STATE OF MICHIGAN
MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING
Cadillac Place
3062 W. Grand Blvd, Suite l-700
Detroit, MI

Tuesday, March 11, 2008
10:00 A.M.

MINUTES

On Tuesday, March 11, 2008, 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, MI.

Present:         In attendance were the following Board members:

                                                Judge Benjamin Friedman
                                                Ms. Barbara Rom
                                                Mr. Michael Watza

                      Also attending were:

                                                Richard Kalm
                                                Tom Barker
                                                John Page
                                                Fred Cleland
                                                D/F/LT Vicki Johnson
                                                Jack Cahill
                                                Laurie Lander

Business:

Acting Board Chairperson Barbara Rom called the public meeting to order at 10:01 a.m.  Ms. Rom noted for the record that Chairman Kassab and Mr. Robinson were absent due to prior commitments.  Ms. Rom asked Executive Director Rick Kalm if there was any preliminary business to discuss.

There being no preliminary business to discuss, Ms. Rom stated that the first order of business was to approve the minutes from the February 12, 2008 regular public meeting.  Ms. Rom 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 February 12, 2008 meeting be approved.

Motion carried.

Next Mr. Kalm presented the Executive Director's report.  Mr. Kalm advised the Board that in the month of February, Licensing SEMA Pam Trakul had resigned from the Board.  He further advised that the interview and selection process was ongoing for the remaining 11 vacant positions.

In regards to the Board's budget, Mr. Kalm reported that for fiscal year 2008, from October 1, 2007 through February 29, 2008, the Board has incurred total expenditures of $6,231,470 leaving the unexpended balance of $14,031,530 in appropriated funding for FY 2008, which includes funds for anticipated expenditures by the Attorney General's Office and the Michigan State Police.

Mr. Kalm next reported that the casinos continue to operate 24/7 and for February 2008, the aggregate revenue in taxes for all three Detroit casinos was up by 7.02 percent and the gaming taxes were 11.713 million compared to 12.702 million for the same period last year.  Mr. Kalm explained that due to the tax rollback for MGM, the taxes were lower compared to the same period last year even though the aggregate revenue was up by 7.02 percent.

In regards to employee licensing, Mr. Kalm advised the Board that the required background investigations for 59 pending Level 1 and 2 licenses had been completed and would be considered for approval by the Board at today's meeting.  Mr. Kalm further advised that 439 occupational license renewal requests had been completed for the month of February 2008.

Next Mr. Kalm reported on the MSP Board related activity for February 2008.  He stated that D/Lt. Robert Hendrix has joined the MSP Gaming Section filling the vacant Casino Operations Team Leader position.  He further stated that during the month of February 2008, the MSP Gaming Section investigated 65 criminal complaints and made 24 arrests.

Upon conclusion of Mr. Kalm's report, the Board considered the recommendations of the Executive Director and the Licensing Division's staff regarding the 59 Level 1 and 2 occupational license applications.

It was moved by Mr. Watza and seconded by Judge Friedman that the Board accept the recommendations of the Executive Director and Licensing Division's staff for the 59 Level 1 and 2 occupational license applications.  A voice vote was taken.

Motion carried.

Next the Board considered the Licensing Division's staff recommendation regarding the transfer of ownership interest in PokerTek, Inc. from Caledonia Investments Pty. LTD. and World Poker Tour to Aristocrat Leisure Limited.

There being no questions from Board members, it was moved by Judge Friedman and seconded by Mr. Watza that the Board enter an order approving the proposed transfer of interest in PokerTek, Inc. from Caledonia Investments Pty. Ltd. and World Poker Tour to Aristocrat Leisure Limited, under the licensing standards and requirements of the Act and Administrative Rules of the Board.  A voice vote was taken.

Motion carried.

The next agenda item the Board considered was the Licensing Division's staff recommendation regarding the transfer of ownership interest in MGM Grand Detroit, L.L.C. from MGM Mirage to Infinity World Investments, L.L.C. and amend the October 22, 2007 Board Order.

Ms. Rom acknowledged for the record the presence of Assistant Attorney General Melinda Leonard and Robert Stocker, counsel for Infinity World Investments.

