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          4               BEFORE THE MISSOURI GAMING COMMISSION

                                    STATE OF MISSOURI

          5              

 

          6              

 

          7              

 

          8              

                                          Meeting

          9                           April 22, 2009

                                       10:00 a.m.

         10                           Central Office

                                     3417 Knipp Drive

         11                     Jefferson City, Missouri

 

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          1                                   AGENDA

 

          2                                                     page

 

          3   I.    Call to Order                              4:2

 

          4   II.   Minutes

                    A.  March 25, 2009                         4:13

          5  

              III.  Consideration of Settlement Agreements

          6         B.  Pinnacle Entertainment, Inc.

                        1.  Resolution No. 09-022             5:17

          7         C.  Pinnacle Entertainment, Inc.

                        1.  Resolution No. 09-023             7:6

          8  

              IV.   Ratification of License

          9         D.  Lady Luck Casino - Caruthersville

                        1.  Resolution No. 09-024             8:19

         10  

              V.    Consideration of Relicensure of Certain

         11         Supplier

                    E.  IGT

         12             1.  Resolution No. 09-025             9:25

 

         13   VI.  Consideration of Licensure of Certain

                    Supplier

         14         F.  NRT Technology Corporation

                        1.  Resolution No. 09-026             11:17

         15  

              VII.  Consideration of Licensure of

         16         Certain Level I/Key Applicants

                    G.  Resolution No. 09-027                  14:10

         17         H.  Resolution No. 09-028                  16:5

 

         18   VIII. Consideration of Change of Control

                    I.  Atronic Americas, LLC

         19             1.  Resolution No. 09-029             17:15

                    J.  Spielo Manufacturing, ULC

         20             1.  Resolution No. 09-030             19:11

 

         21   IX.   Presentation by Pinnacle Entertainment,

                    Inc. on River City Casino Project         21:16

         22  

              X.    New Business                               26:2

         23  

              XI.   Old Business                               29:15

         24  

              XII.  Motion to Close Meeting under

         25         Sections 313.847 and 610.021 (1) and (4)  29:18

 

         26  

 


 

                                                                        3

 

 

 

 

          1  

 

          2              BEFORE THE MISSOURI GAMING COMMISSION

                                   STATE OF MISSOURI

          3  

 

          4  

 

          5  

 

          6  

                                         Meeting

          7                         April 22, 2009

                                      10:00 a.m.

          8                          Central Office

                                    3417 Knipp Drive

          9                    Jefferson City, Missouri

 

         10  

 

         11   COMMISSIONERS PRESENT:

 

         12                           Noel J. Shull, Chairman

                                      Darryl T. Jones

         13                           Samuel J. Hais

                                      Larry W. Plunkett, Sr.

         14                           Suzanne Bradley

 

         15  

 

         16  

 

         17  

 

         18  

 

         19  

 

         20  

              REPORTED BY:

         21   Patricia A. Stewart

              RMR, RPR, CCR 401

         22   3432 West Truman Boulevard, Suite 207

              Jefferson City, Missouri  65109

         23   573-636-7551

 

         24  

 

         25  

 

         26  

                                                                        4

 

 

 

 

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

 

          2                 CHAIRMAN SHULL:  Call the roll, please.

 

          3                 MS. FRANKS:  Chairman Shull.

 

          4                 CHAIRMAN SHULL:  Present.

 

          5                 MS. FRANKS:  Commissioner Jones.

 

          6                 COMMISSIONER JONES:  Present.

 

          7                 MS. FRANKS:  Commissioner Hais.

 

          8                 COMMISSIONER HAIS:  Present.

 

          9                 MS. FRANKS:  Commissioner Plunkett.

 

         10                 COMMISSIONER PLUNKETT:  Present.

 

         11                 MS. FRANKS:  Commissioner Bradley.

 

         12                 COMMISSIONER BRADLEY:  Present.

 

         13                 CHAIRMAN SHULL:  The first item is consider

 

         14   the minutes of the March 25th, 2009 meeting.

