State ofLouisiana KA THLEEN BABINEA UX BLANCO Gaming Control Board H. CHARLES GAUDIN

GOVERNOR CHAIRMAN

IN RE: HARRAH'S STAR PARTNERSHIP D/B/A HARRAH'S STAR

NO. CGD050479

ORDER

This matter was considered by the Louisiana Gaming Control Board at its meeting ofMay 16,

2006. The Hearing Officer's order dated April 19, 2006, based on the "Joint Motion for Approval of

Compromise and Settlement Agreement" in the matter of the "Notice ofViolation and Penalty and

Written Warning," Violation No. CGD050479, by and between Harrah's Star Partnership d/b/a

Harrah's Star, License No. R011000801, and the State of Louisiana, Department of Public Safety

and Corrections, Office of State Police, which is attached hereto and incorporated herein, is

APPROVED.

THUS DONE AND SIGNED on this the ~ day of May, 2006.

BY:

• > CONiROl BOAHO l U\S \ ~NA G~.M~~G1HA1 ~ Cf.Rl\f\£.D IHERHlY CER1 ~'~l~R~~ 01'1

COPl' H BE.EN III OA'{I

ALL pp.'"' IES 1HIS ,~

OF l OOCI\E1'fl~ .~~~

9100 Bluebonnet Centre, Suite 500, Baton Rouge, LA 70809 Phone: (225) 295-8450 Fax: (225) 295-8479

..

RECEIVED APR 1 9 2006

STATE OF LOUISIANA lGCB LOUISIANA GAMING CONTROL BOARD ~!)MINISTRAT'VE HEARING OFFICE ADMINlS'I'RATIft HEARINGOmCE

IN RE: IIARRAB'S STAR PARTNERSHIP dlb/ll CGDOS0479 IIARRAB'S STAR

JOINT MonON FOR APPROVAL OF COMPROMISE AND SBTtLEMENT AGREEMENT

TO THE HONORABLE ADMINI8TRATIVB HEARING OFFICER:

COME NOW State of Louisiana, Department of Publio Safety and Co

Office of State Police (lithe Division'') and Harrah's Star PartilClISbip d/b/a Harrah's Star

(hereinafter "Harrah's"), who file thia Joint Motion for Approval of Compromise and

Settlement Agreement. and in support theI'eof'would respectively show unto tho Hearing

Officer as follows:

1,

The Division and Ha:rmhts are desirous of compromising and settling all disputes

between them relative to the referenced administrative proceeding. In connection

therewith, the parties have entered into a compromiseand settlement agreement which by

its terms will become effective upon approval by the Administrative Hearing Office and

the Louisiana Gaming Control Board.

2.

A true and correct copy of the proposed Compromiseand Settlement Agreement

is attached hereto as Exhibit "A" andincorporated by referencefor all purpcsee,

,,'

wm:.:auoR& PREMISES CONSID~. The Division and Harrab~s

respectfDJly request that tbiI Honorable AdministraUYe Hearini Officer approve the

partiOl' compromise and Sr:ttlement Agreement.

Rcspcctfully Su~

(;IIARLES C ron, JR. ATI'ORNEYGENERAL

By:_....::....~ _ ~y~ ~~__f.!:=::~-..:.~ra~ P. KeviD 'Colomb, GeneralCouu.seJ Christ her B. Hebert, #Z90~4

Bill" # 01778 , . Assistant Attomcy General Harrah's LouiSiana'Properties 1885 North Third Street. 5tbFloor 365 Canal Street, Suite 900 BatonRouge, Louisima 70802 New 0rleaQS, LA 70130 Telephone: (225) 326-6S00 Telephone: (504) 533-6036 Facsimile: (225) 326-6599 Facsimile: 504) 533-6107 'ColllUr1/ or (}ffla ofStaJe Polia R~fU1'HJu:ra/I" Star

I

STATE OF'LOUISIANA LOUffiUNAG~GCOmROLBOARD ADMINISTRATIVE HEARING OFll1C1t

IN RE: IIARRAH'S STAR PARTNERSHIP dlb/aJ CGDO!0479

HARRAH'S STAR

COMPROMJSK AND SETrLJtMJtNr AGREEMENT

The State of Louisiana. Department of Publio Safety and Corrections, Office of State

Police (hereinafter "the Division") and Harrah's Star Partnership d/b/a Harrah's Star (hereinafter

"Harrah's") do hereby represent and agree 88 follows:

WHEREAS, tho Division has issued a Notice of Violation and Penalty and Written

Warning to Harrah's alleging certain violations ofLouisima Gaming Control Law; and

WBEREAS, the issues raised by the said Notice of Violation and Penalty and Written

Warning arc set for hearing on April 19, 2006, before the Louisiana Gaming Control Board

Administrative Hearing Office; and

WHEREAS, the Division and Harrah's are desirous of fully and finally compromising

and settling all issues and disputes arising out of and in connection with the said Notice of

