1 BEFORE THE MISSOURI GAMING COMMISSION

2 STATE OF MISSOURI

5 Meeting

Tuesday, April 29, 2003

6 3417 Knipp Drive

Jefferson City, Missouri

COMMISSIONERS PRESENT:

Robert Smith, Chairman

11 Floyd Bartch

12 Judy Sutter-Hinrichs

19 REPORTED BY:

20 TRACY L. CAVE, CSR, CCR

ASSOCIATED COURT REPORTERS

21 11 North Fifth Street

Columbia, Missouri 65201

22 (573) 442-3600

(573) 636-7551

ASSOCIATED COURT REPORTERS

573-636-7551 JEFFERSON CITY, MO

573-442-3600 COLUMBIA, MO

1 I N D E X

2 I. Call to Order 4

3 II. Consideration of Approval of Minutes:

4 A. December 12, 2002 4

B. February 18, 2003 5

5 C. February 26, 2003 6

6 III. Consideration of Hearing Officer Recommendations:

7 D. Harrah's North Kansas City, LLC 7

Resolution No. 03-027

8 E. Cecil R. Coats 25

Resolution No. 03-028

9 F. Zelleta Callahan 30

Resolution No. 03-029

10 G. Janet M. Walker 38

Resolution No. 03-030

11 H. Theodore Candelino 40

Resolution No. 03-031

12 I. Valerie R. Alfred 43

Resolution No. 03-032

13 J. Jeffrey C. Lynch 44

Resolution No. 03-033

14 K. Bradley E. Hall 46

Resolution No. 03-034

IV. Consideration of Settlement Agreement:

M. Dean Nowe 48

17 Resolution No. 03-036

18 V. Consideration of Relicensure of Certain

Class A Licensees:

N. Aztar Missouri Riverboat

20 Gaming Company, LLC 54

Resolution No. 03-037

VI. Consideration of Relicensure of

22 Certain Suppliers: 94

23 O. Anchor Coin, Inc.,

d/b/a Anchor Games Supplier

24 Resolution No. 03-038

P. Kilmartin Industries, Inc.

25 d/b/a Roger Williams Mint

Resolution No. 03-039

ASSOCIATED COURT REPORTERS

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1 Q. IGT

Resolution No. 03-040

VII. Consideration of Certain Level I/Key Applicants:

S. Resolution No. 03-042 97

VIII. Consideration of Amendment to Licensure of

5 Certain Level I/Key Applicants

6 T. Resolution No. 03-043 99

7 IX. Consideration of Disciplinary Actions:

8 U. President Riverboat Casino-MO, Inc. 100

DC-03-035

9 V. Ameristar Casino Kansas City, Inc. 103

DC-03-036

10 W. Harrah's Maryland Heights, LLC 104

DC-03-037

X. Consideration of Rules and Regulations:

X. Proposed Rules

13 11 CSR-45-30.540 109

11 CSR-45-30.550 112

14 Y. Proposed Amendment

11 CSR 45-9.030 115

15 Z. Final Orders of Rulemaking

11 CSR 45-3.010 120

16 11 CSR 45-5.200 120

17 XI. Status Report on David R. Teague v. MGC 121

18 XII. Status Report on Gaming Legislation 123

19 XIII. Closed Session 124

20 XIV. Adjournment 124

ASSOCIATED COURT REPORTERS

573-636-7551 JEFFERSON CITY, MO

573-442-3600 COLUMBIA, MO

1 CHAIRMAN SMITH: I believe it's ten o'clock.

2 Good morning, everybody. I appreciate you being here.

3 We'll go ahead and open the meeting and please call roll.

4 MS. ANGIE FRANKS: Chairman Smith.

5 CHAIRMAN SMITH: Present.

6 MS. FRANKS: Commissioner Bartch.

7 COMMISSIONER BARTCH: Present.

8 MS. FRANKS: Commissioner Hinrichs.

9 COMMISSIONER HINRICHS: Present.

10 CHAIRMAN SMITH: With everybody present, then,

11 I guess we'll proceed.

12 The first order of business is we have several

13 minutes that have been typed now that need to be approved.

