Click here for Adobe Acrobat version
Click here for Microsoft Word version
********************************************************
NOTICE
********************************************************
This document was converted from Microsoft Word.
Content from the original version of the document such as
headers, footers, footnotes, endnotes, graphics, and page numbers
will not show up in this text version.
All text attributes such as bold, italic, underlining, etc. from the
original document will not show up in this text version.
Features of the original document layout such as
columns, tables, line and letter spacing, pagination, and margins
will not be preserved in the text version.
If you need the complete document, download the
Microsoft Word or Adobe Acrobat version.
*****************************************************************
Before the
Federal Communications Commission
Washington, D.C. 20554
)
)
) File No. EB-05-SE-236
In the Matter of
) NAL/Acct. No. 200732100038
SCIENTIFIC GAMES RACING, LLC
) FRN: 0013281324
)
)
ORDER
Adopted: June 29, 2007 Released: July 3, 2007
By the Chief, Enforcement Bureau
1. In this Order, we adopt the attached Consent Decree entered into
between the Enforcement Bureau ("Bureau") of the Federal
Communications Commission ("FCC" or "Commission") and Scientific Games
Racing, LLC ("Scientific Games"). The Consent Decree terminates the
Bureau's investigation into whether Scientific Games operated
satellite earth stations without Commission authorization in violation
of Section 301 of the Communications Act of 1934, as amended ("Act"),
and Section 25.102(a) of the Commission's Rules ("Rules"), and engaged
in unauthorized assignments of satellite earth stations in violation
of Section 310(d) of the Act and Section 25.119 of the Rules.
2. The Bureau and Scientific Games have negotiated the terms of the
Consent Decree that would resolve this matter and terminate the
investigation. A copy of the Consent Decree is attached hereto and
incorporated by reference.
3. In the absence of new material evidence relating to this matter, we
conclude that no substantial or material questions of fact exist with
respect to this matter as to whether Scientific Games possesses the
basic qualifications, including those related to character, to hold or
obtain any FCC license or authorization.
4. After reviewing the terms of the Consent Decree, we find that the
public interest would be served by adopting the Consent Decree and
terminating the investigation.
5. Accordingly, IT IS ORDERED that, pursuant to Section 4(i) of the Act
and the authority delegated by Sections 0.111 and 0.311 of the
Commission's rules, the attached Consent Decree IS ADOPTED.
6. IT IS FURTHER ORDERED that the above-captioned investigatory
proceeding IS TERMINATED.
7. IT IS FURTHER ORDERED that Scientific Games shall make its voluntary
contribution to the United States Treasury, as specified in the
Consent Decree, by credit card through the Commission's Debt and
Credit Management Center at (202) 418-1995, or by mailing a check or
similar instrument, payable to the order of the Federal Communications
Commission, to the Federal Communications Commission, P.O. Box 358340,
Pittsburgh, PA 15251-8340. Payment by overnight mail may be sent to
Mellon Bank/LB 358340, 500 Ross Street, Room 1540670, Pittsburgh, PA
15251. Payment by wire transfer may be made to ABA Number 043000261,
receiving bank Mellon Bank, and account number 911-6106.
8. IT IS FURTHER ORDERED that copies of this Order shall be sent by
regular first class mail and certified mail - return receipt
requested, to Ira Raphaelson, Scientific Games Racing, LLC, 750
Lexington Avenue, 25th Floor, New York, NY 10022, and to its counsel,
Robert Pettit, Esq. and Jennifer Hinden, Esq., Wiley Rein LLP, 1776 K.
St., NW, Washington, D.C., 20006.
FEDERAL COMMUNICATIONS COMMISSION
Kris Anne Monteith
Chief, Enforcement Bureau
CONSENT DECREE
I. INTRODUCTION
1. The Enforcement Bureau ("Bureau") of the Federal Communications
Commission, and Scientific Games Racing, LLC ("Scientific Games"), by
their respective authorized representatives, hereby enter into this
Consent Decree for the purpose of terminating the Bureau's
investigation into whether Scientific Games operated satellite earth
stations without Commission authorization in violation of Section 301
of the Communications Act of 1934, as amended ("Act"), and Section
25.102(a) of the Commission's Rules ("Rules"), and engaged in
unauthorized assignments of satellite earth stations in violation of
Section 310(d) of the Act and Section 25.119 of the Rules.
