1 1 STATE OF NEW JERSEY 2 CASINO CONTROL COMMISSION 3 - - - - - - - - - - - - - - - - - - - 4 5 PUBLIC MEETING NO. 08-09-17 6 7 - - - - - - - - - - - - - - - - - - - 8 9 Wednesday, September 17, 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 10:31 p.m. to 11:07 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 2 CASINO CONTROL COMMISSION: LINDA M. KASSEKERT, CHAIR 3 WILLIAM T. SOMMELING, VICE CHAIR MICHAEL A. FEDORKO, COMMISSIONER 4 MICHAEL C. EPPS, 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 LEONARD J. DIGIACOMO, ASSISTANT GENERAL COUNSEL MARY WOZNIAK, ASSISTANT GENERAL COUNSEL 10 TERESA M. NAGENGAST, SENIOR COUNSEL SETH H. BRILLIANT, SENIOR COUNSEL 11 LON E. MAMOLEN, SENIOR COUNSEL ROBERT A. MONCRIEF, COUNSEL 12 CLAIRE FRANK, PROGRAM MANAGER 13 DIVISION OF GAMING ENFORCEMENT: DEPUTY ATTORNEYS GENERAL 14 BRIAN BISCIEGLIA, DEPUTY ATTORNEY GENERAL 15 TIMOTHY C. FICCHI, DEPUTY ATTORNEY GENERAL MARY JO FLAHERTY, DEPUTY ATTORNEY GENERAL 16 LOUIS ROGACKI, DEPUTY ATTORNEY GENERAL 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. 3 DIANNA W. FAUNTLEROY, GENERAL COUNSEL BRIAN C. BISCIEGLIA, DEPUTY ATTORNEY 3 GENERAL JAMES J. CARROLL, III, ESQ. 4 FOR: SEAN V. LUONG ITEM NO. 4 DIANNA W. FAUNTLEROY, GENERAL COUNSEL 5 LOUIS ROGACKI, DEPUTY ATTORNEY GENERAL FOX ROTHSCHILD 6 MARIE JIACOPELLO JONES, ESQ. FOR: TCS AMERICA, INC 7 ITEM NO. 7 TERESA M. NAGENGAST, SENIOR COUNSEL LOUIS ROGACKI, DEPUTY ATTORNEY GENERAL 8 FOX ROTHSCHILD MARIE JIACOPELLO JONES, ESQ. 9 FOR: UNITED STATES PLAYING CARD COMPANY ITEM NO. 8 TERESA M. NAGENGAST, SENIOR COUNSEL 10 LOUIS ROGACKI, DEPUTY ATTORNEY GENERAL FOX ROTHSCHILD 11 MARIE JIACOPELLO JONES, ESQ. FOR: UNITED STATES PLAYING CARD COMPANY 12 ITEM NO. 9 LEONARD J. DiGIACOMO, ASSISTANT GENERAL COUNSEL 13 MARY JO FLAHERTY, DEPUTY ATTORNEY GENERAL PASHMAN STEIN 14 SEAN MACK, ESQ. FOR: TRUSTEE/CONSERVATOR JUSTICE STEIN 15 RICHARD DELUCRY, ESQ. FOR: JP MORGAN 16 ITEM NO. 10 MARY WOZNIAK, ASSISTANT GENERAL COUNSEL JACK ADAMS, DEPUTY ATTORNEY GENERAL 17 STERNS & WEINROTH PAUL M. O'GARA, ESQ. 18 FOR: BALLY'S PARK PLACE, INC., HARRAH'S ATLANTIC CITY OPERATING COMPANY, LLC, 19 SHOWBOAT ATLANTIC CITY OPERATING COMPANY, LLC, AND BOARDWALK REGENCY CORP. 20 ITEM NO. 12 SETH H. BRILIANT, SENIOR COUNSEL TIMOTHY C. FICCHI, DEPUTY ATTORNEY GENERAL 21 FOX ROTHSCHILD MARIE JIACOPELLO JONES, ESQ. 22 FOR: WMS GAMING, INC. ITEM NO. 13 ROBERT A. MONCRIEF, COUNSEL 23 TIMOTHY C. FICCHI, DEPUTY ATTORNEY GENERAL TIMOTHY J. LOWRY, JR., ESQ. 24 FOR: BALLY'S PARK PLACE, INC. 25 4 1 AGENDA PUBLIC MEETING NO. 08-09-17 2 September 17, 2008, 10:31 a.m. ITEM PAGE VOTE 3 1 Ratification of the minutes of the 8 8 September 3, 2008, public meeting 4 2 Applications for employee and casino service industry licenses: 5 12 applications for initial and/or renewal 9 9 of casino key and casino employee licenses 6 17 applications for initial and/or renewal of casino key and casino employee licenses 7 Casino key employee license application 10 10 for Christopher L. Latil and for qualification 8 as Vice President Plan and Analysis for Trump Taj Mahal Associates, LLC 9 3 Stipulations of settlement and consent agreements: 10 a) Thomas J. Recchione (07-0553-EA) 11,52 13 b) Juan Roman (08-0340-EA) 11 13 11 c) Ronda D. Conner (07-0782-ER) 11 13 (a/k/a Ronda D. Smith-Parker) 12 d) Anthony M. Stokes (08-0044-ER) 11 13 e) Austin P. Johnson-Brown, Jr. 11 13 13 (08-0418-RC) f) Mustafa A. Hameen (08-0620-EA) 11 13 14 g) Sean V. Luong (07-0791-EA) 11 13 (07-0790-RC) 15 h) Stephen W. Pynn (08-0586-EA) 11 13 4 Stipulation of settlement in renewal 13 15 16 application of TCS America, Inc. (08-0210-SR) 5 Applications for suspension: 17 a) Patrick D. Brooks (08-0710-RC) 15 20 b) Gustavo Cruz (08-0712-RC) 15 20 18 c) Jennie A. Pannell (08-0671-RC) 15 20 d) Louis Watson (08-0711-RC) 15 20 19 6 Consideration of forfeiture orders in State v.: 20 a) Boardwalk Regency Corporation 21 23 (d/b/a Caesars Atlantic City)(08-0212-VC) 21 b) Boardwalk Regency Corporation 21 23 (d/b/a Caesars Atlantic City)(08-0503-VC) 22 c) Trump Taj Mahal Associates (08-0291-VC) 21 23 7 Petition of United States Playing Card 24 26 23 Company for waiver of qualification (PRN 1270803) 8 Petition of United States Playing Card 27 29 24 Company for waiver of qualification requirement of Capital Group International, Inc., and 25 Capital Guardian Trust Company (PRN 2260707) 5 1 CONTINUED AGENDA PUBLIC MEETING NO. 08-09-17 2 September 17, 2008, 10:31 a.m. ITEM PAGE VOTE 3 9 Further consideration of the request by 30 35 the Conservator and Trustee for former 4 casino licensee Adamar of New Jersey, Inc., for permission to retain investment co-advisors 5 10 Petition of Bally's Park Place, Inc., 36 39 Harrah's Atlantic City Operating Company, 6 LLC, Showboat Atlantic City Operating Company, LLC, and Boardwalk Regency Corp., for approval 7 of the issuance by an entity qualifier of certain securities pursuant to NJAC 19:43-2.8 8 and other relief (PRN 2490801) 11 Readoption of NJAC 19:45 (gaming equipment) 39 40 9 12 Petition of WMS Gaming, Inc., for 40 42 Permission to terminate its "Reel Heroes" 10 slot machine system and to transfer the progressive jackpot (PRN 2390804) 11 13 Petition of Bally's Park Place, Inc., for 42 48 an amendment to its operation certificate 12 and casino hotel alcoholic beverage license to expand and reconfigure its gaming floor 13 (PRN 2400802) 14 Proposed publication of amendments to 48 49 14 NJAC 19:45-1.12 and 19:46-1.18 (reduced frequency of card changing) 15 15 Proposed adoption of amendment to NJAC 49 50 19:45-1.33 (negative poker revenue) 16 17 18 19 20 21 22 23 24 25 6 1 E X H I B I T S : 2 NO. DESCRIPTION EVD 3 ITEM 2 4 P-1 Remand for hearings 12 license X 5 P-2 Grant 17 licenses X 6 7 ITEM 9 8 P-1 Moelis & Company, LLC, engagement X Letter, September 2008 9 P-2 JP Morgan Securities, Inc., engagement X Letter of September 2008 10 P-3 Three-party agreement letter of X September 2008 11 D-1 Report of 9-20-08 by Mary Jo Flaherty X 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (Exhibits retained by Commission.) 