14 The first are the minutes of December 12, 2002. I have

15 one correction on those minutes on page 101, line 14. It

16 says Mrs. Nikolaisen. I believe that's Miss. So we want to

17 make that change. Otherwise --

18 COMMISSIONER HINRICHS: Not Ms.?

19 CHAIRMAN SMITH: Well, I don't know how to

20 spell Ms. or we'd do that. Ms., I guess. Either way.

21 That's kind of minor.

22 Do we have a motion to approve the minutes of

23 December 12?

24 COMMISSIONER HINRICHS: So moved.

25 CHAIRMAN SMITH: Is there a second?

ASSOCIATED COURT REPORTERS

573-636-7551 JEFFERSON CITY, MO

573-442-3600 COLUMBIA, MO

1 COMMISSIONER BARTCH: Second.

2 CHAIRMAN SMITH: All in favor say aye.

3 COMMISSIONER BARTCH: Aye.

4 COMMISSIONER HINRICHS: Aye.

5 MS. FRANKS: Roll call.

6 CHAIRMAN SMITH: Roll call on this? Okay.

7 We'll do that.

8 MS. FRANKS: Chairman Smith.

9 CHAIRMAN SMITH: In favor.

10 MS. FRANKS: Commissioner Bartch?

11 COMMISSIONER BARTCH: Favor.

12 MS. FRANKS: Commissioner Hinrichs.

13 COMMISSIONER HINRICHS: Favor.

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

15 minutes of the December 12, 2002 meeting.

16 CHAIRMAN SMITH: Then we have the minutes of

17 the February 18, 2003 meeting. A couple of changes on

18 that, corrections. One is on --

19 COMMISSIONER HINRICHS: No page numbers. Oh,

20 page numbers at the top.

21 CHAIRMAN SMITH: Page 5, line 20 says,

22 Probably won't be -- I guess we'll be requesting a permanent

23 or further extension of 90 days. I think the word was

24 "postponement" instead of "permanent." I don't think we can

25 give permanent extensions. So I'd make that correction.

ASSOCIATED COURT REPORTERS

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573-442-3600 COLUMBIA, MO

1 That's the only correction I have. Does

2 anyone else have any corrections of these minutes?

3 Now, do we have a motion to approve the

4 minutes of February 18th?

5 COMMISSIONER HINRICHS: So move.

6 CHAIRMAN SMITH: Is there a second?

7 COMMISSIONER BARTCH: Second.

8 CHAIRMAN SMITH: Call the roll.

9 MS. FRANKS: Chairman Smith.

10 CHAIRMAN SMITH: Favor.

11 MS. FRANKS: Commissioner Bartch.

12 COMMISSIONER BARTCH: Favor.

13 MS. FRANKS: Commissioner Hinrichs.

14 COMMISSIONER HINRICHS: Favor.

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

16 minutes of the February 18, 2003 meeting.

17 CHAIRMAN SMITH: Then we have the minutes of

18 the February 26, 2003 meeting. Does anybody have any

19 correction on those minutes? I thought I had one, but I

20 can't find it so it must not be important.

21 Okay. No corrections. Have we got a motion

22 to approve the minutes?

23 COMMISSIONER HINRICHS: I'll do it again. So

24 move.

25 CHAIRMAN SMITH: Moved. Is there a second?

ASSOCIATED COURT REPORTERS

573-636-7551 JEFFERSON CITY, MO

573-442-3600 COLUMBIA, MO

1 COMMISSIONER BARTCH: Second.

2 CHAIRMAN SMITH: Call the roll.

3 MS. FRANKS: Chairman Smith.

4 CHAIRMAN SMITH: Favor.

5 MS. FRANKS: Commissioner Bartch.

6 COMMISSIONER BARTCH: Favor.

7 MS. FRANKS: Commissioner Hinrichs.

8 COMMISSIONER HINRICHS: Favor.

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

10 minutes of the February 26, 2003 meeting.

11 CHAIRMAN SMITH: I guess the next order --

12 well, I guess the next order is to go ahead to the hearings

13 unless there's anything special you want to say before we

14 start.

15 MR. KEVIN MULLALLY: No, sir. There are a number of

16 hearing officer recommendations. Judge Wilson is prepared

17 to present those.

18 The first case, the Harrah's North Kansas City

19 case involving an underage patron, the transcript of that

20 record includes a videotape. And I think the Commission

21 indicated a desire to view that tape. I don't know whether

22 you want to have Judge Wilson present his findings first and

23 then view the tape prior to voting.

