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BEFORE THE
5 STATE OF
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9 Meeting
August 29, 2007
10 10:00 a.m.
Central Office
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1 AGENDA
2 PAGE
3 I. Call to Order 5:2
4 II. Minutes
A. July 25, 2007 5:15
5
III. Consideration of Hearing Officer
6 Recommendations
B. Ollina Boaz (Reconsideration) 6:21
7 1. Resolution No. 07-054
8 IV. Consideration of Disciplinary Action
C. Ameristar Casino Kansas City, Inc. 9:4
9 1. DC-07-303
D. Ameristar Casino Kansas City, Inc. 12:12
10 1. DC-07-304
E. Ameristar Casino Kansas City, Inc. 14:21
11 1. DC-07-305
F. Ameristar Casino St. Charles, Inc. 16:4
12 1. DC-07-306
G. Ameristar Casino St. Charles, Inc. 18:8
13 1. DC-07-307
H. Harrah's
14 1. DC-07-308
I. Harrah's
15 1. DC-07-309
J. Harrah's
16 1. DC-07-310
K. Harrah's
17 1. DC-07-311
L. Harrah's
18 1. DC-07-312
M. IOC-Boonville, Inc. 35:23
19 1. DC-07-313
N. IOC-Boonville, Inc. 38:3
20 1. DC-07-314
21 V. Consideration of Settlement Agreements
O. Ameristar Casino St. Charles, Inc. 40:12
22 1. Resolution No. 07-060
P. Ameristar Casino St. Charles, Inc. 41:22
23 1. Resolution No. 07-061
Q. Harrah's
24 1. Resolution No. 07-062
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1 AGENDA (CONT'D)
2 PAGE
3 VI. Consideration of Licensure of Level I/
Key Applicants 45:2
4 R. Resolution No. 07-063
5 VII.
Presentation by Harrah's
Heights, LLC
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VIII. Closed Session 56:14
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BEFORE THE
3 STATE OF
4
5
6
7 Meeting
August 29, 2007
8 10:00 a.m.
Central Office
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COMMISSION MEMBERS PRESENT:
15
16 Darryl T. Jones
Larry W. Plunkett, Sr.
17 Suzanne Bradley
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Reported by:
22 Patricia A. Stewart, RMR, RPR, CCR 401
24 (573) 636-7551
25
5
1 P R O C E E D I N G S
2 CHAIRMAN NOEL SHULL: Good morning. Welcome to
3 the Gaming Commission meeting today.
4 Would you call the roll, please.
5 MS. ANGIE FRANKS: Chairman Shull.
6 CHAIRMAN SHULL: Present.
7 MS. FRANKS: Commissioner Jones.
8 COMMISSIONER DARRYL JONES: Present.
9 MS. FRANKS: Commissioner Hais.
10 (No response.)
11 MS. FRANKS: Commissioner Plunkett.
12 COMMISSIONER LARRY PLUNKETT: Present.
13 MS. FRANKS: Commissioner Bradley.
14 COMMISSIONER SUZANNE BRADLEY: Present.
15 CHAIRMAN SHULL: The first order of business
16 will be to consider the minutes of the last meeting.
17 Are there any changes, additions or
18 deletions?
19 I have one that is on page 30, line 14. I
20 believe that's livelihood as opposed to likelihood.
21 Is there a motion?
22 COMMISSIONER BRADLEY: I move to approve.
23 COMMISSIONER JONES: Second.
24 CHAIRMAN SHULL: Further discussion?
25 Call the roll, please.
6
1 MS. FRANKS: Chairman Shull.
2 CHAIRMAN SHULL: Approved.
3 MS. FRANKS: Commissioner Jones.
4 COMMISSIONER JONES: 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 the
10 minutes of the July 25th, 2007 meeting as amended.
11 CHAIRMAN SHULL: Mr. McNary, would you like
12 to continue with the consideration of hearing officer
13 recommendations.
14 MR. GENE MCNARY: Mr. Chairman and members of the
15 Commission, good morning.
16 CHAIRMAN/COMMISSIONERS: Good morning.
17 MR. MCNARY: General Counsel Chris Hinckley
18 will review the Ollina Boaz matter. That's up for
19 reconsideration. There was an additional letter added
20 after you deliberated, and he'll review that.
21 MR. CHRIS HINCKLEY: Good morning, Mr. Chairman,
22 Commissioners.
23 CHAIRMAN/COMMISSIONERS: Good morning.
24 MR. HINCKLEY: I direct your attention to
25 Tab B. Under Tab B it's Resolution 07-054, which was
7
1 originally heard at the July -- I believe the July
2 Commission meeting.
3 Evidently during that meeting and prior to
4 the Commissioners voting, a letter from the licensee,
5 Ollina Boaz, was faxed to the Commission, and it
6 mistakenly was not placed with the contents of her appeal.
