1 1 STATE OF NEW JERSEY 2 CASINO CONTROL COMMISSION 3 - - - - - - - - - - - - - - - - - - - 4 5 PUBLIC MEETING NO. 07-08-01 6 7 - - - - - - - - - - - - - - - - - - - 8 9 Wednesday, August 1, 2007 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 10:35 a.m. to 11:10 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 MICHAEL A. FEDORKO, VICE CHAIR MICHAEL C. EPPS, COMMISSIONER 4 RALPH G. FRULIO, 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 TERESA M. NAGENGAST, SENIOR COUNSEL 10 E. DENNIS KELL, ASSISTANT GENERAL COUNSEL BERNADETTE T. FRIGEN, PROGRAM SUPERVISOR 11 CLAIRE FRANK, PROGRAM SUPERVISOR/SENIOR EEO COORDINATOR 12 DIVISION OF GAMING ENFORCEMENT: 13 DEPUTY ATTORNEYS GENERAL JACK ADAMS, DEPUTY ATTORNEY GENERAL 14 BRIAN BISCIEGLIA, DEPUTY ATTORNEY GENERAL TIMOTHY C. FICCHI, DEPUTY ATTORNEY GENERAL 15 FREDERICK J. McDONOUGH, DEPUTY ATTORNEY GENERAL 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. 7 TERESA M. NAGENGAST, SENIOR COUNSEL FREDERICK J. McDONOUGH, DEPUTY 3 ATTORNEY GENERAL LYNNE KAUFMAN, ESQ. 4 FOR: TANG DYNASTY 5 ITEM NO. 10 MARY WOZNIAK, ASSISTANT GENERAL COUNSEL JACK ADAMS, DEPUTY ATTORNEY GENERAL 6 PAUL O'GARA, ESQ. FOR: HAMLET HOLDINGS, LLC, ET AL 7 ITEM NO. 11 CLAIRE FRANK, PROGRAM SUPERVISOR 8 JACK ADAMS, DEPUTY ATTORNEY GENERAL KAREN WOSNACK, ESQ. 9 FOR: HARRAH'S OPERATING COMPANY, LLC 10 ITEM NO. 12 CLAIRE FRANK, PROGRAM SUPERVISOR JACK ADAMS, DEPUTY ATTORNEY GENERAL 11 GUY S. MICHAEL, ESQ. FOR: TROPICANA CASINO AND RESORTS 12 ITEM NO. 14 E. DENNIS KELL, ASSISTANT GENERAL COUNSEL 13 TIMOTHY C. FICCHI, DEPUTY ATTORNEY GENERAL KAREN WOSNACK, ESQ. 14 FOR: BALLY'S PARK PLACE, INC. 15 ITEM NO. E. DENNIS KELL, ASSISTANT GENERAL COUNSEL JACK ADAMS, DEPUTY ATTORNEY GENERAL 16 BRYAN SCHROEDER, ESQ. FOR: BALLY GAMING, INC. 17 18 19 20 21 22 23 24 25 4 1 AGENDA PUBLIC MEETING NO. 07-08-01 2 AUGUST 1, 2007, 10:35 a.m. ITEM PAGE VOTE 3 1 Ratification of the minutes of 8 9 4 July 18, 2007 2 Applications for employee and casino 5 service industry licenses: 30 applications for initial and/or 9 9 6 renewal of casino key and casino employee licenses 7 13 applications for initial and/or 9 10 renewal of casino key and casino 8 employee licenses Qualification of Galya Hoffer in 10 11 9 connection with the gaming related casino services industry license of TOTALUP, Inc., 10 pursuant to NJAC 19:51-1.14B(h) Applications for initial and renewal 11 of casino key employee licenses and for qualification: 12 Ronald R. Brown, Vice President of 11 12 Casino Operations for Trump Marina 13 Associates, LLC Domenic R. Palmiere, Vice President of 11 12 14 Relationship Marketing for Marina District Development Company, LLC 15 3 Petition of Marina District Development 12 14 Company, LLC, (d/b/a Borgata Hotel Casino 16 & Spa) for the issuance of a temporary casino key employee license to Jay Rosenthal 17 pursuant to NJSA 5:12-89(e) and to permit him pursuant to NJAC 19:43-2.6 to assume 18 the duties and exercise the powers of Vice President of Hospitality without first 19 having been found qualified (PRN 1900725) 4 Stipulations of settlement and consent 20 agreements: a) Jerry Galarza (06-0521-EA) 14 16 21 b) Caprice F. Walker (07-0339-EA) 14 16 c) Erik Valentin (06-0462-ER) 14 16 22 d) Deanna K. Battaglini (05-0712-RC) 14 16 e) James English (06-0557-RC) 14 16 23 f) Stephen Staiano (05-0784-RC) 14 16 g) Gabriel C. Darretta (07-0006-EA) 14 16 24 5 Petitions for early reapplication: a) Desiree Mendez (07-0271-RA) 16 17 25 b) Claudio L. Valentin (07-0282-RA) 16 20 Sworn 18 5 1 CONTINUED AGENDA PUBLIC MEETING NO. 07-08-01 2 AUGUST 1, 2007, 10:35 a.m. ITEM PAGE VOTE 3 6 Stipulation of settlement of State v. 20 22 4 Marina District Development Company, LLC (d/b/a Borgata Hotel Casino & Spa) (07-0147-VC) 5 7 Joint petition of Tang Dynasty 22 24 Entertainment, LLC, and Marina District 6 Development Company, LLC (d/b/a Borgata Hotel Casino & Spa) 7 8 Petition of Highgate Steel, Inc., for adj. release of monies held in escrow and other 8 relief (PRN 1630701) 9 Amended petition of Goldman, Sach & Co., adj. 9 et al., for a waiver of the qualification requirement with respect to Security Holdings 10 in Boyd Gaming Corporation and for other relief (PRN 0300703) 11 10 Petition of the Division of Gaming 24 40 Enforcement requesting clarification of a 12 ruling in Resolution No. 07-04-04-11 (PRN 1930701) 11 Amended petition of Harrah's Operating 40 42 13 Company, Inc.(HOC), Marina Associates, Atlantic City Showboat, Inc., Bally's Park 14 Place, Inc., and Boardwalk Regency Corp., requesting permission for John W. Baker to 15 perform the duties and exercise the powers of Vice President for Procurement & Enterprise 16 Effectiveness for HOC pending plenary qualification (PRN 2000702) 17 12 Amended petition of Adamar of New Jersey, 43 44 Inc., and Tropicana Casinos & Resorts, Inc., 18 (TCR) requesting permission for Robert W. Little to perform the duties and exercise 19 the powers of Regional Vice President for the Eastern Region of TRC pending plenary 20 qualification (PRN 1900723) 13 Proposed notice of readoption of Chapter 45 46 21 53 (Equal Employment and Business Opportunity) 14 Petition of Bally's Park Place, Inc., 46 47 22 (d/b/a Bally's Atlantic City) for a waiver pursuant to the provisions of NJAC 19:45-1.14A(d) 23 (PRN 1860711) 15 Petition of the Atlantic City Cartoon 47 49 24 Jackpots Progressive Trust and Bally Gaming, Inc., for permission to transfer a 25 progressive jackpot pursuant to NJAC 19:45-1.39(n) (PRN 1920701) 6 1 E X H I B I T S : 2 ITEM NO. 2 DESCRIPTION EVD 3 4 EL-1 Remand for hearings 30 license X applications 5 EL-2 Grant 13 licenses X 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (Exhibits retained by Commission.) 25 7 1 (Public Meeting 07-08-01 was commenced 2 at 10:35 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 16th, 2006, filed with 10 the Secretary of State at the State House in 11 Trenton an annual meeting schedule. On October 12 16th, copies were mailed to the Press of 13 Atlantic City, the Newark Star Ledger. 