0001 1 STATE OF NEW JERSEY 2 CASINO CONTROL COMMISSION 3 - - - - - - - - - - - - - - - - - - - 4 5 PUBLIC MEETING NO. 08-04-16 6 7 - - - - - - - - - - - - - - - - - - - 8 9 Wednesday, April 16, 2008 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 10:32 a.m. to 10:56 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 0002 1 B E F O R E : 2 CASINO CONTROL COMMISSION: LINDA M. KASSEKERT, CHAIR 3 MICHAEL A. FEDORKO, COMMISSIONER MICHAEL C. EPPS, COMMISSIONER 4 RALPH G. FRULIO, 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 TERESA M. NAGENGAST, SENIOR COUNSEL E. DENNIS KELL, ASSISTANT GENERAL COUNSEL 10 LON E. MAMOLEN, SENIOR COUNSEL BERNADETTE T. FRIGEN, PROGRAM SUPERVISOR 11 CLAIRE FRANK, PROGRAM SUPERVISOR 12 DIVISION OF GAMING ENFORCEMENT: 13 DEPUTY ATTORNEYS GENERAL JAMES ARMSTRONG, DEPUTY ATTORNEY GENERAL 14 TIMOTHY C. FICCHI, DEPUTY ATTORNEY GENERAL FREDERICK J. McDONOUGH, DEPUTY ATTORNEY 15 16 17 18 19 20 21 22 23 24 25 0003 1 A P P E A R A N C E S : 2 ITEM NO. 6 TERESA M. NAGENGAST, SENIOR COUNSEL 3 TIMOTHY C. FICCHI, DEPUTY ATTORNEY GENERAL FREDERICK CUNNINGHAM, ESQ. 4 FOR: TRUMP PLAZA ASSOCIATES 5 ITEM NO. 7 TERESA M. NAGENGAST, SENIOR COUNSEL 6 TIMOTHY C. FICCHI, DEPUTY ATTORNEY GENERAL STERNS & WEINROTH 7 DENNIS DALY, ESQ. FOR: BOARDWALK REGENCY CORPORTION 8 ITEM NO. 8-9 9 TERESA M. NAGENGAST, SENIOR COUNSEL FREDERICK J. McDONOUGH, DEPUTY ATTORNEY 10 GENERAL KEVIN SMITH, ESQ. 11 FOR: RESORTS INTERNATIONAL HOTEL, INC. 12 ITEM NO. 10-11 TERESA M. NAGENGAST, SENIOR COUNSEL 13 FREDERICK J. McDONOUGH, DEPUTY ATTORNEY GENERAL 14 STERNS & WEINROTH DENNIS DALY, ESQ. 15 FOR: ATLANTIC CITY SHOWBOAT, INC. 16 ITEM NO. 12 TERESA M. NAGENGAST, SENIOR COUNSEL 17 FREDERICK J. McDONOUGH, DEPUTY ATTORNEY GENERAL 18 MARIE JONES, ESQ. FOR: KNOLL, INC. 19 ITEM NO. 13 20 TERESA M. NAGENGAST, SENIOR COUNSEL FREDERICK J. McDONOUGH, DEPUTY ATTORNEY 21 GENERAL JAMES FLYNN, ESQ. 22 FOR: XEROX CORPORATION 23 ITEM NO. 15 E. DENNIS KELL, ASSISTANT GENERAL COUNSEL 24 TIMOTHY C. FICCHI, DEPUTY ATTORNEY GENERAL STERNS & WEINROTH 25 DENNIS DALY, ESQ. FOR: HARRAH'S ATLANTIC CITY OPERATING CO. 0004 1 A P P E A R A N C E S : CONTINUED: 2 ITEM NO. 16 3 E. DENNIS KELL, ASSISTANT GENERAL COUNSEL TIMOTHY C. FICCHI, DEPUTY ATTORNEY GENERAL 4 JOSEPH DOUGHERTY, ESQ. FOR: ADAMAR OF NEW JERSEY, INC. 5 ITEM NO. 19 6 CLAIRE FRANK, PROGRAM MANAGER FEDERICK J. McDONOUGH, DEPUTY ATTORNEY GENERAL 7 STERNS & WEINROTH DENNIS DALY, ESQ. 8 FOR: HARRAH'S ENTERTAINMENT, INC., ET AL. 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 0005 1 AGENDA PUBLIC MEETING NO. 08-04-16 2 APRIL 16, 2008, 10:32 a.m. ITEM PAGE VOTE 3 1 Ratification of the minutes of 8 9 April 2, 2008 Public Meeting. 4 2 Applications for employee and casino Service industry licenses 5 20 applications remanded for hearings 9 9 16 applications granted 10 10 6 3 Stipulations of settlement and consent agreements: 7 a) Stephen A. McClintock (07-0648-EA) 11 12 b) Carolyn R. Vega (07-0777-EA) 11 12 8 c) Anthony Mercurio (07-0788-ER) 11 12 d) Luis A. Rivera (07-0787-ER) 11 12 9 e) Carol L. Ostroski (08-0227-EA) 11 12 f) Brijeshkumar S. Patel (08-0041-ER) 11 12 10 g) Christopher E. Clinton, Jr. 11 12 (08-0010-EA) 11 4 Petitions for early reapplication: a) Stephen P. Kawejsza (08-0093-RA) 13 14 12 b) Jesse L. Spellman (08-0051-EA) 15 16 5 Applications for suspension: 13 a) Carl S. Anderson (08-0245-RC) 17 18 b) Renee H. Lewis (08-0244-RC) 17 18 14 c) Nancy E. Loper (08-0243-RC) 17 18 d) Irene J. Marshall (08-0271-RC) adj. 15 e) Michael A. Rinaldo (08-0246-RC) 17 18 f) Juan D. Rodriquez (08-0285-RC) 17 18 16 g) Nelson M. Ruiz, Jr. (08-0270-RC) 17 18 6 Stipulation of settlement in State v. 18 19 17 Trump Plaza Associates (d/b/a Trump Plaza Casino Hotel) (07-0708-VC) 18 7 Stipulation of settlement in State v. 20 21 Boardwalk Regency Corporation (d/b/a 19 Caesars Atlantic City (07-0707-VC) 8 Stipulation of settlement in State v. 22 24 20 Resorts International Hotel, Inc. (d/b/a Resorts Atlantic City) and VendingData 21 Corporation (07-049--VC) 9 Petition of VendingData Corporation and 22 24 22 Resorts International Hotel, Inc., (d/b/a Resorts Atlantic City) for a transactional 23 waiver (PRN 3620603) 10 Stipulation of settlement in State v. 25 26 24 Atlantic City Showboat, Inc., (d/b/a Showboat Casino Hotel) VendingData Corporation 25 (07-0496-VC) 0006 1 CONTINUED AGENDA PUBLIC MEETING NO. 08-04-16 2 APRIL 16, 2008, 10:32 a.m. ITEM PAGE VOTE 3 11 Petition of VendingData Corporation and 25 26 Atlantic City Showboat, Inc., (d/b/a 4 Showboat Casino Hotel) for a transactional waiver (PRN 0240703) 5 12 Petition of Knoll, Inc., for a waiver of 27 28 qualification requirement of Columbia Wanger 6 Asset Management, LP, and Columbia Acorn Trust (PRN 35407013) 7 13 Petition of Xerox Corporation for a 29 30 waiver of qualification requirement for 8 Dodge & Cox (PRN 3550702) 14 Petition of Xerox Corporation for a wdrwn. 