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BEFORE THE MISSOURI GAMING COMMISSION
5 STATE OF MISSOURI
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9 Meeting
April 25, 2007
10 10:00 a.m.
Central Office
11 3417 Knipp Drive
Jefferson City, Missouri
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1 AGENDA
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I. Call to Order
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II. Minutes
4 A. March 28, 2007 6:4
5 III. Consideration of Relicensure of
Certain Suppliers 7:7
6 B. IGT
1. Resolution No. 07-018
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IV. Consideration of Disciplinary Action
8 C. Lanny V. Daise 8:20
1. DC-07-147
9 D. Ameristar Casino Kansas City, Inc. 10:19
1. DC-07-148
10 E. Ameristar Casino St. Charles, Inc. 16:2
1. DC-07-149
11 F. Aztar Missouri Riverboat Gaming 17:11
Company LLC
12 1. DC-07-150
G. Harrah's Maryland Heights, LLC 20:7
13 1. DC-07-151
H. Harrah's North Kansas City, LLC 21:22
14 1. DC-07-152
I. Harrah's North Kansas City, LLC 23:10
15 1. DC-07-153
J. HGI-St. Jo, Inc. 25:8
16 1. DC-07-154
K. IOC-Boonville, Inc. 26:23
17 1. DC-07-155
L. IOC-Boonville, Inc. 28:7
18 1. DC-07-156
M. IOC-Kansas City, Inc. 30:2
19 1. DC-07-157
N. IOC-Kansas City, Inc. 31:23
20 1. DC-07-158
21 V. Consideration of Settlement Agreements
O. Harrah's Maryland Heights, LLC 34:4
22 1. Resolution No. 07-019
P. Harrah's North Kansas City, LLC 35:9
23 1. Resolution No. 07-020
24 VI. Consideration of Licensure of Certain
Level I/Key Applicants
25 Q. Resolution No. 07-021 36:16
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1 AGENDA (CONT'D)
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PAGE
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VII. Caruthersville Update 38:9
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VIII. HGI--St. Jo, Inc. 40:9
5 HGI--Mark Twain, Inc. 43:14
Harrah's Maryland Heights, LLC 47:7
6 Pinnacle Entertainment, Inc. 49:22
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Discussion on Senate Bills by
8 David Welch 56:8
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1
2 BEFORE THE MISSOURI GAMING COMMISSION
STATE OF MISSOURI
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Meeting
7 April 25, 2007
10:00 a.m.
8 Central Office
3417 Knipp Drive
9 Jefferson City, Missouri
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14 COMMISSION MEMBERS PRESENT:
15 Noel J. Shull, Chairman
Darryl T. Jones
16 Samuel J. Hais
Larry W. Plunkett, Sr.
17 Suzanne B. Bradley
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20 Reported by:
Patricia A. Stewart, RMR, RPR, CCR 401
21 Midwest Litigation Services
3432 West Truman Boulevard, Suite 207
22 Jefferson City, Missouri 65109
(573) 636-7551
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1 P R O C E E D I N G S
2 CHAIRMAN SHULL: Good morning. I would like
3 to take this opportunity to introduce our newest member of
4 the Commission, Suzanne Bradley.
5 Suzanne is from St. Joseph, Missouri. She's
6 an attorney, and she's worked in some different firms.
7 She's currently with the firm of Shughart, Thomson &
8 Kilroy in Kansas City.
9 And we certainly do welcome you, Suzanne,
10 and look forward to you serving.
11 Would any of the members care to comment?
12 COMMISSIONER HAIS: I'd like to also echo
13 the Chairman's welcome to you, and particularly so,
14 because you're not only a fellow commissioner now but a
15 colleague of mine in the legal profession, and I know you
16 bring a wealth of experience and understanding of the
17 adjudicatory process. And, again, I welcome you and I
18 wish you the very, very best.
19 COMMISSIONER JONES: I'd like just to echo
20 everyone else's sentiments. Just welcome aboard, Suzanne.
21 I look forward to working with you.
22 COMMISSIONER BRADLEY: Thank you very much.
23 COMMISSIONER PLUNKETT: We're very honored
24 to have you on the Commission and we look forward to
25 working with you. You'll be a good addition to the
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1 Commission.
2 COMMISSIONER BRADLEY: Thank you. I'm
3 looking forward to this also. Thank you.
4 CHAIRMAN SHULL: The first order will be the
5 minutes for the March 28th meeting.
6 COMMISSIONER JONES: Motion to approve.
7 COMMISSIONER HAIS: Second.
8 CHAIRMAN SHULL: Is there any further
9 discussion?
10 Call the roll.
11 MS. FRANKS: Chairman Shull.
12 CHAIRMAN SHULL: Approved.
13 MS. FRANKS: Commissioner Jones.
14 COMMISSIONER JONES: Approved.
15 MS. FRANKS: Commissioner Hais.
16 COMMISSIONER HAIS: Approved.
17 MS. FRANKS: Commissioner Plunkett.
18 COMMISSIONER PLUNKETT: Approved.
19 MS. FRANKS: Commissioner Bradley.
20 COMMISSIONER BRADLEY: Approved.
21 MS. FRANKS: By your vote you've adopted the
22 March 28, 2007 meeting minutes.
23 CHAIRMAN SHULL: The next item I'm going to
24 turn over to Mr. McNary, Item 3.
