MINUTES OF THE MISSISSIPPI GAMING COMMISSION. Regular Monthly Meeting October 18, 2012

Transcription

1 MINUTES OF THE MISSISSIPPI GAMING COMMISSION Regular Monthly Meeting October 18, 2012 The regular monthly meeting of the Mississippi Gaming Commission was held at 9:00 a.m., Thursday, October 18, 2012, at the Tunica Roadhouse Casino & Hotel, 1107 Casino Center Drive, Tunica Resorts, Mississippi. Staff attending: John Hairston, Chairman, MS Gaming Commission Nolen Canon, Commissioner, MS Gaming Commission Wally Carter, Commissioner, MS Gaming Commission Allen Godfrey, Executive Director, MS Gaming Commission Eddie Williams, Deputy Director, MS Gaming Commission Jay McDaniel, Deputy Director, MS Gaming Commission Stephanie Sills, Director, Compliance, MS Gaming Commission Ed Wong, Director, Executive Intelligence Division, MS Gaming Commission Sandra Ammons, Director, Enforcement, MS Gaming Commission Patricia Johnson, Branch Director II, MGC Northern District Wayne Havens, Special Enforcement Agent, MGC Northern District Jeremy Herring, Branch Director II, Compliance, MGC Northern District Elizabeth Carr, Special Assistant Attorney General, Attorney General's Office ITEM I. The meeting was called to order at 9:00 a.m. Wayne Havens gave the invocation and Chairman Hairston led the Pledge of Allegiance. Chairman Hairston welcomed Wally Carter to his first meeting as new MGC Commissioner. He also welcomed Representative Richard Bennett, Chairman of the House Gaming Committee, who offered his congratulations to everyone on the 20 th anniversary of gaming in Mississippi. Chairman Hairston also thanked Scott Barber, Regional General Manager of Caesar s Entertainment Corporation, for hosting the 20 th Anniversary Celebration. Chairman Hairston also relayed former Chairman Jerry St. Pé s congratulations on the celebration and his regret that he could not be present for the event. A. Administrative Update: Allen Godfrey made the following administrative announcements: 1. The next regular monthly meeting of the Mississippi Gaming Commission will be held on Thursday, November 29, 2012, beginning at 10:00 a.m. at the Natchez Grand Hotel, 111 Broadway Street, Natchez, Mississippi. The deadline for submission of agenda items for this meeting is October 26, 2012.

2 Page 2 A. APPROVAL OF MINUTES ITEM II. APPROVAL OF MINUTES 1. September 20, 2012 Regular Monthly Meeting EXECUTIVE DIRECTOR S RECOMMENDATION: The Executive Director recommends approval of the Minutes of the September 20, 2012 Regular Monthly Meeting. RECORDED VOTE: Chairman Hairston: ITEM III. GAMING MATTERS YES YES YES A. APPLICATION FOR FINDING OF SUITABILITY BL Development Corp. d/b/a Harrah s Tunica; Casino Computer Programming, Inc.; Grand Casinos of Biloxi, LLC d/b/a Grand Casino Biloxi; Robinson Property Group Corp. d/b/a Horseshoe Casino and Hotel; Tunica Roadhouse Corporation d/b/a Tunica Roadhouse Casino & Hotel 1. Thomas M. Jenkin President of Operations, Caesars Entertainment Operations Company, Inc. Dan Hise, Esquire, of Butler, Snow, O Mara, Stevens & Cannada introduced Mr. Jenkin to the Commission and he provided a brief personal history. Scott Barber, Regional General Manager of Caesar s Entertainment Corporation, was also available to answer any questions. EXECUTIVE DIRECTOR S RECOMMENDATION: Based upon the investigative report, the Executive Director recommends that Mr. Thomas M. Jenkin, as President of Operations for Caesars Entertainment for a holding company of a licensee, be found suitable to be associated with a gaming license granted under the Mississippi Gaming Control Act, subject to the following: 1. The finding of suitability is valid for a period of nine (9) years, beginning October 18, 2012;