 

         15                 COMMISSIONER JONES:  Move to approve the

 

         16   minutes of March 25th, 2009.

 

         17                 COMMISSIONER HAIS:  Second.

 

         18                 CHAIRMAN SHULL:  A motion is made and

 

         19   seconded.

 

         20                 Is there any further discussion?

 

         21                 Hearing none, call the roll, please.

 

         22                 MS. FRANKS:  Chairman Shull.

 

         23                 CHAIRMAN SHULL:  Approve.

 

         24                 MS. FRANKS:  Commissioner Jones.

 

         25                 COMMISSIONER JONES:  Approve.

 

         26  

 

 

                                                                        5

 

 

 

 

          1                 MS. FRANKS:  Commissioner Hais.

 

          2                 COMMISSIONER HAIS:  Approve.

 

          3                 MS. FRANKS:  Commissioner Plunkett.

 

          4                 COMMISSIONER PLUNKETT:  Approve.

 

          5                 MS. FRANKS:  Commissioner Bradley.

 

          6                 COMMISSIONER BRADLEY:  Approve.

 

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

 

          8   minutes of the March 25th, 2009 meeting.

 

          9                 CHAIRMAN SHULL:  The next item is

 

         10   consideration of settlement agreements, which would be

 

         11   introduced by Mr. McNary.

 

         12                 MR. MCNARY:  Mr. Chairman, General Counsel

 

         13   Chris Hinckley will report on the settlement agreements.

 

         14                 MR. HINCKLEY:  Good morning, Chairman,

 

         15   Commissioners.

 

         16                 CHAIRMAN/COMMISSIONERS:  Good morning.

 

         17                 MR. HINCKLEY:  I direct your attention to

 

         18   Tab B and Commission Resolution No. 09-022 regarding the

 

         19   settlement agreement and waiver of hearings concerning

 

         20   Licensee Pinnacle Entertainment and underlying

 

         21   disciplinary matter No. 09-001.

 

         22                 In this matter the Commission issued a

 

         23   $5,000 fine after hearing facts alleging that an EGD, or

 

         24   electronic gaming device, was discovered on the licensee's

 

         25   gaming floor with the incorrect pay glass.

 

         26  

 

                                                                        6

 

 

 

 

          1                 Upon the Commission issuing this fine, the

 

          2   licensee immediately contacted the Commission and took

 

          3   responsibility for their actions or inactions.

 

          4                 The licensee and Commission then engaged in

 

          5   settlement negotiations regarding the matter and pending

 

          6   Commission approval agreed to settle the matter for a

 

          7   payment of $4,500, and the Staff recommends that the

 

          8   Commission adopt this resolution.

 

          9                 CHAIRMAN SHULL:  Are there any questions for

 

         10   Mr. Hinckley?

 

         11                 Is there a motion?

 

         12                 COMMISSIONER HAIS:  Move to adopt Commission

 

         13   Resolution 09-022, Mr. Chairman.

 

         14                 COMMISSIONER BRADLEY:  Second.

 

         15                 CHAIRMAN SHULL:  All right.  A motion is

 

         16   made and seconded.

 

         17                 Is there further discussion?

 

         18                 Hearing none, call the roll, please.

 

         19                 MS. FRANKS:  Chairman Shull.

 

         20                 CHAIRMAN SHULL:  Approve.

 

         21                 MS. FRANKS:  Commissioner Jones.

 

         22                 COMMISSIONER JONES:  Approve.

 

         23                 MS. FRANKS:  Commissioner Hais.

 

         24                 COMMISSIONER HAIS:  Approve.

 

         25                 MS. FRANKS:  Commissioner Plunkett.

 

         26  

 

                                                                        7

 

 

 

 

          1                 COMMISSIONER PLUNKETT:  Approve.

 

          2                 MS. FRANKS:  Commissioner Bradley.

 

          3                 COMMISSIONER BRADLEY:  Approve.

 

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

 

          5   Resolution No. 09-022.

 

          6                 MR. HINCKLEY:  I now direct your attention

 

          7   to Tab C and Commission Resolution No. 09-023 regarding

 

          8   the settlement agreement and waiver of hearings concerning

 

          9   Licensee Pinnacle Entertainment and underlying

 

         10   disciplinary matter No. 09-044.