25 MR. MCNARY: Mr. Chairman and Commissioners,
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1 first I too would like to welcome Commissioner Bradley.
2 This is the first time since I've been here we've had a
3 full complement of commissioners and that's nice.
4 Item No. 3 on the agenda is consideration of
5 relicensure of certain suppliers, and Lieutenant Gary
6 Moore will make that presentation.
7 LIEUTENANT MOORE: Good morning. Before I
8 start I'd like to congratulate Commissioner Bradley and
9 wish you well in the many challenges ahead of you.
10 Mr. Chairman and Commissioners, a
11 relicensing review was conducted on the following supplier
12 company with no derogatory information discovered.
13 The company is IGT, which stands for
14 International Game Technology. IGT is a global company
15 specializing in the design, manufacture and marketing of
16 computerized gaming equipment.
17 Thank you.
18 MR. MCNARY: Mr. Chairman, Staff finds no
19 reason not to relicense IGT.
20 CHAIRMAN SHULL: Are there any questions?
21 Call the roll -- or make a motion.
22 COMMISSIONER HAIS: Mr. Chairman, I move the
23 approval of Commission Resolution 07-018.
24 COMMISSIONER JONES: Second.
25 CHAIRMAN SHULL: Is there further
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1 discussion?
2 Call the roll.
3 MS. FRANKS: Chairman Shull.
4 CHAIRMAN SHULL: Approved.
5 MS. FRANKS: Commissioner Jones.
6 COMMISSIONER JONES: Approved.
7 MS. FRANKS: Commissioner Hais.
8 COMMISSIONER HAIS: Approved.
9 MS. FRANKS: Commissioner Plunkett.
10 COMMISSIONER PLUNKETT: Approved.
11 MS. FRANKS: Commissioner Bradley.
12 COMMISSIONER BRADLEY: Approved.
13 MS. FRANKS: By your vote you've adopted
14 Resolution No. 07-018.
15 MR. MCNARY: Mr. Chairman, Item 4 on the
16 agenda is consideration of disciplinary actions.
17 General Counsel Chris Hinckley.
18 MR. HINCKLEY: Good morning, Mr. Chairman,
19 Commissioners. Commissioner Bradley, welcome.
20 The first item for the Commission is under
21 Tab C and that has to do with Disciplinary Complaint
22 No. 07-147. The licensee in question is Lanny Daise,
23 Level 1 licensee, a safety and security manager at the HGI
24 St. Joe Casino.
25 The violation has to do with 11 CSR
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1 45-4.260(4)(Q). That regulation requires that -- states
2 that a licensee may be disciplined for incompetence,
3 misconduct, gross negligence, fraud, misrepresentation or
4 dishonesty in the performance of a function of their
5 duties.
6 And the facts leading to the alleged
7 violation are that on October 27th, 2006 the licensee
8 failed to adequately staff security for a post-boxing
9 match party that was held at the casino -- I'm sorry --
10 held on the casino property, not in the casino.
11 As a result, when the incident -- there was
12 an incident inside the party that required available
13 security to leave their posts and respond to the location,
14 and that caused the -- some of the activities -- some
15 important activities to be unattended to, including
16 evicting intoxicated persons, emergency table fill in the
17 casino, and then traffic in and out of the ballroom was
18 unattended to or unmonitored.
19 In this case the Staff -- or as a result of
20 those facts, the Staff recommends that the Commission
21 propose a two-day suspension of the Level 1 licensee Lanny
22 Daise.
23 CHAIRMAN SHULL: Are there any questions for
24 Mr. Hinckley?
25 Is there a motion?
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1 COMMISSIONER PLUNKETT: I'll make a motion
2 that we approve DC-07-147.
3 COMMISSIONER HAIS: I second the motion,
4 Mr. Chairman.
5 CHAIRMAN SHULL: Any further questions?
6 Call the roll.
7 MS. FRANKS: Chairman Shull.
8 CHAIRMAN SHULL: Approved.
9 MS. FRANKS: Commissioner Jones.
10 COMMISSIONER JONES: Approved.
11 MS. FRANKS: Commissioner Hais.
12 COMMISSIONER HAIS: Approved.
13 MS. FRANKS: Commissioner Plunkett.
14 COMMISSIONER PLUNKETT: Approved.
15 MS. FRANKS: Commissioner Bradley.
16 COMMISSIONER BRADLEY: Approved.
17 MS. FRANKS: By your vote you've adopted
18 DC-07-147.
19 MR. HINCKLEY: The next item would be
20 found under Tab D, and that is Disciplinary Complaint
21 No. 07-148. The licensee in question is Ameristar
22 Kansas City.
23 The violations or alleged violations in this
24 case are 11 CSR 45-4.260(4)(F), failure to comply with an
25 MGC order, and 11 CSR 45-10.010(1), where the licensee is
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1 required to provide documents to an MGC agent within seven
2 days of the request.
3 In particular, with regard to this
4 violation, the facts in support are that on October 3rd of
5 2006, MGC Trooper Hunter began an investigation of Floor
6 Supervisor Norris regarding the way she was filling out
7 player rating cards.
