8 4 October 18, 2006, and the special hearing of October 23, 2006 5 2 Applications for employee and casino service industry licenses: 9 9 6 Saigon Entertainment 9 10 Jacqueline Sindeleman, Inc. 10 10 7 William F. Callahan 11 12 Signe J. Huff 11 12 8 Patrick J. Ramsey 11 12 Andrew L. Swenson 11 12 9 3 Stipulations of settlement and consent agreements: 10 a) Vincent E. Carlisle (06-0334-ER) 12 14 b) Dennis Chau (04-0343-ER) 12 14 11 c) Marvin L. Ware (06-0199-ER) 12 14 d) Michael S. Hampton (05-0899-RC) 12 14 12 e) Tracey L. Scherer (06-0188-EA) 12 14 f) Tarquin D. Gray (06-0286-ER) 12 14 13 g) Robert Hlinicky (06-0125-ER) 12 14 h) Jason J. Abbruscato (06-0350-RC) 12 14 14 i) Michelle E. Barnes (05-0804-RC) 12 14 j) Diedre Corbin (a/k/a 12 14 15 Dierdre Corbin) (06-0470-EA) 12 14 k) Latanya N. Harris (06-0107-EA) adj. 16 l) Jamie K. Sheppard (06-0366-EA) 12 14 m) Jessica M. McCabe (06-0288-ER) 12 14 17 n) Melania R. Mendoza (06-0431-EA) 12 14 4 Stipulation of settlement in 14 16 18 application of Jonathan's Transportation Service, Inc., (05-0809-SR) 19 5 Petition of Bradley J. Armstrong adj. for early reapplication (06-0441-RA) 20 6 Consideration of final exclusion order 16 17 of Don Van Ho (06-0215-EL) 21 7 Petition of Scientific Games Racing, 17 19 LLC, for rulings regarding residency 22 of employees at Mt. Laurel Data Center (PRN 2400601) 23 8 Petition of Trump Entertainment Resorts, 20 21 Inc., for permission for Eric Hausler 24 to erform the duties and exercise the powers of the Senior Vice President of 25 Development pending plenary qualification (PRN 2550603) 5 1 CONTINUED AGENDA PUBLIC MEETING NO. 06-11-08 2 NOVEMBER 8, 2006, 10:37 a.m. ITEM PAGE VOTE 3 4 9 Petition of RIH Acquisitions, NJ, LLC, 22 23 (d/b/a Atlantic City Hilton (for an 5 amendment to NJAC 19:45-1.34 (PRN 2700604) 10 Petition of RIH Acquisitions, NJ, LLC, 23 24 6 (d/b/a Atlantic City Hilton) for a regulation change to the general provision 7 of NJAC 19:47-20.9 (PRN 2850601); and 8 Proposed publication and temporary adoption of amendments to NJAC 19:47-20.9 9 and 20.10 (Dealer Stack kept in automated shoe until play wagering decision made in 10 three card poker) 11 Petition of Trump Taj Mahal Associates, 24 26 11 LLC, (d/b/a Trump Taj Mahal Casino Resort) for a regulation change to permit the 12 option of collecting vigorish upon a winning wager at the time the wager is won 13 (PRN 2580606; and Proposed publication and temporary 14 adotpion of amendment to NJAC 19:47-1.5 (collection of vigorish in craps after 15 player wins for certain buy and lay bets with true odds) 16 12 Petition of Trump Taj Mahal Associates, 26 27 LLC, (d/b/a/ Trump Taj Mahal Casino Resort) 17 for a regulation change to permit cards which have been opened and placed on a 18 gaming table in the games of blackjack, Spanish 21, and mimibaccarat to be changed 19 at least every seven days pursuant to NJSA 5:12-69(c), NJSA 52:14B-4(f), and NJAC 20 19:46-46-1.18(g) (PRN 2580605) 13 Proposed publication and temporary 28 28 21 adoption of amendment to NJAC 19:47-14.15 (Optional procedure for irregularity in 22 Hold 'Em and Omaha) PUBLIC PARTICIPATION 23 MATTHEW STANTON 30 GEORGE AMIRIANTZ 36 24 25 6 1 E X H I B I T S : 2 ITEM NO. 1 DESCRIPTION EVD 3 4 EL-1 Remand for hearings 25 license 9 applications 5 EL-2 Grant 14 licenses 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 06-11-08 was commenced 2 at 10:37 a.m.) 3 MR. NANCE: I'd like to read an opening 4 statement: 5 This is to advise the general public 6 that in compliance with Chapter 231 of the 7 Public Laws of 1975 entitled the "Open Public 8 Meetings Act," the New Jersey Casino Control 9 Commission on October 13th, 2005, filed with 10 the Secretary of State at the State House in 11 Trenton an annual meeting schedule. On October 12 14th, copies were mailed to subscribers. 13 Members of the press will be permitted 14 to take photographs, and we would ask that this 15 be done in a manner which is not disruptive or 16 distracting to the Commission. 17 The use of cell phones in the public 18 meeting room while the Commission is in session 19 is prohibited. 20 Any members of the public who wish to 21 address the Commission will be given the 22 opportunity to do so before the Commission 23 adjourns for the day. 24 Please stand for the pledge of 25 allegiance. 8 ITEM NO. 1 1 (The flag salute was recited.) 2 CHIAR KASSEKERT: Good morning. 3 MR. NANCE: Good morning. 4 The matters discussed in closed session 5 were: Employee enterprise license matters. 6 The Commissioners approved the October 7 18th, 2006, closed session minutes. 