9 waiver of qualification requirement for FMR Corp. (PRN 3550708) 10 15 Petition of Harrah's Atlantic City 31 32 Operating Company, LLC, for an amendment 11 to its operation certificate to expand and reconfigure its gaming floor (PRN 0990815) 12 16 Petition of Adamar of New Jersey, Inc., 33 34 (d/b/a Tropicana Casino and Resort) for an 13 amendment to its operation certificate to reconfigure its gaming floor (PRN 0930807) 14 17 Proposed publication of amendments and 35 36 new rule for "Winners Pot" Poker 15 18 Proposed adoption of amendments and new 37 37 rule for "Fire Bet" in craps 16 19 Petition of Harrah's Entertainment, Inc., 37 40 Harrah's Operating Company, Inc., Harrah's 17 Atlantic City operating company, LLC, Showboat Atlantic City operating company, LLC, 18 Bally's Park Place, Inc., and Boardwalk Regency Corporation, requesting permission 19 for Joseph Tyrrell to perform the duties and exercise the powers of Regional Vice 20 President of Governmental Affairs for Harrah's Entertainment, Inc., and Harrah's Operating 21 Company, Inc., pending plenary qualification (PRN 0500804) 22 23 24 25 0007 1 E X H I B I T S : 2 ITEM NO. 2 DESCRIPTION EVD 3 4 EL-1 Remand for hearings 20 license X applications 5 EL-2 Grant 16 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 0008 1 (Public Meeting 08-04-16 was commenced 2 at 10:32 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 subscribers. 13 Members of the press will be permitted 14 to take photographs, and we would ask that this 15 be done in a manner which is not disruptive or 16 distracting to the Commission. 17 The use of cellular telephones in the 18 public meeting room while the Commission is in 19 session is prohibited. 20 Any members of the public who wish to 21 address the Commission will be given the 22 opportunity to do so before the Commission 23 adjourns for the day. 24 Please stand for the Pledge of 25 Allegiance. 0009 1 (The flag salute was recited.) 2 MR. NANCE: Good morning. 3 CHAIR KASSEKERT: Good morning. 4 MR. NANCE: Good morning. 5 The matters discussed in closed session 6 were: Employee license matters. 7 The Commission approved the April 2nd, 8 2008, closed session minutes. 9 Litigate update regarding: Warren 10 Lackland and Lewis M. Springer, Jr., versus the 11 State of New Jersey and Casino Control 12 Commission; 13 Gloria Ford versus the State of New 14 Jersey, Casino Control Commission, et al.; 15 Tyron J. Floyd versus the Casino Control 16 Commission and Sands Hotel and Casino; 17 Husain versus the Casino Control 18 Commission, et al.; 19 Petition of Tropicana, et al., for 20 renewal of casino license; 21 Application of Dana White for renewal of 22 a casino employee license; 23 And petition of Highgate Steel for 24 release of monies. 25 Item No. 1, ratification of the minutes 0010 1 of April the 2nd, 2008, public meeting. 2 COMMISSIONER FEDORKO: Motion to 3 approve. 4 COMMISSIONER EPPS: 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 MR. NANCE: Item No. 2, application for 12 employee and casino service industry licenses. 13 This agenda item will be entered as Exhibit 14 List 1 and 2. 15 Exhibit List 1 consists of 20 16 applications for initial and/or renewal of 17 casino key and/or casino employee licenses. 18 The Division has objected to licensure. 19 COMMISSIONER FRULIO: Motion to remand 20 for hearings. 21 COMMISSIONER FEDORKO: Seconded. 22 CHAIR KASSEKERT: The motion has been 23 made and seconded. All in favor? 24 (Ayes.) 25 CHAIR KASSEKERT: Opposed? 0011 1 (No response.) 2 CHAIR KASSEKERT: Motion carries. 3 MR. NANCE: Exhibit List 2 consists of 4 16 applications for initial and/or renewal of 5 casino key and/or casino employee licenses. 6 Staff and the Division have recommended 7 that these licenses be granted. 8 COMMISSIONER FRULIO: Motion to grant 9 applications. 10 COMMISSIONER FEDORKO: Second. 