Division of Gaming Enforcement
David Samson, Attorney General
Thomas Auriemma, Acting Director

FOR IMMEDIATE RELEASE:
October 24, 2002

FOR FURTHER INFORMATION CONTACT:
Kerry Hand (609) 441-2533, cell# (609) 231-9692

Division of Gaming Enforcement Celebrates 25th Anniversary

TRENTON - On Friday night, October 25, 2002, past and present employees of the New Jersey Division of Gaming Enforcement (DGE) will gather for a 25th Anniversary celebration at the new Trenton Marriott Hotel. The event marks the Division’s first 25 years of successful casino regulation.

DGE was established in 1977 under the Casino Control Act to assure the integrity of the casino industry in the State of New Jersey. Its mission is to protect the public interest by maintaining a legitimate and viable industry free from the influences of organized crime and to assure the honesty, good character and integrity of the casino owners, operators, employees and vendors.

Under the supervision of the Attorney General, DGE is the division of the Department of Law and Public Safety responsible for investigating applicants seeking casino licenses, casino employee licenses and vendor licenses for companies to do business with casinos. Additionally, DGE reviews and audits casino operations and investigates and prosecutes all violations of the Casino Control Act. Criminal offenses that occur within the casino are investigated and prosecuted with the assistance of the Division of Criminal Justice's Casino Prosecutions Bureau and the Division of State Police's Casino Gaming Unit. DGE has a total staff of approximately 360 people.

Over the past 25 years, DGE has established itself as one of the most highly respected casino regulatory agencies in the world. Other gaming jurisdictions worldwide routinely look to New Jersey as a regulatory model and DGE representatives frequently serve in leadership roles for the International Association of Gaming Regulators (IAGR). Former Director J.P Suarez served a term as IAGR president, and current Acting Director, Thomas N. Auriemma, has served several terms as IAGR secretary.

Some of the significant issues DGE has addressed over the past 25 years include:

• 1979 - Caesars opened without its chairman and vice- chairman, Clifford and Stuart Perlman, who were investigated by DGE and found to have business dealings with alleged organized crime figures. The Casino Control Commission ultimately ordered the Perlmans to sever their business relationship with Caesars.

• 1982-1986 - State and federal litigation, including a case in the United States Supreme Court, is pursued to a successful conclusion disqualifying and removing several officials of a large casino industry union, Hotel and Restaurant Employees and Bartenders International Union Local 54, because of organized crime influence and associations.

• 1982 - Playboy casino is denied a gaming license and the casino is bought by Las Vegas based Elsinore, which reopens the casino as the Atlantis.

• 1987 - Following a contentious relicensure hearing, Stephen Wynn sells the Golden Nugget to Bally’s, which operates it as Bally’s Grand.

• 1990 - Trump Taj Mahal opens as Atlantic City’s largest casino. This turns out to be the last new casino project to open in Atlantic City.

• 1995 - With input from DGE, the Casino Control Act undergoes a thorough revision to make New Jersey’s casino industry more attractive for casino investment and development. Several companies and individuals indicate interest.

• 2000 - Caesars president, Gary DiBartolomeo, loses his casino key employee license after a six-day hearing before the Casino Control Commission that revealed that DiBartolomeo had lied to investigators regarding his violation of a previous CCC imposed gambling prohibition as well as some questionable financial transactions. The case brought the issues of problem gambling and casino employee gambling to the limelight.

• 2001 - DGE files civil actions against ten internet gambling operations seeking to prevent them from conducting transactions with New Jersey residents.

• 2002 - International accounting firm Arthur Andersen is precluded from providing outside auditing services for the Atlantic City casinos after the firm is federally indicted for shredding evidence in the Enron case.

Currently, DGE is actively participating in the preliminary regulatory activities necessary to ensure the smooth, successful opening of the much anticipated Borgata, a new casino resort under construction in the Marina district of Atlantic City, scheduled to commence operations in the summer of 2003. This will be the first opening of a new casino in Atlantic City since the Trump Taj Mahal opened its doors in 1990. Several other casinos are in the process of expanding and adding hotel room towers that will greatly increase the availability of rooms in Atlantic City over the next few years.

DGE Acting Director Thomas N. Auriemma notes, “This is a very exciting time for our agency. All of this activity creates many great opportunities for the casino industry and Atlantic City. It also poses many challenges for us as regulators and we welcome them.”

New Jersey State Attorney General, David Samson, has commended DGE for its successful work over the past 25 years and states “DGE’s efforts have helped maintain public confidence in what was once a suspect business. Holding the casinos to the highest levels of integrity, while at the same time constantly seeking to streamline the regulatory process, has enabled the Atlantic City casino industry to thrive.”

The Atlantic City casinos employ over 45,000 people. In 2001, casino win totaled more than 4.3 billion dollars. The State of New Jersey receives 8% of casino win every year for the Casino Revenue Fund, which provides funding for numerous state programs such as the Pharmaceutical Assistance for the Aged and Disabled Program (PAAD) as well as transportation and education programs.

For additional information regarding DGE and the 25th anniversary celebration, please see the DGE web site at www.njdge.org.

 

 

 

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