1 1 STATE OF NEW JERSEY 2 CASINO CONTROL COMMISSION 3 - - - - - - - - - - - - - - - - - - - 4 5 PUBLIC MEETING NO. 07-09-05 6 7 - - - - - - - - - - - - - - - - - - - 8 9 Wednesday, September 5, 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 10:58 a.m. 15 16 17 Certified Court Reporter: Darlene Sillitoe 18 - - - - - - - - - - - - - - - - - - - - - - - - - - - 19 20 ATLANTIC CITY COURT REPORTING, LLC 21 CERTIFIED COURT REPORTERS AND VIDEOGRAPHERS 22 1125 ATLANTIC AVENUE, SUITE 416 23 ATLANTIC CITY, NEW JERSEY 08401 24 (609) 345-8448 www.accourtreporting.com 25 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 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 DENIS CORBETT, SENIOR COUNSEL ROBERT BARNEY, SENIOR COUNSEL 11 TERESA M. NAGENGAST, SENIOR COUNSEL SETH H. BRILIANT, SENIOR COUNSEL 12 BERNADETTE T. FRIGEN, PROGRAM SUPERVISOR CLAIRE FRANK, PROGRAM SUPERVISOR/SENIOR EEO 13 COORDINATOR 14 DIVISION OF GAMING ENFORCEMENT: 15 DEPUTY ATTORNEYS GENERAL BRIAN BISCIEGLIA, DEPUTY ATTORNEY GENERAL 16 TIMOTHY C. FICCHI, DEPUTY ATTORNEY GENERAL MARY JO FLAHERTY, DEPUTY ATTORNEY GENERAL 17 JAMES FOGARTY, DEPUTY ATTORNEY GENERAL FREDERICK J. McDONOUGH, DEPUTY ATTORNEY GENERAL 18 WENDY WAY, DEPUTY ATTORNEY GENERAL 19 20 21 22 23 24 25 3 1 A P P E A R A N C E S : 2 ITEM NO. 6 ROBERT BARNEY, SENIOR COUNSEL TIMOTHY C. FICCHI, DEPUTY ATTORNEY GENERAL 3 TAMA HUGHES, ESQ. FOR: ADAMAR OF NEW JERSEY, INC. 4 ITEM NO. 7 ROBERT BARNEY, SENIOR COUNSEL 5 TIMOTHY C. FICCHI, DEPUTY ATTORNEY GENERAL KAREN WOSNACK, ESQ. 6 FOR: HARRAH'S OPERATING COMPANIES 7 ITEM NO. 10 LEONARD J. DIGIACOMO, ASSISTANT GENERAL COUNSEL 8 MARY JO FLAHERTY, DEPUTY ATTORNEY GENERAL GUY S. MICHAEL, ESQ. 9 FOR: TROPRICANA CASINOS & RESORTS 10 ITEM NO. 11 LEONARD J. DIGIACOMO, ASSISTANT GENERAL COUNSEL 11 JAMES FOGARTY, DEPUTY ATTORNEY GENERAL GUY S. MICHAEL, ESQ. 12 FOR: GOLDMAN SACHS & COMPANY 13 ITEM NO. 12 MARY WOZNIAK, ASSISTANT GENERAL COUNSEL MARY JO FLAHERTY, DEPUTY ATTORNEY GENERAL 14 KAREN WOSNACK, ESQ. FOR: HARRAH'S OPERATING COMPANIES 15 ITEM NO. 13 CLAIRE FRANK, PROGRAM MANAGER 16 MARY JO FLAHERTY, DEPUTY ATTORNEY GENERAL KAREN WOSNACK, ESQ. 17 FOR: HARRAH'S OPERATING COMPANIES 18 19 20 21 22 23 24 25 4 1 AGENDA PUBLIC MEETING NO. 07-09-05 2 SEPTEMBER 5, 2007, 10:35 a.m. ITEM PAGE VOTE 3 1 Ratification of the minutes of 8 8 August 22, 2007 4 2 Applications for employee and casino service industry licenses 5 4 Applications for initial and/or renewal 9 9 of casino key and casino employee licenses 6 8 Applications for initial and/or renewal 9 10 of casino key and casino employe licenses 7 Qualification of Charles R. Henry in 10 10 connection with the gaming related casino 8 services industry licenses of Gaming Partners International, USA, Inc., Gaming 9 Partners International, SAS and GPI Mexicana SA De CV pursuant to NJAC 19:51-1.14B(h) 10 3 Stipulations of settlement and consent agreements: 11 a) Harry Doncell (07-0252-RC) 11 12 b) Thomas Froehlich (07-0295-RC) 11 12 12 c) Sandra L. Lovest (07-0310-EA) 11 12 d) Belinda G. Scott (a/k/a Curtis) 11 12 13 (05-0779-ER; 05-0235-NC) e) Dan S. Ostroff (07-0338-EA) 11 12 14 f) Mohammed A. Shahin (07-0343-ER) 11 12 g) Michael Helgeland (07-0333-EA) 11 12 15 4 Applications for suspension: a) Annamarie Donall (07-0505-RC) 12 adj. 16 b) Alciena E. Holley (07-0504-RC) 12 14 c) Nicholas J. Merlino, III (07-0498-RC) 12 14 17 d) Terrance T. Monroe (07-0497-RC) 12 14 (a/k/a Terrence T. Monroe) 18 5 Initial decision of application of 14 15 Worldtech Enterprise, Inc., and qualification 19 of Serge Polajenko (06-0228-VC) 6 Stipulation of settlement in State v. 15 17 20 Adamar of New Jersey, Inc., (d/b/a Tropicana Casino & Resort) 21 7 Stipulation of settlement in State v. 17 19 Marina Associates (d/b/a Harrah's Marina 22 Hotel & Casino Atlantic City) and Atlantic City Showboat, Inc. (t/a Showboat Casino Hotel) 23 (07-0327-VC) 8 Stipulation of settlement in State v. 19 20 24 Trump Marina Associates, LLC, (d/b/a Trump Marina Hotel and Casino) 07-0108-VC) 25 5 1 CONTINUED AGENDA PUBLIC MEETING NO. 07-09-05 2 SEPTEMBER 5, 2007, 10:35 a.m. ITEM PAGE VOTE 3 9 Petition of Johnson Controls, Inc., for 20 22 4 waiver of qualification of Capital Research and