00001

01 COVER SHEET INFORMATION

02 Hearing Before the: Missouri Gaming Commission

03 In Re: Commission Resolutions/Approvals

04 Date Taken: August 23, 2006

00002

01 PUBLIC HEARING BEFORE THE MISSOURI GAMING COMMISSION

03 BE IT REMEMBERED that the above-entitled matter

04 came on for a public hearing at the Maryland Heights

05 Community Center, 2340 McKelvey Road, County of St.

06 Louis, State of Missouri, on the 23rd day of August,

07 A.D., 2006, commencing at the hour of 11:00 in the

08 morning of that day, said hearing having been called by

09 The Missouri Gaming Commission pursuant to the issuance

10 of due notice to all parties in interest, and the

11 following is a transcript of the record made of all

12 proceedings had during the course of said hearing.

00003

01 APPEARANCES:

02 Chairman Noel Shull

03 Commissioner Darryl Jones

04 Commissioner Samuel Hais

05 Executive Director Gene McNary

06 Angie Franks

08 I N D E X

09 SPEAKERS: Page

10 LT. KEITH JOHNSON . . . . . . . . . . . . . . . 8

11 CLARENCE GREENO . . . . . . . . . . . . . . . . 11

12 MARTHA LEMOND . . . . . . . . . . . . . . . . . 16

13 MELISSA STEPHENS . . . . . . . . . . . . . . . . 30

14 DEBORAH A. FERGUSON . . . . . . . . . . . . . . 44

00004

01 MISSOURI GAMING COMMISSION MEETING

02 CHAIRMAN SHULL: Good morning. My name is

03 Noel Shull and I'm joined by Commissioner Jones and

04 also Commissioner Hais from St. Louis. And we're ready

05 to get the meeting underway. Call roll, please.

06 MS. FRANKS: Chairman Shull?

07 CHAIRMAN SHULL: Present.

08 MS. FRANKS: Commissioner Jones?

09 COMMISSIONER JONES: Present.

10 MS. FRANKS: Commissioner Hais?

11 COMMISSIONER HAIS: Present.

12 CHAIRMAN SHULL: The first item is the

13 consideration of minutes of the meeting of June 14th.

14 COMMISSIONER HAIS: I make a motion to

15 approve these minutes.

16 COMMISSIONER JONES: Second.

17 CHAIRMAN SHULL: Further discussion? Call

18 the roll, please.

19 MS. FRANKS: Chairman Shull?

20 CHAIRMAN SHULL: Approve.

21 MS. FRANKS: Commissioner Jones?

22 COMMISSIONER JONES: Approve.

23 MS. FRANKS: Commissioner Hais?

24 COMMISSIONER HAIS: Approve.

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

00005

01 the minutes of the June 14, 2006 meeting.

02 CHAIRMAN SHULL: The next item is the

03 consideration of minutes from the July 26, 2006

04 meeting.

05 COMMISSIONER HAIS: Chairman, I would move

06 to approve the minutes of that meeting.

07 COMMISSIONER JONES: Second.

08 CHAIRMAN SHULL: Further discussion? Call

09 the roll, please.

10 MS. FRANKS: Chairman Shull?

11 CHAIRMAN SHULL: Approve.

12 MS. FRANKS: Commissioner Jones?

13 COMMISSIONER JONES: Approve.

14 MS. FRANKS: Commissioner Hais?

15 COMMISSIONER HAIS: Approve.

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

17 the minutes of the July 26, 2006 meeting.

18 CHAIRMAN SHULL: The next issue I'm going

19 to turn over to Director McNary for discussion.

20 MR. MCNARY: Mr. Chairman, Members of the

21 Commission, Resolution 06-042 regards authorization to

22 solicit bids for auditor services. This was requested

23 by the chairman for the opportunity to go for RFP's.

24 This is the initial reading and we would look for your

25 approval of the resolution.

00006

01 CHAIRMAN SHULL: As I read that, it was

02 indicated that it was a financial and a performance

03 audit. Would there be any consideration of adding

04 'compliance audit' to that language that we have?

05 MR. MCNARY: Mr. Chairman, if you want

06 that added, that'll be added to the resolution.

07 COMMISSIONER HAIS: I move that we amend

08 the Resolution Number 06-042 to include the audit just

09 enumerated by you, Mr. Chairman.

10 COMMISSIONER JONES: I second.

11 CHAIRMAN SHULL: I'll ask if there are any

12 comments? Call the roll.

13 MS. FRANKS: Chairman Shull?

14 CHAIRMAN SHULL: Approve.

15 MS. FRANKS: Commissioner Jones?

16 COMMISSIONER JONES: Approve.

17 MS. FRANKS: Commissioner Hais?

18 COMMISSIONER HAIS: Approve.

19 MS. FRANKS: You need to vote for the

20 amended resolution.

21 COMMISSIONER JONES: Right. I have a

22 question. Is this a multi-year RFP for the audit?