11 CHAIR KASSEKERT: The motion has been 12 made and seconded. All in favor? 13 (Ayes.) 14 CHAIR KASSEKERT: Opposed? 15 (No response.) 16 CHAIR KASSEKERT: Motion carries. 17 MR. NANCE: Item No. 3, stipulations of 18 settlement and consent agreement. When I call 19 your name, please come forward, standing behind 20 this middle table, spreading across the room so 21 that you may be seen: Stephen McClintock, 22 Carolyn Vega, Anthony Mercurio, Luis Rivera, 23 Carol Ostroski, Brijeshkumar Patel, and 24 Christopher Clinton, Jr. 25 CHAIR KASSEKERT: Has everyone whose 0012 1 name been called come forward at this time? 2 Okay. 3 I'm going to ask that you each state 4 your name for the record, starting with you, 5 ma'am. 6 MS. OSTROSKI: Carol Ostroski, 7 MR. RIVERA: Luis Rivera. 8 MR. CLINTON: Christopher Clinton, Jr. 9 MS. VEGA: Carolyn Vega. 10 CHAIR KASSEKERT: Thank you. 11 In a moment we are going to vote on the 12 stipulations which you've agreed to with the 13 Division of Gaming Enforcement. 14 I'm going to ask at this point if any of 15 you wish to be heard on this matter. You don't 16 have to say anything if you don't want to. 17 Does anyone wish to be heard? 18 (No response.) 19 CHAIR KASSEKERT: Okay. Mr. Armstrong? 20 MR. ARMSTRONG: Chair, I have nothing to 21 add. I just ask that the stipulations be 22 approved. 23 CHAIR KASSEKERT: Okay. Any questions? 24 COMMISSIONER FEDORKO: Motion to approve 25 stipulations. 0013 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. NANCE: Item No. 4, petition for 10 early application for Steven Kawejsza and Jesse 11 Spellman. 12 Miss Frigen? 13 MS. FRIGEN: Good morning, Madame Chair, 14 Commissioners. 15 Let me ask will Steven Kawejsza is 16 present or represented here? 17 MR. KAWEJSZA: He's here. 18 CHAIR KASSEKERT: Yes. He's here. 19 MS. FRIGEN: I'm sorry if I 20 mispronounced your name. How do you say it? 21 MR. KAWEJSZA: Kawejsza. 22 MS. FRIGEN: For your consideration is 23 his petition seeking permission to reapply 24 early for a license registration and/or a 25 noncredential hotel employment. 0014 1 The Division has interposed no objection 2 to this petition. The staff has recommended 3 that the petition be granted, the Commission 4 considering having a wage execution imposed 5 with for financial obligation. 6 CHAIR KASSEKERT: Thank you. 7 Mr. Kawejsza, is there anything you'd 8 wish to say today? 9 (No response.) 10 CHAIR KASSEKERT: No? Okay. 11 You understand what Miss Frigen just 12 said about the wage execution statement? 13 THE WITNESS: Yes. Yes. 14 CHAIR KASSEKERT: Okay. 15 Mr. Armstrong? 16 MR. ARMSTRONG: Chair, you have our 17 letter of March 7th. We have no objection to 18 this petition, and we would have the financial 19 responsibility and business issues at hand. 20 But -- 21 CHAIR KASSEKERT: Thank you. 22 Any questions? 23 COMMISSIONER FRULIO: Motion to grant 24 Mr. Kawejsza permission to reapply early for a 25 casino employee license, a casino service 0015 1 employee registration, and/or to work as a 2 noncredential hotel employee, conditioned upon 3 his signing a wage execution consent agreement. 4 COMMISSIONER FEDORKO: Second. 5 COMMISSIONER EPPS: 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 for coming. Good luck. 13 MR. KAWEJSZA: Thank you. 14 (Conferring.) 15 MS. FRIGEN: Okay. The next case would 16 be Jesse Spellman. Let me ask whether Mr. 17 Spell is present or represented? 18 (No response.) 19 MS. FRIGEN: Apparently, he is not here. 20 He had requested a two-week adjournment at the 21 prior meeting, but he is not here today. 22 He has filed a petition seeking 23 permission to reapply early for a registration 24 and/or noncredential hotel employment. 25 In this case the Division has 0016 1 recommended that his petition be denied. 2 CHAIR KASSEKERT: Thank you. 3 Mr. Armstrong? 4 MR. ARMSTRONG: Thank you, Madame Chair. 5 You have our letter of February 19th. 6 Mr. Spellman was revoked on May 18th of 2005. 7 That's less than two years ago. He's got a 8 disqualifying drug conviction in his 9 background, and he is hasn't exactly presented 10 much in his petition that would lead to you 11 believe that he has a chance to sustain his 12 qualifications for license or registration or 13 even a noncredential at this point in time we 14 ask you that deny it. 15 CHAIR KASSEKERT: Thank you. 16 Any questions? 