 

         11                 In this matter the Commission issued a

 

         12   $5,000 fine after hearing facts alleging that 56 decks of

 

         13   playing cards were left unsecured on the gaming floor.

 

         14                 Upon the Commission issuing this fine, the

 

         15   licensee immediately contacted the Commission and took

 

         16   responsibility for their actions or inactions.

 

         17                 The licensee and the Commission then engaged

 

         18   in settlement negotiations regarding this matter and

 

         19   pending Commission approval agreed to settle the matter

 

         20   for a payment of $4,500.  The Staff recommends that the

 

         21   Commission adopt this resolution.

 

         22                 CHAIRMAN SHULL:  Are there any questions for

 

         23   Mr. Hinckley?

 

         24                 Is there a motion?

 

         25                 COMMISSIONER PLUNKETT:  A motion to approve

 

         26  

                                                                        8

 

 

 

 

          1   Resolution 09-023.

 

          2                 COMMISSIONER JONES:  Second.

 

          3                 CHAIRMAN SHULL:  A motion is made and

 

          4   seconded.

 

          5                 Is there further discussion?

 

          6                 Hearing none, call the roll.

 

          7                 MS. FRANKS:  Chairman Shull.

 

          8                 CHAIRMAN SHULL:  Approve.

 

          9                 MS. FRANKS:  Commissioner Jones.

 

         10                 COMMISSIONER JONES:  Approve.

 

         11                 MS. FRANKS:  Commissioner Hais.

 

         12                 COMMISSIONER HAIS:  Approve.

 

         13                 MS. FRANKS:  Commissioner Plunkett.

 

         14                 COMMISSIONER PLUNKETT:  Approve.

 

         15                 MS. FRANKS:  Commissioner Bradley.

 

         16                 COMMISSIONER BRADLEY:  Approve.

 

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

 

         18   Resolution No. 09-023.

 

         19                 MR. MCNARY:  Item IV on the agenda,

 

         20   the Chairman has the authority to extend the license for

 

         21   60 days, and the Chairman has done so.  Resolution 09-024

 

         22   would ratify that extension.

 

         23                 CHAIRMAN SHULL:  Are there any questions?

 

         24                 Is there a motion?

 

         25                 COMMISSIONER JONES:  Move for the acceptance

 

         26  

 

                                                                        9

 

 

 

 

          1   of Resolution No. 09-024.

 

          2                 COMMISSIONER BRADLEY:  Second.

 

          3                 CHAIRMAN SHULL:  A motion is made and

 

          4   seconded.

 

          5                 Is there further discussion?

 

          6                 Hearing none, call the roll.

 

          7                 MS. FRANKS:  Chairman Shull.

 

          8                 CHAIRMAN SHULL:  Approve.

 

          9                 MS. FRANKS:  Commissioner Jones.

 

         10                 COMMISSIONER JONES:  Approve.

 

         11                 MS. FRANKS:  Commissioner Hais.

 

         12                 COMMISSIONER HAIS:  Approve.

 

         13                 MS. FRANKS:  Commissioner Plunkett.

 

         14                 COMMISSIONER PLUNKETT:  Approve.

 

         15                 MS. FRANKS:  Commissioner Bradley.

 

         16                 COMMISSIONER BRADLEY:  Approve.

 

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

 

         18   Resolution No. 09-024.

 

         19                 MR. MCNARY:  Item V on the agenda concerns

 

         20   relicensure of a certain supplier, IGT, and Lieutenant Rex

 

         21   Scism will put on that.

 

         22                 LIEUTENANT SCISM:  Good morning, Chairman,

 

         23   Commissioners.

 

         24                 CHAIRMAN/COMMISSIONERS:  Good morning.

 

         25                 LIEUTENANT SCISM:  Missouri State Highway

 

         26  

 

 

                                                                       10

 

 

 

          1   Patrol investigators conducted the relicensing

 

          2   investigation of one supplier company currently licensed

 

          3   in Missouri.

