STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Cadillac Place

3062 W. Grand Blvd., Suite L-700

Detroit, Michigan

TUESDAY, September 14, 2004

11:00 A.M.

MINUTES

On Tuesday, September 14, 2004, the Michigan Gaming Control Board held a public meeting at the Board office in the Cadillac Place, 3062 W. Grand Blvd, Suite L-700, Detroit, Michigan.

Present:              In attendance were the following Board members:

                                                 Damian Kassab, Chairman

                                                 Judge Benjamin Friedman

                                                 Donald Robinson

                                                 Barbara Rom

                                                 Judge Michael Stacey

                         Also attending were:

                                                 Daniel Gustafson

                                                 Patty James

                                                 Insp. Ellis Stafford

                                                 Ben McMakin

                                                 Tom Barker

                                                 John Page

                                                 Jack Cahill

                                                 Bethany Scheib

Business:            Board Chairman Damian Kassab called the meeting to order at 11:01 a.m.  Chairman Kassab noted for the record that all Board members were present for the meeting.

                         Chairman Kassab stated the first order of business was to approve the minutes from the August 10, 2004 meeting.  He requested a motion to approve the minutes from the August 10, 2004 meeting.

                         It was moved and seconded that the minutes of the August 10, 2004 meeting be approved.  Motion carried.

                         Dan Gustafson next presented the Executive Director’s report.  In regards to staffing Mr. Gustafson advised the Board that Melody Duwe has been hired as a secretary for the Board’s Licensing Division.   Mr. Gustafson further advised the Board that with the retirement of Dan Fields, Employee Licensing Regulation Officer, the MGCB staff still totals 98 with 4 authorized positions yet to be filled.  He also noted that the Board is in the process of reviewing resumes and interviewing for these 4 positions.

                         Mr. Gustafson proceeded to give an update regarding the Board’s budget.  Mr. Gustafson reported that for the fiscal year 2004, from October 1, 2003 through August 31, 2004, the Board has incurred expenditures in the amount of $13,024,099, leaving the unexpended balance of $4,305,101 in appropriated funding for FY 2004.   Mr. Gustafson further advised that the unexpended balance includes year-end reimbursements to the Attorney General and State Police.

                         Mr. Gustafson next reported that the aggregate revenue in taxes for all three Detroit casinos was up 3.52 percent compared to the same month last year.   The gaming taxes for the three Detroit casinos for August 2004 were $7.96 million compared to $7.69 million for the same period last year.  Also, effective September 1, 2004 all three Detroit casinos were paying increased tax rates at 24 percent as a result of legislative action.  Mr. Gustafson further advised the Board that the new legislation dictates that 11.9 percent of the gaming taxes is allocated to the City of Detroit and 12.1 percent to the State of Michigan.

                         Mr. Gustafson then proceeded to update the Board on the status of the issuance of temporary supplier licenses, full supplier licenses, vendor registrations, and supplier licensing exemptions, as well as the status of the issuance of temporary and permanent occupational licenses for the three casinos.

                         Upon conclusion of Mr. Gustafson’s report and questions from Chairman Kassab relative to Greektown’s July to August issuance of occupational licenses and Ms. Rom’s request for more information on issuance of supplier licenses, it was moved by Ms. Rom and seconded by Judge Stacey that the Board accept the recommendations of the Executive Director regarding the 137 Level 1 and 2 occupational license applications as summarized in Exhibit 1.  A voice vote was taken.

                        Motion carried.

                        The next item considered by the Board was the acceptance of acknowledgement of violation of AGI Distribution, Inc., d/b/a Acres Gaming, Inc., Board File No. SDA-2004-02.   

                        Chairman Kassab noted for the record the presence of Attorney General in Charge, Mr. Jack Cahill and Deputy Director of Enforcement, Mr. John Page.  Chairman Kassab advised Board members that Mr. Cahill and Mr. Page would give a summary and description of the violation. 

Upon conclusion of the brief overview of this matter, Chairman Kassab provided Mr. Dave Waddell, counsel for Acres Gaming and the parent company, IGT, the opportunity to speak on behalf of his clients.  It was also noted that Mr. Rich Snyder, President and Chief Operating Officer of Acres Gaming, Patricia Waldon, IGT’s Director of Product Compliance, and Lavonne Withey-Lacramu, an IGT employee were present at the meeting.

After brief comments and a discussion between Board members and acknowledged individuals it was decided to table this matter until Mr. Cahill and Mr. Waddell could determine an implementation date for Acres’ new software package.  It was agreed to revisit this matter and make a decision on the proposed settlement before the end of today’s meeting.

                        The next agenda item was to consider the Executive Director’s reports and the Licensing Division's recommendations regarding the eligibility and suitability of Phyllis James and Jeffrey Benjamin for MGM Grand Detroit and Detroit Entertainment, respectively. 

                        For the record it was noted that Ms. Cheryl Scott Dube, Associate General Counsel for the Mandalay Resort Group was present at the meeting.

                         There being no questions from Board members it was moved by Judge Friedman and seconded by Ms. Rom that the Board enter orders finding and concluding that Phyllis James and Jeffrey Benjamin are eligible and suitable as required qualifiers for casino licensees MGM Grand Detroit, L.L.C. and Detroit Entertainment, L.L.C., respectively, under the licensing standards and requirements of the Act and Administrative Rules of the Board.  A voice vote was taken.