17 COMMISSIONER FEDORKO: Motion to deny 18 Mr. Spellman's petition to reapply early for a 19 casino service employee registration or to 20 obtain noncredential hotel employment. 21 COMMISSIONER FRULIO: Second. 22 CHAIR KASSEKERT: The motion has been 23 made and seconded. All in favor? 24 (Ayes.) 25 CHAIR KASSEKERT: Opposed? 0017 1 (No response.) 2 CHAIR KASSEKERT: Motion carries. 3 MR. NANCE: Item No. 5, application for 4 suspension for Carl Anderson, Renee Lewis, 5 Nancy Loper, Irene Marshall, Michael Rinaldo, 6 Juan Rodriquez, and Nelson Ruiz, Jr. 7 Miss Frigen? 8 MS. FRIGEN: Madame Chair, 9 Commissioners, with respect to agenda Item 5d, 10 Irene Marshall, she called late afternoon 11 seeking a two-week adjournment because she had 12 another engagement. She agreed that she would 13 not work at any casino in the interim. And the 14 Division has consented to the adjournment 15 request with that condition. So we would ask 16 that this matter by removed from consideration 17 today. 18 CHAIR KASSEKERT: Surely. 19 MS. FRIGEN: Let me ask whether any of 20 the other individuals who were just named are 21 present or represented? 22 (No response.) 23 MS. FRIGEN: Apparently not. 24 CHAIR KASSEKERT: Okay. 25 Mr. Armstrong, you may proceed. 0018 1 MR. ARMSTRONG: We'll rely on our 2 papers, Chair, and ask you will these people be 3 suspended at this time. 4 Thank you. 5 CHAIR KASSEKERT: Thank you. 6 Any questions? 7 COMMISSIONER EPPS: Madame Chair, I move 8 that we suspend the credentials with respect to 9 the individuals listed as in Item 5a, b, c, e, 10 f, and g. 11 COMMISSIONER 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. 19 MS. FRIGEN: Thank you. 20 MR. ARMSTRONG: Thank you. 21 MR. NANCE: Item No. 6, stipulation of 22 settlement in State versus Trump Plaza 23 Associates. 24 Miss Nagengast? 25 MS. NAGENGAST: Good morning, Chair and 0019 1 Commissioners. 2 For your consideration this morning is a 3 stipulation between the Division and Trump 4 Plaza Associates in which the Division's 5 complaint alleged violations of the 6 Commission's underaged gambling regulations. 7 It's my understanding that if the 8 Commission approves the stipulation, it would 9 result in a civil penalty of $20,000. 10 I note the presence of counsel and ask 11 them to enter their appearance. 12 MR. CUNNINGHAM: Fred Cunningham for 13 Trump Plaza. 14 MR. FICCHI: For the Division, Timothy 15 Ficchi. 16 CHAIR KASSEKERT: Thank you, Mr. Ficchi. 17 Thank you, Mr. Cunningham. 18 Who wants to proceed? It's a 19 stipulation of settlement, so, Mr. Cunningham? 20 MR. CUNNINGHAM: We have reviewed the 21 stipulation and are in agreement with its term 22 and simply ask that you adopt it. 23 Thank you. 24 CHAIR KASSEKERT: Thank you. 25 Mr. Ficchi? 0020 1 MR. FICCHI: Good morning, Chair, 2 Commissioners. 3 The Division respectfully request that 4 the Commission adopt the stipulation as 5 drafted. 6 Thank you. 7 CHAIR KASSEKERT: Thank you. 8 Any questions? 9 COMMISSIONER EPPS: Madame Chair, I move 10 that we approve the stipulation of settlement 11 and impose a civil penalty of $20,000 against 12 Trump Plaza Associates for violation of 13 Commission regulations regarding underaged 14 gambling. 15 COMMISSIONER FRULIO: Second. 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 MR. CUNNINGHAM: Thank you. 23 MR. FICCHI: Thank you. 24 MR. NANCE: Item No. 7, stipulation of 25 settlement in State versus Boardwalk Regency 0021 1 Corporation. 2 Miss Nagengast? 3 MS. NAGENGAST: Chair and Commissioners, 4 my understanding is in this stimulation there 5 is another of violation of the Commission's 6 underage gambling regulations which this time 7 results in a civil penalty of $10,000. 8 CHAIR KASSEKERT: Mr. Daly, would you 9 like to enter your appearance? 10 MR. DALY: Yes. Dennis Daly, Sterns & 11 Weinroth, on behalf of the Respondent casino. 12 CHAIR KASSEKERT: Thank you again. 13 Since this is a stipulation, anything to 14 add to this issue? 15 MR. DALY: Nothing whatever. Ask that 16 you approve the stipulation. 17 CHAIR KASSEKERT: Thank you. 18 Mr. Ficchi? 19 MR. FICCHI: Yes. Chair, Commissioners, 20 again, the Division again respectfully requests 21 that you adopt the stipulation as drafted. 22 CHAIR KASSEKERT: Thank you. 23 Any questions? 24 COMMISSIONER FEDORKO: Motion to approve 25 the stipulation of settlement and impose a 0022 1 civil penalty of $10,000, against Boardwalk 2 Regency Corporation for violation of Commission 3 regulations regarding underaged gambling. 