14 Members of the press will be permitted 15 to take photographs, and we would ask that this 16 be done in a manner which is not disruptive or 17 distracting to the Commission. 18 The use of cellular telephones in the 19 public meeting room while the Commission is in 20 session is prohibited. 21 Any members of the public who wish to 22 address the Commission will be given the 23 opportunity to do so before the Commission 24 adjourns for the day. 25 Please stand for the Pledge of 8 ITEM NO. 1 1 Allegiance. 2 (The flag salute was recited.) 3 CHAIR KASSEKERT: Good morning. 4 MR. NANCE: Good morning. 5 The matters discussed in closed session 6 were: Employee and enterprise license matters. 7 The Commission approved the July 18, 8 2007, closed session minutes. 9 Litigation update regarding Warren 10 Lackland and Lewis M. Springer, Jr., versus the 11 State of New Jersey, Casino Control Commission; 12 Gloria Ford versus State of New Jersey, 13 Casino Control Commission, et al;. 14 Tyrone J. Floyd versus Casino Control 15 Commission and Sands Casino Hotel; 16 And Husain versus Casino Control 17 Commission, et al;. 18 And in the matter of the petition of SD 19 for removal from the voluntary self-exclusion 20 list. 21 Item No. 1, ratification of the minutes 22 of July 18th, 2007. 23 COMMISSIONER SOMMELING: Move to 24 approve. 25 VICE CHAIR FEDORKO: Second. 9 ITEM NO. 2 1 CHAIR KASSEKERT: The motion has been 2 made and seconded. All in favor? 3 (Ayes.) 4 CHAIR KASSEKERT: Opposed? 5 (No response.) 6 CHAIR KASSEKERT: Motion carries. 7 COMMISSIONER FRULIO: Abstain. 8 CHAIR KASSEKERT: Thank you. 9 Yes. Commissioner Frulio abstained. 10 MR. NANCE: Item No. 2, application for 11 employee and casino service industry license. 12 This agenda item will be entered as Exhibit 13 List 1 and 2. 14 Exhibit List 1 exists of 30 application 15 for initial and/or renewal of casino key and 16 casino employee licenses. 17 The Division has objected to licensure. 18 COMMISSIONER FRULIO: Motion to remand 19 for hearings. 20 VICE CHAIR FEDORKO: Second. 21 CHAIR KASSEKERT: The motion has been 22 made and seconded. All in favor? 23 (Ayes.) 24 CHAIR KASSEKERT: Opposed? 25 (No response.) 10 ITEM NO. 2 1 CHAIR KASSEKERT: Motion carries. 2 MR. NANCE: Exhibit List 2 consists of 3 13 applications for initial and/or renewal of 4 casino key and casino employee licenses. 5 Staff and the Division have recommended 6 that these licenses be granted. 7 COMMISSIONER FRULIO: Motion to grant 8 applications. 9 VICE CHAIR 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: Motion carries. 16 MR. NANCE: For consideration is the 17 qualification of Galya Hoffer in connection 18 with the gaming related casino services 19 industry license of TOTALUP, Inc., pursuant to 20 NJAC 19:51-1.14B(h). 21 Staff and the Division has recommended 22 that this application be granted. 23 COMMISSIONER FRULIO: Motion to find 24 Gayla Hoffer plenary qualified in connection 25 with the gaming related casino service industry 11 ITEM NO. 2 1 license of TOTALUP, Inc. 2 VICE CHAIR FEDORKO: Second. 3 CHAIR KASSEKERT: The motion has been 4 made and seconded. All in favor? 5 (Ayes.) 6 CHAIR KASSEKERT: Opposed? 7 (No response.) 8 CHAIR KASSEKERT: Motion carries. 9 MR. NANCE: For consideration are the 10 following applications for initial and renewal 11 of casino key employee licenses and for 12 qualification: Ronald R. Browne, Vice 13 President of Casino Operations for Trump Marina 14 Associates, LLC, and Domenic R. Palmiere, Vice 15 President of Relationship Marketing for Marina 16 District Development Company, LLC. 17 Staff and the Division have recommended 18 that these applications be granted. 19 COMMISSIONER FRULIO: Motion to grant 20 initial and renewal of key licenses and for 21 qualification. 22 VICE CHAIR FEDORKO: Second. 23 CHAIR KASSEKERT: Motion is made and 24 seconded. This is a roll call vote. 25 MR. NANCE: Commissioner Sommeling? 12 ITEM NO. 3 1 COMMISSIONER SOMMELING: Yes. 2 MR. NANCE: Commissioner Epps? 3 COMMISSIONER EPPS: Yes. 4 MR. NANCE: Commissioner Frulio? 5 COMMISSIONER FRULIO: Yes. 6 MR. NANCE: Vice Chair Fedorko? 7 VICE CHAIR 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. 3, Petition No. 1900725 of 13 Marina District Development Company, LLC, is 14 requesting the issuance of a temporary casino 15 key employee license to Jay Rosenthal. Excuse 16 me. Rosenthal 17 MR. ROSENTHAL: That's close. 18 MR. NANCE: Pursuant to NJAC 5:12-89(e) 19 and to permit him pursuant to NJAC 19:43-2.6 to 20 assume the duties and exercise the powers of 21 Vice President of Hospitality without first 22 having been found qualification. 23 CHAIR KASSEKERT: Miss Kaufman, I'm 24 assuming that's Rosenthal; right? 25 MR. ROSENTHAL: Rosenthal. Very good. 13 ITEM NO. 3 1 MS. KAUFMAN: I was thinking, maybe -- 2 MR. ROSENTHAL: Close. 3 MS. KAUFMAN: Good morning, 4 Commissioners. 5 Obviously, we have a petition for 6 temporary key qualification for Jay Rosenthal. 7 We have him with us today. 8 We're really pleased to have him at 9 Borgata. Believe it or not, looking at him, 10 he's a 30-year veteran of the hotel industry. 11 And he started with Hilton. He's been with 12 Hyatt and Providence and Starwood. And his 13 last experience was with a smaller company, 14 Rand, which specialized in development of both 15 hospitality and retail and also restaurants 16 and, obviously, with our emphasis also on our 17 nongaming services, we're excited to have him, 18 and if you have any questions, he was here. 19 CHAIR KASSEKERT: Thank you. 20 Any questions. 21 COMMISSIONER SOMMELING: No questions, 22 Madame Chair. 23 COMMISSIONER FRULIO: Motion to grant 24 temporary key license and qualification. 25 VICE CHAIR FEDORKO: Second. 