1 1 STATE OF NEW JERSEY 2 CASINO CONTROL COMMISSION 3 - - - - - - - - - - - - - - - - - - - 4 5 PUBLIC MEETING NO. 10-09-08 6 7 - - - - - - - - - - - - - - - - - - - 8 9 Wednesday, September 8, 2010 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 10:39 a.m. to 11:05 a.m. 15 16 17 Certified Court Reporter: Darlene Sillitoe 18 - - - - - - - - - - - - - - - - - - - - - - - - - - - 19 20 ATLANTIC CITY COURT REPORTING, LLC 21 CERTIFIED COURT REPORTERS AND VIDEOGRAPHERS 22 1125 ATLANTIC AVENUE, SUITE 700 23 ATLANTIC CITY, NEW JERSEY 08401 24 (609) 345-8448 www.accourtreporting.com 25 2 1 B E F O R E : 2 CASINO CONTROL COMMISSION: LINDA M. KASSEKERT, CHAIR 3 SHARON ANNE HARRINGTON, VICE CHAIR MICHAEL C. EPPS, COMMISSIONER 4 WILLIAM T. SOMMELING, COMMISSIONER EDWARD J. FANELLE, COMMISSIONER 5 6 PRESENT FOR THE CASINO CONTROL COMMISSION: DARYL W. NANCE, ADMINISTRATIVE ANALYST 7 DANIEL J. HENEGHAN, PUBLIC INFORMATION OFFICER 8 OFFICE OF THE GENERAL COUNSEL: DIANNA W. FAUNTLEROY, GENERAL COUNSEL/EXECUTIVE 9 SECRETARY MARY WOZNIAK, ASSISTANT GENERAL COUNSEL 10 SETH H. BRILLIANT, SENIOR COUNSEL BERNADETTE T. FRIGEN, PROGRAM SUPERVISOR 11 SANDRA DeLIA, LEGAL SUPPORT SPECIALIST 12 DIVISION OF GAMING ENFORCEMENT: DEPUTY ATTORNEYS GENERAL 13 TIMOTHY C. FICCHI, DEPUTY ATTORNEY GENERAL CHARLES F. KIMMEL, DEPUTY ATTORNEY GENERAL 14 DOROTHY TURI, DEPUTY ATTORNEY GENERAL R. LANE STEBBINS, DEPUTY ATTORNEY GENERAL 15 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. 3 DOROTHY TURI, DEPUTY ATTORNEY GENERAL MICHAEL MAGAZZU, ESQ. 3 FOR: HARRAH'S ATLANTIC CITY 4 ITEM NO. 10 MARY WOZNIAK, ASSISTANT GENERAL COUNSEL DOROTHY TURI, DEPUTY ATTORNEY GENERAL 5 STERNS & WEINROTH, PC PAUL M. O'GARA, ESQ. 6 FOR: HARRAH'S ENTERTAINMENT, INC., AND HARRAH'S ATLANTIC CITY OPERATING 7 COMPANY, LLC 8 ITEM NO. 11 SETH H. BRILIANT, SENIOR COUNSEL TIMOTHY C. FICCHI, DEPUTY ATTORNEY GENERAL 9 MARIEL J. GILETTO, ESQ. FOR SHUFFLE MASTER, INC., CUSTOMIZED 10 CASINO GAMES, LTD., AND BALLY'S PARK PLACE 11 ITEM NO. 12 SETH H. BRILIANT, SENIOR COUNSEL CHARLES F. KIMMEL, DEPUTY ATTORNEY GENERAL 12 LEO PREVITI, ESQ. FOR: IGT AND TRUMP TAJ MAHAL 13 ASSOCIATES, LLC 14 15 16 17 18 19 20 21 22 23 24 25 4 1 AGENDA PUBLIC MEETING NO. 10-09-08 2 SEPTEMBER 8, 2010, 10:39 a.m. ITEM PAGE VOTE 3 1 Ratification of the minutes of the 9 9 August 18, 2010, public meeting 4 2 Applications for employee and casino service industry licenses 5 3 initial and/or renewal of casino key 9 10 and casino employee licenses 6 12 initial and/or renewal of casino key 10 10 and casino employee licenses 7 Applications for initial or renewal of 11 11 Casino key employee licenses and for 8 Qualifications: Nancy L. Hughes, Vice President of Legal 9 Affairs, Chief Legal Officer (Easter Division) for Bally's Park Place, Inc., Boardwalk 10 Regency Corporation, Harrah's Atlantic City Operating Company, LLC, and Showboat Atlantic 11 City Operating Company, LLC Karen E. Worman, Assistant General 12 Manager for Bally's Park Place, Inc., (NJ) 3 Petition of Harrah's Atlantic City 12 13 13 Operating Company, LLC, Showboat Atlantic City Operating Company, LLC, Bally's Park 14 Place, Inc., (d/b/a Bally's Atlantic City) and Boardwalk Regency Corporation (d/b/a 15 Caesars Atlantic City) for the issuance of a temporary casino key employee license to 16 Daniel Brockdorf pursuant to NJSA 5:12-89(e) and to permit him pursuant to NJAC 19:43-2.6 17 to assume the duties and exercise the powers of Vice President of Database Marketing 18 without first having been qualified (PRN 2281002) 4 Stipulations of settlement and consent agreements: 19 a) Joanne McKensie (10-0195-ER) 14 16 b) Frangina A. Lewis (10-0114-EA) 14 16 20 c) Sysomvang Phatthana (10-0019-EA) 14 16 d) Joel R. Scott (09-0711-EA) 14 16 21 e) Barbara J. Dabney (09-0513-ER) 14 16 f) Amanda D. Horner (09-0732-RC) 14 16 22 g) Mahabubul A. Mozammel (09-0570-RC) 14 16 h) Daniel R. Rowan (10-0127-RC) 14 16 23 i) Marco A. Florian (10-0137-ER) 14 16 j) Hussein A. Mane (10-0205-ER) 14 16 24 k) Richard J. Ruh (09-0581-RC) 14 16 5 Petition of Marcio A. Gomez for early 17 18 25 Reapplication (a/k/a Gomez-Varela) (10-0198-RA) 5 1 CONTINUED AGENDA PUBLIC MEETING NO. 10-09-08 2 SEPTEMBER 8, 2010, 10:39 a.m. ITEM PAGE VOTE 3 6 Preliminary Hearing concerning the 18 21 Exclusion of: 4 a) Jack M. Buscemi, Jr. (10-0233-EL) b) Joseph A. Gaggi (10-0237-EL) 5 7 Consideration of the Division of Gaming 21 23 Enforcement request to amend 59 orders to 6 delete federal-related financial reporting requirements as a condition of licensure 7 8 Applications for suspension: 23 24 a) Onyea T. David (10-0262-RC) 8 b) Kiera A. Evans (10-0273-RC) 9 Consideration of forfeiture orders in 24 27 9 State v. Marina District Development Company, et al. (10-0164-VC) 10 10 