1

1 BEFORE THE GAMING COMMISSION

STATE OF MISSOURI

4 OPEN MEETING

6 February 23, 2005

8 3417 Knipp Drive

Jefferson City, Missouri

12 COMMISSION MEMBERS: FLOYD O. BARTCH, Chairman

RALPH BIELE, Commissioner

13 JACK E. GANT, Commissioner

GEORGE HARTSFIELD, Commissioner

14 JUDITH SUTTER-HINRICHS, Commissioner

20 REPORTED BY:

21 STEPHANIE L. KURTZ MORGAN, RPR, CCR

MIDWEST LITIGATION SERVICES

22 714 West High Street

P. O. Box 1308

23 Jefferson City, Missouri 65109

(573) 636-7551

1 I N D E X

I. Call to Order 5

II. Consideration of Minutes

4 A. November 29, 2004 5

B. January 12, 2005 5

III. Consideration of Hearing Officer

6 Recommendations

C. Reginald Bracy 7

7 1. Resolution No. 05-014

D. Brendan Kaiser 9

8 1. Resolution No. 05-015

E. David Shy 10

9 1. Resolution No. 05-016

F. Casey Beebe 13

10 1. Resolution No. 05-017

G. Thomas Starks, Jr. 16

11 1. Resolution No. 05-018

H. Denise Little 29

12 1. Resolution No. 05-019

I. Bobbie Helvey 30

13 1. Resolution No. 05-020

14 IV. Consideration of Relicensure of

Certain Class A Licensee

15 J. Harrah's Maryland Heights, L.L.C.

* Presentation by Applicant 32

16 * Presentation by City of

Maryland Heights 49

17 * Public Comment

* Investigative Summary 59

18 * Staff Recommendation 62

* Resolution No. 05-021 63

V. Consideration of Licensure of Level I/Key Applicants

20 K. Resolution No. 05-022 64

21 VI. Consideration of Disciplinary Action

L. Harrah's Maryland Heights, L.L.C. 65

22 1. DC-05-029

M. President Riverboat Casino-MO, Inc. 67

23 1. DC-05-030

1 I N D E X (CONTINUED)

VII. Consideration of Placement on Exclusion List

3 N. Carl DeLuna 69

1. Resolution No. 05-023

VII. Consideration of Settlement Agreements

5 O. Jennifer Huffman 73

1. Resolution No. 05-024

6 P. Michael A. Newman 77

1. Resolution No. 05-025

VIII. Consideration of Proposed Rules & Regulations

8 Q. Final Orders of Rulemaking 81

1. 11 CSR 45-30.025 - Bingo Promotions

9 2. 11 CSR 45-30.030 - Special Bingo Game

3. 11 CSR 45-30.035 - Bingo Card

10 4. 11 CSR 45-30.040 - Occasion

5. 11 CSR 45-30.050 - Gross Receipts

11 6. 11 CSR 45-30.060 - Operator(s)

7. 11 CSR 45-30.070 - Regular Bingo License

12 8. 11 CSR 45-30.135 - Bingo Workers

9. 11 CSR 45-30.140 - Worker--Player

13 10. 11 CSR 45-30.155 - Bingo Equipment Defined

11. 11 CSR 45-30.160 - Equipment

14 12. 11 CSR 45-30.170 - Records Required

13. 11 CSR 45-30.175 - Organization (Operator)

