1 1 STATE OF NEW JERSEY 2 CASINO CONTROL COMMISSION 3 - - - - - - - - - - - - - - - - - - - 4 5 PUBLIC MEETING NO. 06-12-13 6 7 - - - - - - - - - - - - - - - - - - - 8 9 Wednesday, December 13, 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 11:09 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 A. FEDORKO, COMMISSIONER 4 WILLIAM T. SOMMELING, COMMISSIONER 5 PRESENT FOR THE CASINO CONTROL COMMISSION: DARYL W. NANCE, ADMINISTRATIVE ANALYST 6 DANIEL J. HENEGHAN, PUBLIC INFORMATION OFFICER 7 OFFICE OF THE GENERAL COUNSEL: DIANNA W. FAUNTLEROY, GENERAL COUNSEL/EXECUTIVE 8 SECRETARY LEONARD J. DIGIACOMO, ASSISTANT GENERAL COUNSEL 9 MARY WOZNIAK, ASSISTANT GENERAL COUNSEL STEVEN M. INGIS, ASSISTANT GENERAL COUNSEL 10 E. DENNIS KELL, ASSISTANT GENERAL COUNSEL SETH H. BRILIANT, SENIOR COUNSEL 11 BERNADETTE T. FRIGEN, PROGRAM SUPERVISOR CLAIRE FRANK, PROGRAM SUPERVISOR 12 RICHARD ROSS, PROGRAM SUPERVISOR 13 DIVISION OF GAMING ENFORCEMENT: DEPUTY ATTORNEYS GENERAL 14 JACK ADAMS, DEPUTY ATTORNEY GENERAL CHARLES F. KIMMEL, DEPUTY ATTORNEY GENERAL 15 RAYMOND MARQUEZ, DEPUTY ATTORNEY GENERAL DOROTHY TURI, DEPUTY ATTORNEY GENERAL 16 WENDY WAY, 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 : ITEM NO. 4 2 STEVEN M. INGIS, ASSISTANT GENERAL COUNSEL BRIAN C. BISCIEGLIA, DEPUTY ATTORNEY GENERAL 3 COOPER LEVENSON BY: LLOYD D. LEVENSON, ESQ. 4 FOR: ROBERT SMITH ITEM NO. 10 5 LEONARD J. DiGIACOMO, ASSISTANT GENERAL COUNSEL RAYMOND MARQUEZ, DEPUTY ATTORNEY GENERAL 6 LYNNE KAUFMAN, ESQ. FOR: WIMAR TAHOE CORPORATION 7 ITEM NO. 11 KAREN WOZNIAK, ASSISTANT GENERAL COUNSEL 8 DOROTY TURI, DEPUTY ATTORNEY GENERAL LYNNE HUGHES, ESQ. 9 FOR: HARRAH'S OPERATING COMPANY ITEM NO. 12 10 CLAIRE FRANK, PROGRAM SUPERVISOR DOROTY TURI, DEPUTY ATTORNEY GENERAL 11 LYNNE HUGHES, ESQ. FOR: HARRAH'S OPERATING COMPANYDIV 12 ITEM NO. 13 CLAIRE FRANK, PROGRAM SUPERVISOR 13 RAYMOND MARQUEZ, DEPUTY ATTORNEY GENERAL PATRICIA WILD, ESQ. 14 FOR: RESORTS/HILTON ITEM NO. 14 15 CLAIRE FRANK, PROGRAM SUPERVISOR DOROTHY TURI, DEPUTY ATTORNEY GENERAL 16 LYNNE HUGHES, ESQ. FOR: HARRAH'S 17 ITEM NO. 17 SETH H. BRILIANT, SENIOR COUNSEL 18 LYNNE KAUFMAN, ESQ. FOR: MARINA ASSOCIATES 19 ITEM NO. 18 SETH H. BRILIAN, SENIOR COUNSEL 20 CHARLES F. KIMMEL, DEPUTY ATTORNEY GENERAL FOX ROTHSCHILD 21 WILLIAM DOWNING, ESQ. FOR: WMS GAMING 22 ITEM NO. 19 STEVEN M. INGIS, ASSISTANT GENERAL COUNSEL 23 WENDY WAY, DEPUTY ATTORNEY GENERAL PATRICIA WILD, ESQ. 24 FOR: RIH INTERNATIONAL 25 4 1 AGENDA PUBLIC MEETING NO. 06-12-13 2 DECEMBER 13, 2006, 10:37 a.m. ITEM PAGE VOTE 3 1 Ratification of the minutes of 13 13 November 29, 2006 4 2 Applications for employee and casino service industry licenses 5 8 applications for licensure 13 14 13 licenses granted 14 14 6 Consideration of D'Artagnan, Inc. 15 15 Consideration of Brett C. Kline 15 16 7 3 Petition of Ainsworth Game Technology 16 19 Limited for the temporary qualification 8 of Paul Teng and Erdal Eskin pursuant to NJAC 19:51-14B and for the issuance of a 9 casino service industry license to Ainsworth Game Technology Limited pursuant to NJSA 10 5:12-92(a) (PRN 3180601) 4 Stipulations of settlement and consent agreements: 11 a) Randy P. Brown (06-0615-EA) wdrn b) Kevin M. Conheeney (06-0165-EA) 19 21 12 c) Curtis Gregory (06-0356-EA) 19 21 d) Eric J. Patrick (06-0394-EA) 19 21 13 e) Jacqueline N. Rice (06-0337-ER) 19 21 f) Patricia Rivera (06-0528-EA) wdrn 14 g) Robert F. Smith (06-0046-EA) 19 21 h) Fatimah Z. Archie (05-0541-ER) 19 21 15 i) Joyce E. Clements (06-0250-ER) 19 21 j) Nelson L. DeJesus (06-0251-ER) 19 21 16 k) Ashokbhai C. Kanji (05-0344-ER) 19 21 l) Darlene M. Monk (05-0549-ER) 19 21 17 m) Michael D'Amico (06-0153-RC) 19 21 n) Tina E. Camp (06-0055-ER) 19 21 18 o) Richard L. Conover (06-0177-ER) 19 21 5 Reconsideration of Commission order 22 24 19 granting Lynda D. Wiley renewal of her casino employee license (06-0553-NC) 20 6 Applications for suspension: a) Robert Brown (06-0609-RC) 24 25 21 b) Michael R. Jones (06-0607-RC) 24 25 c) Carolyn M. Williams (06-0608-RC) 24 25 22 7 Consideration of final exclusion in 25 27 State v. John Redington (a/k/a Jerome 23 Casey, James Knowles, John McCormick, William McCormick, John Reddington, 24 Michael Reddington, Michael Reed, John Reilly and John Riley (06-0112-El) 25 5 1 CONTINUED AGENDA PUBLIC MEETING NO. 06-12-13 2 DECEMBER 13, 2006, 10:37 a.m. ITEM PAGE VOTE 3 8 Petition of Vendingdata Corporation for adj waiver from qualification (PRN 1210603) 4 9 Petition of Vendingdata Corporation for adj waiver of qualification for LC Capital 5 Master Fund (PRN 1210603) 10 Amended petition of Wimar Tahoe 27 31 6 Corporation for an extension of time regarding Resolution No. 06-11-02 (PRN 3380601) 7 11 Petition of Harrah's Operating Company, 31 32 Inc., Atlantic City Showboat, Inc., 8 Marina Associates, Bally's Park Place, Inc., and Boardwalk Regency Corp. for 9 waiver of qualification for certain officers of HOC (Vice President Leadership; Vice 10 President Training) (PRN 3330601) 12 Consideration of the qualification of 33 34 11 Grant D. Ashley to serve as Vice President of Corporate Security, Surveillance and 12 Investigations for Harrah's Operating Company, Inc. 13 13 Amended joint petition of Resorts 34 37 International Hotel, Inc., and RIH 14 Acquisitions NJ, L.L.C. for permission for Michael J. Romano to serve as Vice President 15 of Regulatory Compliance pending plenary qualification (PRN 3100609) 16 14 Petition of Harrah's Operating Company, 37 39 Inc., Marina Associates, Atlantic City 17 Showboat, Inc., Bally's Park Place, Inc., and Boardwalk Regency Corporation requesting 18 permission for Heath Daughtrey to perform the duties and exercise the powers of Vice 19 President of IT Services and Integration for Harrah's Operating Company, Inc., pending 20 Plenary qualification (PRN 32600608 15 Proposed publication of readoption of 39 40 21 NJAC 19:49 (Junkets) 16 Proposed publication and temporary 40 41 22 adoption of amendments to NJAC 19:40-1.2, 19:45-1.36, 1.37 and 1.40, and 19:46-1.26 23 (Jackpot-to-Credit Meter Switch) 17 Petition of