8 Litigation update regarding: State 9 versus David Wirtz; Warren Lackland and Lewis 10 M. Springer, Jr., versus State of New Jersey, 11 and Casino Control Commission; Gloria Ford 12 versus State of New Jersey, Casino Control 13 Commission, et al; Tyron Floyd versus the 14 Casino Control Commission and Sands Hotel 15 Casino; and Husain versus the Casino Control 16 Commission, et al. 17 Item No. 1, ratification of the minutes 18 of October 18th, 2006, and the special minutes 19 of October 23rd, 2006. 20 COMMISSIONER SOMMELING: Move to 21 approve. 22 COMMISSIONER FEDORKO: Second. 23 CHIAR KASSEKERT: The motion has been 24 made and seconded. All those in favor? 25 (Ayes.) 9 ITEM NO. 2 1 CHAIR KASSEKERT: Opposed? 2 (No response.) 3 CHAIR KASSEKERT: The motion carries. 4 MR. NANCE: Item No. 2, application for 5 employee and casino service industry licenses. 6 This agenda item will be entered as 7 Exhibit List 1 and 2. Exhibit List 1 consists 8 of 25 applications for initial and/or renewal 9 of casino key and casino employeee licences. 10 The Division has objected to licensure. 11 VICE CHAIR FRULIO: Motion to remand for 12 hearings. 13 COMMISSIONER FEDORKO: Second. 14 CHIAR KASSEKERT: The motion has been 15 made and seconded. All those in favor? 16 (Ayes.) 17 CHAIR KASSEKERT: Opposed? 18 (No response.) 19 CHAIR KASSEKERT: The motion carries. 20 MR. NANCE: For consideration is the 21 casino service industry license application of 22 Saigon Entertainment, Inc. 23 The Division has objected to this 24 application. 25 VICE CHAIR FRULIO: Motion to remand for 10 ITEM NO. 2 1 hearing. 2 COMMISSIONER FEDORKO: Seconded. 3 CHIAR KASSEKERT: The motion has been 4 made and seconded. All those in favor? 5 (Ayes.) 6 CHAIR KASSEKERT: Opposed? 7 (No response.) 8 CHAIR KASSEKERT: The motion carries. 9 MR. NANCE: For consideration is the 10 junket enterprise license renwal application of 11 Jacqueline Sindeleman, Inc., pursuant to NJSA 12 5:12-102. 13 The Division has recommended that this 14 application be granted. 15 VICE CHAIR FRULIO: Motion to remand for 16 hearing. 17 COMMISSIONER FEDORKO: Second. 18 CHIAR KASSEKERT: The motion has been 19 made and seconded. All those in favor? 20 (Ayes.) 21 CHAIR KASSEKERT: Opposed? 22 (No response.) 23 CHAIR KASSEKERT: The motion carries. 24 MR. NANCE: Exhibit List 2 consists of 25 14 applications for initial and/or renewal of 11 ITEM NO. 2 1 casino key and casino employee licenses. 2 Staff and the Division have recommended 3 that these licenses be granted. 4 VICE CHAIR FRULIO: Motion to grant 5 application. 6 COMMISSIONER FEDORKO: Second. 7 CHIAR KASSEKERT: The motion has been 8 made and seconded. All those in favor? 9 (Ayes.) 10 CHAIR KASSEKERT: Opposed? 11 (No response.) 12 CHAIR KASSEKERT: The motion carries. 13 MR. NANCE: For consideration are the 14 following applications for renewal of casino 15 key employee licenses and for qualification: 16 For William F. Callahan, Vice President of 17 Relationship Marketing for Marina Development 18 Company, LLC; Signe J. Huff, Vice President of 19 Talent for Marina Disctrict Development, 20 Corporation, LLC; Patrick J. Ramsey, Vice 21 President of Slots and Security for Boardwalk 22 Regency Corporation; and Andrew Swenson, Vice 23 President of Casino Marketing for Marina 24 Associates, Atlantic City Showboat, Inc., 25 Bally's Park Place, Inc., and Boardwalk Regency 12 ITEM NO. 3 1 Corpation. 2 Staff and the Division have recommended 3 that these applications be granted. 4 VICE CHAIR FRULIO: Motion to grant key 5 license renewals and for qualification. 6 COMMISSIONER FEDORKO: Second. 7 CHIAR KASSEKERT: Motion is made and 8 seconded. This is a roll call vote. 9 MR. NANCE: Commissioner Sommeling? 10 COMMISSIONER SOMMELING: Yes. 11 MR. NANCE: Commissioner Epps? 12 COMMISSIONER EPPS: Yes. 13 MR. NANCE: Commissioner Fedorko? 14 COMMISSIONER FEDORKO: Yes. 15 MR. NANCE: Vice Chair Frulio? 16 VICE CHAIR FRULIO: Yes. 17 MR. NANCE: Chair Kassekert? 18 CHAIR KASSEKERT: Yes. 19 MR. NANCE: The record will reflect that 20 the motion is unanimous. 21 Item No. 3, stipulation of settlement 22 and consent agreement. 23 When I call your name, please come 24 forward and stand behind this middle table 25 spreading across the room so that you may be 13 ITEM NO. 3 1 seen: 2 Vincent Carlisle, Dennis Chau, Marvin 3 Ware, Michael Hampton, Tracey Scherer, Tarquin 4 Gray, Robert Hlinicky, Jason Abbruscato, 5 Michelle Barnes, Diedre Corbin, Jamie Sheppard, 6 Jessica McCabe, and Melania Mendoza. 7 Mr. Ingis? 8 MR. INGIS: Staff has nothing to add. 9 CHIAR KASSEKERT: Excuse me. I'm going 10 to -- 11 MR. NANCE: Excuse me. And the 12 stipulation of settlement for Latanya N. Harris 13 has been adjourned. 