8 During the investigation the trooper
9 interviewed Table Game Supervisor Tallie and told her not
10 to speak to Norris with regard to the investigation to
11 maintain its sanctity.
12 He also spoke with Casino Shift Manager
13 Holzenthal and requested him to provide prior rating slips
14 filled out by the Floor Supervisor Norris.
15 During the investigation Trooper Hunter
16 discovered that Tallie did speak with Norris regarding the
17 investigation, you know, contrary to what his instructions
18 were to her, and that Holzenthal did not provide the
19 rating slips or cards within the seven days required
20 within the rule, but did so after six weeks.
21 And in this case as a result of those facts,
22 the Staff recommends that the Commission propose a $10,000
23 fine.
24 CHAIRMAN SHULL: So you have basically two
25 issues, or three. One, the slips were being filled out in
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1 an excessive amount?
2 MR. HINCKLEY: Correct.
3 CHAIRMAN SHULL: And, two, I guess
4 Mrs. Tallie then spoke with Norris when she was advised
5 not to during the investigation?
6 MR. HINCKLEY: She was ordered not to.
7 CHAIRMAN SHULL: Ordered not to. And then
8 the slips that you requested were not delivered for six
9 weeks.
10 MR. HINCKLEY: Approximately six weeks.
11 And I should note that it appears that at
12 the end of the investigation, it was determined that
13 Tallie was just not -- did not know how to fill out the
14 rating cards, because it didn't appear that there was any
15 intent to deceive on the part of -- I'm sorry -- of Floor
16 Supervisor Norris who was filling out the rating cards.
17 She just did not know how to do it.
18 COMMISSIONER HAIS: Are you saying that in
19 the context of the six-week delay?
20 MR. HINCKLEY: No. Just in the
21 investigation as a whole, Commissioner.
22 COMMISSIONER HAIS: Well, just to focus for
23 the moment on the six-week delay, was there any inquiry as
24 to what that amounted to, why?
25 MR. HINCKLEY: There was some back and forth
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1 between Mr. Holzenthal and the trooper and another
2 trooper. And Mr. Holzenthal did state that he had -- was
3 having difficulty getting somebody to do the work, to find
4 the rating slips.
5 COMMISSIONER HAIS: At what point was the
6 inquiry commenced about the delay?
7 MR. HINCKLEY: It was -- there was an in--
8 there was a request -- just wait one second.
9 COMMISSIONER HAIS: If you know.
10 MR. HINCKLEY: I believe the inquiry -- or
11 there was an initial request in October, mid October.
12 There was a response approximately two and a half weeks
13 later that he was unable to find the rating slips, or that
14 somebody he had asked to go find them was unable to find
15 them.
16 COMMISSIONER HAIS: This is two weeks?
17 MR. HINCKLEY: Correct. The initial
18 response was two weeks after the initial request. And
19 then there was a follow-up request, and that was
20 ultimately fulfilled at the end of the six weeks.
21 COMMISSIONER HAIS: Okay. And there was no
22 other inquiry made between the second week and the sixth
23 week?
24 MR. HINCKLEY: There may have been --
25 COMMISSIONER HAIS: But it would have been
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1 informal and not noted for the record. Is that your
2 supposition?
3 MR. HINCKLEY: Correct.
4 COMMISSIONER HAIS: All right. I don't have
5 anything else.
6 CHAIRMAN SHULL: Are there other questions?
7 Do I have a motion?
8 COMMISSIONER HAIS: Mr. Chairman, my
9 inclination is to move to approve 07-148. My only
10 reservation is, speaking plainly, that I think the Staff's
11 recommendation regarding the fine is somewhat lenient, and
12 I would move to amend that to make it a $15,000 fine
13 rather than 10 in view of the dilatory nature of the
14 response on the part of the Respondent.
15 COMMISSIONER JONES: I'll second the motion.
16 CHAIRMAN SHULL: Is there further
17 discussion?
18 We'll vote on the amendment then to amend it
19 to make the fine 15,000.
20 Call the roll.
21 MS. FRANKS: Chairman Shull.
22 CHAIRMAN SHULL: Approved.
23 MS. FRANKS: Commissioner Jones.
24 COMMISSIONER JONES: Approved.
25 MS. FRANKS: Commissioner Hais.
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1 COMMISSIONER HAIS: Approved.
2 MS. FRANKS: Commissioner Plunkett.
3 COMMISSIONER PLUNKETT: Approved.
4 MS. FRANKS: Commissioner Bradley.
5 COMMISSIONER BRADLEY: Approved.
6 MS. FRANKS: Now we need to --
7 CHAIRMAN SHULL: -- have a motion to
8 approve.
9 COMMISSIONER JONES: Move to approve the
10 amended motion, DC-07-148.
11 COMMISSIONER PLUNKETT: Second.
12 CHAIRMAN SHULL: Is there further
13 discussion?