 

          4                 This investigation consisted of

 

          5   jurisdictional inquiries, feedback from affected gaming

 

          6   company clients, a review of disciplinary actions,

 

          7   litigation and business credit profiles, as well as a

 

          8   review of key persons associated with the company.

 

          9                 The results of this investigation were

 

         10   provided to the MGC staff for their review and the

 

         11   following supplier company is being presented for your

 

         12   consideration.  That would be International Game

 

         13   Technology, IGT, out of Reno, Nevada.

 

         14                 MR. MCNARY:  Mr. Chairman, Staff recommends

 

         15   relicensure.

 

         16                 CHAIRMAN SHULL:  Are there any questions?

 

         17                 Hearing none, is there a motion?

 

         18                 COMMISSIONER BRADLEY:  Motion to approve

 

         19   Commission Resolution No. 09-025.

 

         20                 COMMISSIONER HAIS:  Second.

 

         21                 CHAIRMAN SHULL:  A motion is made and

 

         22   seconded.

 

         23                 Is there any further discussion?

 

         24                 Hearing none, call the roll.

 

         25                 MS. FRANKS:  Chairman Shull.

 

         26  

 

 

                                                                       11

 

 

 

 

          1                 CHAIRMAN SHULL:  Approve.

 

          2                 MS. FRANKS:  Commissioner Jones.

 

          3                 COMMISSIONER JONES:  Approve.

 

          4                 MS. FRANKS:  Commissioner Hais.

 

          5                 COMMISSIONER HAIS:  Approve.

 

          6                 MS. FRANKS:  Commissioner Plunkett.

 

          7                 COMMISSIONER PLUNKETT:  Approve.

 

          8                 MS. FRANKS:  Commissioner Bradley.

 

          9                 COMMISSIONER BRADLEY:  Approve.

 

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

 

         11   Resolution No. 09-025.

 

         12                 MR. MCNARY:  Item VI concerns licensure of a certain

 

         13   supplier, and Corporal Chris Jolly will handle that.

 

         14                 CORPORAL JOLLY:  Good morning, Mr. Chairman,

 

         15   Commissioners.

 

         16                 CHAIRMAN/COMMISSIONERS:  Good morning.

 

         17                 CORPORAL JOLLY:  On January 21st, 2004 NRT

 

         18   Technology Corporation applied for a Missouri gaming

 

         19   supplier's license.

 

         20                 Missouri State Highway Patrol investigators,

 

         21   along with Gaming Commission financial investigators,

 

         22   conducted background investigations on NRT and all

 

         23   associated key persons related to the company.

 

         24                 The investigation included comprehensive

 

         25   criminal and financial checks of both NRT and all

 

         26  


                                                                       12

 

 

 

 

          1   associated key persons.  The investigation included, but

 

          2   was not limited to, criminal, financial and general

 

          3   character inquiries of all key persons, as well as a

 

          4   comprehensive financial analysis of the company.

 

          5                 In October 2006 the original suitability

 

          6   investigation into the company's background was completed

 

          7   and a summary report was submitted to the Missouri Gaming

 

          8   Commission staff.

 

          9                 Within a month following the submission of

 

         10   the report, NRT proposed a transaction whereby the company

 

         11   was to be acquired by a third-party entity.  While

 

         12   negotiations for the possible acquisition proceeded, NRT

 

         13   continued to operate in Missouri under the authority of a

 

         14   temporary supplier's license.

 

         15                 On January 29, 2008 NRT filed for the

 

         16   renewal of their temporary supplier's license.  At the

 

         17   request of Missouri Gaming Commission staff an updated

 

         18   background investigation was reinitiated for the purpose

 

         19   of reevaluating the company's suitability for full

 

         20   licensure.

 

         21                 On June 19, 2008 NRT sent notice to Missouri

 

         22   Gaming Commission staff indicating that the aforementioned

 

         23   acquisition agreement had been terminated.