II. DEFINITIONS
2. For the purposes of this Consent Decree, the following definitions
apply:
a. "Act" means the Communications Act of 1934, as amended, 47 U.S.C. S:S:
151 et seq.;
b. "Adopting Order" or "Order" means an order of the Enforcement Bureau
adopting this Consent Decree;
c. "Bureau" means the Enforcement Bureau of the Federal Communications
Commission;
d. "Commission" or "FCC" means the Federal Communications Commission;
e. "Effective Date" means the date on which the Bureau releases the
Adopting Order;
f. "Investigation" means the investigation commenced by the Bureau's
March 9, 2006 Letter of Inquiry to Scientific Games;
g. "Parties" means Scientific Games and the Bureau; and
h. "Rules" means the Commission's regulations set forth in Title 47 of
the Code of Federal Regulations.
i. "Scientific Games" means Scientific Games Racing, LLC and its parent,
subsidiaries, divisions and affiliates, and each of their respective
officers, directors, employees, agents, representatives, or any other
person acting or purporting to act on behalf of Scientific Games or
their successors or assigns;
III. BACKGROUND
3. Between April 2005 and June 2006, Scientific Games acquired sixteen
(16) new satellite earth stations and operated these earth stations on
a temporary-fixed basis at various times and locations without
authorization from the Commission. Scientific Games also operated
twenty-five (25) earth stations acquired through two unauthorized pro
forma license assignments associated with intra-company
reorganizations in 1999 and 2004. Scientific Games also operated two
(2) earth stations acquired from Advanced Satellite Communications,
Inc. in November 2002 without Commission authorization to assign the
licenses.
4. Scientific Games subsequently obtained licenses for all of the new
earth stations. Scientific Games also obtained licenses for the two
(2) earth stations acquired from Advanced Satellite Communications,
Inc. and obtained Commission approval for the 1999 and 2004 pro forma
assignments of twenty-five (25) earth station licenses. On February
12, 2007, the International Bureau approved the assignment of the
licenses for these earth stations from Scientific Games to RCN License
Subsidiary, Inc.
IV. TERMS OF AGREEMENT
5. The Parties agree that the provisions of this Consent Decree shall be
subject to final approval by the Bureau by incorporation of such
provisions by reference in an Adopting Order.
6. The Parties agree that this Consent Decree shall become effective on
the Effective Date. Upon the Effective Date, the Adopting Order and
this Consent Decree shall have the same force and effect as any other
order of the Commission and any violation of the terms of this Consent
Decree shall constitute a separate violation of a Commission order,
entitling the Commission to exercise any rights and remedies attendant
to the enforcement of a Commission order.
7. Scientific Games agrees that the Bureau has jurisdiction over the
matters that are the subject of this Consent Decree and the authority
to enter into and adopt this Consent Decree.
8. The Parties agree that this Consent Decree does not constitute either
an adjudication on the merits or a factual or legal finding or
determination regarding compliance or noncompliance by Scientific
Games with the requirements of the Act or the Commission's rules and
orders. The Parties agree that this Consent Decree is for settlement
purposes only and that, by entering into this Consent Decree,
Scientific Games does not admit or deny liability for violating any
statute, regulation, or rule in connection with the matters that are
the subject of this Consent Decree.
9. The Parties agree and acknowledge that this Consent Decree shall
constitute a final settlement between them concerning the Bureau's
Investigation.
10. In express reliance upon the covenants and representations in this
Consent Decree, the Bureau agrees to terminate the Investigation.
11. In consideration of the Bureau's termination of the Investigation,
Scientific Games agrees to the terms set forth herein.
