1 1 STATE OF NEW JERSEY 2 CASINO CONTROL COMMISSION 3 - - - - - - - - - - - - - - - - - - - 4 5 PUBLIC MEETING NO. 09-10-14 6 7 - - - - - - - - - - - - - - - - - - - 8 9 Wednesday, October 14, 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 10:35 a.m. to 12:26 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 WILLIAM T. SOMMELING, COMMISSIONER 4 SHARON ANNE HARRINGTON, COMMISSIONER 5 PRESENT FOR THE CASINO CONTROL COMMISSION: 6 DARYL W. NANCE, ADMINISTRATIVE ANALYST 7 OFFICE OF THE GENERAL COUNSEL: DIANNA W. FAUNTLEROY, GENERAL COUNSEL/EXECUTIVE 8 SECRETARY MARY WOZNIAK, ASSISTANT GENERAL COUNSEL 9 TERESA M. NAGENGAST, SENIOR COUNSEL SETH H. BRILLIANT, SENIOR COUNSEL 10 TRACY E. RICHARDSON, COUNSEL CLAIRE FRANK, PROGRAM MANAGER 11 BERNADETTE T. FRIGEN, PROGRAM SUPERVISOR 12 DIVISION OF GAMING ENFORCEMENT: DEPUTY ATTORNEYS GENERAL 13 BRIAN C. BISCIEGLIA, DEPUTY ATTORNEY GENERAL TIMOTHY C. FICCHI, DEPUTY ATTORNEY GENERAL 14 JAMES C. FOGARTY, DEPUTY ATTORNEY GENERAL LOUIS ROGACKI, DEPUTY ATTORNEY GENERAL 15 DOROTHY TURI, 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. 5 BERNADETTE T. FRIGEN, PROGRAM SUPERVISOR BRIAN C. BISCIEGLIA, DEPUTY ATTORNEY 3 GENERAL THE CARROLL LAW FIRM 4 REGINALD S. FLOYD, ESQ. FOR: JAMES B. DiMARCO 5 ITEM NO. 8 TERESA M. NAGENGAST, SENIOR COUNSEL 6 LOUIS RAGACKI, DEPUTY ATTORNEY GENERAL COOPER LEVENSON 7 LYNNE KAUFMAN, ESQ. FOR: KGM 8 FREDERICK T. CUNNINGHAM, ESQ. FOR: CASINO LICENSEES 9 ITEM NO. 9 MARY WOZNIAK, ASSISTANT GENERAL COUNSEL 10 DOROTHY TURI, DEPUTY ATTORNEY GENERAL STERNS & WEINROTH, PC 11 PAUL M. O'GARA, ESQ. FOR: HARRAH'S ENTITIES 12 ITEM NO. 10 TRACY E. RICHARDSON, COUNSEL 13 JAMES C. FOGARTY, DEPUTY ATTORNEY GENERAL FOX ROTHSCHILD, LLP 14 NICHOLAS CASIELLO, JR., ESQ. FOR: MGM MIRAGE 15 ITEM NO. 11 SETH H. BRILIAN, SENIOR COUNSEL 16 TIMOTHY C. FICCHI, DEPUTY ATTORNEY GENERAL LORETTA I. PICKUS, ESQ. 17 FOR: TRUMP TAJ MAHAL 18 ITEM NO. 16 CLAIRE FRANK, PROGRAM SUPERVISOR DOROTHY TURI, DEPUTY ATTORNEY GENERAL 19 MICHAEL A. MAGAZZU, ESQ. FOR: HARRAH'S ENTITIES 20 ITEM NO. 17 CLAIRE FRANK, PROGRAM SUPERVISOR 21 DOROTHY TURI, DEPUTY ATTORNEY GENERAL MICHAEL A. MAGAZZU, ESQ. 22 FOR: HARRAH'S ENTITIES 23 24 25 4 1 PUBLIC MEETING NO. 09-10-14 2 October 14, 2009, 10:35 a.m. ITEM PAGE VOTE 3 1 Ratification of the minutes of the 9 9 September 22, 2009, public meeting 4 2 Applications for employee and casino service industry licenses 5 20 initial and/or renewal of casino key 9 10 and casino employee licenses 6 6 initial and/or renewal of casino key 10 10 and casino employee licenses 7 3 Stipulations of settlement and consent agreements: 8 a) Kazi S. Islam (08-0592-EA) 11 13 b) Eshane G. Mansuri (07-0325-RC) 11 13 9 c) John L. Robinson (07-0303-RC) 11 13 d) Jessica Scott Long (08-0459-RC) 11 13 10 e) Diana Marie Weiner (08-0525-RC) 11 13 f) Joinal Abedin (09-0369-ER) 11 13 11 g) Tatyana Slobodenko (09-0362-ER) 11 13 h) Juan Torres (09-0375-ER) 11 13 12 i) Javier Echevarria (08-0928-RC) 11 13 j) Angel A. Echevarria (08-0484-RC) 11 13 13 k) Alphonse George (09-0160-NC) 11 13 l) Anita C. Smith (09-0474-ER) 11 13 14 m) Lynn Tran (06-0586-MI) 11 13 n) Cindy Arroyave (07-0022-RC) 11 13 15 o) Michael M. McLaughlin, Jr. (09-0482-RC) 11 13 4 Petition of Kerry S. Jackson for early 13 37 16 reapplication (09-0482-RA) Sworn 14 5 Motion to vacate suspension order in 37 39 17 State v. James B. DiMarco 6 Applications for suspension: 40 43 18 a) Richard J. Ruh (09-0581-RC) b) Trina D. Brown (09-0601-RC) 19 7 Petition of NCL Corporation, LTD, for adj. exemption from casino service industry 20 licensure (PRN 1620901) 8 Petitions of casino licensees to do 43 51 21 business with KGM Gaming, LLC, nunc pro tunc: a) Trump Taj Mahal Associates, LLC 22 (d/b/a Trump Taj Mahal Casino Resort) (PRN 1670904) 23 b) Trump Marina Associates, LLC (d/b/a Trump Marina Hotel Casino) (PRN 1670907) 24 c) Trump Plaza Associates, LLC (d/b/a Trump Plaza Casino Resort) (PRN 1670908) 25 5 1 CONTINUED AGENDA PUBLIC MEETING NO. 09-10-14 2 October 14, 2009, 10:35 a.m. ITEM PAGE VOTE 3 9 Petition of Harrah's Entertainment, Inc., 51 56 and Harrah's Operating Company, Inc., for 4 approval of a financing transaction and other relief (PRN 2640901) 5 10 Petitions of MGM MIRAGE for waiver of the 57 qualification requirement of officers 6 pursuant to NJSA 5:12-85d(1) and NJAC 19:43-5.4 (Senior Vice President and Deputy General 7 Counsel, William Scott) (PRN 2510903); and 59 (Senior Vice President and Deputy General 8 Counsel, Phyllis James) (PRN 2670906) 60 11 Petition of Trump Taj Mahal Associates 60 95 9 d/b/a Trump Taj Mahal Casino Resort, requesting approval of certain modifications 10 to its casino room and an amendment of its operations certificate (PRN 1910902) 11 12 Petition of Showboat Atlantic City 95 96 Operating Company, LLC, and IGT for 12 permission to transfer progressive slot jackpots pursuant to NJAC 19:45-1.39(n) 13 (PRN 2590902) 13 Petition of Trump Marina Associates, LLC 96 98 14 (d/b/a Trump Marina Hotel Casino) for permission to transfer progressive slot 15 jackpots pursuant to NJAC 19:45-1.39(n) (PRN 2670904) 16 14 Proposed temporary adoption of amendments 98 101 for blackjack dealt by hand with one or two 17 decks; notice of rulemaking experiment for blackjack dealt by hand with one or two decks 18 pursuant to NJSA 5:12-69e 15 Proposed adoption of amendments and new 101 102 19 rules for Supreme Pai Gow 16 Petition of Harrah's Entertainment, Inc., 102 105 20 Harrah's Operating Company, Inc., Harrah's Atlantic City Operating Company, LLC, 21 Showboat Atlantic City Operating Company, LLC, Bally's Park Place, Inc., and Boardwalk 22 Regency Corporation requesting permission for Peter Murphy to perform the duties and 23 exercise the powers of President, Strategy and Development, for Harrah's Entertainment, 24 Inc., and Harrah's Operating Company, Inc., prior to qualification (PRN 2760906) 25 6 1 CONTINUED AGENDA PUBLIC MEETING NO. 09-10-14 2 October 14, 2009, 10:35 a.m. ITEM PAGE VOTE 3 17 Harrah's Operating Company, Inc., 105 107 Harrah's Atlantic City Operating Company, LLC, 4 Showboat Atlantic City Operating Company, LLC, Bally's Park Place, Inc., and Boardwalk 5 Regency Corporation requesting permission for Duane Holloway to perform the duties and 6 exercise the powers of Vice President, Litigation and Labor and Employment for 7 Harrah's Entertainment, Inc., and Harrah's Operating Company, Inc., prior to qualification 8 (PRN 2740902) 18 Amended joint petition of Resorts adj. 9 International Hotel, Inc., Column Financial, Inc., Trimont Real Estate Advisors, Inc., 10 Wells Fargo Bank, NA, and RAC Atlantic City Holdings, LLC, for declaratory rulings 11 regarding the acquisition of real property on which a licensed casino hotel is operated 12 and for other relief (PRN 2040904) 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 20 license X 5 P-2 Grant 6 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 09-10-14 was commenced 2 at 10:35 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 Commission approved the September 8 22nd, 2009, closed-session minutes. 9 Item No. 1, ratification of the minutes 10 of September 22nd, 2009, public meeting. 11 COMMISSIONER SOMMELING: Move to 12 approve. 13 COMMISSIONER HARRINGTON: Second. 14 VICE CHAIR EPPS: Second. 15 CHAIR KASSEKERT: The motion has been 16 made and seconded. All in favor? 17 (Ayes.) 18 CHAIR KASSEKERT: Opposed? 19 (No response.) 20 CHAIR KASSEKERT: Motion carries. 21 MR. NANCE: Item No. 2, applications for 22 employee and casino service industry licenses. 23 This agenda item will be entered as Exhibit 24 List 1 and 2. 25 Exhibit List 1 consists of 20 10 ITEM NO. 2 1 applications for initial and/or renewal of 2 casino key and casino employee licenses. 3 The Division has objected to licensure. 4 VICE CHAIR EPPS: I move that we remand 5 these matters for hearing. 6 COMMISSIONER SOMMELING: Second. 7 COMMISSIONER HARRINGTON: 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 MR. NANCE: Exhibit List 2 consists of 15 six applications for initial and/or renewal of 16 casino key and casino employee licenses. 17 Staff and the Division have recommended 18 that these licenses be granted. 19 VICE CHAIR EPPS: I move that we grant 20 these applications. 21 COMMISSIONER SOMMELING: Second. 22 CHAIR KASSEKERT: The motion has been 23 made and seconded. All in favor? 24 (Ayes.) 25 CHAIR KASSEKERT: Opposed? 11 ITEM NO. 3 1 (No response.) 2 CHAIR KASSEKERT: Motion carries. 3 MR. NANCE: Item No. 3, stipulation of 4 settlement and consent agreements. 5 When I call your name, please come 6 forward, stand behind this middle table, 7 spreading across the room so that you may be 8 seen: Kazi Islam, Eshane Mansuri, John 9 Robinson, Jessica Scott Long, Diana Marie 10 Weiner, Joinal Abedin, Tatyana Slobodenko, Juan 11 Torres, Javier Echevarria and Angel Echevarria, 12 Alphonse George, Anita Smith, Lynn Tran, Cindy 13 Arroyave, and Michael McLaughlin, Jr. 14 CHAIR KASSEKERT: Thank you. 15 Has everyone whose name been called come 16 forward at this point? 17 MS. KAUFMANN: Yes. 18 CHAIR KASSEKERT: Okay. I'm going to 19 ask that you each state your name or who you 20 are representing for the record. 21 Your name, ma'am? 22 MS. TRAN: Lynn Tran. 23 MS. KAUFMAN: Lynne Kaufman for Jessica 24 Long. 25 CHAIR KASSEKERT: Thank you. 12 ITEM NO. 3 1 And your name, sir? 2 MR. TORRES: My name is Juan. 3 CHAIR KASSEKERT: Your name is Juan? 4 MR. TORRES: Yes. 5 CHAIR KASSEKERT: What is your last 6 name? 7 MR. TORRES: Torres. 8 CHAIR KASSEKERT: Torres. Okay, Mr. 9 Torres. 10 Yes? 11 MR. ABEDIN: Joinal Abedin. 12 CHAIR KASSEKERT: Okay. In a moment we 13 are going to vote on the stipulations which you 14 have agreed to with the Division. I'm going to 15 ask at this point if any of you wish to be 16 heard on this matter. You do not have to say 17 anything if you don't want. 18 Does anybody wish to be heard? 19 MR. ABEDIN: No. I don't have to say 20 anything. 21 CHAIR KASSEKERT: Okay. Very good. 22 Okay. Mr. Biscieglia? 23 MR. BISCIEGLIA: Good morning, Chair, 24 Commissioner. 25 The Division has nothing further and ask 13 ITEM NO. 4 1 that the stipulations be approved as submitted. 2 Thank you. 3 CHAIR KASSEKERT: Thank you. 4 Any questions? 5 COMMISSIONER SOMMELING: Madame Chair, 6 move to approve the stipulations. 7 VICE CHAIR EPPS: 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. Good luck. 15 MR. ABEDIN: Thank you very much. 16 Appreciate it. 17 MR. TORRES: Thank you. 18 MR. NANCE: Item No. 4, petition of 19 Kerry S. Jackson for early reapplication. 20 Miss Frigen? 21 MS. FRIGEN: Good morning, Madame Chair, 22 Commissioners. 23 Mr. Jackson is present. I'd ask him to 24 have a seat at the table, please. 25 MR. JACKSON: Thank you. 14 ITEM NO. 4 1 MS. FRIGEN: For your consideration is 2 his motion to vacate -- excuse me -- his 3 petition seeking permission to obtain 4 noncredential hotel employment early. 5 The Division has interposed an objection 6 to this request. 7 Mr. Jackson is here to present his 8 petition, and then we should hear from the 9 Division. 10 CHAIR KASSEKERT: Thank you. 11 Mr. Jackson, what do you want to say to 12 us today? 13 And Mr. Nance will swear you in. So 14 will you please stand and be sworn in. 15 MR. JACKSON: Yes. 16 17 KERRY S. JACKSON, was duly sworn to 18 testify in this matter. 19 20 MR. NANCE: Please state your name for 21 the record. 22 MR. JACKSON: Kerry S. Jackson. 23 MR. NANCE: Thank you. You may proceed. 24 CHAIR KASSEKERT: Mr. Jackson, what 25 would you like to tell us today? 15 ITEM NO. 4 1 MR. JACKSON: I'd like to begin by 2 saying good morning to all. 3 CHAIR KASSEKERT: Good morning. 4 MR. JACKSON: And I've read the 5 opposition's statement. And looking at the -- 6 at the complaints that were against me that 7 were -- I'm sure held warrant to your 8 opposition, I can why you might want to oppose 9 my reinstatement of my casino license. But if 10 I might briefly address some of the issues that 11 are -- that are on here and some of the charges 12 and maybe some of the circumstances, you might 13 see that they look a lot worse than what they 14 really were. 15 CHAIR KASSEKERT: Uh-hum. 16 MR. JACKSON: The unlawful taking, 17 third-degree theft charge, there was a 18 co-defendant that was my supervisor at K-Mart 19 that had approved a -- that had approved a -- 20 I'm nervous. 21 CHAIR KASSEKERT: That's okay. Take 22 your time. 23 MR. JACKSON: Had approved an advance on 24 my paycheck and then padded the slip and then 25 quit. And when I went to make the payment on 16 ITEM NO. 4 1 the -- on the advance, on my advance, I was 2 showed a paid-out slip for more than I had 3 requested. And that's when it all came about. 4 They couldn't find the manager. She had quit. 5 She was working under a false name, false 6 social security number. They couldn't find 7 her. And since the only thing that they had 8 was that slip with my name on it, I was asked 9 to pay back the balance of what that paid-out 10 slip was. Which I refused, and I suggested 11 that they try to seek and find her. After they 12 couldn't, I was asked to resign from K-Mart. 13 And I hired a public defender who I guess was 14 overo ccupied, you know, had too much work on 15 his table. And I guess he didn't -- I guess he 16 did the best he could, but it wasn't enough. 17 And I was found guilty. I had to pay the money 18 back. I received and completed the two years' 19 probation and that was -- that was that. I 20 tried to go on -- 21 CHAIR KASSEKERT: When did you complete 22 your probationary period? 