1 1 STATE OF NEW JERSEY 2 CASINO CONTROL COMMISSION 3 - - - - - - - - - - - - - - - - - - - 4 5 PUBLIC MEETING NO. 09-05-20 6 7 - - - - - - - - - - - - - - - - - - - 8 9 Wednesday, May 20, 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 10:40 a.m. to 11:28 p.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 OFFICE OF THE GENERAL COUNSEL: 8 DIANNA W. FAUNTLEROY, GENERAL COUNSEL/EXECUTIVE SECRETARY 9 TERESA M. NAGENGAST, SENIOR COUNSEL SETH H. BRILLIANT, SENIOR COUNSEL 10 ROBERT A. MONCRIEF, COUNSEL CLAIRE FRANK, PROGRAM MANAGER 11 BERNADETTE T. FRIGEN, PROGRAM SUPERVISOR 12 DIVISION OF GAMING ENFORCEMENT: DEPUTY ATTORNEYS GENERAL 13 JOHN E. ADAMS, JR., DEPUTY ATTORNEY GENERAL BRIAN C. BISCIEGLIA, DEPUTY ATTORNEY GENERAL 14 TIMOTHY C. FICCHI, DEPUTY ATTORNEY GENERAL CHANTA L. HOWARD, DEPUTY ATTORNEY GENERAL 15 JAMES C. FOGARTY, DEPUTY ATTORNEY GENERAL 16 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. 2 DARYL W. NANCE, ADMINISTRATIVE ANALYST 3 JOSEPH A. CORBO, JR., FOR: BORGATA HOTEL CASINO AND SPA 4 ITEM NO. 4b BERNADETTE FRIGEN, PROGRAM SUPERVISOR 5 CHANTA L. HOWARD, DEPUTY ATTORNEY GENERAL DONALD F. MANNO, ESQ. 6 FOR: FRANK T. BALDINO 7 ITEM NO. 7 TERESA M. NAGENGAST, SENIOR COUNSEL JOHN E. ADAMS, JR., DEPUTY ATTORNEY 8 GENERAL STERNS & WEINROTH 9 DENNIS DALY, ESQ. FOR: CAPMARK FINANCE, INC. 10 ITEM NO. 8 CLAIRE FRANK, PROGRAM SUPERVISOR 11 JAMES C. FOGARTY, DEPUTY ATTORNEY JOSEPH A. CORBO, JR., ESQ. 12 BRIAN A. LARSON, ESQ. FOR: BOYD GAMING CORPORATION 13 14 15 16 17 18 19 20 21 22 23 24 25 4 1 AGENDA PUBLIC MEETING NO. 09-05-20 2 May 20, 2009, 10:40 a.m. ITEM PAGE VOTE 3 1 Ratification of the minutes of the 9 9 April 29, 2009, public meeting 4 2 Applications for employee and casino service industry licenses 5 20 initial and/or renewal of casino key 10 10 and casino employee licenses 6 14 initial and/or renewal of casino key 10 10 and casino employee licenses 7 Application of James F. Kinee for a casino 11 11 key employee license and for qualification 8 as Vice President of Operations for RIH Acquisitions, NJ, LLC 9 Applications for initial and renewal of 12 13 casino key employee licenses and for 10 qualification: William P. King, Jr., Executive Director 11 of Internal Audit for Adamar of New Jersey, Inc. Joseph Lupo, Senior Vice President of 12 Operations for Marina District Development Company, LLC 13 Joseph A. Sarnese, Vice President of Table Game Marketing for RIH Acquisitions, New 14 Jersey, Inc. 3 Stipulations of settlement and consent agreements: 15 a) Carolyn D. Boone (06-0635-EA) 14 16 b) Yvonne Rivera (08-0463-EA) 14 16 16 c) Trina D. Brown (07-0620-ER) 14 16 d) Wing Y. Leung (08-0943-ER) 14 16 17 e) Joseph A. Smith (08-0548-ER) 14 16 f) Mark R. Bangis (08-0820-ER) 14 16 18 g) Antonio Colon, Jr. (09-0069-ER) 14 16 h) Shannon E. Cremin (09-0206-EA) 14 16 19 i) William Crespo, Jr. (09-0131-EA) 14 16 j) Benjamin B. Edwards (08-0899-EA) 14 16 20 k) Johnny Nguyen (a/k/a Hoai Thuong Ngoc 14 16 Nguyen) (08-0893-EA) 21 l) Jean M. Morales-Rodriguez (a/k/a Jean 14 16 M. Morales) (07-0591-EA) 22 m) Jacqueline V. Watson (08-0182-ER) 14 16 4 Preliminary hearing concerning the exclusion of: 23 a) Shoumin Chai (a/k/a Min Chai, Joyce, 16 27 Dai, Chai Min, Lily Wang, Lily Wong) 24 (09-0227-EL) b) Frank T. Baldino (09-0296-EL) 16 26 25 c) John M. Regis (09-0273-EL) 16 27 5 1 CONTINUED AGENDA PUBLIC MEETING NO. 09-05-20 2 May 20, 2009, 10:40 a.m. ITEM PAGE VOTE 3 4 d) Jerry C. Romano (09-0274-EL) 16 27 e) Edward J. Sobol (09-0275-EL) 16 27 4 f) Joseph Spinnato (09-0272-EL) 16 27 g) Arthur J. Zagari (09-0276-EL) 16 27 5 5 Applications for suspension: 27 33,34 a) Kathleen M. Mason (09-0298-RC) 6 Sworn 30 b) Rashed Alamgir (09-0300-RC) 36 36 7 6 Petition of Charles M. Laster for early 37 38 Reapplication 8 7 Petition of Capmark Finance, Inc., for 38 47 a declaratory ruling and exemption from 9 all qualification requirement (PRN 0480901) 8 Petition of Marina District Development 47 51 10 Company, LLC, (d/b/a Borgata Hotel Casino & Spa) for temporary qualification for a 11 new director of its holding company, Boyd Gaming Corporation pursuant to NJAC 19:43-2.7 12 (PRN 1210901) 9 Petition of TotalUp, Inc., and Trump 51 53 13 Marina Associates, LLC (d/b/a Trump Marina Hotel Casino) for approval of "Total Craps" 14 as a variation of the authorized game of craps pursuant to NJSA 5:12-5 and NJAC 15 19:47-8.4 (PRN 0720905); and Proposed temporary adoption of amendments 16 to NJAC 19:451.12; 19:46-1.15, and 1.16A; and 19:47-1.2; and proposed new rules: 17 NJAC 19:46-1.11A and 19:47-1A.1 et seq. pursuant to NJSA 5:12-69(e) 18 10 Proposed adoption of amendments to NJAC 54 55 19:46-1.39 (transfers of progressive slot 19 jackpots 11 Proposed adoption of amendments to NJAC 55 56 20 19:46-1.7, 19:47-5.1 and 5.2 (Diamond Roulette) 12 Proposed adoption of amendments to NJAC 56 57 21 19:46-1.26B (gaming equipment and related devices utilizing alterable storage media) 22 13 Proposed publication of amendments to 57 58 NJAC 19:45-1.19 (acceptance to tips or 23 gratuities from patrons) 14 Proposed publication of amendments to 58 59 24 NJAC 19:45-1.25 (procedure for exchange of checks submitted by gaming or simulcast 25 wagering patrons; repurchase of cash equivalents) 6 1 CONTINUED AGENDA PUBLIC MEETING NO. 09-05-20 2 May 20, 2009, 10:40 a.m. ITEM PAGE VOTE 3 15 Proposed adoption of amendments to NJAC 59 60 19:46-1.13G (Caribbean stud poker table; 4 physical characteristics), 19:47-16.6 (Caribbean Stud wagers), 19:47-16.7 (Caribbean 5 Stud procedure for dealing the cards from a manual dealing shoe) 6 16 Proposed publication of amendments to 61 62 NJAC 19:42-2.1, 2.2, 2.4, 2.8, 19:45-1.8 and 7 new rule 19:48-3.1 and 3.2 (forfeiture of winnings or things of value obtained by a 8 prohibited person) 17 Petition of Harrah's Operating Company, adj. 9 Inc., Showboat Atlantic City Operating Company, LLC, Boardwalk Regency Corp., and 10 Bally's Park Place, Inc., for approval of the issuance of new senior secured notes and 11 other relief 12 13 14 15 16 17 18 19 20 21 22 23 24 25 7 1 E X H I B I T S : 2 NO. DESCRIPTION EVD 3 4 P-1 Remand for hearings 40 license X 5 P-2 Grant 14 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 8 1 (Public Meeting 09-05-20 was commenced 2 at 10:40 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 9 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 April 29, 8 2009, closed session minutes. 9 Litigate update regarding: William 10 Edwards and Caroline Edwards versus Adamar of 11 New Jersey, et al. 12 Item No. 1, ratification of the minutes 13 of April 29th, 2009, public meeting. 14 COMMISSIONER SOMMELING: Move to 15 approve. 16 COMMISSIONER FEDORKO: Second. 17 CHAIR KASSEKERT: The motion has been 18 made and seconded. All in favor? 19 (Ayes.) 20 CHAIR KASSEKERT: Opposed? 21 (No response.) 22 CHAIR KASSEKERT: Motion carries. 23 MR. NANCE: Item No. 2, application for 24 employee and casino service industry licenses. 25 This agenda item will be entered as Exhibit 10 ITEM NO. 2 1 List 1 and 2. 2 Exhibit List 1 consists of 20 3 applications for initial and/or renewal of 4 casino key and casino employee licenses. 5 The Division has objected to licensure. 