14 Call the roll.
15 MS. FRANKS: Chairman Shull.
16 CHAIRMAN SHULL: Approved.
17 MS. FRANKS: Commissioner Jones.
18 COMMISSIONER JONES: Approved.
19 MS. FRANKS: Commissioner Hais.
20 COMMISSIONER HAIS: Approved.
21 MS. FRANKS: Commissioner Plunkett.
22 COMMISSIONER PLUNKETT: Approved.
23 MS. FRANKS: Commissioner Bradley.
24 COMMISSIONER BRADLEY: Approved.
25 MS. FRANK: By your vote you've adopted
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1 DC-07-148 as amended.
2 MR. HINCKLEY: The next matter can be found
3 under Tab E. It's Disciplinary Complaint No. 07-149. The
4 offender or licensee is Ameristar Casino St. Charles.
5 And the alleged violation is under 11 CSR
6 45-5.230(6), maintaining electronic gaming devices in a
7 suitable condition.
8 With regard to this event, it's alleged that
9 on October 23rd of 2006 there was discovered 18 Bally
10 electronic gaming devices on the casino floor with
11 unapproved printer software.
12 As a result of these fines -- or these
13 facts, the Staff recommends that the Commission propose a
14 $5,000 fine to the licensee.
15 CHAIRMAN SHULL: Are there any discussions
16 for Mr. Hinckley?
17 Is there a motion?
18 COMMISSIONER HAIS: Mr. Chairman, I move to
19 approve Disciplinary Action Resolution 07-149.
20 COMMISSIONER JONES: Second.
21 CHAIRMAN SHULL: Is there further
22 discussion?
23 Call the roll.
24 MS. FRANKS: Chairman Shull.
25 CHAIRMAN SHULL: Approved.
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1 MR. FRANKS: Commissioner Jones.
2 COMMISSIONER JONES: Approved.
3 MS. FRANKS: Commissioner Hais.
4 COMMISSIONER HAIS: Approved.
5 MS. FRANKS: Commissioner Plunkett.
6 COMMISSIONER PLUNKETT: Approved.
7 MS. FRANKS: Commissioner Bradley.
8 COMMISSIONER BRADLEY: Approved.
9 MS. FRANKS: By your vote you've adopted
10 DC-0149.
11 MR. HINCKLEY: The next matter can be found
12 under Tab F, Disciplinary Complaint No. 07-150. The
13 offender or licensee in question is Aztar Missouri
14 Riverboat Gaming Company.
15 The alleged violation comes under 11 CSR
16 45-5.230(6). And, again, this has to do with the
17 requirement to maintain electronic gaming devices that are
18 on the gaming floor and are being used in a suitable
19 condition.
20 With regard to these events, it's alleged
21 that on October 23rd of 2006 it was discovered eight Bally
22 electronic gaming devices with unapproved printer
23 software. And as a result of this, the Staff recommends
24 that the Commission propose a $5,000 fine.
25 CHAIRMAN SHULL: Are there any questions?
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1 COMMISSIONER JONES: Yes.
2 Is it a breakdown in the communications
3 between us issuing an order to rescind those EGDs and them
4 acting on it?
5 It just seems so strange. I mean, this is
6 very crucial to protect the integrity of the game. But it
7 just appears that there is some type of breakdown in the
8 communications.
9 MR. HINCKLEY: With regard to the last two
10 disciplines, because they're so similar -- and I think
11 that may be the reason why there is a question now -- is
12 their unapproved software.
13 So rather than being revoked software, where
14 a message is sent out to the casino, that it's somehow
15 overlooked, and the revoked software, which has already
16 discovered to be a problem, is then later found.
17 In this case it is unapproved software. So
18 there is no problem. It's been discovered about the
19 software. It's just not been approved by the Geolaire or
20 the lab.
21 So what happens sometimes, and in these
22 cases unapproved software, these particular, is that the
23 manufacturers of these electronic gaming devices will ship
24 these and install these gaming devices in the casinos with
25 the unapproved software in them, and then there is
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1 sometimes an assurance to the casino by those
2 manufacturers and installers that the software in these
3 things is already approved. Don't worry about it.
4 That does not relieve the casino the
5 responsibility for checking that out, but it's a little
6 bit more understandable for them to, you know --
7 different -- it's different than a revoked software
8 situation.
9 COMMISSIONER JONES: Okay.
10 MR. HINCKLEY: But it's still their
11 responsibility to make sure that whatever is being
12 represented to them is true and that the software in the
13 EGDs is approved.
14 COMMISSIONER JONES: All right. Thank you.
15 COMMISSIONER PLUNKETT: I make a motion that
16 we approve DC-07-159.
17 COMMISSIONER HAIS: Second.
18 CHAIRMAN SHULL: Is there further questions?
19 Call the roll.
20 MS. FRANKS: Chairman Shull.
21 CHAIRMAN SHULL: Approved.
22 MS. FRANKS: Commissioner Jones.
23 COMMISSIONER JONES: Approved.
24 MS. FRANKS: Commissioner Hais.
25 COMMISSIONER HAIS: Approved.
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1 MS. FRANKS: Commissioner Plunkett.
2 COMMISSIONER PLUNKETT: Approved.
3 MS. FRANKS: Commissioner Bradley.
4 COMMISSIONER BRADLEY: Approved.
5 MS. FRANKS: By your vote you've adopted
6 DC-07-150.
7 MR. HINCKLEY: The next tab can be found
8 under Tab G, Disciplinary Complaint No. 07-151. And the
9 offender or licensee in this case is Harrah's Maryland
10 Heights. And the alleged violation comes under 11 CSR
11 45-5.230(6).