23 MR. JACKSON: It was a two-year 24 probation beginning 2005. I actually completed 25 it six months ahead of schedule. Because I 17 ITEM NO. 4 1 made all of my meetings. I passed all my 2 urinary and drug tests. And all the things 3 that were required, I had -- I had complied 4 with. And I actually completed that two-year 5 probation period ahead of time. 6 CHAIR KASSEKERT: Uh-hum. Okay. 7 MR. JACKSON: In 2006, November of 2006, 8 my grandmother was diagnosed with pancreatic 9 cancer. At the time I was working for two 10 individual Holiday Inn properties. I'm a small 11 family. My grandmother had one child and my 12 mother had one child, which was me. So there 13 wasn't a whole lot of people to choose from. I 14 resigned from my Holiday Inn positions. I took 15 a three-week course at AtlantiCare, and I was 16 assigned to 24-hour in-home hospice caregiver 17 here in Atlantic City. 18 At the time, I had a townhouse in 19 Tuckerton, New Jersey, which is a little north 20 of here up the Parkway. When I resigned, and I 21 moved down to Atlantic City, I never put in a 22 change of address being naive to that. And I 23 shared the townhouse with someone else. I just 24 figured my mail would be forwarded. I had a 25 traffic summons for going 40 miles an hour in a 18 ITEM NO. 4 1 25, and they sent the traffic summons, of 2 course, to the Tuckerton address, which was on 3 my driver's license at the time. And since I 4 didn't put in a change of address from 5 Tuckerton to Atlantic City while I was taking 6 care of my grandmother, I subsequently missed 7 the court date, and a bench warrant was issued 8 for my arrest. And I guess my -- they never 9 sent a backup or a follow-up. I was unaware of 10 it. 11 I was -- me and my co-homeowner were 12 co-presidents of our townhouse association, 13 Tuckerton Meadows. So we were well-known in 14 our community. And we had done community 15 events and block parties. So we were known in 16 Tuckerton for being positive people. I came up 17 to Tuckerton to retrieve some clothes. The 18 weather was changing. I was changing my spring 19 wardrobe or summer wardrobe, or whatever the 20 situation was. And the township police 21 recognized my vehicle. They followed me to my 22 house and said, you know, we've been looking 23 for you for over a year. I said, well, I've 24 been in Atlantic City taking care of my 25 grandmother on a 24-hour hospice basis. And 19 ITEM NO. 4 1 they came to the house. And we co-owned two 2 pit bulls at our house. Well, pit bull mixes. 3 Upon entering the premises to, you know, ensure 4 that I come with them to enforce the bench 5 warrant, my dogs started barking. They made a 6 big ruckus. I asked the police officers to 7 step outside so that I could put the dogs in 8 the spare room to avoid any escalation of the 9 dogs in barking and, you know, any further 10 tension in the matter. I guess they took it 11 the wrong way, and they charged me with 12 resisting arrest and apprehension and evading, 13 most of which, if you read further, the -- it 14 was all downgraded to disorderly conduct. And 15 the hindering was dismissed completely. So 16 that was just a misunderstanding. 17 Stafford Township Police, 2008, I was in 18 Wal-Mart, and I was making a big purchase. And 19 you know they put the bags on the spindle 20 thing, and they just pack the bags and spin it. 21 They pack the bags and they spin it. Well, I 22 had a large group of bags, and I was loading 23 them in my shopping cart. And as I walked out 24 the door, the alarm went off. And the security 25 guard asked for my receipt, which I gave him, 20 ITEM NO. 4 1 and he went through the bags, and he found a 2 DVD that wasn't mine that I admitted to not 3 having and not having purchased. And I said, 4 well, you know, this is mine. This is mine. I 5 must have picked up the wrong bag. There were 6 a group of bags on the pedestal. And I 7 inadvertently or mistakenly or maybe the person 8 that was in line before me might have left the 9 bag, and they didn't take it with them. But I 10 picked up that bag with the group of my own 11 purchases. It was a $19 DVD MC somebody or 12 other. I said, well, it's not mine. I'm 13 sorry. I picked up the wrong bag. But 14 Wal-Mart said policy was policy, and so I got 15 charged with shoplifting. 16 My grandmother passed away in March of 17 this year from her pancreatic cancer, and I 18 read an ad in the Atlantic City Press for the 19 job fair that Harrah's was having. And I went 20 and applied, And I was accepted for a front 21 desk position in Harrah's Atlantic City. Upon 22 doing the processing paperwork, I learned that 23 the K-Mart thing from 2005 that my license had 24 been suspended. I hadn't worked for the casino 25 since 1996, so I haven't really been like 21 ITEM NO. 4 1 applying to the casinos, so I didn't know that 2 my license had even been suspended until the 3 Harrah's offer came up this year. 4 But upon learning that my license was 5 suspended, and I had to apply for the 6 reinstatement brings me here today. 7 CHAIR KASSEKERT: Could -- before you go 8 on -- 9 MR. JACKSON: Yes, ma'am. 10 CHAIR KASSEKERT: Could you just talk to 11 us a little about the conviction you had for 12 the CDS, for the controlled substance? 13 MR. JACKSON: The CDS charge -- as I 14 said, I was taking care of my grandmother in 15 Atlantic City. A friend of mine came down. My 16 mom came down with him to give me a little 17 relief, a night out. Because it was 24-hour 18 hospice. I had been with her, like, three 19 weeks straight nonstop. Me and my mother had 20 an alternate plan. Because she was working 21 full time, she would come down to weekends, and 22 I would have, you know, the weekends just to 23 get myself together. And after about a 24 three-week period when she wasn't able to come 25 down, she brought a friend of mine with her, a 22 ITEM NO. 4 1 close friend of mine that I've grown up with. 2 And we went out to a bar. And, yes, we did 3 purchase a $20 bag of cocaine, and we were 4 caught in the parking lot, and it was in my 5 possession. Yes. It was a bad mistake. And 6 something -- I never had a drug history before. 7 I haven't had one since. And, it was a bad 8 mistake. And I'm sorry we got caught up in the 9 moment of the evening. I don't think we had 10 seen each other in seven or eight years. And I 11 guess we just got caught up in enjoying the 12 moment, and a little freedom for me and a 13 little relief of what I was going through with 14 my grandmother and having to leave my job at 15 K-Mart -- I mean, K-Mart -- with Holiday Inn. 16 And it was a mistake. It was a bad mistake. 17 And it wasn't a felony. It wasn't -- but it 18 was something that shouldn't have been done. 19 It could have been avoided. 20 CHAIR KASSEKERT: Okay. 21 MR. JACKSON: I got hired for the 22 Harrah's position over the summer. When I was 23 doing the processing, my license came up as 24 revoked. I needed to do the reinstatement and 25 then, of course, this came up. As of this past 23 ITEM NO. 4 1 Friday, Bridget Moore, who is the Director of 2 the Front Desk Operations for Harrah's who 3 interviewed me and hired me back in May called 4 me and asked me what was going on with my 5 license. And I told her the hearing wasn't 6 until today. And she said, well, just to let 7 you know, your position is still available. If 8 your license is reinstated, we could have you 9 in orientation on Friday, and you could start 10 work this approaching Monday. 11 It's been a long, long road for me. And 12 I hope you can see it. Just -- the series of 13 circumstances involving the individual charges 14 that are listed against me throughout my 15 explanation aren't as bad as they sound. A lot 16 of it was just miscommunications and 17 misunderstanding on my part. The simple change 18 of address, when I moved from Tuckerton to 19 Atlantic City, I would have made the court date 20 for the speeding ticket, 40 in a 25. The bench 21 warrant would have never been issued. There 22 would have never been that whole disorderly 23 conduct, resisting arrest. Just simple things 24 like that that I could have taken -- you know, 25 but I was naive and didn't know you had to do 24 ITEM NO. 4 1 all those things. But it's a been a long road. 2 And I've always been an active 3 participant in my community. I was one of the 4 founding starters of the Oasis Foundation right 5 here in Atlantic City that helps single 6 individuals and their families who are 7 suffering from HIV. I frequently work at 8 Sister Jean's Kitchen at least two days out of 9 the week. So I've always been actively 10 involved in my community. I was on my 11 townhouse association in Tuckerton for a number 12 of years. Like I said, me and my co-owner were 13 co-vice presidents of the townhouse 14 association, which is why my apprehension when 15 I went back to Tuckerton to grab a bag of 16 clothes, happened so quickly. But I've always 17 been a very positive and outgoing individual, 18 and I really, really need to get back to work 19 and continue building my life and -- 20 CHAIR KASSEKERT: Have you been able to 21 make any more of the payments for these 22 violations? You obviously have fines. 23 MR. JACKSON: Unfortunately not. After 24 my unemployment ran out, I've been on city 25 welfare services, receiving $140 a month. And 25 ITEM NO. 4 1 it's kind of hard just to even keep a roof over 2 my head, you know. But I've been in contact 3 with the various municipal agencies that I've 4 made payment arrangements on them. I have been 5 paying on the -- on the Stafford and the K-Mart 6 thing. I'm still paying $15 a month on that. 7 But if I can get back to work, I can get all of 8 this straightened out. And the reason I 9 haven't been able to make as many timely 10 payments as possible is because of her extended 11 illness and then, of course, looking for work 12 and then finding work and then having to wait 13 the additional three months to bring us here 14 today for my reinstatement so that I can go 15 back to work. If you will please approve my 16 license, so I can go back to work, I can. 17 CHAIR KASSEKERT: Okay. Let me ask if 18 any of the other Commissioners have any -- 19 Commissioner Epps, do you have a 20 question? 21 VICE CHAIR EPPS: I have a question. 22 In July of 2009 you completed an 23 application for early -- for reapplication to 24 the Commission. 25 MR. JACKSON: Yes, sir. 26 ITEM NO. 4 1 VICE CHAIR EPPS: And Question No. 3 2 says: Have you been arrested, charged, or 3 convicted of any charge or offense other than 4 traffic since the date of your qualification, 5 employee registration was revoked and 6 application for license or registration was 7 denied. You checked "no." 8 MR. JACKSON: It was -- 9 VICE CHAIR EPPS: And you just 10 chronicled to me -- 11 MR. JACKSON: Three of them. 12 VICE CHAIR EPPS: -- three other arrests 13 that have occurred. 14 MR. JACKSON: Happened. 15 VICE CHAIR EPPS: Between that and '09 16 when you completed -- 17 MR. JACKSON: I had misread the 18 question. And then I had spoken to one of your 19 other people here, and I told them that I 20 really needed to correct that, but I wasn't 21 given the opportunity to. And I apologize. I 22 was assuming that it was anything, you know, 23 any other felony convictions. And so I had 24 misinterpreted it. It was my understanding 25 that the question was felony convictions 27 ITEM NO. 4 1 or something. Because the other charges that 2 I've read for you were simple misdemeanors. 3 They weren't, you know -- they really -- I 4 mean, they're transgressions, but I didn't 5 think they held that much weight where it would 6 take into consideration my -- getting my 7 license back. They weren't felony convictions. 8 They are they were all little misdemeanor, 9 trivial stuff. And so I did, and I apologize 10 for that. 11 CHAIR KASSEKERT: Any other questions 12 before we hear from Mr. Biscieglia? 13 COMMISSIONER SOMMELING: Mr. Jackson, 14 when you read the questionnaire for your 15 relicensing, and it asked you the nature of the 16 arrest, it didn't say felony or disorderly 17 person. It just said nature of the arrest. 18 Did you understand what you were reading? 19 MR. JACKSON: Yes and no. But I was 20 still operating under the thought that since my 21 license had been revoked for the felony that 22 you were interested if there had been any 23 further felonies. So I kind of did and kind of 24 didn't. I guess on GP, I should have just 25 listed them anyway. Because it wasn't like I 28 ITEM NO. 4 1 didn't know that a further background check was 2 going to come to pass and that they would come 3 up. I just really didn't think they held, you 4 know, that much relevance in the situation of 5 my reinstatement. But looking at it now, I -- 6 I should have just listed them all, you know. 7 I -- and I'm sorry I didn't. 8 COMMISSIONER SOMMELING: Is your 9 testimony a little while ago while you were 10 telling us about your history that you haven't 11 been able to make any further payments in your 12 fines? 13 MR. JACKSON: Yes, sir. Being on social 14 services for the past two and a half years, my 15 funds have just been -- not even a skin of my 16 teeth. I mean, $140 a month, I can barely keep 17 a roof over my head. My mother's trying to, 18 you know, put me up. I've been staying with 19 various friends and family. My co-owner of the 20 townhouse has allowed me to move back up there 21 with him, and I've been staying up there for 22 about eight months. And we've been friends for 23 over 19 years. And just because he knew my 24 situation, and what I've been going through, 25 he's been just looking out, keeping a roof over 29 ITEM NO. 4 1 my head. So the little $140 I've been getting 2 from social services has just been basically 3 transportation money, laundry money. You know, 4 trying to keep a few dollars on my cell phone 5 so I can make communications for other jobs or 6 just staying in touch with my mother who lives 7 in New York. And it's been -- really been just 8 getting by. You know. 9 COMMISSIONER SOMMELING: Have you made 10 any contact over this period of time with the 11 agencies that require those payments? 