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.

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 the policies, rules and regulations adopted by the Mississippi Gaming Commission;

5) 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

I. APPLICATION FOR FINDING OF SUITABILITY - MGC, Inc.

1. Mr. Bruce K. Peterson (Updated) Director

Dan Hise, with Butler Snow O’Mara Stevens & Cannada, came forward. Mr. Peterson was not present. EXECUTIVE DIRECTOR'S RECOMMENDATION: “Based upon the investigative reports, the Executive Director recommends that Mr. Bruce K. Peterson 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 8

Commissioner Engram: Move to adopt recommendation Commissioner Smith: Second

RECORDED VOTE: Chairman Gresham: YES Commissioner Engram: YES Commissioner Smith: YES

J. APPLICATION FOR FINDING OF SUITABILITY - Bally’s Olympia Limited Partnership d/b/a Bally’s Saloon and Gambling Hall, Grand Casino of Mississippi, LLC - Gulfport, Grand Casino of Mississippi, Inc. - Biloxi and BL Development Corp. d/b/a Grand Casino - Tunica.

1. Scott Albert LaPorta (Initial) Executive Vice President and Chief Financial Officer - Park Place Entertainment Corporation; Executive Vice President, Secretary and Chief Financial Officer – Bally’s Operator, Inc.; Executive Vice President, Secretary and Chief Financial Officer - Bally’s Tunica, Inc.; Executive Vice President, Chief Financial Officer/Treasurer and Manager - Grand Casinos of Mississippi, LLC - Gulfport; Executive Vice President, Chief Financial Officer and Director - Grand Casinos of Mississippi, Inc.-Biloxi; and Executive Vice President, Chief Financial Officer and Director - BL Development Corp. d/b/a Grand Casino-Tunica; and

2. Stephen Frasier Bollenbach (Updated) Chairman of the Board - Park Place Entertainment Corporation.

Ben Stone and Scott Andress, with Eaton and Cotrell, came forward to introduce Scott Albert LaPorta to the Commission. Stephen Frasier Bollenbach was not present with the Commission’s consent.

1. Scott Albert LaPorta; and 2. Stephen Frasier Bollenbach.” 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 9

K. REQUEST FOR CONTINUOUS APPROVAL FOR INVOLVEMENT IN FOREIGN GAMING – Fitzgeralds Mississippi, Inc. d/b/a Fitzgeralds Casino - Tunica

Ben Stone and Scott Andress, with Eaton and Cotrell, came forward.

EXECUTIVE DIRECTOR'S RECOMMENDATION: “The Executive Director recommends that the Mississippi Gaming Commission waive the requirements of sections §75-76-269 through §75-76-277 of the Gaming Control Act, as consistent with public policy of the State of Mississippi concerning gaming, for Philip D. Griffith, Chairman, President and Chief Executive Officer of Fitzgeralds Mississippi, Inc. d/b/a Fitzgeralds Casino - Tunica and the Trustee of The Philip D. Griffith Gaming Trust, a shareholder who holds more than 5% of Fitzgeralds Gaming Corporation, and any related “licensee,” as defined in section §75-76-269(b), to be involved in foreign gaming in Queenstown, New Zealand.”

Commissioner Smith: Move to adopt recommendation Commissioner Engram: Second

RECORDED VOTE: Chairman Gresham: YES Commissioner Engram: YES Commissioner Smith: YES

L. REQUEST FOR CONTINUOUS APPROVAL FOR INVOLVEMENT IN FOREIGN GAMING – IGT

Ben Stone and Scott Andress, with Eaton and Cotrell, came forward

1. Austria 2. Tasmania, Australia 3. Australian Capital Territory, Australia 4. Northern Territory, Australia 5. New South Wales, Australia 6. Queensland, Australia Minutes of the Mississippi Gaming Commission February 18, 1999 Page 10

7. Victoria, Australia 8. New Zealand.”

Commissioner Engram: Move to adopt recommendation Commissioner Smith: Second

RECORDED VOTE: Chairman Gresham: YES Commissioner Engram: YES Commissioner Smith: YES

M. REQUEST FOR APPROVAL OF COMMON CONTROL – IGT

EXECUTIVE DIRECTOR'S RECOMMENDATION: “The Executive Director recommends that International Game Technology be granted approval to acquire the interest in Access Systems Pty Ltd (“Access”) resulting in the corporation being under common control.”