12 Again, this has to do with electronic gaming
13 devices and the requirement to maintain them in a suitable
14 condition.
15 This violation has two counts. In Count I,
16 revoked software was discovered in seven electronic gaming
17 devices. The software had to do with slave controllers
18 within the EGD.
19 And this is a situation where it is
20 different than the unapproved. This is the revoked
21 software that was -- notice was given, and there was a
22 failure to replace it in time.
23 In Count II, revoked bill acceptable
24 software was discovered in two electronic gaming devices
25 on the gaming floor. Again, this is revoked software.
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1 And as a result of these facts, the Staff
2 recommends that the Commission propose a $30,000 fine.
3 CHAIRMAN SHULL: Are there any questions for
4 Mr. Hinckley?
5 COMMISSIONER HAIS: Mr. Chairman, I approve
6 the approval of DC-07-151.
7 COMMISSIONER JONES: Second.
8 CHAIRMAN SHULL: Any further questions?
9 Call the roll, please.
10 MS. FRANKS: Chairman Shull.
11 CHAIRMAN SHULL: Approved.
12 MS. FRANKS: Commissioner Jones.
13 COMMISSIONER JONES: Approved.
14 MS. FRANKS: Commissioner Hais.
15 COMMISSIONER HAIS: Approved.
16 MS. FRANKS: Commissioner Plunkett.
17 COMMISSIONER PLUNKETT: Approved.
18 MS. FRANKS: Commissioner Bradley.
19 COMMISSIONER BRADLEY: Approved.
20 MS. FRANKS: By your voted you've adopted
21 DC-07-151.
22 MR. HINCKLEY: The next matter is under
23 Tab H, Disciplinary Complaint No. 07-152, and the offender
24 or licensee is Harrah's North Kansas City.
25 The alleged violation falls under 11 CSR
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1 45-053(3)(A), which is failure to show discretion and
2 judgment, and 11 CSR 45-053(3)(B), where there is --
3 you're prohibited from allowing intoxicated persons from
4 gambling in the casino.
5 The facts in support of the violations are
6 that during the night of December 4th, 2006, in the early
7 morning hours of December 5th, 2006, a patron at a poker
8 table was served and consumed apparently eight mixed
9 drinks and three beers between the hours of 9:50 and 1:50
10 in the morning and was later discovered in the bathroom
11 unresponsive and with vomit on him.
12 As a result of this, the Staff recommends
13 that the Commission propose a $10,000 fine.
14 CHAIRMAN SHULL: Are there any questions for
15 Mr. Hinckley?
16 A motion to approve.
17 COMMISSIONER PLUNKETT: I make the motion to
18 approve DC-07-152.
19 COMMISSIONER JONES: Second.
20 CHAIRMAN SHULL: Is there further
21 discussion?
22 Call the roll.
23 MS. FRANKS: Chairman Shull.
24 CHAIRMAN SHULL: Approved.
25 MS. FRANKS: Commissioner Jones.
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1 COMMISSIONER JONES: Approved.
2 MS. FRANKS: Commissioner Hais.
3 COMMISSIONER HAIS: Approved.
4 MS. FRANKS: Commissioner Plunkett.
5 COMMISSIONER PLUNKETT: Approved.
6 MS. FRANKS: Commissioner Bradley.
7 COMMISSIONER BRADLEY: Approved.
8 MS. FRANKS: By your vote you've adopted
9 DC-07-152.
10 MR. HINCKLEY: The next matter can be found
11 under Tab I in the Disciplinary Complaint No. 07-153, and
12 the offender or licensee is Harrah's North Kansas City.
13 The alleged violations come under 11 CSR
14 45-5.184(16)(B), the requirement for the casino to cancel
15 its decks of cards after they leave play.
16 The facts in support that are on
17 December 16th of 2006, I believe licensed dealers were
18 discovered playing with what was revealed to be an
19 uncancelled deck of playing cards that had come from the
20 casino floor.
21 It was later discovered that those
22 uncanceled cards had come from -- or were purchased by one
23 of those persons playing cards at the casino gift shop.
24 Upon getting this information, the trooper
25 found -- responded to the gift shop and found six more
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1 uncancelled decks of cards that were formerly -- or used
2 by the casino for sale at the casino gift shop.
3 And then after that several more uncancelled
4 decks of playing cards were discovered in the buffet
5 section of the casino.
6 It could not be determined based upon the
7 documents or logs of the casino which security officer
8 amongst the four or five that were on duty at this time
9 were responsible for canceling these decks.
10 But as a result of the facts previously
11 stated, the Staff recommends that the Commission propose a
12 $20,000 fine.