Management Company (PRN 1570702) 5 10 Amended petition of Tropicana Casinos & 22 25 Resorts, Inc., for an extension of the period 6 of interim casino authorization pursuant to NJSA 5:12-95.16 (PRN 1770701) 7 11 Further amended petition of Goldman, Sachs 25 28 & Co., et al, for a waiver of the 8 qualification requirement with respect to security holdings in Boyd Gaming Corporation 9 and for other relief (PRN 0300703) 12 Joint petition of Harrah's Operating 29 30 10 Company, Inc., Marina Associates, Atlantic City Showboat, Inc., Bally's Park Place, Inc., 11 and Boardwalk Regency Corp. For a waiver of the qualification requirements of an officer 12 of HOC (Skip Wilks)(PRN 2220701) 13 Consideration of the qualification of 31 32 13 Heath Daughtrey to serve as Vice President IT Services and Integration for Harrah's 14 Operating Company, Inc. 14 Proposed temporary adoption of amendments 33 36 15 to NJAC 19:40-1.2; NJAC 19:45-1.8, 1.10, 1.11, and 137B; proposed new rule: NJAC 19:46-2.1 16 et seq, (Server-Supported Slot Systems) 15 Proposed temporary adoption, publication 37 38 17 of amendments to NJAC 19:45-1.37A and 1.46 (Electronic transfer credit systems) 18 16 Petition of Tropicana Casinos & Resorts, 38 39 Inc., for a temporary casino key qualifier 19 License for Bruce J. Williams (PRN 2270703) 20 21 22 23 24 25 6 1 E X H I B I T S : 2 ITEM NO. 2 DESCRIPTION EVD 3 4 EL-1 Remand for hearings 4 license X applications 5 EL-2 Grant 8 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 07-09-05 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 Commissioners approved the August 8 22nd, 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 And Tyrone J. Floyd versus the Casino 15 Control Commission and Sands Hotel Casino. 16 Item No. 1, ratification of the minutes 17 of August 22nd, 2007, public meeting. 18 COMMISSIONER SOMMELING: Move to 19 approve. 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.) 9 ITEM NO. 2 1 CHAIR KASSEKERT: Motion carries. 2 MR. NANCE: Item No. 2, application for 3 employee and casino service industry licenses. 4 This agenda item will be entered as 5 Exhibit List 1 and 2. 6 Exhibit List 1 consists of four 7 applications for initial and/or renewal of 8 casino key and casino employee licenses. 9 The Division has objected to licensure. 10 VICE CHAIR FEDORKO: Motion to remand 11 for hearings. 12 COMMISSIONER EPPS: Second. 13 CHAIR KASSEKERT: The motion has been 14 made and seconded. All in favor? 15 (Ayes.) 16 CHAIR KASSEKERT: Opposed? 17 (No response.) 18 CHAIR KASSEKERT: Motion carries. 19 MR. NANCE: Exhibit List 2 consists of 20 eight applications for initial and/or renewal 21 of casino key and casino employee licenses. 22 Staff and the Division have recommended 23 that these licenses be granted. 24 VICE CHAIR FEDORKO: Motion to grant 25 applications. 10 ITEM NO. 2 1 COMMISSIONER EPPS: 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 MR. NANCE: For consideration is the 9 qualification of Charles R. Henry in connection 10 with the gaming related casino services 11 industry licenses of Gaming Partners, 12 International, USA, Inc., Gaming Partners 13 International, SAS, and GPI Mexicana, SA, De 14 CV, pursuant to NJAC 19:51-1.14B(h). 15 Staff and the Division have recommended 16 that this application be granted. 17 COMMISSIONER SOMMELING: Move to approve 18 the application. 19 VICE CHAIR 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: Motion carries. 11 ITEM NO. 3 1 MR. NANCE: Item No. 3, stipulation of 2 settlement and consent agreements. When I call 3 your name, please come forward, standing behind 4 the center table, spreading across the room so 5 that you may be seen: 6 Harry Doncell, Thomas Froehlich, Sandra 7 Lovest, Belinda Scott, Dan Ostroff, Mohammed 8 Shahin, and Michael Helgeland. 9 Mr. Ingis? 10 MR. INGIS: The staff has nothing to add 11 this at this time, Madame Chair. 12 CHAIR KASSEKERT: Thank you. 13 Yeah. Has everyone's whose name been 14 called come forward, please? 15 Mr. Biscieglia? 16 MR. BISCIEGLIA: Thank you, Madame Chair 17 and Commissioners. 18 The Division has nothing further and ask 19 that the stipulations be adopted as submitted. 