23 MR. MCNARY: That's not in the resolution,

24 Commissioner. It can be added.

25 COMMISSIONER JONES: Okay.

00007

01 MR. MCNARY: It's supposed to be every

02 three years or whatever the Commission would decide on.

03 COMMISSIONER JONES: Well, I guess what

04 I'm saying is the, the contact on that that is approved

05 are selected from someone from the RFP. Will it be a

06 one-year or will it be a single year audit, or will

07 they do it every year, you know, for, I don't know,

08 five years, three years or whatever?

09 MR. MCNARY: The way it reads right now,

10 it would be for the fiscal year of 2006 and that's all.

11 MR. JONES: Okay. Just for this one,

12 single year?

13 MR. MCNARY: Yes, sir.

14 CHAIRMAN SHULL: Are there any other

15 comments or questions?

16 COMMISSIONER HAIS: I would move to

17 approve the amended resolution.

18 MR. MCNARY: Mr. Chairman, for point of

19 clarification, it would then read: Financial

20 compliance and performance audit, on the last line?

21 CHAIRMAN SHULL: Correct.

22 MR. MCNARY: Thank you.

23 COMMISSIONER JONES: I will second.

24 CHAIRMAN SHULL: Is there any further

25 discussion? Call the roll.

00008

01 MS. FRANKS: Chairman Shull?

02 CHAIRMAN SHULL: Approve.

03 MS. FRANKS: Commissioner Jones?

04 COMMISSIONER JONES: Approve.

05 MS. FRANKS: Commissioner Hais?

06 COMMISSIONER HAIS: Approve.

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

08 Resolution Number 06-042, as amended.

09 MR. MCNARY: Mr. Chairman, the next item

10 is consideration of re-licensure of certain suppliers,

11 and Lt. Keith Johnson will speak to those issues.

12 MR. JOHNSON: Good morning, Mr. Chairman.

13 CHAIRMAN SHULL: Good morning.

14 MR. JOHNSON: Commissioners.

15 COMMISSIONER JONES: Good morning.

16 COMMISSIONER HAIS: Good morning.

17 MR. JOHNSON: Background investigations,

18 which included criminal checks and tax reviews of the

19 following suppliers and their respective key persons

20 have been conducted in conjunction with their re-

21 licensing: Midwest Gaming Supply Company; Shuffle

22 Master, Incorporated; WMS Gaming, Incorporated. The

23 results of these investigations were provided to the

24 Gaming Commission staff for their review and

25 recommendation.

00009

01 MR. MCNARY: Mr. Chairman, the Highway

02 Patrol and the Commission investigators find no reason

03 not to re-license.

04 CHAIRMAN SHULL: Do we have a motion to

05 approve?

06 COMMISSIONER HAIS: I would so move,

07 Mr. Chairman.

08 COMMISSIONER JONES: Second.

09 CHAIRMAN SHULL: Any further discussion?

10 Call the roll, please.

11 MS. FRANKS: Chairman Shull?

12 CHAIRMAN SHULL: Approve.

13 MS. FRANKS: Commissioner Jones?

14 COMMISSIONER JONES: Approve.

15 MS. FRANKS: Commissioner Hais?

16 COMMISSIONER HAIS: Approve.

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

18 Resolution Numbers 06-043, 06-044 and 06-045.

19 MR. MCNARY: Next item is consideration of

20 Level 1/Key Applicants. Lt. Johnson?

21 MR. JOHNSON: Highway Patrol and Gaming

22 Commission investigators conducted a background

23 investigation on the following Level 1 applicants that

24 included, but was not limited to, criminal, financial

25 and general character inquiries: Robert Forster, Jr.,

00010

01 Director of Slot Operations of AmeriStar Casino,

02 St. Charles. Results of the investigation were

03 provided to the Gaming Commission staff for their

04 review and recommendation.

05 MR. MCNARY: Mr. Chairman, the

06 investigation, as a result of the investigation, we

07 find no reason not to approve them.

08 CHAIRMAN SHULL: Are there any questions,

09 comments?

10 COMMISSIONER HAIS: I move to approve the

11 license.

12 COMMISSIONER JONES: Second.

13 CHAIRMAN SHULL: Is there any further

14 discussion? Call the roll, please.

15 MS. FRANKS: Chairman Shull?

16 CHAIRMAN SHULL: Approve.

17 MS. FRANKS: Commissioner Jones?

18 COMMISSIONER JONES: Approve.

19 MS. FRANKS: Commissioner Hais?

20 COMMISSIONER HAIS: Approve.

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

22 Resolution Number 06-046.

23 MR. MCNARY: Mr. Chairman, under

24 Consideration of Rules and Regulations, the first three

25 proposed amendments will be presented by Clarence

00011

01 Greeno.

02 MR. CLARENCE GREENO: Mr. Chairman, Commissioners,

03 the first item behind Tab H is the proposed amendment

04 to 11 CSR 45-5.180, relating to tournaments held by

05 casino licensees. The proposed changes to this, we

06 will clarify for licensees what constitutes tournament

07 entry fees and the fact they are subject to the

08 adjusted gross receipts tax established by Missouri

09 Revised Statute.

10 The proposal recognizes the casino as a business

11 and thereby provides the casino the ability to retain

12 up to 20 percent of all entry fees to cover business-

13 related expenses.

