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          4  

              BEFORE THE MISSOURI GAMING COMMISSION

          5   STATE OF MISSOURI

 

          6  

 

          7  

 

          8  

 

          9         Meeting

                March 26, 2008

         10      10:00 a.m.

                Central Office

         11    3417 Knipp Drive

              Jefferson City, Missouri

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          1                             AGENDA

 

          2                                                     PAGE

 

          3   I.   Call to Order                                5:2

 

          4   II.  Minutes

                   A. February 11, 2008                         5:14

          5        B. February 20, 2008                         6:8

 

          6   III.  Consideration of Disciplinary Actions

                   C.  Glenn Moise                              7:14

          7            1.  DC-08-117

                   D.  David Murray                             8:25

          8            1.  DC-08-118

                   E.  Ameristar Casino Kansas City, Inc       10:15

          9            1.  DC-08-119

                   F.  Ameristar Casino Kansas City, Inc       12:20

         10            1.  DC-08-120

                   G.  Ameristar Casino St. Charles, Inc       15:12

         11            1.  DC-08-121

                   H.  HGI-St. Jo, Inc.                         17:18

         12            1.  DC-08-122

                   I.  IOC-Kansas City, Inc.                    19:9

         13            1.  DC-08-123

                   J.  Missouri Gaming Company                  21:23

         14            1.  DC-08-124

                   K.  Pinnacle Entertainment, Inc.            23:13

         15            1.  DC-08-125

 

         16   IV.  Consideration of Settlement Agreements

                   L.  IOC-Caruthersville, LLC                  24:24

         17            1.  Resolution No. 08-131

                   M.  IOC-Caruthersville, LLC                  26:10

         18            1.  Resolution No. 08-032

 

         19   V.  Consideration of Licensure of Level I/

                   Key Applicants

         20        N.  Resolution No. 08-033                    27:24

 

         21   VI. Consideration of Extension of Liquor

                  License Hours

         22        O.  IOC-Kansas City, Inc.                    29:18

                       1.  DC-08-034

         23  

              VII. Consideration of Extension of Licensure

         24        of Pinnacle Entertainment, Inc.

                   P.  Resolution No. 08-035                    30:23

         25  

 

 

 


 

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          1                         AGENDA (CONT'D)

 

          2                                                     PAGE

 

          3   VIII.  Consideration of Ratification of

                     Withdrawal of 11 CSR 45-10.051

          4          Q.  Resolution No. 08-036                  32:5

 

          5   IX.    Consideration of Amended Final

                     Order of Rulemaking

          6          1.  11 CSR 45-4.050-Application Period    33:8

                         and Fees for Class A License

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          1  

 

          2              BEFORE THE MISSOURI GAMING COMMISSION

                                   STATE OF MISSOURI

          3  

 

          4  

 

          5  

 

          6  

                                         Meeting

          7                          March 26, 2008

                                      10:00 a.m.

          8                          Central Office

                                    3417 Knipp Drive

          9                    Jefferson City, Missouri

 

         10  

 

         11  

 

         12  

 

         13  

 

         14   COMMISSION MEMBERS PRESENT:

 

         15              Noel J. Shull, Chairman

                         Darryl T. Jones

         16              Larry W. Plunkett, Sr.

                         Suzanne Bradley

         17  

 

         18  

 

         19  

 

         20  

 

         21   Reported by:

              Patricia A. Stewart, RMR, RPR, CCR 401

         22   Midwest Litigation Services

              3432 West Truman Boulevard, Suite 207

         23   Jefferson City, Missouri  65109

              (573) 636-7551

         24  

 

         25  

 

         26  

 

 

 


 

                                                                        5

 

 

 

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

 

          2                 CHAIRMAN SHULL:  Would you call the roll,

 

          3   please.

 

          4                 MS. FRANKS:  Chairman Shull.

 

          5                 CHAIRMAN SHULL:  Present.

 

          6                 MS. FRANKS:  Commissioner Jones.

 

          7                 COMMISSIONER JONES:  Present.

 

          8                 MS. FRANKS:  Commissioner Hais.

 

          9                 (No response.)

 

         10                 MS. FRANKS:  Commissioner Plunkett.

 

         11                 COMMISSIONER PLUNKETT:  Present.

 

         12                 MS. FRANKS:  Commissioner Bradley.

 

         13                 COMMISSIONER BRADLEY:  Present.

 

         14                 CHAIRMAN SHULL:  The next item is to

 

         15   consider the minutes of the last meeting, February 11th.

 

         16                 COMMISSIONER JONES:  Move for approval of

 

         17   the minutes of February 11, 2008.

 

         18                 COMMISSIONER BRADLEY:  Second.

 

         19                 CHAIRMAN SHULL:  A motion has been made and

 

         20   seconded.

 

         21                 Is there any further discussion?

 

         22                 Hearing none, call the roll.

 

         23                 MS. FRANKS:  Chairman Shull.

 

         24                 CHAIRMAN SHULL:  Approved.

 

         25                 MS. FRANKS:  Commissioner Jones.

 

 

 


 

                                                                        6

 

 

 

          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 the

 

          7   minutes of the February 11, 2008 meeting.

 

          8                 CHAIRMAN SHULL:  The next item that will be

 

          9   considered is the February 20 minutes.

 

         10                 COMMISSIONER PLUNKETT:  I make a motion we

 

         11   approve the minutes of February 20.