4 COMMISSIONER FRULIO: 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 MR. FICCHI: Thank you. 12 MR. CUNNINGHAM: Thank you. 13 CHAIR KASSEKERT: Thank you. 14 MR. NANCE: For your consideration, 15 Items 8 and 9, stipulation of settlement in 16 State versus Resorts International Hotel, Inc., 17 and VendingData Corporation and petition of 18 VendingData Corporation and Resorts 19 International Hotel, Inc., for a transactional 20 waiver. 21 Miss Nagengast? 22 MS. NAGENGAST: Chair and Commissioners, 23 in this stipulation, it was alleged that the 24 Respondent had violated the Commission's 25 regulations with respect to transactional 0023 1 waivers. 2 I would note the appearance of counsel 3 and also note on the record that there appears 4 to be nobody here on behalf of VendingData. 5 MR. SMITH: Yes. Kevin Smith on behalf 6 of Resorts International. 7 CHAIR KASSEKERT: Thank you. 8 MR. McDONOUGH: Rick McDonough on behalf 9 of the Division. 10 CHAIR KASSEKERT: Thank you, Mr. 11 McDonough. 12 Again, this is a stipulation. Anything 13 to add to this issue? 14 MR. SMITH: Just that I ask that you 15 approve this settlement. 16 CHAIR KASSEKERT: Thank you. 17 MR. McDONOUGH: Yes. The Division 18 believes this is an equitable of this matter, 19 and we request that you approve it. 20 Thank you. 21 CHAIR KASSEKERT: Thank you. 22 Since the vending company -- did the 23 vending -- 24 MS. NAGENGAST: VendingData is not here. 25 I don't think that they would have a problem 0024 1 with the Commission approving the stipulations. 2 The stipulations would result in a civil 3 penalty of $4500 against VendingData and $2500 4 against Resorts. 5 If the Commission does approve it, it's 6 also recommended that they dismiss as moot the 7 petition, which is listed as Item No. 9. 8 CHAIR KASSEKERT: Nine. Very good. 9 Thank you. 10 MR. McDONOUGH: One other item. As part 11 of that, VendingData is seeking permission to 12 withdraw their CSI petition. That is part of 13 the relief referred to in this stipulation. 14 MS. NAGENGAST: Correct. 15 CHAIR KASSEKERT: Very good. 16 Any questions? 17 COMMISSIONER FRULIO: Move to approve 18 the stipulation of settlement and, A, assess a 19 civil penalty of $2500 against Resorts 20 International Hotel, Inc.; B, assess a civil 21 penalty of $4500 against VendingData 22 Corporation; C, dismiss as moot Petition No. 23 3620603; D, permit VendingData Corporation to 24 withdraw its pending initial gaming related CSI 25 application, subject to the conditions in the 0025 1 order, and including, VendingData shall not be 2 eligible to apply for licensure, registration, 3 or approval until one year has expired from the 4 date of the withdrawal. 5 COMMISSIONER EPPS: Second. 6 COMMISSIONER FEDORKO: 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 MR. SMITH: Thank you very much. 14 MR. McDONOUGH: Thank you. 15 MR. NANCE: For your consideration, 16 Items 10 and 11. Stipulation of settlement in 17 State versus Atlantic City Showboat, Inc., 18 VendingData Corporation, and petition of 19 VendingData Corporation and Atlantic City 20 Showboat for a transactional waiver. 21 Miss Nagengast? 22 MS. NAGENGAST: Chair and Commissioners, 23 these items are the same as the previous two 24 except that they are different respondents. 25 CHAIR KASSEKERT: Thank you. 0026 1 Mr. Daly, anything to add? 2 MR. DALY: Nothing to add. Just, again, 3 to encourage you to approve the settlements. 4 CHAIR KASSEKERT: Okay. 5 MR. McDONOUGH: I echo that. Thank you. 6 CHAIR KASSEKERT: Very good. 7 Any questions? 8 COMMISSIONER FEDORKO: Motion to approve 9 the stipulation of settlement and; A, assess a 10 civil penalty of $2500 against Atlantic City 11 Showboat, Inc.; B, assess a civil penalty of 12 $4500 against VendingData Corporation; C, 13 dismiss as moot Petition No. 0240703; D, permit 14 VendingData Corporation to withdraw its pending 15 initial related gaming CSI license application 16 subject to the conditions in the order, 17 including VendingData shall not be eligible to 18 apply for a license or registration or approval 19 until one year has expired from the date of the 20 withdrawal. 21 COMMISSIONER FRULIO: Second. 22 CHAIR KASSEKERT: The motion has been 23 made and seconded. All in favor? 24 (Ayes.) 25 CHAIR KASSEKERT: Opposed? 0027 1 (No response.) 2 CHAIR KASSEKERT: Motion carries. 