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Bill Gates and Ballmer Have Top Secret Clearance from U.S. Defense Department

Microsoft Corp. Chairman Bill Gates and Chief Executive Ballmer were exempted from filing disclosure forms because they already have top secret clearance from U.S. Defense Department, said New Jersey casino regulators officials on Wednesday.

Some members of the board at Microsoft had to file the forms as part of the company's application for a non-gaming casino service license. Companies that do a certain amount of business with New Jersey casinos are required to have such licenses, which include background checks of keys executives.

After getting contracts with Borgata Hotel Casino & Spa, Microsoft triggered the licensing requirement, said Patrick J. McAuley, a lawyer for Microsoft. The work is for consulting on networks and other matters.

The threshold had been $75,000 in business at the time; it is now $150,000.

Commission spokesman Daniel Heneghan said, the Defense Department already made an extensive review of the personal and financial backgrounds followed for Gates and Ballmer. The Casino Control Commission voted 5-0 in Atlantic City to grant the waivers, which were not opposed by the state Division of Gaming Enforcement.

The New Jersey Casino Control Commission is the panel charged with regulating New Jersey's casinos. It is made up of five members who are appointed by the Governor and confirmed by the State Senate. The Casino Control Commission's task of regulating casinos is shared with the New Jersey Division of Gaming Enforcement.

Heneghan added the commission has taken a similar approach with an IBM application. In other matters, the commission issued fines totaling $323,000 against two casinos.

Henegan also said, the bulk was $185,000 against Caesars Atlantic City Hotel Casino, which last year agreed to pay that amount to settle charges that four of its workers ogled women using surveillance cameras that monitor the gaming floor. A ruling on any sanctions for the workers is pending.

Pressed by law, surveillance cameras are required to deter and prosecute theft, cheating and other crimes in the casino. Typically, they are in ceilings and camouflaged by dark glass. Heneghan said the offer fines were against Resorts Atlantic City.

A $103,000 fine were agreed by the casino to fine for using a secretary as an unqualified substitute for surveillance personnel, failing to have the minimum number of surveillance operators in the room at all times, failing to have a supervisor there at all times and failing to maintain accurate surveillance logs, he said.

The commission issued a three-month suspension of the key employee license of surveillance director Heather Allen, who has left Resorts, Heneghan said.

Resorts also agreed to a $35,000 fine for having a barred subcontractor, Highgate Steel, work on its hotel tower and filing false report to hide that Highgate was on the job, he said.