Petition of Harrah's Entertainment, Inc. 27 31 and Harrah's Atlantic City Operating 11 Company, LLC, for approval of the transfer of limited liability company interest in a 12 non-publicly traded casino licensee, qualification of a holding company, and 13 other relief (PRN 2041001) 11 Petition of Shuffle Master, Inc., 32 35 14 Customized Casino Games, Ltd., and Bally's Park Place, Inc., (d/b/a Bally's Atlantic 15 City) for approval of "Blackjack Switch" as an authorized game pursuant to NJSA 5:12-5 16 and NJSA 5:12-69(e) (PRN 0501006); and Proposed temporary adoption of amendments 17 to NJAC 19:45-1.12; 19:46-1.17 through 1.19 and new rules NJAC 19:46-1.10C, 19:47-2A.1 18 through 2A.14, et seq, pursuant to NJSA 5:12-69(e) (Blackjack Switch) 19 12 Petition of IGT and Trump Taj Mahal 35 37 Associates, LLC, for permission to transfer 20 progressive multi-level instant-pay slot jackpots pursuant to NJAC 19:45-1.39(n) 21 (PRN 2361002) 13 Proposed adoption of amendment to NJAC 37 38 22 19:45-1.8 (Destruction of Gaming Vouchers) 14 Proposed adoption of amendments to NJAC 38 39 23 19:45-1.10 (Required CCTV coverage/filming) 15 Proposed adoption of amendments to NJAC 40 41 24 19:45-1.10, 1.33A and 1.54 (Bill Validator Drop Procedures) 25 6 1 CONTINUED AGENDA PUBLIC MEETING NO. 10-09-08 2 SEPTEMBER 8, 2010, 10:39 a.m. ITEM PAGE VOTE 3 16 Proposed adoption of amendments to NJAC 41 42 19:45-1.8 and 1.26 (Destruction of Redeemed 4 Patron Checks) 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 7 1 E X H I B I T S : 2 NO. DESCRIPTION EVD 3 4 P-1 Remand for hearings 3 license X 5 P-2 Grant 12 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 10-09-08 was commenced 2 at 10:39 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 Meeting Act," the New Jersey Casino Control 9 Commission on October 15, 2009, filed with the 10 Secretary of State at the State House in 11 Trenton, New Jersey, a notice of this hearing. 12 On October 16, 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 is prohibited. 20 Any member of the public who wish to 21 address the Commission will be given the 22 opportunity to do so before the Commission 23 adjourns for the day. 24 Please stand for the Pledge of 25 Allegiance. 9 ITEM NO. 1-2 1 (The flag salute was recited. 2 CHAIR KASSEKERT: Good morning. 3 MR. NANCE: Good morning. 4 The matters discussed in closed session 5 were: Employee and enterprise license matters. 6 The Commissioners approved the August 7 18th, 2010, closed-session minutes. 8 Litigation update regarding: Edwards 9 versus Adamar of New Jersey, Inc., et al. 10 Item No. 1, ratification of the minutes 11 of the August 18th, 2010, public meeting. 12 COMMISSIONER SOMMELING: Move to 13 approve. 14 COMMISSIONER FANELLE: 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: The motion carries. 21 MR. NANCE: Item No. 2, application 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 three 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 COMMISSIONER EPPS: Move that we remand 5 these matters for hearings. 6 COMMISSIONER SOMMELING: Second. 7 VICE CHAIR HARRINGTON: Second. 8 CHAIR KASSEKERT: Motion has been made 9 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 12 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 COMMISSIONER EPPS: 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. 2 1 (No response.) 2 CHAIR KASSEKERT: Motion carries. 3 MR. NANCE: For consideration are the 4 following applications for renewal of casino 5 key and casino employee licenses and for 6 qualification: Nancy L. Hughes, Vice President 7 of Legal Affairs, Chief Legal Officer for 8 Bally's Park Place, Inc., Boardwalk Regency 9 Corporation, Harrah's Atlantic City Operating 10 Company, LLC, and Showboat Atlantic City 11 Operating Company, LLC; and Karen E. Worman, 12 Assistant General Manager for Bally's Park 13 Place, Inc. 14 Staff and the Division has recommended 15 that these licenses be granted. 16 VICE CHAIR HARRINGTON: I'll move we 17 grant initial and -- initial and renewal of key 18 licenses and for qualification. 19 COMMISSIONER FANELLE: Second. 20 COMMISSIONER EPPS: Second. 21 CHAIR KASSEKERT: Motion is made and 22 seconded. This is a roll call vote. 23 MR. NANCE: Commissioner Sommeling? 24 COMMISSIONER SOMMELING: Yes. 25 MR. NANCE: Commissioner Epps? 12 ITEM NO. 3 1 COMMISSIONER EPPS: Yes. 2 MR. NANCE: Commissioner Fanelle? 3 COMMISSIONER FANELLE: Yes. 4 MR. NANCE: Vice Chair Harrington? 5 VICE CHAIR HARRINGTON: Yes. 6 MR. NANCE: Chair Kassekert? 7 CHAIR KASSEKERT: Yes. 8 MR. NANCE: The record will reflect that 9 the motion is unanimous. 