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M 920930 (RMA, CMA
M 920930 (RMA, CMA
M 920930 (RMA, CMA
State Capitol
House Appropriations Committee Room Jackson, Mississippi 10:00 a.m.
AGENDA
I. Minutes/Regular Meeting - September 3, 1992 Minutes/Special Meeting - September 11, 1992
II. Request
Grand Casinos of Mississippi, Inc.
III. Site Assessments
A. Gulfside Casino, Inc. - Gulfport 1. Presentation
2. Public comments
3. Recommendation - Executive Director
B. Casino One Corporation - Biloxi 1. Presentation
2. Public Comments
3. Recommendation - Executive Director
C. Grand Casinos of Mississippi, Inc. - Biloxi 1. Presentation
2. Public Comments
3. Recommendation - Executive Director
D. Mississippi Gaming Corporation dba Back Bay Casino Biloxi
1. Presentation 2. Public Comments 3. Recommendation - Executive Director
IV. Recommendation on Finding of Suitability
A. Roger H. Frommelt
Application for a Finding of Suitability as a Member of the Board of Directors of Casino Magic corporation
1. Investigative Report
2. Public Comments
3. Recommendation - Executive Director
BE IT REMEMBERED that the Mississippi Gaming Commission met at 10:00 a.m., Wednesday,
September 30, 1992, in the Appropriations Committee Room on the second floor of the Mississippi State
Capitol Building, Jackson, Mississippi.
Staff in attendance and individuals providing comments were:
Ed Buelow, Jr., Chairman and Commissioner of MSTC, Presiding
William W. Tann, Associate Commissioner, MSTC
Lorenzo Creighton, Executive Director, MS Gaming Commission
Patsy Knowles, Investigator, MS Gaming Commission
Cindy Livingston, Investigator, MS Gaming Commission
Bruce Nourse, Deputy Director, MS Gaming Commission
Jason Statham, Investigator, MS Gaming Commission
Allen Godfrey, Tax Auditor, Miscellaneous Tax Division, MSTC
Bobby Long, Legal Division, MSTC
Judy Stein, Legal Division, MSTC
Kathy Waterbury, Miscellaneous Tax Division, MSTC
Wilson Carroll, Attorney General's Office
Carole Edds, Attorney General's Office
Sam Begley, Lady Luck Mississippi, Inc.
Bryan Bolson, President, Casino One Corporation, Biloxi, MS
Bobby Bourgeous, Casino One Corporation, Biloxi, MS
Tom Brosig, Grand Casinos of Mississippi, Inc.
Michael Cavanaugh, MS Gaming Corporation, Biloxi, MS
Jan Duker, Children's Advocacy Center, Jackson, MS
Roger H. Frommelt, Casino Magic Corporation
Terry Green, Gulfside Casino, Inc., Gulfport, MS
John Jeter, MS Paralysis Association
Hugh Keating, Gulfside Casino, Inc., Gulfport, MS
Wayne K. Lund, Casino Magic Corporation
Jose Marrero, IRS, Jackson, MS
Dan McDaniel, Heidleberg & Woodriff, Jackson, MS
Stanley McDonald, President, Gulfside Casino, Inc.
Keith Rogers, Chairman, Families for Quality Life
Tommy Shephard, Grand Casinos of Mississippi, Inc.
Marlin Torguson, Casino Magic Corporation
George Williams, MS Gaming Corporation, Biloxi, MS
Robert Wood, Tunica/Splash Casino, Tunica, MS
For the next site assessment, Casino One Corporation at Biloxi, Scott Leavenway introduced Bobby
Bourgeous, Vice President, and Bryan Bolson, President, who then gave a presentation on this entity.
Commissioner Buelow called for public comments, and there being none, returned the floor to Bruce
Nourse for his recommendation. Mr. Nourse recommended the approval of the site for Casino One
Corporation at Biloxi: this site does meet all statutory and regulatory requirements of the Mississippi
Gaming Control Act. The Commission voted unanimously to accept the recommendation of Mr. Nourse as
to the site approval for Casino One Corporation at Biloxi.
For the next site assessment, Grand Casinos of Mississippi, Inc., Tommy Shephard informed the
Commission that this entity stood on the recommendation of the Executive Director. Commissioner
Buelow called for public comments, and Keith Rogers stated that he thought the revenues of the two
casinos, both owned by the same people, should be aggregated so that no tax revenue is lost. Mr.
Nourse, to clarify Mr. Rogers' concern, stated that the site of Grand Casinos is next door to the Casino
One Corporation site. Mr. Nourse then recommended approval of the site for Grand Casinos of
Mississippi, Inc. at Biloxi: this site does meet all statutory and regulatory requirements of the Mississippi
Gaming Control Act. The Commission voted unanimously to accept the recommendation of Mr. Nourse as
to the site approval for Grand Casinos of Mississippi, Inc. at Biloxi.
