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11 N.J.A.R. 433

GNOC, Corp. t/a Golden Nugget, for Renewal of a Casino License and of Atlandia Design and Furnishings, Inc. for Renewal of a Casino Service Industry License; In the Matter of the Applications of
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Citation: 11 N.J.A.R. 433
Decision Date: 1986
Agency: CASINO CONTROL COMMISSION
Synopsis: GNOC, Corp. applied to the Casino Control Commission for a renewal of its casino license and Atlandia Design and Furnishings, Inc. applied for a renewal of its casino service industry license. The Commission conducted a hearing and determined to renew the licenses, subject to certain conditions. An issue in the hearing was the hiring of Mel Harris as an executive of Golden Nugget. Although Harris was not known to be associated with organized crime, both his late father and his former father-in-law had such ties. Harris advised Golden Nugget that he met with organized crime figures after his father's death, but that the meetings were social. As a result of this disclosure, Golden Nugget discontinued its sponsorship of Harris. Harris withdrew his application and resigned from all positions with Golden Nugget. Additional evidence presented during the hearing indicated that Harris' relationship with organized crime figures may have been more extensive than he had disclosed. The Commission also questioned the relationship between Golden Nugget and other individuals in addition to Harris, but found that those relationships did not preclude relicensure. Although the Commission ultimately found that the applicants met the statutory requirements for relicensure, it imposed several conditions recommended by the Division of Gaming Enforcement. The conditions included (1) establishing an audit committee composed of at least three outside and independent directors; (2) requiring written background reports on proposed new officers or directors, and (3) prohibiting Golden Nugget from engaging in business transactions with Mel Harris and two other individuals. Separate concurring opinions were issued by Commissioners Armstrong, Zeitz and Burdge.
Statute(s) Cited: 5:12-71(d)