10 Item No. 3, Petition No. 2281002 of 11 Harrah's Atlantic City Operating Company, LLC, 12 Showboat Atlantic City Operating Company, LLC, 13 Bally's Park Place, Inc., and Boardwalk Regency 14 Corporation which is requesting the issuance of 15 a temporary casino key employee license to 16 Daniel Brockdorf pursuant to NJSA 5:12-89(e) 17 and to permit him pursuant to NJAC 19:43-2.6 to 18 assume the duties and exercise the powers of 19 Vice President of Database Marketing without 20 first having been found qualified. 21 CHAIR KASSEKERT: Good morning, Mr. 22 Magazzu. 23 MR. MAGAZZU: Good morning. Thank you, 24 Madame Chair, members of the Commission. Mike 25 Magazzu on behalf of the Petitioners. 13 ITEM NO. 3 1 I don't have anything to add to the 2 petition other than it's certainly permissible 3 under the regs and appropriate for the granting 4 of the petition, and we ask that you grant the 5 same. 6 CHAIR KASSEKERT: Thank you. 7 Good morning, Miss Turi. 8 MS. TURI: Good morning. Dorothy Turi 9 on behalf of the Division of Gaming 10 Enforcement. 11 The Division has no objection to 12 granting the requests. 13 CHAIR KASSEKERT: Thank you. 14 Any questions? 15 COMMISSIONER SOMMELING: No questions, 16 Madame Chair. 17 VICE CHAIR HARRINGTON: I'll move that 18 we grant temporary key license and 19 qualification. 20 COMMISSIONER EPPS: Second. 21 CHAIR KASSEKERT: Motion is made and 22 seconded. This is a roll call vote. 23 MR. NANCE: Commissioner Sommeling? 24 COMMISSIONER SOMMELING: Yes. 25 MR. NANCE: Commissioner Epps? 14 ITEM NO. 4 1 COMMISSIONER EPPS: Yes. 2 MR. NANCE: Commissioner Fanelle? 3 COMMISSIONER FANELLE: Yes. 4 MR. NANCE: Vice Chair Harrington? 5 VICE CHAIR HARRINGTON: Yes. 6 MR. NANCE: Chair Kassekert? 7 CHAIR KASSEKERT: Yes. 8 MR. NANCE: The record will reflect that 9 the motion is unanimous. 10 CHAIR KASSEKERT: Thank you. 11 MR. MAGAZZU: Thank you. 12 MR. NANCE: Item No. 4, stipulation of 13 settlement and consent agreements. When I call 14 your name, please come forward, stand behind 15 this middle table, spreading across the room so 16 you may be seen: Joanne McKensie, Frangina 17 Lewis, Sysomvang Phatthana, Joel Scott, Barbara 18 Dabney, Amanda Horner, Mahabubul Mozammel, 19 Daniel Rowan, Marco Florian, Hussein Mane, and 20 Richard Ruh. 21 CHAIR KASSEKERT: Thank you. 22 Has everyone whose name been called come 23 forward at this point? 24 FROM THE FLOOR: Yes. 25 CHAIR KASSEKERT: Okay. I'm going to 15 ITEM NO. 4 1 ask that you each state your name for the 2 record, starting with you, sir. 3 What is your name? 4 MR. PHATTHANA: Oh. Sysomvang 5 Phatthana. 6 CHAIR KASSEKERT: Thank you. 7 MS. DABNEY: Barbara Dabney. 8 MS. McKENSIE: Joanne McKensie. 9 MR. SCOTT: Joel R. Scott. 10 CHAIR KASSEKERT: Thank you. 11 In a moment -- yes, sir? 12 MR. RUH: I'm sorry. I didn't hear any 13 name called. Or is it on this list? 14 CHAIR KASSEKERT: What's your name, sir? 15 MR. RUH: Richard Ruh. 16 CHAIR KASSEKERT: Yes. You're on this 17 list. 18 Thank you. 19 MR. RUH: I didn't hear. I'm sorry. 20 CHAIR KASSEKERT: That's okay. 21 In a moment we are going to vote on the 22 stipulations of settlement which you've agreed 23 to with the Division of Gaming Enforcement. 24 I'm going to ask at this point if any of you 25 wish to be heard on your matter. You don't 16 ITEM NO. 4 1 have to say anything if you don't want to. 2 Does anyone wish to be heard? 3 FROM THE FLOOR: No. 4 FROM THE FLOOR: No. 5 CHAIR KASSEKERT: No? Okay. 6 Mr. -- Kimmel. 7 MR. KIMMEL: Thank you, Chair. 8 The Division just requests that you 9 approve the stipulations as agreed to with the 10 parties. 11 CHAIR KASSEKERT: Thank you. 12 Any questions? 13 COMMISSIONER SOMMELING: Madame Chair, 14 move to approve the stipulations as stated. 15 VICE CHAIR HARRINGTON: Second. 16 COMMISSIONER EPPS: 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 Thank you for coming. Good luck. 24 FROM THE FLOOR: Thank you very much. 25 FROM THE FLOOR: Thank you. 17 ITEM NO. 5 1 FORM THE FLOOR: Thank you. 2 MR. NANCE: Item No. 5, petition of 3 Marcio A. Gomez for early reapplication. 4 Miss Frigen? 5 MS. FRIGEN: I don't believe so, but let 6 me confirm. Is Marcio Gomez present or 7 represented? 8 (No response.) 9 MS. FRIGEN: Commissioners, he 10 apparently is not here today. 11 For your consideration is his petition 12 seeking permission to reapply early for a 13 registration and/or a non-hotel credential 14 employment. 15 And by letter dated July 2nd, the 16 Division interposed no objection. 17 Mr. Kimmel is here for the Division. 18 CHAIR KASSEKERT: Thank you. 19 Mr. Kimmel? 20 MR. KIMMEL: I have to say I'm 21 disappointed that he's not here, and yet we 22 probably would have objected to a request for 23 early reapplication for a license in this case. 24 However, as the conduct does not involve 25 good character or disqualifying conduct, we did 18 ITEM NO. 6 1 not object to the request that was set forth in 2 the petition on the hotel side. We're staying 3 with that position, but, again, I would express 4 my disappointment that he's not. 5 CHAIR KASSEKERT: Okay. I agree. Thank 6 you, Mr. Kimmel. 