 

         24                 Since that time investigators have submitted

 

         25   two additional reports, the most recent being the

 

         26  

 


                                                                       13

 

 

 

 

          1   inclusive final summary report completed in March 2009.

 

          2   The specific details related to the investigative findings

 

          3   are contained within the comprehensive summary reports in

 

          4   your possession.

 

          5                 And if you have any questions, I'd be happy

 

          6   to answer those.

 

          7                 CHAIRMAN SHULL:  Any questions?

 

          8                 MR. MCNARY:  Staff recommends licensure of

 

          9   NRT Technology.

 

         10                 CHAIRMAN SHULL:  Is there a motion?

 

         11                 COMMISSIONER HAIS:  Mr. Chairman, I would

 

         12   move the adoption of Commission Resolution 09-026.

 

         13                 COMMISSIONER JONES:  Second.

 

         14                 CHAIRMAN SHULL:  A motion is made and been

 

         15   seconded.

 

         16                 Is there further discussion?

 

         17                 Call the roll, please.

 

         18                 MS. FRANKS:  Chairman Shull.

 

         19                 CHAIRMAN SHULL:  Approve.

 

         20                 MS. FRANKS:  Commissioner Jones.

 

         21                 COMMISSIONER JONES:  Approve.

 

         22                 MS. FRANKS:  Commissioner Hais.

 

         23                 COMMISSIONER HAIS:  Approve.

 

         24                 MS. FRANKS:  Commissioner Plunkett.

 

         25                 COMMISSIONER PLUNKETT:  Approve.

 

         26  

 

                                                                       14

 

 

 

 

          1                 MS. FRANKS:  Commissioner Bradley.

 

          2                 COMMISSIONER BRADLEY:  Approve.

 

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

 

          4   Resolution No. 09-026.

 

          5                 MR. MCNARY:  Item VII concerns licensure of

 

          6   certain Level I/key applicants.  Lieutenant Scism will

 

          7   handle that.

 

          8                 LIEUTENANT SCISM:  Good morning again.

 

          9                 CHAIRMAN/COMMISSIONERS:  Good morning.

 

         10                 LIEUTENANT SCISM:  If you'll note there are

 

         11   two separate resolutions.  The first group will be the

 

         12   cluster of applicants associated with NRT and then the

 

         13   next group will be the remainder of the applicants.

 

         14                 So I'll read the NRT folks, I'll pause and

 

         15   you-all can vote, and then I'll get into the next ones.

 

         16                 Missouri State Highway Patrol investigators,

 

         17   along with Gaming Commission financial investigators,

 

         18   conduct background investigations on multiple key person

 

         19   and Level I applicants.

 

         20                 The investigations included, but were not

 

         21   limited to, criminal, financial and general character

 

         22   inquiries which were made in the jurisdictions where the

 

         23   applicants lived, worked and frequented.

 

         24                 The following individuals are being

 

         25   presented for your consideration.  And this group is

 

         26  

 

                                                                       15

 

 

 

 

          1   associated with NRT Technology.  John A. Dominelli,

 

          2   President and CEO; Raymond N. Deffner, Vice-President of

 

          3   Compliance; Raffaele S. Lombardi, Chief Information

 

          4   Officer; Robert G. Lindsay, Vice-President of Operations;

 

          5   and James E. Grundy, Chief Financial Officer.

 

          6                 MR. MCNARY:  Staff recommends licensure of

 

          7   these key applicants.

 

          8                 CHAIRMAN SHULL:  Are there any questions for

 

          9   Lieutenant Scism?

 

         10                 Is there a motion?

 

         11                 COMMISSIONER PLUNKETT:  Make a motion we

 

         12   approve Commission Resolution No. 09-027.

 

         13                 COMMISSIONER JONES:  Second.

 

         14                 CHAIRMAN SHULL:  A motion is made and

 

         15   seconded.