20 Thank you. 21 CHAIR KASSEKERT: Thank you. 22 I'm going to ask that each of you state 23 your names for the record, starting with you. 24 MR. SHAHIN: Mohammed Shahin. 25 MS. SCOTT: Belinda Scott. 12 ITEM NO. 4 1 MR. HELGELAND: Michael Helgeland. 2 CHAIR KASSEKERT: Okay. We're going to 3 vote on the stipulations which you've agreed to 4 with the Division of Gaming Enforcement. 5 I'm going to ask at this point if any of 6 you wishes to be heard on your matter. You 7 don't have to say anything if you don't want 8 to. 9 Does anyone wish to be heard? 10 (No response.) 11 CHAIR KASSEKERT: Okay. 12 Any questions? 13 COMMISSIONER SOMMELING: Madame Chair, I 14 move to approve the stipulations. 15 COMMISSIONER EPPS: 16 CHAIR KASSEKERT: The motion has been 17 made and seconded. All in favor? 18 (Ayes.) 19 CHAIR KASSEKERT: Opposed? 20 (No response.) 21 CHAIR KASSEKERT: Motion carries. 22 Thank you very much for coming. Good 23 luck. 24 MR. HELGELAND: Thank you. 25 MR. NANCE: Item No. 4, application for 13 ITEM NO. 4 1 suspension. 2 Annamarie Donall has been adjourned for 3 two weeks. 4 Alciena Holley, Nicholas Merlino, and 5 Terrance Monroe. 6 Miss Frigen? 7 MS. FRIGEN: Good morning, Madame Chair 8 and Commissioners. 9 Before we hear from the Division, let me 10 inquire whether Miss Holley, Mr. Merlino or Mr. 11 Monroe are present or represented? 12 Apparently not. 13 CHAIR KASSEKERT: Mr. Biscieglia? 14 MR. BISCIEGLIA: Thank you. 15 The Division would only add that in 16 regards to Holley, Merlino, and Monroe, all 17 three are currently pending grand juries with 18 no dates set. 19 Thank you. 20 CHAIR KASSEKERT: Thank you. 21 Any questions? 22 COMMISSIONER SOMMELING: No questions. 23 I move to approve the suspension of 24 credentials with the exception of Annamarie 25 Donall. 14 ITEM NO. 5 1 VICE CHAIR FEDORKO: 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 MR. NANCE: Item No. 5, initial decision 9 of application of Worldtech Enterprise, Inc., 10 and qualification of Serge Polajenko. 11 MR. BARNEY: Good morning, Madame Chair, 12 Commissioners. 13 MR. NANCE: Mr. Barney? 14 MR. BARNEY: This is Commissioner 15 Frulio's decision, and Rick McDonough is here 16 for the Division. 17 Is Steve Smith here? 18 Is Mr. Polajenko here? Apparently not. 19 There were no objections, exceptions 20 filed in this matter. 21 CHAIR KASSEKERT: Thank you. 22 Mr. McDonough? 23 MR. McDONOUGH: Yes, good morning. 24 Obviously, we support the initial 25 decision, ask that you to affirm and adopt it, 15 ITEM NO. 6 1 deny the application, and find Mr. Polajenko 2 disqualified. 3 Thank you. 4 CHAIR KASSEKERT: Thank you. 5 Any questions? 6 COMMISSIONER SOMMELING: No questions, 7 Madame Chair. 8 VICE CHAIR FEDORKO: Motion -- 9 COMMISSIONER EPPS: Chair, I move we 10 adopt the initial decision and deny the casino 11 industry license application for Worldtech 12 Enterprises, Incorporated, and find Serge 13 Polajenko and Worldtech Enterprises, Inc., 14 disqualified and prohibited from conducting any 15 direct or indirect business with casino 16 licensees or applicants. 17 VICE CHAIR 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: Motion carries. 24 MR. McDONOUGH: Thank you. 25 MR. NANCE: Item No. 6, stipulation of 16 ITEM NO. 6 1 settlement in State versus Adamar of New 2 Jersey, Inc. 3 Mr. Barney? 4 MR. BARNEY: Good morning again, members 5 of the Commission. 6 This matter has Mr. Ficchi and Tama 7 Hughes is here for the Respondent Adamar. 8 CHAIR KASSEKERT: Thank you. 9 Mr. Ficchi? 10 MR. FICCHI: Yes. Chair, Commissioners. 11 The Division joint stipulations between 12 the parties settling this matter, all issues 13 legal and factual, and we would just request 14 that the Commission adopt this settlement in 15 its entirety. 16 Thank you. 17 CHAIR KASSEKERT: Thank you. 18 Miss Hughes? Good morning. 19 MS. HUGHES: Good morning. Tama Hughes 20 on behalf of the Tropicana. Good morning, 21 Madame Chair, Commissioners. 22 I've had an opportunity to review the 23 settlement. Obviously, it's a stipulated 24 settlement between the two parties, and we ask 25 that you approve the same. 17 ITEM NO. 7 1 CHAIR KASSEKERT: Thank you. 2 Any questions? 3 COMMISSIONER SOMMELING: No questions, 4 Madame Chair. 