13 CHAIRMAN SHULL: Any questions for
14 Mr. Hinckley?
15 Is there a motion to approve?
16 COMMISSIONER HAIS: I move the approval of
17 DC-07-153, Mr. Chairman.
18 COMMISSIONER BRADLEY: Second.
19 CHAIRMAN SHULL: Any further questions?
20 Call the roll, please.
21 MS. FRANKS: Chairman Shull.
22 CHAIRMAN SHULL: Approved.
23 MS. FRANKS: Commissioner Jones.
24 COMMISSIONER JONES: Approved.
25 MS. FRANKS: Commissioner Hais.
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1 COMMISSIONER HAIS: Approved.
2 MS. FRANKS: Commissioner Plunkett.
3 COMMISSIONER PLUNKETT: Approved.
4 MS. FRANKS: Commissioner Bradley.
5 COMMISSIONER BRADLEY: Approved.
6 MS. FRANKS: By your vote you've adopted
7 DC-07-153.
8 MR. HINCKLEY: The next matter can be found
9 under Tab J, and that is the Complaint Number 07-154, and
10 the offender or licensee is HGI-St. Joe.
11 The alleged violation comes under 11 CSR
12 45-12.090, I believe that's paragraph 4, where it requires
13 that the holder of an excursion liquor license shall
14 maintain an orderly place at all times.
15 This has to do with the first discipline
16 mentioned for Lanny Daise. And just to recite the facts
17 particular to this discipline, is that on October 27th,
18 2006, the post-fight boxing party was held, and there was
19 inadequate security scheduled. And as a result of this,
20 and when a fight broke out and security responded, gaming
21 activities were neglected.
22 There is the possibility of -- possibility
23 of underage patrons going in and out of the party without
24 being tagged as underaged, and there was an emergency
25 table fill neglected and intoxicated persons who were
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1 waiting eviction were left alone.
2 And as a result of these facts, the Staff
3 recommends that the Commission propose a $5,000 fine.
4 CHAIRMAN SHULL: Are there any questions?
5 Is there a motion?
6 COMMISSIONER JONES: I move to approve
7 DC-07-154.
8 COMMISSIONER HAIS: Second.
9 CHAIRMAN SHULL: Is there any discussion?
10 Call the roll.
11 MS. FRANKS: Chairman Shull.
12 CHAIRMAN SHULL: Approved.
13 MS. FRANKS: Commissioner Jones.
14 COMMISSIONER JONES: Approved.
15 MS. FRANKS: Commissioner Hais.
16 COMMISSIONER HAIS: Approved.
17 MS. FRANKS: Commissioner Plunkett.
18 COMMISSIONER PLUNKETT: Approved.
19 MS. FRANKS: Commissioner Bradley.
20 COMMISSIONER BRADLEY: Approved.
21 MS. FRANKS: By your vote you've adopted
22 DC-07-154.
23 MR. HINCKLEY: The next matter is under
24 Tab K. It's Disciplinary Complaint No. 07-155. The
25 offender or licensee is Isle of Capri-Boonville.
27
1 The alleged violation comes under 11 CSR
2 45-5.230(6), the requirement for the licensee to maintain
3 its electronic gaming devices in a suitable condition.
4 There is two counts. The first count states
5 that during December audit by MGC, it was discovered that
6 an EGD contained two revoked software chips. Count II,
7 during that same December audit, an EGD was discovered to
8 have unapproved printer software.
9 As a result of these facts, the Staff
10 recommends that the Commission propose a $10,000 fine.
11 CHAIRMAN SHULL: Are there questions for
12 Mr. Hinckley?
13 Is there a motion?
14 COMMISSIONER PLUNKETT: I'll make a motion
15 to approve DC-07-155.
16 COMMISSIONER JONES: Second.
17 CHAIRMAN SHULL: Is there further
18 discussion?
19 Call the roll.
20 MS. FRANKS: Chairman Shull.
21 CHAIRMAN SHULL: Approved.
22 MS. FRANKS: Commissioner Jones.
23 COMMISSIONER JONES: Approved.
24 MS. FRANKS: Commissioner Hais.
25 COMMISSIONER HAIS: Approved.
28
1 MS. FRANKS: Commissioner Plunkett.
2 COMMISSIONER PLUNKETT: Approved.
3 MS. FRANKS: Commissioner Bradley.
4 COMMISSIONER BRADLEY: Approved.
5 MS. FRANKS: By your vote you've adopted
6 DC-07-155.
7 MR. HINCKLEY: The next matter can be found
8 under Tab L, and that is Disciplinary Complaint
9 No. 07-156. The offender or licensee is Isle of Capri-
10 Boonville.
11 And the violations are the MICS, or Minimum
12 Internal Control Standards, Chapter E, Section 10.03(05),
13 a requirement for electronic gaming devices -- device
14 locks to be stored in the EGD, or electronic gaming
15 device, maintenance room in a locked container.
16 The facts in support of violations are that
17 on November 8 of 2006 Trooper Tauber of the Missouri
18 Gaming Commission discovered that electronic gaming device
19 locks were being stored in the security supervisor's
20 office, not the EGD maintenance room.
21 All of the locks appeared to be secured but
22 not in accordance with the minimum internal controls. And
23 it was alleged that in response to questioning by the
24 trooper, that although there is no proof that these locks
25 were unsecured, that this practice of securing them in the
29
1 security office and not the EGD maintenance room have been
2 going on for at least four years, or possibly the entire
3 time that the casino was operating.