6 COMMISSIONER FEDORKO: Motion to remand 7 for hearings. 8 VICE CHAIR EPPS: Second. 9 COMMISSIONER SOMMELING: Second. 10 CHAIR KASSEKERT: The motion has been 11 made and seconded. All in favor? 12 (Ayes.) 13 CHAIR KASSEKERT: Opposed? 14 (No response.) 15 CHAIR KASSEKERT: The motion carries. 16 MR. NANCE: Exhibit List 2 consists of 17 14 and applications for initial and/or 18 casino -- excuse me -- initial and/or renewal 19 of casino key and casino employee licenses. 20 Staff and the Division has recommended 21 that these licenses be granted. 22 VICE CHAIR EPPS: Motion to grant 23 applications. 24 COMMISSIONER FEDORKO: Second. 25 COMMISSIONER SOMMELING: Second. 11 ITEM NO. 2 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. NANCE: For your consideration is 8 the application of James F. Kinee for a casino 9 key employee license and for qualification as 10 Vice President of Operation for RIH 11 Acquisitions, New Jersey, LLC. 12 The Division has not taken a position 13 with respect to licensure and qualification. 14 VICE CHAIR EPPS: Motion to remand for 15 hearing. 16 COMMISSIONER FEDORKO: Second. 17 CHAIR KASSEKERT: A motion has been made 18 and seconded. This is a roll call vote. 19 MR. NANCE: Commissioner Fedorko? 20 COMMISSIONER FEDORKO: Yes. 21 MR. NANCE: Commissioner Sommeling? 22 COMMISSIONER SOMMELING: Yes. 23 MR. NANCE: Vice Chair Epps? 24 VICE CHAIR EPPS: Yes. 25 MR. NANCE: Chair Kassekert? 12 ITEM NO. 2 1 CHAIR KASSEKERT: Yes. 2 MR. NANCE: The record will reflect that 3 the motion is unanimous. 4 For consideration are the following 5 applications for initial and renewal of casino 6 key employees licenses and for qualification: 7 For William P. King, Jr., Executive Director of 8 Internal Audit for Adamar of New Jersey, Inc.; 9 Joseph Lupo, Senior Vice President of 10 Operations for Marina District Development 11 Company, LLC; and Joseph A. Sarnese, Vice 12 President of Table Game Marketing for RIH 13 Acquisitions, New Jersey, Inc. 14 Mr. Corbo? 15 CHAIR KASSEKERT: Good morning, Mr. 16 Corbo. 17 MR. CORBO: Good morning, Chair 18 Kassekert, Commissioners. 19 Just wanted to take this brief 20 opportunity to come down with Mr. Lupo. I 21 think you've all had the opportunity to meet 22 Joe Lupo. Joe is our Senior Vice President of 23 Operations. He's been with Borgata and an 24 integral part of Borgata since our opening in 25 2003. He recently took on some new 13 ITEM NO. 2 1 responsibilities, slots, table games, 2 relationship marketing, marketing, and probably 3 a few other areas that I've neglected to list. 4 And wanted to just come down and acknowledge 5 the event today. So thank you. 6 CHAIR KASSEKERT: Thank you. 7 Good morning, Mr. Lupo. How are you? 8 MR. LUPO: Good morning. Thank you. 9 MR. NANCE: Staff and the Division have 10 recommended had these applications be granted. 11 VICE CHAIR EPPS: Madame Chair, I move 12 that we grant the applications for initial 13 and/or renewal of casino key employee licenses 14 and qualifications for William P. King, Joseph 15 Lupo, and Joseph A. Sarnese. 16 COMMISSIONER SOMMELING: Second. 17 CHAIR KASSEKERT: Motion has been made 18 and seconded. This is a roll call vote. 19 MR. NANCE: Commissioner Fedorko? 20 COMMISSIONER FEDORKO: Yes. 21 MR. NANCE: Commissioner Sommeling? 22 COMMISSIONER SOMMELING: Yes. 23 MR. NANCE: Vice Chair Epps? 24 VICE CHAIR EPPS: Yes. 25 MR. NANCE: Chair Kassekert? 14 ITEM NO. 3 1 CHAIR KASSEKERT: Yes. 2 MR. NANCE: The record will reflect that 3 the motion is unanimous. 4 Item No. 3, stipulation of settlement 5 and consent agreements. When I call your name, 6 please come forward, stand behind this middle 7 table, spreading across the room so that you 8 may be seen: Carolyn Boone, Yvonne Rivera, 9 Trina Brown, Wing Leung, Joseph Smith, Mark 10 Bangis, Antonio Colon, Jr., Shannon Cremin, 11 William Crespo, Jr., Benjamin Edwards, Johnny 12 Nguyen, Jean Morales-Rodriquez, and Jacqueline 13 Watson. 14 CHAIR KASSEKERT: Has everyone whose 15 name been called come forward at this time? 16 Okay. 17 I'm going to ask that you each state 18 your name for the record, starting with you, 19 sir. 20 MR. LEUNG: Yes. 21 CHAIR KASSEKERT: What's your name? 22 MR. LEUNG: Wing Leung. 23 CHAIR KASSEKERT: Thank you. 24 Sir? 25 MR. EDWARDS: Benjamin Edwards. 15 ITEM NO. 3 1 MR. NGUYEN: Johnny Nguyen. 2 MR. COLON: Tony Colon. 3 MR. MORALES-RODRIQUEZ: Jean Morales. 4 MR. CRESPO: William Crespo, Jr. 5 CHAIR KASSEKERT: Okay. In a moment 6 we're going to vote on the stipulations which 7 you've 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. Division? 15 MS. HOWARD: Good morning, Madame Chair, 16 Commissioners. 17 The Division just requests that the 18 stipulations are approved as submitted. 19 CHAIR KASSEKERT: Thank you. Any 20 questions? 21 COMMISSIONER SOMMELING: Madame Chair, 22 move to approve the stipulations. 23 COMMISSIONER FEDORKO: Second. 24 CHAIR KASSEKERT: The motion has been 25 made and seconded. All in favor? 16 ITEM NO. 4 1 (Ayes.) 2 CHAIR KASSEKERT: Opposed? 3 (No response.) 4 CHAIR KASSEKERT: Motion carries. 5 Thank you for coming. Good luck. 6 FROM THE FLOOR: Thank you. 7 MR. NANCE: Item No. 4, preliminary 8 hearing concerning the exclusion of Shoumin 9 Chai, Frank Baldino, John Regis, Jerry Romano, 10 Edward Sobol, Joseph Spinnato, and Arthur 11 Zagari. 12 Miss Frigen? 13 MS. FRIGEN: Good morning, Madame Chair, 14 Commissioners. I'm aware that Donald Manno is 15 here on behalf of Frank Baldino. 16 Before we hear that case and from the 17 Division, let me inquire whether there are any 18 other individuals here or represented today? 19 (No response.) 20 MS. FRIGEN: I don't believe so. But I 21 just wanted to check. 22 CHAIR KASSEKERT: Okay. 23 MS. FRIGEN: Mr. Baldino? 24 I would ask the Division to go forward 25 first and state the basis for which its seeking 17 ITEM NO. 4 1 preliminary exclusion. 2 CHAIR KASSEKERT: Thank you. 3 MS. HOWARD: It is the Division's 4 position this morning that we have solid 5 grounds upon which we can base the application 6 for exclusion. The facts that the Division 7 relies on are represented in the Division's 8 petition for placement on -- Mr. Baldino's 9 placement in the exclusion list. 10 We've also asked that our application 11 for Mr. Baldino's preliminary placement on the 12 exclusion list be granted based upon the fact 13 that on February 27th, 2009, Mr. Baldino was 14 convicted of promoting gambling, which is not 15 only an offense of a third degree, but one 16 which is punishable by more than six months in 17 prison. In fact, Mr. Baldino, was sentenced to 18 a three-year probation term, fined $5,000 and 19 in ordered to perform 150 hours of community 20 service, among other provisions ordered by the 21 sentencing court. 22 Mr. Baldino's conviction stems from his 23 involvement in a wide-scale deceptive illegal 24 sports wagering operation which occurred in a 25 poker room located in the Borgata Casino Hotel 18 ITEM NO. 4 1 & Spa. Mr. Baldino admitted his involvement in 2 this illegal gambling operation. He provided 3 that his role in the scheme was to work in the 4 wire room and to take bets, a role that he was 5 actually compensated for. 6 Therefore, it is the Division's position 7 that we can establish a nexus between Mr. 8 Baldino's involvement in this criminal activity 9 which led to his conviction of promoting 10 gambling and the casino. 