1 1 STATE OF NEW JERSEY 2 CASINO CONTROL COMMISSION 3 - - - - - - - - - - - - - - - - - - - 4 5 PUBLIC MEETING NO. 07-10-03 6 7 - - - - - - - - - - - - - - - - - - - 8 9 Wednesday, October 3, 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 10:30 a.m. to 10:48 a.m. 15 16 17 Certified Court Reporter: Darlene Sillitoe 18 - - - - - - - - - - - - - - - - - - - - - - - - - - - 19 20 ATLANTIC CITY COURT REPORTING, LLC 21 CERTIFIED SHORTHAND 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 RALPH G. FRULIO, COMMISSIONER WILLIAM T. SOMMELING, COMMISSIONER 5 PRESENT FOR THE CASINO CONTROL COMMISSION: 6 DARYL W. NANCE, ADMINISTRATIVE ANALYST LISA SPANGLER, PUBLICATIONS COORDINATOR 7 OFFICE OF THE GENERAL COUNSEL: 8 DIANNA W. FAUNTLEROY, GENERAL COUNSEL/EXECUTIVE SECRETARY 9 LEONARD J. DIGIACOMO, ASSISTANT GENERAL COUNSEL STEVEN M. INGIS, ASSISTANT GENERAL COUNSEL 10 DENIS CORBETT, SENIOR COUNSEL SETH H. BRILIANT, SENIOR COUNSEL 11 BERNADETTE T. FRIGEN, PROGRAM SUPERVISOR CLAIRE FRANK, PROGRAM SUPERVISOR/SENIOR EEO 12 COORDINATOR 13 DIVISION OF GAMING ENFORCEMENT: 14 DEPUTY ATTORNEYS GENERAL BRIAN BISCIEGLIA, DEPUTY ATTORNEY GENERAL 15 TIMOTHY C. FICCHI, DEPUTY ATTORNEY GENERAL JAMES FOGARTY, DEPUTY ATTORNEY GENERAL 16 R. LANE STEBBINS, DEPUTY ATTORNEY GENERAL 17 18 19 20 21 22 23 24 25 3 1 A P P E A R A N C E S : 2 ITEM NO. 4 DENIS CORBETT, SENIOR COUNSEL R. LANE STEBBINS, DEPUTY ATTORNEY GENERAL 3 FREDERICK T. CUNNINGHAM, ESQ. FOR: TRUMP MARINA ASSOCIATES, LLC 4 5 ITEM NO. 6 CLAIRE FRANK, PROGRAM MANAGER JAMES C. FOGARTY, DEPUTY ATTORNEY GENERAL 6 NICHOLAS CASIELLO, JR., ESQ. FOR: MGM MIRAGE 7 ITEM NO. 7 LEONARD J. DiGIACOMO, ASSISTANT 8 GENERAL COUNSEL JAMES C. FOGARTY, DEPUTY ATTORNEY GENERAL 9 NICHOLAS CASIELLO, JR., ESQ. FOR: INFINITY WORLD INVESTMENTS, LLC 10 ITEM NO. 9 SETH H. BRILIANT 11 R. LANE STEBBINS, DEPUTY ATTORNEY GENERAL PATRICIA M. WILD, ESQ. 12 FOR: RESORTS INTERNATIONAL HOTEL, INC. 13 14 15 16 17 18 19 20 21 22 23 24 25 4 1 AGENDA PUBLIC MEETING NO. 07-10-03 2 OCTOBER 4, 2007, 10:30 a.m. ITEM PAGE VOTE 3 1 Ratification of the minutes of 8 8 September 19, 2007 4 2 Applications for employee and casino service industry licenses: 5 25 applications for initial and/or renewal 9 9 of casino key and casino employee licenses 6 Casino service industry license 9 10 application of Ace Air Charter, Inc. 7 8 applications for initial and/or renewal 10 10 of casino key and casino employee licenses 8 Application of Andrew L. Schlesinger for 11 11 a casino key employee license and for 9 qualification as President and General Manager of the Water Club for Marina District 10 Development Company, LLC For qualification in connection with their 12 12 11 respective gaming related casino service industry licenses pursuant to NJAC 19:51-1.14B(h) 12 Ira H. Raphaelson, Scientific Game Racing, LLC Robert L. Guido, Bally GaAming, Inc. 13 3 Stipulations of settlement and consent agreements: a) Kathryn Bozil (07-0005-EA) 12 14 14 b) James L. Farber (07-0428-ER) 12 14 c) Dick H. Wong (05-0688-RC) 12 14 15 d) Myra R. Korejwo (07-0196-ER) 12 14 e) Robert L. Mauriello (05-0305-RC) 12 14 16 f) Donald Burton (07-0139-EA) 12 14 4 Stipulation of settlement in State v. 15 16 17 Trump Marina Associates, LLC (d/b/a Trump Marina Hotel Casino) (07-0162-VC) 18 5 Petitions for early reapplication: a) Connie D. Harris (07-0459-RA) 17 19 19 b) Bano Khalid (07-0461-RA) 