3 Page 3 2. Applicant shall file an annual report as required by Mississippi Gaming Commission Regulation II. A. 3; 3. Applicant will comply with all federal and state laws, including the laws of Mississippi and particularly the Mississippi Gaming Control Act; 4. Applicant will comply with all the policies, rules and regulations adopted by the Mississippi Gaming Commission; 5. Applicant will comply with and does hereby agree to be bound by all laws, including the Gaming Control Act, of the State of Mississippi; further, licensee agrees to adjudicate all legal proceedings (both state and federal) relative to said license in the courts located in the State of Mississippi; and 6. The finding of suitability is based on the applicant s ability to maintain satisfactory results for all investigations and agency checks. YES YES B. Request for Continuous Approval for Involvement in Foreign Gaming (Internet Gaming) Robinson Property Group Corp. d/b/a Horseshoe Casino and Hotel; BL Development Corp. d/b/a Harrah s Tunica; Grand Casinos of Biloxi, LLC d/b/a Grand Casino Biloxi; and Tunica Roadhouse Corporation d/b/a Tunica Roadhouse Casino & Hotel. (Documentation attached as Exhibit A ) Dan Hise, Esquire, of Butler, Snow, O Mara, Stevens & Cannada presented this item to the Commission. Thomas Jenkin, President of Operations for Caesars Entertainment Operations Company, Inc. and Scott Barber, Regional General Manager of Caesar s Entertainment Corporation, were available to answer any questions. EXECUTIVE DIRECTOR S RECOMMENDATION: Internet gaming is not legal in the State of Mississippi. The Mississippi Gaming Commission recognizes that other foreign jurisdictions allow Internet gaming. Those Mississippi licensees who choose to engage in Internet gaming in those jurisdictions where it is legal are expected to implement and maintain strict controls to ensure that Internet gaming does not occur in the State of Mississippi, by Mississippi residents or, in any other way, violate Mississippi laws. Since Internet gaming is a new venture with issues unlike any brick and mortar casino, the Mississippi Gaming Commission has determined that close monitoring of Internet gaming activity by Mississippi licensees is necessary.

4 Page 4 The Executive Director recommends that the Mississippi Gaming Commission waive the requirements of sections through of the Gaming Control Act, as consistent with public policy of the State of Mississippi concerning gaming, for Robinson Property Group Corp., BL Development Corp., Grand Casinos of Biloxi, LLC, Tunica Roadhouse Corporation, and any related licensee, as defined in section (b), to be involved in foreign gaming in the jurisdictions set forth in EXHIBIT A. The waiver with respect to Gibraltar shall be: (i) for conducting business in those jurisdictions in which Internet gaming is legal; (ii) for a period of one (1) year, effective November 20, 2012, through November 19, 2013; and (iii) may be revoked at any time deemed appropriate by the Mississippi Gaming Commission. Notwithstanding this waiver, the Mississippi Gaming Commission reserves the right to request such information as it deems necessary to monitor Internet gaming activity. YES YES C. APPLICATION FOR FINDING OF SUITABILITY Lighthouse Point, LLC d/b/a Trop Casino Greenville 1. Anthony P. Rodio President and Chief Executive Officer Scott E. Andress, Esquire, of Balch & Bingham, introduced Mr. Rodio to the Commission and he provided a brief personal history. EXECUTIVE DIRECTOR S RECOMMENDATION: Based upon the investigative report, the Executive Director recommends that Mr. Rodio, as President and CEO of a holding company of a licensee, be found suitable to be associated with a gaming license granted under the Mississippi Gaming Control Act, subject to the following: 1. The finding of suitability is valid for a period of nine (9) years, beginning October 18, 2012; 2. Applicant shall file an annual report as required by Mississippi Gaming Commission Regulation II. A. 3;