14 ITEM NO. 4 1 CHAIR KASSEKERT: Motion is made and 2 seconded. This is a roll call vote. 3 MR. NANCE: Commissioner Sommeling? 4 COMMISSIONER SOMMELING: Yes. 5 MR. NANCE: Commissioner Epps? 6 COMMISSIONER EPPS: Yes. 7 MR. NANCE: Commissioner Frulio? 8 COMMISSIONER FRULIO: Yes. 9 MR. NANCE: Vice Chair Fedorko? 10 VICE CHAIR FEDORKO: Yes. 11 MR. NANCE: Chair Kassekert? 12 CHAIR KASSEKERT: Yes. 13 MR. NANCE: The record will reflect that 14 the motion is unanimous. 15 CHAIR KASSEKERT: Congratulations. 16 MR. ROSENTHAL: Thank you. 17 MR. KAUFMAN: Thank you. 18 MR. NANCE: Item No. 4, stipulation of 19 settlement and consent agreements. When I call 20 your name, please come forward, stand behind 21 the center table, spreading across the room so 22 that you may be seen: Jerry Galarza, Caprice 23 Walker, Erik Valentin, Deanna Battaglini, James 24 English, Stephen Staiano, and Gabriel Darretta. 25 CHAIR KASSEKERT: Okay. I'm going to 15 ITEM NO. 4 1 ask that you each state your name for the 2 record, starting with you, sir. 3 MR. ENGLISH: James English. 4 MR. DARRETTA: Gabriel Darretta. 5 MS. WALKER: Caprice Walker. 6 MR. GALARZA: Jerry Galarza. 7 MR. STAIANO: Stephen Staiano. 8 MS. BATTAGLINI: Deanna Battaglini. 9 MR. MURRAY: And Arthur Murray, attorney 10 for Miss Battaglini. 11 CHAIR KASSEKERT: Thank you. 12 In a moment we're going to vote on the 13 stipulations which you've agreed to with the 14 Division of Gaming Enforcement. I'm going to 15 ask at this point if any of you wish to be 16 heard on your matter. You do not have to say 17 anything in you do not want to. 18 Do you wish to be heard? 19 MR. MURRAY: We submit. 20 CHAIR KASSEKERT: Mr. Biscieglia? 21 MR. BISCIEGLIA: Good morning, Chair, 22 Commissioners. 23 The Division has nothing further and ask 24 that the stipulations be adopted. 25 Thank you. 16 ITEM NO. 5 1 CHAIR KASSEKERT: Thank you. 2 Any questions? 3 COMMISSIONER SOMMELING: Move to approve 4 stipulations, Madame Chair. 5 VICE CHAIR FEDORKO: 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: Motion carries. 12 Thank you very much for coming. Good 13 luck. 14 MR. MURRAY: Thank you. 15 FROM THE FLOOR: Thank you. 16 MR. NANCE: Item No. 5, petition for 17 early reapplication for Desiree Mendez and 18 Claudio Valentin. 19 Miss Frigen? 20 MS. FRIGEN: Good morning, Madame Chair, 21 Commissioners. 22 CHAIR KASSEKERT: Good morning. 23 MS. FRIGEN: Let me inquire whether 24 Desiree Mendez is present or represented? 25 Apparently, she is not here today. 17 ITEM NO. 5 1 For your consideration is her petition 2 seeking permission to reapply early for a 3 registration and/or noncredential casino hotel 4 alcoholic beverage employment early. By letter 5 dated June 6, the Division has posed no 6 objection to this petition. 7 CHAIR KASSEKERT: Thank you. 8 Mr. Biscieglia? Anything to add? 9 MR. BISCIEGLIA: Nothing, Chair. We 10 have not interposed any objections. 11 CHAIR KASSEKERT: Thank you. 12 Thank you. Any questions? 13 VICE CHAIR FEDORKO: Motion to grant 14 Miss Mendez permission to reapply early for a 15 casino service employee registration and/or to 16 obtain employment early as a noncredential 17 hotel alcoholic beverage employee. 18 COMMISSIONER EPPS: Second. 19 CHAIR KASSEKERT: The motion has been 20 made and seconded. All in favor? 21 (Ayes.) 22 CHAIR KASSEKERT: Opposed? 23 (No response.) 24 CHAIR KASSEKERT: Motion carries. 25 MS. FRIGEN: Thank you. Okay. 18 ITEM NO. 5 1 Next we have Claudio Valentine. Mr. 2 Valentin is present. I'd ask him to have a 3 seat at the table. Okay. 4 For your consideration is Mr. Valentin's 5 petition seeking permission to reapply early 6 for a license registration and/or a 7 noncredential hotel employment. 8 Again, by letter dated June 6th, the 9 Division has interposed no objection to this 10 petition. 11 CHAIR KASSEKERT: Thank you. 12 Mr. Valentin, is there anything that 13 you'd like to say today? 14 MR. VALENTIN: Yes. 15 CHAIR KASSEKERT: We have to sworn swear 16 you in if you do. 17 MR. VALENTIN: I do. 18 MR. NANCE: Please stand and raise your 19 right hand. 20 21 CLAUDIO VALENTIN, was duly sworn to 22 testify in this matter. 23 24 MR. NANCE: Please state your name for 25 the record. 19 ITEM NO. 5 1 MR. VALENTIN: Claudio L. Valentin. 2 MR. NANCE: Thank you. You may be 3 seated. 4 CHAIR KASSEKERT: Okay. Mr. Valentin, 5 what would you like to say today? 6 MR. VALENTIN: I just want to know 7 necessarily I have made my mistakes, and I'm 8 ready to pursue my goals on life and carry out 9 without making any more mistakes. 10 CHAIR KASSEKERT: Very good. 11 Thank you very much. 12 Mr. Biscieglia, anything to add? 13 MR. BISCIEGLIA: Thank you, Madame 14 Chair. 15 The Division has nothing to add. 16 CHAIR KASSEKERT: Any questions? 17 Thank you. 18 COMMISSIONER SOMMELING: No questions, 19 Madame Chair. 20 VICE CHAIR FEDORKO: Motion to grant Mr. 21 Valentin permission to reapply early for a 22 casino employee license, a casino service 23 employee registration and/or to obtain 24 employment early as a noncredential employee. 25 COMMISSIONER EPPS: Second. 20 ITEM NO. 6 1 COMMISSIONER FRULIO: Second. 2 CHAIR KASSEKERT: The motion has been 3 made and seconded. All in favor? 4 (Ayes.) 5 CHAIR KASSEKERT: Opposed? 6 (No response.) 7 CHAIR KASSEKERT: Motion carries. 8 Thank you for coming. Good luck. 9 MR. VALENTIN: Thank you. 10 MR. NANCE: Item No. 6, stipulation of 11 settlement of State versus Marina District 12 Development Company, LLC. 13 Miss Nagengast? 14 MS. NAGENGAST: Good morning, Chair and 15 Commissioners. 16 CHAIR KASSEKERT: Good morning. 17 MS. NAGENGAST: For your consideration 18 this morning is a stipulation of settlement 19 between the Division and the Borgata in which 20 the Borgata admits to having violated NJAC 21 19:51-1.2B and agrees to be assessed a civil 22 penalty of $30,000 for that violation. 23 I did speak for counsel for Borgata. He 24 was unable to be here today. He asked that I 25 ask the Commission to approve the stipulation. 