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Minutes of the Mississippi Gaming Commission February 18, 1999 Page 1

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Minutes of the Mississippi Gaming Commission February 18, 1999 Page 1 Minutes of the Mississippi Gaming Commission February 18, 1999 Page 1 MINUTES OF THE MISSISSIPPI GAMING COMMISSION Regular Monthly Meeting February 18, 1999 The regular monthly meeting of the Mississippi Gaming Commission was held at 10:00 a.m., Thursday, February 18, 1999, at the Stuart C. Irby Conference Room, Second Floor 202 E. Pearl Street, Jackson, Mississippi. Staff attending were: W. W. Gresham, Jr. Chairman, MS Gaming Commission Victor P. Smith, Commissioner, MS Gaming Commission Robert C. Engram, Commissioner, MS Gaming Commission Chuck Patton, Executive Director, MS Gaming Commission Larry Gregory, Deputy Director, MS Gaming Commission Mick Lura, Chief of Staff, MS Gaming Commission Gary McGee, Chief of Enforcement, MS Gaming Commission John Carpenter, Director of Intelligence, MS Gaming Commission J. Ledbetter, Chief of Investigations, MS Gaming Commission Charlene Pierce, Special Assistant Attorney General, Attorney General's Office Ezzie Rooks, Director of Compliance, MS Gaming Commission Curtis Quinn, Chief of Security, MS Gaming Commission Ray Reed, Agent, Investigations, MS Gaming Commission Paul Waldrop, Agent, Investigations, MS Gaming Commission Brad Herrington, Agent, Investigations, MS Gaming Commission Charlie Phipps, Agent, Investigations, MS Gaming Commission Sonny Weathersby, Agent, Charitable Bingo, MS Gaming Commission Leigh Ann Cappaert, Administrative Assistant, MS Gaming Commission Paula Morgan, Special Agent, Legal Division, MS Gaming Commission Teresa Tucker, Sr. Legal Secretary, Attorney General=s Office Chairman W. W. Gresham, Jr. presided and called the meeting to order at 10:00 a.m. ITEM I. Gary McGee, Chief of Enforcement, gave the invocation. Chuck Patton, Executive Director, recognized and welcomed Clovis Williams, of the Governor=s office, to the meeting. Mr. Patton stated that the next monthly commission meeting would be March 18, 1999 at 10:00 a.m. in the conference room. Minutes of the Mississippi Gaming Commission February 18, 1999 Page 2 Chairman Gresham welcomed General Paul A. Harvey, former Executive Director of the Mississippi Gaming Commission, to the meeting. Also welcomed were Dot Harvey and Carmen Engram. ITEM II. APPROVAL OF MINUTES A. January 21, 1999 EXECUTIVE DIRECTOR'S RECOMMENDATION: "The Executive Director recommends that the minutes of the January 21, 1999, meeting be adopted." Commissioner Engram: Move to adopt recommendation Commissioner Smith: Second RECORDED VOTE: Chairman Gresham: YES Commissioner Engram: YES Commissioner Smith: YES ITEM IV. GAMING MATTERS A. APPLICATION FOR FINDING OF SUITABILITY- Imperial Palace of Mississippi, Inc. 1. Ralph Engelstad (Updated) President; and 2. Elizabeth A. Engelstad (Updated) Secretary and Treasurer Ralph Engelstad was present. Elizabeth A. Engelstad was absent with the Commission’s prior knowledge. EXECUTIVE DIRECTOR'S RECOMMENDATION: “Based upon the investigative reports, the Executive Director recommends that these individuals be found suitable to be associated with a gaming license granted Minutes of the Mississippi Gaming Commission February 18, 1999 Page 3 under the Mississippi Gaming Control Act: 1. Ralph Engelstad 2. Elizabeth A. Engelstad.” Commissioner Smith: Move to adopt recommendation Commissioner Engram: Second RECORDED VOTE: Chairman Gresham: YES Commissioner Engram: YES Commissioner Smith: YES B. APPLICATION FOR FINDING OF SUITABILITY- HWCC – Tunica d/b/a Hollywood Casino 1. Ms. Cassandra Fannie Price-Perry (Initial) Chief Financial Officer. Peyton Prospere, with Maxey, Wann, Begley & Fyke, came forward to introduce Cassandra Fannie Price-Perry to the commission. EXECUTIVE DIRECTOR'S RECOMMENDATION: “Based upon the investigative reports, the Executive Director recommends that Ms. Cassandra Fannie Price-Perry be found suitable to be associated with a gaming license granted under the Mississippi Gaming Control Act.” Commissioner Engram: Move to adopt recommendation Commissioner Smith: Second RECORDED VOTE: Chairman Gresham: YES Commissioner Engram: YES Commissioner Smith: YES C. APPLICATION FOR FINDING OF SUITABILITY- CDS Gaming Company and CDS Services Company 1. Mr. Howard William Yenke (Initial) Chief Executive Officer of Casino Data Systems. ITEM IV. C. WAS DEFERRED. D. RECOMMENDATION FOR LICENSURE – Bally Gaming, Inc. d/b/a Bally Gaming Minutes of the Mississippi Gaming Commission February 18, 1999 Page 4 and Systems Tommy Sheppard, with Watkins, Ludlam, Stennis & Winters, came forward. EXECUTIVE DIRECTOR'S RECOMMENDATION: “The Executive Director