1

BEFORE THE MISSOURI GAMING COMMISSION

2 STATE OF MISSOURI

5 Meeting

Wednesday, November 20, 2002

6 3417 Knipp Drive

Jefferson City, Missouri

10 COMMISSIONERS PRESENT:

11 Robert Smith, Chairman

Lynne R. Nikolaisen

12 Dr. Muriel W. Battle

Floyd O. Bartch

REPORTED BY:

20 Patricia A. Stewart, CSR, CCR, RPR, RMR

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21 714 West High Street

P. O. Box 1308

22 Jefferson City, Missouri 65101

(573) 636-7551

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I N D E X

I. Call to Order 4

II. Consideration of Approval of Minutes: 4

A. August 28, 2002

III. Consideration of Hearing Officer

6 Recommendations:

7 B. President Riverboat Casino-Missouri, 7

Inc.

8 Resolution No. 02-082

C. Susan D. Smith 14

9 Resolution No. 02-083

D. Mathew J. Heitert 17

10 Resolution No. 02-084

E. Robert Mast 19

11 Resolution No. 02-085

F. Rebecca Lisa Hill 22

12 Resolution No. 02-086

G. Fraternal Order of Eagles #3667

13 Resolution No. 02-014-B 24

IV. Consideration of Relicensure of

15 Certain Class A Licensees:

16 H. IOC-Boonville, Inc. 37

Resolution No. 02-087

V. Consideration of Relicensure of

18 Certain Suppliers:

19 I. Atlantic City Coin and Slot Service 58

Company, Inc.

20 Resolution No. 02-088

21 VI. Consideration of Disciplinary Action:

22 J. St. Joseph Riverboat Partners 60

DC-02-260

K. Harrah's North Kansas City, LLC 63

24 DC-02-261

25 L. Harrah's North Kansas City, LLC 66

DC-02-262

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VI. Consideration of Disciplinary Action (Cont'd):

M. Harrah's North Kansas City, LLC 68

3 DC-02-263

4 N. IOC-Kansas City, Inc. 75

DC-02-264

O. IOC-Kansas City, Inc. 77

6 DC-02-265

7 P. IOC-Boonville, Inc. 78

DC-02-266

VII. Consideration of Change in Control:

Q. President Riverboat Casino-MO, Inc. 82

10 Resolution No. 02-089

11 VIII. Consideration of Suspension of Licensure:

12 S. Carl Murphy 84

Resolution No. 02-091

IX. Consideration of Rulemaking

14 T. Proposed Amendment

1. 11 CSR 45-4.260 - Occupational 86

15 Licenses

U. Final Orders of Rulemaking

16 1. 11 CSR 45-4.060 - Priority of 88

Applications

17 2. 11 CSR 45-5.200 - Progressive Slot 89

Machines

CONSENT AGENDA

X. Consideration of Relicensure of Bingo Manufacturers

20 and Suppliers

21 V. Bingo Manufacturers

1. Resolution No. 02-015-B 90

22 W. 1. Resolution No. 02-016-B 93

23 XI. Presentation by Against Barnhart Casino 95

(ABC)

24 XII. Closed Session 109

XIII. Adjournment 109

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

2 CHAIRMAN SMITH: All right. Let's call the

3 meeting to order.

4 Call the roll, please.

5 MS. ANGIE FRANKS: Chairman Smith.

6 CHAIRMAN SMITH: Present.

7 MS. FRANKS: Commissioner Nikolaisen.

8 COMMISSIONER NIKOLAISEN: Present.

9 MS. FRANKS: Commissioner Battle.

10 COMMISSIONER BATTLE: Present.

11 MS. FRANKS: Commissioner Bartch.

12 COMMISSIONER BARTCH: Present.

13 CHAIRMAN SMITH: Let the record reflect that

14 Commissioner Nikolaisen is by long-distance telephone. So

15 she'll be participating in the meeting by telephone.

16 I guess the first order of business is the

17 consideration of minutes of the August 28 meeting.

18 I had a couple of minor things that I want to

19 mention that I think should be corrected. On page --

20 page 7, I guess it is, line 21, it didn't quite make sense

21 what is there.

22 I think what was meant was that Maryland

23 Heights indicated that in the future they're going to, I

24 think it should be, in place of the words, change their

25 policy, after the word "going to" and before the word

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1 "policy," change their policy.

2 I think that's what I intended to say. I hope

3 I did.

4 And then on page 8, on the bottom of line 6,

5 from the bottom, it said that someone signed the annual

6 report, I guess.

7 I think that it referred to, it should be --

8 the word "someone" -- you see the word "someone." Instead

9 of signed the, it should be, was needed to sign

10 the -- was needed to sign the annual report.

11 And then on page 18, on line 11, at the

12 bottom -- bottom of the page, it states, otherwise, it's

13 an accepted proposal. It said, so I'll have to determine.