21 ITEM NO. 6 1 I note that Rick McDonough is here on 2 behalf of the Division. 3 CHAIR KASSEKERT: Thank you. 4 Mr. McDonough? 5 MR. McDONOUGH: Yes. Good morning. 6 In addition to the $30,000 civil 7 penalty, Borgata agrees in the settlement to 8 implement a training program so that, 9 hopefully, we won't have a repetition of this 10 event. 11 CHAIR KASSEKERT: Thank you. 12 MR. McDONOUGH: We think that's 13 important. 14 CHAIR KASSEKERT: Very important. 15 Thank you. 16 Any questions? 17 COMMISSIONER SOMMELING: Madame Chair, 18 move to approve the stipulation of settlement 19 and impose a civil penalty of $30,000 against 20 Marina District Development Company, LLC, for 21 violation of Commission regulations regarding 22 engaging in business without requisite 23 approval. 24 VICE CHAIR FEDORKO: Second. 25 CHAIR KASSEKERT: The motion has been 22 ITEM NO. 7 1 made and seconded. All in favor? 2 (Ayes.) 3 CHAIR KASSEKERT: Opposed? 4 (No response.) 5 CHAIR KASSEKERT: Motion carries. 6 MR. McDONOUGH: Thank you. 7 CHAIR KASSEKERT: Thank you. 8 MR. NANCE: Item No. 7, joint petition 9 of Tang Dynasty Entertainment, LLC, and Marina 10 District Development Company, LLC, for a 11 transactional waiver. 12 Miss Nagengast? 13 MS. NAGENGAST: Chair and Commissioners, 14 this is an offshoot of the previous item. This 15 is the petition seeking a transactional waiver 16 nunc pro tunc for the transaction that gave way 17 to the complaint in the last item. 18 Miss Kaufman is here on behalf of Tang. 19 As I noticed previously, Mr. Corbo was not able 20 to be here; however, it's my understanding that 21 because of the complaint that was filed, the 22 petition as to Borgata is -- will be dismissed 23 as moot. 24 CHAIR KASSEKERT: Thank you. 25 MS. NAGENGAST: And ask counsel to 23 ITEM NO. 7 1 begin. 2 CHAIR KASSEKERT: Miss Kaufman? 3 MS. KAUFMAN: Thank you. 4 I have nothing to add other than what 5 was in the petition and request the relief that 6 we asked for. 7 Thank you. 8 CHAIR KASSEKERT: Mr. McDonough? 9 MR. McDONOUGH: Yes. I filed two 10 letters on this matter, one dated March 27th 11 this year, the other July 20th this year. And 12 our position is that we believe that relief may 13 be granted as to Tang. 14 CHAIR KASSEKERT: Very good. 15 Any questions? 16 COMMISSIONER SOMMELING: No questions, 17 Madame Chair. 18 COMMISSIONER EPPS: Madame Chair, I move 19 that we grant nunc pro tunc the petition for 20 transactional waiver with respect to Tang 21 Dynasty Entertainment, LLC, and dismiss as moot 22 the petition as to Borgata pursuant to the 23 stipulation of settlement in State versus MDDC, 24 Docket No. 07-0147-VC. 25 COMMISSIONER SOMMELING: Second. 24 ITEM NO. 10 1 CHAIR KASSEKERT: The motion has been 2 made and seconded. All in favor? 3 (Ayes.) 4 CHAIR KASSEKERT: Opposed? 5 (No response.) 6 CHAIR KASSEKERT: Motion carries. 7 MR. McDONOUGH: Thank you, 8 MS. KAUFMAN: Thank you. 9 MS. NAGENGAST: Thank you. 10 MR. NANCE: Item No. 8 has been 11 adjourned. 12 And Item 9 has been adjourned at the 13 request of the Petitioner. 14 For your consideration Item No. 10, 15 petition of the Division of Gaming Enforcement 16 requesting clarification of a ruling in 17 Resolution No. 07-04-04-11. 18 Ms. Wozniak? 19 MS. WOZNIAK: Good morning. 20 Chair, Commissioners, we have a draft 21 resolution that I have distributed to both Mr. 22 O'Gara and Mr. Adams. Mr. Adams is here for 23 the Division. Mr. O'Gara is here representing 24 Hamlet Holdings and its affiliated entities. 25 CHAIR KASSEKERT: Thank you. 25 ITEM NO. 10 1 Mr. O'Gara? Is this -- whose petition 2 actually is this? 3 MR. ADAMS: Well, actually -- 4 MS. O'GARA: I hate to say. 5 MR. ADAMS: I'm not quite sure how to 6 handle this, but we filed the petition 7 essentially because there were certain items 8 that came to our attention with respect to the 9 amount and percentage that some of these 10 investors were going to be involved in in this 11 particular transaction. And as regulators we 12 obviously didn't want to get into a situation 13 where we were literally investigating persons 14 whose investment as a limited partner in this 15 transaction is so small that it really doesn't 16 bear a relationship sufficient under the 17 statute to cause that particular investor to 18 have to be qualified even though they are 19 technically financial sources as you have so 20 ruled. 21 So we felt that this petition would 22 address that issue and would capture those 23 investors who, by the size of their investment, 24 really did bear that relationship to the casino 25 proposal, that would require them to have to 26 ITEM NO. 10 1 qualify unless they fall into some other 2 potential category. And that may -- we may be 3 back before you in some other form to address 4 that. For example, there are a lot of state 5 pension funds that are involved in this 6 particular transaction, and they may qualify 7 for some waiver or some determination that they 8 wouldn't even have to qualify as financial 9 sources in that situation. 10 But for the time being, we're just 11 addressing the way we did in the petition those 12 entities and institutional investors or 13 individuals that we felt should have to come in 14 and actually have to be qualified as a 15 financial source. 16 And I'd be happy to answer any questions 17 you may have. 18 CHAIR KASSEKERT: Thank you. 19 Let me ask. Does anyone have any 20 questions from the Division before -- 21 Commissioner Epps? 22 COMMISSIONER EPPS: I'll wait until 23 everyone -- 24 CHAIR KASSEKERT: Okay. Mr. O'Gara? 25 MR. O'GARA: I was going to say, you 27 ITEM NO. 10 1 have my report. I love it. 2 (Laughter.) 3 MR. O'GARA: I think what Mr. Adams was 4 looking at was a number of investors, and I 5 think it's easier if we start by understanding 6 what we mean by "investors." 