3 Thank you. 4 MR. DALY: Thank you. 5 MR. McDONOUGH: Thank you. 6 MR. NANCE: Item No. 12, petition, of 7 Knoll, Inc., for a waiver of qualification 8 requirement of Columbia Wanger Asset 9 Management, LP, and Columbia Acorn Trust. 10 Miss Nagengast? 11 MS. NAGENGAST: Chair and Commissioners, 12 in this petition the Petitioners are seeking a 13 waiver of the qualification requirement for 14 Columbia Wanger Asset Management, LP, and 15 Columbia Acorn Trust because they believe they 16 are both institutional investors. 17 Marie Jones on behalf of the Petitioners 18 and Mr. McDonough on behalf of the Division. 19 CHAIR KASSEKERT: Good morning, Miss 20 Jones. 21 MS. JONES: Good morning, Chair, 22 Commissioners. 23 As Miss Nagengast said, this is the 24 petition of Knoll, Inc., for waiver of Columbia 25 Wanger Asset Management and Columbia Acorn 0028 1 Trust. This is a straightforward institutional 2 investor waiver. They hold approximately 11 3 percent. Columbia Wanger is a registered 4 investment adviser, and Columbia Acorn Trust is 5 a registered investment company. They've also 6 certified on their behalf. 7 Thank you. 8 CHAIR KASSEKERT: Thank you. 9 Mr. McDonough? 10 MR. McDONOUGH: I filed a response dated 11 February 13th this year in which I recommended 12 this petition be granted. 13 CHAIR KASSEKERT: Thank you. 14 MR. McDONOUGH: Thank you. 15 CHAIR KASSEKERT: Any questions for the 16 parties? 17 COMMISSIONER EPPS: Madame Chair, I move 18 that we grant the petition of Knoll, Inc., and 19 waive the qualification of Columbia Wanger 20 Asset Management, LP, and Columbia Acorn Trust 21 pursuant to NJAC 19:51-1.14(b)3 and NJSA 22 5:12-85(f) based on its status as an 23 institutional investor as defined by NJSA 24 5:12-27.1. 25 COMMISSIONER FRULIO: Second. 0029 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 Thank you. 8 MS. JONES: Thank you. 9 MR. McDONOUGH: Thank you. 10 MR. NANCE: Item No. 13, petition of 11 Xerox Corporation for a waiver of qualification 12 requirement for Dodge & Cox. 13 Miss Nagengast? 14 MS. NAGENGAST: Chair and Commissioners, 15 this petition is similar to the previous ones. 16 Dodge & Cox is seeking waiver of the 17 qualification based on its status as an 18 institutional investor. 19 James Flynn is here on behalf of the 20 Petitioners, and Mr. McDonough is here on 21 behalf of the Division. 22 CHAIR KASSEKERT: Good morning, Mr. 23 Flynn. 24 MR. FLYNN: Good morning. 25 This is, as indicated, a straightforward 0030 1 request for qualification requirement waiver 2 for Dodge & Cox as an institutional investor. 3 They own a whole beneficial ownership of 4 approximately 9.6 percent of the stock of Xerox 5 Corporation, but that is actually spread among 6 their clients. No individual client owns more 7 than five percent, and we would request that 8 the waiver be granted. 9 CHAIR KASSEKERT: Thank you. 10 Mr. McDonough? 11 MR. McDONOUGH: I filed a response dated 12 February 6th this year. We believe that a 13 waiver is appropriate here, and we would ask 14 you to approve the petition. 15 CHAIR KASSEKERT: Thank you. 16 Any questions? 17 COMMISSIONER FRULIO: Move to grant the 18 petition of Xerox Corporation and waive the 19 qualification of Dodge & Cox pursuant to NJAC 20 19:51-1.14(b)3 and NJSA 5:12-85(f) based on its 21 status as an institutional investor as defined 22 by NJSA 5:12-27.1, subject to the conditions in 23 the order. 24 COMMISSIONER FEDORKO: Second. 25 CHAIR KASSEKERT: The motion has been 0031 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. 14, petition of 9 Xerox Corporation for waiver of qualification 10 requirement of FMR Corp. has been withdrawn. 11 Item No. 15, petition of Harrah's 12 Atlantic City Operating Company, LLC, for an 13 amendment to its operation certificate to 14 expand and reconfigure its gaming floor. 15 Mr. Kell? 16 MR. KELL: Good morning, Madame Chair 17 and Commissioners. 18 CHAIR KASSEKERT: Good morning. 19 MR. KELL: Dennis Daly is here 20 representing Harrah's in this matter. Tim 21 Ficchi, I think, is representing the Division. 22 And a draft resolution has been 23 circulated granting relief for certain 24 conditions. 25 CHAIR KASSEKERT: Thank you. 0032 1 Mr. Daly? 2 MR. DALY: Thank you, Chair. 3 Madame Chair, we have reviewed the draft 4 resolution, have no problem with it, or any of 5 the conditions cited therein and urge to you 6 adopt it. 7 CHAIR KASSEKERT: Thank you. 8 MR. FICCHI: Yes. Thank you, Chair and 9 Commissioners. Dennis will be up there. 