Commissioner Smith: Move to adopt recommendation Commissioner Engram: Second

RECORDED VOTE: Chairman Gresham: YES Commissioner Engram: YES Commissioner Smith: YES

N. APPLICATION FOR FINDING OF SUITABILITY - Treasure Bay Corp. d/b/a Treasure Bay - Biloxi

1. Mrs. June Mladinich (Update) Landowner.

Jim Warren, Mitchell McNutt Threadgill Smith & Sams, and Gerald Blessey , with Gerald Blessey & Associates, came forward to introduce June Mladinich to the Commission.

Minutes of the Mississippi Gaming Commission February 18, 1999 Page 11

EXECUTIVE DIRECTOR'S RECOMMENDATION: “Based upon the investigative reports, the Executive Director recommends that Mrs. June Mladinich 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

O. APPLICATION FOR KEY EMPLOYEE LICENSE - Gulfside Casino Partnership d/b/a Copa Casino

1. Mr. Russell W. Abbrecht (Initial) Key Employee

ITEM IV. O. WAS DEFERRED.

P. APPLICATION FOR FINDING OF SUITABILITY - Mr. Leonard Hastings Ainsworth.

1. Mr. Leonard Hastings Ainsworth

ITEM IV. P. WAS DEFERRED.

Q. APPLICATION FOR FINDING OF SUITABILITY - Mr. Murad Muhammad

Mr. Murad Muhammad was not present.

EXECUTIVE DIRECTOR'S RECOMMENDATION: “The Executive Director recommends the Commission rescind their order dated May 21, 1998, found on page 3 of the minutes, which found Mr. Murad Muhammad unsuitable to be associated with a gaming license granted under the Mississippi Gaming Control Act.”

Commissioner Smith: Move to adopt recommendation Commissioner Engram: Second

RECORDED VOTE: Chairman Gresham: YES Commissioner Engram: YES Commissioner Smith: YES R. REQUEST FOR APPROVAL TO OPEN – Beau Rivage Resorts, Inc. Minutes of the Mississippi Gaming Commission February 18, 1999 Page 12

ITEM IV. R. had been taken up during a Special Interim meeting on February 16, 1999.

S. PROJECT OVERVIEW AND UPDATE – Hard Rock Hotel and Casino

Dan McDaniel, with Phelps Dunbar, came forward with Greg Garfreea of Full House Resorts and Richard Darwin of Hard Rock Cafe®. They presented an overview of the Hard Rock Hotel Casino project in Biloxi, Mississippi. They stated they would like to open in 2001, if possible. Mr. Garfreea stated that they hoped to be back before the commission within thirty days for site approval.

Commissioner Smith left the meeting, but returned before the end of the presentation.

NO RECOMMENDATION NECESSARY

T. PROPOSED REGULATION – Public Comment

MGC Regulation III. Operations, J. Procedures to Address Problem Gambling.

EXECUTIVE DIRECTOR'S RECOMMENDATION: “The Executive Director recommends that the proposed regulation MGC Regulation III. Operations, J. Procedures to Address Problem Gambling be adopted for public comment. Written comments will be accepted for thirty days and public oral comments will be taken today.”

Commissioner Smith: Move to adopt recommendation Commissioner Engram: Second

RECORDED VOTE: Chairman Gresham: YES Commissioner Engram: YES Commissioner Smith: YES

There were no oral comments.

Minutes of the Mississippi Gaming Commission February 18, 1999 Page 13

U. RECOMMENDATIONS REGARDING WORK PERMIT HEARINGS HELD AND DECISIONS RENDERED ON JANUARY 11, 1999

HEARING EXAMINER’S DECISIONS: - (Copies attached to the record as Exhibit “1”).

The following work permits were revoked:

Kontrell Hargrove Courtney Redmond Lisa G. Williams

The following work permit was not revoked:

Brian Holley

The following work permit was suspended (with suspension stayed):

Jeffery Kennedy

The following work permit denials were reversed:

Mark Wilson

The following work permits were expired and of no force and effect:

Derrell Green Rainier Pastoriza Randy Rosenthal Valdemar K. Tasev

EXECUTIVE DIRECTOR'S RECOMMENDATION: “The Executive Director recommends that the Commission accepts into the minutes the Findings of Facts and recommended actions of the Hearing Examiner, Special Assistant Attorney General Larry J. Stroud.”