14 The proposal also allows both cash or non-cash

15 winnings to be deductible from adjusted gross revenue,

16 but only to the amount of the tournament, of the

17 tournament's total entry fees.

18 I'd be happy to entertain any questions you

19 might have relative to this rule before you.

20 COMMISSIONER JONES: Mr. Greeno, what's

21 the penalty for violation if it's, if they return with

22 a 75%?

23 MR. GREENO: It would be an administrative

24 penalty that would go before the disciplinary review

25 board as any other violation of regulations for minimum

00012

01 intern control standards.

02 MR. MCNARY: Mr. Chairman, would you

03 prefer to take these individually?

04 CHAIRMAN SHULL: I think we probably

05 should take them individually.

06 MR. MCNARY: Okay.

07 COMMISSIONER HAIS: Mr. Chairman, I move

08 for the adoption of the proposal.

09 COMMISSIONER JONES: I'll second.

10 CHAIRMAN SHULL: Is there any further

11 discussion? Call the roll, please.

12 MS. FRANKS: Chairman Shull?

13 CHAIRMAN SHULL: Approve.

14 MS. FRANKS: Commissioner Jones?

15 COMMISSIONER JONES: Approve.

16 MS. FRANKS: Commissioner Hais?

17 COMMISSIONER HAIS: Approve.

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

19 11 CSR 45-5.180.

20 MR. GREENO: The next item I'd like to

21 discuss is a proposed amendment to 11 CSR 45-5.190,

22 relating to minimum standards for electronic gaming

23 devices. The revisions to this rule clarify for gaming

24 device manufacturers and casino operators the criteria

25 with which an electronic gaming device must comply to

00013

01 be offered for play in Missouri-licensed riverboat

02 casinos.

03 Specifically, it clarifies that slot machine

04 pay glass and its corresponding artwork for

05 mechanical displays must be submitted to the

06 Commission's independent testing laboratory for review

07 and approval prior to implementation within the state.

08 While the Commission staff believes this has been a

09 long-standing requirement as set forth as standards

10 adopted by the Commission for testing of electronic

11 gaming devices, there seems to have been other

12 interpretation by some in the industry.

13 In addition, this makes the Commission's

14 expectations patently clear on the issue. As you might

15 recall, you recently had a discipline case before you

16 in which a number of pay glass discrepancies were

17 identified on gaming devices offered for pay for play

18 in Missouri casinos. The discrepancies occurred

19 because the manufacturer had not followed the required

20 submission protocol.

21 The proposed revision also requires gaming

22 device manufacturers to comply with the gaming law

23 standards set forth in Chapter E of the Commission's

24 Minimum Internal Control Standards.

25 Again, I'd be happy to answer any questions you

00014

01 may have.

02 COMMISSIONER HAIS: Just a reply. This is

03 fairly minimum standard; is that what you're saying?

04 MR. GREENO: Yes, sir, it is. And I think

05 adding this wording merely clarifies the Commission's

06 decision and the necessity to have pay glass

07 submitted for approval.

08 COMMISSIONER HAIS: Thank you. I move to

09 approve the adoption of the proposed amendment.

10 COMMISSIONER JONES: Second.

11 CHAIRMAN SHULL: Any further discussion?

12 Call the roll.

13 MS. FRANKS: Chairman Shull?

14 CHAIRMAN SHULL: Approve.

15 MS. FRANKS: Commissioner Jones?

16 COMMISSIONER JONES: Approve.

17 MS. FRANKS: Commissioner Hais?

18 COMMISSIONER HAIS: Approve.

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

20 11 CSR 45-5.190.

21 MR. GREENO: The next proposed amendment

22 is to 11 CSR 45-5.200, relating to progressive slot

23 machines. Presently, the rule requires all event logs

24 be maintained in a hard copy form for at least 60 days.

25 The revision will allow the required logs to be

00015

01 maintained electronically. And a lot of the other

02 progressive systems are presently controlled from Reno,

03 Nevada, and Gulfport, Mississippi. And again, this

04 allows for these logs to be maintained electronically

05 as opposed to the hard copy form.

06 CHAIRMAN SHULL: Is there a reason that

07 the requirement only is 60 days to retain that

08 information?

09 MR. GREENO: We feel that any event that

10 might occur concerning an area-wide progressive system

11 within that -- that occurs within that interim, would

12 be appropriately investigated and resolution made to

13 the issue.