10 The Division has reviewed the draft 11 stipulation, and we have no objection to its 12 it's adoption. We performed our own inspection 13 of the facility, and everything was in order as 14 represented by the Petitioner. 15 CHAIR KASSEKERT: Thank you. 16 Any questions? 17 COMMISSIONER FEDORKO: Motion to adopt 18 the draft resolution and approve the petition 19 of Harrah's Atlantic City Operating Company, 20 LLC, for an amendment to its certificate of 21 operation and casino hotel alcoholic beverage 22 license, to permit the expansion and 23 reconfiguration of its gaming floor subject to 24 the conditions in the resolution. 25 COMMISSIONER FRULIO: Second. 0033 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. DALY: Thank you, again. 8 MR. NANCE: Item No. 16, petition of 9 Adamar of New Jersey, Inc., for amendments to 10 its certificate of is reconfigure its gaming 11 floor. 12 Mr. Kell? 13 MR. KELL: Good morning. Joe Dougherty 14 is here representing the Petitioner in this 15 matter. Tim Ficchi is still here for the 16 Division. 17 And should you have any questions, 18 Principal Inspector Carolyn Ford is here. 19 CHAIR KASSEKERT: Thank you. 20 Mr. Dougherty? 21 MR. DOUGHERTY: Good morning. For the 22 record, Joe Dougherty here on behalf of the 23 Petitioner. 24 Good morning, Madame Chair, members of 25 the Board. 0034 1 We have reviewed the petition 2 prepared -- or the resolution prepared in the 3 matter and have no objection to it and would 4 ask that you do adopt it. 5 CHAIR KASSEKERT: Thank you. 6 Mr. Ficchi? 7 MR. FICCHI: Again, Madame Chair, 8 Commissioners, the Division has reviewed the 9 draft resolution and have no objection to it, 10 and we've also reviewed what was represented 11 and everything checks out to the satisfaction 12 of the Division. 13 Thank you. 14 CHAIR KASSEKERT: Thank you. 15 Any questions? 16 COMMISSIONER FRULIO: Move to -- 17 COMMISSIONER EPPS: Madame Chair, I move 18 we adopt the draft resolution and approve the 19 petition of Adamar of New Jersey, Inc., for its 20 amendment to its certificate of operation and 21 the casino hotel alcoholic beverage license to 22 permit the reconfiguration of its gaming floor 23 subject to the conditions in the resolution. 24 COMMISSIONER FRULIO: Second. 25 CHAIR KASSEKERT: The motion has been 0035 1 made and seconded. All in favor? 2 (Ayes.) 3 CHAIR KASSEKERT: Opposed? 4 (No response.) 5 CHAIR KASSEKERT: Motion carries. 6 Thank you. 7 MR. DOUGHERTY: Thank you. 8 MR. NANCE: Item No. 17, proposed 9 publication of amendments and new rule for 10 "Winner's Pot" poker. 11 Mr. Mamolen? 12 MR. MAMOLEN: Good morning, Madame Chair 13 and Commissioners. 14 This matter is now ripe for publication. 15 It's -- as you recall, it's another five-card 16 stud poker variation which the pots accumulated 17 for the benefit of all players to win. And the 18 house, of course, extracts a commission. And 19 they also place certain wagers after a card 20 fold by the player to an inventory, comprise 21 the house advantage. 22 At this point you have the staff's memo. 23 And in it, of course, is noted the adjustments 24 to the game made by Bally's, the casino 25 sponsor. Which, of course, increase pay out 0036 1 odds and make a minor adjustment to the way the 2 commission is calculated. 3 Again, it is before you for publication. 4 CHAIR KASSEKERT: Thank you. 5 Mr. Ficchi? 6 MR. FICCHI: Thank you, Chair and 7 Commissioners. 8 This is being reviewed by the house 9 advantage at this point and that the results of 10 that will be provided to you when it is 11 complete, which should be very shortly, 12 hopefully, within the next two or three weeks. 13 CHAIR KASSEKERT: Thank you. 14 Any questions? 15 COMMISSIONER FRULIO: Motion to approve 16 for publication. 17 COMMISSIONER FEDORKO: Second. 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 MR. FICCHI: Thank you. 0037 1 MR. NANCE: Item No. 18, a proposed 2 adoption for amendment for new rule for "Fire 3 Bet" in craps. 4 Mr. Mamolen? 5 MR. MAMOLEN: This matter is before you 6 for a final adoption. It's a side wager in 7 craps. It's the point-making side wager, we 8 call it. And we've received one public comment 9 from the Division which did not oppose the 10 commission adoption. 11 CHAIR KASSEKERT: Thank you. 12 Any questions? 