 

         16                 Is there further discussion?

 

         17                 Hearing none, call the roll, please.

 

         18                 MS. FRANKS:  Chairman Shull.

 

         19                 CHAIRMAN SHULL:  Approve.

 

         20                 MS. FRANKS:  Commissioner Jones.

 

         21                 COMMISSIONER JONES:  Approve.

 

         22                 MS. FRANKS:  Commissioner Hais.

 

         23                 COMMISSIONER HAIS:  Approve.

 

         24                 MS. FRANKS:  Commissioner Plunkett.

 

         25                 COMMISSIONER PLUNKETT:  Approve.

 

         26  

 

                                                                       16

 

 

 

 

          1                 MS. FRANKS:  Commissioner Bradley.

 

          2                 COMMISSIONER BRADLEY:  Approve.

 

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

 

          4   Resolution No. 09-027.

 

          5                 LIEUTENANT SCISM:  The next group of

 

          6   applicants under the following resolution include

 

          7   Timothy P. Borman, Information Technology Manager with

 

          8   Harrah's - Maryland Heights; Mary J. Britsch, Senior

 

          9   Director - Internal Audit for Isle of Capri Casinos,

 

         10   Incorporated; Virginia M. McDowell, President and Chief

 

         11   Operating Officer of Isle of Capri Casinos, Incorporated;

 

         12   and finally Richard D. Weber, Vice-President of Accounting

 

         13   of Isle of Capri Casinos, Incorporated.

 

         14                 The results of those investigations were

 

         15   also provided to the Commission staff for their review,

 

         16   and you have the summary report before you.

 

         17                 MR. MCNARY:  Staff recommends licensure.

 

         18                 CHAIRMAN SHULL:  Are there any questions?

 

         19                 COMMISSIONER HAIS:  Move the adoption of

 

         20   Commission Resolution 09-028, Mr. Chairman.

 

         21                 COMMISSIONER BRADLEY:  Second.

 

         22                 CHAIRMAN SHULL:  A motion is made and

 

         23   seconded.

 

         24                 Is there further discussion?

 

         25                 Hearing none, call the roll, please.

 

         26  

 

                                                                       17

 

 

 

 

          1                 MS. FRANKS:  Chairman Shull.

 

          2                 CHAIRMAN SHULL:  Approve.

 

          3                 MS. FRANKS:  Commissioner Jones.

 

          4                 COMMISSIONER JONES:  Approve.

 

          5                 MS. FRANKS:  Commissioner Hais.

 

          6                 COMMISSIONER HAIS:  Approve.

 

          7                 MS. FRANKS:  Commissioner Plunkett.

 

          8                 COMMISSIONER PLUNKETT:  Approve.

 

          9                 MS. FRANKS:  Commissioner Bradley.

 

         10                 COMMISSIONER BRADLEY:  Approve.

 

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

 

         12   Resolution No. 09-028.

 

         13                 MR. MCNARY:  Item VIII, General Counsel

 

         14   Chris Hinckley will address a change of control.

 

         15                 MR. HINCKLEY:  I'm sorry.  Just one second.

 

         16                 I direct your attention to Tab I, Commission

 

         17   Resolution No. 09-029.  This has to do with the change of

 

         18   control of Atronic Americas, LLC.

 

         19                 Atronic Americas has been granted a

 

         20   supplier's license to supply gambling equipment which

 

         21   supplies the Class A and B licensees within the State of

 

         22   Missouri.

 

         23                 And Atronic is a wholly owned subsidiary of

 

         24   its parent company, GTECH Corporation, which is the holder

 

         25   of a key person business entity license, and GTECH is a

 

         26  

 

                                                                       18

 

 

 

 

          1   wholly owned subsidiary of its parent company,

 

          2   Lottomatica.

 

          3                 GTECH has entered into an agreement with

 

          4   Lottomatica in which Atronic is to be acquired by and

 

          5   become a wholly owned subsidiary of Lottomatica in a share

 

          6   purchase agreement, and a consummation of which will

 

          7   effect a change of control of Atronic pursuant to our

 

          8   Gambling Act and Regulations.

 

          9                 Atronic, through GTECH, has petitioned the

 

         10   Missouri Gaming Commission for the approval of the

 

         11   acquisition of Atronic by Lottomatica.