7 1 (Public Meeting 08-09-17 was commenced 2 at 10:31 a.m.) 3 MR. NANCE: Good morning. I'd like to 4 read an opening 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 June 23, 2008, filed with the 10 Secretary of State at the State House in 11 Trenton, New Jersey, a notice of this hearing. 12 On June 23rd, 2008, copies were mailed to 13 subscribers. 14 Members of the press will be permitted 15 to take photographs, and we ask that this be 16 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 Would everyone please stand for the 22 Pledge of Allegiance. 23 (The flag salute was recited.) 24 CHAIR KASSEKERT: Good morning. 25 MR. NANCE: Good morning. 8 ITEM NO. 1 1 The matters discussed in closed session 2 were: Employee and enterprise license matters; 3 The Commission approved the September 4 13th, 2008, closed-session minutes. 5 Litigation update regarding: 6 Warren Lackland and Lewis M. Springer, 7 Jr., versus the State of New Jersey and the 8 Casino Control Commission; 9 Tyron J. Floyd versus the Casino 10 Control Commission and Sands Hotel and Casino; 11 Petition of Tropicana, et al., for 12 renewal of casino license; 13 Application of Dana White for renewal of 14 a casino employee license; 15 And petition of Highgate Steel for 16 release of monies. 17 Item No. 1, ratification of the minutes 18 of September 3rd, 2008, public meeting. 19 VICE CHAIR SOMMELING: Move to approve. 20 COMMISSIONER 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 ended as Exhibit List 5 1 and 2. 6 Exhibit List 1 consists of 12 7 applications for initial and/or renewal of 8 casino key and casino employee licenses. 9 The Division has objected to licensure. 10 COMMISSIONER FEDORKO: Motion to remand 11 for hearings. 12 VICE CHAIR SOMMELING: Second. 13 COMMISSIONER EPPS: Second. 14 CHAIR KASSEKERT: The motion has been 15 made and seconded. All in favor? 16 (Ayes.) 17 CHAIR KASSEKERT: Opposed? 18 (No response.) 19 CHAIR KASSEKERT: Motion carries. 20 MR. NANCE: Exhibit List 2 consists of 21 17 applications for initial and/or renewal of 22 casino key and casino employee licenses. 23 Staff and the Division has recommended 24 that these licenses be granted. 25 COMMISSIONER EPPS: Motion to grant 10 ITEM NO. 2 1 application. 2 COMMISSIONER FEDORKO: Second. 3 VICE CHAIR SOMMELING: Second. 4 CHAIR KASSEKERT: The motion has been 5 made and seconded. All in favor? 6 (Ayes.) 7 CHAIR KASSEKERT: Opposed? 8 (No response.) 9 CHAIR KASSEKERT: Motion carries. 10 MR. NANCE: For consideration is a 11 casino key employee license application for 12 Christopher L. Latil for qualification as Vice 13 President, Plan Analysis for Trump Taj Mahal 14 Associates, LLC. 15 Staff and the Division have recommended 16 that this application be granted. 17 COMMISSIONER FEDORKO: Motion to grant 18 initial key license and for qualification. 19 VICE CHAIR SOMMELING: Second. 20 COMMISSIONER EPPS: Second. 21 CHAIR KASSEKERT: Motion is made and 22 seconded. This is a roll call vote. 23 MR. NANCE: Commissioner Fedorko? 24 COMMISSIONER FEDORKO: Yes. 25 MR. NANCE: Commissioner Epps? 11 ITEM NO. 3 1 COMMISSIONER EPPS: Yes. 2 MR. NANCE: Vice Chair Sommeling? 3 VICE CHAIR SOMMELING: Yes. 4 MR. NANCE: Chair Kassekert? 5 CHAIR KASSEKERT: Yes. 6 MR. NANCE: The record will reflect that 7 the motion is unanimous. 8 Item No. 3, stipulations of settlement 9 and consent agreements. When I call your name, 10 please come forward, standing behind the center 11 table, spreading across the room so that you 12 may be seen: Thomas Recchione, Juan Roman, 13 Ronda Conner, Anthony Stokes, Austin Brown, 14 Jr., Mustafa Hameen, Sean Luong, and Stephen 15 Pynn. 16 CHAIR KASSEKERT: Has everyone whose 17 name been called come forward? Okay. 18 I'm going to ask that you each state 19 your name for record starting with you, sir. 20 MR. LUONG: My name is Sean Luong. 21 MR. STOKES: Anthony Stokes. 22 MR. JOHNSON-BROWN: Austin Brown. 23 MR. ROMAN: Juan Roman. 24 MR. HAMEEN: Mustafa Hameen. 25 CHAIR KASSEKERT: Thank you. Who -- 12 ITEM NO. 3 1 MR. CARROLL: James Carroll on behalf of 2 Mr. Luong. 3 CHAIR KASSEKERT: Thank you. 4 MR. CARROLL: Good morning, Judge. 5 CHAIR KASSEKERT: In a moment we're 6 going to vote on the stipulations which you've 7 agreed to with the Division of Gaming 8 Enforcement. I'm going to ask at this point if 9 any of you wish to be heard on your matter. 10 You don't have to say anything if you don't 11 want to. 12 Does anyone wish to be heard? 13 (No response.) 14 CHAIR KASSEKERT: Okay. Mr. Biscieglia? 15 MR. BISCIEGLIA: Thank you, 16 Commissioners, and -- good morning, Chair, 17 Commissioners. 18 The Division has nothing further. Ask 19 that the stipulations be adopted as submitted, 20 and we'll answer any questions that the 21 Commission has. 22 CHAIR KASSEKERT: Thank you. 23 Are there any questions for the Divsion? 24 VICE CHAIR SOMMELING: Madame Chair, I 25 move to approve the stipulations. 13 ITEM NO. 4 1 COMMISSIONER 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 Thank you for coming. Good luck. 9 FROM THE FLOOR: Thank you. 10 MR. NANCE: Item No. 4, stipulation of 11 settlement and renewal application of TCS 12 America, Inc. 13 Miss Fauntleroy? 14 MS. FAUNTLEROY: Sorry. I guess we have 15 for the Petitioner, Marie Jones, and for the 16 Division of Gaming Enforcement, Lou Rogacki. 17 This is a stipulation of settlement that 18 was initially presented back in -- before the 19 Commission, I believe back in April and 20 remanded for further proceedings in light of 21 there being discussion regarding a condition 22 that the Division sought. 23 CHAIR KASSEKERT: Thank you. 24 Good morning, Miss Jones. 25 MS. JONES: Good morning, Chair 14 ITEM NO. 4 1 Kassekert, Commissioners. Marie Jones from Fox 2 Rothschild here on behalf of TCS America. 