Progressive Games and Marina 41 43 24 Associates (d/b/a Harrah's Casino Hotel Atlantic City) for approval of a multi-casino 25 6 1 CONTINUED AGENDA PUBLIC MEETING NO. 06-12-13 2 DECEMBER 13, 2006, 10:37 a.m. ITEM PAGE VOTE 3 system agreement and trust agreement pursuant to NJAC 19:45-1.39A and 1.40B (PRN 3040607) 4 18 Petition of WMS Gaming, Inc., for approval 44 46 of the "Powerball" annuity jackpot multi- 5 casino progressive slot system and its slot progressive table game system (PRN 2070602); 6 proposed temporary adoption of amendments to NJAC 19:45-1.8, 1.11, and 1.39B and 7 new rule NJAC 19:45-1.39C 19 Joint petition of RIH Acquisition, LLC, NJ 46 51 8 and Resorts International Hotel, Inc., for approval of a Second Amended and Restate 9 Joint Services Agreement (PRN 0600601) 20 Proposed adoption of Resolution concerning 51 52 10 closed sessions for Public Meetings scheduled for the year 2007 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 ITEM NO. 2 DESCRIPTION EVD 3 4 EL-1 Remand for hearings 8 license X applications 5 EL-2 Grant 13 licenses X 6 7 8 9 10 11 12 13 14 15 16 17 18 19 (Exhibits retained by Commission.) 20 21 22 23 24 25 8 1 (Public Meeting 06-12-13 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 the Press of 13 Atlantic City, the Newark Star Ledger, and the 14 office of the clerk of Atlantic City. 15 Members of the press will be permitted 16 to take photographs, and we would ask that this 17 be done in a manner which is not disruptive or 18 distracting to the Commission. 19 The use of cellular telephones in the 20 public meeting room while the Commission is in 21 session is prohibited. 22 Any members of the public who wish to 23 address the Commission will be given the 24 opportunity to do so before the Commission 25 adjourns for the day. 9 1 Please stand for the pledge of 2 allegiance. 3 (The flag salute was recited.) 4 CHAIR KASSEKERT: Good morning. 5 Let me just start with a point of 6 personal privilege. We have two long-term 7 employees who will be leaving us very shortly 8 for the great -- great land of retirement. So 9 I wanted to take a moment to recognize both of 10 them. 11 The first is Rich Franz, who I've been 12 told started here at the Commission as 13 assistant counsel of licensing on December 2nd, 14 1980, so we're almost, you know, at another 15 milestone right here. And I might want to 16 remind everybody that I had just graduated from 17 college. And he went on to be the Deputy 18 Director of Licensing and finally, in 1992 the 19 Director of the Division of Compliance. And 20 before I came down here, you know, you talk to 21 a lot of people before you get appointed to 22 something. And I got all these warnings about 23 this guy, Rich Franz, who was supposed to be 24 such a terror and, you know, really tough on 25 the industry. And I just want to say from my 10 1 time working with him, he has been anything 2 but. And he has worked very hard to uphold the 3 integrity of the Casino Control Act, worked 4 very hard in a very difficult position with 5 inspectors reporting to him, people in the 6 compliance unit dealing with internal controls, 7 which I know makes many in the industry very 8 unhappy. But guess what? This is New Jersey, 9 and that's the way it is. 10 But I just want to take a moment to 11 recognize Rich, to wish him every great success 12 in his retirement for a long and healthy time 13 to come. So if you'll all join me in a round 14 of applause. 15 (Applause and standing ovation.) 16 CHAIR KASSEKERT: I knew you'd hate 17 this. 18 So let me also recognize John Kovac who 19 was probably the very first person, next to 20 Dennis Daley and Mike Fedorko, that I met 21 before I came down here. Because the day of my 22 first Commission meeting, the Friday before, he 23 came and brought me this the huge heavy book 24 that I had to read over the weekend, and I 25 thought, what am I getting myself into? But 11 1 John has been with the Commission over 25 2 years. He started out as an hourly employee, 3 and he worked both here in Trenton and Atlantic 4 City. He has probably got the longest commute 5 of anyone. 6 The day that the Commission announced 7 they were going to move down here from 8 Lawrenceville, John, that was the day you 9 closed on your house? 10 MR. KOVAC: Pretty much. 11 CHAIR KASSEKERT: Pretty much. 12 MR. KOVAC: Perfect timing. 13 CHAIR KASSEKERT: So he's been commuting 14 from Hamilton ever since. 15 COMMISSIONER FEDORKO: I think he has 16 the second longest commute. 17 CHAIR KASSEKERT: Well, actually, you 18 have a house down here, Commissioner Fedorko. 19 You've never invited John to take over with 20 you, did you? That's nice. 21 (Laughter.) 22 COMMISSIONER FEDORKO: He never asked 23 me. 24 CHAIR KASSEKERT: But, you know, he 25 has -- he's held a number of positions within 12 ITEM NO. 1 1 the division, administration, beginning with 2 the job and licensing filing room where he 3 processed employee licensing files and 4 corporate documents. And I've been told at 5 that time there was no air conditioning, so he 6 made his own air conditioner, I guess, just to 7 try to feel cooler. His last position here has 8 been Manager of Administrative Operations and 9 has -- that position has really grown. When 10 you think of what happened with 9-11 and our 11 need to develop business continuity plans. 12 And, you know, he does all that and yet he 13 fixes the toilets when they overflow. 14 So, John, you will be greatly missed as 15 well. I know I personally will miss you 16 because I know you always look out for me. 17 And we really appreciate your years of 18 service and we, again, wish you every good 19 success and every good luck in your retirement. 20 And I'm doing him later. 21 Congratulations. 22 (Applause and standing ovation.) 23 CHAIR KASSEKERT: Now we'll move on to 24 the agenda. 25 MR. NANCE: The matters discussed in 13 ITEM NO. 1-2 1 closed session were: Employee and enterprise 2 license matters. 3 The Commissioners approved the November 4 29th, 2006, closed session minutes. 