12 MR. JACKSON: Yes, sir. Yes, sir. I 13 have -- I've been to court on several occasions 14 and spoke with the various judges on why timely 15 payments haven't been made. And they have been 16 gracious enough to grant me several extensions, 17 which I believe are on the way of running out. 18 There's only so much extension they can do. 19 And they've already granted me extensions for 20 well over a year and a half or two years now on 21 some of these charges. So if I don't find a 22 way to start paying some of them up now, I'll 23 probably find myself behind bars. 24 COMMISSIONER SOMMELING: No more 25 questions. 30 ITEM NO. 4 1 CHAIR KASSEKERT: Mr. Biscieglia? 2 MR. BISCIEGLIA: Thank you, Chair. 3 On November 19th of -- or excuse me, 4 January 19th, 2006, the Respondent was 5 convicted of theft by unlawful taking, third 6 degree. This led to the revocation of his 7 casino service employee registration on 8 September 13th of 2006 after failing to request 9 a hearing. 10 Now, in the Division's opposition, the 11 Division cites the three-year period of 12 disqual-- it's only been three years since the 13 period of disqualification began, short of a 14 five-year period. 15 Now, the Division does understand that 16 often three years is a time period where a 17 noncredential can start to be considered. 18 Although the problem with this case is not so 19 much the time period as the intervening conduct 20 within that time period. We have three 21 criminal charges, I would refer to, as the 22 August 12th, 2007, we have a conviction for 23 possession of CDS. Shortly after that, October 24 22nd of 2007, an arrest for resisting arrest 25 which results in a July 8th of 2008 conviction 31 ITEM NO. 4 1 for disorderly conduct. And then, especially 2 troubling, is the October 24, 2008, guilty plea 3 of shoplifting and disorderly conduct. And I 4 say especially troubling becuase the original 5 disqualifying offense was a theft-related 6 offense. And then now, less than one year ago, 7 coming up on one year from today, in the past 8 we have another theft offense. 9 Now we also have this January 12, 2009, 10 offense to failure to license dogs. And I 11 don't think that's in the same group of 12 seriousness as the other group of offenses. 13 But the fact remains that in showing the 14 Respondent's -- what he's trying to do here is 15 show good cause to have the Commission allow to 16 him to work in noncredential position, and I 17 think the real problem here is that these three 18 arrests in the intervening time period made 19 it-- made it impossible for the Division to 20 agree that a showing of good cause had happened 21 to allow him to work in a noncredential 22 position. 23 And, also, as Commissioner Epps raised 24 during his questioning, we had an issue with 25 the nondisclosure of these arrests in the 32 ITEM NO. 4 1 instant petition. 2 Now, we've heard the Respondent's 3 explanation. I'll let that stand for what it 4 is. 5 I will simply say that in reading the 6 question, it clearly states "crimes or 7 offenses," says nothing about felony 8 convictions. So that would led me to believe 9 one of two things. Either the instructions 10 were not read, they were ignored, and the 11 Respondent kind of answered it thinking what he 12 thought the question asked, or the Respondent 13 ignored the question and answered it in a way 14 that he thought would best suit his needs 15 before the Commission. 16 So based upon all this information, 17 it's -- the Division cannot find that good 18 cause has been shown pursuant to 106c that the 19 Respondent should be allowed to work in a 20 noncredential position because we simply have 21 had too many incidents. So the Division will 22 respectfully asks that the petition be denied. 23 Thank you. 24 CHAIR KASSEKERT: Let me ask if there 25 are any questions? 33 ITEM NO. 4 1 MR. BISCIEGLIA: If you have any 2 questions. 3 VICE CHAIR EPPS: I don't have any 4 questions. 5 COMMISSIONER SOMMELING: I have no 6 questions, Madame Chair. 7 VICE CHAIR EPPS: Mr. Jackson? 8 MR. JACKSON: Yes. 9 VICE CHAIR EPPS: We give this speech 10 kind of all the time, but to work in a casino 11 industry, the casino industry is a regulated 12 environment, and to work in the casino 13 industry, it's a privilege and not a right. 14 It's not an automatic right. And what happens 15 is that right -- I mean, that privilege is 16 earned by the way you conduct yourself. 17 You ran afoul of the situation, whether 18 it was your fault or not, and you kind of got 19 caught in a jam, and you lost your license. 20 Then -- in the intervening period, while your 21 license was -- while you did not have a 22 license, on several other occasions you ran 23 afoul of the law in various situations. 24 Now, I know in your mind they're major 25 or they're not -- they're not significant, and 34 ITEM NO. 4 1 they didn't play a big role. It wasn't, you 2 know, a murder or something. But the point is, 3 you still abused the privilege. You haven't 4 shown the State and the Division, and thus the 5 Commission, that your conduct is such that 6 you've gotten yourself back to a position where 7 you've earned that privilege again. And that's 8 why the position that the Division is taking 9 against you is you've not established that 10 you've earned the privilege. It's a privilege 11 that you have to earn by your conduct and show 12 that you're ready to get back. And in the 13 period that you were supposed to show that you 14 were ready to get back, you did things that 15 suggested that you were not. 16 And I know that it seems to you that 17 those things are minor, but when you put them 18 all together, they paint an image of a person 19 that leads the Commission to think maybe it's 20 not time for that person to come back into the 21 privilege of working in the industry. 22 Based on -- 23 You wanted to say something? 24 MR. JACKSON: You give me the 25 opportunity to get my license back and go back 35 ITEM NO. 4 1 to work, you will see the one thing that I 2 should have done in hindsight was really just 3 put in that change of address, and then I would 4 have never had that resisting arrest charge or 5 any of that would have -- none of that would 6 have come to pass. And the shoplifting from 7 the -- 8 VICE CHAIR EPPS: Well, here's the 9 thing. Al. Of that -- 10 MR. JACKSON: The shoplifting that he's 11 talking from Wal-Mart. There was a group of 12 bags there. It wasn't something that I 13 knowingly and purposely had done. I mean -- 14 VICE CHAIR EPPS: All of that is fine. 15 But here's the thing. The CDS charge alone 16 would have put you back in this spot, and you 17 told us you did that. You know what I'm 18 saying? 19 MR. JACKSON: That I did. 20 VICE CHAIR EPPS: It's the CDS charge. 21 The guilty -- it's a guilty plea on a 22 shoplifting charge. 23 MR. JACKSON: Yes. 24 VICE CHAIR EPPS: I mean, we've got all 25 these things. You tell us the extenuating 36 ITEM NO. 4 1 circumstances now. But it's a little late to 2 try to explain away, I lost my license, and the 3 period where I was supposed to show you I do 4 better, I didn't quite do better. But now, if 5 you let me do better, I promise to do better. 6 That promise is tough for us to go on. I mean, 7 what seems to happen is from this point on 8 you've got to do better and then come back here 9 and show us an example that I've been 10 exemplary. There's nothing that you're going 11 to find from the day I was at the Commission 12 until the next time you come here that gives 13 you any question about Mr. Jackson. Okay? 14 And at that point I think you'll be in 15 position to say, all right. Now I'm ready to 16 get back in. But looking at what's happening 17 between the time you were suspended and today, 18 there are still some things that make us 19 question you, particularly given what caused 20 you to be put out in the first place. That 21 conduct seems to be somewhat consistent. And 22 that's where your problem lies, being quite 23 frank with you. 24 So, therefore, I'm going to move that we 25 deny Mr. Jackson's position to apply early as a 37 ITEM NO. 5 1 noncredential hotel employee. 2 COMMISSIONER 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 Please -- please try to continue, you 10 know, and change your life and try to continue 11 so you can come back and get a favorable 12 response for us. 13 I hope you take Commissioner Epps' words 14 seriously. Because, you know -- because you do 15 tell a heart-wrenching story but, 16 unfortunately, the facts are the facts. And we 17 have to apply the laws as we see them. Okay? 18 All right. 19 MR. JACKSON: Thank you. 20 MR. NANCE: Item No. 5, motion to vacate 21 suspension order in State versus James B. 22 DiMarco. 23 Miss Frigen? 24 MS. FRIGEN: Chair and Commissioners, 25 Reginald Floyd is here on behalf of the Carroll 38 ITEM NO. 5 1 firm for Mr. DiMarco. We have Brian Biscieglia 2 for the Division. 3 For your consideration is Mr. DiMarco's 4 motion to vacate the suspension. 5 And, again, Mr. Floyd is here on behalf 6 of Mr. DiMarco. 7 CHAIR KASSEKERT: Thank you. 8 Good morning, Mr. Floyd. 9 MR. FLOYD: Good morning, Madame Chair 10 and Commissioners. As was stated, Reginald 11 Floyd, attorney at law, on behalf of Mr. 12 DiMarco. 13 As was stated, the Division is not in 14 opposition to this motion and, therefore, we 15 ask that this Commission grant the petition. 16 CHAIR KASSEKERT: Thank you. 17 Any questions for Mr. Floyd before we 18 hear from Mr. Biscieglia? 19 COMMISSIONER SOMMELING: No questions, 20 Madame Chair. 21 CHAIR KASSEKERT: Mr. Biscieglia? 22 MR. BISCIEGLIA: Thank you, Chair. 23 Based upon the facts set forth -- excuse 24 me. Let me start over. 25 The Commission has the Division's 39 ITEM NO. 5 1 letter where we interpose no objection. Based 2 upon the chain of events that have occurred 3 since the original complaint was filed, the 4 matter is still pending at this time, the 5 Division's -- excuse me -- it's the Division's 6 position that vacating the suspension order 7 would be appropriate. 8 CHAIR KASSEKERT: Thank you. 9 Any questions for Mr. Biscieglia? 10 COMMISSIONER SOMMELING: No questions, 11 Madame Chair. 12 VICE CHAIR EPPS: Madame Chair, I move 13 that we grant Mr. DiMarco's motion to vacate 14 the Commission's suspension order dated July 15 16, 2008, thereby reinstating his casino 16 employee license pending the outcome of the 17 revocation proceedings. 18 CHAIR KASSEKERT: Is there a second? 19 COMMISSIONER HARRINGTON: 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. 40 ITEM NO. 6 1 Thank you for coming. Good luck. 2 MR. FLOYD: Thank you. 3 MR. DiMARCO: Thank you. 4 MR. NANCE: Item No. 6, application for 5 suspension in Richard Ruh and Trina Brown. 6 Miss DeLia? 7 MS. DeLIA: Good morning. 8 With respect to Richard Ruh, a letter of 9 representation was received from Joseph A. 10 Levin with no objection to the suspension of 11 Mr. Ruh's credentials. 12 With regard to Miss Brown, I'd like to 13 ask if she's present or represented? 14 (No response.) 15 MS. DeLIA: Apparently not. 16 Mr. Biscieglia is here on behalf of the 17 Division. 18 CHAIR KASSEKERT: Mr. Biscieglia? 19 MR. BISCIEGLIA: Thank you. 20 Just update you on some recent 21 happenings with these cases. 22 In regards to Richard Ruh, on September 23 30th, the charge of promoting prostitution was 24 dismissed. The charge of obstruction of 25 justice was remanded to Atlantic City Municipal 41 ITEM NO. 6 1 Court. In looking at the original fact pattern 2 of this matter, it's not a surprise to the 3 Division that the promoting prostitution charge 4 has been dismissed. That really seemed to be 5 an underlying charge kind of based upon the 6 facts involved in the case. However, the 7 obstruction charge, it is the Division's 8 position that the record clearly supports the 9 conduct engaged in by the Respondent 10 constitutes obstruction of justice. Currently 11 this is not scheduled for any date in Atlantic 12 City Municipal Court. 13 With regards to Trina Brown, Miss Brown 14 was indicted in Atlantic County on July 26th of 15 2009 for one count of theft by unlawful taking, 16 third degree, and there are no further dates 17 scheduled at this time. 18 Thank you. 19 CHAIR KASSEKERT: Thank you. 20 Let me ask if there are any questions 21 for Mr. Biscieglia? 22 Commissioner Harrington? 23 COMMISSIONER HARRINGTON: Yes. With 24 regard to the on obstruction of justice, that 25 is what would have been characterized as the 42 ITEM NO. 6 1 Defendant speaking to one of the patrons? 2 MR. BISCIEGLIA: Well, not speaking to 3 but informing -- actually, no. Not informing a 4 patron. I don't think a -- the Division 5 wouldn't classify a prostitute at the bar 6 trying to engage in the business of 7 prostitution as a casino patron. So I would 8 say take issue with that. But, yes. Not just 9 speaking to her, but informing her and telling 10 her to inform the other prostitutes that were 11 working at the bar that the state police were 12 conducting a sting at that moment. And I 13 believe that informing her that one of her 14 associates was currently engaging in a business 15 transaction with an undercover detective. 