15 Recordkeeping

Requirements

16 14. 11 CSR 45-30.180 - Inventory, Ownership,

and Leasing of Bingo

17 Equipment

15. 11 CSR 45-30.200 - Merchandise Prizes

18 16. 11 CSR 45-30.205 - Game Operation

Definitions

19 17. 11 CSR 45-30.210 - Reports

18. 11 CSR 45-30.220 - Bank Account

20 19. 11 CSR 45-30.235 - Reasonable Market Rental

Rate for Leased Premises

21 and Leased Locations

20. 11 CSR 45-30.240 - Leased Locations

22 21. 11 CSR 45-30.270 - Premises Defined,

Inspections, All

23 Gambling and Gambling

Devices Prohibited

24 22. 11 CSR 45-30.280 - Net Receipts from Bingo

and Bank Account

25 23. 11 CSR 45-30.290 - Co-Ownership of Bingo

1 I N D E X (CONTINUED)

24. 11 CSR 45-30.300 - Equipment Leases,

3 Reasonable Market Rate

25. 11 CSR 45-30.340 - Participation of

4 Full-Time Employee,

Full-Time Staff Member

5 or Ordained Member of

Clergy

6 26. 11 CSR 45-30.350 - Pull-Tab Cards

27. 11 CSR 45-30.355 - Sale of Pull-Tab Cards

7 by Bingo Licensees

28. 11 CSR 45-30.370 - Progressive Games

8 29. 11 CSR 45-30.525 - Supplier Recordkeeping

Requirements

9 30. 11 CSR 45-30.545 - Contraband

31. 11 CSR 45-30.575 - Pull-Tab Packaging,

10 Assembly and

Distribution

11 32. 11 CSR 45-30.600 - Electronic Bingo Card

Monitoring Devices

IX. Consideration of Bingo License

13 R. Pollard Games, Inc. d/b/a American

Games, Inc. 153

14 1. Resolution No. 05-001-B

15 X. Closed Session

16 XI. Adjournment 156

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

2 CHAIRMAN BARTCH: We'll call the meeting to order

3 then.

4 MS. ANGELA FRANKS: Chairman Bartch?

5 CHAIRMAN BARTCH: Present.

6 MS. FRANKS: Commissioner Hinrichs?

7 COMMISSIONER HINRICHS: Present.

8 MS. FRANKS: Commissioner Gant?

9 COMMISSIONER GANT: Present.

10 MS. FRANKS: Commissioner Hartsfield?

11 COMMISSIONER HARTSFIELD: Present.

12 MS. FRANKS: Commissioner Biele?

13 COMMISSIONER BIELE: Present.

14 MR. KEVIN MULLALLY: Good morning, Mr. Chairman, members

15 of the Commission. The first item for your consideration is

16 under Tabs A and B, the minutes of November 29th and

17 January 12th.

18 COMMISSIONER HINRICHS: I would move to approve the

19 minutes as distributed.

20 COMMISSIONER GANT: Second.

21 CHAIRMAN BARTCH: Any further discussion?

22 (NO RESPONSE.)

23 CHAIRMAN BARTCH: Call the roll.

24 MS. FRANKS: Chairman Bartch?

25 CHAIRMAN BARTCH: Approve.

1 MS. FRANKS: Commissioner Hinrichs?

2 COMMISSIONER HINRICHS: Approve.

3 MS. FRANKS: Commissioner Gant?

4 COMMISSIONER GANT: Approve.

5 MS. FRANKS: Commissioner Hartsfield?

6 COMMISSIONER HARTSFIELD: Approve.

7 MS. FRANKS: Commissioner Biele?

8 COMMISSIONER BIELE: Approve.

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

10 minutes of the November 29, 2004 and January 12, 2005

11 meetings.

12 MR. MULLALLY: Mr. Chairman, we have a number of

13 hearing officer recommendations. The first two were heard by

14 Hearing Officer Gary Jenkins, who will make the presentations.

15 CHAIRMAN BARTCH: Good morning, Gary.

16 MR. GARY JENKINS: Good morning.

17 These two cases are exactly the same. And

18 I'll explain that when I get into it. The first case is

19 Brendan Kaiser, Case No. DC-03-065. And in this case

20 Mr. Kaiser had been charged with a violation of gaming

21 regulations and recommended his license be revoked. And he

22 was -- he let his license lapse.

23 COMMISSIONER GANT: Sir, can you wait a

24 minute? That's not the order we had it. What was the

25 man's name again?

1 MR. JENKINS: Brendan Kaiser.

2 MR. MULLALLY: Bracy is first.

3 MS. FRANKS: Bracy is first.

4 MR. JENKINS: I'm sorry.

5 COMMISSIONER HINRICHS: This is Missouri, what the

6 heck.

7 MR. JENKINS: Okay. Reginald Bracy, Case

8 No. DC-03-058. And in this case Mr. Bracy had a

9 disciplinary action pending for his Level II gaming license.

10 And he has allowed that to lapse prior to -- he'd asked for a

11 hearing, and then he allowed it to lapse prior to the hearing.

12 And the State filed a motion with me to

13 dismiss Mr. Bracy's petition to have the hearing. And we did

14 not hear from Mr. Bracy. But in my research I found

15 that whoever holds a state license and they

16 were -- they're given a right to due process or a right to a

17 hearing on the facts, according to state statutes.