3 We have agreed with the stipulation, and 4 there was a condition in there that the 5 Division and my client would agree as to the 6 form of the financial statements. We have done 7 that. We are providing audited financial 8 statements, and we have provided the 2007 9 fiscal year. 10 Thank you. 11 CHAIR KASSEKERT: Thank you. 12 Mr. Rogacki? 13 MR. ROGACKI: Good morning, Chair, 14 Commissioners. Lou Rogacki on behalf of the 15 Division. 16 As Miss Jones said, the stipulation was 17 entered, and we agreed on audited financial 18 statements. And the Division is in receipt of 19 audited financial statements from TCS America 20 for the years 2007 and 2006 from the company. 21 Those were received on July 18th. 22 Thank you. 23 CHAIR KASSEKERT: Thank you. 24 Any questions? 25 COMMISSIONER SOMMELING: No questions, 15 ITEM NO. 5 1 Madame Chair. 2 COMMISSIONER FEDORKO: Motion to approve 3 the stipulation of settlement and grant the 4 application of renewal of casino service 5 industry license subject to the condition that 6 the Applicant file annual financial reports 7 with the Division. 8 VICE CHAIR SOMMELING: Second. 9 CHAIR KASSEKERT: The motion has been 10 made and seconded. All in favor? 11 (Ayes.) 12 CHAIR KASSEKERT: Opposed? 13 (No response.) 14 CHAIR KASSEKERT: Motion carries. 15 Thank you. 16 MS. JONES: Thank you. 17 MR. ROGACKI: Thank you. 18 MR. NANCE: Item No. 5, applications for 19 suspension for Patrick D. Brooks, Gustavo Cruz, 20 Jennie Pannell, and Louis Watson. 21 Miss Frigen? 22 MS. FRIGEN: Before we hear from the 23 Division, let me ask whether any of these 24 individuals are present or represented today? 25 (No response.) 16 ITEM NO. 5 1 MS. FRIGEN: Apparently there's no one 2 here in connection with this matter. 3 CHAIR KASSEKERT: Mr. Biscieglia, you 4 may proceed. 5 MR. BISCIEGLIA: Thank you. 6 The Division would like to point out 7 that with regards to A, Patrick Brooks, an 8 arraignment conference was scheduled for the 9 indicted on September 22nd, 2008. 10 In regards to B and C, they are both 11 pending grand jury with no date set. 12 And with regards to D, Louis Watson, 13 that is pending a status conference on October 14 1st, 2008. 15 And the Division will answer any 16 questions that the Commission may have. 17 CHAIR KASSEKERT: Thank you. 18 MR. BISCIEGLIA: Thank you. 19 CHAIR KASSEKERT: Are there any 20 questions? 21 (Conferring.) 22 COMMISSIONER EPPS: Mr. Biscieglia, I 23 have a question with respect to B. 24 MR. BISCIEGLIA: Gustav Cruz. 25 COMMISSIONER EPPS: Cruz. 17 ITEM NO. 5 1 MR. BISCIEGLIA: Yes. 2 COMMISSIONER EPPS: The Division is 3 seeking to suspend on that? 4 MR. BISCIEGLIA: Yes. He caused quite a 5 bit of damage, more than $500 in damages 6 through blatant vandalism in a casino while 7 holding a registration. 8 COMMISSIONER EPPS: And you're going to 9 seek to revoke his license and registration, 10 also? 11 MR. BISCIEGLIA: Yes. We do so in the 12 same complaint. 13 CHAIR KASSEKERT: Is this consistent 14 with past motions to suspend and then -- and 15 then take away the license? Because I know 16 we -- there have been issues before where we've 17 had similar types of cases, and I just would 18 like to know why this case is different. 19 MR. BISCIEGLIA: What I would answer is 20 consistent -- I think it's consistent in the 21 belief that certain acts that happen within the 22 casinos themselves cause the Division to seek 23 the suspension in addition to seeking the 24 revocation. I cannot speak of every vandalism 25 case. I can say this is the first one I've 18 ITEM NO. 5 1 actually handled involving vandalism by a 2 casino employee in a casino. 3 CHAIR KASSEKERT: Uh-hum. 4 MR. BISCIEGLIA: But I believe, yes, 5 that the application is consistent with the 6 overriding policy of protecting the casino 7 operation. I mean, for somebody to basically 8 go out of their way to damage 52 pieces of, you 9 know, seats, that are pieces of casino property 10 for no other reason, it sounds like, than 11 basically childish -- I -- the reasoning really 12 isn't even set forth. I mean, it's just the 13 product of a troubled mind, it seems. 14 CHAIR KASSEKERT: Okay. I'm just 15 concerned that there be some -- that there be 16 consistency. And I think we've had some 17 examples in the past where you've declined not 18 to. And I'm just trying to see if -- you know, 19 do you think it's the amount of money? I 20 think -- 21 MR. BISCIEGLIA: The amount of money is 22 $500, so it does put it into third degree. 23 CHAIR KASSEKERT: Yeah. Right. 24 MR. BISCIEGLIA: In the third-degree 25 felony arena, which that may have some bearing, 19 ITEM NO. 5 1 as I said. 2 CHAIR KASSEKERT: Uh-hum. 3 MR. BISCIEGLIA: As I said, I'm not 4 familiar with some of the vandalism cases 5 you're talking about, but if they were less 6 than $500 then would not result in a 7 third-degree offense. That may have played a 8 part in it. 9 CHAIR KASSEKERT: Okay. 10 MR. BISCIEGLIA: In this case, though, 11 we do have a petty third-degree offense, more 12 than $500 in damages, which, you know, that 13 comes out of the casino's pocket. 14 CHAIR KASSEKERT: Uh-hum. 15 Let me ask. Are there any other 16 questions? 17 VICE CHAIR SOMMELING: No other 18 questions, Madame Chair. 19 CHAIR KASSEKERT: You want to vote 20 separately on this particular one or -- 21 COMMISSIONER EPPS: Yeah. That's 22 probably better. 23 CHAIR KASSEKERT: Okay. 24 COMMISSIONER EPPS: I would move 25 suspension of the credentials in Items 5a, c, 20 ITEM NO. 5 1 and d. 2 VICE CHAIR SOMMELING: Second. 3 CHAIR KASSEKERT: The motion has been 4 made and seconded. All in favor? 5 (Ayes.) 6 CHAIR KASSEKERT: Opposed? 7 (No response.) 8 CHAIR KASSEKERT: Motion carries. 9 Is there a motion for Mr. Cruz? Item b. 10 COMMISSIONER FEDORKO: Motion to 11 suspend. 12 CHAIR KASSEKERT: Is there a second? 13 VICE CHAIR SOMMELING: Second. 14 CHAIR KASSEKERT: Motion has been made 15 and seconded. All in favor? 16 (Ayes.) 17 CHAIR KASSEKERT: Any vote in 18 opposition? 19 COMMISSIONER EPPS: Nay. 20 CHAIR KASSEKERT: Commissioner Epps 21 votes no. 22 Thank you. 23 Commissioner Sommeling, did you vote? 24 MS. FRIGEN: Did you vote? 25 VICE CHAIR SOMMELING: I voted. 