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A Brief History of the Casino Control Commission

When the Casino Control Commission was created in 1977, it checked into the Inn of Trenton and set up shop in two rooms. It was a humble beginning for an agency that would grow to regulate a multi-billion dollar industry.
Gov. Byrne named Essex County Prosecutor Joseph P. Lordi to head the agency. He was joined by part-time commissioners Kenneth MacDonald, a Haddonfield car dealer; Red Bank attorney Prospero DeBona; Albert W. Merck of Mendham, a scion of the family that created Merck Pharmaceuticals; and Alice B. Corsey who had been active in various charitable and government positions in Deptford Township.

A Humble Beginning

Their first task was to set up the office and decide how to structure an agency to regulate an industry that was brand new to the state. To help do that, Lordi brought with him two attorneys who were officially hired at the Commission’s first meeting – R. Benjamin Cohen, who became the first general counsel, and Joseph A. Fusco, who became the special counsel for licensing.
Lordi had already retained Cathy Hoffman, who initially was the entire clerical support staff for the Commission. In addition, a third-year law school student named Scott Silver showed up at the offices and volunteered to work. He received credit toward his degree for the work and it earned him a full-time slot on the staff when he finished school.
By the time the Commission got started, work was well underway to renovate the old Chalfonte-Haddon Hall to convert it to Resorts International Hotel Casino and pressure was mounting to get the first casino licensed and open. It was quickly apparent that the building would be finished long before an investigation would be completed and a licensing hearing held. That led the Legislature to amend the Casino Control Act and give the Commission the authority to issue a temporary permit.
For months, the Commission worked feverishly to develop regulations, systems, and controls prior to the opening of Resorts on May 26, 1978. Meetings were often marathon sessions. As the staff grew, the Commission checked out of the hotel and into several temporary offices along West State Street in Trenton. The plumbing didn’t always work and neither did the heat. Lordi held meetings in his office with corporate executives and everyone had to keep on their winter coats and gloves.
In Atlantic City, the Commission found the Arcade Building early on and moved into an office that had been the Miss America Pageant’s headquarters. Since it had a meeting room, all of the Commission’s meetings were soon being held in Atlantic City. It was there, in late 1978 and early 1979, that the Commission held its first full license hearing for Resorts – a hearing that lasted six weeks and ended just as the casino’s temporary permit was about to expire.

The First Wave / A Modern “Gold Rush”

Those were heady days. By 1979, there were close to 50 casino proposals being touted and every meeting was packed with would-be casino workers pleading to know when they would be licensed. It was a pace that continued unabated for the first three years with the opening of Resorts, Caesars and Bally’s.
As each commissioner’s term expired, Gov. Byrne failed to nominate any replacements. As a result, commissioners remained as holdovers for years.
While the pace of development continued to surge ahead, the Commission was stunned in 1980 by the Abscam investigation which led to the resignation of one commissioner. The legislature acted swiftly to reestablish public confidence by reconstituting the Commission with five full-time members. Chairman Lordi maintained his position and was joined by Martin Danziger, Madeline McWhinney, Don Thomas and Carl Zeitz.
Danzinger, the heir apparent to Lordi, was a Washington attorney who had been with the Immigration and Naturalization Service and previously with the Manhattan District Attorney’s Office. McWhinney spent 30 years with the Federal Reserve Bank of New York before becoming president of the First Women’s Bank. Thomas had been an official with the National Urban League and Zeitz was a newspaper reporter for the Bergen Record.
As soon as the new, full-time Commission was sworn into office it immediately started four months of continuous licensing hearings for Caesars and Bally’s – cases in which the Commission found executives unsuitable and required their removal if the companies wanted to be licensed. When the legislature amended the Casino Control Act, members made it clear that they felt casinos should come to Trenton to get a license. But the Commission had neither permanent office space in Trenton nor a hearing room in its “temporary” quarters. As a result, the hearings were held in an auditorium of the Thomas Edison College on West State Street.
Shortly after those hearings, the Commission finally found “permanent” office space in Lawrenceville, just outside of Trenton. Lordi barely had a chance to settle into his new office before he retired in June 1981. With his departure, vice chair Danziger took over as acting chairman for the rest of the year. Joel Jacobson, the former head of the state’s Department of Energy was named to fill Lordi’s seat at the end of 1981, but outgoing Gov. Byrne decided not to designate a chairman. Commissioner Thomas then served as acting chair for most of 1982.
Through all of that, the Commission kept up its hectic pace of opening and licensing casinos. Between the time the new full-time Commission started in late August of 1980 and November of 1982, four new casinos opened and the Commission held five plenary licensing hearings. It also agreed to reserve a license for Donald Trump for what became Trump Plaza Hotel Casino.
In between casino license hearings, the Commission also held an extraordinary hearing that examined Local 54 of the Hotel Employees and Restaurant Employees Union. The Commission voted to revoke the union’s registration unless three officials were removed from office. The union had earlier challenged the Commission’s ability to require it to register with the regulators, but the Commission’s authority was upheld all the way to the U.S. Supreme Court.
In 1982, the Commission held licensing hearings for Playboy Enterprises and concluded that its founder and chairman, Hugh Hefner, was unqualified. Playboy had a choice of keeping its casino or keeping its chairman. Hefner unsuccessfully appealed and in 1984 the company finally sold its interest in the casino, which then became Elsinore’s Atlantis Casino Hotel.
Danzinger and McWhinney decided to leave the Commission in the fall of 1982 and they were replaced by Cinnaminson attorney Walter N. Read, who became the Commission’s second chairman, and E. Kenneth Burdge, then the Ocean County Clerk and acting county administrator.
Under the new chairman, the commissioners continued to maintain the Commission’s strict integrity standards. That commitment could be seen when it fined Caesars $257,000 in 1983 for a variety of offenses, including interfering with Commission inspectors. But the Commission also showed its commitment to the redevelopment of Atlantic City with the completion of the American City Corp. plan that outlined a redevelopment proposal for the city’s Inlet section.

The Second Wave

Public dissatisfaction over the slow pace of the redevelopment led to a major change in 1984 when the Legislature created the Casino Reinvestment Development Authority (“CRDA”). Chairman Read said that the creation of that authority “culminated a long struggle to provide a mechanism to funnel casino revenues into a program that will ultimately restore Atlantic City to its former prominence as a tourist

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