7 Hamlet Holdings, which is what's going 8 to acquire Harrah's, is a constituent of two 9 large funds, Apollo VI and TPG V. That's who's 10 making the equity investment. They don't make 11 it directly. The fund doesn't just show up of 12 making an investment. It makes it through fund 13 lists. I understand is what they are calling 14 it. A number of subfunds. Why? Because under 15 these agreements, certain of these entities are 16 foreign and for both EU and US tax reasons, 17 they move through a different type if entity to 18 make the investment. They are called 19 alternative investment vehicles or AIVs. So I 20 believe when we're done, there's maybe -- in 21 addition to that, the total equity investment 22 if it's between 6 and $7 billion does not come 23 entirely from the funds. The funds then have 24 co-invest entities. They create a creature 25 right next to themselves, which is a co-invest 28 ITEM NO. 10 1 fund. And that, in fact, is probably and in 2 the large measure the same investors who are in 3 the fund but who -- who look at this particular 4 transaction and say they want to invest beyond 5 the amount they commit to the fund. 6 When they raise the fund money, they may 7 set out to raise, five, six, seven, eight, 8 nine, ten or however many billion dollars. And 9 a certain portion of that money is coming to 10 the Harrah's. Someone like CALPERS, who is a 11 classic example of this, says our total 12 commitment to the fund is 800,000 million. Our 13 share here would be, you know, 12 million. We 14 want 30 million worth of this deal. So they 15 come in as a co-investor also as a co-invest 16 fund for another $18 million. Likewise other 17 private equity firms will come in and make the 18 co-invest to make up -- to tally the equity. 19 In designing Hamlet, because we're two 20 separate funds, there was one kind of cardinal 21 rule there we want to follow, which was no one 22 could wind up with a derivative, diluted 23 interest of Harrah's Entertainment of more than 24 five percent. So if you have Apollo, and you 25 have if TPG, and you have the co-invest, how to 29 ITEM NO. 10 1 do that? What you do is you hire an 2 independent company, which is Pricewaterhouse 3 Coopers, who are the only people who see all 4 the co-invest and all the invest agreements. 5 When they come in, it says, CALPERS signs up, 6 and I want 140 million. The return goes back 7 and says, your investment is approved for $31 8 million. That's because it pulled the trigger 9 that would have got them over a certain 10 percentage. There's an internal control built 11 into Hamlet to do that, and there's an internal 12 control separate from the investment managers 13 for the entities companies. 14 So that's where these people come from, 15 the 700 investors. Who are they? By and large 16 they are the people who have invested in other 17 funds, either TPG Capital funds or Apollo 18 funds. When Apollo I and TPG I started, there 19 were certain people invested in this two or 20 more people. The same people come back and 21 invest in all the funds. They are pension 22 funds, trusts, foreign investments interests, 23 which could be either government interests or 24 investors on behalf of state industries or big 25 companies overseas. And in some cases, high 30 ITEM NO. 10 1 network individuals. But they are individuals, 2 in a sense, through foundations or through 3 trusts. In some cases the investors are the 4 same. They invest in, whether it be TPG or 5 Apollo or Blackstone and invest across the 6 board from all of them. A remarkable amount of 7 this money comes from what we call pension fund 8 money, which is state or state pension funds or 9 federal pension funds. 10 And these people then, as Mr. Adams 11 said, they are the limited partners. What they 12 do is, they put their money in. And when their 13 money comes in, under the investment agreements 14 that they have, you sign an agreement and, in 15 essence, it says I will pay you a fee for 16 managing your money. For managing the money in 17 the investments. You'll make the investments. 18 And you put your money in as they make them. 19 They make a call for up to your subscription 20 amount. And they have absolute control over 21 that. That absolute control is invested in 22 either Apollo Management or TPG V, part of TPG 23 management. In turn, those management 24 companies are controlled by, in this case, five 25 people. No one else has a say in them. There 31 ITEM NO. 10 1 are five people. Coulter and Bonderman on the 2 TPG side. Black, Mark Rowan. And -- there's 3 one other. 4 MR. ADAMS: Mr. Harris. 5 MR. O'GARA: Yeah. Joshua Harris. They 6 are the three. Overwhelmingly Black and 7 Apollo. And that's economic. 8 In this case, those shares that the 9 funds are getting that they have absolute 10 control over don't have any votes. They are 11 nonvoting shares. The voting shares are going 12 to a separate company, which is Rowan, Harris, 13 and Black and Bonderman and Coulter. And so 14 those people have the absolute control of their 15 votes. They have the absolute control over the 16 investment, the economic investment. That is 17 the main gain these people can make, is when 18 the investment is disposed of or distribution 19 of some kind of cash. Then it goes through 20 them and out to the limiting partners. So the 21 rights that these limited partners have are 22 somewhat, you know, in the cosmic sense of it, 23 it's equity, but it's a derivative equity. 24 They don't have any direct ownership or 25 beneficial ownership of the securities. They 32 ITEM NO. 10 1 only have a right to the economics of it, in 2 the economic gain. So when we take them and go 3 to a two percent, by aggravating them across 4 the board, I think it's very reasonable to say 5 that -- and especially with Harrah's which has, 6 you know, four casinos here but a multitude 7 elsewhere -- to say that that economics that 8 goes into this otherwise managed by qualified 9 people enterprise, which is only a portfolio 10 company, at the same time realizing they don't 11 run Harrah's, but they manage a whole lot of 12 other investments. It's reasonable to say that 13 they don't have any relationship, or very 14 tenuous relationship to any, you know, casino 15 project here in New Jersey. 