1 1 STATE OF NEW JERSEY 2 CASINO CONTROL COMMISSION 3 - - - - - - - - - - - - - - - - - - - 4 5 PUBLIC MEETING NO. 09-04-01 6 7 - - - - - - - - - - - - - - - - - - - 8 9 Wednesday, April 1, 2009 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 10:36 a.m. to 10:46 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 MICHAEL C. EPPS, VICE CHAIR MICHAEL A. FEDORKO, COMMISSIONER 4 WILLIAM T. SOMMELING, COMMISSIONER 5 PRESENT FOR THE CASINO CONTROL COMMISSION: 6 DARYL W. NANCE, ADMINISTRATIVE ANALYST DANIEL J. HENEGHAN, PUBLIC INFORMATION OFFICER 7 8 OFFICE OF THE GENERAL COUNSEL: DIANNA W. FAUNTLEROY, GENERAL COUNSEL/EXECUTIVE 9 SECRETARY MARY WOZNIAK, ASSISTANT GENERAL COUNSEL 10 DENIS J. CORBETT, 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: 14 DEPUTY ATTORNEYS GENERAL 15 CHANTA L. HOWARD, DEPUTY ATTORNEY GENERAL TIMOTHY C. FICCHI, DEPUTY ATTORNEY GENERAL 16 DOROTHY TURI, 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 J. CORBETT, SENIOR COUNSEL TIMOTHY C. FICCHI, DEPUTY ATTORNEY GENERAL 3 LORETTA I. PICKUS, ESQ. FOR: TRUMP TAJ MAHAL ASSOCIATES, LLC 4 ITEM NO. 5 ROBERT A. MONCREIF, COUNSEL 5 TIMOTHY C. FICCHI, DEPUTY ATTORNEY GENERAL KAREN M. WOSNACK, ESQ. 6 FOR: RIH ACQUISITION NJ, LLC 7 ITEM NO. 10 MARY WOZNIAK, ASSISTANT GENERAL COUNSEL DOROTHY TURI, DEPUTY ATTORNEY GENERAL 8 STERNS & WEINROTH, PC PAUL M. O'GARA, ESQ. 9 FOR: HARRAH'S ENTITIES 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 4 1 AGENDA PUBLIC MEETING NO. 09-04-01 2 April 1, 2009, 10:36 a.m. ITEM PAGE VOTE 3 1 Ratification of the minutes of the 7 7 March 18, 2009, meeting minutes 4 2 Applications for employee and casino service industry licenses 5 8 initial and/or renewal of casino key 7 8 and casino employee licenses 6 15 initial and/or renewal of casino key 8 8 and casino employee licenses 7 Application of Donna M. Martin and for 9 10 qualification as Vice President Player 8 Development for Trump Taj Mahal Associates, LLC 3 Stipulations of settlement and consent agreements: 9 a) Robert L. Baselice (08-0758-EA) 10 11 b) Kendra P. McDonald (07-0335-EA) 10 11 10 c) Adamirka Benitez (07-0026-RC) 10 11 d) Francena E. Bazemore (08-0889-ER) 10 11 11 e) Christiaan T. Junne (a/k/a Christian 10 11 T. Junne) (08-0743-RC) 12 4 Stipulation of settlement in State v. 11 13 Trump Taj Mahal Associates, LLC (d/b/a 13 Trump Taj Mahal Casino Resort) (08-0970-RC) 5 Petition of RIH Acquisition NJ, LLC, 13 15 14 (d/b/a Atlantic City Hilton) for an amendment to its operation certificate to reconfigure 15 its casino floor (PRN 0850903) 6 Proposed adoption of amendments to NJAC 15 16 16 19:45-1.12 (personnel assigned to the operation and conduct of gaming) and 17 NJAC 19:45-1.14A (Simulcast counter)(PRN 3390804) 7 Readoption of NJAC 19:50 (Casino Hotel 16 17 18 Alcoholic Beverage Control) 8 Proposed publication of amendments and 17 18 19 new rules for Supreme Pai Gow 9 Proposed adoption of amendments to NJAC 18 19 20 19:46-1.1A (gaming chips) 10 Amended petition of Harrah's 20 22 21 Entertainment, Inc., Harrah's Operating Company, Inc., Harrah's Atlantic City 22 Operating Company, LLC, Showboat Atlantic City Operating Company, LLC, Bally's Park 23 Place, Inc., and Boardwalk Regency Corp., for permission for Timothy R. Donovan to assume 24 the duties and exercise the powers of Senior Vice President and General Counsel of HEI and 25 HOC prior to qualification (PRN 0750901) 5 1 E X H I B I T S : 2 NO. DESCRIPTION EVD 3 4 P-1 Remand for hearings 8 license X 5 P-2 Grant 15 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.) 