STATE OF MICHIGAN
MICHIGAN GAMING CONTROL BOARD  

PUBLIC MEETING
Cadillac Place
3062 W. Grand Blvd., Suite L-700
Detroit, Michigan

Tuesday, April 8, 2008
1 0:00 A.M.
 

MINUTES

On Tuesday, April 8, 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:  

                                                Mr. Damian Kassab, Chairman
                                                Judge Benjamin Friedman
                                                Mr. Donald Robinson
                                                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:  

Board Chairman Damian Kassab called the staff briefing of the public meeting to order at 10:03 a.m.  There being no preliminary business to discuss, Chairman Kassab noted for the record that all Board members were present at today's meeting.

Chairman Kassab stated that the first order of business was to approve the minutes from the March 11, 2008 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 March 11, 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 March 2008, Regulation Officer Greg Kilbourn and Technician Marcia Hegelman had resigned from the Board.  He further advised that the interview and selection process was ongoing for the remaining 13 vacant positions.

In regards to the Board's budget, Mr. Kalm reported that for fiscal year 2008, from October 1, 2007 through March 31, 2008, the Board has incurred total expenditures of $7,564,722 leaving the unexpended balance of $12,698,278 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 January 2008, the aggregate revenue in taxes for all three Detroit casinos was up by 0.02 percent and the gaming taxes were 11.805 million compared to 14.97 million for the same period last year.  Mr. Kalm explained that due to the tax rollback for MGM Grand Detroit Casino and MotorCity Casino, the taxes were lower compared to the same period last year even though the aggregate revenue was up by 0.02 percent.

In regards to employee licensing, Mr. Kalm advised the Board that the required background investigations for 65 pending Level 1 and 2 licenses had been completed and would be considered for approval by the Board at today's meeting.

Next Mr. Kalm reported on the MSP Board related activity for the month of March 2008.  He stated that D/Spl. Bradley Cox has received orders to active military duty for 1 year.  He further stated that during the month of March 2008 the MSP Gaming Section investigated 73 criminal complaints and made 30 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 65 Level 1 and 2 occupational license applications.

It was moved by Mr. Robinson and seconded by Mr. Watza to accept the recommendations of the Executive Director and the Licensing Division's staff for the 65 Level 1 and 2 occupational license applications.  A voice vote was taken.

Motion carried.

The next agenda item considered by the Board was the Executive Director's Reports and Licensing Division's staff recommendations regarding the pending supplier license renewal applications of Gaming Entertainment, Inc. and Millennium Management Group, L.L.C.

Chairman Kassab noted for the record the presence of Guy Hillyer, President of Millennium Management Group, L.L.C.

After Ms. Rom's questions regarding Millennium Management Group's financial overview and questions from Mr. Watza regarding Gaming Entertainment were answered, it was moved by Judge Friedman and seconded by Mr. Watza that the Board enter orders finding and concluding that Gaming Entertainment, Inc. and Millennium Management Group, L.L.C., and their qualifiers are eligible and suitable for licensure and accordingly, granting these requests for renewal of their annual supplier licenses for a new one year period beginning April 8, 2008.  A voice vote was taken.

Motion carried.

Next the Board considered Agenda Item C, the Licensing Division Staff's recommendations regarding the transfers of interest in Atronic Americas, L.L.C., LVC Technologies, Inc., MGM Grand Detroit, L.L.C. and PayCraft Consulting, L.L.C.

There being no questions from Board members, it was moved by Ms. Rom and seconded by Mr. Watza that the Board enter orders approving the proposed transfers of interest in Atronic Americas, L.L.C., LVC Technologies, Inc., MGM Grand Detroit, L.L.C. and PayCraft Consulting, L.L.C.    A voice vote was taken.

Motion carried.

Next the Board considered the Executive Director's Reports and Licensing Division's staff recommendations regarding the pending supplier license applications of American Megacom, Inc., Architectural Southwest Stone Company, E. Gads, L.L.C., Lakeshore Tech, Inc., PokerTek, Inc., Precision Food Distribution, L.L.C. and Wrightway Group, L.L.C.

Chairman Kassab noted for the record the presence of Kelli Bourgoise, President and Nelson Westrin, counsel for Architectural Southwest Stone Company.

After a brief summary from Mr. Westrin regarding Architectural Southwest Stone Company's application, it was moved by Mr. Watza and seconded by Ms. Rom that the Board enter orders finding and concluding that American Megacom, Inc., Architectural Southwest Stone Company, E. Gads, L.L.C., Lakeshore Tech, Inc., PokerTek, Inc., Precision Food Distribution, L.L.C. and Wrightway Group, L.L.C., 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 Proposal for Decision in the matter of the disciplinary action of occupational licensee Tywan Bobby O'Neal.