 

         12                 COMMISSIONER JONES:  Second.

 

         13                 CHAIRMAN SHULL:  A motion made and seconded.

 

         14                 Is there further discussion?

 

         15                 Hearing none, call the roll.

 

         16                 MS. FRANKS:  Chairman Shull.

 

         17                 CHAIRMAN SHULL:  Approved.

 

         18                 MS. FRANKS:  Commissioner Jones.

 

         19                 COMMISSIONER JONES:  Approved.

 

         20                 MS. FRANKS:  Commissioner Plunkett.

 

         21                 COMMISSIONER PLUNKETT:  Approved.

 

         22                 MS. FRANKS:  Commissioner Bradley.

 

         23                 COMMISSIONER BRADLEY:  Approved.

 

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

 

         25   minutes of the February 20th, 2008 meeting.

 

 

 


 

                                                                        7

 

 

 

          1                 CHAIRMAN SHULL:  I want to turn the meeting

 

          2   over to Mr. McNary for Consideration of Disciplinary

 

          3   Actions.

 

          4                 MR. MCNARY:  Mr. Chairman, Commissioners,

 

          5   first let the record show we have been in touch, have

 

          6   heard from Commissioner Sam Hais.  He's suffering some

 

          7   severe back problems; otherwise, he'd be here.  But we

 

          8   expect him back for the next meeting.

 

          9                 Consideration of Disciplinary Actions will

 

         10   be handled by General Counsel Chris Hinckley.

 

         11                 MR. HINCKLEY:  Good morning, Mr. Chairman,

 

         12   Commissioners.

 

         13                 CHAIRMAN/COMMISSIONERS:  Good morning.

 

         14                 MR. HINCKLEY:  I direct your attention to

 

         15   Tab C and Disciplinary Complaint No. 08-117 concerning the

 

         16   Level I Licensee Glen Moise, Director of Property

 

         17   Management for Isle of Capri-Kansas City.

 

         18                 The violations under this discipline alleged

 

         19   are all under 11 CSR 45-6.020, which requires the gambling

 

         20   establishments to meet the local fire and safety codes.

 

         21                 The facts supporting the alleged violations

 

         22   are as follows:  The building permits were not secured

 

         23   before construction began on a conference room and it was

 

         24   later discovered that the licensee failed to get permits

 

         25   for the conversion of the casino redemption center and

 

 

 


 

                                                                        8

 

 

 

          1   surveillance room.

 

          2                 As a result of the facts or allegations, the

 

          3   Staff recommends that the Commission propose a three-

 

          4   calendar-day suspension.

 

          5                 CHAIRMAN SHULL:  Are there any questions for

 

          6   Mr. Hinckley?

 

          7                 Is there a motion?

 

          8                 COMMISSIONER BRADLEY:  I make a motion to

 

          9   approve Disciplinary Complaint 08-117.

 

         10                 COMMISSIONER JONES:  Second.

 

         11                 CHAIRMAN SHULL:  A motion has been made and

 

         12   seconded.

 

         13                 Is there further discussion?

 

         14                 Call the roll, please.

 

         15                 MS. FRANKS:  Chairman Shull.

 

         16                 CHAIRMAN SHULL:  Approved.

 

         17                 MS. FRANKS:  Commissioner Jones.

 

         18                 COMMISSIONER JONES:  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   Disciplinary Complaint DC-08-117.

 

         25                 MR. HINCKLEY:  I now direct your attention

 

 

 


 

                                                                        9

 

 

 

          1   to Tab D and Disciplinary Complaint No. 08-118 concerning

 

          2   Level I Licensee David J. Murray, slots manager for HGI-

 

          3   Mark Twain.

 

          4                 The violations alleged fall under -- in two

 

          5   counts:  Licensee's failure to safeguard assets and under

 

          6   the CSRs 45-10.030 and the internal controls regarding

 

          7   EGDs and the minimum standards for their maintenance.

 

          8                 The facts supporting the alleged violations

 

          9   are as follows.  In Count I, that the licensee had ended

 

         10   up contacting MGC and informed MGC that six cash boxes

 

         11   pulled from the property's EGDs were discovered in the EGD

 

         12   maintenance room that should have been empty but they

 

         13   ended up containing $60 in currency.

 

         14                 In Count II, the slot department again

 

         15   contacted MGC and reported that seven EGDs contained

 

         16   software that was previously revoked by MGC.

 

         17                 As a result of the factual allegations in

 

         18   these two counts, the Staff recommends that the Commission

 

         19   propose a three-calendar-day suspension.

 

         20                 I apologize.  This is -- well, actually I

 

         21   think I pointed out, this is for a Level I licensee,

 

         22   David J. Murray.

 

         23                 COMMISSIONER JONES:  Move for acceptance of

 

         24   DC-08-118.

 

         25                 COMMISSIONER PLUNKETT:  Second.

 

 

 


 

                                                                       10

 

 

 

          1                 CHAIRMAN SHULL:  A motion has been made and

 

          2   seconded.

 

          3                 Is there further discussion?

 

          4                 Hearing none, call the roll.

 

          5                 MS. FRANKS:  Chairman Shull.

 

          6                 CHAIRMAN SHULL:  Approved.

 

          7                 MS. FRANKS:  Commissioner Jones.

 

          8                 COMMISSIONER JONES:  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   Disciplinary Action DC-08-118.