21 ITEM NO. 6 1 CHAIR KASSEKERT: Did you vote yes or 2 no? 3 VICE CHAIR SOMMELING: Yes. 4 CHAIR KASSEKERT: Yes. Okay, so suspend 5 by vote of three/one. 6 MR. BISCIEGLIA: Thank you. 7 CHAIR KASSEKERT: Everybody had a look 8 on their face. I thought I heard him speak 9 but -- 10 MR. NANCE: Item No. 6, consideration of 11 forfeiture of orders in State versus Boardwalk 12 Regency Corporation, Boardwalk Regency 13 Corporation, and Trump Taj Mahal. 14 MS. FRIGEN: Madame Chair, 15 Commissioners, these three complaints concern 16 money that the Division is seeking to have 17 forfeited that was -- the casinos are retaining 18 from gambling activity by either underage or 19 patrons that were on the self-exclusion list at 20 the time of their gaming activity. 21 We have received letters from each of 22 the casino attorneys advising that they have -- 23 are not contesting the forfeiture action. 24 Likewise, we sent notice to all the patrons, 25 and we have not heard from anyone contesting 22 ITEM NO. 6 1 the forfeiture. 2 The matter is now presented to the 3 Commissioner for final action. 4 Before we hear from the Division, let me 5 just inquire. There's no one here in 6 connection with this matter? 7 (No response.) 8 MS. FRIGEN: Apparently not. 9 CHAIR KASSEKERT: Mr. Stebbins? 10 MR. STEBBINS: Good morning, Madame 11 Chair, members of the Commission. 12 Miss Frigen presented the matter 13 adequately -- certainly better than adequately, 14 in my view -- and I'm ready to answer any 15 questions that you may have. 16 They're underage, self-excluded, a 17 little bit of this, a little bit of that, and 18 away we go. 19 CHAIR KASSEKERT: Thank you. 20 (Laughter.) 21 CHAIR KASSEKERT: Any questions? 22 COMMISSIONER SOMMELING: No questions, 23 Madame Chair. 24 COMMISSIONER EPPS: Madame Chair, due to 25 their being underaged on the date of the 23 ITEM NO. 6 1 winnings or on the self-exclusion list, the 2 money theoretically won by the individuals in 3 the three violation complaints is forfeited -- 4 or I move that due to their being underage on 5 the date of the winning or on the 6 self-exclusion list, the money theoretically 7 won by the named individuals in the three 8 violation complaints is forfeited and the two 9 casinos be required to remit the respective 10 forfeited money to the Commission in accordance 11 with NJSA 5:12-71.3(c). 12 VICE CHAIR 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 MR. STEBBINS: Thank you. 20 CHAIR KASSEKERT: I think you got a 21 compliment there. 22 MS. FRIGEN: I think so. 23 MR. STEBBINS: Just noting that this is 24 like $18,000, more than $18,000 in forfeiture 25 and that meter keeps running. 24 ITEM NO. 7 1 CHAIR KASSEKERT: Thank you. 2 MR. NANCE: Item No. 7, petition of 3 United States Playing Card Company for waiver 4 of qualification. 5 Miss Nagengast? 6 MS. NAGENGAST: Good morning, Chair, 7 Commissioners. 8 For your consideration in this matter is 9 the petition of the United States Playing Cards 10 seeking a waiver of qualification for six 11 entities associated with Glenhill. 12 Marie Jones is here on behalf of the 13 Petitioners and Lou Rogacki on behalf of the 14 Division. 15 CHAIR KASSEKERT: Thank you. 16 Good morning, Miss Jones. 17 MS. JONES: Good morning again. 18 As Miss Nagengast said, it's a petition 19 of US Playing Cards for waiver of Glenhill 20 Advisors and related entities under NJAC 21 19:51-1.14(b)(4) as they have no ability to 22 control Jarden Corporation, the ultimate parent 23 company of the United States Playing Card 24 Company. 25 Glenhill is a investment manager and, as 25 ITEM NO. 7 1 such, it does not have to be each registered as 2 an investment company or an investment advisor 3 with the SEC. However, it functions 4 significantly like those entities. It makes 5 passive investments. It files a 13g as to 6 their passive activity, and it generally does 7 not have any ability to control. 8 In addition, there are four other 9 shareholders of Glenhill who have greater 10 holdings and have the ability to control, one 11 of which is Frank -- Martin Franklin, who is 12 the CEO and Chairman of the Board of Jarden. 13 The other three entities are institutional 14 investors, one of which is greater than ten 15 percent. 16 I would be happy to address any 17 questions you have. 18 CHAIR KASSEKERT: Thank you. 19 Any questions for Miss Jones before we 20 hear from the Division? 21 COMMISSIONER SOMMELING: No questions, 22 Madame Chair. 23 CHAIR KASSEKERT: Lou? 24 MR. ROGACKI: Lou Rogacki on behalf of 25 the Division. 26 ITEM NO. 7 1 The Division filed a letter on July 7th 2 and a supplemental letter on September 11th 3 with regard to the six Glenhill entities. We 4 believe that the waiver should be granted. 5 And I'll be happy to answer any 6 questions you have. 7 CHAIR KASSEKERT: Thank you. 8 Any questions? 9 COMMISSIONER SOMMELING: No questions, 10 Madame Chair. 11 Madame Chair, I move to grant the 12 petition of the United States Playing Card 13 Company and waive the qualification requirement 14 for: Glenhill Advisors, LLC, Glenhill Capital 15 Management, LLC, Glenhill Capital, LP, Glenhill 16 Capital Overseas, GP, LTD, Glenhill 17 Concentrated Long Master Fund, LLC, and 18 Glenhill Capital Overseas Master Fund, LP, 19 based on an inability to control the United 20 States Playing Card Company subject to the 21 condition in the order. 22 COMMISSIONER FEDORKO: Second. 23 CHAIR KASSEKERT: Motion has been made 24 and seconded. This is a roll call vote. 25 MR. NANCE: Commissioner Fedorko? 27 ITEM NO. 8 1 COMMISSIONER FEDORKO: Yes. 2 MR. NANCE: Commissioner Epps? 3 COMMISSIONER EPPS: Yes. 4 MR. NANCE: Vice Chair Sommeling? 5 VICE CHAIR SOMMELING: Yes. 6 MR. NANCE: Chair Kassekert? 7 CHAIR KASSEKERT: Yes. 8 MR. NANCE: The record will reflect that 9 the motion is unanimous. 10 Item No. 8, petition of the United 11 States Playing Card Company for waiver of the 12 qualification requirement of Capital Group 13 International, Inc., and Capital Guardian Trust 14 Company. 