14 CHIAR KASSEKERT: I'm going -- thank 15 you. 16 I'm going to ask that you state your 17 names, starting with you. 18 MR. CHAU: Dennis Chau. 19 MS. BARNES: Michelle Barnes. 20 MR. SHEPPARD: Jamie Sheppard. 21 MR. HLINICKY: Robert Hlinichy. 22 MR. ABBRUSCATO: Jason J. Abbruscato. 23 CHIAR KASSEKERT: Okay. In a moment 24 we're going to vote on the stipulations which 25 you've agreed to with the Division of Gaming 14 ITEM NO. 4 1 Enforcement. I'm going to ask if any of you 2 wish to be heard on your matter. You do not 3 have to be say anything if you do not wish. 4 Does anybody wish to be heard? 5 Miss Stancil? 6 MS. STANCIL: Chair Kassekert, 7 Commissioners, I'd ask that you approve the 8 stipulations. 9 CHIAR KASSEKERT: Thank you. 10 Any questions? 11 COMMISSIONER SOMMELING: Chair, move to 12 approve the stipulations. 13 COMMISSIONER FEDORKO: Second. 14 CHIAR KASSEKERT: The motion has been 15 made and seconded. All those in favor? 16 (Ayes.) 17 CHAIR KASSEKERT: Opposed? 18 (No response.) 19 CHAIR KASSEKERT: The motion carries. 20 CHIAR KASSEKERT: Thank you very much 21 for coming. Good luck. 22 FROM THE FLOOR: Thank you very much. 23 MR. NANCE: Item No. 4, stipulation of 24 settlement in application of Jonathan's 25 Transportation Services, Inc. 15 ITEM NO. 4 1 Mr. Corbett? 2 MR. CORBETT: Madame chair, 3 Commissioners, the stipulations of settlement 4 in this matter calls for the granting of a 5 renewal application for nongaming casino 6 service industry license. 7 Miss Stancil is here for the Division 8 and Mr. Levenson for the Applicant. 9 MR. LEVENSON: I have nothing to add to 10 the stipulation and request that you approve 11 it. 12 CHIAR KASSEKERT: Thank you. 13 Miss Stancil? 14 MS. STANCIL: I have nothing further. 15 CHIAR KASSEKERT: Thank you. 16 Any questions? 17 COMMISSIONER SOMMELING: No questions, 18 Madame Chair. 19 COMMISSIONER FEDORKO: Motion to approve 20 the stipulation and grant the nongaming casino 21 service industry license renewal application of 22 Jonathan's Transportation Service, Inc., 23 pursuant to Section 92c of the Act. 24 VICE CHAIR FRULIO: Second. 25 CHIAR KASSEKERT: The motion has been 16 ITEM NO. 5-6 1 made and seconded. All those in favor? 2 (Ayes.) 3 CHAIR KASSEKERT: Opposed? 4 (No response.) 5 CHAIR KASSEKERT: The motion carries. 6 Thank you. 7 MR. NANCE: Item No. 5, petition of 8 Bradley Armstrong for early reapplication has 9 been adjourned. 10 Item No. 6, consideration of final 11 execution order of Don Van Ho. 12 Miss Frigen? 13 MS. FRIGEN: Sorry. Sorry. Sorry. I 14 didn't hear you. I'm so sorry. 15 Is Mr. Ho present or represented? 16 Apparently not. 17 Following the Commission's issuance of a 18 preliminary exclusionary order, he has failed 19 to request a final hearing on the exclusion 20 petition so this matter is presented to the 21 Commission for the final action today. 22 CHIAR KASSEKERT: Thank you. 23 Mr. Stebbins? 24 MR. STEBBINS: Good morning, Madame 25 Chair, members of the Commission. 17 ITEM NO. 7 1 I really don't have anything to add to 2 what Miss Frigen said. Mr. Ho is preliminary 3 placed. We ask that he is permanently placed 4 on the exclusion list. This is akin to the 5 John Readington type of situation. 6 CHIAR KASSEKERT: Thank you. 7 Any questions? 8 COMMISSIONER SOMMELING: Madame Chair, 9 move to approve to enter the final order 10 directing that Mr. Ho's name remain on the 11 exclusion list until further order of the 12 Commission. 13 COMMISSIONER FEDORKO: Second. 14 CHIAR KASSEKERT: The motion has been 15 made and seconded. All those in favor? 16 (Ayes.) 17 CHAIR KASSEKERT: Opposed? 18 (No response.) 19 CHAIR KASSEKERT: The motion carries. 20 MS. FRIGEN: Thanks. 21 MR. NANCE: Item 7, petition of 22 Scientific Games Racing, LLC, for rules 23 regarding the residency of employees at Mt. 24 Laurel data center. 25 Mr. Ingis? 18 ITEM NO. 7 1 MR. INGIS: Good morning, Madame Chair, 2 Commissioners. 3 Kenneth Oettle is here on behalf of the 4 Petitioners. Lane Stebbins is here on behalf 5 of the Division of Gaming Enforcement. 6 CHIAR KASSEKERT: Thank you. Good 7 morning, Mr. Oettle. 8 MR. OETTLE: Good morning, Madame Chair. 9 With me today is Mary Rosenbauer from 10 Scientific Games, the compliance officer. I'm 11 Ken Oettle from Cummis Sills for Scientific 12 Games. 13 This is a petition seeking a ruling that 14 the licensed employees of the simulicast hub 15 once it moves to Mt. Laurel do not have to 16 reside in New Jersey. This relief will be of 17 tremendous benefit to the company because 18 several of our most important and skilled 19 employees are longtime residents of Delaware or 20 Pennsylvania. 21 You have our arguments in the petition. 22 I have no further remarks. 