 

         15                 MR. HINCKLEY:  I now direct your attention

 

         16   to Tab E and Disciplinary Complaint No. 08-119 concerning

 

         17   Class A Licensee Ameristar Casino Kansas City.

 

         18                 The violations alleged fall under

 

         19   11 CSR 45-5.180, which requires that poker tournament

 

         20   chips bear the inscription no cash value.

 

         21                 The facts supporting the alleged violations

 

         22   are as follows:  During a 2006 audit it was discovered

 

         23   that these chips were missing the inscription required.

 

         24   The licensee told MGC that the chips would be ordered --

 

         25   new chips with the inscription would be ordered before

 

 

 


 

                                                                       11

 

 

 

          1   August 1st, 2007.

 

          2                 On August 22nd MGC -- excuse me -- an MGC

 

          3   agent discovered that the same chips were still being used

 

          4   and then later discovered that the chips were actually not

 

          5   ordered until August 30th.

 

          6                 As a result of these factual allegations,

 

          7   the Staff recommends that the Commission propose a $10,000

 

          8   fine.

 

          9                 CHAIRMAN SHULL:  Was there any reason given

 

         10   for the amount of time that had elapsed before they were

 

         11   ordered?

 

         12                 MR. HINCKLEY:  I don't recall whether or

 

         13   not -- I'm sure there was some reason given, Mr. Chairman.

 

         14   I can check the report.

 

         15                 I believe that there was -- after the

 

         16   discovery, that the licensee attempted to get a variance,

 

         17   and that ended up being denied, but I don't believe that

 

         18   that would have put off the original order and the

 

         19   deadline.

 

         20                 But it appears there was an attempt to get a

 

         21   variance to allow the use of the chips, or continue to

 

         22   allow the use of the chips, which doesn't negate the audit

 

         23   finding and the response to the audit finding which was

 

         24   being -- causing the discipline.

 

         25                 CHAIRMAN SHULL:  Are there any other

 

 

 


 

                                                                       12

 

 

 

          1   questions?

 

          2                 COMMISSIONER BRADLEY:  No.

 

          3                 COMMISSIONER JONES:  Move for acceptance of

 

          4   DC-08-119.

 

          5                 COMMISSIONER BRADLEY:  Second.

 

          6                 CHAIRMAN SHULL:  A motion has been made and

 

          7   seconded.

 

          8                 Is there further discussion?

 

          9                 Hearing none, call the roll.

 

         10                 MS. FRANKS:  Chairman Shull.

 

         11                 CHAIRMAN SHULL:  Approved.

 

         12                 MS. FRANKS:  Commissioner Jones.

 

         13                 COMMISSIONER JONES:  Approved.

 

         14                 MS. FRANKS:  Commissioner Plunkett.

 

         15                 COMMISSIONER PLUNKETT:  Approved.

 

         16                 MS. FRANKS:  Commissioner Bradley.

 

         17                 COMMISSIONER BRADLEY:  Approved.

 

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

 

         19   Disciplinary Action DC-08-119.

 

         20                 MR. HINCKLEY:  I now direct your attention

 

         21   to Tab F and Disciplinary Complaint No. 08-120 concerning

 

         22   Licensee Ameristar Casino Kansas City.

 

         23                 The violations alleged fall under the

 

         24   internal controls requiring licensees to identify

 

         25   disassociated persons at ticketing and the turnstiles and

 

 

 


 

                                                                       13

 

 

 

          1   the internal controls requiring the Marketing Department

 

          2   to maintain an accurate and updated disassociated person

 

          3   list.

 

          4                 The facts supporting the alleged violations

 

          5   here are as follows:  During an MGC audit it was

 

          6   discovered that two disassociated persons could not be

 

          7   located in the licensee's player tracking system.  As a

 

          8   result of that, compliance was assured by the licensee.

 

          9                 During a later followup audit, one

 

         10   disassociated person did not have an account and one

 

         11   disassociated person was entered with the wrong Social

 

         12   Security number.

 

         13                 As a result of these allegations, the Staff

 

         14   recommends that the Commission propose a $5,000 fine.

 

         15                 CHAIRMAN SHULL:  Are there any questions for

 

         16   Mr. Hinckley?

 

         17                 COMMISSIONER BRADLEY:  Has that system now

 

         18   been corrected?

 

         19                 MR. HINCKLEY:  The system -- there is going

 

         20   to be a discussion regarding the system and what needs to

 

         21   be done to make sure that this doesn't happen again, but

 

         22   at this point I can't say where they are on making sure

 

         23   that it is complete or the corrections have been made.

 

         24   They are addressing the issue.

 

         25                 There is, I believe, a representative from

 

 

 


 

                                                                       14

 

 

 

          1   Ameristar Kansas City here if further questions would like

 

          2   to be asked of them.

 

          3                 COMMISSIONER BRADLEY:  Is this the first

 

          4   time it's happened?

 

          5                 MR. HINCKLEY:  I believe this -- in recent

 

          6   time the first -- in recent memory the first time this has

 

          7   happened with a disassociated person list with this

 

          8   licensee, but I can't speak, you know, to outside of a few

 

          9   months.

 

         10                 COMMISSIONER JONES:  Was there any

 

         11   indication that either of the DAPs made it on to the

 

         12   vessel?

 

         13                 MR. HINCKLEY:  There is no indication that

 

         14   any disassociated persons that they discovered with

 

         15   incorrect information or a nonextinct account ever made it

 

         16   aboard the casino.  That would have been a further

 

         17   finding.