17 20 6 Petitions and amended petition of MGM 20 MIRAGE requesting permission for the following persons to perform the duties and 21 exercise the powers of the qualifying positions for MGM MIRAGE and affiliated entities pending 22 qualification and in connection with the casino license of Marina District Development Company, LLC 23 a) Daniel J. D'Arrigo, Chief Financial 21 24 Officer and Executive Vice President of 24 MGM MIRAGE (PRN 2560712) b) Robert C. Selwood, Chief Accounting 24 25 25 Officer and Executive Vice President of MGM MIRAGE (PRN 2560713) 5 1 CONTINUED AGENDA PUBLIC MEETING NO. 07-10-03 2 OCTOBER 4, 2007, 10:30 a.m. ITEM PAGE VOTE 3 6 c) Cathryn J. Santoro, Senior Vice 25 25 President and Treasurer of MGM MIRAGE 4 and Treasurer of MAC Corp., and MIRAGE Resorts, Inc. (amended PRN 2560714) 5 7 Amended petition of Infinity World 26 30 Investments, LLC, for a temporary and 6 conditional waiver of the qualification requirement pursuant to NJSA 5:12-85d(1) with 7 respect to certain equity securities of MGM MIRAGE and for other relief (PRN 2490703) 8 8 Petition of Adamar of New Jersey, Inc., adj. et al, for relief from certain portions 9 of Resolution No. 06-11-02-02 (PRN 2050702) 9 Petition of Resorts International Hotel, 31 33 10 Inc., (d/b/a Resorts Atlantic City) for relief from a condition regarding the 11 operation of a slot booth (PRN 2430702) 12 13 14 15 16 17 18 19 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 25 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 25 (Exhibits retained by Commission.) 7 1 (Public Meeting 07-10-04 was commenced 2 at 10:30 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 September 8 19th, 2007, closed session minutes. 9 Litigation update regarding Warren 10 Lackland and Lewis M. Springer, Jr., versus the 11 State of New Jersey and the Casino Control 12 Commission; 13 Gloria Ford versus the State of New 14 Jersey, and the Casino Control Commission, et 15 al; 16 Husain versus the Casino Control 17 Commission, et al. 18 Item No. 1, ratification of the minutes 19 of September 19, 2007, public meeting. 20 COMMISSIONER SOMMELING: Move to 21 approve. 22 VICE CHAIR FEDORKO: Second. 23 CHAIR KASSEKERT: The motion has been 24 made and seconded. All in favor? 25 (Ayes.) 9 ITEM NO. 2 1 CHAIR KASSEKERT: Opposed? 2 COMMISSIONER FRULIO: Abstain. 3 CHAIR KASSEKERT: Commissioner Frulio 4 abstains. 5 Thank you. The motion carries. 6 MR. NANCE: Item No. 2, applications for 7 employee and casino service licenses. This 8 agenda item will be entered as Exhibit List 1 9 and 2. 10 Exhibit List 1 consists of 25 11 applications for initial and/or renewal of 12 casino key and casino employee licenses. 13 The Division has objected to licensure. 14 COMMISSIONER FRULIO: Motion to remand 15 for hearings. 16 VICE CHAIR 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: Motion carries. 23 MR. NANCE: For consideration is the 24 casino service industry license application for 25 Ace Air Charter, Inc. 10 ITEM NO. 2 1 The Division has objected to this 2 application. 3 COMMISSIONER FRULIO: Motion to remand 4 for hearing. 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 MR. NANCE: Exhibit List 2 consists of 13 eight application for initial and/or renewal of 14 casino key and casino employee licenses. 15 Staff and the Division have recommended 16 that these licenses be granted. 