15 Miss Nagengast? 16 MS. NAGENGAST: Chair and Commissioners, 17 this is another petition filed on behalf of the 18 United States Playing Card seeking a waiver of 19 the qualification of the two entities named. 20 Miss Jones is here did again on behalf 21 of the Petitioner and Lou Rogacki on behalf of 22 the Commission. 23 CHAIR KASSEKERT: Thank you. 24 Good morning, Miss Jones. 25 MS. JONES: Again, this is a 28 ITEM NO. 8 1 straightforward institutional investor's 2 petition. Capital Guardian clearly fits within 3 the definition of an institutional investor as 4 it is a bank. Capital Group International is 5 the parent company, and it manages not just 6 this company but other investment companies. 7 And consistent with Commission policy and 8 precedent, they can be waived within the catch 9 all. However, if you choose to, they also have 10 an inability to control for the reasons -- for 11 similar reasons, as I just stated in Glenhill. 12 Thank you. 13 CHAIR KASSEKERT: Thank you. 14 Any questions? 15 COMMISSIONER SOMMELING: No questions, 16 Madame Chair. 17 MR. ROGACKI: Good morning, again, 18 Madame Chair. 19 The Division filed a letter on July 7th, 20 also agreeing that this petition should be 21 granted. 22 I'll be happy to file -- answer any 23 questions you have. 24 CHAIR KASSEKERT: Thank you. 25 Any questions for the Division? 29 ITEM NO. 8 1 COMMISSIONER EPPS: Madame Chair, I move 2 that we: a, waive the qualification 3 requirement for Capital Guardian Trust Company 4 pursuant to NJAC 19:51-1.14(b)(3) and NJSA 5 5:12-85(f) based on its status as an 6 institutional investor as designed by -- as 7 defined by NJSA 5:12-27.1; and after reviewing 8 the memo and based on even the representations 9 of counsel, I find that it is more appropriate 10 that we deny the petition in part and find that 11 Capital Group International, Incorporated, does 12 not fall within the catch-all provision of NJSA 13 5:12-27.1 but, however, find that Capital Group 14 International, Inc., has demonstrated it that 15 it lacks the ability to control Jarden and, 16 thus, Petitioner; and, therefore, waive the 17 qualification requirement of Capital Group 18 International, Incorporated, as permitted by 19 NJAC 19:51-1.14(b)(4) and subject to the 20 conditions in the order. 21 VICE CHAIR SOMMELING: Second. 22 COMMISSIONER FEDORKO: Second. 23 CHAIR KASSEKERT: Motion is made and 24 seconded. This is a roll call vote. 25 MR. NANCE: Commissioner Fedorko? 30 ITEM NO. 9 1 COMMISSIONER FEDORKO: Yes. 2 MR. NANCE: Commissioner Epps? 3 COMMISSIONER EPPS: Yes. 4 MR. NANCE: Vice Chair Sommeling? 5 VICE CHAIR SOMMELING: Yes. 6 MR. NANCE: Chair Kassekert? 7 CHAIR KASSEKERT: Yes. 8 MR. NANCE: The record will reflect that 9 the motion is unanimous. 10 CHAIR KASSEKERT: Thank you. 11 MS. JONES: Thank you. 12 MR. ROGACKI: Thank you. 13 MR. NANCE: Item No. 9, further 14 consideration of the request by the Conservator 15 and Trustee for the former licensee, Adamar of 16 New Jersey, Inc., for permission to retain 17 investment co-advisors. 18 Mr. DiGiacomo? 19 MR. DiGIACOMO: Chair, Commissioners, 20 good morning. 21 Mr. Sean Mack is here on behalf of the 22 Conservator and the Trustee. Ms. Mary Jo 23 Flaherty for the Division of Gaming 24 Enforcement. Also we want to acknowledge Mr. 25 Richard DeLucry who represents JP Morgan. 31 ITEM NO. 9 1 CHAIR KASSEKERT: Thank you. 2 Mr. Mack? 3 MR. MACK: Good morning, Chair and 4 Commissioners. 5 Since the Commission's first order in 6 this matter, there were various requirements 7 that the Commission wanted us to incorporate in 8 our engagement letters. Our last many weeks 9 we've worked with the Commission staff, with 10 Division. I hope we have met all the 11 requirements, addressed a lot of their 12 questions, and we ask that the petition be 13 granted. 14 CHAIR KASSEKERT: Thank you. 15 I think first we have exhibits to move 16 in? 17 MR. DiGIACOMO: Yes. 18 MR. MACK: Oh, yes. We've submitted to 19 Mr. Nance already as Exhibit 1, which is the -- 20 our proposed file engagement letter with Moelis 21 & Company. As Exhibit 2 we're submitting our 22 proposed final engagement letter with JP Morgan 23 Securities, Inc., and as Exhibit 3 a two-way 24 agreement between the Conservator/Trustee, JP 25 Morgan, and Moelis & Company, essentially 32 ITEM NO. 9 1 acknowledging each other's agreements. 2 CHAIR KASSEKERT: Let me ask if the 3 Division has any objections to these exhibits? 4 MS. FLAHERTY: No objection, Chair. 5 CHAIR KASSEKERT: Thank you. 6 And does the Division have any exhibits 7 to move in? 8 MR. FLAHERTY: Yes, Chair. 9 We'd like to have marked as Exhibit D-1 10 our report, which is dated August the 20th. 11 CHAIR KASSEKERT: Yeah. August 20th. 12 MR. DiGIACOMO: The description you 13 have, Chair and Commissioners, says September 14 the 20th, but I believe the exhibit here -- 15 Miss Flaherty, in fact, has struck the correct 16 date. 17 CHAIR KASSEKERT: Right. 18 MR. DiGIACOMO: It is August 20th. 19 CHAIR KASSEKERT: Thank you. 20 Any objections, Mr. Mack? 21 MR. MACK: No. 22 CHAIR KASSEKERT: Okay. There being 23 none, I will move all these items into 24 evidence. 25 Mr. Mack, anything to add? 33 ITEM NO. 9 1 MR. MACK: I'm happy to answer any 2 questions. If there are any questions about 3 the CSI gaming application for JP Morgan I 4 address those to Mr. DeLucry. 5 CHAIR KASSEKERT: Very good. 6 Miss Flaherty? 7 MS. FLAHERTY: Yes. Chair and 8 Commissioners, since the June 30th proceeding, 9 there have been a significant number of 10 changes, and some of those have been 11 substantive. With regard to the type of 12 transactions which are included, encompassed 13 within the agreement, as well as the provisions 14 which govern aggregate consideration. 15 In addition, as a result of those 16 changes, the compensation under the agreement 17 to the co-investment advisors will be more 18 substantial, and also we now have a third-party 19 agreement. 