5 Litigation updates regarding: Warren 6 Lackland and Lewis M. Springer, Jr., versus the 7 New Jersey Casino Control Commission; Gloria 8 Ford versus State of New Jersey, Casino Control 9 Commission, et al; Tyron Floyd versus Casino 10 Control Commission and Sands Hotel Casino; and 11 Husain versus Casino Control Commission, et al. 12 Item No. 1, ratification of the minutes 13 of November 29th, 2006. 14 COMMISSIONER SOMMELING: Move to 15 approve. 16 COMMISSIONER FEDORKO: Second 17 CHAIR KASSEKERT: The motion has been 18 made and seconded. All in favor? 19 (Ayes.) 20 CHAIR KASSEKERT: Opposed? 21 (No response.) 22 CHAIR KASSEKERT: The motion carries. 23 MR. NANCE: Item No. 2, application for 24 employee and casino service industry licenses. 25 This agenda item will be entered as 14 ITEM NO. 2 1 Exhibit List 1 and 2. Exhibit List 1 consists 2 of eight applications for initial and/or 3 renewal of casino key and casino key employee 4 licenses. 5 The Division has objected to these 6 licenses. 7 VICE CHAIR FRULIO: Motion to remand for 8 hearing. 9 COMMISSIONER FEDORKO: Second. 10 CHAIR KASSEKERT: The motion has been 11 made and seconded. All in favor? 12 (Ayes.) 13 CHAIR KASSEKERT: Opposed? 14 (No response.) 15 CHAIR KASSEKERT: The motion carries. 16 MR. NANCE: Exhibit List 2 consists of 17 13 applications for initial and/or renewal of 18 casino key and casino employee licenses. 19 Staff and the Division have recommended 20 that these licenses be granted. 21 VICE CHAIR FRULIO: Motion to grant 22 application. 23 COMMISSIONER FEDORKO: Seconded. 24 CHAIR KASSEKERT: The motion has been 25 made and seconded. All in favor? 15 ITEM NO. 2 1 (Ayes.) 2 CHAIR KASSEKERT: Opposed? 3 (No response.) 4 CHAIR KASSEKERT: The motion carries. 5 MR. NANCE: For consideration is the 6 casino service industry license renewal 7 application pursuant to NJSA 5:12-92c for 8 D'Artagnan. 9 Staff and Division have recommended that 10 this application be granted. 11 VICE CHAIR FRULIO: Motion to grant 12 application. 13 COMMISSIONER FEDORKO: Second. 14 CHAIR KASSEKERT: The motion has been 15 made and seconded. All 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 application of Brett C. Kline for a casino key 22 employee license and for qualification as 23 Assistant General Manager for Atlantic City 24 Showboat, Inc. 25 Staff and the Division have recommended 16 ITEM NO. 3 1 that this application be granted. 2 VICE CHAIR FRULIO: Motion to grant 3 initial key license and for qualification. 4 COMMISSIONER FEDORKO: Second. 5 CHAIR KASSEKERT: Motion is made and 6 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 Item No. 3, Petition No. 3180601, of 18 Ainsworth Gaming Technology is requesting the 19 issuance of a temporary and casino key and 20 employee license to Paul Teng and Erdal Eskin, 21 pursuant to NJAC 19:51-1.14B and for the 22 issuance of a casino service industry license 23 to Ainsworth Game Technology, Limited, pursuant 24 to NJSA 5:12-92(a). 25 Mr. Ross? 17 ITEM NO. 3 1 MR. ROSS: Good morning, Chair 2 Kassekert, Commissioners. 3 Ainsworth Game Technology, Limited, has 4 requested the temporary qualification of two 5 individuals and the issuance of a gaming- 6 related casino service industry license. 7 Representing the Petitioner today is 8 Lloyd Levenson, and representing the Division 9 is Jack Adams. 10 CHAIR KASSEKERT: Thank you. 11 Mr. Levenson? 12 MR. LEVENSON: Yeah. This is a very 13 straightforward petition. The Division has 14 completed its investigation of Ainsworth Gaming 15 Technology and recommended that the company 16 receive a gaming-related casino service 17 industry license. 18 Mr. Teng and Mr. Eskin have completed 19 their applications in accordance with the 20 regulation, and we are, therefore, asking for 21 their temporary qualification and to enable the 22 company to get licensed. 23 They do not serve in any position that 24 would require the Division to report on them 25 prior to the Commission giving a license to 18 ITEM NO. 3 1 Ainsworth. 2 So we'd ask you to grant the petition 3 and also to issue the casino service industry 4 license for Ainsworth Gaming Technology. 5 CHAIR KASSEKERT: Thank you. 6 Good morning, Mr. Adams. 7 MR. ADAMS: Good morning, Chair, 8 Commissioners. 9 You have our response on the temporary 10 qualification petition, and we don't oppose it. 11 And we also don't oppose the license for the 12 Ainsworth Technology. 13 CHAIR KASSEKERT: Thank you. 14 Any questions for the parties? 15 COMMISSIONER SOMMELING: No questions, 16 Madame Chair. 17 VICE CHAIR FRULIO: Ma'am Chair, move to 18 approve the petition of find the following 19 individuals temporarily qualified to exercise 20 the powers and assume the duties: Paul Teng as 21 Compliance Manager, and Erdal Eskin as General 22 Manager of Engineering for a period of 18 23 months pursuant no NJAC 19:51-1.14B; and grant 24 the gaming and related casino service industry 25 license application of Ainsworth Games 19 ITEM NO. 4 1 Technology, Limited, pursuant to NJAC 2 5:12-92(a). 3 CHAIR KASSEKERT: Is there a second? 4 COMMISSIONER SOMMELING: Second. 5 COMMISSIONER FEDORKO: Second. 6 CHAIR KASSEKERT: The motion is made and 7 seconded. This a roll call vote. 8 MR. NANCE: Commissioner Sommeling? 9 COMMISSIONER SOMMELING: Yes. 10 MR. NANCE: Commissioner Fedorko? 11 COMMISSIONER FEDORKO: Yes. 12 MR. NANCE: Vice Chair Frulio? 13 VICE CHAIR FRULIO: Yes. 14 MR. NANCE: Chair Kassekert? 15 CHAIR KASSEKERT: Yes. 16 MR. NANCE: The record will reflect that 17 the motion is unanimous. 18 MR. LEVENSON: Thank you. 19 MR. NANCE: Item No. 4, stipulation of 20 settlement and consent agreement. 21 When I call your name, please come 22 forward, standing behind this middle table, 23 spreading across the room so that you may be 24 seen: Kevin Conheeney, Curtis Gregory, Eric 25 Patrick, Jacqueline Rice, Robert Smith, Fatimah 20 ITEM NO. 4 1 Archie, Joyce Clements, Nelson DeJesus, 2 Ashokbhai Kanji, Darlene Monk, Michael D'Amico, 3 Tina Campo, and Richard Conover. 4 The stipulation of settlement for Randy 5 P. Brown and Patricia Rivera have been 6 administratively removed from consideration. 