23 CHIAR KASSEKERT: Thank you. 24 Mr. Stebbins? 25 MR. STEBBINS: Madame Chair, members of 19 ITEM NO. 7 1 the Commission, the circumstances confronting 2 Scientific Games essentially are derived from 3 your regulation which imposes a residency 4 requirement on employees of hub, treating the 5 hub as if it was a casino licensee. You have 6 the discretion to relax that or amend it as you 7 see fit, and we would leave it to your sound 8 discretion to make whatever judgment is 9 appropriate. 10 CHIAR KASSEKERT: Thank you. 11 Let me ask if there are any questions? 12 COMMISSIONER SOMMELING: No questions, 13 Madame Chair. 14 COMMISSIONER EPPS: Madame Chair, I move 15 that we grant the petition of Scientific Games 16 Racing, LLC, and determine that New Jersey 17 residency is not required for hub facility 18 employees. 19 COMMISSIONER SOMMELING: Second. 20 CHIAR KASSEKERT: The motion has been 21 made and seconded. All those in favor? 22 (Ayes.) 23 CHAIR KASSEKERT: Opposed? 24 (No response.) 25 CHAIR KASSEKERT: The motion carries. 20 ITEM NO. 8 1 MR. OETTLE: Thank you, Madame Chair. 2 MR. STEBBINS: Thank you. 3 MR. NANCE: Item No. 8, petition of 4 Trump Entertainment Resort, Inc., for 5 permission for Eric Hausler exercise the power 6 of Senior vice President of the development 7 pending plenary qualification. 8 Miss Wozniak? 9 MS. WOZNIAK: Good morning. I have 10 distributed a draft resolution to the parties. 11 Mr. Fogarty is here on behalf of the Division 12 of Gaming Enforcement, and I don't believe the 13 Petitioners are represented here this morning. 14 CHAIR KASSEKERT: Thank you. 15 Mr. Fogarty? 16 MR. FOGARTY: Thank you. I can handle 17 both. 18 I filed a letter on behalf of the 19 Division dated October 13 not objecting to Mr. 20 Hausler's letter -- Eric Hausler to be granted 21 permission by the office is serve in an 22 officer's position with Trump Entertainment 23 subject to the usual conditions set forth in 24 the regulation. 25 And I've seen the draft resolution. 21 ITEM NO. 8 1 Thank you. 2 CHIAR KASSEKERT: Thank you. 3 Any questions? 4 COMMISSIONER SOMMELING: No questions, 5 Madame Chair. 6 VICE CHAIR FRULIO: Madame Chair, move 7 to adopt the draft resolution and find Eric 8 Hausler temporarily qualified and authorize him 9 to assume the duties and exercise the powers of 10 Senior Vice President of Development for Trump 11 Entertainment Resorts, Inc., subject to the 12 conditions contained in NJAC 19:43-2.7. 13 COMMISSIONER FEDORKO: Second. 14 CHIAR KASSEKERT: Motion this is a 15 motion is made and seconded. This is a roll 16 call. 17 MR. NANCE: Commissioner Sommeling? 18 COMMISSIONER SOMMELING: Yes. 19 MR. NANCE: Commissioner Epps? 20 COMMISSIONER EPPS: Yes. 21 MR. NANCE: Commissioner Fedorko? 22 COMMISSIONER FEDORKO: Yes. 23 MR. NANCE: Vice Chair Frulio? 24 VICE CHAIR FRULIO: Yes. 25 MR. NANCE: Chair Kassekert? 22 ITEM NO. 9 1 CHAIR KASSEKERT: Yes. 2 MR. NANCE: Let the record will reflect 3 that the motion is unanimous. 4 MR. FOGARTY: Thank you. 5 MR. NANCE: Item No. 9, petition of RIH, 6 NJ, Acquisition, LLC, for an amendment to NJAC, 7 45-1.34. 8 Mr. Briliant? 9 MR. BRILIANT: Good morning, Madame 10 Chair and Commissioners. 11 Atlantic City Hilton has filed a 12 rule-making petition for an amendment to 13 commission regulations which would permit slot 14 booth cashiers to exchange cash with patrons 15 for gaming chips using an impressed chip 16 inventory. 17 The Compliance Division is presently 18 reviewing the proposal and discussing it with 19 the Division of Gaming Enforcement. And we 20 are, therefore, recommending the petition be 21 tabled for up to 90 days in order to complete 22 this process. 23 CHIAR KASSEKERT: Thank you. 24 Any questions? 25 COMMISSIONER SOMMELING: No questions, 23 ITEM NO. 10 1 Madame Chair. 2 COMMISSIONER FEDORKO: Motion to table 3 the petition for up to 90 days and authorize 4 publication of a notice of action to that 5 effect. 6 VICE CHAIR FRULIO: Second. 7 CHIAR KASSEKERT: The motion has been 8 made and seconded. All those in favor? 9 (Ayes.) 10 CHAIR KASSEKERT: Opposed? 11 (No response.) 12 CHAIR KASSEKERT: The motion carries. 13 Thank you. 14 MR. BRILIANT: Thank you. 15 MR. NANCE: Item 10, petition of RIH 16 Acquisition, New Jersey, LLC, for regulation 17 change to the general provision of NJAC 18 19:47-20.9 proposed amendment to NJAC 19 19:47-20.9 and 20.10. 20 Mr. Mamolen? 21 MR. MAMOLEN: Good morning, Madame Chair 22 and Commissioners. 23 This matter is before you to essentially 24 incorporate game protection in the game of 25 three-card poker. Effectively it would enable 24 ITEM NO. 11 1 casino licensee and its dealers to keep the 2 stack, the dealer stack of three cards, in the 3 automated shoe until such time as all such 4 players' decisions have been made. 5 Before you for publication and adoption. 