For the final site assessment on the agenda, Michael Cavanaugh and George Williams gave a
presentation to the Commission on Mississippi Gaming Corporation, doing business as Back Bay Casino,
located at Biloxi. Upon questioning by Mr. Creighton, Mr. Cavanaugh informed the Commission that this
entity is currently in the process of negotiating to obtain all the property in close proximity to the proposed
site, and it does anticipate acquiring this property, including the Community Center known as the Back
Bay Addition. Commissioner Buelow called for public comments, and there being none, turned the floor
over to Mr. Nourse for his recommendation. Mr. Nourse, stating that this site does meet all statutory and
regulatory requirements of the Mississippi Gaming Control Act, recommended approval of the site for
Mississippi Gaming Corporation, d/b/a Back Bay Casino, at Biloxi with the following conditions: the
Community Center be relocated; and the site receives appropriate zoning approval from the Biloxi City
Council. The Commission voted unanimously to accept this recommendation with the stated conditions
for the site approval of Mississippi Gaming Corporation, doing business as Back Bay Casino at Biloxi.
For the next item on the agenda, the Recommendation on Finding of Suitability, the Commissioners had
no questions on the investigative report of Roger H. Frommelt and there was no public comment. Mr.
Nourse recommended that Roger H. Frommelt be found suitable to be associated with the licensee,
Mardi Gras Casino Corporation, as a member of the Board of Directors of Casino Magic Corporation, the
licensee holding company, with the condition that the Executive Director give final approval once the FBI
fingerprint check is received and reviewed. This recommendation for the finding of suitability for Roger H.
Frommelt passed unanimously.
For the next Recommendation on Finding of Suitability, the Commissioners had no questions on the
investigative report of Wayne K. Lund and there was no public comment. Mr. Nourse recommended that
Wayne K. Lund be found suitable to be associated with the licensee, Mardi Gras Casino Corporation, as
a member of the Board of Directors of Casino Magic Corporation, the licensee holding company, with the
condition that the Executive Director give final approval once the FBI fingerprint check is received and
reviewed. This recommendation for the finding of suitability for Wayne K. Lund passed unanimously.
For Item V. of the agenda Recommendation for Final Approval to Commence Gaming Operations, Mardi
Gras Casino Corporation, doing business as Casino Magic at Bay St. Louis, Mr. Nourse read the
conditions placed upon the license. All conditions except condition e. have been net. For condition e., Mr.
Nourse recommended approval of the independent gaming accounting firm of Piersey, Bowler, Taylor
and Turner to perform annual audits of this entity. Hearing no objections, the Commission unanimously
approved this recommendation. The only approval lacking at this point is approval of the surveillance
system, and that is scheduled to be handled this afternoon. Commissioner Buelow called for public
comment, and Keith Rogers expressed his concern regarding the scheduled open house occurring on the
vessel which will allow children in the casino. Mr. Nourse recommended approval of the Mardi Gras
Casino Corporation application to commence gaming operations with the following conditions: licensee
will not commence gaming operations until the licensee has certified to the Executive Director that all
required permits have been received and approval is granted by the Executive Director. Commissioner
Tann moved to accept this recommendation, and the recommendation was unanimously approved.
For the Gaming Licensee Status Report of Lady Luck Mississippi, Inc., Sam Begley informed the
Commission that this boat is presently being constructed in Greenville, and is on schedule for a March,
1993 opening at Natchez.
For the Gaming Licensee Status Report of Tunica Casino, doing business as Splash Casino, Robert
Wood updated the Commission on the status of this entity, and stated that the estimated opening date is
between October 10th and 15th.
For Item VII.A. of the agenda, Legal Matter Update, Carole Edds informed the Commission that a hearing
on the Ladner appeal is scheduled for October 5th, and the Pratt matter is scheduled for hearing on
November 9th.
For Item VII.B., IRS - Memo of Understanding and Waiver Update, Mr. Creighton informed the
Commission that this Memorandum is a two-way release of information. Jose Marrero, Chief of Criminal
Investigations, IRS, informed the Commission that this memorandum will cover all of the gaming industry,
including bingo. Mr. Creighton recommended that the Commission approve this Memorandum of
Understanding and the supporting documentation. The Commission unanimously approved this
recommendation, and Commissioner Buelow thanked the IRS for its coordination with the Tax
Commission and stated that the Tax Commission looks forward to a good working relationship between
the two agencies.
For the Update on Gaming School Regulations, Mr. Creighton requested that the Commission approve
the proposed Gaming School Regulations and stated that these regulations can be changed as needed.
In lieu of approving these regulations, Bobby Long suggested and the Commission agreed to authorize
the filing of the notice of intent to file these regulations with the Secretary of State's Office and the
Commission would look at these proposed regulations at the next Commission meeting.