Chairman Kassab noted for the record that neither Mr. O'Neal nor his representative was present at the meeting.  Chairman Kassab invited Assistant Attorney General Jessica Hodgson to give a brief overview of the case.

After questions from Chairman Kassab were answered, it was moved by Ms. Rom and seconded by Mr. Watza that the Board enter an order accepting, adopting and incorporating the Administrative Law Judge's Proposal for Decision with the exception of no new licenses to be issued to Mr. O'Neal and revoking Tywan Bobby O'Neal's occupational license.  A voice vote was taken.

Motion carried.

The Board next considered the Proposal for Decision in the matter of the disciplinary action of occupational licensee Kathryn Overstreet.

Chairman Kassab noted for the record that neither Ms. Overstreet nor her representative was present at the meeting.  Chairman Kassab invited Assistant Attorney General Jessica Hodgson to give a brief overview of the case.

Upon conclusion of Ms. Hodgson's overview, it was moved by Mr. Robinson and seconded by Ms. Rom that the Board enter a final decision and order in the matter of the revocation of Kathryn Overstreet's occupational license, accepting, adopting and incorporating the Administrative Law Judge's Proposal for Decision in its entirety and revoking Kathryn Overstreet's occupational license.  A voice vote was taken.

Motion carried.

The Board next considered the Proposal for Decision in the matter of the disciplinary action of occupational licensee Abdul Kadir Khukan.

Chairman Kassab noted for the record the presence of Mr. Khukan and invited Assistant Attorney General Melinda Leonard to summarize the case for the Board.

After Ms. Leonard's summation and comments from Mr. Khukan, it was moved by Judge Friedman and seconded by Mr. Watza that the Board enter a final decision and order in the matter of the revocation of Abdul Kadir Khukan's occupational license, accepting, adopting and incorporating the Administrative Law Judge's Proposal for Decision in the matter in its entirety and revoking Abdul Kadir Khukan's occupational license.  A voice vote was taken.

Motion carried.

Next the Board considered the Proposal for Decision in the matter of the disciplinary action of occupational licensee Christina Crosby.

Chairman Kassab noted for the record that neither Ms. Crosby nor her representative were present at the meeting.  Chairman Kassab once again invited Assistant Attorney General Jessica Hodgson to give a brief overview of the case.

There being no questions from Board members, it was moved by Mr. Watza and seconded by Mr. Robinson that the Board enter a final decision and order in the matter of the revocation of Christina Crosby's occupational license, accepting, adopting and incorporating the Administrative Law Judge's Proposal for Decision in the matter in its entirety and revoking Christina Crosby's occupational license.  A voice vote was taken.

Motion carried.

Next the Board considered the Acknowledgement of Violation of occupational licensee Katherine Takis.

Chairman Kassab noted for the record that neither Ms. Takis nor her representative was present at the meeting.  Deputy Director John Page introduced himself for the record and gave an overview of the case.

After questions from Board members were answered, it was moved by Ms. Rom and seconded by Mr. Watza that the Board accept the proposed Acknowledgment of Violation as agreed to by the Michigan Gaming Control Board and occupational licensee Katherine Takis, and issue an order adopting, accepting, and incorporating this Acknowledgment of Violation as the Board's final decision.  A voice vote was taken.

Motion carried.

Next the Board considered the Acknowledgement of Violation of occupational licensee Cynthia Wright.

Chairman Kassab noted for the record that neither Ms. Wright nor her representative was present at the meeting.  Chairman Kassab also noted for the record the presence of Assistant Attorney General Jessica Hodgson.

After comments from Ms. Hodgson, it was moved by Mr. Robinson and seconded by Mr. Watza that the Board accept the proposed Acknowledgement of Violation as agreed to by the Michigan Gaming Control Board staff and occupational licensee Cynthia Wright, and issue an order adopting, accepting and incorporating the Acknowledgement of Violation as the Board's final decision.  A voice vote was taken.

Motion carried.

Next the Board considered the Acknowledgement of Violation of supplier licensee Shuffle Master, Inc.

Chairman Kassab noted for the record presence the of Peter Ellsworth, counsel for Shuffle Master, Inc. and MGM Grand Detroit Casino, Deputy Director Page and Enforcement Manager Michael Maher.

After questions from Board members were answered, it was moved by Judge Friedman and seconded by Ms. Rom that the Board accept the proposed Acknowledgement of Violation as agreed to by the Michigan Gaming Control Board staff and supplier licensee Shuffle Master, Inc., and issue an order adopting, accepting and incorporating the Acknowledgement of Violation as the Board's final decision.  A voice vote was taken.