6 CHIAR KASSEKERT: Thank you. 7 Any questions? 8 COMMISSIONER SOMMELING: No questions, 9 Madame Chair. 10 COMMISSIONER EPPS: Move to approve for 11 publication and temporary adoption. 12 COMMISSIONER FEDORKO: Second. 13 CHIAR KASSEKERT: The motion has been 14 made and seconded. All those in favor? 15 (Ayes.) 16 CHAIR KASSEKERT: Opposed? 17 (No response.) 18 CHAIR KASSEKERT: The motion carries. 19 MR. NANCE: Item 11, petition of Trump 20 Taj Mahal Associates, LLC, for a regulation 21 change to permit the option of collecting 22 vigorish upon a winning wager at the time of 23 the wager is won, and proposed publication and 24 temporary adoption of amendment to NJSA 25 19:47-1.5. 25 ITEM NO. 11 1 Mr. Mamolen? 2 MR. MAMOLEN: Another matter before you 3 for both temporary adoption and publication. 4 It would enable a casino licensee in the game 5 of craps to offer, when true odds are offered, 6 to allow vigorish collection only if and when a 7 player wins a certain proposition, that's 8 betting on the four, five, six, eight, nine, 9 and ten. 10 CHIAR KASSEKERT: Thank you. 11 Any questions? 12 COMMISSIONER SOMMELING: No questions, 13 Madame Chair. 14 VICE CHAIR FRULIO: Move to approve for 15 publication and temporary adoption. 16 CHIAR KASSEKERT: Commissioner Epps? 17 VICE CHAIR FRULIO: I'm sorry. 18 COMMISSIONER EPPS: Quick question. 19 When the vigorish -- in the current 20 situation when the player vig is up front, if 21 the bet loses, is the vig returned? Or is 22 it -- 23 MR. MAMOLEN: The vig is collected in 24 any event. 25 COMMISSIONER EPPS: Well, but I thought 26 ITEM NO. 12 1 I read that in the current situation if the bet 2 loses, there's no vig. So there's always a 3 vig? Maybe I misread it? Because they don't 4 have to put it upfront, and if it loses, 5 there's no vig collected. 6 MR. MAMOLEN: The vig is collected in 7 any event. 8 COMMISSIONER EPPS: So if it loses, they 9 then collect the vig? 10 MR. MAMOLEN: Right. 11 CHIAR KASSEKERT: You okay? 12 COMMISSIONER EPPS: Yeah. I just wanted 13 to clarify. 14 COMMISSIONER SOMMELING: Second. 15 CHIAR KASSEKERT: Commissioner Frulio 16 made the motion and Commissioner Sommeling 17 seconded. 18 All those in favor? 19 (Ayes.) 20 CHAIR KASSEKERT: Opposed? 21 (No response.) 22 CHAIR KASSEKERT: The motion carries. 23 MR. NANCE: Item No. 12, petition of Taj 24 Mahal Associates, LLC, for a regulation change 25 to permit cards which have been opened and 27 ITEM NO. 12 1 placed on a gaming table in the games of 2 blackjack, Spanish 21, and minibaccarat to 3 change at least every seven days, persuant NJSA 4 5:12-69(c), NJSA 52:14B-4(f), and NJAC 5 19:46-46.18(g). 6 Mr. Mamolen? 7 MR. MAMOLEN: You have staff's memo. It 8 is recommended that this matter be tabled in 9 order to comply with the Office of 10 Administrative Law regulation on agency 11 action. 12 CHIAR KASSEKERT: Thank you. 13 Any questions? 14 OMMISSIONER SOMMELING: Madame Chair, 15 move to table the petition to up to an 16 additional 90 days and authorize publication of 17 notice of action to that effect. 18 CHIAR KASSEKERT: Is there a second? 19 VICE CHAIR FRULIO: Second. Second. 20 CHIAR KASSEKERT: The motion has been 21 made and seconded. All those in favor? 22 (Ayes.) 23 CHAIR KASSEKERT: Opposed? 24 (No response.) 25 CHAIR KASSEKERT: The motion carries. 28 ITEM NO. 13 1 MR. NANCE: Item 13, proposed 2 publication of temporary adoption of amendment 3 to NJAC 19:47-14.15. 4 Mr. Mamolen? 5 MR. MAMOLEN: This is another matter -- 6 gaming matter for you for both publication and 7 temporary adoption, and it would enable a 8 casino licensee to deal with the irregularity 9 of an exposed card that is dealt to an 10 employer. Essentially, it would allow that 11 card to be used as a burn card, and that would 12 preserve the shuffle sequence of cards. 13 CHIAR KASSEKERT: Any questions? 14 COMMISSIONER SOMMELING: No questions, 15 Madame Chair. 16 COMMISSIONER FEDORKO: Motion to approve 17 for publication and temporary adoption. 18 VICE CHAIR FRULIO: Second. 19 CHIAR KASSEKERT: The motion has been 20 made and seconded. All those in favor? 21 (Ayes.) 22 CHAIR KASSEKERT: Opposed? 23 (No response.) 24 CHAIR KASSEKERT: The motion carries. 25 MR. MAMOLEN: Thank you. 29 PUBLIC PARTICIPATION 1 CHIAR KASSEKERT: Thank you. 2 MR. NANCE: In accordance with 3 Resolution No. 05-12-14-19 the next closed 4 session of the Commission shall be held on 5 Wednesday, November 29th, 2006, at 9:15 a.m. in 6 the Commission offices. 7 It is now time for the public 8 participation portion of the meeting. 