5 VICE CHAIR FEDORKO: Move we approve the 6 stipulation of settlement and impose a civil 7 penalty of $20,000 against Adamar of New 8 Jersey, Inc., for violation of Commission 9 regulations regarding the surveillance alarm 10 system and internal controls. 11 COMMISSIONER EPPS: 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: Motion carries. 18 Thank you. 19 MS. HUGHES: Thank you. 20 MR. NANCE: Item No. 7, stipulation of 21 settlement State versus Marina Associates and 22 Atlantic City Showboat, Inc. 23 Mr. Barney? 24 MR. BARNEY: This is a matter that was 25 proposed for stipulated settlement. Ms. 18 ITEM NO. 7 1 Wosnack is here to represent Marina and the 2 Showboat. Mr. Ficchi is here for the Division. 3 CHAIR KASSEKERT: Thank you. 4 Mr. Ficchi? 5 Ms. Wosnack? 6 MR. FICCHI: Thank you. Good morning, 7 Madame Chair, Commissioners. 8 Again, this is a stipulated settlement 9 between the parties and the Division would just 10 request that this matter be adopted by the 11 Commission in its entirety. 12 Thank you. 13 CHAIR KASSEKERT: Thank you. 14 Miss Wosnack? 15 MS. WOSNACK: Good morning. Karen 16 Wosnack on behalf of Harrah's and the various 17 entries. I would just ask that you approve the 18 stipulation of settlement as drafted. I'd be 19 happy to answer any questions if you have them. 20 CHAIR KASSEKERT: Thank you. 21 Any questions? 22 COMMISSIONER SOMMELING: No questions, 23 Madame Chair. 24 Move to approve the stipulation of 25 settlement and impose a civil penalty of 19 ITEM NO. 8 1 $10,000 against Marina Associates and a civil 2 penalty of $10,000 against Atlantic City 3 Showboat, Incorporated, for violation of 4 Commission regulations regarding off-site 5 records and slot storage. 6 COMMISSIONER EPPS: Second. 7 CHAIR KASSEKERT: The motion has been 8 made and seconded. All in favor? 9 (Ayes.) 10 CHAIR KASSEKERT: Opposed? 11 (No response.) 12 CHAIR KASSEKERT: Motion carries. 13 MS. WOSNACK: Thank you. 14 MR. FICCHI: Thank you. 15 CHAIR KASSEKERT: Thank you. 16 MR. NANCE: Item No. 8, stipulation of 17 settlement in State versus Trump Marina 18 Associates, LLC. 19 Mr. Corbett? 20 MR. CORBETT: Chair, Commissioners, in 21 this case the casino licensee admits the 22 regulatory violation and agrees to a penalty of 23 $25,000. 24 Miss Way is here for the Division. And 25 I don't see anyone here for Trump Marina. 20 ITEM NO. 9 1 CHAIR KASSEKERT: Thank you. 2 Miss Way? 3 MS. WAY: Thank you, Madame Chair. 4 We just ask that you approve the 5 stipulation of settlement. 6 CHAIR KASSEKERT: Thank you. 7 Any questions? 8 COMMISSIONER SOMMELING: No questions, 9 Madame Chair. 10 VICE CHAIR FEDORKO: Motion to approve 11 the stipulation of settlement and impose a 12 civil penalty of $25,000 against Trump Marina 13 Associates, LLC, for violation of Commission 14 regulations regarding alcoholic beverage 15 service to an underage person. 16 COMMISSIONER EPPS: 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: Motion carries. 23 Thank you. 24 MS. WAY: Thank you very much. 25 MR. NANCE: Item No. 9, petition of 21 ITEM NO. 9 1 Johnson Controls, Inc., for waiver of 2 qualification of Capital Research and 3 Management Company. 4 Miss Nagengast? 5 MS. NAGENGAST: Good morning, Chair and 6 Commissioners. 7 For your consideration is a petition 8 seeking waiver of qualification. Counsel for 9 Johnson Controls has indicated they will not be 10 here and have asked that you rely on the papers 11 they filed. 12 Rick McDonough is here on behalf of the 13 Division. 14 CHAIR KASSEKERT: Thank you. 15 Mr. McDonough? 16 MR. McDONOUGH: I'll rely on my papers, 17 as well. 18 Thank you. 19 CHAIR KASSEKERT: Very good. 20 Any questions? 21 COMMISSIONER SOMMELING: No questions, 22 Madame Chair. 23 COMMISSIONER EPPS: Madame Chair, I move 24 we grant the petition of Johnson Controls, 25 Incorporated, and waive of the qualification of 22 ITEM NO. 10 1 Capital Research and Management Company 2 pursuant to NJAC 19:51-1.14(b)(3) and NJSA 3 5:12-85(f) based on its status as an 4 institutional investor as defined by NJSA 5 5:12-27.1. 6 COMMISSIONER SOMMELING: Second. 7 VICE CHAIR FEDORKO: Second. 8 CHAIR KASSEKERT: The motion has been 9 made and seconded. All in favor? 10 (Ayes.) 11 CHAIR KASSEKERT: Opposed? 12 (No response.) 