14 COMMISSIONER JONES: Move for approval.

15 COMMISSIONER HAIS: I second it.

16 CHAIRMAN SHULL: Call the roll.

17 MS. FRANKS: Chairman Shull?

18 CHAIRMAN SHULL: Approve.

19 MS. FRANKS: Commissioner Jones?

20 COMMISSIONER JONES: Approve.

21 MS. FRANKS: Commissioner Hais?

22 COMMISSIONER HAIS: Approve.

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

24 11 CSR 45-5.200.

25 MR. MCNARY: Mr. Chairman, proposed

00016

01 amendments four through six will be presented by

02 Martha LeMond.

03 MS. MARTHA LEMOND: Good morning, Mr. Chairman.

04 The three proposed tax rate proposals presented today

05 contain changes that are all intended to re-qualify and

06 streamline the tax return process to more accurately

07 reflect the improved electronic filing system that

08 became effective April 1, 2006.

09 The regulations before you for consideration

10 are: 11 CSR 45-11.040, Return-Gaming Taxes;

11 11CSR4511.090, Determination of Timeliness and

12 Extensions for Filing a Return. This is a proposed

13 revision. Parts of that are now included in the

14 foregoing regulation of return, and also in the

15 following, in 11 CSR 45-11.110 Refund-Claim for Refund.

16 This last regulation continues to bear the standards

17 set forth in the Department of Revenue statutes and

18 regulations.

19 Do you want to talk about any one of them in

20 specific or do you have any questions?

21 CHAIRMAN SHULL: I have a question.

22 MS. LEMOND: Yes, sir.

23 CHAIRMAN SHULL: On an application for a

24 refund that is made, who approves the disbursement of

25 that?

00017

01 MS. LEMOND: It's reviewed by our tax

02 auditors. There's a standard form that they send in.

03 We review the claim. We go back and we review the

04 records, we make any necessary adjustments in the

05 record, refunds, whatever is presented for the

06 director's signature. All of that is basically a

07 regulatory delegation of authority for that signature.

08 And by the way, I have Ms. Jennifer Bruns here. She's

09 our senior tax auditor if you have any more specific

10 questions.

11 CHAIRMAN SHULL: I was just wondering.

12 And what you said is that the director does approve all

13 refunds?

14 MS. LEMOND: Yes, sir. Currently. That's

15 what I understand.

16 MR. MCNARY: Do you want to consider

17 those, all three of them, at the same time?

18 CHAIRMAN SHULL: That would be fine. Any

19 further questions?

20 COMMISSIONER HAIS: No.

21 COMMISSIONER JONES: I move for approval

22 of 11 CSR 45-11.040, .090, .110.

23 COMMISSIONER HAIS: Second.

24 CHAIRMAN SHULL: Any comments or

25 questions? Call roll.

00018

01 MS. FRANKS: Chairman Shull?

02 CHAIRMAN SHULL: Approve.

03 MS. FRANKS: Commissioner Jones?

04 COMMISSIONER JONES: Approve.

05 MS. FRANKS: Commissioner Hais?

06 COMMISSIONER HAIS: Approve.

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

08 11 CSR 45-11.040 and 11.090 and 11.110.

09 MR. MCNARY: Mr. Chairman, as far as

10 amendments seven through ten, we'll call on Clarence

11 Greeno again.

12 MR. GREENO: Mr. Chairman, Commissioners,

13 the next proposal is an amendment to 11 CSR 45-12.020,

14 defining excursion liquor license and licensed premises

15 as it relates to our liquor control regulations.

16 Licensed premises is being defined as any and

17 all property owned and operated by the Class A

18 applicant or licensee immediately adjacent to and

19 continuous with this riverboat gaming operation.

20 Also under the proposal, the excursion liquor

21 license will now allow for the sale of intoxicating

22 liquor in the original package at locations

23 specifically indicated on the license for consumption

24 off the licensed premises. Allowing sales in the

25 original package for consumption off the premises is

00019

01 consistent with the provisions offered, established as

02 regulated by the Missouri Division of Alcohol and

03 Tobacco Control. Basically, the proposed amendment

04 evens the playing field.

05 Are there any questions on this proposal?

06 COMMISSIONER JONES: One question. Does

07 this extend to the parking facility? If they wanted to

08 set up something outside of the establishment itself,

09 would that also be included, if it was in a parking

10 facility?

11 MR. GREENO: Presently, the liquor, the

12 liquor licenses granted by the Commission, presently

13 extend to the premises as defined in this regulation

14 and are controlled by the Commission. For example, if

15 they have a concert out on the parking lot or some type

16 of gathering out on the parking lot, their by-the-drink

17 license extends to that area.

18 Now, as far as granting package sales out in

19 that area, package sales will only be allowed in areas

20 specifically defined on the license. So to sell

21 packaged liquor at some event out in the parking lot, I

22 would say no. If on the other hand, one of the

23 licensee said, say, built a gas station, convenience

24 store operation on the edge of their parking, then that

25 would fall under the Gaming Commission's purview for

00020

01 granting a liquor license in that particular

02 establishment on the premises could be, would be

03 included.