7 CHAIR KASSEKERT: Thank you. 8 Has everybody whose name been called 9 come forward at this time? 10 I'm going to ask that you each state 11 your name for the record, starting with you, 12 ma'am. 13 MS. CLEMENTS: Joyce E. Clements. 14 MS. CAMPO: Tina Campo. 15 MR. CONOVER: Richard L. Conover. 16 CHAIR KASSEKERT: Thank you. 17 In a moment -- 18 MR. LEVENSON: Madame Chair, I'm here 19 for Robert Smith. 20 CHAIR KASSEKERT: Thank you, Mr. 21 Levenson. 22 MR. LEVENSON: He's out of state and 23 asked me to be here. 24 CHAIR KASSEKERT: Very good. 25 In a moment we're going to vote on the 21 ITEM NO. 4 1 stipulations that you agreed to with the 2 Division of Gaming Enforcement. 3 At this time I'm going to ask if any of 4 you wish to be heard on your matters. You 5 don't have to say anything if you don't want 6 to. Does anyone wish to be heard? 7 Mr. Levenson? 8 MR. LEVENSON: No, ma'am. 9 CHAIR KASSEKERT: Very good. 10 Mr. Biscieglia? 11 MR. BISCIEGLIA: Thank you. Good 12 morning, Chair and Commissioners. 13 The Division has nothing further, and 14 ask that the stipulations be approved as 15 submitted. 16 CHAIR KASSEKERT: Thank you. 17 Any questions? 18 COMMISSIONER FEDORKO: Motion to approve 19 the stipulations. 20 VICE CHAIR FRULIO: Second. 21 CHAIR KASSEKERT: The motion has been 22 made and seconded. All in favor? 23 (Ayes.) 24 CHAIR KASSEKERT: Opposed? 25 (No response.) 22 ITEM NO. 5 1 CHAIR KASSEKERT: The motion carries. 2 Thank you very much for coming. Good 3 luck. 4 MS. CAMPO: Thank you. 5 MR. NANCE: Item No. 5, reconsideration 6 of Commission order granting Lynda D. Wiley 7 renewal of her casino employee license. 8 Miss Frigen? 9 MS. FRIGEN: Let me ask whether Miss 10 Wiley is present or represented here today? 11 Apparently, she is not here. 12 Commissioners, in February of 2005 you 13 had granted Miss Wiley's license renewal 14 application with conditions regarding her 15 reporting to the Division certain financial 16 information. She subsequently failed to comply 17 with that condition, and we had at the request 18 of the Division scheduled her to come in for a 19 conference. 20 She subsequently contacted the 21 Commission staff and advised that she didn't 22 wish to pursue the conference because she was 23 not interested in her licensure anymore. 24 Subsequently, this matter is before you for 25 reconsideration. 23 ITEM NO. 5 1 CHAIR KASSEKERT: Thank you. 2 Any -- 3 Mr. Biscieglia, I'm sorry. 4 MR. BISCIEGLIA: Thank you. 5 As Miss Frigen stated, the parties had 6 previously entered into a stipulation of 7 settlement requiring the -- the licensee to 8 provide the Division with certain documentation 9 to retain her licensure. We were never 10 submitted the documentation. 11 After asking the Commission to schedule 12 a conference to be able to talk about this 13 matter with the licensee, the Division was 14 contacted on October 18th, 2006, by the 15 licensee and informed by her that she was no 16 longer interested in maintaining the license 17 and would not be providing any documentation. 18 Based upon that and the fact that Miss 19 Wiley is not here today, and we can only assume 20 that it is at her continued stance on this 21 matter. And the Division respectfully ask that 22 the Casino Control Commission vacate the prior 23 order and deny the renewal license. 24 CHAIR KASSEKERT: Thank you. 25 Any questions? 24 ITEM NO. 6 1 COMMISSIONER SOMMELING: No questions, 2 Madame Chair. 3 Madame Chair, based upon Ms. Wiley's 4 noncompliance with a licensing condition, 5 vacate the existing order dated February 2nd, 6 2005, and deny her license renewal application 7 based upon her failure to affirmatively 8 establish her qualifications. 9 COMMISSIONER FEDORKO: Second. 10 CHAIR KASSEKERT: The motion has been 11 made and seconded. All in favor? 12 (Ayes.) 13 CHAIR KASSEKERT: Opposed? 14 (No response.) 15 CHAIR KASSEKERT: The motion carries. 16 MR. NANCE: Item No. 6, applications for 17 suspension for Robert Brown, Michael Jones, and 18 Carolyn Williams. 19 Miss Frigen? 20 MS. FRIGEN: Before we hear from the 21 Division, let me just inquire whether any of 22 these individuals are present or represented 23 here today? 24 Apparently not. 25 CHAIR KASSEKERT: Mr. Biscieglia? 25 ITEM NO. 7 1 MR. BISCIEGLIA: The Division would only 2 add that with regards to A and C, Robert Brown 3 and Carolyn M. Williams, both of those criminal 4 cases are currently pending in grand jury. 5 In regards to letter B, Michael Jones, 6 that case has been adjudicated fully as set 7 forth in the Division's complaint. 8 Thank you. 9 CHAIR KASSEKERT: Thank you. 10 Any questions. 11 COMMISSIONER SOMMELING: No questions, 12 Madame Chair. 13 COMMISSIONER FEDORKO: Motion to suspend 14 credentials. 15 VICE CHAIR FRULIO: Second. 16 COMMISSIONER SOMMELING: Second. 17 CHAIR KASSEKERT: The motion has been 18 made and seconded. All in favor? 19 (Ayes.) 20 CHAIR KASSEKERT: Opposed? 21 (No response.) 22 CHAIR KASSEKERT: The motion carries. 23 Thank you. 24 MR. NANCE: Item No. 7, consideration of 25 final exclusion in State versus John Michael 26 ITEM NO. 7 1 Redington. 2 Miss Frigen? 3 MS. FRIGEN: I don't believe so, but 4 again, let me ask for the record is Mr. 5 Redington is present or represented here today? 6 I believe he is not. 7 The Commission previously entered a 8 preliminary exclusionary order in August of 9 2006. Following that, Mr. Redington was 10 afforded a hearing opportunity with respect to 11 the Division's petition for his final 12 exclusion, and we have not received a response. 13 CHAIR KASSEKERT: Thank you. 14 Mr. Stebbins? 15 MR. STEBBINS: Thank you, Chair 16 Kassekert, members of the Commission. Good 17 morning. 18 The petition before you today for final 19 action certainly sets forth a substantial -- 20 more than ample basis for the entry of final 21 order of exclusion, and I would ask that you 22 enter such an order. 23 Thank you. 24 CHAIR KASSEKERT: Thank you. Any 25 questions? 27 ITEM NO. 10 1 COMMISSIONER SOMMELING: No questions, 2 Madame Chair. 