20 We wanted to particularly note that some 21 new language regarding aggregate consideration, 22 and it raises the potential of future payments 23 of an indefinite amount which could go to 24 theoretically persons who may be unqualified or 25 disqualified. In any event, the benefit which 34 ITEM NO. 9 1 enures to some individual which may be a 2 stakeholder in the bankruptcy would require 3 that the regulators look at the status of that 4 person and potentially bring them into the 5 regulatory system. 6 We've brought those matters to the 7 attention to the counsel for the Trustee/ 8 Conservator and noted those implications. And 9 it's their position -- they've expressed their 10 inclination to retain the option of having that 11 provision available for the discussion purposes 12 in the sale process. 13 We have no objection to that, but taking 14 a longer-range approach, we wanted to note 15 that, you know, specifically as a potential 16 complicating matter which may, you know, come 17 up in the future. 18 In addition, the matters raised in the 19 Division's June 25th report and the matters 20 required by the Commission's prior order with 21 regard to this matter, 08-06-30-01, relating to 22 the agreements have all been satisfied, in our 23 view. 24 Based on the above, the Division at this 25 juncture leaves to the Commission's sound 35 ITEM NO. 9 1 discretion the approval of the final versions 2 the agreement with Moelis, JP Morgan, and the 3 Trustee/Conservator and their provisions. 4 And we also have no objection to the 5 form of the order which has been prepared by 6 Commission staff. 7 Thank you very much. 8 CHAIR KASSEKERT: Thank you. 9 Let me ask if there are any questions? 10 VICE CHAIR SOMMELING: I have no 11 questions, Madame Chair. 12 COMMISSIONER EPPS: Madame Chair, I move 13 that we adopt the draft order and approve the 14 form of engagement agreements, pursuant to 15 which Gary S. Stein, Trustee and Conservator of 16 the former license, Adamar of New Jersey, 17 Incorporated, has retained Moelis & Company and 18 JP Morgan as his financial co-advisors to the 19 extent set forth and subject to the conditions 20 in the draft order. 21 VICE CHAIR SOMMELING: Second. 22 CHAIR KASSEKERT: The motion has been 23 made and seconded. All in favor? 24 (Ayes.) 25 CHAIR KASSEKERT: Opposed? 36 ITEM NO. 10 1 (No response.) 2 CHAIR KASSEKERT: Motion carries. 3 Thank you. 4 MR. MACK: Thank you. 5 MS. FLAHERTY: Thank you. 6 MR. DiGIACOMO: Thank you, 7 Commissioners. 8 MR. NANCE: Item No. 10, petition of 9 Bally's Park Place, Inc., Harrah's Operating 10 Company, LLC, Showboat Atlantic City Operating 11 Company, LLC, and Boardwalk Regency Corp., for 12 approval of the issuance of an entity qualifier 13 of certain securities pursuant to NJAC 14 19:43-2.8 and other relief. 15 Miss Wozniak? 16 MS. WOZNIAK: Good morning, Chair, 17 Commissioners. 18 I have distributed a draft resolution to 19 the parties. 20 Mr. O'Gara is here for the Petitioners 21 and Mr. Adams for the Division. 22 CHAIR KASSEKERT: Good morning, Mr. 23 O'Gara. 24 MR. O'GARA: Good morning, Chair. 25 The party in interest here is TPG Gen, 37 ITEM NO. 10 1 Part V, which is the general partner of the 2 various funds which did the investment and 3 co-investment pursuant to the resolution which 4 approved the transaction. Then it's 5 incorporated in the Harrah's renewals, even 6 though an entity qualifier requires your 7 approval to issue any securities. The 8 securities issued here are limited partnership 9 interests in the management entity, not the 10 voting entity nor the actual holding companies 11 which hold this. And, in essence, is very 12 similar to what Apollo did immediately before 13 the transaction in that the retained, carried 14 interest of the partners of TPG, a portion of 15 that is being sold, which is just an economic 16 interest in this fund and as well as other 17 funds that don't require approval to investors. 18 And the percentage range we've furnished to you 19 and who the investors are. They are all -- 20 investors in this transaction are governmental 21 entities, and they have all been adjusted. So 22 that any even any residual interest would not 23 result in anyone having any carryover interest 24 by any calculation in the holding company of 25 the casino licensee which exceeded five 38 ITEM NO. 10 1 percent. 2 CHAIR KASSEKERT: Thank you. 3 Mr. Adams? 4 MR. ADAMS: Good morning, Chair and 5 Commissioners. 6 We've filed our response to the petition 7 dated September 10th. I've looked at the draft 8 resolution, and unless you have any questions, 9 we believe the relief can be granted. 10 CHAIR KASSEKERT: Thank you. 11 Any questions? 12 COMMISSIONER SOMMELING: No questions, 13 Madame Chair. 14 COMMISSIONER EPPS: No questions. 15 You guys going to keep -- you going to 16 keep coming up with different ways to break 17 this up until you make us really confused. 18 (Laughter.) 19 COMMISSIONER EPPS: We're going to keep 20 doing do this until we really get 'em -- no. 21 I'm just kidding. 22 I move that we adopt the draft 23 resolution and grant the relief requested in 24 the petition to the extent set forth in the 25 findings and rulings and as subject to the 39 ITEM NO. 11 1 conditions in the resolution. 2 VICE CHAIR SOMMELING: Second. 3 CHAIR KASSEKERT: The motion has been 4 made and seconded. All in favor? 5 (Ayes.) 6 CHAIR KASSEKERT: Opposed? 7 (No response.) 8 CHAIR KASSEKERT: Motion carries. 9 COMMISSIONER EPPS: I have a map. You 10 can't get me. I have a chart. 11 (Laughter.) 12 MR. O'GARA: I've only got a hundred 13 percent and 47 just went, so. 14 MR. NANCE: Item No. 11, readoption of 15 NJAC 19:46. 16 Miss Frank? 17 MS. FRANK: Good morning, Chair and 18 Commissioner. 19 The proposed readoption appeared in the 20 New Jersey Register July 7th, 2008. No 21 comments were received. 22 Since there's been no change in the text 23 of the chapter between its proposal and 24 readoption, the effective date of the 25 readoption will be that on filing with the 40 ITEM NO. 12 1 Office of Administrative Law which is slated 2 for tomorrow should you approve it today. 