16 And I'd urge you to adopt the 17 resolution, which Mr. Adams and I will had the 18 privilege to see. 19 CHAIR KASSEKERT: Thank you. 20 Commissioners Epps? 21 COMMISSIONER EPPS: As I began to 22 prepare for this agenda item, I had to think 23 long and hard to begin to understand how we 24 handle these things because it seems to be 25 rather novel, certainly in New Jersey and in 33 ITEM NO. 10 1 the gaming industry as a whole. That what you 2 get is a private equity company who generally 3 says we're a private equity because we don't 4 want to have to be looked at, who comes to an 5 industry that's heavily regulated and says, 6 it's okay for you to look at us, which is 7 novel. 8 But then we have to figure out a way to 9 make it manageable because it's almost -- it 10 could consume us as a regulatory agency in just 11 one transaction. And if we got two or three of 12 them, you know, it would be tremendously 13 difficult. So I appreciate the analysis that 14 the Division went through, and I think that the 15 two percent number is fair, particularly on a 16 $6 billion transaction. Two percent of $6 17 billion is still a big number. I think it's 18 something like $120 million worth of 19 investment. So he capture the group of people 20 who are investing at 120 million and above. 21 That's a big group of people. 22 But the one thing that I had to go back 23 and forth with, I think I have a comfort level 24 with, but I just want to put it out there, is 25 that the discussion you just went through, Mr. 34 ITEM NO. 10 1 O'Gara, with voting shares and control versus 2 source of the funds. 3 Now, I understand that the people who 4 put their money in, once they put it in, have 5 no control over how and when it's invested and 6 where it goes. But the reality of the 7 situation is they still are the people who have 8 put the money in. So you -- although I have a 9 comfort level, I guess what I'm saying is you 10 don't get to be a bad person and put money in a 11 fund and get away with it -- I mean, and not 12 get looked at because you don't control where 13 the money goes. But I also understand that 14 companies of this level do their own due 15 diligence to determine who they are doing 16 business with because there's a risk to doing 17 business with bad people. So at that two 18 percent level, I think I'm comfortable that we 19 capture the group that we need to capture with 20 respect to even the source of where that money 21 is -- those funds are coming from. 22 MR. O'GARA: If I can, Commissioner 23 Epps, what, in fact, they do -- and the 24 Division has -- when you invest in these 25 private equity funds, you do a subscription 35 ITEM NO. 10 1 agreement. With it there's also a set of 2 representations and warranties. They involve 3 disclosure of information about your source of 4 funds and what you do with it. They also 5 involve some very technical things about that 6 you're not an investment company and with 7 respect to ARISA, if you're a pension fund, 8 what rights you have to invest. 9 The disclosure is, I think it's fair to 10 say, more elaborate than the disclosure you get 11 oftentimes from people, nongaming casino 12 services people, not a financial disclosure but 13 source of funds, who's involved and who the 14 people are. 15 And in the case of foreign investors, 16 you have to make certain representations and 17 execute certain warranties with respect to the 18 tax treatment and the reporting and how all the 19 money goes. None of this money that comes from 20 overseas kind of slides in here. It all comes 21 through banks. It's noted. It's recorded. 22 And, in fact, the tax consequences, which 23 everyone debates here now in this country, you 24 know, have to be for US purposes, each investor 25 realizes a gain on the investment, hopefully, 36 ITEM NO. 10 1 when it's sold. So all of that is kept. And 2 that's why some of them come through what's 3 called blocker entities is because with 4 treaties we have with certain EU countries, if 5 they come that way, the tax falls in one 6 country instead of the United States. 7 So there's massive disclosure to them. 8 And that they, if fact, do a level of due 9 diligence, as you can imagine, because some of 10 the things they invest in in addition to gaming 11 include, you know, they're in defense 12 industries and, in fact, have large positions 13 in them. And there are clearances involved for 14 the people and with respect to the investors. 15 So there is -- there is an internal 16 diligence procedure. And, in fact, as I said, 17 an overwhelming number are repeat investors who 18 have been involved and went through the initial 19 diligence when they went through the 20 investment. 21 COMMISSIONER EPPS: And, as I was 22 saying, having gone through that analysis, I 23 reached a comfort level. 24 But just one other question. I want to 25 be certain that if -- if you do a comparison, 37 ITEM NO. 10 1 if this were a publicly traded company, the 2 group that we're going to get in this proposal 3 is the same that -- I mean, the group that 4 we're going to waive is the same as who might 5 be waived if this were a public traded. 6 MS. O'GARA: It's a lesser. It's a 7 lesser. Public -- I can buy up to 4.99 percent 8 of Harrah's, and you will never know. At this 9 threshold, the difference with private 10 equities, do you know who every investor is 11 because we even, in fact, disclose each 12 investor and co-investor. Because you're 13 getting people at two percent threshold. It's 14 as if the 13D or the threshold for a publicly 15 trading company were two percent rather than 16 five percent. Exactly. 