11 Mr. Baldino engaged in an illegally 12 gambling operation which occurred in the poker 13 room of one of the casinos that we are charged 14 with regulating. To permit him on the premises 15 of any New Jersey casino or hotel or facility 16 would not ensure the public's confidence in the 17 New Jersey's gambling institution or gambling 18 arena, and it would not be keeping up with our 19 charter of ensuring integrity in this industry. 20 And, as such, it is the Division's 21 position that due to the overall deceptive 22 nature of the scheme and the seriousness of his 23 conviction, which occurred on the casino 24 premises, that we can establish a reasonable 25 possibility that Mr. Baldino meets the criteria 19 ITEM NO. 4 1 for placement on the exclusion list. 2 Therefore, we request that Mr. Baldino's 3 preliminary placement on the exclusion list 4 pending final adjudication of the matter. Mr. 5 Baldino will be afforded the opportunity to 6 address the Division's concerns at a later 7 hearing. 8 Thank you. 9 CHAIR KASSEKERT: Thank you. 10 I'm sorry, sir. I didn't get your name. 11 MR. MANNO: Donald F. Manno. I'm an 12 attorney here in New Jersey, and I represent 13 Frank Baldino. I was involved in the 14 underlying criminal case, and I'm here on his 15 behalf today. 16 If the only thing this Commission looks 17 at is the indictment, then really I ought to 18 just pack my bags and disappear in the night. 19 Because if that's the final determination or if 20 that's enough for this Commission to go 21 forward, then we are doing real disservice. 22 I suggest to this Commission that you 23 need to look at the facts, you need to look at 24 the truth. You need to look at what happened. 25 And what has been presented to you this morning 20 ITEM NO. 4 1 by the Division is, at the very least, a 2 distortion. I say that with some candor, and I 3 say that -- don't say that lightly. 4 First of all, Frank Baldino was never in 5 New Jersey. He never appeared in New Jersey. 6 He never was at the Borgata. He never was 7 involved with any bookmaking or, for that 8 matter, gambling in New Jersey. He is, was, 9 and for the foreseeable future will be a 10 resident of Pennsylvania in Philadelphia. He 11 resided in Philadelphia. 12 When the Division of Gaming Enforcement 13 said he admitted to working in a wire room and 14 taking bets and getting paid for it, that's 15 absolutely correct. That wire room was in 16 Philadelphia. It had a very, very tenuous 17 connection with what was going on in New Jersey 18 and with what was going on in Borgata. In 19 fact, that connection is very similar to the 20 connection between Chevrolet and General 21 Motors. He was involved in a distinct and 22 discreet part of an operation that was owned by 23 and primarily a function and operated by an 24 individual who had another discreet, distinct 25 portion in New Jersey. 21 ITEM NO. 4 1 Yes, there was a technical violation of 2 New Jersey law. Yes, he is responsible to New 3 Jersey law because, ultimately, the funds that 4 were related to his wire-room operation in 5 Philadelphia -- those funds were connected to 6 the operation that operated in New Jersey. So 7 that there's no question there was legal 8 responsibility and criminal responsibility in 9 New Jersey. He admitted to that, was sentenced 10 to three years' probation. No jail time 11 whatsoever. He is serving his probation time 12 in Philadelphia, and, quite frankly, to exclude 13 him from the casinos in New Jersey is really 14 excluding somebody who doesn't come here. And 15 there is no allegation. There's no 16 representation that he's ever been in a casino, 17 much less involved with a criminal Act in New 18 Jersey. 19 So I understand the scope of what this 20 Commission will decide today, and that scope is 21 whether we go forward with the petition of the 22 Division at this point. And I understand the 23 standards upon which this Commission will make 24 their decision. I ask this Commission to 25 consider what is absolutely missing from this 22 ITEM NO. 4 1 petition by the Division. And what's missing 2 is, one, his involvement that -- we don't know 3 that he actually comes to New Jersey, would 4 come into the casino and gamble in the first 5 place. First thing that's missing. 6 Second thing that's missing -- and I 7 think this is absolutely critical -- is the 8 factual connection between what he admitted to 9 doing, that is, being involved in a wire room 10 in Philadelphia, and some effect on the -- on 11 what this Commission regulates in New Jersey. 12 And just because -- there's a lot of things in 13 the indictment, and I suggest to the Commission 14 the only thing that's relevant in the 15 indictment is the count to which he pled 16 guilty. There's a lot of other stuff in the 17 indictment that is touched on briefly by the 18 Commission's petition, the other counts. 19 There's counts of money laundry, and there's 20 other counts of usury. 21 First of all, he was not involved in any 22 of those other counts as a defendant. 23 Second of all, those other counts have 24 all been dismissed. They have never been 25 proven in any court and before any tribunal. 23 ITEM NO. 4 1 So that to consider anything other than the 2 count to which he pled guilty, which I think is 3 Count 3, which was aiding and abetting a 4 bookmaking business, would be unfair. And 5 because there is no connection whatsoever, and 6 I suggest to this Commission that his 7 involvement in this bookmaking business 8 similarly lacks a connection to not only the 9 Casino Control Commission or what you regulate 10 as the casino industry, but lacks a connection 11 to New Jersey other than a purely technical 12 one. And that technical one exists. I mean, 13 that's what the law is. The law is 14 technicalities. A technical connection that 15 made him responsible to the New Jersey criminal 16 law. 17 He's pled guilty and he is serving his 18 probationary sentence. 19 CHAIR KASSEKERT: Let me ask if there 20 are any questions before we hear the Division's 21 response? 22 Commissioner Epps? 23 COMMISSIONER EPPS: I'm a little bit 24 taken aback. 25 You said in your comments that the 24 ITEM NO. 4 1 Division's presentation was a distortion. If I 2 take that as one hundred percent accurate and 3 take the position that you presented as 4 accurate, wouldn't I still come to the same 5 conclusion that this is a person that should be 6 excluded? You just told me that this guy ran a 7 wire room in Philly -- or worked in a wire room 8 in Philly and took illegal bet or was involved 9 in a gambling operation which is illegal. We 10 have an in -- inim -- 11 CHAIR KASSEKERT: Inimicable. 12 MR. MANNO: I know what you mean. 13 VICE CHAIR EPPS: That one. That. 14 (Laughter.) 15 VICE CHAIR EPPS: That is at the 16 forefront of inimicality in New Jersey. That 17 speaks right to it. So based on the facts that 18 you presented -- and hear me out. You'll have 19 an opportunity to flesh this out at a hearing. 