16 COMMISSIONER HARRINGTON: Okay. Well, 17 what I read was that he told her that someone 18 had just gotten arrested but -- 19 MR. BISCIEGLIA: Yes. Yes. 20 COMMISSIONER HARRINGTON: All right. 21 Thank you. 22 MR. BISCIEGLIA: Thank you. 23 CHAIR KASSEKERT: Any other questions? 24 COMMISSIONER SOMMELING: Madame Chair, 25 move to grant the Division's applications for 43 ITEM NO. 8 1 suspension. 2 CHAIR KASSEKERT: Is there a second? 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 Thank you. 11 MR. NANCE: Item No. 7 has been 12 adjourned. 13 Item No. 8, petition of casino licensees 14 to do business with KGM Gaming, LLC, nunc pro 15 tunc, Trump Taj Mahal Associates, LLC, Trump 16 Marina Associates, LLC and Trump Plaza 17 Associates, LLC. 18 Miss Nagengast? 19 MS. NAGENGAST: Good morning, Chair, and 20 Commissioners. 21 For your consideration are three 22 separate petitions, but they are the same 23 gaming-related CSI KGM Gaming, LLC, and one 24 petition from each of the Trump properties. 25 In each petition, as you had before you, 44 ITEM NO. 8 1 there was a separate transaction entered into 2 which was not -- did not have prior approval 3 from the Commission, as KGM is not a licensed 4 gaming CSI and, therefore, the Petitioners are 5 coming before you for a transactional waiver 6 nunc pro tunc. 7 Counsel is here, and they can enter 8 their appearances. 9 CHAIR KASSEKERT: Thank you. 10 MS. KAUFMAN: Okay. Lynne Kaufman, 11 Cooper Levenson for KGM. 12 MR. CUNNINGHAM: Fred Cunningham for the 13 casino licensees. 14 MR. ROGACKI: And Louis Rogacki on 15 behalf of the Division. 16 CHAIR KASSEKERT: Thank you, Mr. 17 Rogacki. 18 You may proceed. 19 MS. KAUFMAN: Okay. Yes. As Miss 20 Nagengast said -- good morning. 21 KGM is an applicant for a gaming-related 22 CSI license. It has conducted numerous 23 transactions with casinos pursuant to 24 transactional waivers. 25 In June of 2009, while negotiating a new 45 ITEM NO. 8 1 transaction with Trump Plaza, both KGM and 2 Trump Plaza discovered that while a 3 transactional waiver petition had been filed 4 for a previous transaction with Trump Plaza 5 that the actual transaction that occurred did 6 not correspond with the requested relief. 7 At this point KGM did an internal 8 investigation of all outstanding contracts with 9 casino licensees in Atlantic City and all 10 existing transactional waivers to make sure 11 that the same thing had not occurred with 12 respect to any other transaction. They wanted 13 to make sure that there were transactional 14 waivers in place for each transaction and that 15 the transaction matched up to the actual 16 transaction that occurred. 17 It's my understanding that Trump at the 18 same time did an investigation to make sure 19 that all its transactional waivers matched up. 20 It was during this investigation with 21 respect to KGM that KGM realized that all its 22 transactional waivers were fine except with 23 respect to the three transactions that are the 24 subject of the relief we're requesting today. 25 I just want to state that with all three 46 ITEM NO. 8 1 of these transactions, there was a 2 transactional waiver between KGM and the 3 property. It's just that there was an 4 inadvertent discrepancy between the transaction 5 that occurred and the transactional waiver. 6 Again, as I said, Trump -- the Trump 7 properties did the same type of investigation. 8 Trump and KGM immediately self-reported 9 the error to the Commission and the Division. 10 They took the games that were in question off 11 of the casino floor. They filed transactional 12 waiver petitions for relief going forward as 13 well as the nunc pro tunc petitions that are 14 the subject of the relief being requested 15 today. KGM established internal procedures to 16 make sure that this could not happen again, to 17 have checks at every step in the process from 18 the beginning through the middle through the 19 end to match up the relief that was granted 20 with the contract against any contract that had 21 been signed. It's Trump -- the Trump 22 properties as well instituted its own 23 procedures. 24 KGM and Trump did get the relief 25 requested going forward, and we're here today 47 ITEM NO. 8 1 to ask for the nunc pro tunc relief. 2 CHAIR KASSEKERT: Thank you. 3 Any questions at this point? 4 VICE CHAIR EPPS: What's the -- 5 COMMISSIONER SOMMELING: Go ahead. 6 VICE CHAIR EPPS: What is the status 7 of -- if there is a status, of KGM's actual 8 nongaming CSI license? Is that in process? 9 MS. KAUFMAN: It's my understanding that 10 the investigation is, at least, mostly 11 completed and it's in process. 12 VICE CHAIR EPPS: All right. So at some 13 point KGM will -- if it goes -- 14 MS. KAUFMAN: It will not need 15 transactional waivers anymore. 16 CHAIR KASSEKERT: Commissioner 17 Sommeling? 18 COMMISSIONER SOMMELING: That was -- 19 CHAIR KASSEKERT: That was your 20 question? Okay. 21 Mr. Rogacki? 22 MS. KAUFMAN: And -- 23 CHAIR KASSEKERT: Go ahead. 24 MS. KAUFMAN: Excuse me. I will say 25 that the application was deemed complete in 48 ITEM NO. 8 1 February of 2008. So they have been operating 2 this way for some time. 3 MR. CUNNINGHAM: If I could just 4 reiterate what my colleague has said in that we 5 had self-reported the incident, and we have 6 instituted procedures to be assured that that 7 won't happen again. 8 Also, just by way of explanation of the 9 impact of the mistake, although it was 10 regrettable that the transaction waiver 11 petitions that were filed were not completely 12 accurate, they did, in fact, give the State the 13 opportunity to do the substantive review of the 14 transactions, the transactions in question. 15 For example, with respect to the Plaza. The 16 document that was attached to the petition as 17 the proposed deal recited a transaction of ten 18 of these slot machines. In fact, that had been 19 an early discussion, and we, in fact, purchased 20 32, or acquired 32 of those slot machines. 21 The State did have the opportunity to 22 review the essential elements of that 23 transaction, which is to say, should this 24 casino licensee be authorized to do this 25 transaction with this unlicensed vendor for 49 ITEM NO. 8 1 these machines? All of that was looked at and 2 deemed to be appropriate. So what happened 3 here, although it's regrettable that the right 4 number wasn't attached to that petition, it 5 didn't undermine the process or the ability of 6 the State to make an informed decision as to 7 whether the transaction was appropriate. 8 And that's for your consideration of 9 that aspect of this in your determination. 10 Thank you. 11 CHAIR KASSEKERT: Thank you. 12 Mr. Rogacki? 13 MR. ROGACKI: Good morning, Chair, 14 Commissioners. 15 I was going to just get up and cite that 16 the Division had filed a letter dated August 11 17 saying that we didn't object to the nunc pro 18 tunc and that our investigation of the 19 circumstances around the nunc pro tunc is 20 nearly complete and that any further comment 21 would be inappropriate at this time until the 22 investigation is complete. 23 I think at this point, based on Mr. 24 Cunningham's last comment, the only thing I 25 should add to that is based on what we know 50 ITEM NO. 8 1 about the transactions that occurred and the 2 nature of what we were told the transactions 3 would be and what the transactions were that 4 actually occurred, I would disagree that the 5 State had ample opportunity to look at the 6 nature of the transactions between the two 7 companies and what was actually going to occur. 8 And I think I'll restrain myself from 9 saying anything further about the deals at this 10 time other than to say that while the Division 11 has no opposition to the nunc pro tunc at this 12 point, we ask that it be without prejudice to 13 any further action that the Division may take 14 with regard to administrative charges against 15 either KGM or the three Trump properties with 16 regard to the circumstances regarding these 17 transactions. 18 And I'll be happy to answer any 19 questions. 20 CHAIR KASSEKERT: Thank you. 21 Any questions? 22 COMMISSIONER SOMMELING: Madame Chair, 23 move to grant nunc pro tunc the three joint 24 petitions of KGM Gaming, LLC, and the three 25 casino licensees and approve their 51 ITEM NO. 9 1 transactional waivers for the transactions set 2 forth in their respective petitions without 3 prejudice to any future action which the DGE 4 may take, as well as any alleged regulatory 5 violations and licensing considerations, as 6 well as future transaction waiver requests. 7 VICE CHAIR EPPS: 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. 15 MR. CUNNINGHAM: Thank you. 16 MS. KAUFMAN: Thank you. 17 MR. ROGACKI: Thank you. 18 MR. NANCE: Item No. 9, petition of 19 Harrah's Entertainment, Inc., and Harrah's 20 Operating Company, Inc., for approval of a 21 financing transaction and other relief. 22 Miss Wozniak? 23 MS. WOZNIAK: Good morning. 24 I have distributed a draft resolution 25 which, if approved, would also approve a 52 ITEM NO. 9 1 sealing request from the Petitioners as to 2 portions of the Division's report. 3 Mr. O'Gara is here for the Petitioners 4 and Miss Turi for the Division. 5 CHAIR KASSEKERT: Thank you. 6 Mr. O'Gara, good morning. 7 MR. O'GARA: Good morning. 8 This is a petition from HOC and its 9 operating subsidiaries here in Atlantic City 10 for approval to borrow a billion dollars under 11 the existing term facility. The existing term 12 facility had the ability to borrow in excess of 13 what was borrowed at the time, another billion 14 and three quarters. This to borrow a billion 15 dollars of that. It's first-lien debt. 16 As I think we referenced, there's a very 17 strong market for that debt to be able to 18 borrow at LIBOR, which is four to two percent 19 plus seven and a half, which is nine and a half 20 percent. And that money will be used to deal 21 with the continue -- what's left of the 2010s 22 and 2011s of those early maturities that we've 23 dealt with in some of those other matters that 24 you approved. There will be a tender offer for 25 $160 million of those on terms which are fairly 53 ITEM NO. 9 1 favorable to the holders. There will also then 2 be cash available which will be used to buy up 3 in the market any of those which don't sweep 4 in. So you have everything out, as I think the 5 over-arching goal has been along in terms of 6 this Harrah's ending in 2015, 2016, 2017, 2018. 7 The balance of it -- and there will be 8 money -- is going to be retained as cash inside 9 of HOC, and it can be used to provide a 10 flexibility to deal with these other things 11 that as we approve them that are out there, and 12 as you try to buy them when the market 13 conditions provide and provide flexibility 14 dealing with the other debt that's out there as 15 well. 16 CHAIR KASSEKERT: Thank you. 17 Any questions for Mr. O'Gara? 18 VICE CHAIR EPPS: Quick question. I 19 think you just answered this, but assuming 20 these all works out and goes through smoothly, 21 the taking out the '10s and '11s, the earliest 22 maturity is when? 23 MR. O'GARA: Right. I have a chart. 24 (Laughter.) 25 MR. O'GARA: It's not like there's not a 54 ITEM NO. 9 1 lot of debt; right? Let me -- 2 VICE CHAIR EPPS: I like to push the 3 maturities back. 4 MR. O'GARA: You've got 2013 in a 5 significant amount, but that is a CMBS debt. 6 And, in fact, you know, we're trying to deal 7 with that. That, unlike the HOC debt that's 8 over APP level, but when you do this, you're 9 looking at about a billion and a half after the 10 maturities -- after this transaction will be, 11 you'll be in 2014 with about a 903 million, you 12 know, the CMBS. And perhaps another billion. 13 But you've essentially pushed -- and while it 14 seems like a lot, we're talking about an 15 aggregate number here, that's 20. 16 VICE CHAIR EPPS: Right. 17 MR. O'GARA: You're looking at the 18 balance of it is '16, '17, '18. You know, 19 you're pushed out that far. 20 VICE CHAIR EPPS: All right. 21 CHAIR KASSEKERT: Any other questions? 22 Miss Turi? 23 COMMISSIONER SOMMELING: No more 24 questions. 25 MS. TURI: Yes. We at the Division have 55 ITEM NO. 9 1 had the opportunity to review all of the 2 different representations that have been 3 presented to us. We note that this particular 4 transaction would push the $1 billion debt out 5 to 2016. It would also give HOC the cash to 6 not only buy down through the tender offer, but 7 also if they need to, buy on the open market or 8 buy the 2010s and 2011s as they come due and, 9 thereby, pushing this $1 billion out to 2016. 10 So they believe that based on all of 11 that, it gives them the flexibility to move 12 forward over the next year or two, particularly 13 with the 2010s and 2011s as they come due. And 14 on that basis, we don't object to the relief 15 that's being sought nor do we object to the 16 sealing request that has been made. Subject, 17 of course, to the conditions that are set forth 18 in the draft resolution, which we have reviewed 19 and have no problems with. 20 CHAIR KASSEKERT: Thank you. 21 Any questions for Miss Turi? 22 COMMISSIONER SOMMELING: No questions, 23 Madame Chair. 24 VICE CHAIR EPPS: Madame Chair, I move 25 that we adopt the draft resolution and approve 56 ITEM NO. 9 1 the incremental term loan pursuant to NJAC 2 19:43-4.3, based upon and to the extent set 3 forth in the findings and rulings and subject 4 to the conditions contained in the resolution. 5 CHAIR KASSEKERT: Is there a second? 6 COMMISSIONER HARRINGTON: Second. 7 CHAIR KASSEKERT: Motion has been made 8 and seconded. This is a roll call vote. 9 MR. NANCE: Commissioner Harrington? 