12. Within thirty (30) calendar days after the Effective Date, Scientific
Games shall make a voluntary contribution to the United States
Treasury in the amount of $215,000. Such contribution shall be made,
without further protest or recourse, by credit card through the
Commission's Debt and Credit Management Center at (202) 418-1995, or
by mailing a check or similar instrument, payable to the order of the
Federal Communications Commission, to the Federal Communications
Commission, P.O. Box 358340, Pittsburgh, PA 15251-8340. Payment by
overnight mail may be sent to Mellon Bank /LB 358340, 500 Ross Street,
Room 1540670, Pittsburgh, PA 15251. Payment by wire transfer may be
made to ABA Number 043000261, receiving bank Mellon Bank, and account
number 911-6106. The payment should reference NAL/Acct. No.
200732100038 and FRN 0013281324.
13. Scientific Games agrees that it is required to comply with each
individual condition of this Consent Decree. Each specific condition
is a separate condition of the Consent Decree as approved. To the
extent that Scientific Games fails to satisfy any condition, in the
absence of Commission alteration of the condition, it will be deemed
noncompliant and may be subject to possible enforcement action,
including, but not limited to, revocation of the relief, designation
of the matter for hearing, letters of admonishment, or forfeitures.
14. The Bureau agrees that, in the absence of material new evidence, it
will not, on its own motion, initiate or recommend to the Commission,
any new proceeding, formal or informal, regarding the matters
described in paragraphs 3 and 4 above. The Bureau further agrees that,
in the absence of material new evidence, it will not use the facts
developed in this investigative proceeding through the Effective Date
to initiate on its own motion, or recommend to the Commission, any
proceeding, formal or informal, or take any action on its own motion
against Scientific Games with respect to their basic qualifications to
be or remain Commission licensees. Nothing in this Consent Decree
shall prevent the Bureau from instituting, or recommending to the
Commission, new investigations or enforcement proceedings against
Scientific Games, in the event of any alleged future misconduct for
violation of this Consent Decree or for violation of the Act or the
Commission's Rules, consistent with the provisions of this Consent
Decree.
15. Scientific Games waives any and all rights they may have to seek
administrative or judicial reconsideration, review, appeal or stay, or
to otherwise challenge or contest the validity of this Consent Decree
and the Adopting Order, provided the Adopting Order adopts the Consent
Decree without change, addition or modification.
16. Scientific Games agrees to waive any claims they may otherwise have
under the Equal Access to Justice Act, 5 U.S.C. S: 504 and 47 C.F.R.
S: 1.1501 et seq., relating to the matters discussed in this Consent
Decree.
17. If any Party (or the United States on behalf of the FCC) brings a
judicial action to enforce the terms of the Adopting Order, Scientific
Games and the FCC shall not contest the continuing validity of the
Consent Decree or Adopting Order, and Scientific Games will waive any
right to a trial de novo with respect to any matter upon which the
Adopting Order is based and will consent to a judgment incorporating
the terms of this Consent Decree.
18. In the event that this Consent Decree is rendered invalid by any court
of competent jurisdiction, this Consent Decree shall become null and
void and may not be used in any manner in any legal proceeding.
19. This Consent Decree cannot be modified without the advance written
consent of both Parties.
20. The Parties agree that the terms and conditions of this Consent Decree
shall remain in effect for a period of twenty-four (24) months from
the Effective Date.
21. This Consent Decree may be signed in counterparts.
For the Enforcement Bureau
________________________________ _______________
Kris Anne Monteith Date
Chief, Enforcement Bureau
For Scientific Games Racing, LLC
___________________________________ _______________
William J. Huntley Date
President
47 U.S.C. S: 301; 47 C.F.R. S: 25.102(a).
47 U.S.C. S: 310(d); 47 C.F.R. S: 25.119.
47 C.F.R. S:S: 0.111, 0.311.
47 U.S.C. S: 301; 47 C.F.R. S: 25.102(a).
47 U.S.C. S: 310(d); 47 C.F.R. S: 25.119.
See File No. SES-ASG-20061222-02238. On March 22, 2007, RCN License
Subsidiary, Inc. notified the Commission that the assignment had been
consummated. See File No. CON-SMT-20070322-00021.
Federal Communications Commission DA 07-2857
1
4
Federal Communications Commission DA 07-2857