17 COMMISSIONER FRULIO: Motion to grant 18 applications. 19 VICE CHAIR FEDORKO: Second. 20 COMMISSIONER EPPS: Second. 21 CHAIR KASSEKERT: The motion has been 22 made and seconded. All in favor? 23 (Ayes.) 24 CHAIR KASSEKERT: Opposed? 25 (No response.) 11 ITEM NO. 2 1 CHAIR KASSEKERT: Motion carries. 2 MR. NANCE: For consideration is the 3 application of Andrew L. Schlesinger for a 4 casino key employee license and for 5 qualification as President and General Manager 6 of the Water Club for Marina District 7 Development Company, LLC. 8 Staff and the Division have recommended 9 that this application be granted. 10 COMMISSIONER FRULIO: Motion to grant 11 for initial and key license. 12 VICE CHAIR FEDORKO: Second. 13 CHAIR KASSEKERT: Motion has been made 14 and 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 12 ITEM NO. 3 1 the motion is unanimous. 2 For consideration are the following for 3 qualification in connection with their 4 respective gaming related casino service 5 industry licenses pursuant to NJAC 6 19:51-1.14B(h): For Ira H. Raphaelson, 7 Scientific Game Racing, LLC, and Robert L. 8 Guido, Bally Gaming, Inc. 9 Staff and the Division have recommended 10 qualification. 11 COMMISSIONER FRULIO: Motion to find Ira 12 H. Raphaelson and Robert L. Guido plenarily 13 qualified in connection with their respective 14 gaming related CSI licenses pursuant to NJAC 15 19:51-1.14B(h). 16 VICE CHAIR 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: Motion carries. 23 MR. NANCE: Item No. 3, stipulation of 24 settlement and consent agreements. When I call 25 your name, please come forward, stand behind 13 ITEM NO. 3 1 this middle table, spreading across the room so 2 that you may be seen: Kathryn Bozil, James 3 Farber, Dick Wong, Myra Korejwo, Robert 4 Mauriello, and Donald Burton. 5 CHAIR KASSEKERT: Has everyone whose 6 name been called come forward? 7 Okay. I'm going to ask that you each 8 state your name for the record, starting with 9 you, ma'am. 10 MS. BOZIL: Kathryn Bozil. 11 MR. FARBER: James L. Farber. 12 MR. WONG: Dick Wong. 13 MR. BURTON: Donald Burton. 14 CHAIR KASSEKERT: Thank you. 15 In a moment we are going to vote on the 16 stipulations which you've agreed to with the 17 Division of Gaming Enforcement. 18 I'm going to ask at this point if any of 19 you wish to be heard on your matter. You do 20 not have to say anything if you don't want to. 21 Does anyone wish to be heard? 22 MS. BOZIL: No. 23 MR. FARBER: No. 24 CHAIR KASSEKERT: Mr. Biscieglia? 25 MR. BISCIEGLIA: Good morning, Chair, 14 ITEM NO. 3 1 Commissioners. 2 CHAIR KASSEKERT: Good morning. 3 MR. BISCIEGLIA: The Commission has 4 nothing further, and I'd ask that the 5 stipulations of settlement be adopted. 6 CHAIR KASSEKERT: Thank you. 7 Any questions? 8 COMMISSIONER SOMMELING: Madame Chair, I 9 move to approve the stipulations. 10 COMMISSIONER EPPS: Second. 11 VICE CHAIR FEDORKO: 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 very much for coming. Good 19 luck. 20 MR. FARBER: Thank you. 21 MS. BOZIL: Ma'am, may I ask you a 22 question? When would I be able to pick up our 23 license? 24 CHAIR KASSEKERT: Bernadette? 25 MR. INGIS: We'll talk to you after. 15 ITEM NO. 4 1 CHAIR KASSEKERT: We will talk to you 2 after the meeting. 3 MS. BOZIL: Thank you. 4 CHAIR KASSEKERT: Yup. 5 MR. NANCE: Item No. 4, stipulation of 6 settlement in State versus Trump Marina 7 Associates, LLC. 8 Mr. Corbett? 