 

         18                 COMMISSIONER JONES:  Okay.

 

         19                 CHAIRMAN SHULL:  Is there a motion?

 

         20                 COMMISSIONER PLUNKETT:  I make a motion we

 

         21   approve DC-18-120.

 

         22                 COMMISSIONER BRADLEY:  Second.

 

         23                 CHAIRMAN SHULL:  A motion is made and been

 

         24   seconded.

 

         25                 Is there any further discussion?

 

 

 


 

                                                                       15

 

 

 

          1                 Hearing none, 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-08-120.

 

         12                 MR. HINCKLEY:  I now direct your attention

 

         13   to Tab G and Disciplinary Complaint No. 08-121 concerning

 

         14   Class A Licensee Ameristar Casino St. Charles.

 

         15                 The violations alleged fall under

 

         16   11 CSR 45-5.053 which requires that an occupational --

 

         17   that occupational licensees at all times display their MGC

 

         18   gaming badges or licenses.

 

         19                 The facts supporting the alleged violations

 

         20   are as follows:  The licensee's dealer, after what

 

         21   appeared to be coaxing by a casino marketing rep, removed

 

         22   his gaming badge and placed it on the table in front of

 

         23   himself, as well as in front of a patron.

 

         24                 The patron then donned the badge and

 

         25   entered the pit area for a few seconds, but a supervisor

 

 

 


 

                                                                       16

 

 

 

          1   apparently observing this immediately ordered the

 

          2   patron from the pit area and returned the badge to the

 

          3   dealer.

 

          4                 As a result of these factual allegations,

 

          5   the Staff recommends that the Commission propose a $10,000

 

          6   fine.

 

          7                 COMMISSIONER JONES:  Do you know,

 

          8   Mr. Hinckley, I'm having a flashback.  It seems like we

 

          9   were going over this in -- what did Yogi Berra say,

 

         10   deju-vu?

 

         11                 MR. HINCKLEY:  Yogi Berra, yeah, all over

 

         12   again.

 

         13                 COMMISSIONER JONES:  Right.  All over again.

 

         14                 Was there any alcohol involved in this?

 

         15                 MR. HINCKLEY:  Not to my knowledge.  Not to

 

         16   the investigating officer's knowledge.

 

         17                 COMMISSIONER JONES:  And this was just a

 

         18   couple of seconds?

 

         19                 MR. HINCKLEY:  Yes.  Well, actually, I can

 

         20   tell you that it was a couple of seconds from the

 

         21   videotape from the evidence.

 

         22                 COMMISSIONER JONES:  Okay.

 

         23                 MR. HINCKLEY:  This was reported by the

 

         24   licensee as well.

 

         25                 CHAIRMAN SHULL:  Is there a motion?

 

 

 


 

                                                                       17

 

 

 

          1                 COMMISSIONER JONES:  Move for acceptance of

 

          2   DC-08-121.

 

          3                 COMMISSIONER PLUNKETT:  Second.

 

          4                 CHAIRMAN SHULL:  A motion is made and

 

          5   seconded.

 

          6                 Is there any further discussion?

 

          7                 Hearing none, call the roll.

 

          8                 MS. FRANKS:  Chairman Shull.

 

          9                 CHAIRMAN SHULL:  Approved.

 

         10                 MS. FRANKS:  Commissioner Jones.

 

         11                 COMMISSIONER JONES:  Approved.

 

         12                 MS. FRANKS:  Commissioner Plunkett.

 

         13                 COMMISSIONER PLUNKETT:  Approved.

 

         14                 MS. FRANKS:  Commissioner Bradley.

 

         15                 COMMISSIONER BRADLEY:  Approved.

 

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

 

         17   Disciplinary Complaint DC-08-121.

 

         18                 MR. HINCKLEY:  I now direct your attention

 

         19   to Tab H and Disciplinary Complaint No. 08-122 concerning

 

         20   Class A Licensee Herbst, the St. Joe Casino.

 

         21                 The violations alleged here fall under

 

         22   11 CSR 45-10.030 and internal controls requiring the

 

         23   casino safeguard from loss all casino assets and that EGD

 

         24   doors be alarmed with an audible signal.

 

         25                 The facts supporting the alleged violations

 

 

 


 

                                                                       18

 

 

 

          1   are as follows:  that in September of 2007, September 14th

 

          2   of 2007, there was a test of a sample of EGDs to ensure

 

          3   compliance with an earlier issued advisory memo.  When the

 

          4   doors were opened, of the EGDs, there was no audible alarm.

 

          5                 On September 19th of 2007 another sample of

 

          6   electronic gaming devices, or EGDs, was tested and the

 

          7   same problem continued to exist.

 

          8                 As a result of these factual allegations,

 

          9   the Commission -- I'm sorry -- the Staff recommends that

 

         10   the Commission propose a $5,000 fine.

 

         11                 CHAIRMAN SHULL:  Are there any questions for

 

         12   Mr. Hinckley?

 

         13                 COMMISSIONER BRADLEY:  Has the problem been

 

         14   fixed?

 

         15                 MR. HINCKLEY:  Yes, it has.

 

         16                 CHAIRMAN SHULL:  Is there a motion?

 

         17                 COMMISSIONER PLUNKETT:  I make a motion we

 

         18   approve DC-08-122.

 

         19                 COMMISSIONER JONES:  Second.

 

         20                 CHAIRMAN SHULL:  A motion is made and

 

         21   seconded.