4 As a result of these facts, the Staff
5 recommends that the Commission propose a $20,000 fine.
6 CHAIRMAN SHULL: Are there any questions for
7 Mr. Hinckley?
8 Is there a motion?
9 COMMISSIONER HAIS: I move the approval of
10 DC-07-156, Mr. Chairman.
11 COMMISSIONER BRADLEY: Second.
12 CHAIRMAN SHULL: Is there further
13 discussion?
14 Call the roll.
15 MS. FRANKS: Chairman Shull.
16 CHAIRMAN SHULL: Approved.
17 MS. FRANKS: Commissioner Jones.
18 COMMISSIONER JONES: Approved.
19 MS. FRANKS: Commissioner Hais.
20 COMMISSIONER HAIS: Approved.
21 MS. FRANKS: Commissioner Plunkett.
22 COMMISSIONER PLUNKETT: Approved.
23 MS. FRANKS: Commissioner Bradley.
24 COMMISSIONER BRADLEY: Approved.
25 MS. FRANKS: By your vote you've adopted
30
1 DC-07-156.
2 MR. HINCKLEY: The next matter can be found
3 under Tab M, Disciplinary Complaint No. 07-157. The
4 offender or licensee is Isle of Capri-Kansas City.
5 The alleged violations here fall under
6 11 CSR 45-10.030(4), requiring the casino to safeguard all
7 assets, as well as the previously mentioned Missouri
8 internal control standard that requires electronic gaming
9 device locks to be stored and locked in the EGD
10 maintenance room.
11 In this matter, on November 8th of 2006, the
12 security department had notified a Trooper -- or
13 Sergeant Wilson of the MGC, an affiliated trooper, that
14 EGD locks were missing from the locked compartments in the
15 EGD maintenance room.
16 His investigation discovered that
17 approximately -- or I'm sorry -- exactly 191 EGD locks,
18 plus a number of nonsensitive locks, or EGD locks that
19 were not sensitive, sensitive locks being ones that were
20 possibly being used at the time on the gaming floor, were
21 unsecured, stored on the floor and not secured in the
22 locked closet, and the major discrepancies between the
23 logbook and what was actually contained in the locked
24 drawers.
25 As a result of these facts, the Staff
31
1 recommends that the Commission propose a $20,000 fine.
2 CHAIRMAN SHULL: Are there questions for
3 Mr. Hinckley?
4 Is there a motion?
5 COMMISSIONER JONES: I move for approval of
6 DC-07-157.
7 COMMISSIONER PLUNKETT: Second.
8 CHAIRMAN SHULL: Is there further
9 discussion?
10 Call the roll.
11 MS. FRANKS: Chairman Shull.
12 CHAIRMAN SHULL: Approved.
13 MS. FRANKS: Commissioner Jones.
14 COMMISSIONER JONES: Approved.
15 MS. FRANKS: Commissioner Hais.
16 COMMISSIONER HAIS: Approved.
17 MS. FRANKS: Commissioner Plunkett.
18 COMMISSIONER PLUNKETT: Approved.
19 MS. FRANKS: Commissioner Bradley.
20 COMMISSIONER BRADLEY: Approved.
21 MS. FRANKS: By your vote you've adopted
22 DC-07-157.
23 MR. HINCKLEY: The next matter is under
24 Tab N, Disciplinary Complaint No. 07-158. The offender or
25 licensee is Isle of Capri-Kansas City.
32
1 The alleged violations fall under 11 CSR
2 45-5.230(6), and the requirement -- which is the
3 requirement to maintain electronic gaming devices in a
4 suitable condition.
5 This complaint has four counts. Count I
6 alleged that six revoked EGD chips were discovered in the
7 electronic gaming devices on the floor. In Count II it
8 alleges that seven EGD chips -- I'm sorry -- both these
9 chips were revoked. The chips from Count I were revoked.
10 The chips discovered in the seven electronic gaming
11 devices in Count II were revoked chips.
12 In Count III, which is actually broken down
13 into four subparagraphs, the Subparagraph 1 states that a
14 revoked bill validator software was discovered in one EGD
15 on the gaming floor.
16 Subparagraph 2 alleged that, again, revoked
17 bill validator software was discovered in this case in
18 235 EGDs on the gaming floor.
19 And in Subparagraph 3 it alleges that
20 revoked bill validator software was discovered in eight
21 electronic gaming devices on the floor.
22 And in Subparagraph 4 it alleges that a
23 revoked main program software was discovered in one
24 electronic gaming device on the gaming floor.
25 And in Count IV, that a revoked main program
33
1 software was discovered in one electronic gaming device on
2 the gaming floor.
3 As a result of all of those facts, the Staff
4 recommends that the Commission propose a $50,000 fine.
5 CHAIRMAN SHULL: Are there any questions for
6 Mr. Hinckley?
7 COMMISSIONER HAIS: Mr. Chairman, I move the
8 approval of DC-07-158.
9 COMMISSIONER JONES: Second.
10 CHAIRMAN SHULL: Is there further
11 discussion?