13 CHAIR KASSEKERT: Motion carries. 14 MR. McDONOUGH: Thank you. 15 CHAIR KASSEKERT: Thank you. 16 MR. NANCE: Item No. 10, amended 17 petition of Tropicana Casinos and Resorts, 18 Inc., for an extension of the period of interim 19 casino authorization pursuant to NJSA 20 5:12-95.16. 21 Mr. DiGiacomo? 22 MR. DiGIACOMO: Chair, Commissioners, 23 good morning. 24 Mr. Guy Michael on behalf of the 25 petitioners and Mary Jo Flaherty for the 23 ITEM NO. 10 1 Division. 2 I've shared with counsel for the parties 3 a draft of the resolution. I believe they're 4 prepared to consent to its form and entry 5 subject to, I think Miss Flaherty updated the 6 Commission on some matters on the record. 7 CHAIR KASSEKERT: Thank you. 8 Mr. Michael, you want to proceed? 9 MR. MICHAEL: Yes, Madame Chair, members 10 of the Commissioners. 11 As Mr. DiGiacomo has referenced, we have 12 seen the draft resolution, we have no objection 13 to it as its drafted and will consent to its 14 entity. Because of the coincidence of the 15 timing of the renewal of the Adamar license and 16 the ICA, Tropicana it's administratively 17 convenient for an extension so that they can 18 both be handled together, and that's the 19 purpose behind this. 20 CHAIR KASSEKERT: Thank you. 21 Miss Flaherty? 22 MS. FLAHERTY: Yes, Chair and 23 Commissioners. 24 The Division has submitted its report 25 dated July 26. In our view it would be best to 24 ITEM NO. 10 1 consolidate both matters, the renewal and the 2 plenary qualification of the new Tropicana 3 holding company on a consolidated proceeding. 4 We would note that we are in receipt of 5 all necessary entity and qualifier forms, one 6 as recently as yesterday, with respect to the 7 new chief financial officer. We see no need at 8 this time to declare the ICA Trust operative. 9 And, lastly, we will be able to report to you 10 that that you will have sufficient time to 11 review the plenary qualification, hold a 12 hearing, and to render your decision. 13 And we would, therefore, recommend to 14 the Commission that you grant the extension 15 through January 2nd, 2008. 16 Thank you. 17 CHAIR KASSEKERT: Thank you. 18 Any questions. 19 COMMISSIONER SOMMELING: No questions, 20 Madame Chair. 21 VICE CHAIR FEDORKO: Motion to adopt the 22 draft resolution and grant the relief requested 23 in the amended petition to the extent set forth 24 and subject to the conditions in the 25 resolution. 25 ITEM NO. 11 1 COMMISSIONER SOMMELING: Second. 2 CHAIR KASSEKERT: Motion has been made 3 and seconded. This is a roll call vote. 4 MR. NANCE: Commissioner Sommeling? 5 COMMISSIONER SOMMELING: Yes. 6 MR. NANCE: Commissioner Epps? 7 COMMISSIONER EPPS: 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 MR. MICHAEL: Thank you. 15 MR. NANCE: Item No. 11, further amended 16 petition of Goldman, Sachs & Company, et al., 17 for a waiver of qualification requirement with 18 respect to security holdings in Boyd Gaming 19 Corporation and for other relief. 20 Mr. DiGiacomo? 21 MR. DiGIACOMO: Chair, Commissioners. 22 Guy Michael for the petitioners. Mr. James 23 Fogarty for the Division of Gaming Enforcement. 24 I've shared a copy of the draft 25 resolution with counsel. Again, I believe 26 ITEM NO. 11 1 they're prepared to consent to its form and 2 entry. 3 CHAIR KASSEKERT: Thank you. 4 Mr. Michael? 5 MR. MICHAEL: Yes. Again, Mr. DiGiacomo 6 is correct. We have seen the draft resolution. 7 And let me take a moment to thank Mr. 8 DiGiacomo and the staff here. This has been a 9 kind of convoluted matter, and we appreciate 10 and thank him for the time that he's taken. In 11 fact, got me the draft resolution at 8:00 last 12 night, so a lot of hard work done, and we 13 appreciate it. 14 As we understand the draft resolution, 15 the Goldman Sachs entities as a whole, if they 16 exceed five percent, then the noninstitutional 17 investor segment of that holding would be 18 limited to the holding of the 2.5 percent. If 19 as a whole there's less than five percent, then 20 there would be no limitation. We would be able 21 to come back for relief from the 2.5 percent 22 limitation to the Chair if the majority of the 23 holdings of the total Goldman Sachs entity 24 were-- were below -- the majority of it were 25 held by institutional investors. We would have 27 ITEM NO. 11 1 to come back for the full Commission for the 2 relief from the 2.5 percent if the majority of 3 the holdings were intended to be the 4 noninstitutional investors. That's my 5 understanding. 