24 CHAIRMAN SMITH: I think maybe -- how are we

25 set up? Are we going to do it in here or --

ASSOCIATED COURT REPORTERS

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1 MR. MULLALLY: We're going to do it in here.

2 I've got the monitor right there.

3 CHAIRMAN SMITH: Why don't we view that first?

4 That will be in open session. Anybody that wants to come in

5 and watch the movie can do that. One of the witnesses had

6 cancer and couldn't appear so they did it by videotape. And

7 it seems to me it would be less disruptive to just go ahead

8 and do it now and then we'll come back in.

9 What do we guess how long? It's fairly short,

10 isn't it?

11 MS. FRANKS: It's five minutes.

12 CHAIRMAN SMITH: Five minutes. So we'll

13 adjourn to the other room to see the tape, which is the only

14 part of the transcript that was not written. It had about

15 100-page transcript anyway, I think, but we need to see

16 that.

17 MS. FRANKS: It's not the deposition. It's a

18 tape of the turnstiles.

19 MR. MULLALLY: Yeah. The deposition is

20 included in the record.

21 MS. FRANKS: It's included in your packet.

22 MR. MULLALLY: Yeah. This is the --

23 COMMISSIONER HINRICHS: This is not another

24 deposition?

25 MS. FRANKS: No.

ASSOCIATED COURT REPORTERS

573-636-7551 JEFFERSON CITY, MO

573-442-3600 COLUMBIA, MO

1 MR. MULLALLY: No. This is a composite of the

2 surveillance tape. The transcript of the deposition was

3 included, so it's just like all the other witnesses.

4 CHAIRMAN SMITH: Then let's just go see that

5 right now. We'll adjourn for five minutes.

6 MS. FRANKS: You can see it right here.

7 CHAIRMAN SMITH: Oh, it's right here.

8 MR. MULLALLY: I will comment that this tape

9 is from -- is taken on what they call a multiplexer, is that

10 correct, Captain? What that is, it takes up to 16 --

11 CAPTAIN BOB BLOOMBERG: I'm not sure which one

12 this is, but they can have up to 16 different monitors in

13 your view.

14 MR. MULLALLY: And so the video is somewhat

15 degraded. It's also one of the reasons why we changed our

16 surveillance standards. And everyone is in the process of

17 upgrading their surveillance systems to eliminate

18 multiplexers.

19 CHAIRMAN SMITH: Judge Wilson, do you want to

20 make a comment?

21 JUDGE MCCORMICK WILSON: May I come up here?

22 CHAIRMAN SMITH: Yes. Come up and sit down.

23 JUDGE WILSON: I have not seen it.

24 COMMISSIONER HINRICHS: You'll give some

25 background on what we're looking at?

ASSOCIATED COURT REPORTERS

573-636-7551 JEFFERSON CITY, MO

573-442-3600 COLUMBIA, MO

1 MR. MULLALLY: This is -- Mike, do you want

2 to?

3 MR. MIKE BRADLEY: This is the surveillance of the

4 minor entering the casino. And in the transcript there was

5 discussions in the transcript of what you're seeing. And

6 what you will see is that the lady taking the tickets did

7 check the minor's ID card. I think that may be her right

8 there.

9 CHAIRMAN SMITH: Do you want to stand over

10 close to the monitor or can you see it?

11 MR. BRADLEY: I can see it.

12 CHAIRMAN SMITH: Any comments that you want to

13 make to assist us in identifying the people would be

14 appreciated.

15 MR. MULLALLY: Is this the minor right here,

16 Mike?

17 MR. BRADLEY: That could be. She's awfully

18 little, yeah. But in the hearing it was definite that the

19 ticket taker checked her ID. That's what Harrah's wanted to

20 make sure was on the record.

21 COMMISSIONER HINRICHS: What's happening now?

22 Who is she interacting with?

23 MR. MULLALLY: That would be --

24 COMMISSIONER HINRICHS: Just another patron?

25 MR. BRADLEY: Yeah. The minor coming through

ASSOCIATED COURT REPORTERS

573-636-7551 JEFFERSON CITY, MO

573-442-3600 COLUMBIA, MO

1 the turnstile is the only relevance of the whole tape.