04 COMMISSIONER JONES: But they would have

05 to amend that license to include that?

06 MR. GREENO: Yes, sir.

07 COMMISSIONER JONES: Okay.

08 MR. GREENO: Yes, sir. They would.

09 CHAIRMAN SHULL: So what this is saying is

10 that they have the ability to sell packaged liquor and

11 you can take it to the hotel --

12 MR. GREENO: Yes, sir.

13 CHAIRMAN SHULL: -- and consume it?

14 MR. GREENO: Yes, sir. Or they could

15 carry it off the premises if it's in its original

16 container. One thing that we're trying to prevent,

17 preclude, we don't want anyone buying a bottle or

18 buying packaged liquor at any location on the premises,

19 and walking around the streetscapes or paseo areas on

20 the premises or on the parking lot drinking that

21 liquor. It's specifically for consumption off the

22 licensed premises.

23 COMMISSIONER HAIS: I move to amend the

24 proposed amendment 45-12.020.

25 COMMISSIONER JONES: Second.

00021

01 CHAIRMAN SHULL: Is there any further

02 discussion? Call the roll.

03 MS. FRANKS: Chairman Shull?

04 CHAIRMAN SHULL: Approve.

05 MS. FRANKS: Commissioner Jones?

06 COMMISSIONER JONES: Approve.

07 MS. FRANKS: Commissioner Hais?

08 COMMISSIONER HAIS: Approve.

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

10 11 CSR 45-12.020.

11 MR. GREENO: Gentlemen, next is a proposed

12 amendment to 11 CSR 45-12.040, relating to excursion

13 liquor license applications. The proposal merely

14 clarifies that the application shall also include the

15 areas of the premises where intoxicating liquor will be

16 sold and stored. That information is presently

17 required; however, it is not included -- it is required

18 on the application form when they submit it. It's just

19 not clarified in the rule.

20 CHAIRMAN SHULL: Are there any questions?

21 COMMISSIONER HAIS: I move to approve

22 11 CSR 45-12.040, as amended.

23 COMMISSIONER JONES: Second.

24 CHAIRMAN SHULL: Are there any

25 discussions? Call the roll.

00022

01 MS. FRANKS: Chairman Shull?

02 CHAIRMAN SHULL: Approve.

03 MS. FRANKS: Commissioner Jones?

04 COMMISSIONER JONES: Approve.

05 MS. FRANKS: Commissioner Hais?

06 COMMISSIONER HAIS: Approve.

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

08 11 CSR 45-12.040.

09 MR. GREENO: The next amendment is to

10 11 CSR 45-12.080, which establishes the times during

11 which liquor may be served, offered for sale, sold or

12 supplied. Presently, the rule allows liquor to be

13 served in non-gaming areas from 8:00 a.m. until 1:30

14 a.m. the following day.

15 We are proposing the phrase 'unless the

16 Commission specifically approves other hours of

17 operation’ to be added. This will provide the

18 Commission the flexibility to allow hours of operation

19 consistent with those allowed other establishments in

20 the area in which the casino is located. An example

21 would be the convention trade areas designated within

22 the statute for the City of St. Louis, St. Louis

23 County, Kansas City, Jackson County, etcetera, wherein

24 if the governmental bodies of any of those entities

25 authorizes extended operating hours, the Commission

00023

01 could also adjust hours of operation to again provide

02 equal competitiveness for licensees.

03 COMMISSIONER HAIS: Mr. Greeno, some of

04 those operations are necessitated or need 24 hours a

05 day, from hotel to hotel, for example.

06 MR. GREENO: Some hotels, yes, sir.

07 COMMISSIONER HAIS: And possibly others.

08 And are you concerned about the danger of extending the

09 drinking hours in terms of additional crimes being

10 committed such as driving under the influence of

11 alcohol or other, other offenses that seem to arise

12 from increased hours of drinking?

13 MR. GREENO: I don't feel the proposed

14 amendment would impact that greatly. And the reason

15 is, for example, these, this would be in an area, a

16 convention trade area. Let's say, for example, the new

17 Pinnacle property is being built in the Laclede's

18 Landing area. All of the taverns, bars and lounges in

19 the Laclede's Landing area -- well, in St. Louis City,

20 for that matter, or in the convention trade area, can

21 stay open until 3:00 a.m. Whereas, within the casino,

22 by restricting it to 1:30 a.m., we would be putting the

23 lounges at the casino property at a competitive

24 disadvantage compared to some of the lounges in

25 Laclede's Landing.

00024

01 So realistically, if we only allowed the sale

02 until 1:30 a.m., if a person wanted a drink, they could

03 just leave the casino and go down the street to one of

04 the lounges at Laclede's Landing to complete their

05 drinking, if you will.

06 COMMISSIONER HAIS: I understand. But

07 just to take that one step up, and if I might, unless

08 I'm misreading this, doesn't it leave the option open

09 to the Commission of extending the hours past 3 a.m.?