6 CHAIR KASSEKERT: Thank you. 7 Any questions for Mr. Michael? 8 COMMISSIONER SOMMELING: No questions, 9 Madame Chair. 10 CHAIR KASSEKERT: Mr. Fogarty? 11 MR. FOGARTY: Yes. I have also been 12 provided and have reviewed the draft resolution 13 which gives the -- which recommends the giving 14 of a section 85(f) waiver to Goldman Sachs 15 subject to the conditions therein noted. And 16 we have no objection to the entry of that 17 draft. 18 CHAIR KASSEKERT: Thank you. 19 Let me ask if there are any questions? 20 I think Commissioners Epps -- just a 21 second. 22 COMMISSIONER SOMMELING: No questions, 23 Madame Chair. 24 (Conferring.) 25 COMMISSIONER EPPS: It's okay. I had 28 ITEM NO. 11 1 the wrong one. 2 CHAIR KASSEKERT: Okay. 3 Any questions? 4 COMMISSIONER SOMMELING: No questions, 5 Madame Chair. 6 CHAIR KASSEKERT: Let me ask for a 7 motion. Commissioner Fedorko? 8 VICE CHAIR FEDORKO: Motion to adopt the 9 draft resolution and grant the relief requested 10 in the further amended petition to the extent 11 set forth and subject to the conditions in the 12 resolution. 13 COMMISSIONER SOMMELING: Second. 14 CHAIR KASSEKERT: Motion is made and 15 second. This is a roll call vote. 16 MR. NANCE: Commissioner Sommeling? 17 COMMISSIONER SOMMELING: Yes. 18 MR. NANCE: Commissioner Epps? 19 COMMISSIONER EPPS: Yes. 20 MR. NANCE: Vice Chair Fedorko? 21 VICE CHAIR FEDORKO: Yes. 22 MR. NANCE: Chair Kassekert? 23 CHAIR KASSEKERT: Yes. 24 MR. NANCE: The record are will reflect 25 that the motion is unanimous. 29 ITEM NO. 12 1 MR. MICHAEL: Thank you all very much. 2 MR. DiGIACOMO: Thank you, 3 Commissioners. 4 MR. FOGARTY: Thank you. 5 MR. NANCE: Item No. 12, joint petition 6 of Harrah's Operating Company, Inc., Marina 7 Associates, Atlantic City Showboat, Inc., 8 Bally's Park Place, Inc., and Boardwalk Regency 9 Corp. for a waiver of qualification 10 requirements for an officer of HOC. 11 Miss Wozniak? 12 MS. WOZNIAK: Good morning, Chair, 13 Commissioners. 14 Miss Wosnack is here on behalf of the 15 Petitioners and Miss Flaherty for the Division. 16 And I have shared a draft resolution 17 with both parties. 18 CHAIR KASSEKERT: Thank you. 19 Miss Wosnack? 20 MS. WOSNACK: Good morning, again. 21 We've reviewed the draft resolution and 22 have no objection to its entity as written. 23 CHAIR KASSEKERT: Thank you. 24 Miss Flaherty? 25 MS. FLAHERTY: Yes. Madame Chair and 30 ITEM NO. 12 1 Commissioners, we agree with the waiver of the 2 qualification in that the individuals are not 3 significantly involved in the operations of the 4 casino licensees. 5 CHAIR KASSEKERT: Thank you. 6 Any questions? 7 COMMISSIONER SOMMELING: No questions, 8 Madame Chair. 9 COMMISSIONER EPPS: Madame Chair, I move 10 that we adopt the draft resolution and waive 11 the qualification requirement pursuant to NJSA 12 5:12-85d(1) as to Skip Wilks in his capacity as 13 Vice President of Enterprise Security for 14 Harrah's Operating Company, Incorporated, 15 subject to the condition stated in the 16 resolution. 17 COMMISSIONER SOMMELING: Second. 18 CHAIR KASSEKERT: Motion is made and 19 seconded. This is a roll call vote. 20 MR. NANCE: Commissioner Sommeling? 21 COMMISSIONER SOMMELING: Yes. 22 MR. NANCE: Commissioner Epps? 23 COMMISSIONER EPPS: Yes. 24 MR. NANCE: Vice Chair Fedorko? 25 VICE CHAIR FEDORKO: Yes. 31 ITEM NO. 13 1 MR. NANCE: Chair Kassekert? 2 CHAIR KASSEKERT: Yes. 3 MR. NANCE: The record will reflect that 4 the motion is unanimous. 5 CHAIR KASSEKERT: Thank you. 6 MS. WOSNACK: Thank you. 7 MR. NANCE: Item No. 13, consideration 8 of the qualification of Heath Daughtrey to 9 serve as Vice President of IT Services and 10 Integration for Harrah's Operating Company, 11 Inc. 12 Miss Frank? 13 MS. FRANK: Good morning, Chair and 14 Commissioners. 15 Heath Daughtrey was temporarily 16 qualified by the Commission on December 13th of 17 2006. A draft resolution on his plenary 18 qualification has been distributed to the 19 parties. 