Additional applications include: Bertrand F. Hull, Distributor, Las Vegas, NV; CHIPCO International Ltd.,
Manufacturer, Windham, Maine; Grand Casinos of Mississippi, Inc., Gaming Operation, Harrison County,
MS; Mississippi Gaming Corporation, doing business as Dockside Casino, Gaming Operation, Warren
County, MS; Riverside Amusement Company, Inc., Distributor, New Orleans, LA; and Riverboat
Corporation of Mississippi, Gaming Operation, Warren County, MS.
For the Investigative Status of Grand Casinos of Mississippi, Inc. Gene Hill informed the Commission that
the Gulfport Development plan should be in front of the Commission by October 12. The investigations on
all but one individual should be complete by October 12. Tommy Shephard noted that both vessels have
basically the same development plans.
Commissioner Buelow called for public comments, and Keith Rogers expressed his concerns about
underage gamblers, stated that the taxation of casinos is important, and questioned the withholding of
winnings. Commissioner Buelow explained that all winnings beginning at $1,000 are taxed at 5%. Andy
Halbrook, Washington County Convention and Business Bureau, stated that Washington County is
looking forward to opening a casino. Commissioner Buelow answered questions from T.J. Rant,
Chairman, Center for Independent Learning, regarding the Bingo Regulations.
ASSOCIATE COMMISSIONER
Commissioner Johnson was not present at this meeting.
ASSOCIATE COMMISSIONER
APPLICANTS SUBMITTED FOR APPROVAL AS COMMERCIAL LESSORS: 09/30/92
B&S Enterprises Dillard Enterprises MS Leasing & Mgmt.Serv.
Old Crisis Burn Center AMVET #355 Imperial Palace Bingo
2548 Marshall Road 601 E. President St. 3243 Medgar Evers Blvd.
Biloxi, MS 39531 Tupelo, MS 38801 Jackson, MS 39213
Bagley Leasing First Bingo, Inc. MS Leasing & Mgmt.Serv.
Good Samaritan Center 707 Highway 90Skate City Bingo
622 Kingwood Circle Waveland, MS 39576 Highway 98 West
Jackson, MS 39212 Summit, MS 39666
Bingo 51 Leon Jawg-Assoc.of MS Leasing & Mgmt.Serv.
Mart 51 Retired Citizens Tracetown Bingo
1700 Terry Road 1925 Hwy. 49 East Tracetown Shopping Cen.
Jackson, MS 39204 Yazoo City, MS 39194 Natchez, MS 39120
Casino Coast Enterprises Mike Vosburgh-Family Partners Home Supply
Broadway Shopping Plaza Fun Center One and One
Hattiesburg, MS 39401 224 Wilson Drive 995 South West Street
Senatobia, MS 38668 Jackson, MS 39225
Casino Coast Enterprises Moonlake Ent. Paul Lacoste AMVETS #1
Highway 49 North Old Lula Elem. School 1221 Ellis Avenue Gulfport, MS 39503 PO Box 3034
Jackson, MS 39209 West Helena, AR 72390
Casino Coast Enterprises MS Leasing & Mgmt.Serv. Robert Pope Bingo Town
3517 Denny Avenue 1525 Terry Road 1225 Sunset Drive
Pascagoula, MS 39567 Jackson, MS 39204 Grenada, MS 38901
Columbus Investments MS Leasing & Mgmt.Serv. Robert Pope-Cleveland
5918 W. Courtyard Dr. Bingo Depot 409 South Street
Austin, TX 78730 Jackson Square Center Cleveland, MS 38732 2460 Terry Road
Jackson, MS 39204
D&D Construction, Inc. MS Leasing & Mgmt.Serv. Robert Pope-Village Sq.
Desoto AMVETS Bingo-Rama 2727 Old Canton Road
6768 Hwy. 51 North 2460 Terry Rd. #27T Suite 173
Horn Lake, MS 38637 Jackson, MS 39204 Jackson, MS 39216
Smith Company James StockstillTupelo Industries, Inc.
2510 Goodman Road Bingo Palace 5918 West Courtyard Dr. Horn Lake, MS 38637 1309 S. Haugh
Avenue Austin, TX 78730 Picayune, MS 39466
WHE Limited FCUOA WHE Limited Western, Inc.
800 Highway 1 South FCUOA
Greenville, MS 38701 Highway 49 South Sidon, MS 38930
APPLICANTS SUBMITTED FOR FOR OPERATOR'S CONDITIONAL 09/30/92
APPROVAL LICENSE:
Bobs Amusement Collins Games of MS Hancock Amusement
1203-A 105th Avenue 2829 Lakeland Drive 620 North Central
Amory, MS 38821 Jackson, MS 39208 Waveland, MS 39576
Henley Entertainment Roberts Amusement
2666 Airport Road South 509 8th Street
Naples, FL 33962 Amory, MS 38821
APPLICANTS SUBMITTED FOR FOR DISTRIBUTOR'S CONDITIONAL
LICENSE: 09/30/92
APPROVAL
i Malone Sales, Inc.