3 VICE CHAIR FRULIO: Madame Chair, move 4 to enter a final order directing that Mr. 5 Redington's name remain on the exclusion list 6 until further order of the Commission. 7 COMMISSIONER SOMMELING: Second. 8 COMMISSIONER FEDORKO: Second. 9 CHAIR KASSEKERT: Thank you. 10 The motion has been made and seconded. 11 All in favor? 12 (Ayes.) 13 CHAIR KASSEKERT: Opposed? 14 (No response.) 15 CHAIR KASSEKERT: The motion carries. 16 Thank you. 17 MR. STEBBINS: Thank you. 18 MR. NANCE: Items 8 and 9 has been 19 adjourned. 20 Item No. 10, amended petition of Wimar 21 Tahoe Corporation for extension of time 22 regarding Resolution No. 06-11-02-02. 23 Mr. DiGiacomo? 24 MR. DiGIACOMO: Madame Chair, 25 Commissioners, good morning. 28 ITEM NO. 10 1 Miss Kaufman is here on behalf of the 2 Petitioner. Mr. Raymond Marquez on behalf of 3 the Division of Gaming Enforcement. 4 I've shared with counsel for the parties 5 a draft of the proposed resolution, and I 6 believe that they are prepared to consent to 7 its form and entry. 8 CHAIR KASSEKERT: Thank you. 9 Before we hear from the parties, I also 10 want to recognize someone else who's leaving us 11 and, unfortunately, his buddies just left, so 12 they are not going to be here for me to 13 congratulate him and thank him for his service. 14 Ray, you've always been a terrific 15 attorney to deal with. You've always done your 16 homework and have always done a good job in 17 presenting argument before us, so I want to 18 congratulate you. 19 I was thinking about, you know, in the 20 general assembly, when new assembly people come 21 up, and they have their first bill on the 22 floor, all the other assembly people vote no. 23 And it was a big joke. I was thinking we could 24 do that now, but probaly we'd give Lynne a 25 heart attack. 29 ITEM NO. 10 1 MR. MARQUEZ: It's a good veto, then, 2 though. 3 CHAIR KASSEKERT: On behalf of your 4 Commission and your colleagues here, especially 5 from the general counsel's office, we want to 6 congratulate you and wish you every success for 7 your retirement. 8 MR. MARQUEZ: Thank you, Madame Chair. 9 (Applause and standing ovation.) 10 CHAIR KASSEKERT: When are you going to 11 take Mr. Kimmel with you? 12 MR. MARQUEZ: I fired him. 13 (Laughter.) 14 VICE CHAIR FRULIO: They're about the 15 same age; right? 16 CHAIR KASSEKERT: Miss Kaufman? 17 MS. KAUFMAN: Yes. Good morning. Thank 18 you. 19 And, Ray, thank you for putting up with 20 us. Us, not meaning them. 21 I have reviewed the resolution and find 22 it acceptable. 23 I just wanted to say that when we were 24 here in the beginning of November, we had 25 anticipated a closing by the end of November. 30 ITEM NO. 10 1 However, after some discussions with the 2 lenders, it was decided to postpone the Road 3 Show until after Thanksgiving, and then that 4 one delay led to people not moving as quickly. 5 And now the closing is anticipated to be the 6 beginning of January. We just ask for a little 7 cushion so we wouldn't have to come back. 8 Thank you. 9 CHAIR KASSEKERT: Thank you. 10 MR. MARQUEZ: And basically, Madame 11 Chair, the Division has no objection. 12 CHAIR KASSEKERT: Thank you. 13 Any questions? 14 COMMISSIONER SOMMELING: Madame Chair, 15 move to adopt the draft resolution and grant 16 the relief requested in the amended petition to 17 the extent set forth and subject to the 18 conditions in the resolution. 19 COMMISSIONER FEDORKO: Second. 20 CHAIR KASSEKERT: Motion is made and 21 seconded. This a roll call vote. 22 MR. NANCE: Commissioner Sommeling? 23 COMMISSIONER SOMMELING: Yes. 24 MR. NANCE: Commissioner Fedorko? 25 COMMISSIONER FEDORKO: Yes. 31 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 CHAIR KASSEKERT: Thank you. 8 Good luck, Ray. 9 MR. NANCE: Item No. 11, petition of 10 Harrah's Operating Company, Inc., Atlantic City 11 Showboat, Inc., Marina Associates, Bally's Park 12 Place, Inc., Boardwalk Regency Corporation for 13 waiver of qualification for certain officers of 14 HOC. 15 Miss Wozniack? 16 MS. WOZNIACK: Good morning, Chair and 17 Commissioners. Good morning. 18 I've distributed the draft resolution, 19 and Miss Hughes is here on behalf of the 20 Petitioners and Miss Turi on behalf of the 21 Division. 22 CHAIR KASSEKERT: Good morning. 23 MS. HUGHES: Good morning. I have read 24 over the draft resolution, and I have no 25 objection. I'd ask for your approval. 32 ITEM NO. 11 1 CHAIR KASSEKERT: Thank you. 2 MS. TURI: I also ask have reviewed the 3 draft resolution and have no objection. 4 CHAIR KASSEKERT: Thank you. 5 Any questions? 6 COMMISSIONER SOMMELING: No questions, 7 Madame Chair. 8 COMMISSIONER FEDORKO: Motion to adopt 9 the draft resolution and waive the 10 qualification requirement pursuant to NJSA 11 5:12-85d(1) as to the Vice President of 12 Leadership and Vice President of Training for 13 Harrah's Operating Company. 14 VICE CHAIR FRULIO: Second. 15 CHAIR KASSEKERT: Motion is made and 16 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 33 ITEM NO. 12 1 the motion is unanimous. 2 Item No. 12, consideration of the 3 qualification of Grant D. Ashley to the service 4 of Vice President of Corporate Security, 5 Surveillance and Investigation, for Harrah's 6 Operating Company, Inc. 7 Miss Frank? 8 MS. FRANK: Good morning, Chair and 9 Commissioners. 10 Grant Ashley received temporary 11 qualification from the Commission on March 15th 12 of this year. A draft resolution of Mr. 13 Ashley's plenary qualification has been 14 distributed to the parties. 15 Miss Hughes is here for Harrah's, and 16 Miss Turi for the Division. 17 MS. HUGHES: Again, I've had the 18 opportunity to review the draft resolution. I 19 have no objections and ask for your approval. 20 CHAIR KASSEKERT: Thank you. 21 Miss Turi? 22 MS. TURI: Good morning again. 23 We filed our recommendation that he be 24 granted the qualification, and I've also 25 reviewed the draft resolution and have no 34 ITEM NO. 13 1 objection to it. 2 CHAIR KASSEKERT: Thank you. 3 Any questions? 4 COMMISSIONER SOMMELING: No questions, 5 Madame Chair. 