10 MR. GREENO: I guess it would. It would

11 leave that open to the Commission. Yes, sir. I would,

12 I guess I would consider the good judgment of the

13 Commission not to extend those hours beyond those that

14 are granted by the Division of Alcohol and Liquor

15 Control or by the establishments located in the area.

16 COMMISSIONER HAIS: The Commission would

17 have the authority to extend beyond the existing liquor

18 laws?

19 MR. GREENO: Yes, sir. The way the law is

20 presently written and the regulations governing liquor

21 control, is that Missouri Gaming Commission is the sole

22 authorizing authority for liquor licenses on licensed

23 riverboats and their premises. The Commission has just

24 always taken the stand that the hours of operation

25 would be consistent with those authorized by the

00025

01 Missouri Division of Alcohol and Tobacco Control for

02 other establishments in the area. The way -- the

03 manner in which the regulation is presently written,

04 realistically places our casinos at a competitive

05 disadvantage to other casinos in the immediate area.

06 Now, I would have to say presently, the City of

07 St. Louis is the only jurisdiction that has adopted the

08 Convention Trade Area Provision of Chapter 311, while

09 St. Louis County, Jackson County and the City of Kansas

10 City are eligible, they have not adopted it.

11 COMMISSIONER HAIS: Let me just for the

12 record say that I understand that the situation, and I,

13 while on one hand, I feel that -- and just for the

14 record, I feel that placing our casinos at a

15 competitive disadvantage is the wrong thing to do, I

16 want the record to reflect very clearly that while I

17 sit on this Commission, I would never vote to, no

18 matter what -- I want there to be no misunderstanding

19 by anyone who hears me or reads this record at some

20 future time, to imagine that there's any conceivable

21 reason why I would ever vote to extend the hours past

22 what is the standard in the area of other businesses.

23 COMMISSIONER JONES: Mr. Chairman, I have

24 a problem with the wording missing. I would hope that

25 we can table this until we can get some further

00026

01 discussion on this.

02 MR. GREENO: Well, Mr. Chairman, this is a

03 proposed rule and the judge's comments can be taken in

04 to amend the rule as it proceeds through the process.

05 So by asking, by adopting the proposal today, it is not

06 a final action.

07 COMMISSIONER HAIS: Well, let me clarify

08 in case this may be misconstrued in any way. I would

09 be inclined to vote in favor of the proposed amendment;

10 however, I don't want there to be any misunderstanding

11 about my feeling that increased drinking hours as a way

12 of achieving a positive competitive advantage is

13 inappropriate, also. It can all come down on the side

14 of common sense and reason and fairness, rather than

15 being used as either as a shield or as a sword. And so

16 I just want to make that clear.

17 MR. GREENO: I very much agree and

18 hopefully, the Commission, in their judgment and

19 consideration, would not approve hours of operation

20 beyond that that is offered other establishments.

21 COMMISSIONER HAIS: Like I said, I would

22 move to approve the proposed amendment 11 CSR 45-12.080,

23 as amended.

24 CHAIRMAN SHULL: There is no second. So

25 therefore, we will look at it another time.

00027

01 MR. GREENO: Lastly, on my part anyway, is

02 the proposed amendment to 11 CSR 45-12.090, on the rules

03 of liquor control. The primary function of this rule

04 is to reflect changes in the general liquor control law

05 under Chapter 311 of the Revised Statutes of the State

06 of Missouri.

07 The first change updates the forms of acceptable

08 identification a licensee can rely upon to determine if

09 a person is of legal age to purchase intoxicating

10 liquor.

11 The next three changes are additional rules

12 being proposed. The first relates to complimentary

13 service of intoxicating liquor prohibiting an excursion

14 liquor licensee or an employee thereof from supplying

15 intoxicating liquor in any quantity free of charge to

16 any person on a gaming floor or the premises. This has

17 been a long-standing policy of the Commission. This

18 proposal acts to clarify that policy.

19 The second rule allows patrons to carry

20 unfinished bottles of wine out of restaurants, provided

21 certain conditions are met. The proposed regulation

22 and the conditions imposed are identical to those set

23 forth in Chapter 311 of the Revised Statutes in which

24 establishments licensed under the Missouri Division of

25 Alcohol and Tobacco Control must comply.

00028

01 The last rule allows excursion liquor licensees

02 to prevent certain charitable or religious

03 organizations or educational institutions to hold

04 events and activities for which an admission is charged

05 and beer, wine, brandy or non-intoxicating beer which

06 has been donated and delivered and is available without

07 a separate charge or auctions of wine in the original

08 package for fundraising purposes. Again, this rule is

09 identical to that set forth in Chapter 311 of the

10 Revised Statutes, to which establishments licensed by

11 the Missouri Division of Alcohol and Tobacco Control

12 are licensed.

