United Tribes ) Michigan - Little Traverse Bay Bands of Odawa Indians

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Memorandum TO: Greektown Casino Management Board and The Fine Point Group FROM: Roger Martin, APR, Martin Waymire Advocacy Communications Brian Brown, Martin Waymire Advocacy Communications Ron Khoury, Cusmano, Kandler & Reed Gary Reed, Cusmano, Kandler & Reed Marvin Beatty, Greektown Casino DATE: March 18, 2009 RE: "Charitable Gaming" in Michigan Over the past month, the Michigan attorneys, lobbyists and PR teams for MGM Grand Detroit, MotorCity and Greektown have been meeting to discuss the rapid growth of "charitable gaming" in the state. Attending the meetings on behalf of Greektown Casino are attorneys from Honigman Miller, lobbyists from Cusmano, Kandler & Reed, representatives of Martin Waymire Advocacy Communications, and Greektown Community Relations Director Marvin Beatty. Specifically, we are examining the explosion over the past two years in "Millionaire Parties" featuring Texas Hold 'Em, Blackjack, and other table games similar to the games played every day on the floors of the three Detroit casinos. Here is what we have discovered so far from examining Michigan Lottery Bureau records, attending a few of the parties, and speaking with state gaming and Lottery regulators: • More than 15,000 charitable gaming events were held in Michigan last year. These include all types of charity games, with the biggest growth coming in "Texas Hold 'Ern" and similar casino-type games being played at Millionaire Parties. Three years ago, several hundred Millionaire Parties held around the state. If Michigan Lottery Bureau licensing records are accurate, at least a couple thousand Millionaire Parties will be held around the state in the next two to three months. • 2008 charitable gaming revenues totaled $479 million in Michigan, with a significant portion coming from casino-style poker games at Millionaire Parties. Lottery expects a significant increase this year. By comparison, revenues last year totaled $316 million for Greektown Casino, $464 million for MotorCity, and $578 million for MGM. • Only about $75 million went to charities, according to the Lottery Bureau. • These games — even the poker games — are not regulated in ways consistent with the same games at the three Detroit casinos. There is no state gaming tax. There are little to no licensing requirements for the dealers, suppliers, owners and employees of the companies running the games. In effect, they become "roving mini casinos" that are largely unregulated and untaxed. Dozens of them will be operating tonight — every night — in southeast Michigan counties. • In addition to the main games being played at the parties to benefit the charities, "side games" are also allowed. Even more revenues are generated at these games. • Literally dozens of suppliers have opened for business in Michigan to provide seating, tables, dealers, staff to the charities and hosting venues.
• Lottery Bureau records show Millionaire Parties are being held at bowling allies, pool halls, bars, restaurants, horse racetracks (Northville Downs has its own Millionaire Parties facility now), union halls, churches, public schools, and other venues large enough to accommodate several dozen people, table games and chairs. • The parties are held nearly every night of the week and in nearly all 83 Michigan counties. A search of Lottery Bureau records shows that six or more parties can be found on any given night in the larger population counties. Based on recent meetings between all the casinos, below is a brief explanation of our legal and public relations next steps: • We are in the process of filing a Freedom of Information request with the Lottery Bureau's Charitable Gaming Division to better understand the revenue numbers and to examine all of the documents (license applications, post-party reports, supplier information, etc) filed by the operators and charities. This will involve inspecting revenue reporting documents and identifying common gaming locations. We are also checking the backgrounds of the companies that run these games by examining articles of incorporation and annual reports filed at the state Corporations and Securities Bureau. • We are working to identify some groups and people (not connected to the casinos) who could be public messengers on the issue. We know certain mayors, city councils, antigambling organizations, state lawmakers and others have already expressed public concerns about the growth in this unregulated gambling. • We know a circuit court judge in Ingham County who says she is seeing a spike in criminal reports on the nights Millionaire Parties are being held at one venue in Lansing. We intend to track down the reports to determine what types of crimes are being investigated and prosecuted. • The coalition would like to conduct a public opinion poll to determine voter sentiment on the growth of charitable gaming. Based on past survey research, we expect voters to express concern about the fact that 18-year-olds can play at Millionaire Parties, there is little to no regulation of the operators and suppliers, there is no on-site policing of games by any state or local agency, the games pay no taxes, and more. • Legislation is being developed to address some of the regulatory concerns. Five to six new public policies likely will be proposed. • On March 26, Roger Martin and a representative of MotorCity are attending a "free" training conducted by the Lottery for people who want to learn how to run Millionaire Parties. • We are developing key messages for if and when the casinos are contacted for comment about the expansion of charitable gaming. • We know some members of the news media are interested in following developments related to this issue. At the right time, we will put those reporters in touch with legislators and others who can discuss the concerns and proposed solutions. • We are meeting next in a couple of weeks, after we know more from our FOIA request, after we attend the Millionaire Party training, and after the lobbyists have discussed possible legislation with supporters in the Capitol. 2
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LITTLE TRAVERSE BAY BANDS OF ODAWA
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UNITED TRIBES OF MICHIGAN Executive
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United Tribes ) Michigan - Little Traverse Bay Bands of Odawa Indians

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