5 Page 5 3. Applicant will comply with all federal and state laws, including the laws of Mississippi and particularly the Mississippi Gaming Control Act; 4. Applicant will comply with all the policies, rules and regulations adopted by the Mississippi Gaming Commission; 5. Applicant will comply with and does hereby agree to be bound by all laws, including the Gaming Control Act, of the State of Mississippi; further, licensee agrees to adjudicate all legal proceedings (both state and federal) relative to said license in the courts located in the State of Mississippi; and 6. The finding of suitability is based on the applicant s ability to maintain satisfactory results for all investigations and agency checks. YES YES D. Request for Approvals Magnolia Hill, LLC d/b/a Riverwalk Casino & Hotel 1. Transfer of Equity Interests or Securities of Magnolia Hill, LLC 2. Registration of HCRH, LLC as a Holding Company of Magnolia Hill, LLC 3. Registration of Churchill Downs Incorporated as a Publicly Traded Corporation of Magnolia Hill, LLC 4. Acquisition of Control of Magnolia Hill, LLC 5. De-Registration of High River Gaming, LLC, Magnolia River, LLC and Magnolia Mile, LLC as Holding Companies of Magnolia Hill, LLC Scott E. Andress, Esquire, of Balch & Bingham, presented this item to the Commission. Ekumene Lysonge, Vice President, Legal Affairs, for Churchill Downs, Inc., Paul Seeman, General Counsel for LAMB Partners, representing the selling owners and Rob Long, General Manager for Riverwalk Casino, were present to answer any questions. Mr. Lysonge expressed Churchill Downs excitement about the Riverwalk property. Chairman Hairston stated that the Commission appreciated their investment in the state of Mississippi, especially a quality company like Churchill Downs. EXECUTIVE DIRECTOR S RECOMMENDATION: With past Commission action, key principals of the company have been found suitable. The Executive Director recommends that:

6 Page 6 1. The Mississippi Gaming Commission grant prior approval for the transfer of 100% of the equity interests or securities of Magnolia Hill, LLC from Magnolia Mile, LLC to HCRH, LLC; 2. The Mississippi Gaming Commission grant approval to HCRH, LLC for a finding of suitability and registration as a holding company of Magnolia Hill, LLC effective as of the closing of the proposed transaction; 3. The Mississippi Gaming Commission grant approval to Churchill Downs Incorporated for a finding of suitability and registration as a publicly traded corporation of Magnolia Hill, LLC effective as of the closing of the proposed transaction; 4. The Mississippi Gaming Commission grant approval to Churchill Downs Incorporated for the proposed acquisition of control of Magnolia Hill, LLC; 5. The Mississippi Gaming Commission grant approval to each of High River Gaming, LLC, Magnolia River, LLC and Magnolia Mile, LLC to de-register as a holding company of Magnolia Hill, LLC effective as of the closing of the proposed transaction, and 6. The approvals granted herein are subject to the condition that the proposed transactions are completed no later than October 17, Approvals related to proposed transactions that are not consummated by October 17, 2013, shall automatically expire. YES YES E. APPLICATION FOR FINDING OF SUITABILITY Silver Slipper Casino Venture, LLC d/b/a Silver Slipper Gambling Hall and Saloon 1. Barth F. Aaron Secretary and General Counsel Amy Elder, Esquire, of Baker, Donelson, Bearman, Caldwell and Berkowitz, introduced Mr. Aaron to the Commission and he provided a brief personal history. Mr. Aaron also thanked the Commission s Investigative staff for their professionalism. EXECUTIVE DIRECTOR S RECOMMENDATION: Based upon the investigative report, the Executive Director recommends that Mr. Barth F. Aaron, as Secretary and General Counsel of a holding company and