13 These proposed rules can provide equity in

14 liquor control regulations and will assist the State's

15 licensed casino properties to remain competitive in the

16 communities in which they are located.

17 COMMISSIONER HAIS: Just one thing if I

18 may. The provision in paragraph, sub-paragraph C --

19 excuse me -- D, rather, of section 23. I'd like to

20 take a minute to address the problem created by the

21 container law.

22 MR. GREENO: Yes, sir.

23 COMMISSIONER HAIS: Has it been verified

24 with law enforcement agencies that this does, in fact,

25 meet requirements that they feel comfortable with as in

00029

01 addressing successfully that concern?

02 MR. GREENO: I have not addressed this

03 issue with law enforcement. Again, this provision D is

04 identical to the provision that is required by Chapter

05 311 in Missouri's liquor control laws.

06 I would think that if a restaurant securely

07 resealed the bottles of wine and placed them in one-

08 time use, tamper-proof transparent bags and securely

09 sealed those bags, that that would meet, would meet the

10 intent of the law and would meet the unsealed container

11 provisions that could be enacted in most any

12 jurisdictions or by any jurisdiction. If the patron

13 then opens that secure, tamper-proof seal, then they

14 would be subject to enforcement of that law.

15 COMMISSIONER HAIS: Okay.

16 MR. GREENO: To be quite, you know, to be

17 quite frank, my daughter has come home from a winery

18 with re-sealed bottles of wine that they'd enjoyed with

19 dinner and it was not in any tamper-proof bag.

20 I think the burden of this would then be placed

21 upon the Commission to ensure the licensees follow the

22 requirements, seal the opened bottles in tamper-proof

23 bags, and if they fail to do so, then they'd be subject

24 to discipline before the Commission for violation of

25 these regulations.

00030

01 CHAIRMAN SHULL: Another remaining issue I

02 see with this would be if they are unable to take the

03 bottle of wine with them in a sealed container, that

04 they might be encouraged to sit in the restaurant and

05 consume all of it. So this does offer that option so

06 they would not feel obligated to go ahead and consume

07 the entire bottle.

08 COMMISSIONER HAIS: I move to approve the

09 amended 11 CSR 45-12-090.

10 COMMISSIONER JONES: Second.

11 CHAIRMAN SHULL: Any further discussion?

12 Call roll.

13 MS. FRANKS: Chairman Shull?

14 CHAIRMAN SHULL: Approve.

15 MS. FRANKS: Commissioner Jones?

16 COMMISSIONER JONES: Approve.

17 MS. FRANKS: Commissioner Hais?

18 COMMISSIONER HAIS: Approve.

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

20 11 CSR 45-12.090.

21 MR. MCNARY: Thank you. Mr. Chairman, the

22 next items, 11 through 16, will be presented by Melissa

23 Stephens on the subject of disassociated persons list.

24 MS. STEPHENS: Good morning, Mr. Chairman,

25 Commissioners.

00031

01 CHAIRMAN SHULL: Good morning.

02 MS. STEPHENS: Thank you for the

03 opportunity to share these proposed rules and

04 amendments with you today. The six rule changes for

05 consideration for Chapter 17 that are located under Tab

06 H are items that we have been investigating for several

07 years in order to build a more flexible approach in

08 assisting problem gamblers in the state of Missouri.

09 The Voluntary Exclusion Program, which is also

10 known as the List of Disassociated Persons, or the

11 List, was designed in 1996 following the request of a

12 compulsive gambler. Missouri was the first state to

13 implement a state-wide self-exclusion program of this

14 nature. Since the implementation of the program,

15 Commission staff have received numerous inquiries, both

16 from problem gamblers and from pathological gamblers

17 who have requested a means to be able to self-exclude

18 for a shorter time period for a temporary self-

19 exclusion.

20 It's important to note that pathological

21 gambling refers to individuals that actually meet the

22 diagnostic criteria and it is exhibited -- or it is

23 identified as a chronic inability to resist the impulse

24 to gamble and can cause serious damage to an

25 individual's financial, vocational and social life. It

00032

01 was these gamblers that the program was originally

02 designed to assist. The prevalence rate for

03 pathological gambling is around one percent of the

04 population.

05 Problem gambling refers to gambling activity

06 that causes problems in an individual's social,

07 vocational or financial life, but it is not severe

08 enough that it yet meets the diagnostic criteria for

09 pathological gambling. The prevalence rate for problem

10 gambling is around three percent of the population.

11 And it is this group that we are primarily targeting

12 with these proposed changes. We'd like to be able to

13 make the program available to more individuals that are

14 suffering from self-destructive gambling behaviors.

15 Many of these individuals are seeking temporary

16 self-exclusion while they're in the middle of a

17 painful, personal event such as the loss of a loved one

18 or some other type of chronic, traumatic situation.