12 Call the roll.
13 MS. FRANKS: Chairman Shull.
14 CHAIRMAN SHULL: Approved.
15 MS. FRANKS: Commissioner Jones.
16 COMMISSIONER JONES: Approved.
17 MS. FRANKS: Commissioner Hais.
18 COMMISSIONER HAIS: Approved.
19 MS. FRANKS: Commissioner Plunkett.
20 COMMISSIONER PLUNKETT: Approved.
21 MS. FRANKS: Commissioner Bradley.
22 COMMISSIONER BRADLEY: Approved.
23 MS. FRANKS: By your vote you've adopted
24 DC-07-158.
25 MR. HINCKLEY: Thank you.
34
1 MR. MCNARY: Mr. Chairman, the next item is
2 Item V, consideration of settlement agreements, and
3 General Counsel Hinckley will handle those.
4 MR. HINCKLEY: The first item can be found
5 under Tab O. Excuse me.
6 And this is a settlement agreement having to
7 do with Disciplinary Complaint No. 05-255 with the Gaming
8 Commission in Harrah's Maryland Heights.
9 After negotiations with Harrah's Maryland
10 Heights, they agreed to withdraw their timely filed appeal
11 and pay the amount of $21,250 to settle the disciplinary
12 complaint issued.
13 CHAIRMAN SHULL: Are there questions for
14 Mr. Hinckley?
15 Is there a motion?
16 COMMISSIONER PLUNKETT: I make a motion that
17 we approve Resolution No. 07-019.
18 COMMISSIONER HAIS: I second it.
19 CHAIRMAN SHULL: Is there further
20 discussion?
21 Cole the roll, please.
22 MS. FRANKS: Chairman Shull.
23 CHAIRMAN SHULL: Approved.
24 MS. FRANKS: Commissioner Jones.
25 COMMISSIONER JONES: Approved.
35
1 MS. FRANKS: Commissioner Hais.
2 COMMISSIONER HAIS: Approved.
3 MS. FRANKS: Commissioner Plunkett.
4 COMMISSIONER PLUNKETT: Approved.
5 MS. FRANKS: Commissioner Bradley.
6 COMMISSIONER BRADLEY: Approved.
7 MS. FRANKS: By your vote you've adopted
8 Resolution No. 07-019.
9 MR. HINCKLEY: The next matter can be found
10 under Tab P, and that is a settlement agreement, once
11 again with Harrah's, this time Harrah's of North
12 Kansas City, Disciplinary Complaint No. 05-227.
13 And in this case Harrah's once again agreed
14 to withdraw its timely filed appeal and pay the amount of
15 $42,500 to settle them out.
16 CHAIRMAN SHULL: Are there any questions for
17 Mr. Hinckley?
18 Is there a motion?
19 COMMISSIONER HAIS: Mr. Chairman, I would
20 move the approval of Commission Resolution 07-020.
21 COMMISSIONER JONES: Second.
22 CHAIRMAN SHULL: Is there further
23 discussion?
24 Call the roll.
25 MS. FRANKS: Chairman Shull.
36
1 CHAIRMAN SHULL: Approved.
2 MS. FRANKS: Commissioner Jones.
3 COMMISSIONER JONES: Approved.
4 MS. FRANKS: Commissioner Hais.
5 COMMISSIONER HAIS: Approved.
6 MS. FRANKS: Commissioner Plunkett.
7 COMMISSIONER PLUNKETT: Approved.
8 MS. FRANKS: Commissioner Bradley.
9 COMMISSIONER BRADLEY: Approved.
10 MS. FRANKS: By your vote you've adopted
11 Resolution No. 07-020.
12 MR. MCNARY: Mr. Chairman, the next item on
13 the agenda is consideration of licensure of certain
14 Level 1 key person applicants. That will be handled by
15 Lieutenant Gary Moore.
16 LIEUTENANT MOORE: Mr. Chairman,
17 Commissioners, the Highway Patrol and Gaming Commission
18 investigators conducted background investigations on the
19 following Level 1 applicants. The investigations
20 included, but were not limited to, criminal, financial and
21 general character inquiries.
22 The applicants are Gregory S. Saunders,
23 Director of Casino Operations, Isle of Capri Casinos,
24 Inc., Biloxi, Mississippi; Robert D. Haines, Vice-
25 President - Internal Audit (Eastern Division), Harrah's
37
1 Entertainment, Atlantic City, New Jersey; Jason E. Crook,
2 Controller, HGI-Mark Twain Casino, LaGrange, Missouri; and
3 Mary G. Siero, Vice-President of Information Technology,
4 Ameristar Casino, Inc., Las Vegas, Nevada.
5 The results of the investigations were
6 provided to the Gaming Commission Staff for their review
7 and recommendation.
8 Thank you.
9 MR. MCNARY: Mr. Chairman, Staff recommends
10 the approval of these applicants.
11 CHAIRMAN SHULL: Is there a motion to
12 approve?
13 COMMISSIONER JONES: I move to approve
14 Resolution No. 07-021.
15 COMMISSIONER PLUNKETT: Second.
16 CHAIRMAN SHULL: Call the roll, please.
17 MS. FRANKS: Chairman Shull.
18 CHAIRMAN SHULL: Approved.
19 MS. FRANKS: Commissioner Jones.
20 COMMISSIONER JONES: Approved.