7 Page 7 executive officer of a licensee, be found suitable to be associated with a gaming license granted under the Mississippi Gaming Control Act, subject to the following: 1. The finding of suitability is valid for a period of nine (9) years, beginning October 18, 2012; 2. Applicant shall file an annual report as required by Mississippi Gaming Commission Regulation II. A. 3; 3. Applicant will comply with all federal and state laws, including the laws of Mississippi and particularly the Mississippi Gaming Control Act; 4. Applicant will comply with all the policies, rules and regulations adopted by the Mississippi Gaming Commission; 5. Applicant will comply with and does hereby agree to be bound by all laws, including the Gaming Control Act, of the State of Mississippi; further, licensee agrees to adjudicate all legal proceedings (both state and federal) relative to said license in the courts located in the State of Mississippi; and 6. The finding of suitability is based on the applicant s ability to maintain satisfactory results for all investigations and agency checks. YES YES F. Request for Continuous Approval for Involvement in Foreign Gaming (Internet Gaming) WMS Gaming Inc. Amy Elder, Esquire, of Baker, Donelson, Bearman, Caldwell and Berkowitz, presented this item to the Commission. EXECUTIVE DIRECTOR S RECOMMENDATION: Internet gaming is not legal in the State of Mississippi. The Mississippi Gaming Commission recognizes that other foreign jurisdictions allow Internet gaming. Those Mississippi licensees who choose to engage in Internet gaming in those jurisdictions where it is legal are expected to implement and maintain strict controls to ensure that Internet gaming does not occur in the State of Mississippi, by Mississippi residents or, in any other way, violate Mississippi laws. Since Internet gaming is a new venture with issues unlike any brick and mortar casino, the Mississippi Gaming

8 Page 8 Commission has determined that close monitoring of Internet gaming activity by Mississippi licensees is necessary. The Executive Director recommends that the Mississippi Gaming Commission waive the requirements of sections through of the Gaming Control Act, as consistent with public policy of the State of Mississippi concerning gaming, for WMS Gaming, Inc., and any related licensee (including, but not limited to, WMS Industries, Inc.) as defined in section (b), to be involved in foreign gaming in the jurisdiction of Nevada. The waiver with respect to Nevada shall be: (i) for conducting business in those jurisdictions in which Internet gaming is legal; (ii) for a period of one (1) year, effective October 18, 2012, through October 17, 2013; and (iii) subject to revocation at any time as deemed appropriate by the Mississippi Gaming Commission. Notwithstanding this waiver, the Mississippi Gaming Commission reserves the right to request such information as it deems necessary to monitor Internet gaming activity. YES YES G. Request for Approvals RIH Acquisitions MS I, LLC d/b/a Resorts Tunica and RIH Acquisitions MS II, LLC d/b/a Bally s Saloon, Hotel & Gambling Hall 1. Finding of Suitability of Foundation Gaming Group, LLC, as Casino Manager of RIH Acquisitions MS I, LLC and RIH Acquisitions MS II, LLC Amy Elder, Esquire, of Baker, Donelson, Bearman, Caldwell and Berkowitz, presented this item to the Commission. Greg Guida, CEO of Foundation Gaming Group, LLC and Allan Solomon, Chairman of Foundation Gaming Group, LLC, were available to answer any questions. Greg Guida congratulated Tunica for its 20 th year of gaming, but offered that the first casino to open was the Isle of Capri in Biloxi. Commissioner Canon complimented the group on the facelift of Bally s and Resorts Casinos. EXECUTIVE DIRECTOR S RECOMMENDATION: With past Commission action, key principals of the company have been found suitable. The Executive Director recommends that:

9 Page 9 1. The Mississippi Gaming Commission grant approval to Foundation Gaming Group, LLC, a finding of suitability as Casino Manager of RIH Acquisitions MS I, LLC and RIH Acquisitions MS II, LLC, subject to the following conditions: (a) (b) (c) The finding of suitability is valid for a period of two (2) years, effective November 29, 2012, through November 28, 2014; The Applicant shall continue to actively market the properties for sale and take reasonable steps to identify potential purchasers of both properties; Prior to the next scheduled licensure of RIH Acquisitions MS I, LLC and RIH Acquisitions MS II, LLC (currently set to expire on April 24, 2014), the Applicant will provide the Commission with detailed operational forecasts for the relevant properties, and shall give an assessment of the likelihood that the properties will continue to operate under the current organizational structure. (d) The finding of suitability will ultimately expire on November 28, 2014, unless the Commission is provided substantive information that an extension is warranted; (e) (f) (g) (h) Licensee will comply with all federal, state and local laws, including the laws of the State of Mississippi and particularly the Mississippi Gaming Control Act; Licensee will comply with all the policies, rules and regulations adopted by the Mississippi Gaming Commission; Licensee will comply with and does hereby agree to be bound by all laws, including the Gaming Control Act, of the State of Mississippi; further, licensee agrees to adjudicate all legal proceedings (both state and federal) relative to said license in the courts located in the State of Mississippi; and The license is based on the licensee s ability to maintain satisfactory results for all investigations and agency checks. YES YES H. Request for Approvals Legends Gaming of Mississippi, LLC d/b/a DiamondJacks Hotel and Casino 1. Transfer of Equity Interests or Securities of Legends Gaming, LLC

10 Page Finding of Suitability of GDM Asset Holdings, Inc., as a Greater than 5% Shareholder Thomas B. Shepherd, Esquire, of Jones, Walker, Waechter, Poitevent, Carrére and Denégre, presented this item to the Commission. EXECUTIVE DIRECTOR S RECOMMENDATION: The Executive Director recommends that: 1. The Mississippi Gaming Commission grant prior approval for the transfer of 900 Series A Common Units of Legends Gaming, LLC, from G. Dan Marshall to GDM Asset Holdings, Inc.; and 2. The Mississippi Gaming Commission grant approval to GDM Asset Holdings, Inc., for a finding of suitability as a greater than 5% Shareholder of Legends Gaming, LLC, subject to the following conditions: (a) (b) (c) (d) (h) The finding of suitability is valid for a period of nine (9) years, effective October 18, 2012, through October 17, 2021; Applicant will comply with all federal, state and local laws, including the laws of the State of Mississippi and particularly the Mississippi Gaming Control Act; Applicant will comply with all the policies, rules and regulations adopted by the Mississippi Gaming Commission; Applicant will comply with and does hereby agree to be bound by all laws, including the Gaming Control Act, of the State of Mississippi; further, applicant agrees to adjudicate all legal proceedings (both state and federal) relative to said finding of suitability in the courts located in the State of Mississippi; and The finding of suitability is based on the applicant s ability to maintain satisfactory results for all investigations and agency checks. Motion to Adopt Recommendation YES YES I. Recommendation for Licensure as a Manufacturer and Distributor Global Cash Access, Inc.

11 Page 11 Thomas B. Shepherd, Esquire, of Jones, Walker, Waechter, Poitevent, Carrére and Denégre, presented this item to the Commission. Kacy Drury, Vice President of Compliance, was also available to answer any questions. EXECUTIVE DIRECTOR S RECOMMENDATION: With past Commission action, key principals of the company have been found suitable. The Executive Director recommends that Global Cash Access, Inc. be granted a manufacturer and distributor s license to conduct business in the State of Mississippi subject to the following conditions: (a) The license will be issued for a three-year period, effective October 18, 2012, through October 17, 2015; (b) (c) (d) (e) (f) Licensee will comply with all federal, state and local laws, including the laws of the State of Mississippi and particularly the Mississippi Gaming Control Act; Licensee will comply with all the policies, rules and regulations adopted by the Mississippi Gaming Commission; Licensee will comply with and does hereby agree to be bound by all laws, including the Gaming Control Act, of the State of Mississippi; further, licensee agrees to adjudicate all legal proceedings (both state and federal) relative to said license in the courts located in the State of Mississippi; Licensee and its affiliated companies and subsidiaries will submit quarterly reports detailing any and all new, current, or pending litigation in which the companies are a party. The report shall contain the parties, the court in which the matter has been filed, the status, and brief summary of each case. The report shall be submitted to the Mississippi Gaming Commission by the 15 th day of each new quarter; and The license is based on the licensee s ability to maintain satisfactory results for all investigations and agency checks. Motion to Adopt Recommendation YES YES J. Recommendations Regarding Work Permit Hearings Held and Decisions Rendered (Documentation attached as Exhibit 1 ) 1. Saundra Hicks