20 But my instincts say to me, based on what you 21 presented, you sealed the deal. I mean, you 22 presented the case. Division doesn't even have 23 to present a case. That speaks to inimicality 24 right there. Even if I take your 25 representation that everything that the 25 ITEM NO. 4 1 Division presented is false. 2 And the second thing is you -- you 3 presented in your statement that this guy 4 doesn't come to New Jersey, anyway, so what 5 does he care if we says he can't come? If he 6 doesn't want to come here anyway, and we say he 7 can't come. Everybody is happy. Because the 8 guy -- so I'm really lost as for what you're 9 presenting here that speaks to not taking the 10 action that's being sought. 11 Secondly, this action is a step short of 12 the ultimate conclusion. This is a preliminary 13 placement pending the hearing that will flesh 14 all these matters out. So based on nothing 15 that the Division has stated and everything 16 that you've presented, I don't see how I vote 17 any other way than to move for preliminary 18 placement on the exclusion list. 19 And unless my colleagues have something 20 to add, I make that motion. I move that we 21 place Mr. Baldino on the preliminary exclusion 22 list. 23 COMMISSIONER SOMMELING: Second. 24 CHAIR KASSEKERT: The motion has been 25 made and seconded. All in favor? 26 ITEM NO. 4 1 (Ayes.) 2 CHAIR KASSEKERT: Opposed? 3 (No response.) 4 CHAIR KASSEKERT: Motion carries. 5 MR. MANNO: Thank you for your time. 6 MS. HOWARD: Thank you. 7 MS. FRIGEN: I don't believe any of the 8 other individuals are present. I would just 9 refer this matter over to the Division. 10 MR. FICCHI: Thank you, Miss Frigen. 11 Good morning, Madame Chair, and 12 Commissioners. I'm here on the matters of Mr. 13 Regis, Romano, Sobol, Spinnato, and Zagari. 14 I was under the understanding they've 15 received good service. So they have been 16 served, you know, with the papers, and the 17 Division would rest on those papers and would 18 ask that you grant these petitions for 19 placement on the exclusion list. 20 Thank you. 21 CHAIR KASSEKERT: Thank you. 22 Any questions? 23 COMMISSIONER SOMMELING: No questions, 24 Madame Chair. 25 VICE CHAIR EPPS: Inimicality. 27 ITEM NO. 5 1 (Laughter.) 2 COMMISSIONER FEDORKO: Spell it. 3 VICE CHAIR EPPS: I move that we put -- 4 COMMISSIONER FEDORKO: Spell it. 5 VICE CHAIR EPPS: We don't have time. 6 COMMISSIONER FEDORKO: Okay. 7 VICE CHAIR EPPS: I move that we -- I 8 move that we place on the exclusion list the 9 individuals represented in Items a, c, d, e, f, 10 and g. 11 CHAIR KASSEKERT: Is there a second? 12 COMMISSIONER FEDORKO: Second. 13 COMMISSIONER SOMMELING: 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 Thank you. 21 MR. FICCHI: Thank you, Commissioner. 22 MS. HOWARD: Thank you. 23 MR. NANCE: Item No. 5, application for 24 suspension in Kathleen Mason and Rashed 25 Alamgir. 28 ITEM NO. 5 1 Miss Frigen? 2 MS. FRIGEN: Madame Chair, 3 Commissioners, I'm aware Miss Mason is present. 4 I would ask her to have a seat. 5 Let me just check for our records 6 whether Rashed Alamgir is present or 7 represented? 8 (No response.) 9 MS. FRIGEN: He, apparently, is not. 10 And I'll just preface this before we 11 hear any basis for which the Division is 12 seeking suspension, Miss Mason communicated to 13 me a little earlier today that she would that 14 like to seek an adjournment of this matter. 15 She would like to be represented by an 16 attorney. I told her I would have to present 17 this matter for your consideration as well as 18 hearing the Division's position. 19 CHAIR KASSEKERT: Thank you. 20 Mr. Biscieglia? 21 MR. BISCIEGLIA: Thank you. 22 The Division is going to have to object 23 to this request based on the fact that normally 24 in this -- we have had situations in the past 25 where the suspension application, based on 29 ITEM NO. 5 1 future representation by an attorney, that we 2 will adjourn the -- the application for 3 suspension. But normally that's accompanied by 4 some type of written documentation from the 5 attorney in the first place showing that there 6 is going to be representation, and it's also 7 usually accompanied with some type of written 8 guarantee that the person will not work in the 9 industry for the adjourned-through period. I 10 have not received either. I don't know if 11 these things exist. I just heard of these -- 12 adjournment request prior to the meeting 13 beginning, so I'm not sure if these things 14 exist or do not. I have not seen though, 15 though. 16 So based upon a lack of the type of 17 documentation that normally accompanies an 18 adjournment request for a suspension 19 application, the Division is going to have to 20 object and cannot consent it to. But we'll 21 ultimately abide by the Commission's ruling. 22 CHAIR KASSEKERT: Thank you. 23 MR. BISCIEGLIA: Thank you. 24 CHAIR KASSEKERT: Miss Mason, would you 25 first be sworn in, please. 30 ITEM NO. 5 1 MS. MASON: Yeah. 2 CHAIR KASSEKERT: Stand up and be sworn 3 in. 4 5 KATHLEEN M. MASON, was duly sworn to 6 testify in this matter. 7 8 MR. NANCE: Please state your name for 9 the record. 10 MS. MASON: Kathleen Mason. 11 MR. NANCE: Thank you. You may be 12 seated. 13 CHAIR KASSEKERT: Miss Mason, we'd like 14 to hear what you have to say, and specifically 15 address Mr. Biscieglia's concerns with respect 16 to representation. 17 MS. MASON: Well, prior to this meeting, 18 I did call and see if I was supposed to attend 19 or not. After speaking with -- I forget. 20 MS. FRIGEN: Me? Bernadette Frigen. 21 MS. MASON: I spoke with her. I forgot 22 her name. I'm sorry. 23 MS. FRIGEN: Okay. 24 MS. MASON: She told me that I can 25 attend or not. I didn't know I was supposed to 31 ITEM NO. 5 1 bring anything like what he told me that I had 2 to bring. But I thought -- I assumed my lawyer 3 for the case that I have, automatically would 4 use for her here. And when he I called him, he 5 told me, no. I would have to hire him for it 6 to see if I could get an adjournment so. 7 CHAIR KASSEKERT: What's your attorney's 8 name? 9 MS. MASON: His name is James Melletto 10 (phonetic). 11 MS. FRIGEN: And just for clarification, 12 we had received a request for deferral for Miss 13 Mason with respect to the proceedings, so I had 14 reached out to her to make sure she understood 15 that the deferral does not extend to the 16 application for suspension, and giving her the 17 option to appear today if she wanted. But this 18 was the first I heard about the request for 19 adjournment. 20 CHAIR KASSEKERT: And so you don't have 21 anything in writing from your attorney at this 22 point? 23 MS. MASON: No, ma'am. 24 CHAIR KASSEKERT: Okay. Let me ask if 25 the Commissioners have any questions? What 32 ITEM NO. 5 1 their pleasure is. 2 COMMISSIONER SOMMELING: No questions, 3 Madame Chair. 4 COMMISSIONER FEDORKO: Are you working 5 now? 6 MS. MASON: No, I'm not. 7 COMMISSIONER EPPS: Is it your intention 8 to hire Mr. Melletto to represent you -- 9 MS. MASON: Yes, sir. 10 VICE CHAIR EPPS: -- here before the 11 Commission? 