7 Any questions for the Division? 8 COMMISSIONER SOMMELING: I have no 9 questions, Madame Chair. 10 VICE CHAIR HARRINGTON: I will move that 11 we deny Mr. Gomez's request to reapply early 12 for a casino service employee service 13 registration but grant Mr. Gomez permission to 14 work as a non-credential hotel employee. 15 COMMISSIONER EPPS: Second. 16 CHAIR KASSEKERT: The motion has been 17 made and seconded. All in favor? 18 (Ayes.) 19 CHAIR KASSEKERT: Opposed? 20 (No response.) 21 CHAIR KASSEKERT: Motion carries. 22 Thank you. 23 MR. KIMMEL: Thank you. 24 MR. NANCE: Item No. 6, preliminary 25 hearing concerning the exclusion of Jack 19 ITEM NO. 6 1 Buscemi, Jr., and Joseph Gaggi. 2 Ms. Frigen? 3 MS. FRIGEN: Before we hear from the 4 Division on these two cases, let me ask whether 5 Mr. Buscemi or Mr. Gaggi is present -- are 6 present or represented? 7 (No response.) 8 MS. FRIGEN: I don't believe so. I 9 didn't see anybody check in. 10 CHAIR KASSEKERT: Okay. Thank you. 11 MS. FRIGEN: Mr. Stebbins, I believe, is 12 here on behalf of Mr. Buscemi, and Mr. Ficchi 13 is here on behalf of Mr. Gaggi's case. 14 CHAIR KASSEKERT: Thank you. 15 MS. FRIGEN: For the Division. 16 MR. STEBBINS: Madame Chair, members of 17 the Commission, with regard to Mr. Buscemi, you 18 have before you the Indictment, the Judgment of 19 Conviction, together with a Statement of 20 Reasons. Although Mr. Buscemi was successful 21 in having reference to organized crime deleted 22 from the Statement of Reasons, you can see that 23 in the Amendment to the Judgment of Conviction. 24 Nevertheless, the other statements by the judge 25 in the case detail what's going on here. 20 ITEM NO. 6 1 He was one of the principals in a 2 substantial sports betting scheme being 3 operated out of the Borgata. He plead guilty 4 to conspiracy to commit money laundering, 5 second-degree crime, and it's very serious, and 6 it's not anything that we as regulators, either 7 me on my side or you on your side, could 8 tolerate, and the order should be entered. 9 CHAIR KASSEKERT: Thank you. 10 Mr. Ficchi? 11 MR. FICCHI: Thank you. 12 I would just -- for Mr. Gaggi the 13 Division would respectfully request that you 14 place Mr. Gaggi on -- preliminarily on the 15 exclusion list. As the papers would indicate, 16 the legal bookmaking operation which he was -- 17 intimately involved in, and his presence in the 18 casino would be inimical to the purposes of the 19 Casino Control Act. 20 If you have -- 21 CHAIR KASSEKERT: Thank you. 22 MR. FICCHI: Thank you. 23 CHAIR KASSEKERT: Any questions for the 24 Division? 25 COMMISSIONER SOMMELING: Madame Chair, I 21 ITEM NO. 7 1 move to the preliminary placement of the names 2 of Jack Buscemi, Jr., and Joseph A. Gaggi on 3 the exclusion list pending the final outcome of 4 the petitions for final exclusion. 5 COMMISSIONER EPPS: Second. 6 CHAIR KASSEKERT: The motion has been 7 made and seconded. All in favor? 8 (Ayes.) 9 CHAIR KASSEKERT: Opposed? 10 (No response.) 11 CHAIR KASSEKERT: Motion carries. 12 Thank you. 13 MR. FICCHI: Thank you. 14 MR. STEBBINS: Thank you. 15 MR. NANCE: Item No. 7, consideration of 16 the Division of Gaming Enforcement's request to 17 amend 59 orders to delete federal-related 18 financial reporting requirements as a condition 19 of licensure. 20 Miss Frigen? 21 MS. FRIGEN: Okay. All right let me 22 just inquire if there's anybody here in 23 connection with this agenda item? 24 (No response.) 25 MS. FRIGEN: I don't believe so. 22 ITEM NO. 7 1 As indicated, this is a motion brought 2 by the Division. I would ask Mr. Kimmel to 3 proceed. 4 CHAIR KASSEKERT: Thank you. 5 MR. KIMMEL: In this case, Chair, we are 6 seeking simply to eliminate the reporting 7 requirements for people who had financial 8 issues. We believe that we can actively 9 monitor these cases at the renewal application. 10 And we, therefore, think that in terms of 11 economy of resources, it would be appropriate 12 to do away with the reporting conditions but 13 not the underlying financial stability 14 requirement, obviously. 15 Thank you. 16 CHAIR KASSEKERT: Thank you. 17 Any questions for Mr. Kimmel? 18 COMMISSIONER SOMMELING: I have no 19 questions, Madame Chair. 20 COMMISSIONER EPPS: I move we grant the 21 Commission's request to amend 59 orders and 22 delete each licensee's obligation to report the 23 status of their federal financial debt to the 24 Division as a condition of licensure. 25 COMMISSIONER FANELLE: Second. 23 ITEM NO. 8 1 CHAIR KASSEKERT: The motion has been 2 made and seconded. All in favor? 3 (Ayes.) 4 CHAIR KASSEKERT: Opposed? 5 (No response.) 