6 1 (Public Meeting 09-04-01 was commenced 2 at 10:36 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 October 7, 2008, filed with the 10 Secretary of State at the State House in 11 Trenton, New Jersey, a notice of this hearing. 12 On October 7, 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 cell phones in the public 19 meeting room while the Commission is in session 20 is prohibited. 21 Any member 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 Would everyone please stand for the 7 ITEM NO. 1-2 1 Pledge of Allegiance. 2 (The flag salute was recited.) 3 CHAIR KASSEKERT: Good morning. 4 MR. NANCE: Good morning. 5 The matters discussed in closed session 6 were: Employee and enterprise license matters. 7 The Commissioners approved the March 8 18th, 2009, closed session minutes. 9 Item No. 1, ratification of the minutes 10 of March 18th, 2009, public meeting. 11 COMMISSIONER SOMMELING: Move to 12 approve. 13 COMMISSIONER FEDORKO: 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: Item No. 2, application for 21 employee and casino service industry licenses. 22 This agenda item will be entered as Exhibit 23 List 1 and 2. 24 Exhibit List 1 consists of eight 25 applications for initial and/or renewal of 8 ITEM NO. 2 1 casino key and casino employee licenses. 2 The Division has objected to licensure. 3 COMMISSIONER FEDORKO: Motion to remand 4 for hearings. 5 COMMISSIONER SOMMELING: 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 15 applications 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 FEDORKO: Motion to grant 18 applications. 19 VICE CHAIR EPPS: Second. 20 COMMISSIONER SOMMELING: 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. 3 1 CHAIR KASSEKERT: Motion carries. 2 MR. NANCE: For your consideration is 3 the casino key employee license renewal 4 application of Donna M. Martin and for 5 qualification as Vice President Player 6 Development for Trump Taj Mahal Associates, 7 LLC. 8 Staff and the Division have recommended 9 that this application be granted. 10 VICE CHAIR EPPS: Motion to grant 11 initial key license and for qualification. 12 COMMISSIONER SOMMELING: Second. 13 COMMISSIONER FEDORKO: Second. 14 CHAIR KASSEKERT: Motion is made and 15 seconded. This is a roll call vote. 16 MR. NANCE: Commissioner Fedorko? 17 COMMISSIONER FEDORKO: Yes. 18 MR. NANCE: Commissioner Sommeling? 19 COMMISSIONER SOMMELING: Yes. 20 MR. NANCE: Vice Chair Epps? 21 VICE CHAIR EPPS: Yes. 22 MR. NANCE: Chair Kassekert? 23 CHAIR KASSEKERT: Yes. 24 MR. NANCE: The record will reflect that 25 the motion is unanimous. 10 ITEM NO. 3 1 Item No. 3, stipulation of settlement 2 and consent agreements. When I call your name, 3 please come forward, standing behind this 4 center table, spreading across the room so that 5 you may be seen: Robert Baselice, Kendra 6 McDonald, Adamirka Benitez, Francena Bazemore, 7 and Christiaan Junne. 8 CHAIR KASSEKERT: Has everyone who -- 9 Yes, sir. You can come forward. 10 Anyone else whose name has been called? 11 All right. Sir, in a moment we've going 12 to vote on the stipulation which you've agreed 13 to with the Division of Gaming Enforcement. 14 I'm going to ask if you'd like to be heard on 15 your matter. You don't have to say anything if 16 you don't want to. 17 UNIDENTIFIED MAN: No problem. 