17 And the difference being that with 18 respect to what they have, it's a little bit 19 different because there's no control with it. 20 Hence, the economic is a gain economic. And 21 the second is that the -- the people when the 22 investment is made, it's a rather stable 23 investment. One does not see these interests 24 inside of -- at least in these funds, although 25 there may be some that are higher with 38 ITEM NO. 10 1 transfer -- there's very limited rights of 2 withdrawal. And, in fact, these units don't 3 move a whole lot. 4 And one other point I could make, I 5 think would help you, Commissioners, is that 6 this is with regard to the economics coming in. 7 What you've seen and what we've shown you and 8 what's now publicly disclosing, which is the 9 sale of a part of Apollo to CALPERS and the Abu 10 Dhabi Investment Authority, that had nothing to 11 do with this. They didn't buy into Harrah's or 12 anything. They bought 20 percent of the 20 13 percent that the economic partners of Apollo 14 would make over all their investments when and 15 if they realize it. So they're not limited 16 partners in that sense. They're limited 17 partners in what's called the carried interest. 18 COMMISSIONER EPPS: The stratosphere. 19 MR. O'GARA: Yeah. That's after it's 20 sold, if they make up a million, 200 million of 21 that will wind up split up among those 22 entities. And, likewise, they were investors 23 in these funds who then became investors in 24 Apollo. One could cynically say in an attempt 25 to recapture the 20 percent. 39 ITEM NO. 10 1 COMMISSIONER EPPS: They liked it so 2 much, they bought it. 3 MR. O'GARA: Well, they bought -- what 4 they bought was very different. They didn't 5 sell anything a whole lot different than what 6 they sell here. They sold no voting role and 7 no right of disclosures. The investors are not 8 told what the activities of Apollo are. They 9 just get a check when, if, and as a check is 10 realized. 11 COMMISSIONER EPPS: I'll bet. If it's 12 okay, Chair, I will move that. 13 CHAIR KASSEKERT: Let me ask, anybody 14 have any other questions? 15 COMMISSIONER SOMMELING: No questions, 16 Madame Chair. 17 CHAIR KASSEKERT: No? Go ahead. 18 COMMISSIONER EPPS: I would move we 19 adopt the draft resolution and grant the relief 20 requested in the petition to the extent set 21 forth and subject to the conditions therein. 22 VICE CHAIR FEDORKO: Second. 23 CHAIR KASSEKERT: Is there a second? 24 VICE CHAIR FEDORKO: Second. 25 CHAIR KASSEKERT: Motion is made and 40 ITEM NO. 11 1 seconded. This is a roll call vote. 2 MR. NANCE: Commissioner Sommeling? 3 COMMISSIONER SOMMELING: Yes. 4 MR. NANCE: Commissioner Epps? 5 COMMISSIONER EPPS: Yes. 6 MR. NANCE: Commissioner Frulio? 7 COMMISSIONER FRULIO: Yes. 8 MR. NANCE: Vice Chair Fedorko? 9 VICE CHAIR FEDORKO: Yes. 10 MR. NANCE: Chair Kassekert? 11 CHAIR KASSEKERT: Yes. 12 MR. NANCE: The record will reflect that 13 the motion is unanimous. 14 CHAIR KASSEKERT: Let me just on the 15 behalf of the Commission thank both Jack and 16 Mary for the time that they put into this 17 effort. We know that this is a new challenge 18 that we're facing as we move forward with the 19 infusion of private equity funds into the 20 gaming world, and we really appreciate your 21 efforts. 22 Thank you. 23 MR. ADAMS: Thank you. 24 MR. NANCE: Item No. 11, amended 25 petition of Harrah's Operating Company, Inc., 41 ITEM NO. 11 1 Marina Associates, Atlantic City Showboat, 2 Inc., Bally's Park Place, Inc., and Boardwalk 3 Regency Corp. requesting permission for John W. 4 Baker to perform the duties and exercise the 5 powers of Vice President for Procurement and 6 Enterprise Effectiveness for HOC pending 7 plenary qualification. 8 Miss Frank? 9 MS. FRANK: Good morning, Chair and 10 Commissioners. 11 A draft resolution on Mr. Baker's 12 temporary qualification has been shared with 13 the parties. 14 Miss Wosnack is here for Harrah's, and 15 Mr. Adams is pinch hitting for Miss Turi. 16 MS. WOSNACK: Good morning. Karen 17 Wosnack on behalf of Harrah's. 18 We have nothing else to add except to 19 ask that you adopt the resolution as drafted. 20 CHAIR KASSEKERT: Thank you. 21 MR. ADAMS: I'll second that. 22 CHAIR KASSEKERT: Very good. 23 Any questions? 24 COMMISSIONER SOMMELING: No question, 25 Madame Chair. 42 ITEM NO. 11 1 COMMISSIONER FRULIO: Move to adopt the 2 draft resolution and authorize John W. Baker on 3 a temporary basis prior to his plenary 4 qualification to assume the duties and exercise 5 the powers of Vice President for Procurement 6 and Enterprise Effectiveness for Harrah's 7 Operating Company, Inc., subject to the 8 conditions contained in NJAC 19:43-2.7, which, 9 among other things, require that he file a 10 personal history disclosure form-MJ and NJ 11 supplement by August 16th, 2007. 12 VICE CHAIR FEDORKO: Second. 13 CHAIR KASSEKERT: Motion is made and 14 seconded. This is a roll call vote. 15 MR. NANCE: Commissioner Sommeling? 16 COMMISSIONER SOMMELING: Yes. 17 MR. NANCE: Commissioner Epps? 18 COMMISSIONER EPPS: Yes. 19 MR. NANCE: Commissioner Frulio? 20 COMMISSIONER FRULIO: Yes. 21 MR. NANCE: Vice Chair Fedorko? 22 VICE CHAIR FEDORKO: Yes. 23 MR. NANCE: Chair Kassekert? 24 CHAIR KASSEKERT: Yes. 25 MR. NANCE: The record will reflect that 43 ITEM NO. 12 1 the motion is unanimous. 2 MS. WOSNACK: Thank you very much. 3 CHAIR KASSEKERT: Thank you. 4 MR. NANCE: Item No. 12, amended 5 petition of -- excuse me. Amended petition of 6 Adamar, New Jersey, Inc., and Tropicana Casinos 7 and Resorts, requesting permission to Robert W. 8 Little to perform the duties and exercise the 9 duties and powers of the Regional Vice 10 President for the Eastern Region of TRC, 11 pending plenary qualification. 12 Miss Frank? 13 MS. FRANK: In this case a draft 14 resolution on Mr. Little's temporary 15 qualification has been shared with the parties. 