Commissioner Engram: Move to adopt recommendation Commissioner Smith: Second

RECORDED VOTE: Chairman Gresham: YES Commissioner Engram: YES Commissioner Smith: YES V. APPEAL OF HEARING EXAMINER’S DECISION – Denial of Work Permit Minutes of the Mississippi Gaming Commission February 18, 1999 Page 14

(Copy attached to the record as Exhibit “2”).

Cynthia A. Watkins

EXECUTIVE DIRECTOR'S RECOMMENDATION: “The Executive Director recommends that the Commission declines to review the Hearing Examiner’s decision on Cynthia A. Watkins.”

Commissioner Smith: Move to adopt recommendation Commissioner Engram: Second

RECORDED VOTE: Chairman Gresham: YES Commissioner Engram: YES Commissioner Smith: YES

Because of the possibility of going into Executive Session for ITEM IV.W., Chuck Patton, Executive Director, called for public comments at this time.

ITEM V.

PUBLIC COMMENTS

There were no public comments.

Commissioner Engram: Moved to close meeting to determine if executive session is necessary for ITEM IV. W.

Commissioner Smith: Second

RECORDED VOTE: Chairman Gresham: YES Commissioner Engram: YES Commissioner Smith: YES

Closed meeting.

Opened meeting. Minutes of the Mississippi Gaming Commission February 18, 1999 Page 15

Motion:

Commissioner Smith : I move that we go into executive session to discuss financial information of Isle of Capri Casino – Tunica required by the commission and requested by the licensee to remain confidential.

Commissioner Engram: Second

RECORDED VOTE: Chairman Gresham: YES Commissioner Engram: YES Commissioner Smith: YES

Closed meeting.

Opened meeting.

W. REQUEST FOR SITE APPROVAL – Isle of Capri Casino – Tunica

Greg Guida, General Counsel and Vice President of Isle of Capri Casino, came forward with Jack Galloway, Ed Orman, and Mark Fulton. Also present was Dan McDaniel of Phelps Dunbar. Mr. Guida stated that there was a July 4, 1999 tentative opening date for the Isle of Capri Casino – Tunica.

EXECUTIVE DIRECTOR'S RECOMMENDATION: “The Executive Director recommends that the purchase of the casino barge currently owned by Harrah’s – Tunica be approved and, further, having observed that the site meets all statutory and regulatory requirements, the Executive Director recommends that the site be approved based on the following conditions:

1) The site approval is effective for a two-year period, beginning February 18, 1999, within which time the holder of the site approval must complete the site development, obtain all agency approvals, and open the property to the public;

2) The holder of the site approval will complete the construction of its casino and infrastructure facilities as set forth in the plan for development which has been presented to the Commission, any deviations from this plan must be specifically approved by the Commission prior to implementation;

3) The holder of the site approval will comply with all federal and state Minutes of the Mississippi Gaming Commission February 18, 1999 Page 16

laws, including the laws of Mississippi and particularly the Mississippi Gaming Control Act;

4) The holder of the site approval will comply with all the policies, rules and regulations adopted by the Mississippi Gaming Commission;

5) The holder of the site approval will comply with and does hereby agree to be bound by all laws, including the Gaming Control Act, of the State of Mississippi; further, the holder of the site approval agrees to adjudicate all legal proceedings (both state and federal) relative to said site approval, in the courts located in the State of Mississippi;

6) The holder of the site approval must locate its vessel in compliance with the definition of navigable waters in Miss. Code Ann. ∋ 27-109- 1 as amended and Mississippi Gaming Regulations.”

Commissioner Engram: Move to adopt recommendation Commissioner Smith: Second

RECORDED VOTE: Chairman Gresham: YES Commissioner Engram: YES Commissioner Smith: YES

A recess was taken at 11:44 a.m. Charitable Bingo matters will be taken up at the 1:00 p.m. session.

Meeting was reconvened at 1:01 p.m.