20 Miss Wosnack is here for Harrah's and 21 Miss Flaherty for the Division. 22 MS. WOSNACK: Good morning again. 23 CHAIR KASSEKERT: Good morning. 24 MS. WOSNACK: We have no objection to 25 the draft resolution as written. I'll be happy 32 ITEM NO. 13 1 to answer any questions if you have them. 2 CHAIR KASSEKERT: Thank you. 3 Yes. Miss Flaherty? 4 MS. FLAHERTY: Chair and Commissioners, 5 we submitted a report August 2nd with regard to 6 Mr. Daughtrey's required qualification, and we 7 have no objection to his qualification. 8 CHAIR KASSEKERT: Thank you. 9 Any questions? 10 COMMISSIONER SOMMELING: Madame Chair, 11 move to find Heath Daughtrey qualified to serve 12 as Vice President of IT Services and 13 Integration for Harrah's Operating Company, 14 Incorporated. 15 VICE CHAIR FEDORKO: Second. 16 CHAIR KASSEKERT: Motion is made and 17 seconded. This is a roll call vote. 18 MR. NANCE: Commissioner Sommeling? 19 COMMISSIONER SOMMELING: Yes. 20 MR. NANCE: Commissioner Epps? 21 COMMISSIONER EPPS: Yes. 22 MR. NANCE: Vice Chair Fedorko? 23 VICE CHAIR FEDORKO: Yes. 24 MR. NANCE: Chair Kassekert? 25 CHAIR KASSEKERT: Yes. 33 ITEM NO. 14 1 MR. NANCE: The record will reflect that 2 the motion is unanimous. 3 CHAIR KASSEKERT: Thank you. 4 MS. WOSNACK: Thank you very much. 5 MS. FRANK: Thank you. 6 MR. NANCE: Item No. 14, proposed 7 temporary adoption of amendments and proposed 8 new rule concerning server-supported slot 9 systems. 10 Mr. Briliant? 11 MR. BRILIANT: Good morning, Madame 12 Chair and Commissioners. 13 This proposal would permit the user of a 14 server-supported slot system. And as noted in 15 our memorandum to you, we are recommending 16 temporary adoption only at this time, 17 publication to incur at some later date. 18 CHAIR KASSEKERT: Thank you. 19 Let me just say that I'm pleased today 20 that the Commission is authorizing the 21 temporary adoption of these regulations which 22 would permit server-supported slot machines 23 systems. And this action will permit one or 24 more tests of service-supported slot systems 25 after October 21st, 2007. 34 ITEM NO. 14 1 A server-supported slot machine would be 2 securely connected to a computer server with 3 the capability to download new games to that 4 machine and to change the parameter of those 5 games within approved limits as business 6 conditions dictate. These game changes could 7 be made much faster than is now the case which 8 currently requires that each slot machine be 9 opened manually by the Division of Gaming 10 Enforcement and an agent to be present at that 11 time. We hope that the server-supported slot 12 systems will provide our casino licensees with 13 flexibility to make necessary changes on their 14 slot floors and the ability to do so 15 efficiently and quickly. These systems would 16 also make it easier and simpler for regulators 17 to approve and track these changes. 18 In drafting these regulations, the 19 Commission has also kept in mind the concerns 20 and needs of our patrons. For example, no 21 feature or rules of a server-supported slot 22 machine game may be changed while the slot 23 machine is still in play. A game must remain 24 inactive for at least four minutes before any 25 changes can be made, and while the change is 35 ITEM NO. 14 1 occurring, the slot machine should be disabled 2 for at least 60 seconds. And during that time, 3 notice of the change must appear on the slot 4 machine's monitor. 5 As noted in the summary of the proposal, 6 the present regulatory amendments for 7 server-supported slot systems do not address 8 server-based slot systems which we intend to 9 deal with in the near future. In a 10 server-based system, the outcome of each round 11 of play is determined by the server rather than 12 by the individual slot machines, and this is 13 the opposite of what's being proposed at this 14 time. 15 This proposal has evolved over a period 16 of several months, and it is the result of 17 various discussions with the casino licensees, 18 the slot manufacturers, and I want to thank 19 everyone who has participated and commented on 20 upon our earlier drafts. I also want to 21 especially thank Matt Boxer, Diane Legreide, 22 and Robert Shane of the governor's office, for 23 her assistance in coordinating and expediting 24 this matter as well as the Commission staffers, 25 the Division staffers who contributed much time 36 ITEM NO. 14 1 and effort. Jim Fehon and members of his 2 Compliance Divison as well as our general 3 counsel, Dianna Fauntleroy, and staff attorneys 4 David Missimer, Denis Kell, and Seth Briliant. 