                         Motion carried.

The Board next considered the Executive Director's reports and the Licensing Division's recommendations regarding the pending supplier license applications of Motor City Electric Company, Wilson and Associates, Inc., and Compsat Security, Inc.

                         Once again, Chairman Kassab noted for the record the presence of Mr. Dave Waddell, counsel for Motor City Electric Company.  He also noted the presence of Motor City Electric Company’s President and CEO, Mr. Dale Wassiter.

                        After introductions were made it was moved by Judge Stacey and seconded by Judge Friedman that the Board enter orders finding and concluding that Motor City Electric Company, Wilson and Associates, Inc. and Compsat Security, Inc. are eligible and suitable for licensure.  A voice vote was taken.

                         Motion carried.

                        The next agenda item considered was the Executive Director's report and the Licensing Division's recommendation regarding the pending gaming related supplier license renewal application of Diversified Computer Services, Inc.

                        After noting for the record that there were no representatives for Diversified Computer Services present at the meeting, it was moved by Mr. Robinson and seconded by Judge Stacey that the Board enter an order finding and concluding that Diversified Computer Services, Inc. and its qualifiers are eligible and suitable for licensure and accordingly granting the request for renewal of its annual gaming related supplier license for a new one year period beginning September 14, 2004.  A voice vote was taken.

                         Motion carried.

                        The Board next considered the Proposal for Decision in the matter of the denial of Nancy Camperlino’s application for an occupational license.  Board File No. OLH-2004-02.

                         After a brief summary of this matter by Assistant Attorney General, Ms. Bethany Scheib, it was moved by Ms. Rom and seconded by Judge Stacey to accept, adopt and incorporate the hearing officer's Proposal for Decision in its entirety and deny Nancy Camperlino’s application for an occupational license.   A voice vote was taken.

                        Motion carried.

Next Chairman Kassab asked Mr. Cahill to present the modified acknowledgement of violation of AGI Distribution, Inc. 

                         Upon conclusion of Mr. Cahill’s presentation it was moved by Ms. Rom and seconded by Judge Stacey that the Board accept the modified proposed acknowledgment of violation as agreed to by the MGCB and Acres Gaming and issue an order adopting, accepting and incorporating the acknowledgment of violation as the Board’s final decision.  A voice vote was taken.

                         Motion carried.

                         The Board next considered the Proposal for Decision in the matter of the summary suspension of the occupational license for Robert J. Aaron.   Board File No. ODA-2004-03.

                         Chairman Kassab noted for the record that Mr. Aaron was present at the meeting.

                         After comments from Mr. Aaron, Ms. Scheib and questions from Board members, it was moved by Mr. Robinson and seconded by Judge Friedman that the Board enter a final decision and order in the matter of the summary suspension of occupational licensee Robert J. Aaron, accepting, adopting and incorporating the hearing officer's Proposal for Decision in the matter in its entirety and revoking Robert J. Aaron's occupational license.  The following roll call vote was then taken on the motion:

                                     Chairman Kassab:  Aye

                                     Judge Friedman:     Aye

                                     Mr. Robinson:        Aye

                                     Ms. Rom:              Aye

                                     Judge Stacey:       Aye

                         Motion carried.

                         The Board next considered the Proposal for Decision in the matter of the summary suspension of the occupational license for Wendell N. Burke.   Board File No. ODA-2004-04.

                         Mr. Gustafson advised the Board that Mr. Burke was not immediately available and requested that the Board consider the next agenda item and consider this matter when Mr. Burke returned from parking his car.

                         Therefore, the Board next considered Agenda Item I regarding the proposed public meeting schedule for fiscal year 2004-2005.

                         There being no questions or concerns from Board members, it was moved by Judge Stacey and seconded by Judge Friedman that the Board adopt the proposed public meeting scheduled.  A voice vote was taken.

                         Motion carried.

                         There being no questions or comments from the public and due to the fact that Mr. Burke still had not returned to the meeting, Chairman Kassab requested a motion to go to closed session and recess the meeting so that the Board could consider the Summary Suspension of Wendell N. Burke after the closed session.  Therefore, it was moved by Judge Stacey and seconded by Judge Friedman that the Board go into closed session for the purpose of receiving legal advice and counsel from the Board’s attorney regarding pending Board litigation, and receiving confidential notification from the Executive Director regarding the names of individuals placed on the Board’s Disassociated Persons List since the Board’s last public meeting as required by the Act.   A voice vote was taken.

                         Motion carried.

                        After the closed session Chairman Kassab reconvened the meeting to consider the Proposal for Decision in the matter of the summary suspension of the occupational license for Wendell N. Burke.   Board File No. ODA-2004-04.

Chairman Kassab invited Ms. Scheib to give a brief summary of this matter and also noted for the record that Mr. Burke had not returned to the meeting.

After Ms. Scheib’s summation it was moved by Ms. Rom and seconded by Judge Friedman that the Board enter a final decision and order in the matter of the summary suspension of occupational licensee Wendell N. Burke accepting and adopting and incorporating the hearing officer’s Proposal for Decision in the matter in its entirety and revoking Wendell N. Burke’s occupational license.  A voice vote was taken.

Motion carried.

Meeting adjourned at 12:45 p.m.

                               ______

                                 Patricia S. James

                                 Board Secretary