Staff attending:

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 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 JoAn Miller, Special Agent, Charitable Bingo, MS Gaming Commission Scott Wooten, Agent, Charitable Bingo, MS Gaming Commission Rodney Smith, Agent, Charitable Bingo, MS Gaming Commission Paula Morgan, Special Agent, Legal Division, MS Gaming Commission Minutes of the Mississippi Gaming Commission February 18, 1999 Page 17

Teresa Tucker, Sr. Legal Secretary, Attorney General=s Office

ITEM III.

BINGO MATTERS

A. APPROVALS FOR LICENSURE

(Copy attached to the record as Exhibit “3”).

EXECUTIVE DIRECTOR=S RECOMMENDATION: ΑThe Executive Director recommends that the attached list of organizations be approved for licensure.≅

Commissioner Engram: Moved to adopt recommendation Commissioner Smith: Second

RECORDED VOTE: Chairman Gresham YES Commissioner Engram YES Commissioner Smith YES

B. CHARITABLE BINGO LICENSE

1. Homeless Veterans Base Camp, Inc. 2. Louisville Midday Lions Club 3. Coalition for Citizens with Disabilities

Rick Ward, Director Charitable Bingo, informed the Commissioners that Louisville Midday Lions Club had written a letter to the commission informing them that they were no longer playing bingo.

EXECUTIVE DIRECTOR'S RECOMMENDATION: “The Executive Director recommends that the Commission issue 90-day renewal licenses to Homeless Veterans Base Camp, Inc., and the Coalition for Citizens with Disabilities so that the Commission may evaluate their expenses for the previous license year.”

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 18

Robert Turnage, President of Homeless Veterans Base Camp, Inc., asked to be recognized. Mr. Turnage asked the commission to take into consideration the major theft of $134,000 the charity had suffered putting them over the 60% mark.

ITEM VII.

PUBLIC COMMENTS

The Chairman opened the meeting for public comments on any matter related to charitable gaming, and noted that this discussion would be on the record.

Linda Bond, with ARC, who had previously been denied a license, related her efforts in reducing expenses to bring her operation within the 60/40 rule. She asked the Commission to reconsider her denial of a charitable bingo license. The Executive Director referred the question to the legal division.

Robert Turnage, President of Homeless Veteran’s Base Camp, discussed the need to add entertainment to bingo operations by using dunking books, theme nights, animal calls, etc. He said he had just opened a new $2 million, 49 bed facility and invited the Commissioners down to tour the building. Alonzo Dukes, with Friends of Education, expressed his concerns regarding House Bill 1157 and asked the Commission to oppose the provision requiring 25% of gross revenues to go to charity. Chairman Gresham said he was opposed to the 25% requirement. These comments led to extensive discussion of this issue. John Marley, with M & M Operators, challenged the figures used by the Clarion-Ledger in its editorial about the 25% allocation to charities. Mr. Marley also was concerned that not one representative of the bingo community was present when the bill was taken up on the House floor. In addition, not one legislator said anything positive about bingo. Mark Smith, with Citizens with Disabilities challenged the Commission to attend the meetings to bring out the good that the bingo community had done. Chairman Gresham said he’d be out of the country during two important dates for the bill and that “the bingo community” would have to do the work on revising the 25% requirement. Ruppert “Rudy” Johnson, with Golden Triangle Planning and Development, said he had just returned from the capital and the bill has not yet been assigned. He said they were trying to get it double-referred to the judiciary and finance committees, and, if it did go to judiciary, Senator Rayborn had assured him the bill was as good as dead. Chairman Gresham Minutes of the Mississippi Gaming Commission February 18, 1999 Page 19

stated he supported HB 997 and, in light of the 25% requirement, Chairman Gresham said he was against HB 1157. He indicated that he would continue to work on it further by visiting the capitol the next day and visit with the Lt. Governor and Finance Chairman.

The Commission took the public’s comments under advisement.

ITEM VI.

ADJOURNMENT

There being no further business, the meeting was adjourned at 1:47 p.m.

______W. W. GRESHAM, JR., CHAIRMAN

______ROBERT C. ENGRAM, COMMISSIONER

______VICTOR P. SMITH, COMMISSIONER

______CHARLES PATTON, EXECUTIVE DIRECTOR

ATTEST:

Teresa Tucker