18 CHAIR KASSEKERT: Thank you. 19 MS. HOWARD: Good morning, 20 Commissioners. 21 The Division has nothing further to add. 22 We request that the stipulations be approved as 23 submitted. 24 Thank you. 25 CHAIR KASSEKERT: Thank you. 11 ITEM NO. 4 1 Any questions. 2 COMMISSIONER SOMMELING: Madame Chair, 3 move to approve the stipulations. 4 COMMISSIONER FEDORKO: Second. 5 CHAIR KASSEKERT: The motion has been 6 made and seconded. All in favor? 7 (Ayes.) 8 CHAIR KASSEKERT: Opposed? 9 (No response.) 10 CHAIR KASSEKERT: Motion carries. 11 Thank you for coming. Good luck. 12 UNIDENTIFIED MAN: Thank you. 13 MR. NANCE: Item No. 4, stipulation of 14 settlement in State versus Trump Taj Mahal 15 Associates, LLC. 16 Mr. Corbett? 17 MR. CORBETT: Good morning, Chair, 18 Commissioners. 19 In the stipulation of settlement in this 20 case the casino licensee, admits the regulatory 21 violation involving underage gambling and 22 agrees to a penalty of $10,000. 23 Miss Pickus is here for the casino 24 licensee and Mr. Ficchi for the Division. 25 CHAIR KASSEKERT: Thank you. 12 ITEM NO. 4 1 Good morning, Miss Pickus. 2 MS. PICKUS: Good morning, Chair. 3 I would ask that you adopt the 4 stipulation that we've reviewed and approved. 5 Thank you for your consideration this 6 morning. 7 CHAIR KASSEKERT: Thank you. 8 Mr. Ficchi? 9 MR. FICCHI: Yes. Good morning, Chair, 10 Commissioners. 11 The Division has nothing further. We 12 would just request that you adopt the 13 stipulation. 14 Thank you. 15 CHAIR KASSEKERT: Thank you. 16 Any questions? 17 COMMISSIONER SOMMELING: No questions, 18 Madame Chair. 19 COMMISSIONER FEDORKO: Motion to approve 20 the stipulation of settlement and impose a 21 civil penalty of $10,000 against Trump Taj 22 Mahal Associates, LLC, for violation of 23 Commission regulations regarding underage 24 gambling. 25 COMMISSIONER SOMMELING: Second. 13 ITEM NO. 5 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 MR. FICCHI: Thank you. 9 MR. NANCE: Item No. 6, proposed 10 adoption of amendments to NJSA 19:45-1.12 and 11 NJAC 19:45-1.14A. 12 MR. HENEGHAN: You just read 6. We're 13 on 5. 14 MR. NANCE: Oh, I'm sorry. 15 MR. MONCRIEF: We can do 6. 16 MR. NANCE: Let me recall Item No. 5, 17 petition of RIH Acquisition NJ, LLC, for an 18 amendment to its operation certificate to 19 reconfigure its casino floor. 20 Mr. -- 21 MR. MONCRIEF: Good morning, Madame 22 Chair, members of the Commission. 23 Here for the Petitioner is Karen 24 Wosnack, and for the Division is Tim Ficchi. 25 CHAIR KASSEKERT: Thank you. 14 ITEM NO. 5 1 Good morning, Miss Wosnack. 2 MS. WOSNACK: Good morning. We've 3 reviewed the draft resolution and ask that you 4 adopt it as drafted. 5 Thank you. 6 CHAIR KASSEKERT: Thank you. 7 Mr. Ficchi? 8 MR. FICCHI: Good morning, Chair and 9 Commissioners. 10 The Division has reviewed the draft 11 resolution and has no objection to its 12 adoption. 13 Thank you. 14 CHAIR KASSEKERT: Thank you. 15 Any questions? 16 COMMISSIONER SOMMELING: No questions, 17 Madame Chair. 18 VICE CHAIR EPPS: I move that we adopt 19 the draft resolution and approve the petition 20 of RIH Acquisition NJ, LLC, for an amendment to 21 its certificate of operation and CHAB license 22 to permit the reconfiguration of its gaming 23 floor subject to the conditions in the 24 resolution. 25 COMMISSIONER FEDORKO: Second. 