9 CHIAR KASSEKERT: I'm going to ask -- I 10 understand there are some individuals here from 11 the Jitney Association that would like to 12 speak. I would like to have one spokesperson, 13 please. We're well aware of the issues. We 14 got your letter. 15 MR. STANTON: Sure. 16 CHIAR KASSEKERT: I'd like to keep it to 17 one spokesperson because I think the issues are 18 the same. So if you would come forward, sir, 19 and give us your name on the record. 20 MR. STANTON: Sure. Absolutely. 21 CHIAR KASSEKERT: You can sit right 22 there in the middle. 23 MR. NANCE: In the middle. 24 MR. STANTON: In the middle? 25 CHIAR KASSEKERT: Yeah. 30 PUBLIC PARTICIPATION-MATTHEW STANTON 1 MR. STANTON: My name is Matthew 2 Stanton, S-t-a-n-t-o-n. I'm with the Atlantic 3 City Jitney Association. I'm the spokesperson 4 for the organization. 5 CHIAR KASSEKERT: Good morning. Thank 6 you. 7 MR. STANTON: Madame Chair, members of 8 the Commission, thank you for your time, we 9 appreciate the opportunity. 10 I'm going to make this as short and 11 sweet as possible. I'm sure you have the been 12 reading some stuff in the newspapers as late. 13 On October 16th, Harrah's started the 14 Total Rewards shuttle program, private shuttle, 15 between those four properties. And the bottom 16 line is this is for your Total Rewards 17 customers. This is not for your gold or 18 platinum holders. These are not high-end 19 gamblers. These are, your normal everyday 20 people. And they are our customers that ride 21 the Jitney Association. 22 The bottom line is that this shuttle 23 program run by Harrah's is threatening the 24 economic viability of the Atlantic City Jitney 25 Association since, all you of you know, have 31 PUBLIC PARTICIPATION-MATTHEW STANTON 1 been in operation since 1915. We are the 2 public transportation system in this town. We 3 run people. We move people around this town. 4 Not just visitors. We run the employees. We 5 run approximately 10 million people a year we 6 carry. So and this is -- this is hurting us in 7 a real bad way. 8 The increased market share that was 9 granted to Harrah's, they are using that market 10 share to put 190 small businesses out of 11 business. That's the reality. The businesses 12 that you regulate that were supposed to 13 facilitate the rebirth of Atlantic City are 14 doing exactly the opposite. They are putting 15 Atlantic City tradition out of business. 16 That's what will happen. 17 It cannot be continued. It can be 18 cannot be allowed to continue. And we're here 19 today to ask you for your help. And we need 20 your help, and we need it now. 21 We see this as an intercity junket. 22 This is a system that has been designed to move 23 gamblers from one institution to another, 24 keeping gamblers inside the Harrah's 25 properties. By ordinance, the City of Atlantic 32 PUBLIC PARTICIPATION-MATTHEW STANTON 1 City, we cannot move people door to door. We 2 cannot. That's a prerecquisite from Harrah's. 3 They say they want to move people door to door. 4 We cannot. There were negotiations. We tried 5 to work with them. They made up their mind 6 before they sat at the table with us. They've 7 designed a mousetrap. That mousetrap is 8 keeping gamblers inside the Harrah's 9 businesses. They want to keep every single 10 dollar. And the reality, is they are going to 11 put 190 small business people out of business. 12 And I'm just going to -- just want to 13 underline a couple points here. These are not 14 high rollers. They're not -- these are gold 15 platinum -- these not are the gold, platinum 16 people. They are Total Rewards people. I 17 betcha 60 percent of the people in this room 18 have a Total Rewards card in their pocket right 19 now. And these are our customers that they are 20 holding captive away from the Jitney 21 Association. 22 Why are we here today? One, make you 23 aware of the problem. As I said, you've 24 probably read some of the material. And thank 25 you. 33 PUBLIC PARTICIPATION-MATTHEW STANTON 1 Number two, we would like to begin a 2 dialog with you. Get a little bit more 3 in-depth with you with the what impact has been 4 and ask you to consider this increased market 5 share and what that increased market share -- 6 what the adverse impact that increased market 7 share has had on small businesses. And the 8 reality is just it's just going to get worse. 9 It's a slow, slow bleed. And and what you're 10 going to see is going to happen is as revenue 11 is moved away, and by the way, we're seeing 12 anywhere between 35 and 50 percent reduction in 13 revenue in the first couple weeks of operation 14 just based depending on the Total Rewards 15 program, depending on the time of the day. We 16 operate 365 days a year, seven days a week. 17 They operate limited hours. They are not a 18 24-hour day operation. 