6 CHAIR KASSEKERT: Motion carries. 7 Thank you. 8 MR. NANCE: Item No. 8, application for 9 suspension for Onyea Davis and Kiera Evans. 10 Ms. DeLia? 11 MS. DeLIA: Good morning Chair, 12 Commissioners. 13 I would like to ask if any of these 14 individuals are present or represented? 15 (No response.) 16 MS. DeLIA: Apparently not. 17 Mr. Kimmel is here on behalf of the 18 Division. 19 MR. KIMMEL: Thank you, Chair. 20 With regard to Miss Evans, she has 21 entered a guilty plea in Atlantic City 22 Municipal Court. 23 With regard to Miss Davis, there is a 24 status conference scheduled for next month. 25 Those charges technically remain pending a 24 ITEM NO. 9 1 grand jury, although I understand an accusation 2 has been drafted, and there may actually be 3 some negotiations to a guilty plea on that case 4 as well. But it remains pending. 5 We ask that you grant the applications. 6 CHAIR KASSEKERT: Thank you. 7 Any questions? 8 COMMISSIONER SOMMELING: No questions, 9 Madame Chair. 10 COMMISSIONER EPPS: Move to suspend 11 credentials. 12 CHAIR KASSEKERT: Is there a second? 13 COMMISSIONER SOMMELING: Second. 14 CHAIR KASSEKERT: The motion has been 15 made and seconded. All in favor? 16 (Ayes.) 17 CHAIR KASSEKERT: Opposed? 18 (No response.) 19 CHAIR KASSEKERT: The motion carries. 20 Thank you. 21 MR. KIMMEL: Thank you. 22 MR. NANCE: Item No. 9, consideration of 23 forfeiture orders in State versus Marina 24 District Development Company, et al. 25 Miss DeLia? 25 ITEM NO. 9 1 MS. DeLIA: For the Commission's 2 consideration is a forfeiture order seeking 3 money confiscated from self-excluded patrons at 4 the Borgata to be turned over to the Commission 5 for disposition, dismiss the forfeiture action 6 with respect to PB based upon her having been 7 removed from the self-exclusion list prior to 8 her gambling. 9 The forfeiture amount has been adjusted. 10 CHAIR KASSEKERT: Thank you. 11 I'm sorry. Did I interrupt you? 12 MS. DeLIA: Counsel for Borgata has 13 provided a letter advising that he has no 14 objection to the entry and confirming the 15 disbursement of money to PB. Each patron was 16 provided with notice except for PB, and they 17 have either not responded or stated that they 18 were not contesting the action. 19 Mr. Stebbins is here on behalf of the 20 Division. 21 CHAIR KASSEKERT: Thank you. 22 Mr. Stebbins? 23 MR. STEBBINS: Good morning again, 24 Madame Chair, members of the Commission. 25 You have before you the paperwork on 26 ITEM NO. 9 1 this. Miss DeLia laid it out very nicely. PB 2 was a matter of time as far as when the request 3 for removal occurred. And then what actually 4 happened, she put in a request and then 5 immediately went out and gambled. So it looked 6 to the house as if she was still on the list 7 when, in fact, she had come to you and taken 8 herself off the list. 9 However, I would ask to move forward on 10 the other two people. It's not an 11 insubstantial amount of money. And I would 12 just add that the Borgata, as other houses as 13 well, seems to be doing a pretty good job of 14 policing the self-exclusion situation as best 15 they can. 16 CHAIR KASSEKERT: Thank you. 17 Any questions for Mr. Stebbins? 18 COMMISSIONER SOMMELING: I have no 19 questions, Madame Chair. 20 VICE CHAIR HARRINGTON: I will move that 21 we dismiss without prejudice the forfeiture 22 action with respect to patron PB based upon 23 having been removed from the self-exclusion 24 list prior to having gambled; otherwise order 25 that the remaining money received from the 27 ITEM NO. 10 1 other patrons be forfeited due to their having 2 gambled while on the self-exclusion list and 3 Marina District Development Corp -- Company is 4 directed to remit the forfeited funds to the 5 Commission for appropriate disposition in 6 accordance NJSA 5:12-71.3. 7 COMMISSIONER FANELLE: Second. 8 CHAIR KASSEKERT: Motion is been made 9 and seconded. All in favor? 10 (Ayes.) 11 CHAIR KASSEKERT: Opposed? 12 (No response.) 13 CHAIR KASSEKERT: The motion carries. 14 Thank you. 15 MR. STEBBINS: Thank you. 16 MS. DeLIA: Thank you. 17 MR. NANCE: Item No. 10, petition of 18 Harrah's Entertainment, Inc., and Harrah's 19 Atlantic City Operating Company, LLC, for 20 approval of the transfer of limited liability 21 company interests in a non-publicly traded 22 casino licensee, qualification of a holding 23 company, and other relief. 24 Miss Wozniak? 25 MS. WOZNIAK: Good morning, Chair, 28 ITEM NO. 10 1 Commissioners. I have distributed a draft 2 resolution. 3 Mr. O'Gara is here on behalf of the 4 Petitioners and Miss Turi for the Division. 5 CHAIR KASSEKERT: Thank you. 6 Mr. O'Gara? 7 MR. O'GARA: Yes. Good morning, Chair. 8 Yeah. I think it's relatively simple. 