Motion carried.

Next the Board considered the Acknowledgement of Violation of casino licensee MGM Grand Detroit, L.L.C.

Chairman Kassab again noted for the record the presence of Peter Ellsworh, counsel for MGM and Deputy Director John Page.

There being no questions from Board members, it was moved by Ms. Rom and seconded by Mr. Watza that the Board accept the proposed Acknowledgment of Violation as agreed to by the Michigan Gaming Control Board staff and casino licensee MGM Grand Detroit, L.L.C., and issue an order adopting, accepting and incorporating the Acknowledgement of Violation as the Board's final decision.  A voice vote was taken.

Motion carried.

The next order of business was the Board's consideration of Greektown Casino, L.L.C.'s request for:

A.     Waiver of the 45 day notice requirement for amendments to loan documents in the Michigan Gaming Control Board's 2006 "Final Decision and Order Approving Acknowledgement of Violation and Approving Certain Amendments to the Debt Transaction Documents," CDA-2006-2.

B.     Approval of an amendment to their Debt Transaction documents, specifically of a Limited Duration Waiver Agreement with their lenders.

C.     Approval of a Proposed Temporary Waiver of the Enforcement Remedies under the Michigan Gaming Control Board's 2005 "Order Approving Debt Transaction, Supplier Licensing Exemptions and Eligibility, Suitability, and Qualification of Certain Key Persons of Greektown Casino, L.L.C.," GTC-2005-006.

Chairman Kassab noted for the record the presence of Mike Dubay, counsel for Greektown Casino and Cliff Vallier, CFO and Assistant General Manager of Greektown Casino.  Chairman Kassab invited Executive Director Rick Kalm to give a brief overview of the request.

After comments from Mr. Kalm, Mr. Dubay and Mr. Vallier, Chairman Kassab acknowledged for the record the presence of Charles Jaskolski and Scott Houghton, representatives of Wolinski & Company, a financial institute contracted by the MGCB.

After comments from Mr. Jaskolski and Mr. Houghton and questions from Board members were answered, it was agreed to by Board members to make a separate motion for each of Greektown's requests.

Therefore, it was moved by Chairman Kassab and seconded by Judge Friedman that the Board enter an order granting the waiver of the 45 day notice requirement for amendments to loan documents in the Michigan Gaming Control Board's 2006 "Final Decision and Order Approving Acknowledgment of Violation and Approving Certain Amendments to the Debt Transaction Documents", CDA-2006-2.  A roll call vote was taken.

                        Chairman Kassab:                        Aye
                         Judge Friedman:                          Aye
                        Mr. Robinson:                             Aye
                        Ms. Rom:                                   Aye
                        Mr. Watza:                                 Aye

Next it was moved by Chairman Kassab and seconded by Mr. Watza that the Board enter an order granting an amendment to their Debt Transaction documents, specifically of a Limited Duration Waiver Agreement with their lenders.  A roll call vote was taken.

                        Chairman Kassab:                        Aye
                         Judge Friedman:                           Aye
                        Mr. Robinson:                              Aye
                        Ms. Rom:                                    Aye
                        Mr. Watza:                                  Aye

Motion carried.

Furthermore, it was moved by Chairman Kassab and seconded by Mr. Watza that the Board enter an order denying the proposed temporary waiver of the enforcement remedies under the Michigan Gaming Control Board's 2005 "Order Approving Debt Transaction, Supplier Licensing Exemptions and Eligibility, Suitability, and Qualification of Certain Key Persons of Greektown Casino, L.L.C.", GTC-2005-006.  A roll call vote was taken.

                        Chairman Kassab:                        Aye
                        Judge Friedman:                           Aye
                        Mr. Robinson:                              Aye
                        Ms. Rom:                                   Aye
                        Mr. Watza:                                 Aye

Next Chairman Kassab requested a motion to go into closed session.

Therefore, it was moved by Mr. Robinson 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.

                         Chairman Kassab:                        Aye
                         Judge Friedman:                           Aye
                         Mr. Robinson:                              Aye
                         Ms. Rom:                                    Aye
                         Mr. Watza:                                 Aye

For the public comment portion of the meeting, Chairman Kassab acknowledged the presence of Bianca Hendrin.

Ms. Hendrin was present to discuss the nonsmoking environment at MotorCity Casino. Chairman Kassab acknowledged her concern and suggested she speak with MotorCity Casino's management that was present at the meeting.

There being no further public comments, Chairman Kassab adjourned the meeting at 11:59 a.m.  

________________________________________________
Laurie Lander, Board Secretary