 

         22                 Is there further discussion?

 

         23                 Hearing none, call the roll, please.

 

         24                 MS. FRANKS:  Chairman Shull.

 

         25                 CHAIRMAN SHULL:  Approved.

 

 

 


 

                                                                       19

 

 

 

          1                 MS. FRANKS:  Commissioner Jones.

 

          2                 COMMISSIONER JONES:  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   Disciplinary Complaint DC-08-122.

 

          9                 MR. HINCKLEY:  I now direct your attention

 

         10   to Tab I and Disciplinary Complaint No. 08-123 concerning

 

         11   Class A Licensee Isle of Capri-Kansas City.

 

         12                 The violations here fall under -- the

 

         13   alleged violations under 11 CSR 45-6.020, which requires

 

         14   that gambling establishments meet the local fire and

 

         15   safety codes.

 

         16                 The facts supporting the alleged violations

 

         17   are as follows:  That building permits were not secured

 

         18   before construction began on a conference room.  Later it

 

         19   was discovered that the licensee failed to get permits for

 

         20   conversion of the casino redemption center and

 

         21   surveillance room.

 

         22                 As a result of these factual allegations,

 

         23   the Staff recommends that the Commission propose a $20,000

 

         24   fine.

 

         25                 I think you'll recall that this was

 

 

 


 

                                                                       20

 

 

 

          1   connected to the allegations in Tab C.

 

          2                 CHAIRMAN SHULL:  Any questions for

 

          3   Mr. Hinckley?

 

          4                 COMMISSIONER BRADLEY:  Were there any

 

          5   problems with the permits?  I mean, work was done in

 

          6   accordance -- I mean, even though the permits were late

 

          7   or --

 

          8                 MR. HINCKLEY:  The permits were secured --

 

          9   the permits to build the plans -- I think the process --

 

         10   I'm sure everyone realizes the process to get the permits,

 

         11   get the plans approved and then proceed.

 

         12                 So afterwards the work was approved as

 

         13   appropriate.  Otherwise, it would have been taken down and

 

         14   redone.

 

         15                 COMMISSIONER BRADLEY:  According to the

 

         16   allegations, it was already in process.  It was halfway

 

         17   over -- halfway finished before the permits had even been

 

         18   requested.

 

         19                 MR. HINCKLEY:  I believe that was the case

 

         20   in one portion, one construction project; however, there

 

         21   were other ones that had been completed.  These were all

 

         22   internal to the structure, so not necessarily observable

 

         23   from the public.

 

         24                 And in the areas of the casino, as you'll

 

         25   recall, surveillance and I believe the other one was maybe

 

 

 


 

                                                                       21

 

 

 

          1   an area conference room, conversion of casino redemption

 

          2   and surveillance room which are limited to access, so not

 

          3   open to the public.

 

          4                 CHAIRMAN SHULL:  Is there a motion to

 

          5   approve?

 

          6                 COMMISSIONER BRADLEY:  I make a motion to

 

          7   approve Disciplinary Complaint 08-123.

 

          8                 COMMISSIONER JONES:  Second.

 

          9                 CHAIRMAN SHULL:  A motion is made and

 

         10   seconded.

 

         11                 Is there further discussion?

 

         12                 Call the roll, please.

 

         13                 MS. FRANKS:  Chairman Shull.

 

         14                 CHAIRMAN SHULL:  Approved.

 

         15                 MS. FRANKS:  Commissioner Jones.

 

         16                 COMMISSIONER JONES:  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   Disciplinary Complaint DC-08-123.

 

         23                 MR. HINCKLEY:  I now direct your attention

 

         24   to Tab J and Disciplinary Complaint No. 08-124 concerning

 

         25   Class A Licensee Missouri Gaming Company, or Argosy

 

 

 


 

                                                                       22

 

 

 

          1   Riverside Casino.

 

          2                 The violations alleged fall under the

 

          3   internal controls that require that the electronic

 

          4   signature records be updated at least monthly to reflect

 

          5   changes in employment status or employee status.

 

          6                 The facts supporting the alleged violations

 

          7   here are as follows:  that in March of 2006 an MGC audit

 

          8   revealed eight employees that had been terminated but

 

          9   still had active electronic signature files.

 

         10                 In June of 2007 a review of the signature

 

         11   files showed that 21 employees had been terminated but

 

         12   still had active electronic signature files.

 

         13                 As a result of these factual allegations,

 

         14   the Staff recommends that the Commission propose a $5,000

 

         15   fine.

 

         16                 CHAIRMAN SHULL:  Has this been corrected?

 

         17                 MR. HINCKLEY:  Yes.

 

         18                 CHAIRMAN SHULL:  Are there any other

 

         19   questions for Mr. Hinckley?

 

         20                 Is there a motion?

 

         21                 COMMISSIONER PLUNKETT:  I make a motion we

 

         22   approve DC-08-124.

 

         23                 COMMISSIONER JONES:  Second.

 

         24                 CHAIRMAN SHULL:  A motion is made and

 

         25   seconded.

