STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Cadillac Place

3062 W. Grand Blvd., Suite L-700

Detroit, Michigan

Tuesday, March 14, 2006

10:30 A.M.

MINUTES

On Tuesday, March 14, 2006, 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

                                                 Barbara Rom

                                                 Judge Michael Stacey

                         Also attending were:

                                                 Daniel Gustafson

                                                 Patty James

                                                 D/F/Lt. Vickie Johnson

                                                 Ben McMakin

                                                 Tom Barker

                                                 John Page

                                                 Jack Cahill

Business:          Board Chairman Damian Kassab called the staff briefing of the public meeting to order at 10:30 a.m.   Chairman Kassab asked if anyone felt the need for an overview of the meeting’s agenda.  No comments were made.  However, Deputy Director McMakin requested the opportunity to introduce Ryo Suzki, a friend, who was visiting from Tokyo, Japan.

                        After the introduction, Chairman Kassab called the regular public meeting to order and noted for the record that Mr. Robinson was absent due to a prior commitment.           

Chairman Kassab stated the first order of business was to approve the minutes from the February 14, 2006 meeting.   He requested a motion to approve the minutes from the February 14, 2006 meeting.

                        It was moved and seconded that the minutes of the February 14, 2006 meeting be approved.  Motion carried.

                        Mr. Gustafson next presented the Executive Director’s report.  In regards to staffing, Mr. Gustafson reported that Celeste Clarkson had been promoted to a Regulation Officer 12 position within the Board’s Licensing Division.  He also reported that there were 3 remaining positions to be filled within the Licensing Division and that hopefully, these vacancies would be filled within the month.

                        In regards to the Board’s budget, Mr. Gustafson reported that for fiscal year 2006, from October 1, 2005 through February 28, 2006, the Board has incurred expenditures of $5,898,299, leaving the unexpended balance of just over $13 million in appropriated funding for FY 2006.  He also advised the Board that the appropriated funding included reimbursement to the Attorney General and State Police for their services to the Board.

                        Mr. Gustafson next reported that the casinos continue to operate 24/7 and for February 2006, the aggregate revenue in taxes for all three Detroit casinos was up 6.3 percent compared to the same month last year.  The gaming taxes for the three Detroit casinos for February 2006 were $13.203 million.

                        Next, Mr. Gustafson updated the Board on MSP’s Board-related activities.  He reported that during the month of February 2006, the Gaming Section investigated 65 criminal complaints and made 21 arrests.    

                        Upon conclusion of Mr. Gustafson’s report, Chairman Kassab requested a motion to accept the recommendations of the Executive Director and the Licensing Division’s staff regarding the 48 Level 1 and 2 occupational license applications. 

                        It was moved by Judge Stacey and seconded by Judge Friedman to accept the recommendations of the Executive Director and the Licensing Division’s staff for the applications summarized in Exhibit 1.  A voice vote was taken.

                        Motion carried.

                        Next, the Board considered the Executive Director’s Report and the Licensing Division’s staff recommendation regarding the pending supplier license renewal application of New Millennium Advisors, L.L.C.

                        There being no questions from Board members, it was moved by Judge Friedman and seconded by Ms. Rom that the Board enter an order finding and concluding that New Millennium Advisors, L.L.C. and its qualifiers are eligible and suitable for licensure under the licensing standards and requirements of the Act and Rules of the Board.  A voice vote was taken.

                        Motion carried.

                        The next agenda item considered was the Executive Director’s Reports and the Licensing Division’s staff recommendations regarding the pending supplier license applications of Western Money Systems, LaGrasso Brothers, Inc., Rohrscheib Sons Caissons, Blaze Contracting, Inc., and Midwest Steel, Inc. 

                        Again, there being no questions from Board members, it was moved by Ms. Rom and seconded by Judge Stacey that the Board enter orders finding and concluding that Western Money Systems, LaGrasso Brothers, Inc., Rohrscheib Sons Caissons, Blaze Contracting, Inc., and Midwest Steel, Inc. and their qualifiers are eligible and suitable for licensure under the licensing standards and requirements of the Act and Rules of the Board.  A voice vote was taken.

                        Motion Carried.

                        The Board next considered the acceptance of the Acknowledgment of Violation of supplier licensee Happ Controls, Inc.

                        Chairman Kassab invited Mr. McMakin to give a brief summary of the case.

                        Upon conclusion of Mr. McMakin’s summary, and questions from Ms. Rom were answered, Chairman Kassab noted for the record that there were no representatives for Happ Controls, Inc. present at the meeting. 

                        Therefore, it was moved by Judge Stacey and seconded by Judge Friedman that the Board accept the proposed Acknowledgment of Violation as agreed to by the MGCB staff and supplier licensee Happ Controls, Inc. and issue an order adopting, accepting and incorporating the Acknowledgment of Violation as the Board’s final decision.  A roll call vote was taken. 

                                     Chairman Kassab:            Aye

                                     Judge Friedman:              Aye

                                     Ms. Rom:                        Aye

                                     Judge Stacey:                  Aye

                        Motion carried.

                        The next item considered by the Board was the Proposal for Decision in the matter of the disciplinary action of Gaming Edge Technology, Inc.

                        Chairman Kassab invited Assistant Attorney General, Don McGehee to give a brief overview of the matter.

                        Upon conclusion of Mr. McGehee’s overview and a brief discussion between Mr. McGehee, Ms. Carol Flores and Board members, it was moved by Judge Friedman and seconded by Judge Stacey that the Board enter a final decision and order in the matter of the disciplinary action of Gaming Edge Technology, Inc., accepting, adopting, and incorporating the ALJ’s Proposal for Decision in its entirety and revoking Gaming Edge Technology, Inc.’s supplier license.  A roll call vote was taken.                       

                                     Chairman Kassab:             Aye

                                     Judge Friedman:               Aye

                                     Ms. Rom:                        Aye

                                     Judge Stacey:                 Aye

                        Motion carried.

                        The Board next considered the request for leave from the Board to waive the one-year waiting period to reapply for an occupational license for Thomas W. Drake, IV.

                        Chairman Kassab noted for the record the presence of Thomas W. Drake, IV at the meeting.  Chairman Kassab also acknowledged the presence of Henry Williams and Warren Lamb, MGCB Regulation Officers. 

                        After a brief summary of the case from Mr. Williams and Mr. Lamb, comments from the applicant and Mr. Gustafson, and questions from Board members were answered, it was moved by Judge Friedman and seconded by Ms. Rom that the Board enter an order granting the request for leave from the Board to waive the one-year waiting period to reapply for an occupational license for Thomas W. Drake, IV.  A roll call vote was taken.

                                     Chairman Kassab:            Aye

                                     Judge Friedman:              Aye

                                     Ms. Rom:                       Aye

                                     Judge Stacey:                Nay

                        Motion carried.

                        Next, Chairman Kassab requested a motion for the Board to go into closed session.

                        Therefore, it was moved by Ms. Rom and seconded by Judge Stacy that the Board go into closed session immediately following the conclusion of the public meeting 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 roll call vote was taken.

                                     Chairman Kassab:            Aye

                                     Judge Friedman:               Aye

                                     Ms. Rom:                        Aye

                                     Judge Stacey:                 Aye

                        Motion carried.

                        There being no comments from the public, Chairman Kassab adjourned the meeting, at 11:04 a.m.

                                 Patricia S. James

                                 Board Secretary