 

         12                 CHAIRMAN SHULL:  Do you have any questions

 

         13   for Mr. Hinckley?

 

         14                 MR. MCNARY:  Staff recommends approval.

 

         15                 CHAIRMAN SHULL:  Is there a motion to

 

         16   approve?

 

         17                 COMMISSIONER JONES:  Move to approve

 

         18   Resolution No. 09-029.

 

         19                 COMMISSIONER BRADLEY:  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:  Approve.

 

         26  

 

                                                                            19

 

 

 

 

          1                 MS. FRANKS:  Commissioner Jones.

 

          2                 COMMISSIONER JONES:  Approve.

 

          3                 MS. FRANKS:  Commissioner Hais.

 

          4                 COMMISSIONER HAIS:  Approve.

 

          5                 MS. FRANKS:  Commissioner Plunkett.

 

          6                 COMMISSIONER PLUNKETT:  Approve.

 

          7                 MS. FRANKS:  Commissioner Bradley.

 

          8                 COMMISSIONER BRADLEY:  Approve.

 

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

 

         10   Resolution No. 09-029.

 

         11                 MR. HINCKLEY:  I now direct your attention

 

         12   to Tab J and Commission Resolution 09-030 regarding change

 

         13   and control of Spielo Manufacturing, ULC.

 

         14                 Spielo Manufacturing has been granted a

 

         15   supplier's license to supply gambling equipment or

 

         16   supplies to Class A and B licensees within Missouri.

 

         17                 Spielo is a wholly owned subsidiary of its

 

         18   parent company, GTECH, the holder of a Commission issued

 

         19   key person business entity license, and GTECH is a wholly

 

         20   owned subsidiary of its parent company, Lottomatica, which

 

         21   is also a holder of a Commission issued key person

 

         22   business entity license.

 

         23                 GTECH has entered into an agreement with

 

         24   Lottomatica in which Spielo is to be acquired by and

 

         25   become a wholly owned subsidiary of Lottomatica in a share

 

         26  

 

                                                                       20

 

 

 

 

          1   purchase transaction, the consummation of which will

 

          2   effect the change and control of Spielo pursuant to our

 

          3   Gambling Act and Regulations.

 

          4                 And Spielo, through GTECH, has petitioned

 

          5   the Gaming Commission for approval of the acquisition of

 

          6   Spielo by Lottomatica.

 

          7                 CHAIRMAN SHULL:  Are there any questions for

 

          8   Mr. Hinckley?

 

          9                 MR. HINCKLEY:  This was rather a simpler --

 

         10   they were all licensed entities, and it was just a switch

 

         11   in the makeup from these two companies, being their

 

         12   ownership had switched to another licensed entity.

 

         13                 So there was some change of control;

 

         14   however, it was from a licensed entity to another licensed

 

         15   entity.

 

         16                 MR. MCNARY:  Staff recommends approval.

 

         17                 CHAIRMAN SHULL:  Are there any further

 

         18   questions or is there a motion?

 

         19                 COMMISSIONER BRADLEY:  A motion to approve

 

         20   Commission Resolution No. 09-030.

 

         21                 COMMISSIONER HAIS:  Second.

 

         22                 CHAIRMAN SHULL:  A motion is made and

 

         23   seconded.

 

         24                 Is there further discussion?

 

         25                 Hearing none, call the roll.

 

         26  

 

                                                                       21

 

 

 

 

          1                 MS. FRANKS:  Chairman Shull.

 

          2                 CHAIRMAN SHULL:  Approve.

 

          3                 MS. FRANKS:  Commissioner Jones.

 

          4                 COMMISSIONER JONES:  Approve.

 

          5                 MS. FRANKS:  Commissioner Hais.

 

          6                 COMMISSIONER HAIS:  Approve.

 

          7                 MS. FRANKS:  Commissioner Plunkett.

 

          8                 COMMISSIONER PLUNKETT:  Approve.

 

          9                 MS. FRANKS:  Commissioner Bradley.

 

         10                 COMMISSIONER BRADLEY:  Approve.

 

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

 

         12   Resolution No. 09-030.

 

         13                 MR. MCNARY:  Item IX on the agenda is a

 

         14   presentation, a brief one, I would suppose, on the River

 

         15   City Casino Project by the admirable Jerry Riffel.

 

         16                 MR. RIFFEL:  Mr. Chairman, respectfully

 

         17   stated, my reputation precedes me.