9 MR. CORBETT: Good morning, Chair, 10 Commissioners. 11 In this case the casino licensee admits 12 the regulatory violation and agrees to a 13 penalty of $75,000. 14 Mr. Cunningham is here for the casino 15 licensee and Mr. Stebbins for the Division. 16 CHAIR KASSEKERT: Thank you. Good 17 morning, Mr. Cunningham. 18 MR. CUNNINGHAM: Good morning. 19 Marina has participated in the 20 preparation of the draft stipulation of 21 settlement, and I would respectfully request 22 that you approve the stipulation as it's 23 drafted. 24 CHAIR KASSEKERT: Thank you. 25 Mr. Stebbins? 16 ITEM NO. 4 1 MR. STEBBINS: Thank you, Chair 2 Kassekert, members of the Commission. 3 Good morning. I echo Mr. Cunningham's 4 remarks. We talked about it, and we've 5 discussed the terms and conditions. The fine, 6 we believe, is appropriate, and I'd just be 7 glad to answer any questions if you have any. 8 CHAIR KASSEKERT: Thank you. 9 Any questions? 10 COMMISSIONER SOMMELING: No questions, 11 Madame Chair. 12 VICE CHAIR FEDORKO: Motion to approve 13 the stipulation of settlement and impose a 14 civil penalty of $75,000 against Trump Marina 15 Associates, LLC, for violation of Commission 16 regulations regarding underage public wagering 17 activity and alcoholic beverage service to 18 underaged persons. 19 COMMISSIONER FRULIO: 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. 17 ITEM NO. 5 1 Thank you. 2 MR. CUNNINGHAM: Thank you. 3 MR. NANCE: Item No. 5, petition for 4 early reapplication for Connie Harris and Bano 5 Khalid. 6 CHAIR KASSEKERT: Miss Frigen? 7 MS. FRIGEN: Good morning, Madame Chair 8 and Commissioners. 9 Miss Harris is present. I would ask her 10 to have a seat at the table over here. 11 As she's being seated, just background 12 for your consideration is Miss Harris raises a 13 petition seeking to reapply early for a 14 registration and/or noncredential hotel 15 employment. 16 The Division of Gaming Enforcement has 17 interposed an objection to reapplication for a 18 registration, but it does not oppose 19 noncredential hotel employment. 20 CHAIR KASSEKERT: Thank you. 21 Mr. Biscieglia? 22 MR. BISCIEGLIA: Thank you, Chair. 23 As Miss Frigen just stated, the Division 24 is not opposing the Petitioner's request to 25 work in a noncredential position. However, at 18 ITEM NO. 5 1 this time the Division cannot conclude that 2 Miss Harris has demonstrated facts and 3 circumstances to permit her early reapplication 4 for registration. This is based upon the time 5 period that has elapsed since the 6 disqualification, which has been just about 7 three years. It is less and than the five-year 8 period the Division looks for in not objecting 9 to these petitions. 10 Thank you. 11 CHAIR KASSEKERT: Thank you. 12 Miss Harris, is there anything you'd 13 like to say today? 14 MS. HARRIS: No. 15 CHAIR KASSEKERT: No. Okay. 16 Any questions? 17 COMMISSIONER SOMMELING: No questions, 18 Madame Chair. 19 COMMISSIONER EPPS: I have a question. 20 CHAIR KASSEKERT: Commissioner Epps? 21 COMMISSIONER EPPS: Is your position 22 with House of Blues a non -- is it a 23 noncredential position? 24 MS. HARRIS: Yes, it was. 25 MS. FRIGEN: I actually called her 19 ITEM NO. 5 1 supervisor, because Steve asked me to do that, 2 and they believe it should just require a 3 noncredential. 4 CHAIR KASSEKERT: Okay. Any other 5 questions? 