 

 

 


 

                                                                       23

 

 

 

          1                 Is there further discussion?

 

          2                 Call the roll, please.

 

          3                 MS. FRANKS:  Chairman Shull.

 

          4                 CHAIRMAN SHULL:  Approved.

 

          5                 MS. FRANKS:  Commissioner Jones.

 

          6                 COMMISSIONER JONES:  Approved.

 

          7                 MS. FRANKS:  Commissioner Plunkett.

 

          8                 COMMISSIONER PLUNKETT:  Approved.

 

          9                 MS. FRANKS:  Commissioner Bradley.

 

         10                 COMMISSIONER BRADLEY:  Approved.

 

         11                 MS. FRANKS:  By your vote you've adopted

 

         12   Disciplinary Complaint DC-08-124.

 

         13                 MR. HINCKLEY:  I now direct your attention

 

         14   to Tab K and Disciplinary Complaint No. 08-125 concerning

 

         15   Class A Licensee Pinnacle Entertainment, President Casino.

 

         16                 The violations alleged fall under

 

         17   11 CSR 45-5.190, requiring that EGDs be subject to testing

 

         18   prior to implementation and use.

 

         19                 The facts supporting the alleged violations

 

         20   are as follows:  After a switchover to a new EGD data

 

         21   system which required that each EGD be Phase II retested

 

         22   before being put into play, seven EGDs were discovered in

 

         23   play that had not been Phase II retested.

 

         24                 As a result of these factual allegations,

 

         25   the Staff recommends that the Commission propose a $10,000

 

 

 


 

                                                                       24

 

 

 

          1   fine.

 

          2                 CHAIRMAN SHULL:  Are there any questions for

 

          3   Mr. Hinckley?

 

          4                 Is there a motion to approve?

 

          5                 COMMISSIONER BRADLEY:  A motion to approve

 

          6   Disciplinary Complaint 08-125.

 

          7                 COMMISSIONER PLUNKETT:  Second.

 

          8                 CHAIRMAN SHULL:  A motion has been made and

 

          9   seconded.

 

         10                 Is there further discussion?

 

         11                 Hearing none, call the roll, please.

 

         12                 MS. FRANKS:  Chairman Shull.

 

         13                 CHAIRMAN SHULL:  Approved.

 

         14                 MS. FRANKS:  Commissioner Jones.

 

         15                 COMMISSIONER JONES:  Approved.

 

         16                 MS. FRANKS:  Commissioner Plunkett.

 

         17                 COMMISSIONER PLUNKETT:  Approved.

 

         18                 MS. FRANKS:  Commissioner Bradley.

 

         19                 COMMISSIONER BRADLEY:  Approved.

 

         20                 MS. FRANKS:  By your vote you've adopted

 

         21   Disciplinary Complaint DC-08-125.

 

         22                 MR. MCNARY:  Mr. Chairman, Mr. Hinckley will

 

         23   continue on with Settlement Agreements.

 

         24                 MR. HINCKLEY:  I now direct your attention

 

         25   to Tab L and Commission Resolution No. 08-031 regarding

 

 

 


 

                                                                       25

 

 

 

          1   settlement agreement and waiver of hearings with Isle of

 

          2   Capri-Caruthersville and underling disciplinary matter

 

          3   No. 08-003.

 

          4                 In that matter the Commission issued a

 

          5   $10,000 fine after hearing facts alleging that the

 

          6   licensee had failed to appropriately train a licensed

 

          7   dealer and as a result failed to protect casino assets.

 

          8                 Upon the Commission issuing the fine, the

 

          9   licensee immediately contacted the Commission, took

 

         10   responsibility for their actions and/or inactions, and as

 

         11   a result the licensee and the Commission reached an

 

         12   agreement whereby the matter could be settled for a

 

         13   payment of $9,000.  The Staff recommends that the

 

         14   Commission approve this settlement agreement.

 

         15                 CHAIRMAN SHULL:  Are there any questions for

 

         16   Mr. Hinckley?

 

         17                 Is there a motion?

 

         18                 COMMISSIONER BRADLEY:  A motion to approve

 

         19   Commission Resolution No. 08-031.

 

         20                 COMMISSIONER JONES:  Second.

 

         21                 CHAIRMAN SHULL:  A motion has been made and

 

         22   seconded.

 

         23                 Is there further discussion?

 

         24                 Hearing none, call the roll, please.

 

         25                 MS. FRANKS:  Chairman Shull.

 

 

 


 

                                                                       26

 

 

 

          1                 CHAIRMAN SHULL:  Approved.

 

          2                 MS. FRANKS:  Commissioner Jones.

 

          3                 COMMISSIONER JONES:  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   Resolution No. 08-031.

 

         10                 MR. HINCKLEY:  I now direct your attention

 

         11   to Tab M and Commission Resolution No. 08-032 regarding

 

         12   settlement agreement and waiver of hearings with Isle of

 

         13   Capri-Caruthersville and the underlying disciplinary

 

         14   matter 08-004.

 

         15                 In that matter the Commission issued a

 

         16   $7,500 fine after hearing facts alleging that the licensee

 

         17   had advertised for discount liquor prices.

 

         18                 Upon the Commission issuing the fine, the

 

         19   licensee immediately contacted the Commission and took

 

         20   responsibility for their actions.

 

         21                 As a result, the licensee and the Commission

 

         22   reached an agreement whereby the matter could be settled

 

         23   for a payment of $6,750.  Staff recommends that the

 

         24   Commission approve this settlement agreement.

 

         25                 CHAIRMAN SHULL:  Are there any questions for

 

 

 


 

                                                                       27

 

 

 

          1   Mr. Hinckley?

 

          2                 Is there a motion?

 

          3                 COMMISSIONER PLUNKETT:  I make a motion we

 

          4   approve Resolution 08-032.

 

          5                 COMMISSIONER JONES:  Second.

 

          6                 CHAIRMAN SHULL:  A motion is made and

 

          7   seconded.