10 COMMISSIONER HARRINGTON: Yes. 11 MR. NANCE: Commissioner Sommeling? 12 COMMISSIONER SOMMELING: Yes. 13 MR. NANCE: Vice Chair Epps? 14 VICE CHAIR EPPS: Yes. 15 MR. NANCE: Chair Kassekert? 16 CHAIR KASSEKERT: Yes. 17 MR. NANCE: The record will reflect that 18 the motion is unanimous. 19 CHAIR KASSEKERT: Thank you. 20 MR. O'GARA: Thank you. 21 VICE CHAIR EPPS: We're going to move 22 the Harrah's transaction right after the flag 23 salute. 24 (Laughter.) 25 MR. O'GARA: We have a little place for 57 ITEM NO. 9 1 it. 2 VICE CHAIR EPPS: It's a normal thing on 3 the agenda. 4 MR. O'GARA: Thank you very much. 5 MR. NANCE: Item No. 10, petitions of 6 MGM MIRAGE for waiver of a qualification 7 requirement of officers pursuant to NJSA 8 5:12-85d(1) and NJAC 19:43-5.4. 9 Miss Richardson? 10 MS. RICHARDSON: Good morning, Chair, 11 and Commissioners. 12 A draft resolution was circulated in 13 these matters. And appearing for Petitioners 14 is Nick Casiello and for the Division is DAG 15 Jim Fogarty. 16 CHAIR KASSEKERT: Thank you. 17 Good morning, Mr. Casiello. 18 MR. CASIELLO: Good morning, Madame 19 Chair, and Commissioners. 20 Just briefly, these are two petitions 21 for the waiver of the qualification requirement 22 for Phyllis James and William Scott. They are 23 both Deputy Counsel and Senior VPs of MGM 24 MIRAGE. 25 Phyllis James is responsible for 58 ITEM NO. 9 1 supervising litigation and has been previously 2 qualified. Bill Scott is responsible for 3 banking and financing matters. Neither will be 4 significantly involved in the activities of the 5 casino licensee and the MDDC, which is managed 6 by Boyd Gaming. 7 There is also a third general counsel 8 and senior VP by the name of John McManus. 9 John and the general counsel have been 10 qualified before. 11 I've reviewed the draft resolution and 12 the form and substance is acceptable. 13 Thank you. 14 CHAIR KASSEKERT: Thank you. 15 Mr. Fogarty, good morning. 16 MR. FOGARTY: Yes. Thank you. Good 17 morning. 18 We have filed separate letters, both 19 bearing the same date of October 5, on both Ms. 20 James and Mr. Scott, recommending that you 21 grant the waiver. Not the waiver -- yes. 22 Recommending that you grant the waiver. 23 And we've seen the draft resolution, but 24 one resolution contained both individuals, and 25 we have no objection to it. 59 ITEM NO. 9 1 CHAIR KASSEKERT: Thank you. 2 Any questions for Mr. Fogarty? 3 COMMISSIONER SOMMELING: No questions, 4 Madame Chair. 5 VICE CHAIR EPPS: Madame Chair, I move 6 that we adopt the draft resolution and waive 7 the qualification requirement pursuant to NJSA 8 5:12-85d(1) as to William Scott in his capacity 9 as Senior Vice President and Deputy General 10 Counsel. 11 CHAIR KASSEKERT: Is there a second? 12 COMMISSIONER SOMMELING: Second. 13 CHAIR KASSEKERT: Motion is made and 14 seconded. This is a roll call vote. 15 MR. NANCE: Commissioner Harrington? 16 COMMISSIONER HARRINGTON: Yes. 17 MR. NANCE: Commissioner Sommeling? 18 COMMISSIONER SOMMELING: Yes. 19 MR. NANCE: Vice Chair Epps? 20 VICE CHAIR EPPS: Yes. 21 MR. NANCE: Chair Kassekert? 22 CHAIR KASSEKERT: Yes. 23 MR. NANCE: The record will reflect that 24 the motion is unanimous. 25 CHAIR KASSEKERT: And now -- 60 ITEM NO. 11 1 VICE CHAIR EPPS: Madame Chair, I move 2 that we adopt the draft resolution and waive 3 the qualification requirement pursuant to NJSA 4 5:12-85d(1) as to Phyllis James in her capacity 5 as Senior Vice President and Deputy General 6 Counsel. 7 CHAIR KASSEKERT: Is there a second? 8 COMMISSIONER HARRINGTON: Second. 9 CHAIR KASSEKERT: Motion has been made 10 and seconded. This is a roll call vote. 11 MR. NANCE: Commissioner Harrington? 12 COMMISSIONER HARRINGTON: Yes. 13 MR. NANCE: Commissioner Sommeling? 14 COMMISSIONER SOMMELING: Yes. 15 MR. NANCE: Vice Chair Epps? 16 VICE CHAIR EPPS: Yes. 17 MR. NANCE: Chair Kassekert? 18 CHAIR KASSEKERT: Yes. 19 MR. NANCE: The record will reflect that 20 the motion is unanimous. 21 CHAIR KASSEKERT: Thank you. 22 MR. CASIELLO: Thank you, Commissioners. 23 MR. FOGARTY: Thank you. 24 MR. NANCE: Item No. 11, petition of 25 Trump Taj Mahal Associates requesting approval 61 ITEM NO. 11 1 of certain modifications to its casino room and 2 an amendment of its operating certificate. 3 Mr. Briliant? 4 MR. BRILIANT: Good morning, Chair and 5 Commissioners. 6 This is the petition of Trump Taj Mahal. 7 Loretta Pickus is here on behalf of the 8 Petitioner. Mr. Ficchi is here on behalf of 9 the Division. 10 CHAIR KASSEKERT: Thank you. 11 Good morning, Miss Pickus. 12 MS. PICKUS: Good morning. 13 I initially filed this petition in July 14 to reconfigure the casino perimeter in order to 15 minimize the regulatory burden of filing 16 entertainment submissions for each show 17 appearing in the Ego Lounge. Since that time, 18 in working with your staff and complying with 19 their request, I filed a new and improved 20 entertainment submission which fixed the 21 location and types of entertainment and 22 documents the security and surveillance 23 compliance. 24 This approval required one small 25 condition that I'm here today to ask you to 62 ITEM NO. 11 1 reconsider. It requires that entertainment 2 schedules be constantly filed and updated. The 3 schedules only show the act names and their 4 times. These shows are going on in the public 5 at various times. We want to continue the 6 flexibility we had to schedule on short notice 7 without these additional filings. To place 8 this additional filing burden on our operation 9 now advances absolutely no regulatory purpose. 10 And let me give you an example. We have 11 televisions in the gaming pits. Blackjack 12 players are playing. They can ask to watch 13 sports or Jerry Springer. We don't have to let 14 you know in advance whether the TVs are going 15 to be on and what channel they're tuned in to. 16 There is no substantive difference between the 17 way the TVs operate and the operation of 18 approved entertainment on approved fixed 19 stages. The acts and times are not relevant to 20 any regulatory concern. For that matter, we do 21 not need to advise in advance if our table 22 games are even open or closed. 23 I think we all agree that we should be 24 minimizing the burden of excess filings by 25 casino licensees. We used to file pre-arrival 63 ITEM NO. 11 1 junket reports, post-arrival junket reports. 2 Promotional submissions. All of that this had 3 been deemed superfluous and the conditions 4 removed. Why add this one now? 5 If there are two ways I have outlined by 6 which you can deem us in compliance without 7 extra filings, this Commission should do so. 8 You can allow us to amend the casino perimeter 9 so the casino entertainment regulation does not 10 apply. Or you can find that the entertainment 11 submission satisfies the requirements, and that 12 a permanent stage being used can be used 24/7. 13 As you may know, we've been operating 14 with your approval without filing entertainment 15 schedules for two years without incident. 16 Requiring now that schedules be continuously 17 filed and updated is going backward, not 18 forward. These are fixed permanent stages, and 19 the entertainment on them is approved by you. 20 They are in the public, and your inspectors 21 view them the same way they observe table 22 games. 23 I also note many other casino lounges 24 have and do operate without being required to 25 file the names and times of their entertainers 64 ITEM NO. 11 1 in advance. Specifically, this Commission 2 granted this change -- the casino perimeter 3 change for Tropicana earlier this year in order 4 to reduce the need for entertainment submission 5 filings. 6 So today, for these reasons, I'm asking 7 that you remove this one little condition from 8 our entertainment submission approval and deem 9 it in compliance for entertainment 24/7 in 10 those locations or permit the proposed casino 11 reconfiguration to remove the entertainment 12 from casino space and obviate the regulatory 13 requirement. 14 Thank you. 15 CHAIR KASSEKERT: I guess I have a 16 couple questions for before you we hear from 17 Mr. Ficchi. 18 The first is when -- you know, when I 19 read the petition, you know, I see a big 20 difference between live dancers -- and I've 21 been down there to look at Ego and, you know, I 22 know how close they really are to the casino 23 floor. You know, live entertainment versus 24 television in the pits, and I see a big 25 distinction there in terms of disruption. I 65 ITEM NO. 11 1 do. 2 And, second, just clarify for me. I -- 3 isn't part of Ego casino space because don't 4 you have tabletops? Tabletop slots in there? 5 MS. PICKUS: All of the Ego Lounge is 6 casino space at this time. 7 CHAIR KASSEKERT: Uh-hum. 8 MS. PICKUS: I've move to -- I've 9 applied to remove certain sections of it so the 10 entertainment portion won't be considered in 11 the casino square footage. I beg to differ on 12 the operation. You've approved that 13 entertainment, and its already been found not 14 to be distracting. 15 CHAIR KASSEKERT: Oh, understood. 16 Right. 17 MS. PICKUS: And it's in a fixed 18 location where the security, surveillance has 19 all been met. The only thing we're debating 20 here is whether you have to know the names and 21 times for the acts -- 22 CHAIR KASSEKERT: Uh-hum. 23 MS. PICKUS: -- on an advanced notice 24 basis. Your inspectors can always ask. We can 25 always provide that as they need it if it's 66 ITEM NO. 11 1 needed. But there is no advance filing 2 requirement that satisfies any regulatory, or 3 advances any regulatory concern. You've 4 allowed dancers, bands, DJs. Knowing the names 5 and times is irrelevant. Your staff is there. 6 They're observing table games all the time, the 7 slots all the time. You've approved those 8 24/7. I think this warrants the same 9 consideration. 10 CHAIR KASSEKERT: Okay. Let me ask if 11 there are any other questions before we hear 12 from Mr. Ficchi? 13 COMMISSIONER SOMMELING: Let me hear 14 from Mr. Ficchi. 15 CHAIR KASSEKERT: Okay. Commissioner 16 Epps? 17 VICE CHAIR EPPS: I have a question for 18 Seth. Is that what we're doing? Are we -- is 19 it limited to names or times? Or are we 20 requiring more information than that? 21 MR. BRILIANT: What we had been -- what 22 we had been asking for was the type of 23 entertainment that was being offered and also 24 the times that any of those entertainments 25 would be offered. We would have been -- the 67 ITEM NO. 11 1 staff would have been satisfied -- and I think 2 I speak for the principal inspector, who is 3 also here today. We would have been satisfied 4 with a Chinese menu type of situation where 5 Column A would have been the types of 6 entertainment that were being offered, and 7 Column B would simply say during these specific 8 time frames, any of those acts might be 9 performing. We don't care, you know, which act 10 is performing at which time. But the principal 11 had a concern. She simply wanted to know when 12 entertainment was going to be offered in the 13 Ego Lounge and what types of entertainment were 14 going to be there. That was the situation. 15 MS. PICKUS: And if I may speak to that, 16 we supplied all of that. The only dispute now 17 is, can I do it 24/7 without giving the names 18 and times in advance? Can't I just have this 19 approval, which we've met every requirement and 20 have been operating for two years and 21 demonstrated it? Can I just not have to 22 prefile the names and times? Can't we just 23 deem it 24/7 the way you deem would table games 24 24/7? The way you deem slot machines 24/7? 25 And the televisions, which are pure 68 ITEM NO. 11 1 entertainment, have already been deemed 24/7. 2 There is no other casino lounge which had this 3 requirement. This just is a new issue being 4 brought. And it's superfluous to put the 5 times. Can't I just have it 24/7? 6 We've already gotten everything else 7 accomplished, and everything else meets your 8 satisfaction, and the entertainment is approved 9 by you. 10 CHAIR KASSEKERT: I guess I still see a 11 distinction, though, between live and knowing 12 in advance so that the inspectors are aware of 13 it. 14 And -- and I also want to say just 15 because, you know, it hadn't been done in the 16 past, I don't think that makes it right. I 17 mean, you know, I have to say that Carol is an 18 excellent principal inspector who really 19 follows the regs, and that's a good thing. And 20 maybe in the past if it wasn't done, you know, 21 I -- I'm not happy to hear that it wasn't done, 22 perhaps. 23 Mr. Ficchi -- you want -- 24 MR. FICCHI: Yeah. Let me -- 25 COMMISSIONER SOMMELING: Just one 69 ITEM NO. 11 1 question. 2 CHAIR KASSEKERT: Sure. 3 COMMISSIONER SOMMELING: Just one 4 second, Mr. Ficchi, not you. 5 But in regard to the acts that are in 6 the Ego Lounge, if they were changed at any 7 time -- which they do, I'm sure, because they 8 are ongoing entertainment. 9 MS. PICKUS: Correct. 10 COMMISSIONER SOMMELING: Depending on 11 the type of entertain that are there, has the 12 principal discussed how the surveillance and 13 security might be affected? Or the games, the 14 games themselves, as far as the gaming patrons 15 are concerned with respect to the change? 16 MS. PICKUS: No. There's no issues with 17 that. We've been operating for two years, and 18 there's no issue with that. Whether it's a 19 dancer on stage or DJ, there's been no 20 difference in the security or surveillance. 