6 COMMISSIONER EPPS: Chair, I move that 7 we deny Miss Harris permission to reapply early 8 for a casino service employee registration, 9 however, grant her permission to obtain 10 employment early as a noncredential hotel 11 employee. 12 COMMISSIONER SOMMELING: 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 for coming. Good luck. 20 MS. HARRIS: Thank you. 21 MS. FRIGEN: I don't believe I see her 22 here. Let me just ask for the record whether 23 Bano Khalid is present or represented? She was 24 here in June, so I would recognize her. 25 In June the Commission granted Miss 20 ITEM NO. 5 1 Khalid permission to obtain noncredential hotel 2 employment early. She subsequently filed a 3 petition seeking permission to reapply early 4 for a registration. 5 The Division has interposed no objection 6 to this request. 7 CHAIR KASSEKERT: Thank you. 8 Mr. Biscieglia? 9 MR. BISCIEGLIA: Thank you. 10 As stated, the Division has no objection 11 to the petition. 12 Thank you. 13 CHAIR KASSEKERT: Thank you. 14 Any questions? 15 COMMISSIONER SOMMELING: No questions, 16 Madame Chair. 17 COMMISSIONER EPPS: Chair, I move that 18 we grant Miss -- Mr.? -- Miss Khalid permission 19 to reapply early for a casino service employee 20 registration. 21 COMMISSIONER SOMMELING: Second. 22 VICE CHAIR FEDORKO: Second. 23 CHAIR KASSEKERT: The motion has been 24 made and seconded. All in favor? 25 (Ayes.) 21 ITME NO. 6 1 CHAIR KASSEKERT: Opposed? 2 (No response.) 3 CHAIR KASSEKERT: Motion carries. 4 Thank you. 5 MR. BISCIEGLIA: Thank you. 6 MR. NANCE: Item No. 6, petition and 7 amended petition of MGM MIRAGE requesting 8 permission for the following persons to perform 9 the duties and exercise the powers of the 10 qualifying position for MGM MIRAGE and the 11 affiliated entities pending the qualification 12 in connection with the casino license of Marina 13 District Development Company, LLC, for Daniel 14 D'Arrigo, Chief Financial Officer and Executive 15 Vice President of MGM MIRAGE; Robert C. 16 Selwood, Chief Accounting Officer and Executive 17 Vice President of MGM MIRAGE; and Cathryn 18 Santoro, Senior Vice President and Treasurer 19 for MGM MIRGAGE and Treasurer of MAC Corp. and 20 MIRAGE Resorts, Inc. 21 Miss Frank? 22 MS. FRANK: Good morning, Chair and 23 Commissioners. 24 Proposed forms of the resolutions have 25 been circulated to the parties. 22 ITME NO. 6 1 Mr. Casiello is here for MGM MIRAGE, 2 while Mr. Fogarty is here for the Division. 3 CHAIR KASSEKERT: Good morning, Mr. 4 Casiello. 5 MR. CASIELLO: Good morning, Madame 6 Chair and Commissioners. 7 Daryl already did the hard part, which 8 was putting these names and titles on the 9 record. I simply note that we have reviewed 10 the draft resolution, and it is acceptable to 11 us in both form and substance. 12 CHAIR KASSEKERT: Thank you. 13 Mr. Fogarty? 14 MR. FOGARTY: Good morning. 15 As to Mr. D'Arrigo, Mr. Selwood, we have 16 no objection to the relief requested, as we 17 have reviewed the draft resolutions and have no 18 objection to their entry. 19 As to Miss Santoro, I think I need to 20 say that after I filed my letter, the petition 21 was amended to include two other positions with 22 companies, intermediary companies to the 23 licensee and the ultimate holding company, and 24 we have no objection to Cathryn being allowed 25 to perform in those positions, also. 23 ITME NO. 6 1 CHAIR KASSEKERT: And those two other 2 psoitions are as treasurer for MGM MIRAGE and 3 Treasurer for MAC Corporation, MIRAGE? 