6 VICE CHAIR FRULIO: I move to adopt the 7 draft resolution and find Grant D. Ashley 8 qualified to serve as Vice President of 9 Corporate Security, Surveillance and 10 Investigation, for Harrah's Operating Company, 11 Inc. 12 COMMISSIONER FEDORKO: Second. 13 CHAIR KASSEKERT: Motion has been made 14 and seconded. This a roll call vote. 15 MR. NANCE: Commissioner Sommeling? 16 COMMISSIONER SOMMELING: Yes. 17 MR. NANCE: Commissioner Fedorko? 18 COMMISSIONER FEDORKO: Yes. 19 MR. NANCE: Vice Chair Frulio? 20 VICE CHAIR FRULIO: Yes. 21 MR. NANCE: Chair Kassekert? 22 CHAIR KASSEKERT: Yes. 23 MR. NANCE: The record will reflect that 24 the motion is unanimous. 25 Item No. 13, amended joint petition of 35 ITEM NO. 13 1 Resorts International Hotel, Inc., and RIH 2 Acquisition, NJ, LLC, for permission for 3 Michael J. Romano to serve as Vice President of 4 Regulatory Compliance pending plenary 5 qualification. 6 Miss Frank? 7 MS. FRANK: A draft resolution of Mr. 8 Romano's temporary qualification has been 9 distributed to the parties. 10 Miss Wild is here for Resorts and 11 Hilton, and Mr. Marquez for the Division. 12 CHAIR KASSEKERT: Thank you. 13 Good morning, Ms. Wild. 14 MS. WILD: Good morning, Madame Chair 15 and Commissioners. 16 I have also reviewed the draft 17 resolution, and we would ask your adoption. 18 And I want to give a special thanks to 19 Mr. Marquez for his attention on this matter 20 and every matter that he has been so kind to my 21 clients over the years. And I wish him all the 22 best. 23 CHAIR KASSEKERT: Thank you. 24 MR. MARQUEZ: Thank you. 25 CHAIR KASSEKERT: I thought 10 was your 36 ITEM NO. 13 1 last item, Mr. Marquez. 2 MR. MARQUEZ: Yeah. This is my last 3 thing. 4 I'd like to say we have no objection to 5 Mr. Romano returning in a qualified position. 6 And to thank you for your gracious 7 remarks earlier and for always being so kind to 8 me and indulging my weaknesses along the way. 9 Thank you. 10 CHAIR KASSEKERT: Thank you. 11 Any questions? 12 COMMISSIONER SOMMELING: No questions, 13 Madame Chair. 14 COMMISSIONER FEDORKO: Motion to adopt 15 the draft resolution and authorize Michael J. 16 Romano on a temporary basis, prior to his 17 plenary qualification, to assume the duties and 18 exercise the powers of Vice President of 19 Regulatory Compliance for Colony RIH Holdings, 20 Inc., and Resorts International Holdings, LLC, 21 subject to the conditions contained in NJAC 22 19:43-2.7. 23 COMMISSIONER SOMMELING: Second. 24 VICE CHAIR FRULIO: Second. 25 CHAIR KASSEKERT: Motion is made and 37 ITEM NO. 14 1 seconded. This is a roll call vote. 2 MR. NANCE: Commissioner Sommeling? 3 COMMISSIONER SOMMELING: Yes. 4 MR. NANCE: Commissioner Frulio? 5 VICE CHAIR FRULIO: Yes. 6 MR. NANCE: Commissioner Fedorko? 7 COMMISSIONER FEDORKO: Yes. 8 MR. NANCE: Chair Kassekert? 9 CHAIR KASSEKERT: Yes. 10 MR. NANCE: The record will reflect that 11 the motion is unanimous. 12 Item No. 14, petition of Harrah's 13 Operating Company, Inc., Marina Associates, 14 Atlantic City Showboat, Inc., Bally's Park 15 Place, Inc., and Boardwalk Regency Corporation 16 requesting permission for Heath Daughtrey to 17 perform the duties and exercise the powers of 18 Vice President of IT Services and Integration 19 for Harrah's Operating Company, Inc., pending 20 plenary qualification. 21 Miss Frank? 22 MS. FRANK: A draft resolution on Mr. 23 Daughtrey's temporary qualification has been 24 distributed to the parties. 25 Again, Miss Hughes is here for Harrah's, 38 ITEM NO. 14 1 and Miss Turi for the Division. 2 CHAIR KASSEKERT: Thank you. 3 Miss Hughes, 4 MS. HUGHES: I have read over the draft 5 resolution. I do thank both of you for this 6 particular application and ask for your 7 approval. 8 CHAIR KASSEKERT: Thank you. 9 Miss Turi? 10 MS. TURI: Once again, I've also 11 reviewed the draft resolution. We have no 12 objection to the subject as to the conditions 13 as contained therein. 14 CHAIR KASSEKERT: Very good. 15 Any questions? 16 COMMISSIONER SOMMELING: No questions, 17 Madame Chair. 18 COMMISSIONER FEDORKO: Motion to adopt 19 the draft resolution and find Heath Daughtrey 20 temporarily qualified and authorize him to 21 assume the duties and exercise the powers of 22 Vice President of IT Services and Integration 23 for Harrah's Operating Company, Inc., subject 24 to the conditions contained in NJAC 19:43-2.7, 25 which, among other things, require that he file 39 ITEM NO. 15 1 a PHD NJ and New Jersey supplemental by 2 December the 28th, 2006. 3 VICE CHAIR FRULIO: Second. 4 CHAIR KASSEKERT: Motion is made and 5 seconded. All those in favor? 6 (Ayes.) 7 CHAIR KASSEKERT: Oh, I'm sorry. This 8 is a roll call vote. 9 MR. NANCE: Commissioner Sommeling? 10 COMMISSIONER SOMMELING: Yes. 11 MR. NANCE: Commissioner Fedorko? 12 COMMISSIONER FEDORKO: Yes. 13 MR. NANCE: Vice Chair Frulio? 14 VICE CHAIR FRULIO: Yes. 15 MR. NANCE: Chair Kassekert? 16 CHAIR KASSEKERT: Yes. 17 MR. NANCE: The record will reflect that 18 the motion is unanimous. 19 CHAIR KASSEKERT: Thank you. 20 MS. HUGHES: Thanks. 21 CHAIR KASSEKERT: Too many roll call 22 votes. 23 MR. NANCE: Item No. 15, proposed 24 publication of readoption of NJAC 19:49. 25 Miss Frank? 40 ITEM NO. 16 1 MS. FRANK: Chair and Commissioners, 2 Chapter 49, junkets, is expected to expire on 3 January 11th of next year. Upon filing the 4 Notice of Proposed Readoption with OAL, the 5 expiration date will be extended six months to 6 July 2007. 7 Junket rules are before you today for 8 approval of the notice for initial publication 9 in the New Jersey Register. 10 CHAIR KASSEKERT: Thank you. 11 Any questions? 12 COMMISSIONER SOMMELING: Move to readopt 13 the publication without amendment. 14 VICE CHAIR FRULIO: Second. 15 CHAIR KASSEKERT: The motion made and 16 seconded. All in favor? 17 (Ayes.) 18 CHAIR KASSEKERT: Opposed? 19 (No response.) 20 CHAIR KASSEKERT: The motion carries. 21 MR. NANCE: Item No. 16, proposed 22 publication and temporary adoption of 23 amendments concerning jackpot-to-credit-meter 24 switch. 25 Mr. Kell? 41 ITEM NO. 17 1 MR. KELL: Good morning, Madame Chair 2 and Commissioners. 