9 It's for the transfer of an interest of a 10 corporation to an LLC in a chain which involves 11 ultimately what is called Harrah's Atlantic 12 City Operating Company, which is the operator 13 of the Harrah's facility out in the Marina. 14 Just briefly, it's not done just as a 15 routine matter to try to befuddle people, to 16 try to move interests around, which it 17 sometimes appears. Harrah's Atlantic City is 18 the only CMBS property in the Harrah's CMBS 19 portfolio, an actually functioning CMBS loan. 20 And this is part of an overall structure change 21 which has occurred over the last year and which 22 through the forecasts and regular meetings with 23 your financial people you're aware of, which 24 is, we amended the loan agreement last Friday. 25 And as a result, they'll be this and another 29 ITEM NO. 10 1 approval we'll seek for a management company, 2 just structurally. It doesn't change anything. 3 And as a result of that and a result of buying 4 back some portion of the interests through 5 this -- these series of transactions, that CMBS 6 loan will been reduced by approximately $2 7 billion over the next 12 months and will bring 8 it to within the range that it can be dealt 9 with at its maturity. And if you'll recall, 10 it's a very substantial, magnitude of $7 11 million. And so this is just one of the things 12 that fits into that piece. 13 As I said, all the loan documents have 14 been signed. And pursuant to the resolution, 15 they're going to be brought over to you because 16 we amended it, and then bring it to you after 17 we did it. And there will be one more approval 18 that we'll seek. It's kind of structural like 19 this. That's what they are. They're not just 20 random attempts to befuddle people. Sometimes 21 people suggest to me that they were. 22 (Laughter.) 23 MR. O'GARA: Thank you. 24 CHAIR KASSEKERT: Any questions for 25 Mr. -- let's see if we can befuddle Mr. O'Gara. 30 ITEM NO. 10 1 (Laughter.) 2 COMMISSIONER SOMMELING: No questions, 3 Madame Chair. 4 CHAIR KASSEKERT: Miss Turi? 5 MS. TURI: Good morning, Chair 6 Kassekert, Commissioners, once again. 7 The Division is aware of all of the 8 issues and all the statements regarding the 9 CMBS loan. We're aware of the fact that it was 10 signed on Friday, has become operative. We 11 are, of course, monitoring everything that 12 deals with the CMBS loan and the financial 13 reporting as well as other financial situations 14 at Harrah's Entertainment, Inc., as they affect 15 the Atlantic City casinos, and particularly 16 Harrah's Atlantic City as it is at this point. 17 We have reviewed the information that 18 has been presented regarding the transfer of 19 the interest to an LLC from a corporation. 20 We've provided you with the information we 21 have, and we have no objection to this 22 particular change subject to the conditions 23 that we set forth in our response to the 24 petition, as well as the conditions that have 25 been set forth in the draft resolution. 31 ITEM NO. 10 1 That said, the Division has no objection 2 to the entry of the draft resolution as it is 3 at this point. 4 Thank you. 5 CHAIR KASSEKERT: Thank you. 6 Any questions for the Division? 7 COMMISSIONER SOMMELING: I have no 8 questions, Madame Chair. 9 COMMISSIONER FANELLE: Move that we 10 adopt the draft resolution, and: A, approve 11 the transfer of the interests in Harrah's OPTCO 12 and; B, find Harrah's ACH New Company, LLC, 13 qualified subject to the conditions and to the 14 extent set forth in the resolution. 15 COMMISSIONER SOMMELING: Second. 16 CHAIR KASSEKERT: Motion has been made 17 and seconded. This is a roll call vote. 18 MR. NANCE: Commissioner Sommeling? 19 COMMISSIONER SOMMELING: Yes. 20 MR. NANCE: Commissioner Epps? 21 COMMISSIONER EPPS: Yes. 22 MR. NANCE: Commissioner Fanelle? 23 COMMISSIONER FANELLE: Yes. 24 MR. NANCE: Vice Chair Harrington? 25 VICE CHAIR HARRINGTON: Yes. 32 ITEM NO. 11 1 MR. NANCE: Chair Kassekert? 2 CHAIR KASSEKERT: Yes. 3 MR. NANCE: The record will reflect that 4 the motion is unanimous. 5 CHAIR KASSEKERT: Thank you. 6 MR. O'GARA: Thank you. 7 MS. TURI: Thank you. 8 MR. NANCE: Item No. 11, petition of 9 Shuffle Master, Inc., Customized Casino Games, 10 Ltd., and Bally's Park Place, Inc., for 11 approval of Blackjack Switch as an authorized 12 game pursuant to NJSA 5:12-5 and NJSA 13 5:12-69(e), and proposed temporary adoption and 14 new rules -- excuse me -- proposed temporary 15 adoption and new rules concerning Blackjack 16 Switch. 17 Mr. Briliant? 18 MR. BRILIANT: Good morning, Madame 19 Chair and Commissioners. 20 Mr. Ficchi is here on behalf of the 21 Division. Counsel is here on behalf of the 22 Petitioner, and I have circulated a draft 23 resolution to all the parties. 24 CHAIR KASSEKERT: Thank you. 25 Good morning. 