After Mr. Stocker's and Ms. Leonard's summary of the proposed transfer of interest request, questions from Board members were answered and a motion was made but not seconded.   Judge Friedman asked that the matter be tabled until all Board members were present.

Mr. Stocker asked that the Board approve the request to amend the October 22, 2007 Board Order which approved the transfer of 9.5 percent ownership interest from MGM Mirage to Infinity World Investments, L.L.C., by removing restrictions 1 and 2.

After the Board agreed to table the transfer of ownership portion of the request, it was moved by Mr. Watza and seconded by Judge Friedman that the Board enter an order approving the request to amend the October 22, 2007 Board Order by removing restrictions 1 and 2.  A roll call vote was taken.

                                                Judge Friedman:              Aye
                                                Ms. Rom:                        Aye
                                                Mr. Watza:                      Aye

Motion carried.

Next Ms. Rom requested additional information on PokerTek, Inc.'s request for approval of its supplier license application.  It was agreed to by Board members to allow Deputy Director Fred Cleland to obtain the requested information and then consider Agenda Item D later in the meeting.

Therefore, the Board next considered the Executive Director Reports and the Licensing Division's staff recommendations regarding the pending supplier license renewal applications of Aristocrat Technologies, Inc., Hopbet, Inc. and Millennium Management Group, L.L.C.

After Ms. Rom questioned the vagueness of the clarification received from Millennium Management Group, L.L.C. regarding its financial overview, Board members agreed to table this request until a clearer clarification was presented to the Board.

Therefore, it was moved by Judge Friedman and seconded by Mr. Watza that the Board enter orders finding and concluding that Aristocrat Technologies, Inc. and Hopbet, Inc., and their qualifiers are eligible and suitable for licensure 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 Report and the Licensing Division's staff recommendation regarding the request of Quality Cabinet & Fixture Company for withdrawal of its supplier license application.

There being no questions from Board members, it was moved by Mr. Watza and seconded by Judge Friedman that the Board enter an order granting the request of Quality Cabinet & Fixture Company for withdrawal of its supplier license application.   A voice vote was taken.

Motion carried.

Next Ms. Rom asked Mr. Cleland if he was ready to address the Board regarding PokerTek, Inc.'s financial assets.  Mr. Cleland advised the Board that the additional information Ms. Rom requested was not readily available.  The Board agreed to table PokerTek, Inc.'s request for approval of its supplier license application until the April 8, 2008 public meeting.

Therefore, the Board considered the Executive Director's Reports and the Licensing Division's staff recommendations regarding the pending supplier license applications of American Glass & Metals Corporation, Information Systems Resources, Inc., Lakes Game Development, L.L.C., and Minority-Owned Reseller Enterprises Computer Supplies.

It was then moved by Mr. Watza and seconded by Judge Friedman that the Board enter orders finding and concluding that American Glass & Metals Corporation, Information Systems Resources, Inc., Lakes Game Development, L.L.C. and Minority-Owned Reseller Enterprises Computer Supplies, 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.

Next the Board considered the Executive Director's recommendation regarding the request of Detroit Entertainment, L.L.C. for a tax base reduction certification.

Ms. Rom noted for the record the presence of Gregg Solomon, CEO, Rhonda Cohen, COO and Cheryl Scott Dube, counsel for Detroit Entertainment, L.L.C.

Upon conclusion of Mr. Solomon's presentation, it was moved by Judge Friedman and seconded by Mr. Watza that the Board enter an order granting the request of Detroit Entertainment, L.L.C. for a tax base reduction certification, based upon the Board's report and recommendation.  A voice vote was taken.

Motion carried.

Next Ms. Rom requested a motion to go into closed session.

It was moved by Judge Friedman and seconded by Mr. Watza, 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 regarding the names of the individuals placed on the Board's Dissociated Persons List since the Board's last public meeting as required by the Act.  A roll call vote was taken.

                                                Judge Friedman:              Aye
                                                Ms. Rom:                        Aye
                                                Mr. Watza:                      Aye

Motion carried.

There being no public comments, Ms. Rom adjourned the meeting at 11:25 a.m.


________________________________________________
Board Secretary