4 MR. CASIELLO: They are -- 5 MR. FOGARTY: I'm sorry. Treasurer of 6 MAC Corp. and MIRAGE Resorts. 7 CHAIR KASSEKERT: Okay. Very good. 8 Thank you. 9 Any questions? 10 COMMISSIONER SOMMELING: No questions, 11 Madame Chair. 12 CHAIR KASSEKERT: I think we're going to 13 do each one separately? 14 COMMISSIONER FRULIO: Move to adopt each 15 resolution and authorize on a temporary basis 16 and prior to plenary qualification permission 17 for three officers to assume the duties and 18 exercise the powers of their respective 19 positions subject to, in each instance, to the 20 conditions contained in NJAC 19:43-2.7 which, 21 among other things, require the filing of a 22 personal history disclosure Form-MJ and NJ 23 supplemental by October 17th, 2007: 24 A, Daniel J. D'Arrigo as Chief Financial 25 Officer and Executive Vice President for MGM 24 ITME NO. 6 1 MIRAGE. 2 CHAIR KASSEKERT: Okay. Is there a 3 second for that motion? 4 VICE CHAIR FEDORKO: Second. 5 COMMISSIONER EPPS: Second. 6 COMMISSIONER SOMMELING: Second. 7 CHAIR KASSEKERT: The motion has been 8 made and seconded. This is a roll call vote. 9 MR. NANCE: Commissioner Sommeling? 10 COMMISSIONER SOMMELING: Yes. 11 MR. NANCE: Commissioner Epps? 12 COMMISSIONER EPPS: Yes. 13 MR. NANCE: Commissioner Frulio? 14 COMMISSIONER FRULIO: Yes. 15 MR. NANCE: Vice Chair Fedorko? 16 VICE CHAIR FEDORKO: Yes. 17 MR. NANCE: Chair Kassekert? 18 CHAIR KASSEKERT: Yes. 19 MR. NANCE: The record will reflect that 20 the motion is unanimous. 21 COMMISSIONER FRULIO: B, Robert C. 22 Selwood as Chief Accounting Officer and 23 Executive Vice President for MGM MIRAGE. 24 VICE CHAIR FEDORKO: Second. 25 CHAIR KASSEKERT: Motion is made and 25 ITME NO. 6 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: C. 15 COMMISSIONER FRULIO: And, C, Cynthia -- 16 Cathryn -- I'm sorry -- Santoro, as Senior Vice 17 President and treasurer for MGM MIRAGE and 18 Treasurer for MAC Corp. and MIRAGE Resorts, 19 Inc. 20 VICE CHAIR FEDORKO: Second. 21 CHAIR KASSEKERT: Motion is made and 22 seconded. This is a roll call vote. Vote 23 vote. 24 MR. NANCE: Commissioner Sommeling? 25 COMMISSIONER SOMMELING: Yes. 26 ITME NO. 7 1 MR. NANCE: Commissioner Epps? 2 COMMISSIONER EPPS: Yes. 3 MR. NANCE: Commissioner Frulio? 4 COMMISSIONER FRULIO: Yes. 5 MR. NANCE: Vice Chair Fedorko? 6 VICE CHAIR FEDORKO: Yes. 7 MR. NANCE: Chair Kassekert? 8 CHAIR KASSEKERT: Yes. 9 MR. NANCE: The record will reflect that 10 the motion is unanimous. 11 MR. CASIELLO: Thank you. 12 MS. FRANK: Thank you. 13 MR. NANCE: Item No. 7, amended petition 14 of Infinity World Investment, LLC, for a 15 temporary and conditional waiver of the 16 qualification requirement purusant to NJSA 17 5:12-85d(1) with respect to certain equity 18 securities of MGM MIRAGE and for other relief. 19 Mr. DiGiacomo? 20 MR. DiGIACOMO: Chair, Commissioners, 21 good morning. 22 Nicholas Casiello, Jr., for the 23 Petitioner. Mr. James C. Fogarty for the 24 Division of Gaming Enforcement. 25 I've shared with counsel for the parties 27 ITME NO. 7 1 a draft of the proposed resolution, and I 2 believe that they are prepared to accept its 3 form and entry. 4 CHAIR KASSEKERT: Thank you. 5 Mr. Casiello? 6 MR. CASIELLO: Yes. We are prepared to 7 accept the form and entry of that record as 8 amended this morning and also as amended 9 yesterday. 