7 As a result, we tabled the matter and placed
8 this letter in the packet and would like -- I think it's
9 appropriate for the Commissioners to review the letter,
10 and if their original vote would be different as a result
11 of the letter, we can address that, if that is the case.
12 I'll just remind the Commissioners and
13 Chairman that the vote of each Commissioner and the
14 Chairman was to uphold the hearing officer's finding,
15 which was for license denial.
16 CHAIRMAN SHULL: Has everyone had an
17 opportunity to review this letter? Are there any --
18 COMMISSIONER BRADLEY: Is it the letter on
19 the front?
20 MR. HINCKLEY: Yes.
21 CHAIRMAN SHULL: Yes.
22 COMMISSIONER BRADLEY: So, therefore, there
23 would not be any other -- she would not be bringing any
24 other information to us?
25 MR. HINCKLEY: Correct, other than the
8
1 information that the Commissioners already considered
2 coming -- which led to their vote at the last meeting.
3 This would be the only extra information that was not
4 considered prior to that vote, that we just wanted to make
5 sure was considered to affirm the vote or to re-vote.
6 COMMISSIONER BRADLEY: Okay.
7 CHAIRMAN SHULL: Is Ms. Boaz in the audience
8 and would she care to speak?
9 (No response.)
10 COMMISSIONER BRADLEY: Do we need to make a
11 motion to reapprove, a motion to confirm or --
12 CHAIRMAN SHULL: Confirm to --
13 COMMISSIONER BRADLEY: I make a motion to
14 confirm Resolution No. 07-054.
15 COMMISSIONER PLUNKETT: I'll second.
16 CHAIRMAN SHULL: Is there any further
17 discussion?
18 Call the roll, please.
19 MS. FRANKS: Chairman Shull.
20 CHAIRMAN SHULL: Approved.
21 MS. FRANKS: Commissioner Jones.
22 COMMISSIONER JONES: Approved.
23 MS. FRANKS: Commissioner Plunkett.
24 COMMISSIONER PLUNKETT: Approved.
25 MS. FRANKS: Commissioner Bradley.
9
1 COMMISSIONER BRADLEY: Approved.
2 MS. FRANKS: By your vote you've adopted
3 Resolution No. 07-054.
4 MR. HINCKLEY: I now direct your attention
5 to Tab C. Tab C concerns Disciplinary Complaint 07-303.
6 It's concerning licensee Ameristar Casino
7 the violations alleged fall under the Minimum Internal
8 Control Standards requiring that the licensee exercise
9 strict control over sensitive keys, and in particular, an
10 internal control requiring casino security officers, being
11 the casino security officers being the only
12 authorized personnel to access a particular key, in this
13 case, Key 64.
14 The facts supporting the allegation are as
15 follows: On March 18th of 2007 a security supervisor from
16 the licensee contacted a Gaming Commission trooper and
17 informed him that a slot manager had violated the internal
18 controls regarding the sensitive key.
19 The investigation revealed that the
20 assistant slot manager, accompanied by a security officer,
21 was accessing the -- was accessing the sensitive key and
22 that that was inappropriate or against the internal
23 controls -- a violation of the internal controls, in that
24 the security officer should have been the one and the only
25 one who was able to access that sensitive key.
10
1 As a result of these -- or this incident
2 Staff recommends that the Commission approve a $5,000
3 fine.
4 CHAIRMAN SHULL: Are there any questions for
5 Mr. Hinckley?
6 COMMISSIONER JONES: Mr. Hinckley, has
7 Ameristar corrected their -- or reinforced or done any
8 retraining on their procedures to address this?
9 MR. HINCKLEY: What normally happens is
10 there is an immediate compliance directive and -- given to
11 the violate-- the violators and the leadership of the
12 licensee.
13 And in this case the internal controls were
14 in place. They just seemed to have been forgotten about
15 by these two individuals, or at least one of the
16 individuals.
17 So it's a matter of just in this case
18 reminding them that these -- these are the rules and you
19 need to start abiding by them.
20 COMMISSIONER JONES: All right.
21 MR. HINCKLEY: I do not know whether or
22 not -- I would only assume that at the point in which the
23 compliance directive is given that it is being complied
24 with.
25 COMMISSIONER JONES: Okay.
11
1 MR. HINCKLEY: If not, there would be
2 another discipline that would result soon after that.
3 COMMISSIONER JONES: Right, correct. Thank
4 you.
5 COMMISSIONER BRADLEY: And did your evidence
6 show that this was a one-time occurrence or was this a
7 pattern?