16 Mr. Michael here on behalf of the 17 Tropicana Casinos and Resorts and, again, Mr. 18 Adams. 19 CHAIR KASSEKERT: Good morning, Mr. 20 Michael. 21 MR. MICHAEL: Good morning, Madame Chair 22 and Commissioners. 23 We have reviewed and received the draft 24 resolution. We have no objection to it, and we 25 respectfully ask that it be adopted. 44 ITEM NO. 12 1 CHAIR KASSEKERT: Thank you. 2 Mr. Adams? 3 MR. ADAMS: I'll second that. 4 CHAIR KASSEKERT: Any questions? 5 COMMISSIONER SOMMELING: No questions, 6 Madame Chair. 7 VICE CHAIR FEDORKO: Motion to adopt the 8 draft resolution and authorize Robert W. Little 9 on a temporary basis prior to his plenary 10 qualification to assume the duties and exercise 11 the powers for the Regional Vice President for 12 the Eastern Region for Tropicana Casinos and 13 Resorts, Incorporated, subject to the 14 conditions contained in NJAC 19:43-2.7. 15 COMMISSIONER SOMMELING: Second. 16 COMMISSIONER FRULIO: Second. 17 CHAIR KASSEKERT: Motion is made and 18 seconded. This is a roll call vote. 19 MR. NANCE: Commissioner Sommeling? 20 COMMISSIONER SOMMELING: Yes. 21 MR. NANCE: Commissioner Epps? 22 COMMISSIONER EPPS: Yes. 23 MR. NANCE: Commissioner Frulio? 24 COMMISSIONER FRULIO: Yes. 25 MR. NANCE: Vice Chair Fedorko? 45 ITEM NO. 13 1 VICE CHAIR FEDORKO: Yes. 2 MR. NANCE: Chair Kassekert? 3 CHAIR KASSEKERT: Yes. 4 MR. NANCE: The record will reflect that 5 the motion is unanimous. 6 MR. MICHAEL: Thank you very much. 7 MR. NANCE: Item No 13, proposed notice 8 of readoption of Chapter 53. 9 Miss Frank? 10 MS. FRANK: The draft notice of 11 readoption of the equal employment and business 12 opportunity regulations is before you today for 13 approval. If approved today, it will become 14 effective with its filing with the Office of 15 Administrative Law which is slated for 16 tomorrow, August 2nd. 17 CHAIR KASSEKERT: Thank you. 18 Any questions? 19 COMMISSIONER SOMMELING: No questions, 20 Madame Chair. 21 COMMISSIONER EPPS: I move that we 22 readopt for publication without amendment. 23 VICE CHAIR FEDORKO: Second. 24 CHAIR KASSEKERT: The motion has been 25 made and seconded. All in favor? 46 ITEM NO. 14 1 (Ayes.) 2 CHAIR KASSEKERT: Opposed? 3 (No response.) 4 CHAIR KASSEKERT: Motion carries. 5 MR. NANCE: Item No. 14, petition of 6 Bally's Park Place, Inc., for a waiver pursuant 7 to the provisions of NJAC 19:45-1.14A(d). 8 Mr. Kell? 9 MR. KELL: Good morning, Madame Chair, 10 Commissioners. 11 In this matter Karen Wosnack is here on 12 behalf of the Petitioner. Deputy Attorney Tim 13 Ficchi for the Division. 14 A draft resolution granting the relief 15 subject to the conditions stated therein has 16 been distributed to the parties. 17 CHAIR KASSEKERT: Thank you. 18 Miss Wosnack. 19 MS. WOSNACK: Good morning. Karen 20 Wosnack again. 21 I do have Mr. Michael May here, Vice 22 President of Table Games if you do have any 23 questions. Other than that, I have no 24 questions. 25 CHAIR KASSEKERT: Thank you. 47 ITEM NO. 15 1 Mr. Ficchi? 2 MR. FICCHI: Good morning, Chair, and 3 Commissioners, the Division would ask that the 4 resolution be adopted as drafted. 5 Thank you. 6 CHAIR KASSEKERT: Thank you. 7 Any questions? 8 COMMISSIONER SOMMELING: No questions, 9 Madame Chair. 10 Move to adopt the draft resolution and 11 grant the requested relief pursuant to the 12 condition in the resolution. 13 COMMISSIONER FRULIO: 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: Motion carries. 20 MS. WOSNACK: Thank you very much. 21 MR. FICCHI: Thank you. 22 MR. NANCE: Item No. 15, petition of 23 Atlantic City Cartoon Jackpot Progressive Trust 24 and Bally's Gaming, Inc., for permission to 25 transfer a progressive jackpot pursuant to NJAC 48 ITEM NO. 15 1 19:45-1.39(n). 2 Mr. Kell? 3 MR. KELL: Good morning, again, Madame 4 Chair, Commissioners. 5 This is Seth Briliant's item. He's out 6 sick today. I think at the counsel table it's 7 Scott -- Bryan Schroeder and Scott Mitnick. 8 And in this matter a draft resolution 9 has been circulated. Deputy Attorney General 10 Kimmel is not here today, but he did indicate 11 that he would stipulate to it. 12 CHAIR KASSEKERT: No pinch hitting 13 for Mr. Kimmel? 14 MR. ADAMS: Why not? We'll stipulate to 15 it. 16 CHAIR KASSEKERT: Gentlemen? Anything 17 to add? 18 MR. SCHROEDER: Nothing, Madame 19 Chairwoman. The petition speaks for itself, 20 and we ask that you approve it. 21 CHAIR KASSEKERT: Thank you. 22 Any questions? 23 COMMISSIONER SOMMELING: No questions, 24 Madame chair. 25 COMMISSIONER FRULIO: Move to adopt the 49 ITEM NO. 15 1 draft resolution and approve Petitioners' 2 request to transfer a progressive jackpot 3 subject to the condition in the resolution. 4 VICE CHAIR FEDORKO: Second. 5 CHAIR KASSEKERT: The motion has been 6 made and seconded. All in favor? 7 (Ayes.) 8 CHAIR KASSEKERT: Opposed? 9 (No response.) 10 CHAIR KASSEKERT: Motion carries. 11 Thank you. 12 MR. NANCE: In accordance with 13 Resolution No. 06-12-13-20, the next closed 14 session of the Commission shall be held on 15 Wednesday August 22nd, 2007, at 9:15 a.m. in 16 the Commission offices. 17 It is now time for the public 18 participation of the meeting. 19 CHAIR KASSEKERT: Is there anybody 20 anyone from the public who wishes to be heard? 21 (No response.) 22 CHAIR KASSEKERT: Seeing no one, I'll 23 declare this portion of the meeting closed and 24 entertain a motion to adjourn. 25 COMMISSIONER SOMMELING: Motion to 50 1 adjourn. 2 VICE CHAIR FEDORKO: Second. 3 CHAIR KASSEKERT: The motion has been 4 made and seconded. All in favor? 5 (Ayes.) 6 CHAIR KASSEKERT: Opposed? 7 (No response.) 8 CHAIR KASSEKERT: Motion carries. 9 Thank you. 10 (Public Meeting 07-08-01 was adjourned 11 at 11:10 a.m.) 12 13 14 15 16 17 18 19 20 21 22 23 24 25 51 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: August 6, 2007 24 My Commission Expires on July 10, 2009 25 ID No 2062871