12 MS. MASON: Yes, sir. 13 VICE CHAIR EPPS: And you're not working 14 in the industry at all right now? 15 MS. MASON: At all. 16 CHAIR KASSEKERT: So just carry it. 17 VICE CHAIR EPPS: We can carry it. 18 COMMISSIONER SOMMELING: Madame Chair, I 19 make a motion that we carry it until the next 20 meeting. 21 CHAIR KASSEKERT: Is there a second? 22 VICE CHAIR EPPS: Second. 23 CHAIR KASSEKERT: The motion has been 24 made and seconded. All in favor? 25 (Ayes.) 33 ITEM NO. 5 1 CHAIR KASSEKERT: Opposed? 2 COMMISSIONER FEDORKO: Opposed. 3 CHAIR KASSEKERT: Okay. Motion passes. 4 Now, what we have done, Miss Mason, is 5 we're going to adjourn this for one meeting, 6 and in the space of that one meeting, you need 7 to get your representation. You need to follow 8 what the Attorney General's Office has 9 suggested in terms of getting a letter. And 10 you need to be in touch with both the Division 11 and Miss Frigen on this matter. And we will 12 carry it for one meeting. And if that's not -- 13 you know, if we don't have that information, 14 then we'll be forced to take action. 15 MS. MASON: Which is June 3rd? 16 CHAIR KASSEKERT: June 3rd. Yes. 17 VICE CHAIR EPPS: June 3rd. Madame 18 Chair, I think we need to -- I think I'd like 19 to amend the motion. I think we may have to 20 rescind it or however we need to do it. But I 21 was wondering if we could add the provision 22 that in the interim, you can't work in the 23 industry pending the adjournment -- during the 24 term of the adjournment. So if something comes 25 up, you can't just go back. So you have to 34 ITEM NO. 5 1 stay out of the industry for that -- that term. 2 MS. MASON: Right. Okay. 3 VICE CHAIR EPPS: You can't really work 4 until June 2nd in the industry. 5 MR. BISCIEGLIA: Actually, Commissioner, 6 if it's acceptable to the Commission, the 7 Division would ask that this Mason provide a 8 written statement to that effect to the 9 Commission prior to the meeting ending or 10 immediately after the meeting that the Division 11 be provided with a copy of that today. 12 COMMISSIONER EPPS: Okay. Bernadette 13 will work that out. 14 MS. FRIGEN: I can do that. 15 CHAIR KASSEKERT: Very good. 16 VICE CHAIR EPPS: I move that we rescind 17 the prior -- the previous motion. 18 MS. FAUNTLEROY: You need to reconsider. 19 A motion for reconsideration. 20 VICE CHAIR EPPS: Okay. I move for a 21 motion -- I move a motion to reconsider the 22 prior motion. 23 CHAIR KASSEKERT: Is there a second? 24 COMMISSIONER SOMMELING: Second. 25 CHAIR KASSEKERT: The motion has been 35 ITEM NO. 5 1 made and seconded. All in favor? 2 (Ayes.) 3 CHAIR KASSEKERT: Opposed? 4 (No response.) 5 CHAIR KASSEKERT: Motion carries. 6 COMMISSIONER EPPS: Now reconsideration 7 of the prior motion, I move that we amend the 8 motion to include the provision that the 9 Respondent not work in the interim during the 10 pendency of the adjournment. 11 COMMISSIONER SOMMELING: Second. 12 CHAIR KASSEKERT: I'm sorry? You can 13 vote for that? Okay. 14 The motion has been made and seconded. 15 All in favor? 16 (Ayes.) 17 CHAIR KASSEKERT: Opposed? 18 (No response.) 19 CHAIR KASSEKERT: The motion carries. 20 Miss Frigen will explain all this to 21 you, and we will work out the -- with respect 22 to giving the letter to the Division that you 23 won't be working. And, again, we're giving you 24 until our next meeting to provide that letter 25 of representation. 36 ITEM NO. 5 1 MS. MASON: Thank you very much. 2 CHAIR KASSEKERT: You're welcome. 3 MS. FRIGEN: Okay. And I don't believe 4 he is present. I would refer the second case, 5 Rashed Alamgir, over to the Division. 6 MR. BISCIEGLIA: Thank you. 7 The Division only has to add that the 8 matter is pending a grand jury with no date 9 set. 10 Thank you. 11 CHAIR KASSEKERT: Thank you. 12 Any questions? 13 COMMISSIONER SOMMELING: Madame Chair, 14 move to grant the Division's application for 15 suspension for Mr. Alamgir. 16 COMMISSIONER FEDORKO: Second. 17 CHAIR KASSEKERT: The motion has been 18 made and seconded. All in favor? 19 (Ayes.) 20 CHAIR KASSEKERT: Opposed? 21 (No response.) 22 CHAIR KASSEKERT: Motion carries. 23 Motion carries. 24 COMMISSIONER EPPS: Aye. 25 (Laughter.) 37 ITEM NO. 6 1 MR. NANCE: Item No. 6, petition of 2 Charles M. Laster for early reapplication. 3 Miss Frigen? 4 MS. FRIGEN: Mr. Laster is present. 5 He's having a seat at the table. 6 For your consideration is his petition 7 seeking permission to reapply early for a 8 registration and/or noncredential hotel 9 employment. 10 The Division has interposed no objection 11 to this petition. 12 CHAIR KASSEKERT: Thank you. 13 Mr. Laster? Is there anything you'd 14 like to say today? 15 MR. LASTER: No, ma'am. 16 CHAIR KASSEKERT: No, ma'am. Okay. 17 Mr. Biscieglia? 18 MR. BISCIEGLIA: Madame Chair, as Miss 19 Frigen has stated, the Division has interposed 20 no objection, and we'll answer any questions 21 that the Commission may have. 22 Thank you. 23 CHAIR KASSEKERT: Thank you. 24 Any questions? 25 COMMISSIONER SOMMELING: No questions, 38 ITEM NO. 7 1 Madame Chair. 2 COMMISSIONER FEDORKO: Grant Mr. Laster 3 permission to reapply early for a casino 4 service employee registration and/or to obtain 5 payment early as a noncredential hotel 6 employee. 7 COMMISSIONER SOMMELING: Second. 8 CHAIR KASSEKERT: The motion has been 9 made and seconded. All in favor? 10 (Ayes.) 11 CHAIR KASSEKERT: Opposed? 12 (No response.) 13 CHAIR KASSEKERT: Motion carries. 14 Thank you for coming. 15 MR. LASTER: Thank you. 16 MR. BISCIEGLIA: Thank you. 17 MR. NANCE: Item No. 7, petition of 18 Capmark Financial, Inc., for declaratory ruling 19 and exemption for all qualification 20 requirements. 21 Miss Nagengast? 22 MS. NAGENGAST: Good morning, Chair and 23 Commissioners. 24 For your consideration this morning is 25 the petition of Capmark, Inc. It seeks a 39 ITEM NO. 7 1 declaratory ruling that it is an entity 2 qualifier and financial source and that it is 3 exempt from the qualifications requirements of 4 84b and 85c. In the alternative it seeks a 5 ruling that it derived no benefit for its 6 services from a New Jersey licensed casino, 7 that it provides no goods or services to casino 8 licensees on a regular continuing basis, that 9 it does not transact business equal to or 10 greater than $150,000, or that it does not 11 require to apply for a CSI license. 12 Dennis Daly is here on behalf of Capmark 13 and Jack Adams on behalf of the Division. 14 CHAIR KASSEKERT: Thank you. 15 Good morning, Mr. Daly. 16 MR. DALY: Good morning, Chair and 17 Commissioners. Dennis Daly, Sterns & Weinroth, 18 here for the Petitioner, Capmark. 19 As was just indicated, there are several 20 different theories on which Capmark would 21 proceed, but I would ask and suggest that we 22 concentrate, quite simply, on the initial and 23 the main thrust of the argument; that is, that 24 Capmark should be exempt from the licensing 25 criteria by virtue of its status as a licensed 40 ITEM NO. 7 1 lending institution that services a casino 2 loan. 3 As far as I'm aware, there is no other 4 circumstance in the history of the Casino 5 Control Commission where any entity serving in 6 such a capacity was required to apply for or 7 obtain a casino service industry license. As I 8 lay out in the petition, the one most identical 9 circumstance involves the Resorts Casino loan 10 where the servicer there was identified on the 11 record and found to be a financial source and 12 an entity qualifier for Resorts Casino but then 13 found exempt from the qualification requirement 14 by virtue of its status as a licensed lending 15 institution. I suggest to you that the 16 situation with regard to Capmark is identical. 