10 Just briefly, Infinity World and related 11 entities are seeking temporary conditional 12 waiver of the qualification requirement. As 13 you are probably aware, Infinity World has 14 tendered an offer to acquire up to 4.75 percent 15 of the outstanding stock of MGM MIRAGE, which 16 is a holding company of the casino licensee, 17 Borgata. That tender offer has been extended 18 so that it expires on midnight this Friday. 19 Separately it has entered into an agreement to 20 acquire another 4.75 percent of stock from MGM 21 MIRAGE, directly. 22 The basis of our waiver request is that 23 even if Infinity World acquires the entire 9.5 24 percent, it still will not have the ability to 25 control or elect a director of MGM MIRAGE since 28 ITME NO. 7 1 an absolute majority of the stock will be 2 continued to be owned by the corporation, which 3 is a qualified holding company. 4 However, subject to the receipt of 5 regulatory approvals, Infinity World will have 6 the ability to nominate a director of MGM 7 MIRIAGE if it acquires at least five percent of 8 the stock of MGM MIRAGE. Thus, even if you 9 waive the qualification requirement today, and 10 Infinity World desires to file for 11 equalification and ICA, so that it can nominate 12 a director of MGM MIRAGE if all the other 13 conditions are met. 14 The DGE report concurs in the waiver 15 subject to four conditions, and those four 16 conditions are acceptable to us. And I've 17 already indicated that the form and substance 18 of the draft resolution is acceptable. 19 Thank you. 20 CHAIR KASSEKERT: Thank you. 21 Any questions for Mr. Casiello? 22 COMMISSIONER SOMMELING: No questions, 23 Madame Chair. 24 CHAIR KASSEKERT: Mr. Fogarty? 25 MR. FOGARTY: Yes. I've sent you all a 29 ITME NO. 7 1 letter dated September 24, 2007, setting forth 2 the Director's concurrence in a 85d(1) waiver 3 subject to certain conditions. Those 4 conditions are essentially captured in the 5 draft resolution that Mr. DiGiacomo shared with 6 us. 7 I won't go into the reasons for the 8 concurrence of the Director. They are set 9 forth on the record. If you need to chat about 10 them, I'd be happy to. Just suffice it to say 11 that we do concur in a waiver. We think it's 12 important that this entity -- I guess the 13 driving force for the waiver is that this 14 entity is going to enter the regulatory process 15 in short order in a definite period of time, 16 which I think they ought. 17 So I've seen the draft resolution as 18 updated as recently as under an hour ago, and 19 we have no objection to its entry. 20 CHAIR KASSEKERT: Thank you. 21 Any questions? 22 COMMISSIONER SOMMELING: No questions, 23 Madame Chair. 24 COMMISSIONER EPPS: Madame Chair, I move 25 that we adopt the draft resolution and grant 30 ITME NO. 7 1 permission to Infinity World Investments, LLC, 2 and four affiliates to own beneficially up to 3 9.5 percent of the common stock of MGM MIRAGE 4 pursuant to a waiver of the qualification 5 requirement under NJSA 5:12-85d(1) subject to 6 the conditions stated in the resolution. 7 COMMISSIONER SOMMELING: Second. 8 CHAIR KASSEKERT: The motion has been 9 made and seconded. This is a roll call vote. 10 MR. NANCE: Commissioner Sommeling? 11 COMMISSIONER SOMMELING: Yes. 12 MR. NANCE: Commissioner Epps? 13 COMMISSIONER EPPS: Yes. 14 MR. NANCE: Commissioner Frulio? 