12 Page Alisha Toler No one appeared before the Commission. EXECUTIVE DIRECTOR S RECOMMENDATION The Executive Director recommends the Commission accept the Findings of Fact and decisions of the Hearing Examiner in the above-referenced matters. YES YES ITEM V. PUBLIC COMMENT None. ITEM VI. CHARITABLE GAMING MATTERS A. Recommendation for Approval of Licensure Twelve Months (Documentation attached at Exhibit 2 ) CHARITABLE ORGANIZATION Delta Regional Foundation ADDRESS 804 Oakwood Drive Clinton, MS EXECUTIVE DIRECTOR S RECOMMENDATION: The Executive Director recommends that the previously identified organization be approved for licensure, subject to the following conditions: 1. The license will be issued for a twelve month period effective November 1, 2012 through October 31, 2013; 2. Licensee will comply with all federal and state laws, including the laws of Mississippi and particularly, the Mississippi Charitable Bingo Law;

13 Page Licensee will strictly comply yearly with the Charitable Gaming Regulations and particularly, Regulation L. Authorized Expenditures, Section 12 (known as the 60/40 Rule and the 65/35 Rule); 4. Licensee will comply with all the policies, rules and regulations adopted by the Mississippi Gaming Commission; 5. Licensee will comply with and does hereby agree to be bound by all laws, including the Mississippi Charitable Bingo Law; further, licensee agrees to adjudicate all legal proceedings (both state and federal) relative to said license in the courts located in the State of Mississippi; and 6. The contact person, supervisor, alternate supervisor and anyone assisting in the holding, operating, or conducting of a licensed bingo game are and continue to be suitable, in the discretion of the Mississippi Gaming Commission, to be so associated with charitable bingo. Motion to Adopt Recommendation YES YES B. Recommendation for Approval of Licensure Manufacturer (Documentation attached at Exhibit 3 ) 1. Arrow International, Inc. EXECUTIVE DIRECTOR S RECOMMENDATION: The Executive Director recommends that the previously identified organization be approved for licensure, subject to the following conditions: 1) The license will be issued for a twelve month period effective November 1, 2012 through October 31, 2013; 2) Licensee will comply with all federal and state laws, including the laws of Mississippi and particularly, the Mississippi Charitable Bingo Law; 3) Licensee will comply with all the policies, rules and regulations adopted by the Mississippi Gaming Commission; 4) Licensee will comply with and does hereby agree to be bound by all laws, including the Mississippi Charitable Bingo Law; further, licensee agrees to

14 Page 14 adjudicate all legal proceedings (both state and federal) relative to said license in the courts located in the State of Mississippi. Motion to Adopt Recommendation YES YES C. Request for Approvals American Legion Post #1776 Payment of Attorney Fees, Mr. Brit Singletary and Mr. Hiram Eastland EXECUTIVE DIRECTOR S RECOMMENDATION: The Executive Director recommends that it approve for payment, the request of American Legion Post #1776 to Mr. Brit Singletary and Mr. Hiram Eastland, for charges related to reviewing and advising American Legion Post #1776 on Charity Audit. Motion to Adopt Recommendation YES YES None. ITEM VI. PUBLIC COMMENT ADJOURNMENT Prior to adjourning, Commissioner Canon commented that it was wonderful to see the transformation of Tunica due to gaming. He further commented that the date of October 18 th was appropriate for the celebration to be held later that night and he looked forward to seeing everyone. There being no further business, the meeting was adjourned at 10:00 a.m.

15 Page 15 JOHN HAIRSTON, CHAIRMAN NOLEN CANON, COMMISSIONER WALLY CARTER, COMMISSIONER ALLEN GODFREY, EXECUTIVE DIRECTOR ATTEST: ELIZABETH CARR SPECIAL ASSISTANT ATTORNEY GENERAL MISSISSIPPI GAMING COMMISSION