19 You may have seen about a week ago the 20 City Council passed a resolution opposing the 21 Harrah's shuttle. They understand that this is 22 not in the best interest of the City of 23 Atlantic City. It's not just a resolution, 24 it's a policy statement. I don't think that 25 you folks are in the position to pass a policy 34 PUBLIC PARTICIPATION-MATTHEW STANTON 1 statement, and I'm not going to ask you to do 2 that. 3 So, you know, that's basically why we're 4 here today. Just to make you aware of the 5 situation and understand that as these 6 corporations get larger, and within the whole 7 issue of the consistency of your legislation, 8 your reason for existence in regulateing these 9 institutions, and the whole idea of bringing 10 casinos to Atlantic City. What's happening now 11 is inconsistent with what -- I would argue 12 would -- be legislative intent or the intent of 13 the entire purpose of bringing casinos to the 14 City of Atlantic City. 15 So I mean we have some -- these are the 16 people that own and operate small businesses. 17 Thee drive these jitney services. And they are 18 190 small business owners in this town. And 19 this is a bad thing for them. 20 Thank you. We'd be happy to any any 21 questions. 22 CHIAR KASSEKERT: Thank you. 23 Let me ask if any of the Commissioners 24 have any questions? Okay. 25 Thank you very much for coming. 35 PUBLIC PARTICIPATION-MATTHEW STANTON 1 MR. STANTON: Thank you. 2 CHIAR KASSEKERT: We appreciate it. 3 You know, we'll take this under 4 advisement and look at it. I am not sure under 5 the confines of our statute if we would have 6 jurisdiction. I think you raise an interesting 7 argument with respect to the market share. But 8 we will be happy to review the matter, and we 9 appreciate you coming today. 10 MR. STANTON: Thank you very much. And 11 I would ask that you take a very close look at 12 the definition of a "junket" in your enabling 13 legislation and think about what an "intercity 14 junket" -- the definition of that term and what 15 that means. 16 CHIAR KASSEKERT: Thank you. 17 MR. STANTON: Thank you. 18 CHIAR KASSEKERT: Thank you. 19 Is there anyone else from the public 20 that wishes to be heard on any other matter? 21 On any other matter? 22 Sir? 23 MR. AMIRIANTZ: Well, it's not any other 24 matter, but I'm not with the Jitney Situation. 25 I would like to speak regarding this matter. 36 PUBLIC PARTICIPATION-GEORGE AMIRIANTZ 1 CHIAR KASSEKERT: Are you going to bring 2 anything new to the table? 3 MR. AMIRIANTZ: I believe so. 4 CHIAR KASSEKERT: Okay. I'll allow it, 5 then. 6 MR. AMIRIANTZ: Thank you. Chairperson 7 Kassekert and Vice Chair Fedorko, I guess, 8 other Commissioners. 9 CHIAR KASSEKERT: Vice Chair Frulio. 10 MR. AMIRIANTZ: Frulio. My name is 11 George Amiriantz. I did provide a copy of a 12 letter I believe that you received. 13 CHIAR KASSEKERT: Yes. We saw it. 14 Thank you. 15 MR. AMIRIANTZ: Thank you very much. I 16 did communicate -- 17 MR. NANCE: Excuse me. Could you 18 please. 19 CHIAR KASSEKERT: State your name for 20 the record. 21 MR. AMIRIANTZ: My name is George 22 Amiriantz. 23 CHIAR KASSEKERT: I think you probably 24 need to spell it as well. 25 MR. AMIRIANTZ: A-m-i-r-i-a-n-t-z. 37 PUBLIC PARTICIPATION-GEORGE AMIRIANTZ 1 I do not have an interest with the 2 jitney situation. I'm totally independent. I 3 have been involved, engaged in transportation 4 for Atlantic City for the last ten years both 5 with limousines and taxicabs. 6 The facet within which I look at this is 7 a total overall transportation issue. As I 8 said, I have no interest with the jitney 9 situation whatsoever. I just have an interest 10 in transportation in Atlantic City's growth and 11 development. 12 In that regard the letter that I 13 provided both to Harrah's with copies to the 14 Association and to the Commission is 15 self-explanatory regarding my interest and the 16 reasons why. And my emphasis that I would like 17 to state goes directly to the preample of the 18 enabling legislation. And in the fifth 19 paragraph at the very bottom -- I'm not going 20 to go through the entire litany of those five 21 paragraphs regarding a unique tool for urban 22 redevelopment. But very, very specifically in 23 the last portion of the fifth section in the 24 very first part, very clearly states that 25 restricting the issuance of casino licenses to 38 PUBLIC PARTICIPATION-GEORGE AMIRIANTZ 1 major hotel convention facilities is designed 2 to ensure that the existing nature and tone of 3 the hospitality in industry in New Jersey and 4 Atlantic City is preserved and the casino rooms 5 licensed pursuant to the provisions of this Act 6 are wholly offered to maintain an integral part 7 -- an integral element of such hospitality 8 facilities rather than an industry unto 9 themselves that they have become in other 10 jurisdictions. 