5 And it's the Commissioners' hope that 6 these regulations will permit our casino 7 licensees to use the very latest technology to 8 better serve their patrons while continuing to 9 maintain the necessary security and integrity 10 of slot machine operations that the Casino 11 Control Act and the Commission require. 12 We look forward to tests of these new 13 innovative slot systems, and we hope that they 14 prove to be more useful, more efficient, and 15 provide long-term savings for our casino 16 licensees. 17 And let me ask if any members of the 18 Commission have any questions for Mr. Briliant 19 at this time. 20 COMMISSIONER SOMMELING: No questions, 21 Madame Chair. 22 Move to approve for temporary adoption. 23 VICE CHAIR FEDORKO: Second. 24 CHAIR KASSEKERT: The motion has been 25 made and seconded. All in favor? 37 ITEM NO. 15 1 (Ayes.) 2 CHAIR KASSEKERT: Opposed? 3 (No response.) 4 CHAIR KASSEKERT: Motion carries. 5 Thank you. 6 MR. NANCE: Item No. 15, proposed 7 temporary adoption and publication of 8 amendments concerning the electronic transfers 9 credit systems. 10 Mr. Briliant? 11 MR. BRILIANT: Madame Chair, since the 12 Commission first approved electronic transfer 13 credit systems in 1996, the Commission and the 14 licensees that utilize such systems have 15 refined a number of the procedures used in 16 connection with those systems. Primarily 17 through Commission approval of revised internal 18 controls. 19 This proposal before you would update 20 the existing electronic transfer credit system 21 regulations by codifying and clarifying these 22 various refinements and improvements. 23 CHAIR KASSEKERT: Thank you. 24 Are there any questions for Mr. 25 Briliant? 38 ITEM NO. 16 1 COMMISSIONER SOMMELING: No questions, 2 Madame Chair. 3 VICE CHAIR FEDORKO: Motion to approve. 4 COMMISSIONER SOMMELING: Second. 5 CHAIR KASSEKERT: For publication and 6 temporary adoption. 7 COMMISSIONER SOMMELING: Second. 8 CHAIR KASSEKERT: The motion has been 9 made and seconded. All in favor? 10 (Ayes.) 11 CHAIR KASSEKERT: Opposed? 12 (No response.) 13 CHAIR KASSEKERT: Motion carries. 14 MR. BRILIANT: Thank you. 15 MR. NANCE: Thank you. 16 CHAIR KASSEKERT: Thank you. 17 MR. NANCE: Item No. 16, petition of 18 Tropicana Casinos and Resorts, Inc., for a 19 temporary casino key qualifier license for 20 Bruce J. Williams has been administratively 21 removed for consideration. 22 In accordance with Resolution No. 23 06-12-13-20, the next closed session of the 24 Commission shall be held on Wednesday, 25 September 19th, 2007, at 9:15 a.m. in the 39 1 Commission offices. 2 It is now time for the public 3 participation portion of the meeting. 4 CHAIR KASSEKERT: Is there anyone from 5 the public who wishes to be heard? 6 (No response.) 7 CHAIR KASSEKERT: Seeing no one, I'll 8 declare this portion of the meeting closed and 9 entertain a motion to adjourn. 10 COMMISSIONER SOMMELING: Motion to 11 adjourn. 12 VICE CHAIR FEDORKO: Second. 13 CHAIR KASSEKERT: The motion has been 14 made and seconded. All in favor? 15 (Ayes.) 16 CHAIR KASSEKERT: Opposed? 17 (No response.) 18 CHAIR KASSEKERT: Motion carries. 19 Thank you. 20 (Public Meeting 07-09-05 was adjourned 21 at 10:59 a.m.) 22 23 24 25 40 1 2 C E R T I F I C A T E 3 4 5 I, DARLENE SILLITOE, a Certified Court 6 Reporter and Notary Public of the State of New 7 Jersey, certify that the foregoing is a true 8 and accurate transcript of the proceedings. 9 10 11 I further certify that I am neither 12 attorney, of counsel for, nor related to or 13 employed by any of the parties to the action; 14 further that I am not a relative or employee of 15 any attorney or counsel employed in this case; 16 nor am I financially interested in the action. 17 18 19 DARLENE SILLITOE CCR 20 License No XI01023 21 22 Dated: September 7, 2007 23 My Commission Expires on July 10, 2009 24 ID No 2062871 25