3 CHAIR KASSEKERT: Thank you. 4 Any questions? 5 COMMISSIONER EPPS: No questions. 6 VICE CHAIR SOMMELING: Madame Chair, 7 move to readopt as published. 8 COMMISSIONER EPPS: Second. 9 CHAIR KASSEKERT: The motion has been 10 made and seconded. All in favor? 11 (Ayes.) 12 CHAIR KASSEKERT: Opposed? 13 (No response.) 14 CHAIR KASSEKERT: The motion carries. 15 MR. NANCE: Item No. 12, petition of WMS 16 Gaming, Inc., for permission to terminate its 17 "Reel Heroes" slot machine system and to 18 transfer its progressive jackpot. 19 Mr. Briliant? 20 MR. BRILIANT: Good morning, Madame 21 Chair and Commissioners. 22 Marie Jones is here on behalf of the 23 Petitioner. Mr. Ficchi is here on behalf of 24 the Division. 25 I have circulated a proposed resolution 41 ITEM NO. 12 1 which is acceptable to the parties should the 2 Commission decide to approve it. 3 CHAIR KASSEKERT: Thank you. 4 Ms. Jones? 5 MS. JONES: Good morning again. With me 6 today is Dominick Donato from WMS Gaming, and 7 we would be happy to address any questions at 8 this time. 9 CHAIR KASSEKERT: Thank you. 10 Any questions? 11 COMMISSIONER SOMMELING: No questions, 12 Madame Chair. 13 CHAIR KASSEKERT: Mr. Ficchi? 14 MR. FICCHI: As Mr. Briliant has 15 indicated, I've reviewed the draft resolution, 16 and we have no objection to its adoption by the 17 Commission. 18 Thank you. 19 CHAIR KASSEKERT: Thank you. 20 Any questions for Mr. Ficchi? 21 COMMISSIONER SOMMELING: No questions, 22 Madame Chair. 23 COMMISSIONER FEDORKO: Motion to adopt 24 the draft resolution and approve the request of 25 WMS Gaming, Inc., to terminate the Reel Heroes 42 ITEM NO. 13 1 slot system and transfer the progressive 2 jackpot subject to the conditions of the 3 resolution. 4 VICE CHAIR SOMMELING: 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: The motion carries. 11 MS. JONES: Thank you. 12 MR. NANCE: Item No. 13, petition of 13 Bally's Park Place, Inc., for an amendment to 14 its operation certificate and casino hotel 15 alcoholic beverage license to expand or 16 reconfigure its gaming floor. 17 Mr. Moncrief? 18 MR. MONCRIEF: Madame Chair, members of 19 the Commission, Tim Lowry is here on behalf of 20 the Petitioner, and Tim Ficchi on behalf of the 21 Division. 22 CHAIR KASSEKERT: Mr. Lowry? 23 MR. LOWRY: Madame Chair, good morning 24 Commissioners. Good morning. 25 We're here on behalf of Bally's, and 43 ITEM NO. 13 1 we're simply seeking to amend our certificate 2 of operations to increase our gaming in the 3 simulcast areas. We're going to change the mix 4 of some of our games, and we're going to add 5 some lounges. We represent that all the limits 6 will be within that prescribed by Section 100 7 of the Act and in the regs. 8 We're happy to answer any questions that 9 the Commission may have, and we respectfully 10 ask for your approval. 11 CHAIR KASSEKERT: Thank you. 12 Any questions at this point? 13 We'll hear Mr. Ficchi? Mr. Ficchi? 14 MR. FICCHI: Thank you. Good morning, 15 Chair, Commissioners, again. 16 The Division has reviewed the petition. 17 We've gone on site and reviewed the various 18 areas that are affected. We have no objection 19 to the adoption of, you know, by the Commission 20 and leave up to your discretion with regard to 21 the smoking areas -- you know, was an issue 22 that was looked at. And the Division would 23 just defer to your discretion in that regard. 24 Thank you. 25 CHAIR KASSEKERT: Thank you. 44 ITEM NO. 13 1 Any questions? 2 COMMISSIONER SOMMELING: No questions, 3 Madame Chair. 4 COMMISSIONER EPPS: I have a question -- 5 CHAIR KASSEKERT: Sure. 6 COMMISSIONER EPPS: -- of Mr. Lowry. 7 In the sixth floor new area -- 8 MR. LOWRY: Yes, sir? 9 COMMISSIONER EPPS: Is it going to be 10 contiguous and more appealing to the -- the 11 general public as a passageway? Or is it going 12 to continue to exist as it does? 13 MR. LOWRY: Commissioner, the goal of 14 the entire reconfiguration is -- as our 15 business folks represent to us, is to 16 accommodate the customer demand. They feel 17 that the customers are desirous of these 18 locations, and that these locations will best 19 serve the customer demand and those needs. To 20 answer your question, it will be contiguous 21 with the casino floor. As reconfigured there 22 will be sufficient surveillance and all the 23 appropriate conditions that the Commission 24 shall deem. 25 Does that answer your question? 45 ITEM NO. 13 1 COMMISSIONER EPPS: Actually, my 2 question was more cosmetic. If that's going to 3 be an access way, is it going to continue -- is 4 it going to be -- match the current aesthetics 5 of the room it accesses? Or is it just going 6 to continue to -- 7 CHAIR KASSEKERT: To be a hallway. 8 COMMISSIONER EPPS: To be as -- 9 MR. LOWRY: To be a hallway. 10 My understanding is that they will 11 orient it much like the casino floor will be 12 oriented so -- 13 COMMISSIONER EPPS: It would be a 14 seamless transition now as opposed to a 15 hallway? 16 MR. LOWRY: Absolutely. And if the 17 Commission wants to include that in its order 18 as far as a condition, that's appropriate as 19 well. 20 COMMISSIONER EPPS: I don't know that 21 that's within our strength anymore. But it 22 certainly is a concern of mine that if that's 23 going to now be gaming space, I think that it 24 should be -- 25 MR. LOWRY: Uh-hum. 46 ITEM NO. 13 1 COMMISSIONER EPPS: I'm not going to 2 tell you what color to paint it or what color 3 carpet to put it in, but it should certainly be 4 an aesthetic transfer as opposed to sending 5 somebody down the back hall to catch a smoke. 6 You know what I mean? 7 MR. LOWRY: Sure. Commissioner, I may 8 reiterate the point, you're worried about the 9 customer being confused with one space, one 10 area as opposed to another area as to whether a 11 customer will be confused as to this area being 12 gaming space, and this area being gaming space 13 as well. 14 COMMISSIONER EPPS: Not exactly. What 15 I'm more concerned about is telling somebody if 16 you want to smoke, go down that back hall, 17 which is really -- looks like the 18 back-of-the-house back hall. And at the end 19 you can go in there and smoke. As opposed to a 20 passageway that looks much like the room I just 21 left, and it's a continuation down to a smoking 22 lounge. 