33 ITEM NO. 11 1 MS. GILETTO: Good morning, Madame 2 Chair, Commissioners. Mariel Giletto on behalf 3 of Shuffle Master, Inc., and Customized Casino 4 Games, Ltd. 5 You have before you the petition for 6 approval of Blackjack Switch. 7 We have nothing further to add except 8 that we have reviewed the draft resolution and 9 we agree to same. 10 Thanks. 11 CHAIR KASSEKERT: Thank you. 12 MS. GILETTO: Any questions? 13 CHAIR KASSEKERT: Sure. 14 Any questions? 15 COMMISSIONER SOMMELING: No questions, 16 Madame Chair. 17 VICE CHAIR HARRINGTON: I will just say 18 that it's -- this befuddles me. 19 (Laughter.) 20 VICE CHAIR HARRINGTON: Mary did a very 21 good job of making sure we understood the 22 Harrah's thing. This -- these games are, you 23 know -- Seth is quite a -- quite a champion to 24 be able to understand these. 25 MR. BRILIANT: I would just add for the 34 ITEM NO. 11 1 record, I want to thank the Division's 2 statistician for working his way through the 3 house advantage on this, which took him quite a 4 while to do. So, you weren't the only one that 5 was befuddled. 6 (Laughter.) 7 CHAIR KASSEKERT: Mr. Ficchi? 8 MR. FICCHI: Thank you, Madame Chair, 9 Commissioners. Yes. 10 As Seth pointed out, the Division did a 11 mathematical analysis of this, and regardless 12 of the scheme, how you do it, this house 13 advantage did match what was being represented 14 by the Petitioners. So we can verify that. 15 Thank you. 16 CHAIR KASSEKERT: Thank you. 17 Any questions? 18 COMMISSIONER SOMMELING: No questions, 19 Madame Chair. 20 VICE CHAIR HARRINGTON: I will move that 21 we: A, rule that Blackjack Switch is a 22 variation of the game of blackjack pursuant to 23 Section 5 of the Act; B, temporarily adopt and 24 publish the amendments and new rule contained 25 in the notice of proposal for the purpose of 35 ITEM NO. 12 1 conducting the test; and C, condition any test 2 of the game upon the filing with and approval 3 by the Division of Compliance of all necessary 4 test submissions from the casino licensees 5 wishing to conduct the test. 6 COMMISSIONER FANELLE: Second. 7 CHAIR KASSEKERT: The motion has been 8 made and seconded. All in favor? 9 (Ayes.) 10 CHAIR KASSEKERT: Opposed? 11 (No response.) 12 CHAIR KASSEKERT: Motion carries. 13 Thank you. 14 MS. GILETTO: Thank you. 15 MR. FICCHI: Thank you. 16 MR. NANCE: Item No. 12, petition of IGT 17 and Trump Taj Mahal Associates, LLC, for 18 permission to transfer progressive multi-level 19 instant-pay slot jackpots pursuant to NJAC 20 19:45-1.39(n). 21 Mr. Briliant? 22 MR. BRILIANT: Okay. Mr. Previti is 23 here on behalf of IGT. Mr. Kimmel is here on 24 behalf of the Division. 25 And I have circulated a draft resolution 36 ITEM NO. 12 1 to the parties. 2 Thank you. 3 CHAIR KASSEKERT: Good morning, Mr. 4 Previti. 5 MR. PREVITI: Good morning, Chair, 6 Commissioners. 7 We're here asking for permission to 8 transfer the Diamond jackpot, progressive 9 jackpots, to the Amazing Race and discontinue 10 the Diamond jackpots at Trump Taj Mahal. 11 And we're here to answer any questions. 12 We've reviewed the draft resolution and 13 are good with that. 14 CHAIR KASSEKERT: Thank you. 15 Mr. Kimmel? 16 MR. KIMMEL: Thank you. 17 I've also reviewed the draft resolution 18 and do not object to its adoption. 19 CHAIR KASSEKERT: Thank you. 20 Any questions? 21 COMMISSIONER SOMMELING: No questions, 22 Madame Chair. 23 COMMISSIONER EPPS: I move that we adopt 24 the draft resolution and grant the relief 25 requested by IGT and Trump Taj Mahal 37 ITEM NO. 13 1 Associates, LLC, to permit the progressive 2 multi-level instant-pay slot jackpot transfers 3 subject to compliance with the 30-day notice 4 requirement in NJAC 19:45-1.39(n). 5 COMMISSIONER SOMMELING: Second. 6 CHAIR KASSEKERT: The motion has been 7 made and seconded. All in favor? 8 (Ayes.) 9 CHAIR KASSEKERT: Opposed? 10 (No response.) 11 CHAIR KASSEKERT: Motion carries. 12 Thank you. 13 MR. PREVITI: Thank you. 14 MR. NANCE: Item No. 13, proposed 15 adoption of amendment to NJAC 19:45-1.8. 16 Mr. Briliant? 17 MR. BRILIANT: Commissioners, this 18 proposal was part of the wish list that was 19 submitted by the Casino Association of New 20 Jersey. It would permit a casino licensee to 21 destroy redeemed, verified, and cancelled 22 gaming vouchers immediately after the casino 23 controller has verified that all audits have 24 been completed. 25 The Notice of Proposal was published in 38 ITEM NO. 14 1 the New Jersey "Register" on June 7th, 2010. 2 We've received one public comment during 3 the public comment period. And for the reasons 4 that we laid out in our memo, we suggested that 5 the comment be rejected and that the proposal 6 be adopted without change. 7 The matter is now before you. 8 CHAIR KASSEKERT: Thank you. 9 Any questions? 