17 There is no difference that I can perceive 18 between the two situations, and it is 19 fundamental, I think, to the regulatory process 20 that entities or individuals who are in 21 identical circumstances will be treated by the 22 regulatory process in identical fashion. 23 So I would suggest that we've just stop 24 at this point without considering the 25 alternative theories and see if we can't 41 ITEM NO. 7 1 resolve the matter in that fashion. 2 CHAIR KASSEKERT: Any questions before 3 we hear from Mr. Adams? 4 VICE CHAIR EPPS: I'll wait and hear 5 from Mr. Adams first. 6 CHAIR KASSEKERT: Want to? 7 Mr. Adams? 8 MR. ADAMS: Madame Chair, Commissioners, 9 you have our response to the petition. I just 10 want to emphasize, we are relying on a lot of 11 the representations that have been made. My 12 analysis indicates that it is very similar to 13 the other situation involving Resorts. And we 14 just think, under all the facts that have been 15 presented so far, that the relief that has been 16 requested would be consistent with what the 17 Commission has really done in other situations 18 like this. Not that there's been that many. 19 But if you have any questions, I'll be 20 happy to answer them. 21 CHAIR KASSEKERT: Commissioner Epps? 22 COMMISSIONER EPPS: What is the function 23 that Capmark is providing specifically at 24 Hilton? 25 MR. DALY: At Hilton? Well, it doesn't 42 ITEM NO. 7 1 provide any function at Hilton. It receives 2 payments which it then distributes to the 3 participants and the other banks and lending 4 institutions that are at the bottom of the 5 financing arrangement here. It is, in essence, 6 simply a conduit for the mortgage payments, if 7 you will, to simplify it, that Resorts -- 8 excuse me -- Hilton paying its mortgage. 9 Capmark provides the service of distributing 10 that -- those payments to the banks and other 11 lenders who have participatory interests in 12 that loan. 13 COMMISSIONER EPPS: But, so Capmark 14 doesn't hold a mortgage or isn't financing the 15 loan at all in this transaction? 16 MR. DALY: Correct. Correct. And that 17 is exactly the circumstance that Key Re is in 18 with regards regard to Resorts loan. 19 COMMISSIONER EPPS: But I don't see 20 how -- and I understand your comparison. But 21 in this particular case, I don't see how 22 they're -- Capmark is a financial source if 23 they're not providing financing? 24 MR. DALY: It was -- Key Re was 25 designated as a financial source in the Resorts 43 ITEM NO. 7 1 matter. And, again, the circumstances and the 2 services that they provide are identically the 3 same. They -- these are functions that in 4 simpler economic times when the loans were much 5 more straightforward. The casinos paid a bank, 6 and perhaps that bank had a consortium of other 7 banks that it, you know, derived funds from. 8 The banks themselves, the lead bank would 9 perform those services of distributing out the 10 monies that were due to the other participants. 11 With these newer, more complicated 12 financial arrangements, that role has become a 13 specialty, and it is performed by entities that 14 are known as servicers. Key Re and Capmark are 15 both in that capacity. 16 COMMISSIONER EPPS: Well, in all candor, 17 I have it -- speaking for myself, I haven't had 18 the opportunity to do an analysis of the 19 comp -- comparing situations between Cape -- 20 Capmark. 21 MR. DALY: Capmark. 22 VICE CHAIR EPPS: And Capmark and Key 23 Re. 24 MR. DALY: Capmark, KeyBanc. It goes by 25 any number of names. 44 ITEM NO. 7 1 VICE CHAIR EPPS: In other situations. 2 Let me ask this other question that may get us 3 to a conclusion. Is Capmark similarly 4 regulated in other states where it does the 5 same type of transactions that may -- you know 6 where I'm going along the lines of -- 7 MR. DALY: Yes. Yes. I do. And it is. 8 It's a licensed lending institution in four 9 different states; California, Nevada, Hawaii, 10 and I believe, North Dakota. 11 VICE CHAIR EPPS: So it is regulated in 12 other states where it does business, which 13 might -- 14 MR. DALY: It's licensed institutions in 15 those particular states. It's regulated in 16 other capacities that serves in a variety of 17 other states. 18 VICE CHAIR EPPS: We have in the past 19 granted exemption for institutions who are 20 similarly regulated in other states. 21 MR. DALY: Right. 22 VICE CHAIR EPPS: Which kind of gets us 23 to -- if we go along that line, it kind of gets 24 us to the conclusion that they can participate 25 by exemption under the provision that they are 45 ITEM NO. 7 1 similarly regulated. So if you are able to 2 give us -- do you think that within ten days or 3 so you could give us documentation establishing 4 that they're regulated in other states 5 sufficient to our satisfaction under that 6 exemption? 7 MR. DALY: Attached to the petition is a 8 list of all the states in which it is regulated 9 in one capacity or another. It was Exhibit A 10 to the petition. I don't have -- I didn't 11 supply the original documents, like the license 12 certificates, if indeed such exist. I don't 13 know. But I can certainly provide that 14 information to you in a more original forum 15 than the list that I have there. But, again, 16 in Exhibit A you do have a list of all of the 17 states in which it is regulated. 18 COMMISSIONER EPPS: Well, Madame Chair, 19 through you, I think I would have a comfort 20 level granting an exemption from the 21 requirement to file under the provision that 22 we've used in the past that the company is 23 similarly regulated in other states provided 24 that we get the necessary documentation within 25 ten days. I would move approval that way. 46 ITEM NO. 7 1 So I would grant -- I would move that we 2 grant Capmark an exemption from nongaming 3 regulated casino service licensures permitted 4 by our statute in 5:12-92c and the 5 Administrative Code 19:51-1.13 subject to the 6 condition that they provide evidence of its 7 comparable regulations within ten business 8 days. 9 COMMISSIONER SOMMELING: Second. 10 CHAIR KASSEKERT: And are you also 11 moving to deny the Petitioner's -- 12 COMMISSIONER EPPS: The declaratory 13 ruling that it's a qualifier and financial 14 source, I would move that we deny, and that the 15 request to find that it derives no benefit from 16 the -- for its service from a New Jersey 17 licensed casino, that it provides no goods or 18 services to a licensee on a regular or 19 continuing basis, and it does not transact 20 business that is equal to or great than 21 $150,000 within a 12 month period, as we can't 22 make those determinations -- well, we haven't 23 even gone into detail. So based on the items 24 presented, I'll deny that there was proofs -- 25 sufficient proofs on those items, and I'll move 47 ITEM NO. 8 1 that we grant the exemption in the way 2 previously stated as regulated under comparable 3 regulation. 