STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Cadillac Place

3062 W. Grand Blvd., Suite L-700

Detroit, Michigan

Tuesday, October 10, 2006

10:00 A.M.

MINUTES

On Tuesday, October 10, 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

                                                         Mr. Donald Robinson

                                                         Ms. Barbara Rom

                                                         Judge Michael Stacey

                            Also attending were:

                                                         Dan Gustafson

                                                         Patty James

                                                         D/F/Lt. Vicki Johnson

                                                         Ben McMakin

                                                         John Page

                                                         Tom Barker

                                                         Jack Cahill

Business:           Board Chairman Damian Kassab called the staff briefing of the public meeting to order at 10:02 a.m.     Chairman Kassab asked if anyone felt the need for an overview of the meeting's agenda.  No comments were made.

                        Chairman Kassab called the meeting to order, and noted for the record that Judge Friedman was absent due to a prior commitment.

                        Chairman Kassab stated the first order of business was to approve the minutes from the September 12, 2006 regular public meeting.  Chairman Kassab noted that all Board members had previously received the minutes, and asked if there were any questions or concerns.

                        It was moved and seconded that the minutes of the September 12, 2006 meeting be approved.  Motion carried.

                        Mr. Gustafson next presented the Executive Director's report.  Mr. Gustafson advised the Board that Christine Harrison, the Detroit Office receptionist, had accepted another position within state government.

                        In regards to the Board's budget, Mr. Gustafson reported that for fiscal year 2006, from October 1, 2005 through September 30, 2006, the Board has incurred expenditures of just over 15.5 million, leaving the unexpended balance of just over 3.8 million in appropriated funding for FY 2006, which includes funds for anticipated reimbursement for expenditures by the Attorney General's Office and Michigan State Police.

                        Mr. Gustafson next reported that the casinos continue to operate 24/7 and for September 2006, the aggregate revenue in taxes for all three Detroit casinos was up 13.83 percent compared to the same month last year.  The gaming taxes for the three Detroit casinos for September 2006 were 13.29 million compared to 11.45 million for the same period last year.

                        Next, Mr. Gustafson updated the Board on MSP's Board-related activities.  He reported that during the month of September, the Gaming Section investigated 79 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 37 Level 1 and 2 occupational license applications. 

                        It was moved by Judge Stacey and seconded by Ms. Rom 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.

                        The next item considered by the Board was Michigan's Future Political Committee's request for a declaratory ruling for an interpretation of 207b in the Act, which prohibits political contributions to specific committees.

                        Upon Chairman Kassab's invitation, Mr. Cahill, Assistant Attorney General in Charge, gave a quick overview of the request.

                        Upon conclusion of Mr. Cahill's overview and questions from Board members were answered, it was moved by Ms. Rom and seconded by Judge Stacey that the Board undertake in 60 days the consideration of the declaratory request.

                        Next the Board considered the Executive Director's Reports and the Licensing Division's staff recommendations regarding the pending supplier license applications of National Precast, Inc., Harvard Consulting Engineering and Construction Group and Allied-Eagle Supply Company.

                        After Board members' questions regarding Harvard Consulting Engineering and Construction Group were answered, it decided to vote on its application separately.

                        Therefore, it was moved by Ms. Rom and seconded by Judge Stacey that the Board enter orders finding and concluding that National Precast, Inc. and Allied-Eagle Supply Company, and their qualifiers, are eligible and suitable for licensure.  A voice vote was taken.

                        Motion carried.

                        Next, it was moved by Ms. Rom and seconded by Mr. Robinson, that the Board enter an order finding and concluding that Harvard Consulting Engineering and Construction Group, Inc., and its qualifiers, is eligible and suitable for licensure with the stipulation that the licensee certify to the Board, prior to its renewal of its license, that it has timely filed tax returns.  A voice vote was taken.

                        Motion carried.

                        The next item considered by the Board was the Board staff's recommendations regarding the requests to withdraw the supplier license applications of International Market Place, Inc., Martin L. Seldman, Ph.D., Jackson Consulting Group, Zora Gaming, Inc. and Motor City Golf Warehouse.

                        Chairman Kassab noted for the record the presence of Robert Young, representing Mr. and Mrs. Gatzaros and the related companies.

                        There being no questions from Board members, it was moved by Mr. Robinson and seconded by Ms. Rom that the Board enter orders granting the requests of International Market Place, Inc., Martin L. Seldman, Ph.D., Jackson Consulting Group, Zora Gaming, Inc. and Motor City Golf Warehouse, for withdrawal of their supplier license applications.  A voice vote was taken.

                        Motion carried.

                        The Board next considered the Executive Director's Reports and the Licensing Division's staff recommendations regarding the pending applications for transfer of ownership interest in Fred Christen and Sons Company, Gasser Chair Company, Inc. and Northern Lights Seafood and Meats, L.L.C.

                        Chairman Kassab noted for the record that there were no representatives for the applicants present at the meeting.

                        There being no questions from Board members, it was moved by Judge Stacey and seconded by Ms. Rom that the Board enter orders approving the proposed applications for transfer of ownership interest in supplier licensees Fred Christen and Sons Company, from Fred C. Christen to Frederick R. Christen, Gasser Chair Company, Inc., by and between multiple shareholders, and Northern Lights Seafood and Meats, L.L.C., by and among Irwin Groskind, Craig Berry, John Messina, James Meyer and Michael Steele, under the licensing standards and requirements of the Act and Rules of the Board.  A voice vote was taken.

                        Motion carried.

                        Next the Board considered the Executive Director's Report and the Licensing Division's staff recommendation for the Board to issue a Notice of Deficiency to Brintons U.S. Axminster, Inc.

                        After questions from Board members were answered, it was moved by Judge Stacey and seconded by Ms. Rom that the Board enter an order to issue a Notice of Deficiency to Brintons U.S. Axminster, Inc., to allow Brintons U.S. Axminster, Inc. 15 days to correct the deficiency and notify Brintons U.S. Axminster, Inc. of a potential denial of its application if it fails to meet the aforementioned criteria.  A voice vote was taken.

                        Motion carried.

                        The Board next considered the acceptance of the Acknowledgement of Violation of supplier licensee Bally Gaming, Inc.

                        Chairman Kassab invited Mr. John Page and Assistant Attorney General Michael Lockman to give a brief overview of the case.

                        Upon conclusion of Mr. Page's and Mr. Lockman's comments, and questions from Board members were answered, Chairman Kassab acknowledged the presence of Peter Kulick, representative for Bally Gaming, Inc.

                        Upon conclusion of Mr. Kulick's comments, it was moved by Mr. Robinson and seconded by Ms. Rom that the Board accept the proposed Acknowledgment of Violation as agreed to by the Board's staff and supplier licensee Bally Gaming, Inc., 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.

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

                        Therefore, it was moved by Judge Stacey and seconded by Ms. Rom 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

                                                         Mr. Robinson:              Aye

                                                         Ms. Rom:                    Aye

                                                         Judge Stacey:             Aye

                        Motion carried.

                        There being no comments from the public, Chairman Kassab next recognized Mr. Cahill, who acknowledged Mr. Gustafson's departure from the MGCB and paid tribute to his outstanding service and leadership to the Board and the State of Michigan.

                        Chairman Kassab adjourned the meeting at 10:45 a.m.

                                                                                                  _______________________________________

                                Patricia S. James

                                Board Secretary