10 COMMISSIONER SOMMELING: No questions, 11 Madame Chair. 12 COMMISSIONER EPPS: Move that we adopt 13 without change. 14 COMMISSIONER FANELLE: 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: The motion carries. 21 MR. NANCE: Item No. 14, proposed 22 adoption of amendment to NJAC 19:45-1.10. 23 Mr. Briliant? 24 MR. BRILIANT: Okay. This proposal was 25 requested by the Division of Gaming Enforcement 39 ITEM NO. 14 1 and would require a closed-circuit television 2 coverage and filming of any transaction 3 conducted at an automated bill breaker, voucher 4 coupon redemption machine, or jackpot payout 5 machine not just during the replenishment or 6 servicing of the machines. 7 The Notice of Proposal was published in 8 the "Register" on June 7th, and we did receive 9 one public comment during the comment period. 10 And, again, for the reasons laid out, we 11 suggested that the comment be rejected and the 12 matter be adopted as is. 13 Thank you. 14 CHAIR KASSEKERT: Thank you. 15 Any questions? 16 COMMISSIONER SOMMELING: Move to adopt 17 without change, Madame Chair. 18 COMMISSIONER EPPS: Second. 19 CHAIR KASSEKERT: The motion has been 20 made and seconded. All in favor? 21 (Ayes.) 22 CHAIR KASSEKERT: Opposed? 23 (No response.) 24 CHAIR KASSEKERT: Motion carries. 25 MR. BRILIANT: Thank you. 40 ITEM NO. 15 1 MR. NANCE: Item No. 15, proposed 2 adoption of amendment to NJAC 19:45-1.10, 3 1.33A, and 1.54. 4 Mr. Briliant? 5 MR. BRILIANT: This proposal was 6 requested by the Casino Association of New 7 Jersey. It would permit a main bank, master 8 coin bank cashier, or count team member to 9 perform certain functions of the supervisor of 10 the casino accounting or slot machine cage 11 department during a bill validator drop. 12 The Notice of Proposal was published in 13 the New Jersey "Register" on June the 7th. 14 We've received one public comment. We 15 suggested that the proposal be adopted as is. 16 And the matter is now before you. 17 CHAIR KASSEKERT: Thank you. 18 Any questions? 19 COMMISSIONER SOMMELING: No questions, 20 Madame Chair. 21 COMMISSIONER EPPS: Move that we adopt 22 without change. 23 VICE CHAIR HARRINGTON: Second. 24 CHAIR KASSEKERT: The motion has been 25 made and seconded. All in favor? 41 ITEM NO. 16 1 (Ayes.) 2 CHAIR KASSEKERT: Opposed? 3 (No response.) 4 CHAIR KASSEKERT: Motion carries. 5 MR. NANCE: Item No. 16, proposed 6 adoption of amendments to NJAC 19:45-1.8 and 7 1.26. 8 Mr. Briliant? 9 MR. BRILIANT: This proposal was 10 informally requested by the Borgata. It would 11 reduce the mandatory retention period for 12 redeemed patron counter checks from five years 13 to six months. 14 The proposal was published in the New 15 Jersey "Register" on June the 7th. We've 16 received one public comment. And, again, we 17 reviewed it, recommended that the Commission 18 adopt without change. 19 CHAIR KASSEKERT: Thank you. 20 Any questions? 21 COMMISSIONER SOMMELING: No questions, 22 Madame Chair. 23 COMMISSIONER EPPS: Move that we adopt 24 without change. 25 COMMISSIONER FANELLE: Second. 42 ITEM NO. 16 1 CHAIR KASSEKERT: The motion has been 2 made and seconded. All in favor? 3 (Ayes.) 4 CHAIR KASSEKERT: Opposed? 5 (No response.) 6 CHAIR KASSEKERT: Motion carries. 7 MR. NANCE: In accordance with 8 Resolution No. 09-12-16-20, the next closed 9 session of the Commission shall be held on 10 Wednesday, September 22nd, 2010, at 9:15 a.m. 11 in the Commission offices. 12 It is now time for the public 13 participation portion of the meeting. 14 CHAIR KASSEKERT: Is there anybody from 15 the public that wishes to be heard? 16 (No response.) 17 CHAIR KASSEKERT: Seeing no one, I'll 18 declare this portion of the meeting closed and 19 entertain a motion to adjourn. 20 COMMISSIONER SOMMELING: Motion to 21 adjourn. 22 CHAIR KASSEKERT: Is there a second? 23 COMMISSIONER FANELLE: Second. 24 CHAIR KASSEKERT: The motion has been 25 made and seconded. All in favor? 43 1 (Ayes.) 2 CHAIR KASSEKERT: Opposed? 3 (No response.) 4 CHAIR KASSEKERT: Motion carries. 5 Thank you. 6 (Public Meeting 10-09-08 was adjourned 7 at 11:05 a.m.) 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 44 1 2 C E R T I F I C A T E 3 4 5 I, DARLENE SILLITOE, a Certified Court 6 Reporter and Notary Public of the State of New 7 Jersey, certify that the foregoing is a true 8 and accurate transcript of the proceedings. 9 10 11 I further certify that I am neither 12 attorney, of counsel for, nor related to or 13 employed by any of the parties to the action; 14 further that I am not a relative or employee of 15 any attorney or counsel employed in this case; 16 nor am I financially interested in the action. 17 18 19 DARLENE SILLITOE CCR 20 License No XI01023 21 22 Dated: September 12, 2010 23 My Notary Commission Expires July 22, 2014 24 ID No 2062871 25