3 Before you are proposed amendments that 4 establish standards for jackpot-for-credit- 5 meter switch on the slot machine and authorize 6 the use of such a device to transfer to the 7 credit meter the amount of the jackpot that 8 would normally be hand paid. 9 The Staff recommended you publish and 10 also temporarily adopt the amendments. 11 CHAIR KASSEKERT: Thank you. 12 Any questions? 13 COMMISSIONER SOMMELING: No questions, 14 Madame Chair. 15 VICE CHAIR FRULIO: Move to approve for 16 publication and temporary adoption. 17 COMMISSIONER FEDORKO: Second. 18 CHAIR KASSEKERT: The motion has been 19 made and seconded. All in favor? 20 (Ayes.) 21 CHAIR KASSEKERT: Opposed? 22 (No response.) 23 CHAIR KASSEKERT: The motion carries. 24 MR. NANCE: Item No. 17, petition of 25 Progressive Games and Marina Associates for 42 ITEM NO. 17 1 approval of a multi-casino progressive table 2 game system and proposed temporary adoption of 3 amendments to NJAC 19:45-1.8, 1.11, and 1.39B 4 and new rules NJAC 19:45-1.39C. 5 Mr. Briliant? 6 MR. BRILIANT: Good morning, Madame 7 Chair, and Commissioners. 8 Before you for your review is a proposed 9 regulation which would permit two or more 10 casino licensees to operate a linked table game 11 progressive pay-out wager which would be known 12 as a multi-casino table game system. 13 Miss Kaufman is here on behalf of 14 Petitioner, Progressive Games. 15 We have circulated an informal draft of 16 the proposed regulations for her client's 17 review. And we are recommending at this time 18 that the Commission not publish the regulations 19 but temporarily adopt them so that a test of 20 the proposed system can be accomplished. Then 21 we can decide where we are going from there, 22 make any changes that might be necessary, and 23 then proceed to publication if that's 24 warranted. 25 CHAIR KASSEKERT: Thank you. 43 ITEM NO. 17 1 Miss Kaufman? 2 MR. KAUFMAN: Yes. Thank you. 3 This multi-casino progressive table game 4 system has the same concept as the current slot 5 system. By approving this today, tests will 6 not be able to immediately begin. We have to 7 go through the DGE lab. And then, most 8 importantly, we will be before you requesting 9 changes to the regulations for the specific 10 table games that will be subject to the 11 progressive play. 12 CHAIR KASSEKERT: Thank you. 13 Any questions? 14 COMMISSIONER SOMMELING: No questions, 15 Madame Chair. 16 VICE CHAIR FRULIO: Move to approve 17 temporary adoption and publication of notice of 18 temporary adoption. 19 COMMISSIONER FEDORKO: Second. 20 CHAIR KASSEKERT: The motion has been 21 made and seconded. All in favor? 22 (Ayes.) 23 CHAIR KASSEKERT: Opposed? 24 (No response.) 25 CHAIR KASSEKERT: The motion carries. 44 ITEM NO. 18 1 MR. NANCE: Item No. 18, petition of WMS 2 Gaming, Inc., for approval of the "Powerball" 3 annuity jackpot, multi-casino progressive slot 4 system and its slot system agreement and trust 5 agreement pursuant to NJAC 19:45-39A and 1.40B. 6 Mr. Briliant? 7 MR. BRILIANT: Madame Chair, Mr. Downing 8 is here on behalf of the Petitioners. 9 CHAIR KASSEKERT: Thank you. 10 Mr. Downing? 11 MR. DOWNING: Thank you, Chair. Bill 12 Downing from Fox Rothschild for WMS Gaming. 13 With me today is Daurean Sloan who is the Vice 14 President of Regulatory Affairs and Carl Clay, 15 who is the Back Operations Manager. 16 We've been before you on WMS for several 17 occasions for seeking approval of wide area of 18 progressive systems. This is the first time we 19 are before you on an annuity system. The 20 specific sytem for which we seek approval is a 21 multi-casino denomination system with an 22 initial reset amount of a million dollars. 23 Staff also asked that we make clear to 24 you that this is an opt-out annuity system, so 25 that upon winning the jackpot, the recipient 45 ITEM NO. 18 1 has the option to opt out and take a discounted 2 cash payment. 3 Each of the computer systems, the job 4 compendium, the monitoring room, and the 5 surveillance submissions have all been 6 previously approved by this Commission along 7 with other systems operating by WMS. 8 Our internal controls are pending final 9 review by staff, and we also seek approval of 10 revised slot system agreement and our trust 11 agreement. 12 We have been provided with a form of 13 resolution by Mr. Briliant, and we have no 14 objection to its form or contents. 15 CHAIR KASSEKERT: Thank you. 16 Mr. Kimmel? 17 MR. KIMMEL: Thank you. 18 And the Division has also been provided 19 with a copy of that draft resolution, and has 20 no objection to its adoption. 21 CHAIR KASSEKERT: Thank you. 22 Any questions for the parties? 23 COMMISSIONER SOMMELING: Madame Chair, 24 move to adopt the draft resolution and approve 25 the WMS "Powerball" slot system agreement and 46 ITEM NO. 19 1 the Powerball annuity trust agreement subject 2 to the conditions in the resolution. 3 COMMISSIONER FEDORKO: Second. 4 CHAIR KASSEKERT: The motion has been 5 made and seconded. All in favor? 6 (Ayes.) 7 CHAIR KASSEKERT: Opposed? 8 (No response.) 9 CHAIR KASSEKERT: The motion carries. 10 Thank you very much. 11 MR. BRILIANT: Thank you. 12 Madame Chair, I just wanted to go back 13 for a second to the previous matter. Mr. 14 Kimmel indicated to me he thought that the 15 motion was to publish the regulation. I was 16 pretty sure that the motion was to publish the 17 notice of a temporary adoption. 18 CHAIR KASSEKERT: Yes. 19 VICE CHAIR FRULIO: That's correct. 20 MR. BRILIANT: Okay. Good 21 CHAIR KASSEKERT: Thank you. 22 MR. NANCE: Item No. 19, joint petition 23 of RIH Acquisition, LLC, NJ, and Resorts 24 International Hotel, Inc., for approval of a 25 second amended and restated joint services 47 ITEM NO. 19 1 agreement. 2 Mr. Ingis? 3 MR. INGIS: Good morning, Madame Chair, 4 Commissioners. 5 Miss Wild is here on behalf of the 6 Petitioners and Miss Way is here for the 7 Division of Gaming Enforcement. 8 CHAIR KASSEKERT: Thank you. 9 Miss Wild? 10 MS. WILD: Good morning again. 11 I just want to put in a couple things on 12 the record. 