21 That's why we're saying, why can't be able to 22 put up whoever we want without filing things in 23 advance? And we haven't filed things in 24 advance for two years and neither has any other 25 casino lounge. We just want to be able to do 70 ITEM NO. 11 1 it just like we do table games. It's not back 2 in the count room, somewhere where you need to 3 know whether it's scheduled so you need to be 4 there. Your staff is there and has caught 5 nothing that was of concern to them. This just 6 became -- I don't know, developed a life of its 7 own. And I'm suggesting it is going backward, 8 not going forward. I mean, going backward, 20 9 years we haven't been required to tell you 10 who's on stage and when. It's a little bit 11 new, I would say. Because the entertainment in 12 the past was people marching through the casino 13 or magical acts or jugglers. Now we have fixed 14 locations. So it's so much better and so much 15 easier for you to approve it. Just on a 16 24-hour basis. 17 CHAIR KASSEKERT: Commissioner Epps? 18 VICE CHAIR EPPS: There's a disconnect 19 for me somewhere because it seems simple, and 20 yet it's apparently complex. If what Mr. 21 Briliant says is true, and you seem to be 22 nodding your consent. 23 MS. PICKUS: It is. Yes. 24 VICE CHAIR EPPS: Why would we have an 25 issue? 71 ITEM NO. 11 1 MS. PICKUS: There's only one small 2 condition in the approval that I'm asking to be 3 relieved from, and that is to continually file 4 schedules of the times and acts. Because 5 you've already approved all the Chinese menu. 6 You've approved all the acts. And I'm asking 7 to put -- be able to put them up any time with 8 the same flexibility I've had for two years at 9 any time without any filing in advance when 10 they're going to be on there. 11 VICE CHAIR EPPS: But then what does 12 that -- that -- 13 MR. BRILIANT: Yes. I think -- what I 14 was going to say, Commissioner, I think what we 15 have is List A is a Chinese menu, which is the 16 type of acts that are being offered. What we 17 don't have is List B which simply says which 18 times any of those acts will be on. I don't 19 care when the piano player is on or when the 20 singers are on or whatever, but we just need to 21 know when the entertainment is going to be on 22 so that the inspectors have advance notice for 23 the reasons that we suggested in our memo to 24 you. 25 MS. PICKUS: That's -- and that's the 72 ITEM NO. 11 1 real dispute. I think you can approve it 24/7 2 without advance filings continuously being 3 updated. Because your inspectors are there, 4 and they've been watching the entertainment, 5 know to walk through there the way they walk 6 through the entire gaming pit. So we're giving 7 you everything. 8 VICE CHAIR EPPS: Let me see if I 9 understand your request. 10 MS. PICKUS: Yeah. 11 VICE CHAIR EPPS: Let's say you're going 12 to put Billy Joel on a piano on a pedestal. 13 And you want to say Billy Joel, 24 hours a day. 14 He may be on. He may not. I don't know when 15 he's going to be on, but Billy Joel, if you 16 approve Billy Joel on a piano on that pedestal, 17 I have the right to put him up, and put it 18 down. And I don't have to tell you -- 19 MS. PICKUS: In advance. 20 VICE CHAIR EPPS: When he's goint to 21 be -- 22 MS. PICKUS: In advance. Right. 23 VICE CHAIR EPPS: And what we want to 24 kind to know is, is Billy Joel going to be on 25 every 20 minutes for 40 minutes or -- 73 ITEM NO. 11 1 MS. PICKUS: Yeah. 2 VICE CHAIR EPPS: When is he not going 3 to be on? 4 MS. PICKUS: I thin, that -- 5 VICE CHAIR EPPS: And your answer is I 6 don't know that so I don't -- 7 MS. PICKUS: No. My answer is -- 8 VICE CHAIR EPPS: I don't want to have 9 to you. 10 MS. PICKUS: That we all assume 27/7. 11 Because I'd like the flexibility that we've had 12 for two years to change the entertainment 24/7 13 without paper filings, without any kind of 14 burden on the entertainment operations to file 15 it. It's not really necessary because there's 16 no objection to the type of entertainment, the 17 location, security, surveillance. Everyone 18 agrees. So it's in the time slot of that 19 Chinese menu? I'm saying every time. Every 20 time. Let me do it with flexibility every 21 time. 22 I have one woman in entertainment who 23 does all the contracts for all the lounges and 24 all the shows and all three Trump properties. 25 Now you're asking her to file schedules and to 74 ITEM NO. 11 1 continuously file updated schedules, and for 2 what? I mean, what -- what regulatory need is 3 advanced by knowing the names and times? 4 You've already approved the entertainers and 5 their locations and the types of performances 6 they can do. So I'm just saying what's being 7 advanced by not allowing me to put in that 8 other column, 24/7. 9 Your staff is in there. They are 10 looking an it like they look at the table games 11 and slot machines, which we close and open to 12 obtain business flexibility without advance 13 notice to you as to how we're spreading the 14 pits or closing down our staff. And this is 15 the same thing. 16 COMMISSIONER SOMMELING: Just let me ask 17 one other question regarding scheduling. It 18 has an impact or bearing on scheduling. When 19 you advertise entertainment for the clubs, do 20 you advertise the times as to when those 21 performers are going to time -- going to be 22 playing on the stage? 23 MS. PICKUS: Generally, in lounges we 24 don't advertise it. I mean, we have events 25 where we have special performance DJs in our 75 ITEM NO. 11 1 Casbah. We would put that in an advertisement 2 to draw crowds. But this is a casino lounge 3 environment. The games are there, and this is 4 just ongoing acts that are not name acts or 5 shows or DJs, so that wouldn't be the case. 6 That wouldn't be advertised. 7 COMMISSIONER SOMMELING: Thank you. 8 MS. PICKUS: As a general rule. 9 CHAIR KASSEKERT: Why don't we hear from 10 Mr. Ficchi? 11 MR. FICCHI: Yeah. Thank you, Madame 12 Chair, Commissioners. 13 CHAIR KASSEKERT: Are you going to 14 clarify this for us? 15 MR. FICCHI: Pardon me? 16 CHAIR KASSEKERT: Are you going to 17 clarify this for us? 18 MR. FICCHI: I think I can, but I'm not 19 sure now. 20 (Laughter.) 21 MR. FICCHI: It does seem like a tempest 22 in a teapot on one hand. On the other hand, it 23 sound like a casino that doesn't want to comply 24 with, you know, the full compliance with the 25 regulation because it's more convenient not to. 76 ITEM NO. 11 1 And I understand the reasons for it, and I 2 don't really berate them for that. But I would 3 say you have my letter of October 8, so I'm not 4 going to recite it. But, essentially, it comes 5 down to two arguments. One is that the regs, 6 as written, you know, can we get a lot of 7 flexibility with them? 8 CHAIR KASSEKERT: Uh-hum. 9 MR. FICCHI: The answer, in talking with 10 your staff and so forth, they certainly want to 11 give that to them. And I'm sure you would, 12 also. But they can't be read in such a way to 13 just negate part of the requirements for them. 14 So it doesn't require a schedule. There's a 15 reason to have a schedule so that you know 16 what's going on in the casino, that we know -- 17 whether you want to take advantage of that 18 information, that's entirely up to your staff. 19 But that's something that should be provided to 20 you. You should not have to go around finding 21 the entertainment person and seeing what the 22 schedule is. You should know that. It should 23 be a filing that you have. So, and that's in 24 the regulation. It's pretty clear. So if you 25 want to amend or an appeal the regulation, 77 ITEM NO. 11 1 that's your prerogative. But certainly it's 2 held up to this point, and it's kept you and 3 the Division abreast of what's going on in the 4 casino at all times, and that's an important 5 thing. 6 I would take little bit of exception to 7 Miss Pickus saying that no one else does this, 8 no other lounge does this. I don't think that 9 that's quite accurate. And your staff may be 10 able to advise you more specifically. And I 11 won't want to get in the record on that, but I 12 don't know if that's the case in all cases. 13 And, in fact, I have the understanding that 14 it's not, so. There may have been examples 15 where you haven't -- or let's say your 16 principal or whatever for whatever reason has 17 not required it on a particular lounge. And 18 this is something that you may want to look at 19 more closely after today to ask your principals 20 what is going on with that. But if it is, it's 21 very, very limited exceptions, and maybe they 22 can be remedied in the future. 23 The second point has to do with making 24 the areas of entertainment non, you know, 25 casino floor space. Well, I mean, it's right 78 ITEM NO. 11 1 on the casino floor. The Ego Lounge is part of 2 the casino floor. I know it says "lounge" on 3 it, but if you look at it, they serve drinks on 4 the whole casino floor. The whole casino floor 5 is one giant lounge, if you care to look at it 6 that way. So it is on the casino floor, 7 whatever is going on in the Ego Lounge. So 8 whatever is going on at the entertainment stage 9 is going on in the casino floor, and it's also 10 surrounded by the casino floor. It's just 11 outside the Ego Lounge, so it is important. 12 It is a sensitive area. Not maybe as 13 sensitive as, you know, a one-time event. Miss 14 Pickus brought up the idea of, let's say, 15 one -- someone walking across -- stilt walkers 16 or clowns, or whatever they want to have, some 17 special entertainment, one-shot deal. It's a 18 little different than that, admittedly. And 19 your staff would give it flexibility with 20 regard to the fact that it is some sort of 21 regular and continuing type of entertainment. 22 But the regulation is clear as to what is 23 required in any -- in any scenario, and it 24 doesn't make distinction as to one-shot or 25 continuing types of educa -- or entertainment. 79 ITEM NO. 11 1 So that's basically what we would have. 2 We would oppose the petition of Taj, but I 3 mean, certainly, we would all like to give them 4 flexibility in terms of running their business. 5 And I don't know if it's really -- if that's 6 really the issue. I mean, I think your staff 7 and yourselves would provide that flexibility 8 without negating the regulation. 9 Thank you. 10 MS. PICKUS: I never asked to negate the 11 regulation nor have I sought not to comply. 12 I've actually found two ways to comply and 13 minimize the regulatory burden on a very small 14 staff. 15 And I guess I can go into the other way 16 if you want to hear about pending petitions. 17 But I have complied with the entertainment 18 submission requirement a hundred percent. And 19 I have told the times that various 20 entertainment would be there, and the times 21 would be all day long because I can't limit 22 when we may want to put someone up there or 23 not. 24 And there is absolutely no regulatory 25 advantage to saying this act is on this stage 80 ITEM NO. 11 1 at this time. And I would suggest that no one 2 has had to do it all along. And I understand 3 now some of the principal inspectors are asking 4 from some other casinos to do it now. But this 5 is the whole problem. This is why I'm here. 6 We don't want all want to start doing this now 7 because there's not a regulatory need for it. 8 And with respect to the casino perimeter 9 petition, that is one mechanism that casinos 10 can use to minimize regulatory burden. In 11 fact, the statute was changed to remove the 12 casino room requirement so that the casino 13 perimeter can spill anywhere the business wants 14 in terms of needs and flexibility. The 15 Commission itself has approved casino borders 16 that would actually, without contiguous 17 simulcast space, allow all table games to be 18 taken into simulcast space by just a perimeter 19 border move, and that would allow expanding the 20 slot machine operation and number of slots 21 available in the casino, technical casino 22 space. So manipulating that casino border and 23 reconfigurating [sic] it is what the relief was 24 given when the statute was changed. And this 25 is just another way of doing that. 81 ITEM NO. 11 1 Now, I know you've given this relief 2 already to Tropicana, and that's the relief I 3 asked for. I didn't think it was a big issue. 4 In fact, I wrote right on it, handwritten. I 5 think this will take care of the ongoing 6 submission requirement. And it is an 7 appropriate way to take care of it. It's not a 8 sneaky way. It's an upfront way. It's a way 9 that's been given by this Commission in the 10 past, and that's what I initially asked for. 11 The staff said, no. Please file one. I filed 12 one anyway. Gave them everything they needed. 13 And they're not suggesting to you that they 14 need anything else in terms of security, 15 surveillance, any -- anything else. It's 16 exactly where it is, and that's exactly where 17 it's going to be. 18 You're soon going to have the Revel 19 casino. They're going to want to do some 20 innovative things like they do in Vegas, the 21 different types of dance pits that go on. I'm 22 here for everybody, not just for this small 23 casino, but for everybody to say, don't go 24 forward adding this requirement. You have the 25 authority to say this submission is complete. 82 ITEM NO. 11 1 The times is whenever, and if you do any acts 2 beyond that or anything beyond the stage, 3 certainly, you better file something. And 4 that's where -- we want one fixed generic 5 submission. And anything special, we would go 6 to you. For example, if we have an auction in 7 there or anything else, we would let you know. 8 But the casino perimeter, that was a 9 perfectly legitimate way for you to grant this 10 relief. I don't -- in fact, I don't know if 11 you -- and I don't mean to say this, but 12 there's absolutely no precedent for you denying 13 a casino's flexibility in creating its border. 