Violation and Penalty and Written Warning;

NOW, THEREFORE. in consideration of the foregoing, the parties hereto do hereby

agree and stipulate as follows:

STIPULATIONS

1. In early 2005, the Office of State Police held a meeting. which a representativeof

Harrah's Star attended, regarding poker tournaments. During this meeting. the Office of State

Police explained that drawings arc allowed in tournaments under two conditions: 1) If the

toumament does not contain an entry fee, a drawing may be held in conjunction with the

tournament for toumamentpamcipantl only; and 2) If tho tournament does containan entryfee,

I drawing may only be held if the dnwiq f' OpClll to nery patron in the cstabliabment, with

entry ballots placed conspicuously andeasilylCCCS8loIo to anyone wishingto enter the drawing.

2. In August 2005 tho Office of State Police received information that Harrah's Star

was holding drawinp after every World Series of Poker Tournament Tho drawings were

exclusively limited to tho World Series o!Poker Tournament playors.

3. The tournament rules approved by the Office of StatePolice for tho World Series

of Poker Tournaments did not authorize drawings becauso tho drawings required an entry feo in

the fODD of tho fee paid to participate in the World SeriesofPoker Tournaments. Harrah's Star

confirmed that it held unauthorized drawings from September I, 2004, through August S, 200S.

4. On February 7, 2006, the Division issued a Notice of Violation and Penalty and

Written Warning to Hmah's alleging certain violations ofLouisiana Gaming Control Law.

5. Harrah's docs admit it violated LAC 42:XIII.271S(A) and LAC 42:XID.29S3(E).

TERMS AND CONDmONS

1. Harrah's will pay a civil penalty of SEVEN TIlOUSAND FIVE HUNDRED

DOILARS ($7,500.00).

2. The Division hereby agrees to accept HlUTah's payment of tho above stated

penalty in full and final settlement of tho violations admitted to in CGD 050479.

3. The Division reserves the right to take into coDBidcration these admitted

violations in connection with any future investigation, violation or assessment ofpCIJa1ty.

4. The terms of this Compromise and Settlemczrt Agreement shall be interpreted

under the laws of the State of Louisiana,

5. This Compromise and Settlement Agreement constitutes tho ennre agreement

between the Division and Harrah's pertaining to the subject matter contained herein and

supersedes all prior and contemporaneous agrcementa., representations and undcrstaudingl of the

parties.

6. Thi, Compromise and Settlement Agreemcot is subject to approval by tho

Hearing Officer and the Louisiana Gaming Control Board. It is oxpressly understood that if this

proposedsettlement is approved by the Hearing Officer, this agreement is not thereby executory,

but will be submitted to the Louisiana Gaming Control Board for its determination as to whether

to approvesame or to remand the matter to tho Hearing Officer for a fullhearing on themerits.

I have read this entire Compromise SettlementAgreementand agree to all stipulations and terms and conditions hereof.

P. Kevin Colomb, General Counsel OD behall of

-"Slllr~ ~~ ~... B. H rt, AAG.BbeJlldlol

State of LOlltslaua Department of Public Salety & CorrectioDs, Omce of State PoUce

) ~. . "

STATE or LOUISIANA LOtJISlANA GAMING CONfROL BOARD ADMINISTRATIV& BEAlUNG orncr.

IN RE: HAllRAB'S STAll rARTNERSHIP dlb/l1 CGD050479 HAllRAB'S STAR

ORDER

BE IT REMEMBERED that on this tho~day of April. 2006. came on

for consideration the Joint Motion for Approval of Compromise and Settlement

Agreement, and the parties having appeared by and through their respective attorneys of

record, and the Hearing Officer having considered tho pleadings on file, the proposed

Settlement Agreement, and the said Motion. and it appearing to the Hearing Officer that

the said Compromiseand SettlementAgreement shouldbe approved; it is. therefore,

ORDERED, ADJUDGED, AND DECREED that the Compromise and

Settlement Agreement attached to the parties' Joint Motion for Approval of Compromise

and Settlement Agreement be, and the same is hereby. APPROVED.

SIGNED AND ENTERED this ~ day of April. 2006, in Baton Rouge.

Louisiana.

0/1­~IAMH. BRO-WN---------lOUlSIA~A GAIVINa CCmOlBOARD

I H£REBY CERTIFY THAT ACERTIFIED HEARING OFFICER ., ;Ollr ~AS BEEN MAIlED.?, SERVED ON /. PI" E S ~ . ,QAYI

_ ",} ..Jt-:ooIii!;i.-;~~ ATRUE COPY ATTEST

'.;~ ;\ : ('LERK, INISTRATIVE ING Office LOIJlSIANA GAMING CONTROL BOARD Ct'· QI ~:f\.- ~bb HEARIN~E

~~TON ROUGE, lAIC!(XQ.~\t\y\S~ ~~!" ~ ~Q\~ ~\U\. -1JLSQg~

BY: CLERK