23 MR. LOWRY: Uh-hum. 24 COMMISSIONER EPPS: And any of your 25 other lounges we've seen, there's a nice 47 ITEM NO. 13 1 seamless transition between the room that it's 2 in and the adjoining smoking lounge, and those 3 are all consistent time and congruent. That 4 one just gave me a little bit of an aesthetic, 5 certainly, pause. And my concern was whether 6 any cosmetic changes were going to be made to 7 that area, or if it was just going to be a -- 8 if we're just making a designation, and it's 9 just a carpet -- 10 MR. LOWRY: There will be cosmetic 11 changes to that area. 12 COMMISSIONER EPPS: Yes. Thank you. 13 CHAIR KASSEKERT: Thank you. 14 Any other questions? 15 VICE CHAIR SOMMELING: No other 16 questions, Madame Chair. 17 COMMISSIONER EPPS: With that, I'll move 18 that we grant the requested relief subject to 19 the conditions that Bally's, A, file -- or, No. 20 1, file and obtain approval of revised security 21 and surveillance submissions prior to opening 22 the expansion areas to the public; and, 2, 23 obtain all other required governmental 24 approvals for the areas in question, including 25 but not limited to, approval from the New 48 ITEM NO. 14 1 Jersey Department of Community Affairs before 2 opening the expansion areas to the public. 3 VICE CHAIR SOMMELING: Second. 4 CHAIR KASSEKERT: The motion has been 5 made and seconded. All in favor? 6 (Ayes.) 7 CHAIR KASSEKERT: Opposed? 8 (No response.) 9 CHAIR KASSEKERT: Motion carries. 10 MR. LOWRY: Thank you. 11 MR. FICCHI: Thank you. 12 CHAIR KASSEKERT: Thank you. 13 MR. NANCE: Item No. 14, proposed 14 publication to amendments to NJAC 19:45-1.12 15 and 19:46-1.18. 16 Mr. Mamolen? 17 MR. MAMOLEN: Good morning. 18 This matter is before you for 19 publication. It deals with the reduced 20 frequency of card changes for four designated 21 table games. 22 As you know, up to now, or up to the 23 temporary adoption of these amendments, these 24 games were subject to 24-hour card changes. 25 The amendment would make it 48-hour card 49 ITEM NO. 15 1 changes frequency subject to a number of 2 conditions listed in the regulations such as 3 the continuously opened gaming table, at least 4 six decks of card should be in use at the 5 table, surveillance be monitored on any table. 6 This is, of course, during the test period. 7 And there are, of course, separate post- 8 inspection procedures. 9 Again, it's before you for publication. 10 CHAIR KASSEKERT: Thank you. 11 Any questions? 12 COMMISSIONER SOMMELING: No questions, 13 Madame Chair. 14 Approve for publication. 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. NANCE: Item No. 15, a proposed 23 adoption to of amendment NJAC 19:45-1.33. 24 Mr. Mamolen? 25 MR. MAMOLEN: This matter is a 50 ITEM NO. 15 1 reproposal that is before you for final 2 adoption. It deals with the incidents of 3 negative poker revenue that may be reported on 4 a master gaming report. As reproposed, it 5 clarifies the role and principal role of the 6 accounting department as opposed to the casino 7 games department as was previously designated 8 in the earlier publication. 9 It's, again, before you for final 10 adoption. There were no comments received to 11 the reproposal, and it's before you now. 12 CHAIR KASSEKERT: Thank you. 13 Any questions? 14 COMMISSIONER SOMMELING: No questions, 15 Madame Chair. 16 COMMISSIONER EPPS: No questions. 17 Madame Chair, I move that we adopt the 18 reproposed amendments as published. 19 VICE CHAIR SOMMELING: 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. 51 1 Thank you. 2 MR. MAMOLEN: Thank you. 3 MR. NANCE: In accordance with 4 Resolution No. 07-12-12-26, the next closed 5 session of the Commission shall be held on 6 Wednesday, October 1st, 2008, at 9:15 a.m. in 7 the Commission offices. 8 It is now time for the public 9 participation portion of the meeting. 10 CHAIR KASSEKERT: Is there anyone from 11 the public who wishes to be heard? 12 (No response.) 13 CHAIR KASSEKERT: Seeing no one, I'll 14 declare this portion of the meeting closed and 15 entertain a motion to adjourn. 16 VICE CHAIR SOMMELING: Motion to 17 adjourn. 18 COMMISSIONER FEDORKO: 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: The motion carries. 25 Did you want to speak? 52 ITEM NO. 3a 1 MR. RECCHIONE: I'm sorry, folks. Yes. 2 If I may. 3 CHAIR KASSEKERT: Okay. We'll -- 4 MS. FAUNTLEROY: Unadjourn. 5 CHAIR KASSEKERT: Unadjourn and 6 reconvene the meeting. 7 You can come forward, sir. 8 Can you please state your name and 9 address for the record? 10 MR. RECCHIONE: Yes. 11 CHAIR KASSEKERT: Come up right to the 12 microphone. 13 MR. RECCHIONE: Yes. My name is Thomas 14 Recchione. 15 MR. NANCE: Could you spell your last 16 name. 17 MR. RECCHIONE: Yes. It's 18 R-e-c-c-h-i-o-n-e. My address is 725 6th 19 Street in Somers Point. 20 I was scheduled to come this morning, 21 and I got out of work late. I had to work a 22 few hours this morning, and I am on the agenda 23 for my license. 24 CHAIR KASSEKERT: Okay. For your 25 stipulation of settlement? 53 ITEM NO. 3a 1 MR. RECCHIONE: Yes, ma'am. 2 CHAIR KASSEKERT: We approved you. 3 (Laughter.) 4 MR. RECCHIONE: Thank you so much. 5 CHAIR KASSEKERT: You're welcome. 6 COMMISSIONER EPPS: Motion to adjourn. 7 (Laughter.) 8 COMMISSIONER FEDORKO: Second. 9 CHAIR KASSEKERT: The motion has been 10 made and seconded. All in favor? 11 (Ayes.) 12 CHAIR KASSEKERT: Opposed? 13 (No response.) 14 CHAIR KASSEKERT: Motion carries. 15 (Public Meeting 08-09-17 was adjourned 16 at 11:07 a.m.) 17 18 19 20 21 22 23 24 25 54 1 2 C E R T I F I C A T E 3 4 5 I, DARLENE SILLITOE, a Certified 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 19, 2008 23 My Commission Expires on July 10, 2009 24 ID No 2062871 25