1 BEFORE THE

MISSOURI GAMING COMMISSION

In the Matter of:

5 Meeting Agenda

8 July 24, 2002

Missouri Gaming Commission

9 3417 Knipp Drive

Jefferson City, Missouri

12 BEFORE:

13 Bob Smith, Chairman

Lynn Nikolaisen, Commissioner (via telephone)

14 J. Joe Adorjan, Commissioner (via telephone)

Muriel W. Battle, Commissioner (via telephone)

15 Floyd Bartch, Commissioner

REPORTED BY:

Mindy S. Hunt, CSR, CCR

19 ASSOCIATED COURT REPORTERS

714 West High Street

20 Jefferson City, Missouri 65102

ASSOCIATED COURT REPORTERS

(573) 636-7551 JEFFERSON CITY, MO 65102

(573)442-3600 COLUMBIA, MO 65201

1 P R O C E E D I N G S

2 CHAIRMAN SMITH: Call roll.

3 MS. ANGIE FRANKS: Commissioner Smith?

4 CHAIRMAN SMITH: Present.

5 MS. FRANKS: Commissioner Nikolaisen?

6 COMMISSIONER NIKOLAISEN: Present.

7 MS. FRANKS: Commissioner Battle?

8 COMMISSIONER BATTLE: Present.

9 MS. FRANKS: Commissioner Adorjan?

10 COMMISSIONER ADORJAN: Present.

11 MS. FRANKS: Commissioner Bartch?

12 COMMISSIONER BARTCH: Present.

13 CHAIRMAN SMITH: Everybody is present. I'd

14 like to take this opportunity to welcome our new

15 member, Floyd Bartch. We are very fortunate to

16 have a man of his qualifications. He was the past

17 Chief of Police of Kansas City, spent 20 years in the

18 Kansas City Police Department, and certainly is a

19 man that we've been looking for since Mr. Ullery

20 left almost a year ago. He was the Chief of Police

21 and Assistant Chief in 1993 and appointed in 1995,

22 and he retired in 1999. So he's still fresh from

23 his police experience.

24 He comes from Buchanan County in

25 St. Joseph, Missouri. He's married with three

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1 children, and has US Air Force service, Military

2 Air Police. Got out honorably, this resume said.

3 I'm glad to hear that. He's a graduate of Benton

4 High School, St. Joseph, Central Missouri State

5 University, and has done a number of technical

6 schools after that.

7 He's authored books on -- he's co-authored

8 the National Crime Analysis Handbook. He's taught

9 college at Central Missouri State University, Park

10 College, and the University of Missouri, Kansas City.

11 And he's past President of Kansas City Policeman's

12 Credit Union. And this says he's a lobbyist of

13 Missouri state legislature, so he may help us on

14 legislative affairs, too.

15 He's received a number of awards, such as

16 meritorious service awards from Kansas City Police

17 Department in '81 and '94. Got a special award for

18 leadership in race relations from the U.S. Department

19 of Justice in 1998, and he received a Difference

20 Maker Award from the Urban League in 1996. He belongs

21 to a whole group of police organizations and

22 associations. I won't mention that. And his

23 hobbies are reading and golf. And he tells me he's

24 not a par golfer, but that he enjoys it. So we're

25 glad to have you here. And if you want to make any

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1 comments, this would be the appropriate time.

2 COMMISSIONER BARTCH: Thank you very much

3 for the kind comments. I am glad to be here.

4 You're right, it does take a while. It's an

5 interesting process. But I am glad to be here. I

6 certainly want to do what's appropriate to help the

7 Commission do its job. And I will try to do

8 exactly that. My background courses in law

9 enforcement, I have done some other things that may

10 be of help, and we'll see how it goes. Thank you.

11 CHAIRMAN SMITH: We're sure glad to have you,

12 and indeed, somebody with your expertise on the

13 Commission again.

14 Any comments?

15 COMMISSIONER BATTLE: It sounds like he

16 was worth waiting for.

17 CHAIRMAN SMITH: Yes. You're right.

18 I guess the next order of business is

19 consideration of minutes of the meeting of May 23,

20 2002. I've got a couple of minor technical

21 corrections concerning statements attributed to me

22 which may or may not have been true, but they don't

23 quite make sense in the minutes. Couple of changes

24 that I think we should make. One is on page 4. I

25 said that -- it said approved and seconded. I

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1 think it was moved and seconded to adopt, so

2 probably approved should be changed to moved on

3 page 4.