14 I've heard of nothing of that nature. Why deny 15 that? I mean, the appropriate procedure would 16 be for you to grant the casino's flexibility in 17 creating its perimeter as it needs. And if 18 your staff thinks that a submission is still 19 required after that, they would let the 20 Division file charges for not complying with 21 the regulation. But the appropriate process is 22 not for you to deny my application to configure 23 my casino the way I chose. That's another bad 24 road, another precedent that would be backward, 25 not forward. 83 ITEM NO. 11 1 CHAIR KASSEKERT: Okay. I think we're 2 going to take a brief recess. 3 (A recess was taken from 11:45 to 12:03 4 p.m.) 5 CHAIR KASSEKERT: Thank you. We'll go 6 back on the record. 7 Let me ask if the parties have anything 8 else to say, or if any of the Commissioners 9 have any additional questions? 10 COMMISSIONER SOMMELING: No questions, 11 Madame Chair. 12 CHAIR KASSEKERT: Commissioner Epps? 13 VICE CHAIR EPPS: I have one question to 14 Loretta. I'm interested to see how you speak 15 to this issue. 16 Mike's act may be one thing and then 17 Linda's act may be another thing, and then 18 Seth's act yet a third. And that would require 19 the Commission to, you know, look at things -- 20 look at each act differently. But if I don't 21 know whether it's going to be Seth or Mike or 22 Linda, I don't know how to prepare myself. And 23 what you're saying is I should be prepared for 24 the maximum because it's always going to be one 25 of those three. And because you don't want to 84 ITEM NO. 11 1 have to tell me that it's Mike or Seth or 2 Linda. That's what I hear from you. 3 MS. PICKUS: That's not the case. In 4 fact, I've given the list of all types of 5 entertainment can occur on those stages at any 6 given time during the day. And if there are 7 some things that are not on that list, I would 8 submit an additional entertainment submission 9 and explain what those unusual conditions might 10 be. 11 VICE CHAIR EPPS: Hold on one second. 12 MS. PICKUS: At any given time -- 13 VICE CHAIR EPPS: But -- wait. 14 MS. PICKUS: And what I mean, like 15 comedian speaking, a DJ playing music, it's all 16 in that confined space, and your inspectors are 17 there to view it. 18 VICE CHAIR EPPS: Wait. What I'm saying 19 is, if I have to -- if I feel like I need to be 20 there for Seth, but Linda's kind of not here, 21 so I don't need to be here. If I need to know 22 when I need to be there, and you say it may be 23 Seth, it may be Linda, I don't know whether I 24 need to be there or not because you don't want 25 to tell me that it's Linda which is when I need 85 ITEM NO. 11 1 to be there. 2 MS. PICKUS: It's not that I don't need 3 to tell you. I have told you. I have told you 4 there will be dancers there. There been 5 musicians. There that are piano players and 6 there will be DJs there. So at any given time, 7 while your staff is inspecting, they will see 8 any one of those types of acts there. 9 VICE CHAIR EPPS: Now -- 10 MS. PICKUS: None of those quality of 11 acts present any particular concern because 12 you've approved the security and surveillance. 13 VICE CHAIR EPPS: Right. But hold on. 14 MS. PICKUS: If I have a sword thrower 15 or a magician or sword thrower or something 16 involving something unique or different than 17 those things, then I could see -- 18 VICE CHAIR EPPS: Even if I approved 19 Seth. I said, okay, Seth is approved, and I 20 understand you're going to have Seth. But I'm 21 approving Seth's act, but Seth's act still 22 gives me some pause. So while he's approvable, 23 I want to be there when Seth is on. Linda's 24 on, I don't need to be there. So if I think I 25 need to be in the area when Seth is on, I need 86 ITEM NO. 11 1 to know when Seth is on because then I need to 2 react to that. But what you're telling me is 3 because you approved Seth, you don't need to 4 know when he's on. But I do because I need to 5 staff it different. 6 MS. PICKUS: But -- but you really 7 don't. It's just like the table games. You 8 know that you've approved them, and they can be 9 opened or closed at any given time. And you 10 know you've approved the entertainment. And 11 what from what I heard Seth, it's just a matter 12 of letting him know the time. In fact, we've 13 talked about limiting the times so that I can 14 say any time between midnight and 6 a.m. no one 15 will be there. Or just a few hours out of the 16 day. And if that's acceptable, if you allow 17 flexibility, and then anything between 2 a.m. 18 and 6 a.m. or 7 or 8 a.m. when we are unlikely 19 to have anything there, if anything occurs 20 then, I'll advise you of that. 21 But we're trying to find a way -- we've 22 talked about all of these things, obviously. 23 And I'm -- just don't think the names and times 24 are important once you've approved the type of 25 entertainment. 87 ITEM NO. 11 1 VICE CHAIR EPPS: I guess we're seeing 2 it differently. 3 CHAIR KASSEKERT: Yeah. I think so. 4 Absolutely. 5 Commissioner, Harrington? Go ahead. 6 COMMISSIONER HARRINGTON: Don't you have 7 contracts with each of the entertainers, and so 8 wouldn't the entertainment -- entertainment 9 coordinator have that? Are they just open 10 ended? 11 MS. PICKUS: Contracts are -- yes. For 12 the year. 13 COMMISSIONER HARRINGTON: So you don't 14 know who's going up? 15 MS. PICKUS: They're blanket for the 16 year. Yearly for this particular act 17 throughout the year. 18 COMMISSIONER HARRINGTON: But for the 19 casino itself, wouldn't I want to know that on 20 a Friday or on any given day that in this time 21 slot I have this entertainment? 22 MS. PICKUS: Certainly. Certainly. 23 COMMISSIONER HARRINGTON: And so if you 24 have that -- I guess I'm hard pressed to 25 understand the complexity in just copying us on 88 ITEM NO. 11 1 that or making -- making it available. 2 MS. PICKUS: It's -- it's a matter of 3 requiring and requiring someone to continually 4 do it and update it that's a concern. I mean, 5 it's not a regulatory necessity. And -- 6 CHAIR KASSEKERT: But it's in the 7 regulations, Loretta. Okay. 8 MS. PICKUS: I just don't understand why 9 we would have a requirement to continue filing 10 things when we've never had one and other 11 places don't have one. And we reconfigure our 12 casino floor on get away from that. We have a 13 lot of things in the building, but we're not 14 required to file them. And if we don't file 15 them or stick someone in on short notice, we're 16 out of compliance. I don't want to agree to a 17 compliance standard, filing continuously when 18 we want that flexibility. And we've had it for 19 two years. 20 COMMISSIONER SOMMELING: I don't know if 21 it's a matter of you agreeing with it. If we 22 require it. 23 MS. PICKUS: Oh, I know that. That's 24 why I'm here. 25 COMMISSIONER SOMMELING: I think that 89 ITEM NO. 11 1 ought to be a clear point. Not that that -- I 2 know you know the Commission can do certain 3 things outside the scope of what the 4 regulations say literally. I mean, there are 5 applications of the regulations. 6 MS. PICKUS: Yes. 7 COMMISSIONER SOMMELING: That we can 8 approve that will -- so something can be done 9 within the confines of the casino. 10 But what would be the matter with just a 11 simple e-mail going back and forth between the 12 person that schedules the entertainment and the 13 principal inspector? 14 MS. PICKUS: I think it's an additional 15 burden on the operation. 16 COMMISSIONER SOMMELING: An e-mail is an 17 additional burden? Is that a big thing? 18 MS. PICKUS: Yes. We have one woman 19 doing all of it. And why require that if you 20 never have. You're going backwards, not 21 forward. You don't need it. 22 VICE CHAIR EPPS: Okay. 23 MS. PICKUS: I'm telling you, it will go 24 in a circular file. 25 CHAIR KASSEKERT: Knowing Miss Defoor, I 90 ITEM NO. 11 1 doubt that seriously. 2 All right. The plain and obvious 3 purpose of the Casino -- the Commission's 4 regulations is to prevent entertainment 5 impairing the security and integrity of casino 6 gaming either by disrupting or interfering with 7 casino operations or by unduly distracting the 8 patrons and casino and security personnel. 9 Therefore, when NJAC 19:43-15.2 speaks 10 of "entertainment being offered within the 11 casino room," I believe that language should be 12 interpreted broadly to include not only 13 activities which are actually physically 14 located on the casino floor but also any 15 entertainment that is "significantly visible or 16 audible from or on the casino floor" even if it 17 emanates from an area that is not on the casino 18 floor. 19 Taj has taken a very narrow, 20 restrictive, and overly technical 21 interpretation of the phrase "within the casino 22 room," implying that any entertainment note 23 specifically and physically located on the 24 casino floor cannot be regulated by the 25 Commission. But, in my view, which is also 91 ITEM NO. 11 1 supported by the Division's position in this 2 matter, it's irrelevant whether the 3 entertainment in question is physically located 4 on the casino floor or not since it's being 5 seen and heard by persons on the casino floor. 6 In this respect, I note that the main 7 stage and the smaller crescent-shaped dance 8 stage of the Ego Lounge are entirely surrounded 9 by casino floor space and are accessible and 10 visible only to the casino floor. The 11 remaining two four-foot square dance stages at 12 either side of the southerly bar entrance are 13 also clearly visible to the patrons within the 14 Ego Lounge, and those patrons are also on the 15 casino floor. 16 Since the entertainment is being offered 17 within the casino room, Taj should be required 18 to comply with the entertainment regulations 19 regarding the dates, times, and the 20 descriptions of the proposed entertainment. 21 Furthermore, in this instance, the requested 22 delicensure of the stage area serves no 23 legitimate purpose, is an obvious attempt to 24 circumvent a Commission regulation, and, in any 25 event, would not change the result of the 92 ITEM NO. 11 1 requiring an entertainment submission under our 2 interpretation of NJAC 19:43-15.2. 3 To justify its delicensure request, Taj 4 has cited a number of instances that other 5 casino hotels in which portions the casino 6 floor were allegedly delicensed solely to 7 eliminate entertainment submissions. This is a 8 misleading oversimplification of the issue, and 9 is also inaccurate. Apparently, there may have 10 been some inconsistencies in the designation of 11 certain portions of various bars or in the 12 requiring of an entertainment submission over 13 the years. However, none of the locations 14 cited are similar to the Ego Lounge. 15 Furthermore, if any of the entertainment 16 submissions should have been filed but were not 17 required in certain instances, I think the 18 proper solution would be to correct those 19 oversights, not to continue or expand the same 20 incorrect policies. 21 Taj has alternatively requested a waiver 22 of the date, time, and description requirements 23 in NJAC 19:43-15.2(a)1 and 2 on the grounds 24 that these requirements are superfluous, 25 accomplish no regulatory purpose, are 93 ITEM NO. 11 1 burdensome, and prevent the Taj from meeting 2 its business needs. Taj also argues that 3 Commission inspectors are in the casino 24/7 4 and can observe all the entertainment taking 5 place. 6 However, the Commission's presence is 7 not a substitute to advance written notice 8 which allows for advance consultation and 9 preparation with a licensee's table games 10 department, as well as its surveillance and the 11 security personnel. Commission inspectors 12 should not be required to play a game of 13 hide-and-seek on the casino floor. Requiring 14 notice of when and where entertainment is being 15 provided on the casino floor permits Commission 16 inspectors to be particularly vigilant that the 17 security and integrity of the games are not 18 being impaired during those times. 19 In my view, the Taj has not presented 20 any facts which show that the be Ego Lounge 21 constitutes a special case or good cause exists 22 to waive the regulatory requirements at issue 23 as required by NJAC 19:40-1.3(d). Taj does 24 argue that because entertainment submissions 25 were inadvertently not submitted during the 94 ITEM NO. 11 1 past two years in the Ego Lounge, and that 2 there were no incidents or problems during that 3 time, Taj should not be required to submit them 4 now. This hardly suggests -- this hardly 5 addresses the substantive issues. Thus, I 6 cannot support Taj's waiver request. 7 Finally, I note that the Commission's 8 request -- the Commission's entertainment 9 regulation was adopted in 1992 and has not been 10 formally revisited since that time. Given the 11 issues raised by this petition, this regulation 12 should probably be updated at this time to 13 include our interpretation and clarification of 14 the current phrase "offered within the casino 15 room." I'm, therefore, requesting that the 16 staff prepare a Notice of Proposal for 17 regulatory amendment which would include the 18 additional clarifying language about 19 entertainment that is "significantly visible or 20 audible from or on the casino floor." 21 And, therefore, I make a motion to deny 22 the relief requested in the petition. 23 Is there a second? 24 COMMISSIONER SOMMELING: Second. 25 VICE CHAIR EPPS: Second. 