4 COMMISSIONER SOMMELING: Second. 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 MR. DALY: Thank you. 12 CHAIR KASSEKERT: Thank you. 13 MR. NANCE: Item No. 8, petition of 14 Marina District Development Company, LLC, for 15 temporary qualification for a new director of 16 its holding company, Boyd Gaming Corporation, 17 pursuant to NJAC 19:43-2.7. 18 Miss Frank? 19 MS. FRANK: Good morning, Chair, and 20 Commissioners. 21 A draft resolution on the temporary 22 qualification of Miss Spadafor has been 23 circulated. 24 We have Joe Corbo here for Borgata and 25 Jim Fogarty for the Division. 48 ITEM NO. 8 1 CHAIR KASSEKERT: Good morning, Mr. 2 Corbo. 3 MR. CORBO: Thank you, Chair, 4 Commissioners. 5 First, I would like to introduce Miss 6 Spadafor, who has accompanied me here, who is a 7 perspective board member on Boyd Gaming 8 Corporation. I'd also like to introduce Brian 9 Larson, who you all know, who is the Executive 10 Vice President and General Counsel for Boyd 11 Gaming Corporation. 12 As you know, Miss Spadafor has been 13 nominated to be on Boyd Board of Directors. 14 There was a shareholders meeting to be held at 15 the Borgata tomorrow, and we fully expect that 16 Miss Spadafor will be appointed to be on the 17 board as of tomorrow. In fact, we very much 18 appreciate your hearing this petition today 19 because, obviously, the timing works out well 20 for Miss Spadafor to be here for the meeting 21 tomorrow. 22 We're very pleased on behalf of Boyd 23 that Miss Spadafor will be joining Boyd's 24 board. Her background is very varied and 25 diverse, including the fact that she is a 49 ITEM NO. 8 1 graduate of Harvard Law School. She is also a 2 registered nurse. She's practiced law both in 3 a private setting and also as in-house counsel. 4 She is a founder of a consulting group, 5 Spadafor Clay Group, Inc. And she's the 6 President and Chief Executive Officer of that 7 entity. And she also serves as the Chief 8 Executive Officer of St. Jude's Ranch for 9 Children, which I think you will all recognize 10 is a charitable entity. It provides charitable 11 services for abandoned and abused children. 12 So we're very pleased to have Miss 13 Spadafor here today and would urge, obviously, 14 that you grant the petition that is before you 15 today. 16 Thank you. 17 CHAIR KASSEKERT: Thank you. 18 Good morning, Miss Spadafor. 19 MS. SPADAFOR: Good morning. Thank you. 20 CHAIR KASSEKERT: Welcome here. 21 Mr. Fogarty? 22 MR. FOGARTY: Good morning, 23 Commissioners. 24 We filed a letter dated May 11th, 2009, 25 that I signed, I think. Yes. Not objecting to 50 ITEM NO. 8 1 Miss Spadafor being a member of Boyd's Board of 2 Directors pending a full inquiry by us. 3 And we have no objection to the waiver 4 of that 30-day period of time, which I'm not 5 sure we're in or out of it, but in any event, 6 we waive it. 7 MR. CORBO: I think we're still in it. 8 MR. FOGARTY: And I've seen the draft 9 resolution that's been provided to me. We have 10 no objection to its entry. 11 CHAIR KASSEKERT: Thank you. 12 Any questions? 13 COMMISSIONER SOMMELING: No questions, 14 Madame Chair. 15 VICE CHAIR EPPS: Madame Chair, I move 16 that we adopt the draft resolution and 17 authorize Christine Spadafor on a temporary 18 basis prior to her plenary qualification to 19 assume the duties and exercise the powers of 20 Outside Director for Boyd Gaming Corporation 21 subject to the conditions contained in NJAC 22 19:43-2.7 which, among other things, require 23 that she file a PHD-MJ and New Jersey 24 supplemental by June 4th, 2009. 25 COMMISSIONER SOMMELING: Second. 51 ITEM NO. 9 1 CHAIR KASSEKERT: Motion has been made 2 and seconded. This is a role call vote. 3 MR. NANCE: Commissioner Fedorko? 4 COMMISSIONER FEDORKO: Yes. 5 MR. NANCE: Commissioner Sommeling? 6 COMMISSIONER SOMMELING: Yes. 7 MR. NANCE: Vice Chair Epps? 8 VICE CHAIR EPPS: Yes. 9 MR. NANCE: Chair Kassekert? 10 CHAIR KASSEKERT: Yes. 11 MR. NANCE: The record will reflect that 12 the motion is unanimous. 13 CHAIR KASSEKERT: Thank you. 14 MS. SPADAFOR: Thank you very much. 15 MR. CORBO: Thank you. 16 MR. NANCE: Item No. 9, petition of 17 TotalUp, Inc., and Trump Marina Associates, 18 LLC, for approval of "Total Craps" as a 19 variation of the authorized game of craps 20 pursuant to NJSA 5:12-5 and NJAC 19:47-8.4. 21 And proposed temporary adoption of 22 amendments and proposed new rules concerning 23 "Total Craps" as a variation of the authorized 24 games of craps. 25 Mr. Briliant? 52 ITEM NO. 9 1 MR. BRILIANT: Okay. 2 CHAIR KASSEKERT: Good morning, Mr. 3 Briliant. 4 MR. BRILIANT: Good morning, Madame 5 Chair and Commissioners. 6 You have before you a set of proposed 7 temporary regulations that would permit a test 8 of the variation of the game of craps. This 9 uses an automated craps shaker and a condensed 10 layout which is placed on either a blackjack or 11 a mini bac table. 12 We have recommended that if the game is 13 approved or -- excuse me, if the test is 14 approved, that it be subject to certain 15 conditions which we've laid out in our 16 memorandum to you. 17 I would also note that we have received 18 the release and indemnification from the 19 sponsor, Trump Marina, as required by the regs, 20 so the Commission could at this point proceed 21 to review the proposal and approve the test if 22 it desires to do so. 23 CHAIR KASSEKERT: Good morning, Mr. 24 Ficchi, again. 25 MR. FICCHI: Good morning, Madame Chair, 53 ITEM NO. 9 1 Commissioners. 2 The Division has reviewed the game and 3 the proposed regulatory amendments as provided 4 to Mr. Briliant, and the Division has no 5 objection to the adoption of that game by the 6 Commission. 7 Thank you. 8 CHAIR KASSEKERT: Thank you. 9 Any questions? 10 COMMISSIONER SOMMELING: Madame Chair, 11 move to approve, A, temporarily adopt the 12 amendments and new rules contained in the 13 Notice of Proposal for the purpose of 14 conducting a test of the game; 15 And, B, condition any test of the wager 16 upon the filing with and the approval of by the 17 Division of Compliance of all necessary tests 18 and submissions. 19 COMMISSIONER EPPS: 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. 54 ITEM NO. 10 1 MR. FICCHI: Thank you. 2 MR. NANCE: Item No. 10, proposed 3 adoption of amendments concerning transfers of 4 progress slot jackpots. 5 Mr. Briliant? 6 MR. BRILIANT: Commissioners, the 7 attached proposal would clarify and expedite 8 the posting procedure required for the transfer 9 of the progressive slot machine jackpot. 10 Basically, the proposal will permit the 11 required 30-day notice to be posted as soon as 12 a petition for the proposed transfer has been 13 filed as long as the notice also indicates that 14 the proposed transfer is subject to Commission 15 approval. 16 Notice of Proposal was published in the 17 New Jersey Register on March the 2nd, and when 18 the public comment period expired on May 1st of 19 2009, no comments had been received. 20 The matter is now before you for final 21 action. 22 CHAIR KASSEKERT: Thank you. 23 Any questions? 