4 And page 5, down in the middle of line 15,

5 it said that I motion and seconded. I think I

6 moved -- was moved and maybe said moved and seconded

7 rather than motion and seconded. On page 20 on --

8 no. Let's see. Page 35, line 20, statement was,

9 Why didn't we just say it's acceptable, and I think

10 what I said was, Why did you say it's acceptable.

11 And those are the changes I noted. And then also

12 on page -- this is page 97 on line 9 it says,

13 You're very much impressed at the relationship you

14 have between the county and the city. And I think

15 what I said was, We are very much impressed, rather

16 than you are.

17 MR. KEVIN MULLALLY: I'm sorry, Mr. Chairman.

18 What page was that again?

19 CHAIRMAN SMITH: That's on page 97, line 9.

20 MR. MULLALLY: And you're changing it to?

21 CHAIRMAN SMITH: Instead of, You're very much

22 impressed, to say, We are very much impressed. I

23 was talking about the relationship between the

24 county and the city in that area.

25 Are there any other corrections?

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1 If not, then do we have a motion -- no

2 objection to my corrections, do we have a motion to

3 approve the minutes as amended?

4 COMMISSIONER NIKOLAISEN: I move to

5 approve the minutes as amended.

6 CHAIRMAN SMITH: Is there a second?

7 COMMISSIONER BATTLE: I'll second. This

8 is Muriel.

9 CHAIRMAN SMITH: Call roll.

10 MS. FRANKS: Commissioner Smith?

11 CHAIRMAN SMITH: In favor.

12 MS. FRANKS: Commissioner Nikolaisen?

13 COMMISSIONER NIKOLAISEN: In favor.

14 MS. FRANKS: Commissioner Battle?

15 COMMISSIONER BATTLE: In favor.

16 MS. FRANKS: Commissioner Adorjan?

17 COMMISSIONER ADORJAN: In favor.

18 MS. FRANKS: Commissioner Bartch?

19 COMMISSIONER BARTCH: In favor.

20 MS. FRANKS: By your vote you have adopted

21 the minutes of the May 23, 2002 meeting as

22 amended.

23 CHAIRMAN SMITH: As you can see, we have a

24 very light agenda, but I think we'll move ahead

25 pretty quick on it. The next item, 3, is

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1 consideration of relicensure of certain suppliers.

2 And, Kevin, will you move into that?

3 MR. MULLALLY: Lieutenant Rick Wilhoit

4 will make the presentation for the materials under

5 Tabs B, C and D.

6 LIEUTENANT RICK WILHOIT: Good morning,

7 Mr. Chairman and Commissioners.

8 COMMISSIONER BATTLE: Good morning.

9 LIEUTENANT WILHOIT: Background checks, to

10 include criminal history checks and tax reviews, of

11 the following suppliers and their respective key

12 persons have been conducted in conjunction with

13 their re-licensing. As a result of the

14 investigations, the following suppliers have been

15 found suitable for re-licensing by the Commission:

16 Midwest Game Supply Company, Shuffle Master,

17 Incorporated and WMS Gaming, Incorporated.

18 CHAIRMAN SMITH: Does anyone have any

19 questions about any of these three suppliers?

20 None of these people have had any trouble

21 with the -- don't have any evidence or problems of

22 any sort, I gather?

23 LIEUTENANT WILHOIT: No, sir.

24 CHAIRMAN SMITH: Well, do we have a motion?

25 COMMISSIONER BATTLE: I will move then

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1 that we adopt Resolution No. 02-055.

2 CHAIRMAN SMITH: We have a motion to approve

3 02-055, Midwest Game Supply Company. Any

4 discussion?

5 If not, would you call roll?

6 COMMISSIONER NIKOLAISEN: We need a

7 second.

8 CHAIRMAN SMITH: Oh, I'm sorry. Excuse me.

9 COMMISSIONER BARTCH: Second.

10 CHAIR SMITH: Seconded. Bartch seconded.

11 Call roll, please.

12 MS. FRANKS: Commissioner Smith?

13 CHAIRMAN SMITH: In favor.

14 MS. FRANKS: Commissioner Nikolaisen?

15 COMMISSIONER NIKOLAISEN: In favor.

16 MS. FRANKS: Commissioner Battle?

17 COMMISSIONER BATTLE: In favor.

18 MS. FRANKS: Commissioner Adorjan?

19 COMMISSIONER ADORJAN: In favor.

20 MS. FRANKS: Commissioner Bartch?

21 COMMISSIONER BARTCH: In favor.

22 MS. FRANKS: By your vote you have adopted

23 Resolution No. 02-055.

24 CHAIRMAN SMITH: Keep me straight, Lynn, if

25 it gets too fast here.