 

          8                 Is there further discussion?

 

          9                 Hearing none, 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 Plunkett.

 

         15                 COMMISSIONER PLUNKETT:  Approved.

 

         16                 MS. FRANKS:  Commissioner Bradley.

 

         17                 COMMISSIONER BRADLEY:  Approved.

 

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

 

         19   Resolution No. 08-032.

 

         20                 MR. HINCKLEY:  Thank you.

 

         21                 MR. MCNARY:  Mr. Chairman, Item V, Licensure

 

         22   of a Level I/Key Applicant, will be handled by

 

         23   Sergeant David Leitman.

 

         24                 SERGEANT LEITMAN:  Good morning,

 

         25   Mr. Chairman, Commissioners.

 

 

 


 

                                                                       28

 

 

 

          1                 CHAIRMAN/COMMISSIONERS:  Good morning.

 

          2                 SERGEANT LEITMAN:  A short list, just one

 

          3   applicant today.

 

          4                 Missouri State Highway Patrol investigators,

 

          5   along with the Gaming Commission financial investigators,

 

          6   conducted a background investigation on a Level I

 

          7   applicant.  The investigation included, but was not

 

          8   limited, to criminal, financial and general character

 

          9   inquiries which were made in the jurisdictions where the

 

         10   applicant lived, worked or frequented.

 

         11                 The following individual, Donald Curtis

 

         12   Thomas, Security Manager for Isle of Capri/Caruthersville,

 

         13   is presented to you for your consideration.

 

         14                 The results of the investigation have been

 

         15   provided to the Missouri Gaming Commission Staff, and

 

         16   their review is in your packets, along with the summary.

 

         17                 I'll be happy to answer any questions that

 

         18   you may have on this applicant.  I actually did this

 

         19   investigation.  That's why they sent me up today.  So here

 

         20   I am.

 

         21                 CHAIRMAN SHULL:  Is there a motion to

 

         22   approve?

 

         23                 COMMISSIONER JONES:  A motion to approve

 

         24   Resolution No. 08-033.

 

         25                 COMMISSIONER BRADLEY:  Second.

 

 

 


 

                                                                       29

 

 

 

          1                 CHAIRMAN SHULL:  A motion is made and

 

          2   seconded.

 

          3                 Is there further discussion?

 

          4                 Hearing none, call the roll.

 

          5                 MS. FRANKS:  Chairman Shull.

 

          6                 CHAIRMAN SHULL:  Approved.

 

          7                 MS. FRANKS:  Commissioner Jones.

 

          8                 COMMISSIONER JONES:  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. 08-033.

 

         15                 MR. MCNARY:  Mr. Chairman, Item VI concerns

 

         16   Extension of Liquor License Hours, to be handled by Dave

 

         17   Welch.

 

         18                 MR. WELCH:  Mr. Chairman, members of the

 

         19   Commission, Isle of Capri-Kansas City has requested to

 

         20   have extended liquor licenses to 3:00 a.m. off the gaming

 

         21   floor.

 

         22                 Isle of Capri-Kansas City is located in a

 

         23   convention trade area in Kansas City where they allow

 

         24   3:00 a.m. sale of alcoholic beverages, and they have

 

         25   requested permission to do that on their facility.

 

 

 


 

                                                                       30

 

 

 

          1                 We have not had any major problems with Isle

 

          2   of Capri regarding alcoholic beverages.

 

          3                 CHAIRMAN SHULL:  Are there any questions for

 

          4   Mr. Welch?

 

          5                 Is there a motion to approve?

 

          6                 COMMISSIONER JONES:  Motion to approve

 

          7   Resolution No. 08-034.

 

          8                 COMMISSIONER BRADLEY:  Second.

 

          9                 CHAIRMAN SHULL:  A motion has been made and

 

         10   seconded.

 

         11                 Is there further questions?

 

         12                 Hearing none, 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 Plunkett.

 

         18                 COMMISSIONER PLUNKETT:  Approved.

 

         19                 MS. FRANKS:  Commissioner Bradley.

 

         20                 COMMISSIONER BRADLEY:  Approved.

 

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

 

         22   Resolution No. 08-034.

 

         23                 MR. MCNARY:  Mr. Chairman, Item VII concerns

 

         24   the Extension of Licensure of Pinnacle.

 

         25                 You may recall that we gave Pinnacle Lumiere

 

 

 


 

                                                                       31

 

 

 

          1   a three-month license.  It comes up for this meeting, and

 

          2   Staff recommends that that license be extended for four

 

          3   months, 120 days, until after the July Commission meeting.

 

          4   We believe that they're on target to complete the

 

          5   necessary changes that we're looking for.

 

          6                 CHAIRMAN SHULL:  Do all of the covenants

 

          7   that applied to the initial licensing still apply?

 

          8                 MR. MCNARY:  They would.  And this would

 

          9   just be a continuation of those covenants.

 

         10                 CHAIRMAN SHULL:  Are there any further

 

         11   questions?

 

         12                 Is there a motion?

 

         13                 COMMISSIONER PLUNKETT:  I make a motion we

 

         14   approve Resolution 08-035.

 

         15                 COMMISSIONER JONES:  Second.

 

         16                 CHAIRMAN SHULL:  A motion is made and

 

         17   seconded.

