STATE OF MICHIGAN

MICHIGAN GAMING CONTROL BOARD

PUBLIC MEETING

Cadillac Place

3062 W. Grand Blvd., Suite L-700

Detroit, Michigan

TUESDAY, March 9, 2004

6:00 P.M.

MINUTES

On Tuesday, March 9, 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

                                                Judge Michael Stacey

                        Also attending were:

                                                Daniel Gustafson

                                                Patty James

                                                Eric Eggan

                                                D/F/Lt. Vicki Johnson

                                                Ben McMakin

                                                Tom Barker

                                                John Page

                                                Jack Cahill

Business:        Board Chairman Damian Kassab called the meeting to order at 6:05 p.m.  Chairman Kassab noted for the record that all Board members were in attendance and that there was a quorum.  Chairman Kassab further advised that copies of tonight’s agenda were available for the public at the receptionist’s desk.

                        Chairman Kassab stated that the Board members have received copies of the minutes from the February 10, 2004 Board meeting and there being no comments, changes or corrections to the minutes, he requested a motion to approve the minutes from the February 10, 2004 meeting.

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

                        Chairman Kassab next asked Board members to consider a proposed Board Resolution honoring former Board members Richie T. Davis and Roman S. Gribbs and soon to be retired, Assistant Attorney General Eric Eggan. 

                        After brief comments by Board members, it was moved by Judge Stacey and seconded by Judge Friedman that the Board accept the proposed Board Resolution recognizing and honoring the outstanding services of Mr. Davis and Judge Gribbs.  A voice vote was taken.

                        Motion approved.           

                        Next it was moved by Judge Stacey and seconded by Judge Friedman to accept the proposed Board Resolution recognizing and honoring Mr. Eggan.  A voice vote was taken.

                        Motion approved.

                        After brief comments from Mr. Eggan, D/F/Lt. Johnson, Jack Cahill and Dan Gustafson, the Executive Director next presented the Executive Director’s report.  In regards to staffing Mr. Gustafson advised the Board that Rick Percy was hired as a regulation officer in the Board's Licensing Division, and the Casino and Service Industry Section hired a secretary, Wendy Walser, and a Departmental Tech, Craig Goerge.  Mr. Gustafson further advised the Board that the MGCB staff now total 94 with 8 authorized positions yet to be filled. 

                        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 February 29, 2004, the Board has incurred expenditures in the amount of $4,561,070, leaving the unexpended balance of $12,768,130 in appropriated funding for FY 2004. 

                        Mr. Gustafson next reported that all three casinos continue to operate on a seven-day, 24-hour basis, and that Board regulatory and audit staff regularly monitor casino operations and related casino wagering tax returns and revenue and expense records.

                        Mr. Gustafson next advised the Board that the aggregate casino revenues for all three Detroit casinos were up 15.11 percent for the month of February compared to the same month in year 2003.  The gaming taxes for the three Detroit casinos for February 2004 were 8.217 million compared to 7.138 million for the same period last year.

                        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 the Board considered the Licensing Division’s staff recommendations regarding 76 pending Level 1 and Level 2 occupational license applications and 214 occupational renewal requests.  Staff recommended issuance of 74 and denial of 2 license applications for reasons specified in the related background investigative reports and Exhibit 1.

Therefore, it was moved by Judge Friedman and seconded by Judge Stacey that the Board enter an order accepting and adopting the Licensing Division’s staff recommendations regarding the 76 Level 1 and Level 2 occupational license applications as summarized in Exhibit 1, and directing that the Executive Director issue occupational licenses or notices of denial to the named applicants in accordance with the staff’s written recommendations.  The following roll call vote was then taken on the motion:

      Chairman Kassab:      Aye

      Judge Friedman:      Aye     

      Judge Stacey:      Aye

                        Motion carried.

                        Chairman Kassab next invited Mr. Ben McMakin, Deputy Director of the Licensing Division to give a status report on the staff's investigation in the disposition of Mikohn Gaming Corporation's common stock.

                        Upon conclusion of Mr. McMakin's brief summary, the Board next considered the eligibility and suitability of Harold J. Phillips as a required key person/qualifier of Detroit Entertainment, L.L.C, Board File No.  MCC-2004-001.

