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12 N.J.A.R. 48

Bershad Company, Edward, t/a Penn Vending Company, The Application of, for a Casino Service Industry License
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Citation: 12 N.J.A.R. 48
Decision Date: 1989
Synopsis: Applicant sought to be licensed by the Casino Control Com- mission as a casino service industry in order to provide non-gaming services to casinos. The Division of Gaming Enforcement objected to licensure because the Betshad Company had been involved in paying protection money to Philadelphia police officers in a shakedown scheme that resulted in the Federal conviction of the police officers. Applicant requested a hearing and the matter was transmitted to the Office of Administrative Law. The administrative law judge assigned to the case filed an initial decision concluding that the application should be granted. Upon review, the Commission rejected this initial decision and denied the application. The administrative law judge concluded that the actions of the Betshad Company constituted bribery, an offense that is a statutory disqualifier under N.J.S.A. 5:12-86c and -86g, and that the rehabili- tation provisions of sections 90h and 91d of the Casino Control Act did not apply to applicants for non-gaming casino service industry licenses. However, the administrative law judge further concluded that the Commission has discretion under N.J.S.A. 5:12-92d to determine whether, considering the disqualifying conduct and all other factors, the application should be granted. N.J.S.A. 5:12-92d uses the per- missive 'may be denied,' while the sections relating to licensure of gaming-related casino service industries provide that the license 'shall' be denied if the applicant is disqualified pursuant to section 86. In this case, the administrative law judge determined that the application for a casino service industry license should be granted because the applicant had established its good character, honesty and integrity. The Commission agreed that, while section 92 does not expressly State of New Jersey 49 Application of Bershad Compafiy make the rehabilitation factors listed in sections 90h and 91d available for applications for casino service industry licenses, section 92d gives it discretion to consider disqualifying conduct as a factor bearing on fitness for licensure as a non-gaming casino service industry. However, the Commission concluded that, as a guide to the sound exercise of that discretion, it is entirely reasonable and proper to refer to the eight factors listed in sections 90h and 91d. Applying those factors, the Commission concluded that the applicant was disqualified by reason of its participation in the shakedown scheme. Mark H. Sandson, Esq., for the petitioner Edward Bershad Company, t/a Penn Vending Company (Hankin, Sandson & Sandman, at- torneys) Richard Morrissey, Deputy Attorney General, for the respondents (W. Cary Edwards, Attorney General of New Jersey, attorney)
Rule(s) Cited: 19:43-1.3(e) 
Statute(s) Cited: 5:12-86c 5:12-86g 5:12-89d 5:12-90h 5:12-91d 5:12-92b 5:12-92c 5:12-92d