24 COMMISSIONER SOMMELING: No questions, 25 Madame Chair. 55 ITEM NO. 11 1 COMMISSIONER FEDORKO: Motion to adopt 2 as published without change. 3 VICE CHAIR EPPS: 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: Item No. 11, proposed 11 adoption of amendments concerning Diamond 12 Roulette. 13 Mr. Briliant? 14 MR. BRILIANT: All right. 15 Commissioners, this proposal would authorize 16 the game of Diamond Roulette, which is a 17 variation of the authorized game of roulette. 18 It includes most of the standard roulette 19 wagers but also permits additional wagers on 20 six, seven, or eight different numbers on a -- 21 in colored sections of the roulette wheel. 22 This is actually a reproposal. It was 23 published in the New Jersey Register on March 24 the 2nd, 2009. No comments were received 25 during either the first comment period or the 56 ITEM NO. 12 1 reproposal period, which expired on May 1st of 2 2009. 3 So the matter is now before the 4 Commission for final action. 5 CHAIR KASSEKERT: Thank you. 6 Any questions? 7 COMMISSIONER SOMMELING: No questions, 8 Madame Chair. 9 COMMISSIONER FEDORKO: Motion to adopt 10 as published without change. 11 COMMISSIONER SOMMELING: 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: The motion carries. 18 MR. BRILIANT: Thank you. 19 MR. NANCE: Item No. 12, proposed 20 adoption of amendments concerning gaming 21 equipment and related devices utilizing 22 alterable storage media. 23 MR. MONCRIEF: Madame Chair, members of 24 the Commission, the matter before you is a 25 consideration of adoption of amendments to NJAC 57 ITEM NO. 13 1 19:46-1.26B, which amends the regulations 2 governing the use of alterable storage media in 3 gaming and related devices. 4 This matter was published and 5 temporarily adopted on January 7th, 2009. The 6 public comment period ended on April 19th. No 7 comments were received. And I now leave it for 8 your consideration. 9 CHAIR KASSEKERT: Thank you. 10 Any questions? 11 COMMISSIONER SOMMELING: No questions, 12 Madame Chair. 13 COMMISSIONER FEDORKO: Motion to adopt 14 as published. 15 COMMISSIONER EPPS: 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. 13, proposed 23 publication of amendments concerning acceptance 24 of tips or gratuities from patrons. 25 Mr. Moncrief? 58 ITEM NO. 14 1 MR. MONCRIEF: Madame Chair, members of 2 the Commission, for your consideration now is 3 the proposed publication of amendments to NJAC 4 19:45-1.19 which governed the acceptance of 5 tips or gratuity from patrons. 6 These amendments were brought on by the 7 current legislative changes that recently 8 passed, and this is basically a codification of 9 those legislative changes and the regulations. 10 So I'll leave the matter for you to 11 consider for publication. 12 CHAIR KASSEKERT: Thank you. 13 Any questions? 14 COMMISSIONER SOMMELING: No questions, 15 Madame Chair. 16 COMMISSIONER FEDORKO: Motion to approve 17 for publication. 18 COMMISSIONER SOMMELING: 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. NANCE: Item No. 14, proposed 59 ITEM NO. 15 1 publication of amendments to NJAC 19:45-1.25. 2 Mr. Moncrief? 3 MR. MONCRIEF: Madame Chair, members of 4 the Commission, again, this is a matter for you 5 to consider publication of amendments to 6 19:45-1.25 which, again, codify legislative 7 changes in the casino control regulations 8 governing the exchanges of checks submitted by 9 gaming and simulcast wagering patrons to casino 10 licensees. 11 I leave the matter for you to consider 12 publication on the amendments. 13 CHAIR KASSEKERT: Any questions? 14 COMMISSIONER SOMMELING: No questions, 15 Madame Chair. 16 COMMISSIONER FEDORKO: Approve for 17 publication. 18 VICE CHAIR 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. NANCE: Item No. 15, proposed 60 ITEM NO. 15 1 adoption of amendments to NJAC 19:46-1.13G, 2 19:47-16.6, and 19:27 -- excuse me, 19:47-16.7. 3 Mr. Moncrief? 4 MR. MONCRIEF: Madame Chair, members of 5 the Commissioners, the amendments before you 6 now were temporarily adopted and published for 7 public comment on January 21st of 2009. They 8 relate to changes in the regulations governing 9 the devices used to accept progressive wagers 10 in the game of Caribbean Stud poker. 11 Public comment period ended on May 1st, 12 and no comments were received from the public. 13 I now leave the matter for your 14 consideration. 15 CHAIR KASSEKERT: Thank you. 16 Any questions? 17 COMMISSIONER SOMMELING: Move to adopt 18 as published, Madame Chair. 19 COMMISSIONER FEDORKO: Second. 20 CHAIR KASSEKERT: The motion has been 21 made and seconded. All in favor? 22 (Ayes.) 23 CHAIR KASSEKERT: Opposed? 24 (No response.) 25 CHAIR KASSEKERT: Motion carries. 61 ITEM NO. 16 1 MR. NANCE: Item No. 16, proposed 2 publication of amendments concerning for -- 3 excuse me -- for publication of amendments and 4 new rule concerning forfeiture of winnings or 5 things of value obtained by a prohibited 6 person. 7 Mr. Moncrief? 8 MR. MONCRIEF: Madame Chair, members of 9 the Commission, the proposed amendments and new 10 rules before you basically set forth the 11 framework for which winnings or things of value 12 that may be obtained by a prohibited person, 13 which would be someone on the self-exclusion 14 list, someone on the exclusion list, or an 15 underaged gambler, how those winnings should be 16 seized by casino licensees, how they should be 17 processed and held until a forfeiture matter is 18 brought by the Division. And a new rule also 19 sets forth the procedure for which the 20 forfeiture matter should be brought and how if 21 those matters -- if those funds are deemed 22 forfeited by you, how they are to be disposed 23 of. 24 The staff recommends that you publish 25 the matter for public comment to determine if 62 ITEM NO. 17 1 the rule should be adopted permanently. 2 CHAIR KASSEKERT: Thank you. 3 Any questions? 4 VICE CHAIR EPPS: No questions, ma'am. 5 COMMISSIONER SOMMELING: No questions, 6 Madame Chair. 7 VICE CHAIR EPPS: Move that we approve 8 for publication. 9 COMMISSIONER FEDORKO: Second. 10 CHAIR KASSEKERT: The motion has been 11 made and seconded. All in favor? 12 (Ayes.) 13 CHAIR KASSEKERT: Opposed? 14 (No response.) 15 CHAIR KASSEKERT: Motion carries. 16 MR. MONCRIEF: Thank you. 17 CHAIR KASSEKERT: Thank you. 18 MR. NANCE: Item No. 17 has been 19 adjourned at the request of the Petitioners. 20 In accordance with Resolution No. 21 08-12-10-22, the next closed session of the 22 Commission shall be held on Wednesday, June 23 3rd, 2009, at 9:15 a.m. in the Commission 24 offices. 25 It is now time for the public 63 1 participation portion of the meeting. 2 CHAIR KASSEKERT: Is there anyone from 3 the publish that wishes to be heard? 4 (No response.) 5 CHAIR KASSEKERT: Seeing no one, I will 6 declare this portion of the meeting closed and 7 entertain a motion to adjourn. 8 COMMISSIONER SOMMELING: Motion to 9 adjourn. 10 VICE CHAIR EPPS: 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 Thank you. 18 (Public Meeting 09-05-20 was adjourned 19 at 11:28 a.m.) 20 21 22 23 24 25 64 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: May 24, 2009 23 My Commission Expires on July 10, 2009 24 ID No 2062871 25