recommends that Bally Gaming, Inc. d/b/a Bally Gaming and Systems be granted a multi-site wide area progressive accounting system license to conduct business in the State of Mississippi subject to the following conditions: 1) The license will be issued for a two-year period, beginning February 18, 1999; 2) Licensee will comply with all federal and state laws, including the laws of Mississippi and particularly the Mississippi Gaming Control Act; 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 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; 5) The software program utilized by Bally Gaming, Inc. d/b/a Bally Gaming and Systems must remain available for review and inspection for the Mississippi Gaming Commission, upon request; and 6) Pending the results of background agency checks of key principals.” Commissioner Smith: Move to adopt recommendation Commissioner Engram: Second RECORDED VOTE: Chairman Gresham: YES Commissioner Engram: YES Commissioner Smith: YES Minutes of the Mississippi Gaming Commission February 18, 1999 Page 5 E. REQUEST FOR APPROVAL TO GUARANTY SENIOR SUBORDINATED NOTES AND RESTRICTION ON DISPOSITION OF SECURITIES – Mardi Gras Casino Corporation d/b/a Casino Magic-Bay St. Louis and Biloxi Casino Corporation d/b/a Casino Magic-Biloxi Tommy Sheppard, with Watkins, Ludlam, Stennis & Winters, came forward. Also present was Mike Finnigan, Executive Vice President of Hollywood Park, Inc. EXECUTIVE DIRECTOR'S RECOMMENDATION: “The Executive Director recommends that Hollywood Park, Inc. be authorized to guarantee the stock of its Mississippi subsidiaries (Mardi Gras Casino Corporation and Biloxi Casino Corporation) for the $125 million principle amount of the company’s 9½% Senior Notes under the conditions specified in the request as well as the restrictions on the imposition of the stock of Mardi Gras Casino Corporation d/b/a Casino Magic-Bay St. Louis and Biloxi Casino Corporation d/b/a Casino Magic-Biloxi.” Commissioner Engram: Move to adopt recommendation Commissioner Smith: Second RECORDED VOTE: Chairman Gresham: YES Commissioner Engram: YES Commissioner Smith: YES F. APPLICATION FOR FINDING OF SUITABILITY - Mississippi-I Gaming, L.P. d/b/a/ Boomtown Biloxi, Mardi Gras Casino Corporation d/b/a Casino Magic - Bay St. Louis and Biloxi Casino Corporation d/b/a Casino Magic - Biloxi. 1. Randall Dee Hubbard (Updated) Chairman and Chief Executive Officer - Hollywood Park, Inc. 2. Gordon Michael Finnigan (Updated) Executive Vice President, Chief Financial Officer and President of Sports and Entertainment - Hollywood Park, Inc. Tommy Sheppard, with Watkins, Ludlam, Stennis & Winters, came forward to introduce Gordon Michael Finnigan to the Commission. Mr. Randall Dee Hubbard was absent with the Commissions consent. EXECUTIVE DIRECTOR'S RECOMMENDATION: “Based upon the investigative reports, the Executive Director recommends that these individuals be found suitable to be associated with a gaming license granted under the Mississippi Gaming Control Act: Minutes of the Mississippi Gaming Commission February 18, 1999 Page 6 1. Randall Dee Hubbard 2. Gordon Michael Finnigan.” Commissioner Smith: Move to adopt recommendation Commissioner Engram: Second RECORDED VOTE: Chairman Gresham: YES Commissioner Engram: YES Commissioner Smith: YES ITEM IV. H. WAS TAKEN UP NEXT. H. APPLICATION FOR FINDING OF SUITABILITY – ABD Technologies, Inc. d/b/a ABD Gaming Supply 1. Lawrence Anthony Boone (Initial) President 2. Debra Susan Boone (Initial) Vice President and Secretary/Treasurer Lawrence A. Boone and Debra S. Boone came forward to introduce themselves to the Commission. EXECUTIVE DIRECTOR'S RECOMMENDATION: “Based upon the investigative reports, the Executive Director recommends that these individuals be found suitable to be associated with a gaming license granted under the Mississippi Gaming Control Act: 1. Lawrence Boone; and 2. Debra Susan Boone.” Commissioner Engram: Move to adopt recommendation Commissioner Smith: Second RECORDED VOTE: Chairman Gresham: YES Commissioner Engram: YES Commissioner Smith: YES Minutes of the Mississippi Gaming Commission February 18, 1999 Page 7 G. RECOMMENDATION FOR LICENSURE – ABD Technologies, Inc. d/b/a ABD Gaming Supply EXECUTIVE DIRECTOR'S RECOMMENDATION: “The Executive Director recommends that ABD Technologies, Inc. d/b/a ABD Gaming Supply be granted a distributor’s license to conduct business in the State of Mississippi subject to the following conditions: 1) The license will be issued for a two-year period, beginning February 18, 1999; 2) Licensee will comply with all federal and state laws, including the laws of Mississippi and particularly the Mississippi Gaming Control Act; 3) Licensee will comply with all
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