 

         18                 Is there further discussion?

 

         19                 Hearing none, 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 Plunkett.

 

         25                 COMMISSIONER PLUNKETT:  Approved.

 

 

 


 

                                                                       32

 

 

 

          1                 MS. FRANKS:  Commissioner Bradley.

 

          2                 COMMISSIONER BRADLEY:  Approved.

 

          3                 MS. FRANKS:  By your vote you've adopted

 

          4   Resolution No. 08-035.

 

          5                 MR. MCNARY:  Mr. Chairman, Item VIII on the

 

          6   agenda concerns Regulation 11 CSR 45-10.051 which was

 

          7   before the Joint Commission on Administrative Rules.

 

          8                 There was an extensive discussion about this

 

          9   particular regulation and we withdrew our rule, mostly

 

         10   because it seemed to be an impossible situation.  It was

 

         11   easier for us to withdraw the rule and rework it and bring

 

         12   it back to you and start over again than to belabor it.

 

         13                 This action and what Staff is recommending

 

         14   is that you ratify our withdrawal of that rule.

 

         15                 CHAIRMAN SHULL:  Are there any questions?

 

         16                 Is there a motion?

 

         17                 COMMISSIONER BRADLEY:  Move to approve

 

         18   Commission Resolution No. 08-036.

 

         19                 COMMISSIONER PLUNKETT:  Second.

 

         20                 CHAIRMAN SHULL:  A motion made and seconded.

 

         21                 Is there further discussion?

 

         22                 Hearing none, call the roll, please.

 

         23                 MS. FRANKS:  Chairman Shull.

 

         24                 CHAIRMAN SHULL:  Approved.

 

         25                 MS. FRANKS:  Commissioner Jones.

 

 

 


 

                                                                       33

 

 

 

          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   Resolution No. 08-036.

 

          8                 MR. MCNARY:  Mr. Chairman, Item IX on the

 

          9   agenda was added a few days ago.  It concerns an amended

 

         10   final order of rulemaking, and Counsel David Welch will

 

         11   explain this.

 

         12                 MR. WELCH:  This amended order of rulemaking

 

         13   deals with 11 CSR 45-4.050.  We amended the fees in

 

         14   055 -- well, originally the proposal was to amend 050.

 

         15   Then because of the timing provided in paragraph 1 on

 

         16   applying for applications that was changed to 055.

 

         17                 In consultation with the Secretary of

 

         18   State's Office and the Joint Committee on Administrative

 

         19   Rules, they suggested that we delete paragraphs 2 through

 

         20   4 which are dealt with in 055.

 

         21                 So what we are deleting here is dealt with

 

         22   in 055 and would be taken care of at that location.

 

         23                 So all we are doing is deleting something

 

         24   that is dealt with in another rule that has already been

 

         25   adopted.

 

 

 


 

                                                                       34

 

 

 

          1                 CHAIRMAN SHULL:  Are there any questions for

 

          2   Mr. Welch?

 

          3                 Is there a motion to approve?

 

          4                 COMMISSIONER PLUNKETT:  I make a motion we

 

          5   approve 11 CSR 45-4.050 as amended.

 

          6                 COMMISSIONER BRADLEY:  Second.

 

          7                 CHAIRMAN SHULL:  A motion is made and

 

          8   seconded.

 

          9                 Any further discussion?

 

         10                 Hearing none, 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 the

 

         20   amended final order of rulemaking, 11 CSR 45-4.050.

 

         21                 MR. MCNARY:  That's the agenda and it's not

 

         22   even 40 minutes.

 

         23                 CHAIRMAN SHULL:  Is there a motion to go

 

         24   into closed session?

 

         25                 COMMISSIONER JONES:  Mr. Chairman, I move to

 

 

 


 

                                                                       35

 

 

 

          1   close this meeting to receive, discuss and consider the

 

          2   following matters:  Closed minutes or other closed records

 

          3   under Statutes 610-021(14) and 313.847.1.

 

          4                 CHAIRMAN SHULL:  Is there a second?

 

          5                 COMMISSIONER PLUNKETT:  Second.

 

          6                 CHAIRMAN SHULL:  A motion is made and

 

          7   seconded.

 

          8                 Is there further discussion?

 

          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 Plunkett.

 

         15                 COMMISSIONER PLUNKETT:  Approved.

 

         16                 MS. FRANKS:  Commissioner Bradley.

 

         17                 COMMISSIONER BRADLEY:  Approved.

 

         18                 CHAIRMAN SHULL:  Thank you.

 

         19                 (Open meeting concluded.)

 

         20  

 

         21  

 

         22  

 

         23  

 

         24  

 

         25  

 

 

 


 

                                                                       36

 

 

 

          1  

 

          2  

 

          3                     CERTIFICATE OF REPORTER

 

          4  

 

          5              I, Patricia A. Stewart, RMR, RPR, CCR, a

 

          6   Certified Court Reporter in the State of Missouri, do

 

          7   hereby certify that the testimony that appears in the

 

          8   foregoing transcript was taken by me to the best of my

 

          9   ability and thereafter reduced to typewriting by me; that

 

         10   I am neither counsel for, related to, nor employed by any

 

         11   of the parties to the action in which this hearing was

 

         12   taken, and further that I am not a relative or employee of

 

         13   any attorney or counsel employed by the parties thereto,

 

         14   nor financially or otherwise interested in the outcome of

 

         15   the action.

 

         16  

 

         17  

 

         18                           __________________________

 

         19                           Patricia A. Stewart

 

         20                           CCR No. 401

 

         21  

 

         22  

 

         23  

 

         24  

 

         25