8 MR. HINCKLEY: Commissioner, the evidence
9 showed that while -- this was a one-time occurrence, but
10 in investigating this one-time occurrence, where the key
11 was brought -- or accessed inappropriately and returned
12 inappropriately, that the slot supervisor -- I'm sorry --
13 slot manager stated that he had been doing this for a
14 while.
15 COMMISSIONER BRADLEY: For a while.
16 MR. HINCKLEY: And being that that person
17 was in a position of a supervisor and not knowing that
18 this internal control existed, it appeared that perhaps it
19 was being done more than just this one time.
20 COMMISSIONER BRADLEY: Thank you.
21 COMMISSIONER PLUNKETT: I make a motion we
22 approve DC-07-303.
23 COMMISSIONER JONES: Second.
24 CHAIRMAN SHULL: Is there further
25 discussion?
12
1 Call the roll, please.
2 MS. FRANKS: Chairman Shull.
3 CHAIRMAN SHULL: Approved.
4 MS. FRANKS: Commissioner Jones.
5 COMMISSIONER JONES: 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 Disciplinary Complaint DC-07-303.
12 MR. HINCKLEY: Now I direct your attention
13 to Tab D. Tab D concerns Disciplinary Cause DC-07-304.
14 It has to do with the licensee Ameristar Casino Kansas City.
15 The violations alleged fall under the
16 Minimum Internal Control Standards, directing that payouts
17 on EGDs should be accurate and not misleading.
18 The facts supporting the allegations are as
19 follows: a patron playing an EGD won an award at the
20 casino, and the payout that was displayed conflicted with
21 the actual payout on the EGD -- well, the payout that was
22 on the display glass conflicted with what was actually
23 paid out.
24 The pay glass showed that 200,000 credits
25 were the appropriate award, but the EGD paid out only
13
1 50,000 credits, basically a difference of $2,511.40.
2 The investigation discovered that one other
3 EGD had this same problem, but this incident was the only
4 incident that occurred with regard to the difference in
5 the payout.
6 The glass was installed by casino staff.
7 However, tests that -- records showed that perhaps tests
8 that would have caught this problem were not performed.
9 MR. MCNARY: Is there a Staff
10 recommendation?
11 MR. HINCKLEY: I apologize.
12 The Staff recommends that the Commission
13 propose a $5,000 fine.
14 CHAIRMAN SHULL: Mr. Hinckley, was the
15 $2,000 paid to the patron?
16 MR. HINCKLEY: I believe it was.
17 COMMISSIONER BRADLEY: Has the problem been
18 rectified? Are they now performing the appropriate tests?
19 MR. HINCKLEY: Well, I would hope so.
20 COMMISSIONER BRADLEY: You hope so.
21 MR. HINCKLEY: The two -- the two machines
22 were taken out of play immediately and paid -- taken out
23 of play and put in the appropriate pay glass before they
24 were put back into play.
25 But that would be the reason for, you know,
14
1 not being able to -- or casino staff not performing the
2 appropriate tests on two different EGDs would be the
3 reason for the violation -- I'm sorry -- reason to fine
4 the casino.
5 COMMISSIONER BRADLEY: I make a motion to
6 approve Resolution 07-304.
7 COMMISSIONER JONES: Second.
8 CHAIRMAN SHULL: Is there further
9 discussion?
10 Call the roll, please.
11 MS. FRANKS: Chairman Shull.
12 CHAIRMAN SHULL: Approved.
13 MS. FRANKS: Commissioner Jones.
14 COMMISSIONER JONES: Approved.
15 MS. FRANKS: Commissioner Plunkett.
16 COMMISSIONER PLUNKETT: Approved.
17 MS. FRANKS: Commissioner Bradley.
18 COMMISSIONER BRADLEY: Approved.
19 MS. FRANKS: By your vote you've adopted
20 Disciplinary Complaint DC-07-304.
21 MR. HINCKLEY: Now I direct your attention
22 to Tab E, Disciplinary Complaint 07-305. It concerns the
23 licensee Ameristar Casino Kansas City.
24 The violations alleged fall under Minimum
25 Internal Control Standards, where an EGD manager or other
15
1 position approved by MGC shall verify and sign all EGD
2 override jackpots.
3 The facts supporting these allegations are
4 as follows: During a compliance audit in May of 2007, MGC
5 auditors found that 17 of 19 override jackpot slips
6 reviewed were not signed by an assistant slot manager but
7 signed by a slot supervisor.
8 Staff -- as a result of this, the Staff
9 recommends that the Commission propose a $25,000 fine.