19 And the research has shown that if we are able to make

20 means available to them to take steps to counteract

21 that impulse to gamble in a self-destructive manner,

22 that it can be very beneficial to them, and in many

23 cases, may actually help prevent them from traversing

24 the road to towards developing an addiction to

25 gambling. This is also referred to as episodic problem

00033

01 gambling because the trigger only occurs during these

02 personal events, these high-strung periods.

03 The staff has also received numerous requests

04 from individuals who are initiating their recovery

05 programs and in the early stages of it, they would want

06 to take advantage of a self-exclusion option, but it is

07 too intimidating for them to actually make that

08 commitment to a lifetime permanent self-exclusion for

09 the state of Missouri and in reality, for any other

10 affiliated casinos in other jurisdictions with

11 absolutely no procedures for removal.

12 Anecdotally, in the past, what we have done

13 whenever they have approached us was to recommend they

14 consider contacting individual casinos to see if the

15 casinos have a self-exclusion option available, but on

16 a shorter time frame. And what we have seen frequently

17 in the past is these individuals stepping into these

18 programs that allow them to take a one- or two-year

19 self-exclusion, and within that time frame, they do

20 become sure enough in their recovery program that they

21 actually do take that next step to place themselves on

22 a lifetime program. So again, offering a baby step, as

23 it were, for them to be able to self-exclude for a

24 temporary period, it gives them that opportunity to

25 take that more comfortable step in their recovery

00034

01 program until they are able to take that longer step.

02 So in drafting the proposal that has been

03 submitted for your review, the staff has vigorously

04 investigated these issues with leading experts in the

05 field, both researchers, as well as clinical educators,

06 individuals in the recovery field and advocates

07 throughout the nation, and actually, outside of the

08 borders of the U.S., as well. What you see is a

09 culmination of that consultation.

10 Some of the individuals that we have consulted

11 have been Joanna Franklin, who is the Vice-President of

12 the Institute on Problem Gambling, and she is one of

13 the premier clinical educators for problem gambling.

14 Carol O'Hare, who is the Executive Director for

15 the Nevada Council on Problem Gambling, and she is also

16 Vice-President of the National Council on Problem

17 Gambling. She, herself, is in recovery and has been so

18 for well over a decade.

19 Tim Christensen is President of the Association

20 of Problem Gambling, serves as administrator. And

21 Keith Whyte, who is Executive Director for National

22 Council on Problem Gambling.

23 We also solicited, in fact, individuals that are

24 currently on the list and other individuals in recovery

25 and personnel and other members of the treatment and

00035

01 research communities within Missouri.

02 In summary, the proposed provisions to the

03 Voluntary Exclusion Program provide the following

04 enhancements: 1) It removes the requirement for the

05 individuals to notify the casinos when they have

06 received direct marketing materials that they feel they

07 should no longer be receiving. Under the current

08 rules, the individuals are required to notify both the

09 casinos and the Missouri Gaming Commission. We feel it

10 is more than sufficient to require them to notify the

11 Gaming Commission and we can, in turn, notify the

12 casinos.

13 The disadvantage of having the individuals

14 notify the casinos is that while they're placing that

15 phone call for notification to the casinos, they are

16 often placed on hold and are hearing, obviously,

17 marketing materials, that is marketing for the casinos

18 to promote their own activities, which is well within

19 reason for the casinos to play on their phones. But it

20 could be a relapse trigger for an individual who is

21 struggling through a recovery program. We do not feel

22 that is appropriate.

23 And to expand some exclusion options to meet the

24 needs of the greater number of individuals suffering

25 from different levels of gambling problems, the

00036

01 applicants would be able to self-exclude and work their

02 recovery program and hopefully, utilize the available

03 treatment options before they determine whether a

04 lifetime exclusion would be the best option for them.

05 Disassociated persons would remain on a list for a

06 minimum of two years under the proposal submitted

07 before you.

08 The proposal still allows individuals to self-

09 exclude from all of the casinos in the state, as well

10 as to remove themselves from direct marketing lists and

11 players clubs and to deny check cashing privileges and

12 all of the other benefits that are currently a part of

13 this program.

14 The intent of a time line for treatment and

15 education is to strengthen the required disassociated

16 persons who wish to change their status either to

17 permanent or to remove their placement on the list. We

18 would require them to participate in Commission-

19 approved self-education outreach efforts that target

20 providing tools and information that is necessary for

21 the attendees to become better informed on how to make

22 healthy life choices, primarily with regard to their

23 gambling choices.

24 Disassociated persons must take an affirmative

25 action to request removal from the list. They would

00037

01 not simply drop off of the list after the expiration of

02 two years. They would have to take an action to say

03 that it is their desire to remove themselves from the

04 list. It is the responsibility of the individuals who

05 have removed their names from the list to request the

06 reinstatement of their gaming privileges with a Class

07 A, with a Class A licensee.

08 Part of the motivation for this inclusion form

09 is that if there are a number of individuals that would

10 like to remove themselves from the list for various

11 reasons, but they do not necessarily want to go back

12 and gamble. It's just a personal preference that they

13 no