13 COMMISSIONER FRULIO: Adopt as 14 published. 15 COMMISSIONER FEDORKO: Second. 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 MR. MAMOLEN: Thank you. 23 MR. NANCE: Item No. 19, petition of 24 Harrah's Entertainment, Inc., Harrah's 25 Operating Company, Inc., Harrah's Atlantic City 0038 1 Operating Company, LLC, Showboat Atlantic City, 2 Operating Company, LLC, Bally's Park Place, 3 Inc., and Boardwalk Regency Corporation 4 requesting permission for Joseph Tyrrell to 5 perform the duties and exercise the powers of 6 Vice President of Governmental Affairs for 7 Harrah's Entertainment, Inc., and Harrah's 8 Operating Company, Inc., pending plenary 9 qualification. 10 Miss Frank? 11 MS. FRANK: Good morning, Chair and 12 Commissioners. 13 A draft resolution of Mr. Tyrrell's 14 temporary qualification has been circulated to 15 the parties. 16 I believe we have Dennis Daly and Tim 17 Lowry. 18 MR. DALY: And Joe Tyrrell. 19 MR. TYRRELL: Oh, no. Mr. Tyrrell. 20 MS. FRANK: Joe Tyrrell. Excuse me. 21 (Laughter.) 22 CHAIR KASSEKERT: We have the Applicant. 23 So we can question him closely. 24 MS. FAUNTLEROY: It's so rare. 25 MS. FRANK: And we also have Mr. 0039 1 McDonough for the Division. 2 CHAIR KASSEKERT: Thank you. 3 Mr. Daly? 4 MR. DALY: Commissioners, we've been 5 provided with a draft resolution. If you have 6 any questions for Mr. Tyrrell, we'd be glad to 7 make him available to you. I understand to 8 you're not unacquainted with him. 9 And other than that, if you have no 10 questions, we'd ask that you adopt the draft 11 resolution. 12 CHAIR KASSEKERT: Thank you. 13 Any questions for Mr. Tyrrell? 14 Commissioner Fedorko? You look like you 15 have a question. 16 COMMISSIONER FEDORKO: I better not, 17 Chair. 18 CHAIR KASSEKERT: Okay. 19 Commissioner Epps, any questions? 20 (No response.) 21 CHAIR KASSEKERT: Okay. Mr. McDonough? 22 MR. McDONOUGH: Thank you. 23 Dorothy Turi of the Division sent a 24 letter to you dated March 11th, 2008, 25 recommending approval of this petition. She 0040 1 has reviewed the draft resolution, and the 2 Division has no objection to it. 3 Thank you. 4 CHAIR KASSEKERT: Thank you. 5 Any questions for Mr. McDonough? 6 Besides why the Division would not object to 7 this Applicant? 8 Anybody willing to make a motion? 9 COMMISSIONER EPPS: Madame Chair, I move 10 that we adopt the draft resolution and find 11 Joseph Tyrrell temporarily qualified and 12 authorize him to assume the duties and exercise 13 the powers of Regional Vice President of 14 Governmental Affairs for Harrah's 15 Entertainment, Inc., and Harrah's Operating 16 Company, Inc., subject to the conditions 17 contained in NJAC 19:43-2.7, which among other 18 things, require that he file a PHD/MJ and New 19 Jersey supplemental by May 1st, 2008. 20 COMMISSIONER FRULIO: Second. 21 CHAIR KASSEKERT: Motion is made and 22 seconded. This is a roll call vote. 23 MR. NANCE: Commissioner Frulio? 24 COMMISSIONER FRULIO: Yes. 25 MR. NANCE: Commissioner Fedorko? 0041 1 COMMISSIONER FEDORKO: Yes. 2 MR. NANCE: Commissioner Epps? 3 COMMISSIONER EPPS: Yes. 4 MR. NANCE: Chair Kassekert? 5 CHAIR KASSEKERT: Yes. 6 MR. NANCE: The record will reflect that 7 the motion is unanimous. 8 CHAIR KASSEKERT: Congratulations, Mr. 9 Tyrrell. 10 MR. TYRRELL: Thank you. 11 MR. DALY: Mr. Tyrrell? Thank you. 12 CHAIR KASSEKERT: His mother thanks us. 13 MR. TYRRELL: Thank you. 14 MR. NANCE: In accordance with 15 Resolution No. 07-12-12-26, the next closed 16 session of the Commission shall be held on 17 Wednesday, April 30th, 2008, at 9:15 p.m. -- 18 excuse me -- 9:15 a.m. in the Commission 19 offices. 20 It is now time for the public 21 participation portion of the meeting. 22 CHAIR KASSEKERT: Is there anyone from 23 the public that wishes to be heard? 24 (No response.) 25 CHAIR KASSEKERT: Seeing no one, I'll 0042 1 declare this portion of the meeting closed and 2 entertain a motion to adjourn. 3 COMMISSIONER FEDORKO: Motion to 4 adjourn. 5 COMMISSIONER FRULIO: Second. 6 CHAIR KASSEKERT: The motion has been 7 made and seconded. All in favor? 8 (Ayes.) 9 CHAIR KASSEKERT: Opposed? 10 (No response.) 11 CHAIR KASSEKERT: Motion carries. 12 (Public Meeting 08-04-16 was adjourned 13 at 10:56 a.m.) 14 15 16 17 18 19 20 21 22 23 24 25 0043 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: April 18, 2008 23 My Commission Expires on July 10, 2009 24 ID No 2062871 25