Bingo King
3211 Nebraska Avenue 2113 East Canal' 1625 Handy Avenue
Council Bluffs, IA 51501 Picayune, MS 39466 Jackson, MS 39204
Roy, Inc. US Amusements Video-Tab, Inc.
dba Jones Brothers 3350 Stone Bend Drive 2460 Terry Road #27-P
3 Braswell Road Hermitage, TN 37076 Jackson, MS 39204
Hattiesburg, MS 39401
APPLICANTS SUBMITTED FOR APPROVAL FOR MANUFACTURER'S CONDITIONAL LICENSE:
09/30/92
Arrow International, Inc. American Games
9900 Clinton Road 504 34th Avenue
Brooklyn, OH 44144 Council Bluffs IA 51501
Bingo King
3211 Nebraska Avenue Council Bluffs IA 51501
Infinational Technologies MAST Optical Systems
9335 N. 48th Street 4673 Aircenter Circle
Omaha, NE 68152 Reno, NV 89502
Trade Products, Inc. 2807 Lincoln Way Lynwood, WA 98037
Universal ManufacturingClarence J. Venne
5450 Deramus 1425 Hanford St+t
Kansas City, MO 64120 Levittown, PA 19057
CHARITIES WHO SUBMITTED MULTIPLE LOCATIONS APPLICATIONS: 09/30/92
Paralyzed Veterans of America-Bayou Chapter 25194 Discovery Bay Drive
Pass Christian, MS 39571-5507
CHARTER STATES ORGANIZATION IS DOMICILED IN NEW ORLEANS, LA
LOCATIONS:
1. Broadway Shopping Plaza/Hattiesburg, MS 39401 2. 3517 Denny Avenue/Pascagoula, MS 39567
3. Highway 49 North/Gulfport, MS 39503 4. Highway 51 South/Brookhaven, MS 39601
MCPCA:
1. Children First, Inc./2460 Terry Road/Jackson, MS 39204
2. Children First, Inc./2460 Terry Road #27P, Jackson, MS 39204 3. Children First, inc./2460 Terry Road
#27P, Jackson, MS 39204 4. MCPCA Children's Advocacy Center, Inc./753 North President
Street/Jackson, MS 39202
5. MS Committee For Prevention Of Child Abuse, Inc./2460 Terry Road #22/Jackson, MS 39204 6. MS
Committee For Prevention Of Child Abuse, Inc./2460 Terry Road #22/Jackson, MS 39204
FCUOA:
1. Former Cocaine Users of America/PO Box 846/Greenville, MS 38701 2. Former Cocaine Users of
America/PO Box 846/Greenville, MS 38701
In Attendance:
1. Judy Stein, Legal Division, MSTC, Jackson, MS
2. Bobby Long, Legal Division, MSTC, Jackson, MS
3. Patrice Crogen, Collins Games of Mississippi, Jackson
4. John Green, Childrens Assistance Relief Effort, Incorporated
5. Terry Green, Gulfside Casino, Gulfport, Mississippi
6. Hugh D. Keeting, Attorney, Gulfside Casino Incorporated
7. Stanley B. McDonald, Gulfside Casino Incorporated
8. James White, Grand Casino
9. Thomas J. Brosig, Grand Casino, Incorporated
10. Lenny Sawyer, Sawyer
11. Joe Salor, Grand Casino
12. Tommy Stephens, Watkins, Ludlam, & Stennis
13. Michael Cavanaugh, Mississippi Gaming Corporation
14. George Williams
15. Jan Dukes, Child Advocacy Center
16. Mike Farrell, Attorney for Child Advocacy Center
17. Debbie James, MS Committee for Preventing Child Abuse
18. Carl J. Chaney, Heitelberg & Woodliff
19. Dan M. McDaniel, Heitelberg & Woodliff
20. Scott Lummery, Attorney
21. Sam Begley, Attorney
22. Marlin Ferguson, Casino Magic
23. Roger H. Frommet, Casino Magic
24. Andy Halbrook
25. George Boo Hollowell
26. Bill Langian
27. Ray Baker, WJTV
28. Mal Leggitt, Daily Journal
29. L. Kay Johnson, City of Bay St. Louis
30. Jim Peterson, Ramstar
31. Eddie Faurg, Mayor City of Bay St. Louis
32. Herman H. Piner, MS V.F.W. Legislative Chairman
33. Wayne Lund, Casino Magic