95 ITEM NO. 12 1 CHAIR KASSEKERT: The motion has been 2 made and seconded. All in favor? 3 (Ayes.) 4 CHAIR KASSEKERT: Opposed? 5 (No response.) 6 CHAIR KASSEKERT: Motion carries. 7 Thank you. 8 MS. PICKUS: Thank you. 9 MR. FICCHI: Thank you. 10 MR. NANCE: Item No. 12, petition of 11 Showboat Atlantic City Operating Company, LLC, 12 and IGT for permission to transfer progressive 13 slot jackpots pursuant to NJSA -- excuse me -- 14 NJAC 19:45-1.39(n). 15 Mr. Briliant? 16 MR. BRILIANT: Good afternoon, Madame 17 Chair and Commissioners. This is a petition of 18 Showboat and IGT to transfer the four 19 progressive slot jackpots from their in-house 20 Diamond Jackpot game to the second-level 21 jackpot of the in-house Red Hot Jackpot game. 22 You have the Division's position. I've 23 circulated a proposed resolution, which the 24 parties have indicated is satisfactory to them, 25 and the parties have also asked that the matter 96 ITEM NO. 13 1 be heard on the papers, which is why nobody 2 else is here but me. 3 CHAIR KASSEKERT: Okay. Thank you. 4 Any questions for Mr. Briliant? 5 COMMISSIONER SOMMELING: No questions, 6 Madame Chair. 7 VICE CHAIR EPPS: Madame Chair, I move 8 that we adopt the draft resolution and grant 9 the relief requested by Showboat Atlantic City 10 Operating Company, LLC, and IGT to permit the 11 transfer of the Diamond Jackpot progressive 12 slot -- progressive jackpots to the Red Hot 13 Jackpot progressive slot machine jackpot 14 subject to the compliance with the 30-day 15 requirement in NJAC 19:45-1.39(n). 16 CHAIR KASSEKERT: Is there a second? 17 COMMISSIONER SOMMELING: 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. NANCE: Item No. 13, petition of 25 Trump Marina Associates, LLC, for permission to 97 ITEM NO. 13 1 transfer progressive slot jackpots pursuant to 2 NJAC 19:45-1.39(n). 3 Mr. Briliant? 4 MR. BRILIANT: Okay. This is Trump 5 Marina's petition to transfer seven progressive 6 slot jackpots from the Bally Power progressive 7 game to the IGT Wild Jackpot game. 8 You have the Division's position. 9 Again, I've circulated a proposed resolution 10 which the parties indicated would be 11 satisfactory. 12 They did ask that the matter be heard on 13 the papers. And, once again, this is a 14 multi-level progressive jackpot. The four 15 smallest jackpots do not comply with the reg, 16 but we're only talking about a grand total of 17 $58 here, which is about two percent of the 18 total amount being transferred. 19 CHAIR KASSEKERT: Thank you. 20 Any questions? 21 COMMISSIONER SOMMELING: No questions, 22 Madame Chair. 23 Madame Chair, move to adopt the draft 24 resolution and grant the relief requested by 25 Trump Marina Associates, LLC, permit the 98 ITEM NO. 14 1 transfer of the Bally Power progressive slot 2 machine jackpots to IGT Wild Jackpot 3 progressive slot machine jackpot subject to the 4 compliance -- compliance with the 30-day notice 5 requirement in NJAC 19:45-1.39(n). 6 VICE CHAIR EPPS: Second. 7 COMMISSIONER HARRINGTON: 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: The motion carries. 14 MR. BRILIANT: Thank you. 15 MR. NANCE: Item No. 14, proposed 16 temporary adoption of amendments for blackjack 17 dealt by hand with one or two decks, notice of 18 rulemaking experiment for blackjack dealt by 19 hand with one or two decks pursuant to NJAC 20 5: -- excuse me -- NJSA 5:12-69e. 21 Mr. Mamolen? 22 MR. MAMOLEN: Good afternoon, Madame 23 Chair, and Commissioners. 24 Before you is, again, a matter for 25 temporary adoption and test authorization which 99 ITEM NO. 14 1 would enable casino licensees to deal a game of 2 blackjack by hand without the use of any shoe, 3 either automated or manual shoe. It would also 4 enable by hand and that is a pitch game for the 5 players to touch the cards, similar to what 6 they do in the six-to-five variation. 7 Again, it is before you for temporary 8 adoption and test. This was brought before us 9 by the -- by the industry as per their current 10 wish list. 11 CHAIR KASSEKERT: Any questions? 12 Commissioner Epps? 13 VICE CHAIR EPPS: Question. In this 14 variation, the dealer is dealing by hand, and 15 the player's touching the cards. Are the cards 16 dealt to the patrons both going to be facedown? 17 MR. MAMOLEN: Yes. 18 VICE CHAIR EPPS: So both cards will be 19 facedown, and the hit card would be -- 20 MR. MAMOLEN: Hit cards are always dealt 21 faceup. 22 VICE CHAIR EPPS: Hit cards are always 23 going to be up. Okay. 24 MR. MAMOLEN: There are a few other 25 exceptions to cards being dealt faceup. Of 100 ITEM NO. 14 1 course, when a player wants to split a pair, he 2 would have to indicate -- 3 VICE CHAIR EPPS: Put them down. 4 MR. MAMOLEN: -- actual cards. There 5 are certain rules with respect to doubling down 6 that they can only double down, I believe it is 7 nine, ten or eleven. So they would have to 8 indicate -- 9 VICE CHAIR EPPS: Kind of declare what 10 they have. 11 MR. MAMOLEN: -- that. 12 VICE CHAIR EPPS: Okay. 13 CHAIR KASSEKERT: Any other questions? 14 COMMISSIONER SOMMELING: No questions, 15 Madame Chair. 16 COMMISSIONER HARRINGTON: All right. I 17 will move that we, A, preliminarily approve the 18 new procedures for one or two deck blackjack 19 dealt from the hand as compatible with the 20 public interest pursuant to Section 5 of the 21 Act; B, authorize the publication of the Notice 22 of Temporary Adoption which will be -- which 23 will permit a test of the new procedures to 24 begin on or after November 23rd, 2009, subject 25 to the conditions listed and continue for a 101 ITEM NO. 15 1 period of time not to exceed 270 days; C, 2 temporarily adopt amendments contained in the 3 Notice of Proposal for the purpose of 4 conducting the test; D, delegate to the 5 Director to the Division of compliance the 6 authority to establish the terms and conditions 7 of a test of the new procedures; and E, 8 condition any test of the new procedures upon 9 the filing with and approval by the Division of 10 Compliance of all necessary test submissions 11 for a Section 69e test. 12 COMMISSIONER SOMMELING: Second. 13 CHAIR KASSEKERT: The motion has been 14 made and seconded. All in favor? 15 (Ayes.) 16 CHAIR KASSEKERT: Opposed? 17 (No response.) 18 CHAIR KASSEKERT: Motion carries. 19 MR. NANCE: Item No. 15, proposed 20 adoption of amendments and new rules for 21 Supreme Pai Gow. 22 Mr. Mamolen? 23 MR. MAMOLEN: This matter is before you 24 for final adoption. It's another new game. 25 Supreme Pai Gow is played fairly similarly to 102 ITEM NO. 16 1 pai gow poker except with four cards to each 2 player with two cards high hands and two card 3 low hands. 4 We recently, I would note for the 5 record, received an updated confirmation of the 6 base game mathematical analysis from the 7 Division of Gaming Enforcement, and this was 8 within the last couple of days. 9 CHAIR KASSEKERT: Thank you. 10 Any questions? 11 COMMISSIONER SOMMELING: No questions, 12 Madame Chair. 13 VICE CHAIR EPPS: Move to adopt as 14 published. 15 CHAIR KASSEKERT: Is there a second? 16 COMMISSIONER HARRINGTON: 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. 16, petition of 24 Harrah's Entertainment, Inc., Harrah's 25 Operating Company, Inc., Harrah's Atlantic City 103 ITEM NO. 16 1 Operating Company, LLC, Showboat Atlantic City, 2 Operating Company, LLC, Bally's Park Place, 3 Inc., and Boardwalk Regency Corporation 4 requesting permission for Peter Murphy to 5 perform the duties and exercise the powers of 6 President, Strategy and Development for 7 Harrah's Entertainment, Inc., and Harrah's 8 Operating Company, Inc., prior to 9 qualification. 10 Miss Frank? 11 MS. FRANK: Good afternoon, Chair and 12 Commissioners. 13 A draft resolution on Peter Murphy's 14 temporary qualification has been circulated to 15 the parties. 16 We have Mike Magazzu here for Harrah's 17 and Dorothy Turi for the Division. 18 CHAIR KASSEKERT: Good afternoon, Mr. 19 Magazzu. 20 MR. MAGAZZU: Good afternoon and thank 21 you, Madame Chair and Commissioners. Mike 22 Magazzu on behalf of the Petitioners. 23 We have reviewed the draft resolution. 24 We have nothing to add other than to 25 respectfully request that the petition be 104 ITEM NO. 16 1 granted. 2 Thank you. 3 CHAIR KASSEKERT: Thank you. 4 Miss Turi? 5 MS. TURI: Good afternoon, 6 Commissioners. 7 We filed our report on October 8, 2009, 8 in which we did not object to the relief being 9 sought. 10 We've also reviewed the draft 11 resolution, and we have no objection to it 12 being entered, of course, subject to the 13 conditions as stated therein. 14 CHAIR KASSEKERT: Thank you. 15 Any questions? 16 COMMISSIONER SOMMELING: No questions, 17 Madame Chair. 18 VICE CHAIR EPPS: Madame Chair, I move 19 that we adopt the draft resolution and 20 authorize Peter Murphy on a temporary basis 21 prior to his plenary qualification to assume 22 the duties and exercise the powers of 23 President, Strategy and Development for 24 Harrah's Entertainment, Inc., and Harrah's 25 Operating Company, Inc., subject to the 105 ITEM NO. 17 1 conditions contained in NJAC 19:43-2.7 which, 2 among other things, require that he file a 3 personal history disclosure form MJ and New 4 Jersey supplement by October 29, 2009. 5 CHAIR KASSEKERT: Is there a second? 6 COMMISSIONER SOMMELING: Second. 7 COMMISSIONER HARRINGTON: Second. 8 CHAIR KASSEKERT: Motion is made and 9 seconded. This is a roll call vote. 10 MR. NANCE: Commissioner Harrington? 11 COMMISSIONER HARRINGTON: Yes. 12 MR. NANCE: Commissioner Sommeling? 13 COMMISSIONER SOMMELING: Yes. 14 MR. NANCE: Vice Chair Epps? 15 VICE CHAIR EPPS: Yes. 16 MR. NANCE: Chair Kassekert? 17 CHAIR KASSEKERT: Yes. 18 MR. NANCE: The record will reflect that 19 the motion is unanimous. 20 Item No. 17, petition of Harrah's 21 Entertainment, Inc., Harrah's Operating 22 Company, Inc., Harrah's Atlantic City Operating 23 Company, LLC, Showboat Atlantic City Operating 24 Company, LLC, Bally Park Place, Inc., and 25 Boardwalk Regency Corporation requesting 106 ITEM NO. 17 1 permission for Duane Holloway to perform the 2 duties and exercise the powers of Vice 3 President, Litigation and Labor and Employment 4 for Harrah's Entertainment, Inc., and Harrah's 5 Operating Company, Inc., prior to 6 qualification. 7 Miss Frank? 8 MS. FRANK: Chair and Commissioners, a 9 draft resolution on Duane Holloway's temporary 10 qualification has been circulated to the 11 parties. 12 Again, we have Mike Magazzu and Dorothy 13 Turi. 14 CHAIR KASSEKERT: Mr. Magazzu? 15 MR. MAGAZZU: Thank you again, Madame 16 Chair and Commissioners. 17 Again, we have reviewed the draft 18 resolution, and we are satisfied with the same. 19 We have nothing to add other than to request 20 that the petition be granted. 21 Thank you. 22 CHAIR KASSEKERT: Thank you. 23 Miss Turi? 24 MS. TURI: Yes. One again, you have the 25 Division's report dated October 8, 2009. We've 107 ITEM NO. 17 1 also reviewed the draft resolution. We have no 2 objection to its entry subject, again, to the 3 conditions that are stated therein. 4 CHAIR KASSEKERT: Thank you. 5 Any questions? 6 COMMISSIONER SOMMELING: No questions, 7 Madame Chair. 8 VICE CHAIR EPPS: Madame Chair, I move 9 that we adopt the draft address and authorize 10 Duane Holloway on a temporary basis to assume 11 the duties and exercise the powers of Vice 12 President, Litigation and Labor and Employment 13 for Harrah's Entertainment, Inc., and Harrah's 14 Operating Company, Inc., subject to the 15 conditions contained in NJAC 19:43.2.7 which, 16 among other things, require that he file a 17 personal history disclosure form MJ, and New 18 Jersey supplement by October 29, 2009. 19 CHAIR KASSEKERT: Is there a second? 20 COMMISSIONER HARRINGTON: Second. 21 CHAIR KASSEKERT: Motion has been made 22 and seconded. This is a roll call vote. 23 MR. NANCE: Commissioner Harrington? 24 COMMISSIONER HARRINGTON: Yes. 25 MR. NANCE: Commissioner Sommeling? 108 ITEM NO. 17 1 COMMISSIONER SOMMELING: Yes. 2 MR. NANCE: Vice Chair Epps? 3 VICE CHAIR EPPS: Yes. 4 MR. NANCE: Chair Kassekert? 5 CHAIR KASSEKERT: Yes. 6 MR. NANCE: The record will reflect that 7 the motion is unanimous. 8 CHAIR KASSEKERT: Thank you. 9 MS. TURI: Thank you. 10 MS. FRANK: Thank you. 11 MR. NANCE: Item 18 has been adjourned. 12 In accordance with Resolution No. 13 08-12-10-22, the next closed session of the 14 Commission shall be held on Wednesday, October 15 28th, 2009, at 9:15 a.m. in the Commission 16 offices. 17 It is now time for the public 18 participation portion of the meeting. 19 CHAIR KASSEKERT: Is there anyone from 20 the public who wishes to be heard? 21 (No response.) 22 CHAIR KASSEKERT: Seeing no one, I will 23 declare this portion of the meeting closed and 24 entertain a motion to adjourn. 25 COMMISSIONER SOMMELING: Motion to 109 1 adjourn. 2 CHAIR KASSEKERT: Is there a second? 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 Thank you. 11 (Public Meeting 09-10-14 was adjourned 12 at 12:26 p.m.) 13 14 15 16 17 18 19 20 21 22 23 24 25 110 1 2 C E R T I F I C A T E 3 4 5 I, DARLENE SILLITOE, a Certified Court 6 Reporter and Notary Public of the State of New 7 Jersey, certify that the foregoing is a true 8 and accurate transcript of the proceedings. 9 10 11 I further certify that I am neither 12 attorney, of counsel for, nor related to or 13 employed by any of the parties to the action; 14 further that I am not a relative or employee of 15 any attorney or counsel employed in this case; 16 nor am I financially interested in the action. 17 18 19 DARLENE SILLITOE CCR 20 License No XI01023 21 22 Dated: October 17, 2009 23 My Notary Commission Expires July 22, 2014 24 ID No 2062871 25