14 It should be, so we'll have to determine.

15 Instead of "I," it should be "we'll."

16 MR. KEVIN MULLALLY: What page, Mr. Chairman?

17 CHAIRMAN SMITH: Page 18, line 11, at the

18 bottom of the page.

19 On page 40, line 19, is the word "I guess," and

20 it should be, "are there any other comments," rather than

21 "I guess." The question is, "are there any comments?"

22 COMMISSIONER BATTLE: What line?

23 CHAIRMAN SMITH: Line 19, at the top of the

24 page.

25 I'm getting awful picky today, but I just ran

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1 into those.

2 Are there any other corrections?

3 Do we have a motion to approve the minutes

4 then --

5 COMMISSIONER BATTLE: I do.

6 CHAIRMAN SMITH: -- as corrected?

7 Is there a second?

8 COMMISSIONER NIKOLAISEN: Second.

9 CHAIRMAN SMITH: All in favor of the motion.

10 Let us call the roll on the minutes.

11 MS. FRANKS: Chairman Smith.

12 CHAIRMAN SMITH: In favor.

13 MS. FRANKS: Commissioner Nikolaisen.

14 COMMISSIONER NIKOLAISEN: Favor.

15 MS. FRANKS: Commissioner Battle.

16 COMMISSIONER BATTLE: In favor.

17 MS. FRANKS: Commissioner Bartch.

18 COMMISSIONER BARTCH: Favor.

19 MS. FRANKS: By your vote, you've adopted the

20 minutes of the August 28, 2002 meeting as amended.

21 CHAIRMAN SMITH: Are there any preliminary

22 matters?

23 MR. MULLALLY: No, Mr. Chairman. I think we

24 are ready to go into the order of business.

25 The first item the staff has to present is a

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1 consideration of hearing officer recommendations, and

2 Judge McCormick Wilson is here to present Items B

3 through G.

4 JUDGE MCCORMICK WILSON: Mr. Chairman, may I

5 use the table up there?

6 CHAIRMAN SMITH: We are at your disposal, sir.

7 How are you lucky enough to get this case?

8 JUDGE WILSON: Pardon?

9 CHAIRMAN SMITH: How are you lucky enough to

10 get this one?

11 JUDGE WILSON: I think bad judgment.

12 Except that all I have to do is make a

13 recommendation.

14 CHAIRMAN SMITH: I see.

15 JUDGE WILSON: The first case that I have is

16 02-082. And this is the case that involves a prohibited

17 contribution by the President riverboat to officials of

18 the state -- of the City of St. Louis.

19 And there is not much question but that the

20 ordinance was in effect at the time that the contribution

21 was made.

22 The riverboat -- the casino's position is that

23 this is not a valid ordinance, that it should not be and

24 cannot be grounds for discipline.

25 That is fine, except that they can't make that

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1 argument. I believe they cannot make that argument to

2 this Commission.

3 The Commission has no authority to declare an

4 ordinance invalid or unconstitutional, or, as their

5 counsel said, no law. And I believe that's not disputed.

6 What they do say is that because it is a bad

7 ordinance, it should be considered in assessing the

8 penalty for -- with regard to their license.

9 My recommendation is that you tell those people

10 that they have every -- every right to go to a court where

11 that can be declared unconstitutional as an infringement

12 on the exercise of their franchises, but that they cannot

13 successfully make that argument to this Commission.

14 Now, the City had a problem because it -- the

15 ordinance makes it a violation to accept such a

16 contribution, as well as to make such a contribution.

17 And they employed special counsel, a very able

18 man, to give them advice as to what they should do, what

19 the City should do with regard to City prosecutions.

20 And the special counsel, his recommendation

21 was, first of all, that the ordinance was invalid, and

22 second, that it should be repealed, that no action should

23 be taken by the City prosecuting officials against either

24 the contributor or the recipient.

25 CHAIRMAN SMITH: And they didn't do anything,

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1 did they?

2 JUDGE WILSON: They did nothing.

3 It didn't matter, because they could not unring

4 that bell. They could not repeal it retroactively. They

5 didn't repeal it at all. They just have not sought to

6 enforce it.

7 I don't -- they -- they have enough problems

8 down there anyway, and I don't know that this particular

9 number of dollars as a fine is appropriate under the

10 circumstances.

11 But they actually -- well, they said they

12 didn't know about the ordinance, and I -- I suppose that

13 the people that are there now didn't know about the

14 ordinance.

15 But the people that were there when the

16 ordinance was enacted, I'm just certain that they knew

17 about it.

18 But my recommendation is that we go ahead --

19 you go ahead and say that the ordinance was in effect,

20 that it has not been declared unconstitutional, that they

21 violated it, no question about that, and that the license

22 be disciplined.

23 If there are any questions, I'll try to answer

24 them.

25 CHAIRMAN SMITH: Well, I have some questions.