11 What we have is a unique circumstance 12 here in the State of New Jersey. The casinos 13 were designed and engineered by enabling 14 legislative not to become that one individual 15 monopoly controlling all. And that's the 16 circumstance that seems to have come forward 17 for this operation. I don't blame Harrah's to 18 wanting to provide the best Harrah's 19 Entertainment for their customers. So I'm 20 totally for competition. I'm not trying to 21 restrict trade. However, this is a unique 22 circumstance. 23 And there has to be a settlement to this 24 controversy to the benefit of the growth and 25 development of Atlantic City. And when 39 PUBLIC PARTICIPATION-GEORGE AMIRIANTZ 1 Harrah's was -- Harrah's Entertainment, at 2 least in my opinion, was provided that special 3 opportunity regarding the economic 4 concentration with their licensure, they put 5 themselves, again, in another unique 6 circumstance that this Commission authorized 7 their licensure for. 8 And so when you take into consideration 9 those two unique circumstances, the enabling 10 legislation, they're not supposed to be an 11 industry unto themselves, but that they're 12 supposed to be the growth and development for 13 the spin-off businesses. And there's a great 14 question as to whether or not that has been as 15 successful as was the initial intent with the 16 enabling legislation. There have been many 17 rough edges all across this town. This is 18 perhaps of the most obvious and glaring 19 examples. 20 I believe that there is a solution to 21 the problem as long as both parties are willing 22 to work together to come to some kind of 23 solution. And as the gentlemen representing 24 the Jitney Association said, I believe that it 25 should be brought not just as it's being done 40 PUBLIC PARTICIPATION-GEORGE AMIRIANTZ 1 to the attention of the Commission but that the 2 Commission should perhaps try somehow to figure 3 a way not necessarily to be actively involved 4 in the negotiations but since licensure in the 5 State of New Jersey is full closure, 6 negotiations should be full disclosure. 7 Contracts are full disclosure. The Commission 8 is responsible for reviewing every kind of 9 license for special service industries and so 10 on and so forth. So I believe that it's a 11 unique circumstance that involves a major 12 component of the growth and development of 13 Atlantic City, meaning transportation. The 14 history of the Jitney Association, as well as 15 the special exemption that was given to 16 Harrah's. 17 So I feel that the Commission not 18 necessarily should be actively involved in 19 there negotiations, but should do more than 20 just -- I'm not saying that this is what you 21 would do. But in a typical circumstance it 22 should be that -- the Commission should maybe 23 figure out a way to become not necessarily 24 actively involved, but to pay attention more to 25 the issue than you would normally under a 41 1 normal circumstance. 2 CHIAR KASSEKERT: Thank you. 3 Let me ask if there are any questions? 4 COMMISSIONER SOMMELING: No questions, 5 Madame Chair. 6 CHIAR KASSEKERT: Thank you for your 7 comments. I appreciate it. 8 Is there anybody else from the public 9 that wishes to be heard on any other topic? 10 Seeing no one, I'll declare this portion 11 of the meeting concluded, and I'll entertain a 12 motion to adjourn. 13 COMMISSIONER SOMMELING: Motion to 14 adjourn. 15 COMMISSIONER FEDORKO: Second. 16 CHIAR KASSEKERT: The motion has been 17 made and seconded. All those in favor? 18 (Ayes.) 19 CHAIR KASSEKERT: Opposed? 20 (No response.) 21 CHAIR KASSEKERT: The motion carries. 22 Thank you. 23 (The meeting was concluded adjourned at 24 11:02 p.m.) 25 42 1 2 C E R T I F I C A T E 3 4 5 I, DARLENE SILLITOE, a Certified 6 Shorthand Reporter and Notary Public of the 7 State of New Jersey, certify that the foregoing 8 is a true and accurate transcript of the 9 proceedings. 10 11 12 I further certify that I am neither 13 attorney, of counsel for, nor related to or 14 employed by any of the parties to the action; 15 further that I am not a relative or employee of 16 any attorney or counsel employed in this case; 17 nor am I financially interested in the action. 18 19 20 DARLENE SILLITOE CSR 21 License No XI01023 22 23 Dated: November 12, 2006 24 My Commission Expires on July 10, 2009 25 ID No 2062871