15 ITEM NO. 6 1 COMMISSIONER SOMMELING: 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 MS. WOSNACK: Thank you very much. 9 MR. FICCHI: Thank you. 10 MR. NANCE: Item No. 6, proposed 11 adoption of amendment to the NJAC 19:45-1.12 12 and NJAC 19:45-1.14A. 13 MR. MONCRIEF: For your consideration on 14 this matter is the proposed adoption of 15 amendments to NJAC 19:5-1.12 and 19:45-1.14A. 16 These amendments were temporarily 17 adopted and published on December 10th, 2009. 18 The public comment period has expired. It was 19 a period of 60 days. No comments were 20 received. 21 And I leave the matter for you to 22 consider. 23 CHAIR KASSEKERT: Thank you. 24 Any questions? 25 COMMISSIONER SOMMELING: Madame Chair, 16 ITEM NO. 7 1 move to adopt as published. 2 VICE CHAIR EPPS: Second. 3 COMMISSIONER FEDORKO: 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. MONCRIEF: Thank you. 11 MR. NANCE: Item No. 7, readoption of 12 NJAC 19:50. 13 Miss Frank? 14 MS. FRANK: Good morning, Chair and 15 Commissioners. 16 The rules on Casino Hotel Alcoholic 17 Beverage Control are before you today for 18 approval of the Notice of Readoption. Since 19 there were no language changes between the 20 proposed readoption and this notice, the notice 21 will become effective upon filing with the 22 Office of Administrative Law on tomorrow. 23 Thank you. 24 CHAIR KASSEKERT: Thank you. 25 Any questions? 17 ITEM NO. 8 1 COMMISSIONER SOMMELING: No questions, 2 Madame Chair. 3 VICE CHAIR EPPS: Move that we readopt 4 as published. 5 COMMISSIONER 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 MS. FRANK: Thank you. 13 CHAIR KASSEKERT: Thank you. 14 MR. NANCE: Item No. 8, proposed 15 publication of amendments and new rules for 16 Supreme Pai Gow. 17 Mr. Mamolen? 18 MR. MAMOLEN: This is a new game 19 variation of pai gow that's before you for 20 publication of the amendments and new rules. 21 Since temporary adoption, there's been 22 one change to the hand rankings rules, and that 23 being with respect to a player's low hand is 24 valued as zero. In that case, the dealer's or 25 banker's low hand shall be deemed to be a 18 ITEM NO. 9 1 superior hand. 2 Other than that, the test is going 3 fairly well. It's just one table, though, in a 4 sponsoring casino. Again, it's before you for 5 publication. 6 CHAIR KASSEKERT: Thank you. 7 Any questions? 8 COMMISSIONER SOMMELING: No questions, 9 Madame Chair. 10 COMMISSIONER FEDORKO: Motion to approve 11 for publication. 12 VICE CHAIR EPPS: Second. 13 CHAIR KASSEKERT: The motion has been 14 made and seconded. All in favor? 15 (Ayes.) 16 CHAIR KASSEKERT: Opposed? 17 (No response.) 18 CHAIR KASSEKERT: Motion carries. 19 Thank you. 20 MR. MAMOLEN: Thank you. 21 MR. NANCE: Item No. 9, proposed 22 adoption of amendments to NJAC 19:46-1.1A. 23 Mr. Briliant? 24 MR. BRILIANT: Good morning, Madame 25 Chair, Commissioners. 19 ITEM NO. 9 1 The proposed amendments would add a 2 $25,000 gaming chip to the list of approved 3 chip denominations in the Commission 4 regulations. 5 The Notice of Proposal was published in 6 the New Jersey Register on April 21st, 2008. 7 The public comment period expired on June 20th, 8 2008, and no comments were received. So the 9 matter is now before the Commission for final 10 determination. 11 CHAIR KASSEKERT: Thank you. 12 Any questions? 13 COMMISSIONER SOMMELING: I have no 14 questions, Madame Chair. 15 COMMISSIONER FEDORKO: Motion to adopt 16 as published. 17 VICE CHAIR EPPS: Second. 18 CHAIR KASSEKERT: The motion has been 19 made and seconded. All in favor? 