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1 COMMISSIONER NIKOLAISEN: I move for

2 adoption of Resolution No. 02-056.

3 CHAIRMAN SMITH: We have a motion to approve

4 Resolution No. 02-056 involving Shuffle Master,

5 Inc.

6 COMMISSIONER BATTLE: I second.

7 CHAIRMAN SMITH: Seconded. Any discussion?

8 THE OPERATOR: Go ahead.

9 CHAIRMAN SMITH: Is this Kansas City coming

10 in?

11 SERGEANT BAKER: Kansas City is hooked up

12 now, sir.

13 CHAIRMAN SMITH: You missed a lot of

14 important business, but we went ahead without you.

15 SERGEANT BAKER: Okay.

16 CHAIRMAN SMITH: Call roll, please.

17 MS. FRANKS: Commissioner Smith?

18 CHAIRMAN SMITH: In favor.

19 MS. FRANKS: Commissioner Nikolaisen?

20 COMMISSIONER NIKOLAISEN: Favor.

21 MS. FRANKS: Commissioner Battle?

22 COMMISSIONER BATTLE: In favor.

23 MS. FRANKS: Commissioner Adorjan?

24 COMMISSIONER ADORJAN: In favor.

25 MS. FRANKS: Commissioner Bartch?

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1 COMMISSIONER BARTCH: In favor.

2 MS. FRANKS: By your vote you have adopted

3 Resolution No. 02-056.

4 CHAIRMAN SMITH: The next item is Resolution

5 02-057 involving WMS Gaming, Inc. Do we have a

6 motion on that?

7 COMMISSIONER NIKOLAISEN: I move for

8 approval.

9 COMMISSIONER BATTLE: I second.

10 CHAIRMAN SMITH: Moved and seconded that we

11 approve Resolution 02-057 on WMS Gaming. Any

12 discussion?

13 If not, let's call roll.

14 MS. FRANKS: Commissioner Smith?

15 CHAIRMAN SMITH: In favor.

16 MS. FRANKS: Commissioner Nikolaisen?

17 COMMISSIONER NIKOLAISEN: Favor.

18 MS. FRANKS: Commissioner Battle?

19 COMMISSIONER BATTLE: In favor.

20 MS. FRANKS: Commissioner Adorjan?

21 COMMISSIONER ADORJAN: In favor.

22 MS. FRANKS: Commissioner Bartch?

23 COMMISSIONER BARTCH: In favor.

24 MS. FRANKS: By your vote you have adopted

25 Resolution No. 02-057.

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1 MR. MULLALLY: Mr. Chairman, under Tab E

2 you will have the resolution and report regarding

3 consideration of Level I applicants, and Lieutenant

4 Wilhoit will make the presentation.

5 LIEUTENANT WILHOIT: Mr. Chairman and

6 Commissioners, the background teams conducted

7 investigations of one key person and two Level Is

8 that included, but were not limited to, criminal,

9 financial and general character inquiries. The

10 following individuals have been investigated and

11 found to be suitable for licensing by the

12 Commission: Michael A. Gorczynski, Director of

13 Finance for Ameristar Casino St. Charles, Inc.;

14 Gary W. Loveman, key person of Harrah's

15 Entertainment, Incorporated; and Peggy J. Zornes,

16 table games manager of Isle of Capri, Kansas City,

17 Incorporated.

18 CHAIRMAN SMITH: We have confidential reports

19 on all of these. I notice one of them certainly is

20 very well-qualified for the job. He went to

21 Harvard business school and is a graduate of MIT.

22 COMMISSIONER BATTLE: Very impressive.

23 CHAIRMAN SMITH: And Geneva, Switzerland for

24 awhile through the International Labor

25 Organization, so he seems to be very

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1 well-qualified.

2 Anybody have any questions about any of

3 these applicants?

4 You have no reservations about any of

5 these?

6 LIEUTENANT WILHOIT: No, sir, I don't.

7 COMMISSIONER NIKOLAISEN: I move for

8 adoption of Resolution No. 02-058.

9 CHAIRMAN SMITH: Is there a second?