18 If they let that license lapse, why, they lose the

19 right to due process. That was a case in Minnesota in

20 the Eighth Circuit which says it's not mandatory that we

21 follow that, but it is instructive in which a liquor store had

22 a liquor license, and they asked for a renewal.

23 Then they denied the renewal, and they were allowed

24 a hearing. But then they let the liquor license lapse. And

25 the Eighth Circuit ruled that once they let that liquor

1 license lapse, why they could never have a hearing on those

2 facts again for that renewal.

3 Now, that would not stop them from reapplying for a

4 license -- occupational license, then those facts

5 could all be considered at that time.

6 So I recommend that the Attorney General's

7 motion be sustained, and the Petitioner be denied a

8 hearing.

9 COMMISSIONER HARTSFIELD: I move to approve

10 Resolution 05-014 as submitted.

11 COMMISSIONER HINRICHS: Second.

12 CHAIRMAN BARTCH: Any further discussion?

13 (NO RESPONSE.)

14 COMMISSIONER BARTCH: Please call the roll.

15 MS. FRANKS: Chairman Bartch?

16 COMMISSIONER BARTCH: Approve.

17 MS. FRANKS: Commissioner Hinrichs?

18 COMMISSIONER HINRICHS: Approve.

19 MS. FRANKS: Commissioner Gant?

20 COMMISSIONER GANT: Approve.

21 MS. FRANKS: Commissioner Hartsfield?

22 COMMISSIONER HARTSFIELD: Approve.

23 MS. FRANKS: Commissioner Biele?

24 COMMISSIONER BIELE: Approve.

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

1 Resolution No. 05-014.

2 MR. JENKINS: The second case is Brendan

3 Kaiser, Case No. DC-03-065. And this is the same

4 circumstance. The Commission had recommended that

5 Mr. Kaiser's license be revoked. He had allowed that to

6 lapse.

7 He had asked for a hearing. He allowed that to

8 lapse prior to the hearing. And I find the same results for

9 Mr. Kaiser. And I sustained the Attorney General's motion to

10 dismiss the Petitioner's appeal for a hearing.

11 CHAIRMAN BARTCH: So the circumstances are exactly

12 the same?

13 MR. JENKINS: Exactly the same thing.

14 COMMISSIONER HINRICHS: I move to approve

15 Resolution No. 05-015.

16 COMMISSIONER HARTSFIELD: Second.

17 CHAIRMAN BARTCH: Any further discussion?

18 (NO RESPONSE.)

19 CHAIRMAN BARTCH: If not, please call the roll.

20 MS. FRANKS: Chairman Bartch?

21 COMMISSIONER BARTCH: Approve.

22 MS. FRANKS: Commissioner Hinrichs?

23 COMMISSIONER HINRICHS: Approve.

24 MS. FRANKS: Commissioner Gant?

25 COMMISSIONER GANT: Approve.

1 MS. FRANKS: Commissioner Hartsfield?

2 COMMISSIONER HARTSFIELD: Approve.

3 MS. FRANKS: Commissioner Biele?

4 COMMISSIONER BIELE: Approve.

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

6 Resolution No. 05-015.

7 MR. MULLALLY: Hearing Officer Steve Stark presided

8 over the next five cases, and he will make those

9 presentations.

10 MR. STEPHEN STARK: Good morning. The first case on the

11 agenda is David Shy. Mr. Shy was a licensee who was

12 convicted of, let's see, a Class D felony of driving while

13 intoxicated.

14 He requested a hearing. And another hearing

15 officer, Mr. Bresnahan (phonetic sp.), was the hearing officer

16 at that time. Mr. Bresnahan has since left being a hearing

17 officer for the Commission and is a Circuit Court judge in

18 St. Louis County.

19 So I looked over the record of this case, and have

20 rendered my recommendations. Now, in this case Mr. Shy did

21 not even show up for his hearing. The Commission has a

22 regulation that basically states that if you fail to show up

23 for the hearing scheduled for you, that that would be deemed

24 an admission of the facts as alleged.

25 So basically, based on two grounds, the fact of the

1 criminal conviction and the fact that he did not show up for

2 the hearing, would be a basis for my recommendation that the

3 revocation of Mr. Shy's license be affirmed.

4 COMMISSIONER GANT: I have a question. This