                        Chairman Kassab acknowledged Mr. McMakin's presence and advised the Board members that Mr. McMakin would answer any questions they may have.  Chairman Kassab also noted for the record the presence of Ms. Cheryl Scott Dube, associate general counsel for Mandalay Resort Group, and representative for Mr. Phillips.

                        There being no questions from Board members, it was moved by Judge Friedman and seconded by Judge Stacey that the Board enter an order finding Harold J. Phillips eligible and suitable as a required qualifier of casino licensee Detroit Entertainment, L.L.C., under the licensing standards and requirements of the Act and Rules of the Board, based upon the background investigation report and recommendation of the Executive Director and the Board's Licensing Division staff.  The following roll call vote was taken:

      Chairman Kassab:      Aye

      Judge Friedman:      Aye     

      Judge Stacey:      Aye

                        Motion carried.

                        The next agenda item considered by the Board was the pending gaming-related supplier license application of Casino Data Systems, Board File No. SL000119-04-001. 

                        Chairman Kassab noted for the record that there were no representatives for Casino Data Systems present at the meeting.

                        There being no questions from Board members, it was moved by Judge Stacey and seconded by Judge Friedman that the Board enter an order finding and concluding that Casino Data Systems and its qualifiers are eligible and suitable for licensure under the licensing standards of the Michigan Gaming Control and Revenue Act, as amended, and Administrative Rules of the Board and accordingly granting the gaming-related supplier license of Casino Data Systems based upon the background investigation report and recommendation of the Executive Director and the Board's Licensing Division staff.  The following roll call vote was taken:

      Chairman Kassab:      Aye

      Judge Friedman:      Aye     

      Judge Stacey:      Aye

                        Motion carried.

                        The Board next considered the Executive Director Report and the Licensing Division's staff recommendation regarding the pending gaming-related supplier license application of Happ Controls, Inc., Board File No. SL000543-04-001.

                        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 enter an order finding and concluding that Happ Controls, Inc., and its qualifiers are eligible and suitable for licensure under the licensing standards and requirements of the Act and Rules of the Board, and accordingly granting the gaming-related supplier license of Happ Controls, Inc., based upon the background investigation report and recommendation of the Executive Director and the Board's Licensing Division staff.  The following roll call vote was taken:

      Chairman Kassab:      Aye

      Judge Friedman:      Aye     

      Judge Stacey:      Aye

                        Motion carried.

                        The final order of business the Board considered was the Executive Director Report and Licensing Division's staff recommendation regarding the pending gaming-related supplier license application of NRT Technology Corporation, Board File No. SL001711-04-001.

                        There being no questions from the Board members, it was moved by Judge Friedman and seconded by Judge Stacey that the Board enter an order finding and concluding that NRT Technology Corporation and its qualifiers are eligible and suitable for licensure under the licensing standards and requirements of the Act and Rules of the Board, and accordingly granting the gaming-related supplier license of NRT Technology Corporation based upon the background investigation report and recommendation of the Executive Director and the Board's Licensing Division staff.  The following roll call vote was taken:

      Chairman Kassab:      Aye

      Judge Friedman:      Aye     

      Judge Stacey:      Aye

                        Motion carried.

                        Chairman Kassab next asked that Mr. McMakin say a few words to correct some matters that were discussed at the last meeting.

                        Mr. McMakin proceeded to correct the misstatement made at the previous Board meeting as to the amount of the delinquent unpaid investigative cost of Eagle Rock Associates, L.L.C.  However, Mr. McMakin reiterated the Board's staff recommendation to deny the non-gaming related supplier license of Eagle Rock Associates, L.L.C.

                        After comments from Mr. Eggan and questions posed by the Board, it was moved by Judge Stacey and seconded by Judge Friedman 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.  The following roll call vote was taken:

            Chairman Kassab:            Aye

            Judge Friedman:            Aye

            Judge Stacey:            Aye

Motion carried.

There being no questions or comments from the public, the meeting was adjourned by Chairman Kassab, at 6:50 p.m.

                              ______

                                Patricia S. James

                                Board Secretary