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11 N.J.A.R. 382

Elsinore Shore Assocs., In the Matter of the Application of, for a Renewal of its Casino License
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Citation: 11 N.J.A.R. 382
Decision Date: 1986
Agency: CASINO CONTROL COMMISSION
Synopsis: Elsinore Shore Associates ('ESA') applied to the Casino Control Commission seeking rerieWal ' of its casino license. The Commission conducted a hearing and determined to renew the license, subject'to several conditions. A major issue was the fact that ESA had sought protection under Chapter 11 of the Federal Bankruptcy Code. The Commission had never before conducted a license renewal hearing involving a casino licensee which had filed a bankruptcy petition. Section 84(a) of the Casino Control Act requires a casino licensee to establish its financial stability, integrity and responsibility. A licensee must also demonstrate adequate financial resources and sufficient business ability. The Commission noted that the mere filing for relief in bankruptcy does not mean that an applicant lacks financial stability. The Commission concluded that ESA met the statutory requirements for financial stability, dspite the bankruptcy petition. Since ESA also satisfied all other statutory criteria, the Commission conditionally renewed ESA's license. Among other conditions, the Commission required ESA to maintain certain cash balances and to submit regular financial reports. Commissioners Armstrong, Zeitz and Burdge issued separate opinions. Commissioners Armstrong and Zeitz concurred, emphasizing that a finding .of financial stability when an applicant has filed for,bankruptcy c,an only be. based on specific facts and evidence in a particular case. Commissioner Burdge dissented, cdncluding that the events leading up to ESA's bankruptcy indicated that the licensee lacked financial stability.
Statute(s) Cited: 5:12-1(b) 5:12-84 5:12-88