15 COMMISSIONER FRULIO: Yes. 16 MR. NANCE: Vice Chair Fedorko? 17 VICE CHAIR FEDORKO: Yes. 18 MR. NANCE: Chair Kassekert? 19 CHAIR KASSEKERT: Yes. 20 MR. NANCE: The record will reflect that 21 the motion is unanimous. 22 CHAIR KASSEKERT: Thank you. 23 MR. DiGIACOMO: Thank you, 24 Commissioners. 25 MR. CASIELLO: Thank you. 31 ITME NO. 8-9 1 MR. NANCE: Item No. 8, petition of 2 Adamar, New Jersey, Inc., for relief of certain 3 portions of Resolution No. 06-11-02-02 has been 4 adjourned at the request of the Petitioner. 5 Item No. 9, petition of Resorts, 6 International Hotel, Inc., for relief of a 7 condition regarding operation of the slot 8 booth. 9 Mr. Briliant? 10 MR. BRILIANT: Good morning, Madame 11 Chair and Commissioners. Miss Wild is here on 12 behalf of Resorts. Mr. Stebbins is here on 13 behalf of the Division. 14 We have circulated a proposed draft 15 resolution, and the parties have indicated that 16 it is satisfactory to them. 17 CHAIR KASSEKERT: Thank you. 18 Miss Wild? Good morning. 19 MS. WILD: Good morning, Chair and 20 members of the Commission. 21 As Mr. Briliant has said, we have 22 reviewed the draft resolution. I would ask for 23 the adoption of that resolution. And I would 24 thank you and your staff for considering this 25 important change in our operating procedure. 32 ITME NO. 9 1 Thank you. 2 CHAIR KASSEKERT: Thank you. 3 Any questions for Miss Wild? 4 Mr. Stebbins? 5 MR. STEBBINS: Madame Chair, members of 6 the Commission, Deputy Attorney General Ficchi, 7 who is out today, responded to the petition. 8 We have no objection. The draft resolution has 9 been reviewed. It is acceptable, and we would 10 support its adoption. 11 Thank you. 12 CHAIR KASSEKERT: Thank you. 13 Any questions? 14 COMMISSIONER SOMMELING: Madame Chair, I 15 move to adopt the draft resolution and accept 16 Resorts' weekday "noon-to-midnight" and weekend 17 "24/7" proposal and delegate to the Director of 18 Compliance of the Compliance Division the 19 authority in consultation with the Chair to 20 further modify the required minimum of hours of 21 operation for the slot booth in Pit No. 7 as 22 may be necessary and appropriate. 23 COMMISSIONER EPPS: Second. 24 CHAIR KASSEKERT: The motion has been 25 made and seconded. All in favor? 33 ITME NO. 9 1 (Ayes.) 2 CHAIR KASSEKERT: Opposed? 3 (No response.) 4 CHAIR KASSEKERT: Motion carries. 5 Thank you. 6 MS. WILD: Thank you. 7 MR. BRILIANT: Thank you. 8 MR. NANCE: In accordance with 9 Resolution No. 06-12-13-20, the next closed 10 session of the Commission shall be held on 11 Wednesday, October 17th, 2007, at 9:15 a.m. in 12 the Commission offices. 13 It is now time for the public 14 participation portion of the meeting. 15 CHAIR KASSEKERT: Is there anyone from 16 the public who wishes to be heard? 17 (No response.) 18 CHAIR KASSEKERT: Seeing no one, I'll 19 declare this portion of the meeting closed and 20 entertain a motion to adjourn. 21 COMMISSIONER SOMMELING: Motion to 22 adjourn. 23 VICE CHAIR FEDORKO: Second. 24 CHAIR KASSEKERT: The motion has been 25 made and seconded. All in favor? 34 1 (Ayes.) 2 CHAIR KASSEKERT: Opposed? 3 (No response.) 4 CHAIR KASSEKERT: Motion carries. 5 (Public Meeting 07-10-04 was adjourned 6 at 10:48 a.m.) 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 35 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: October 6, 2007 23 My Commission Expires on July 10, 2009 24 ID No 2062871 25