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Joint Petition of Boardwalk Regency Corporation v. New Jersey Casino Control Commission6/21/2002
We begin with the proposition that the State has a strong interest in "promoting scrupulous conduct by casino industry and regulatory officials." Greenberg v. Kimmelman, 99 N.J. 552, 560 (1985). Regulatory provisions of the Act are "designed to extend strict State regulation to all persons, locations, practices and associations related to the operation of licensed casino enterprises . . . . N.J.S.A. 5:12-1b(6). "Because of the need for integrity, public confidence and trust," all persons with criminal backgrounds and associations, or persons "'deficient in business probity'" are to be excluded or removed from any positions of authority or responsibility within casino gaming operations. Knight v. Margate, 86 N.J. 374, 381-82 (1981) (quoting N.J.S.A. 5:12-1b(7)). "' ublic confidence and trust in the credibility and integrity of the regulatory process and of casino operations'" are integral and essential elements of the casino regulations. Ibid. As Justice Handler, speaking for the Knight Court, said:
As expressed in the Casino Control Act, which implements the Constitution's gambling clause, it is the pronounced policy of this State to regulate and control the casino industry with the utmost strictness to the end that public confidence and trust in the honesty and integrity of the State's regulatory machinery can be sustained.
[86 N.J. at 392.] And as the Greenberg Court explained, a casino's vulnerability to organized crime magnifies the importance of maintaining public trust in the integrity of the regulatory and judicial processes. A public perception that any improper influence has infiltrated those processes, however slightly, would undermine the trust that is essential to continued confidence in the industry and, what is more important, in state government.
[99 N.J. at 574.] To help ensure the integrity of the industry as well as the public's trust and confidence, the Commission has broad regulatory authority. N.J.S.A. 5:12-64. It must assure that an unqualified person has no "material involvement, directly or indirectly, with the licensed casino operation . . . ." Ibid. The Commission may exercise "any proper power or authority necessary to perform the duties assigned to it by law, and no specific enumeration of powers in this act shall be read to limit the authority of the commission to administer this act." N.J.S.A. 5:12-75.
In this regulatory context, we agree with the State's position that N.J.S.A. 5:12-104b provides the Commission with the authority to review the severance agreement. It is manifestly clear that an agreement between a casino and its president directly relates to the "business of a proposed or existing casino hotel." What could be more fundamental to the preservation of public confidence in the industry than permitting the Commission to review a casino's employment agreement with its chief operating officer.
The facts in this case illustrate the need for regulatory oversight of agreements between casinos and their employees. Here, at the time the Commission acted upon the request for review and approval of the severance agreement, DiBartolomeo was no longer licensed. In fact he was disqualified and prohibited from being employed by a casino licensee. See N.J.S.A. 5:12-106c. The Division had performed an exhaustive investigation that recommended revocation of DiBartolomeo's license. The Commission found DiBartolomeo unqualified, having failed to establish his good character, honesty, integrity and financial responsibility. By order of February 28, 2001, DiBartolomeo was precluded from applying for or holding a casino license, and was prohibited from being employed by a casino licensee. The proposed severance agreement would have p
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