20 (Ayes.) 21 CHAIR KASSEKERT: Opposed? 22 (No response.) 23 CHAIR KASSEKERT: Motion carries. 24 MR. BRILIANT: Thank you. 25 CHAIR KASSEKERT: Thank you. 20 ITEM NO. 10 1 MR. NANCE: Item Item No. 10, amended 2 petition of Harrah's Entertainment Inc., 3 Harrah's Operating Company, Inc., Harrah's 4 Atlantic City Operating Company, LLC, Showboat 5 Atlantic City Operating Company, LLC, Bally's 6 Park Place, Inc., and Boardwalk Regency Corp., 7 for permission for Timothy R. Donovan to assume 8 the duties and exercise the powers of Senior 9 Vice President and General Counsel of HEI and 10 HOC prior to qualification. 11 Miss Wozniak? 12 MS. WOZNIAK: Good morning. 13 I have distributed a draft resolution. 14 And Mr. O'Gara is here for the Petitioners and 15 Miss Turi for the Commission. 16 CHAIR KASSEKERT: Thank you. 17 Good morning, Mr. O'Gara. 18 MR. O'GARA: Good morning, Chair. 19 We would ask that you adopt the draft 20 resolution. Mr. Donovan is -- was the General 21 Counsel for Public Services and prior to that, 22 before that a partner in Jenner & Block. And 23 with your approval, he'll begin with Harrah's 24 tomorrow. And he is well along in completing 25 his multi-jurisdictional form. We started that 21 ITEM NO. 10 1 process a couple weeks ago. So they'll be no 2 problem with that. 3 CHAIR KASSEKERT: Thank you. 4 Good morning, Miss Turi. 5 MS. TURI: Good morning, Chair and 6 Commissioners. 7 You have the letter the Division filed 8 on March 26th, 2009. We've also seen the draft 9 resolution, and we have no objection to it 10 being adopted. 11 CHAIR KASSEKERT: Thank you. 12 Any questions? 13 COMMISSIONER SOMMELING: No questions, 14 Madame Chair. 15 VICE CHAIR EPPS: I move that we adopt 16 the draft resolution and authorize Timothy R. 17 Donovan on a temporary basis prior to his 18 plenary qualification to assume the duties and 19 exercise the powers of Senior Vice President of 20 General Counsel for Harrah's Entertainment, 21 Inc., and Harrah's Operating Company, Inc., 22 subject to the conditions contained in NJAC 23 19:43-2.7 which, among other things, require 24 that he file a PHD-MJ and New Jersey 25 supplemental by April 16th, 2009. 22 ITEM NO. 10 1 COMMISSIONER SOMMELING: Second. 2 CHAIR KASSEKERT: Motion is made and 3 seconded. This is a roll call vote. 4 MR. NANCE: Commissioner Fedorko? 5 COMMISSIONER FEDORKO: Yes. 6 MR. NANCE: Commissioner Sommeling? 7 COMMISSIONER SOMMELING: Yes. 8 MR. NANCE: Vice Chair Epps? 9 VICE CHAIR EPPS: Yes. 10 MR. NANCE: Chair Kassekert? 11 CHAIR KASSEKERT: Yes. 12 MR. NANCE: The record will reflect that 13 the motion is unanimous. 14 In accordance with Resolution 15 08-12-10-22, the next closed session of the 16 Commission shall be held on Wednesday, April 17 15th, 2009, at 9:15 a.m. in the Commission 18 offices. 19 It is now time for the public 20 participation portion of the meeting. 21 CHAIR KASSEKERT: Is there anyone from 22 the public who wishes to be heard? 23 (No response.) 24 CHAIR KASSEKERT: Seeing no one, I'll 25 declare this section of the meeting closed and 23 1 entertain a motion to adjourn 2 COMMISSIONER SOMMELING: Motion to 3 adjourn. 4 VICE CHAIR 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 Thank you. 12 (Public Meeting 09-04-01 was adjourned 13 at 10:46 a.m.) 14 15 16 17 18 19 20 21 22 23 24 25 24 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 2, 2009 23 My Commission Expires on July 10, 2009 24 ID No 2062871 25