13 CHAIR KASSEKERT: Sure. 14 MS. WILD: I'd just acknowledge that I 15 have reviewed the order that was prepared with 16 respect to this item. We are in agreement with 17 that order, and I would ask that you to enter 18 that order as proposed. But I wanted to 19 explain a couple of things on the record. 20 CHAIR KASSEKERT: Sure. 21 MS. WILD: The joint services agreement, 22 the amended joint services agreement that is 23 under consideration here today, actually adds 24 several areas to our joint services provision 25 by our corporate oversight corporation. It 48 ITEM NO. 19 1 added executive management, accounting -- 2 corporate accounting, not casino accounting. 3 Nothing to do with the casinos in Atlantic 4 City. Corporate finance, corporate human 5 resources, and corporate marketing initiatives. 6 That's the type of thing that we're talking 7 about adding to our corporate oversight here. 8 What this does is it basically allows 9 the Resorts Atlantic City and the Hilton 10 Atlantic City and the four sister properties to 11 share some of these services at the corporate 12 level. In connection with the original 13 purchase of the Atlantic City Hilton, the 14 Commission did approve a joint services 15 agreement. This is a revised joint services 16 agreement adding these areas that I spoke of. 17 I wanted to let you know that all of the 18 corporate officers -- because this is a 19 provision in the order -- all of the corporate 20 officers who have been appointed in connection 21 with this joint services agreement, amended 22 joint services agreement, have already been 23 qualified because the company providing these 24 services is a qualifier of the Atlantic City 25 Hilton licensee. So this does not necessitate 49 ITEM NO. 19 1 any further qualifications of any individuals 2 at this time. If someone becomes a new officer 3 or an officer is replaced, of course, that 4 person will have to be qualified, and we will 5 do so in a normal course of our regulatory 6 compliance. 7 My client understands the limitation 8 that you are placing on this order today. And 9 I will reinforce this with my client. I 10 understand that there are two aspects that you 11 are not approving today. You are not approving 12 our request to move certain MIS or IT 13 department personnel onto the corporation joint 14 services structure, and you are not approving 15 at this time the executive director of internal 16 audit to move onto the corporate joint services 17 structure. We do understand that. We will 18 make no effort to make those transfers at this 19 time. 20 I hope that very shortly after the first 21 of the year we can bring back to you for your 22 consideration those items that you need in 23 order to give us that relief that we have 24 requested. And I have discussed this with 25 counsel for the Commission, and I believe that 50 ITEM NO. 19 1 this will be -- this will be considered 2 sometime in January. And I appreciate that 3 consideration, and I appreciate the 4 consideration of the balance of it today 5 because this is very important to my client. 6 I also want to thank the staff of the 7 Division, both Mr. Ingis, Mr. Storcella's 8 staff. We had several meetings on this. Also 9 I want to thank Miss Way. This was a long -- 10 hard considered. We had many submissions that 11 had to go back and forth. And I understand the 12 level of concern that the Commission has with 13 this matter. My client is appreciative of 14 that. But we do feel that this is something 15 that will basically enable us to do our work 16 better without harming any integrity in the 17 casino setting in Atlantic City. 18 So thank you for your consideration of 19 this. 20 CHAIR KASSEKERT: Thank you. 21 Miss Way? 22 MS. WAY: We have no objection to the 23 Commission issuing the order as drafted. 24 CHAIR KASSEKERT: Thank you. 25 Any questions. 51 ITEM NO. 20 1 COMMISSIONER SOMMELING: No questions, 2 Madame Chair. 3 COMMISSIONER FEDORKO: Motion to grant 4 in part to: Approve certain portions of the 5 amended and joint services agreement subject to 6 the conditions set forth in the Commission's 7 order; and to defer consideration of the 8 Petitioner's request to transfer positions from 9 the casinos licensees' tables of organization 10 to the holding company level. 11 VICE CHAIR FRULIO: Second. 12 CHAIR KASSEKERT: The motion has been 13 made and seconded. All in favor? 14 (Ayes.) 15 CHAIR KASSEKERT: Opposed? 16 (No response.) 17 CHAIR KASSEKERT: The motion carries. 18 Thank you. 19 MS. WILD: Thank you. 20 MR. NANCE: Item No. 20, proposed 21 adoption of resolution concerning closed 22 sessions for public meetings scheduled for the 23 year 2007. 24 Chair, Commissioners, presented for 25 adoption is a proposed resolution which will 52 1 permit the Commission to hold closed sessions 2 prior to the commencement of each scheduled 3 2007 public meeting. 4 CHAIR KASSEKERT: Thank you. 5 Any questions? 6 COMMISSIONER SOMMELING: Move to 7 approve, Madame Chair. 8 COMMISSIONER FEDORKO: Second. 9 CHAIR KASSEKERT: The motion has been 10 made and seconded. All in favor? 11 (Ayes.) 12 CHAIR KASSEKERT: Opposed? 13 (No response.) 14 CHAIR KASSEKERT: The motion carries. 15 MR. NANCE: In accordance with the 16 Resolution that was just passed, which is 17 06-12-13-20, the next closed session of the 18 Commission shall be held on Wednesday, January 19 3rd, 2007, at 9:15 a.m. in the Commission 20 offices. 21 It is now time for the public 22 participation portion of the meeting. 23 CHAIR KASSEKERT: Anybody from the 24 public wishes to be heard? 25 Seeing no one, I'll declare this portion 53 1 of the meeting closed and entertain a motion to 2 adjourn. 3 COMMISSIONER SOMMELING: Motion to 4 adjourn. 5 VICE CHAIR FRULIO: Second. 6 CHAIR KASSEKERT: The motion has been 7 made and seconded. All in favor? 8 (Ayes.) 9 CHAIR KASSEKERT: Opposed? 10 (No response.) 11 CHAIR KASSEKERT: The motion carries. 12 Happy holidays. 13 (Meeting 06-12-13 was concluded at 11:09 14 a.m.) 15 16 17 18 19 20 21 22 23 24 25 54 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: December 17, 2006 24 My Commission Expires on July 10, 2009 25 ID No 2062871