10 CHAIRMAN SHULL: Are there any questions for
11 Mr. Hinckley?
12 COMMISSIONER BRADLEY: No.
13 COMMISSIONER JONES: Move for the approval
14 of DC-07-305.
15 COMMISSIONER BRADLEY: Second.
16 CHAIRMAN SHULL: Is there further
17 discussion?
18 Call the roll, please.
19 MS. FRANKS: Chairman Shull.
20 CHAIRMAN SHULL: Approved.
21 MS. FRANKS: Commissioner Jones.
22 COMMISSIONER JONES: Approved.
23 MS. FRANKS: Commissioner Plunkett.
24 COMMISSIONER PLUNKETT: Approved.
25 MS. FRANKS: Commissioner Bradley.
16
1 COMMISSIONER BRADLEY: Approved.
2 MS. FRANKS: By your vote you've adopted
3 DC-07-305.
4 MR. HINCKLEY: Now I direct your attention
5 to Tab F. It's Disciplinary Complaint 07-306. It
6 concerns licensee Ameristar Casino St. Charles.
7 The violations alleged fall under
8 11 CSR 45-5.184, requiring the cancellation of cards shall
9 be done by drilling a hole in the center of the cards or
10 cutting off the edge of the card.
11 The facts supporting the allegations are as
12 follows: In May of 2007 Ameristar Casino St. Charles Staff
13 Auditor Bryne found two uncancelled decks of cards for
14 sale in the casino gift shop, meaning that the holes or
15 the sides -- the hole was not present or the sides were
16 not cut off.
17 Further inspection of this -- the gift shop
18 revealed a box that contained four more decks of
19 uncancelled cards, and then upon inspection of what
20 apparently was about 5,252 cards, a total of 117 cards
21 were discovered to be uncancelled.
22 As the result of this incident, the Staff
23 recommends that the Commission propose a $10,000 fine.
24 CHAIRMAN SHULL: Are there any questions for
25 Mr. Hinckley?
17
1 COMMISSIONER JONES: Mr. Hinckley, is this
2 their first violation of the uncancelled cards? Because I
3 know we've had several of the --
4 MR. HINCKLEY: Right. There have been
5 recently a couple of cases I recall where these facts are
6 very similar. I don't recall right now if it was
7 Ameristar Casino St. Charles where that had occurred, but
8 I can check on that.
9 COMMISSIONER BRADLEY: I think in the future
10 that would be good to know. We have seen several of these
11 coming through.
12 MR. HINCKLEY: Whether or not it happened at
13 that particular licensee?
14 COMMISSIONER BRADLEY: Any time this fact
15 situation comes forth, knowing if there had been priors.
16 MR. HINCKLEY: Very well.
17 COMMISSIONER PLUNKETT: I make a motion we
18 approve DC-07-306.
19 COMMISSIONER JONES: Second.
20 CHAIRMAN SHULL: Is there further
21 discussion?
22 Call the roll, please.
23 MS. FRANKS: Chairman Shull.
24 CHAIRMAN SHULL: Approved.
25 MS. FRANKS: Commissioner Jones.
18
1 COMMISSIONER JONES: 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-07-306.
8 MR. HINCKLEY: I now direct your attention
9 to Tab G. It has to do -- it concerns Disciplinary
10 Complaint 07-307, licensee Ameristar Casino St. Charles.
11 The violations alleged fall under Minimum
12 Internal Control Standards requiring the EGD main doors,
13 reserve hopper and drop compartments be alarmed and shall
14 be locked.
15 The facts supporting the allegations are as
16 follows:
That on June the 10th of 2007 an
17 Patrolman was advised by casino security advisor -- or
18 supervisor that he had discovered four EGDs that were not
19 properly equipped with locks to secure the contents of the
20 bill validator boxes.
21 The boxes had locks that came with the EGD
22 or -- and were placed there by the manufacturer, and as a
23 result, were not secure locks placed on there by the
24 casino. The four bill validator boxes contained a total
25 of $3,222.
19
1 As a result of this incident, the Staff
2 recommends that the Commission propose a $5,000 fine.
3 CHAIRMAN SHULL: Are there questions for
4 Mr. Hinckley?
5 COMMISSIONER JONES: Move for the acceptance
6 of DC-07-307.
7 COMMISSIONER BRADLEY: Second.
8 CHAIRMAN SHULL: Is there further
9 discussion?
10 Call the roll, please.
11 MS. FRANKS: Chairman Shull.
12 CHAIRMAN SHULL: Approved.
13 MS. FRANKS: Commissioner Jones.
14 COMMISSIONER JONES: Approved.
15 MS. FRANKS: Commissioner Plunkett.
16 COMMISSIONER PLUNKETT: Approved.
17 MS. FRANKS: Commissioner Bradley.