 

         18                 All of you have a written report on the

 

         19   update on the River City Casino project.  At the top

 

         20   you'll see Pinnacle Entertainment and then it says River

 

         21   City Casino.

 

         22                 I'll talk about two different projects.  The

 

         23   first is road access, which is a large project, the

 

         24   $21 million project.  As you know, it connects the

 

         25   facilities to Interstate 55.

 

         26  

 

                                                                       22

 

 

 

 

          1                 Beginning with Interstate 55, Phase I goes

 

          2   from Interstate 55 to Lemay Ferry Road.  Then there is a

 

          3   second phase which goes from Lemay Ferry Road to Broadway.

 

          4   And then, finally, from Broadway into the site.  So in its

 

          5   entirety I believe it's a little over a mile.

 

          6                 The Phase I, if you'll look at page 1 of the

 

          7   report, the Gravois Creek bridge is shown.  The only

 

          8   change over last time, we still are going to reopen that

 

          9   road, meaning it's going to be completed in late May.

 

         10                 We did have some flooding problems.  The

 

         11   Mississippi was very high.  When that happens, water backs

 

         12   up the Des Peres, which is a drainage channel, and because

 

         13   of that, that slowed us down.

 

         14                 So the asphalting was delayed from

 

         15   April 15th to April 27th.  So it's just starting.  But

 

         16   based on conversations with Bob Herr, who is in charge of

 

         17   that, yesterday, we still think that's going to be on time

 

         18   and it will be open to the public in May.

 

         19                 In Phase II you see the -- on page 2 of your

 

         20   report, you'll see the quite large Kayser bridge, which is

 

         21   on schedule, and Phase II is the same situation.

 

         22                 The asphalting will begin on the 27th

 

         23   instead of on the 15th, and it will still be completed in

 

         24   late May, and then you see the quite complex intersection

 

         25   at Lemay Ferry, which in the city is Alabama and in the

 

         26  

 

                                                                       23

 

 

 

 

          1   county is Lemay Ferry, and that intersection is virtually

 

          2   complete, which is a major deal and a major expense on the

 

          3   project.

 

          4                 Then, finally, if you go to page 3, you'll

 

          5   see the Broadway intersection, which if you're familiar

 

          6   with the old NEMA mapping site, that's just to the left

 

          7   down, where that is.  That's been cleared and the

 

          8   environmental remediation is completed and the roadway is

 

          9   going through that site at this point.

 

         10                 And you'll see at the bottom the Union

 

         11   Pacific railroad bridge, which is getting very near

 

         12   completion.

 

         13                 And you'll remember that what we're going to

 

         14   begin doing in May is using this last phase from Broadway

 

         15   into the site for construction traffic.  That will begin

 

         16   in May.

 

         17                 And we're intentionally not going to

 

         18   complete that road for public safety reasons.  It will be

 

         19   construction only until the -- until the project is pretty

 

         20   close to complete.

 

         21                 Then finally on pages 4 and then the

 

         22   pictures following you'll see the site itself.

 

         23                 Last time we were 90 percent complete.

 

         24   This time on wall panels and the roof we are 95 percent

 

         25   complete.  The interior wall framing is underway on the

 

         26  

 

                                                                       24

 

 

 

 

          1   south, north and back of the house areas, and the roof top

 

          2   HVAC air handling is set with start up on air

 

          3   conditioning, ready to go.

 

          4                 Then also, very importantly, yesterday we

 

          5   began filling the basin with water.  So that took place

 

          6   all day yesterday, and then they'll keep filling the basin

 

          7   with water today, and then they'll complete it tomorrow,

 

          8   the 23rd.  The launch, or lift, of the floor, will occur

 

          9   sometime today or sometime tomorrow.

 

         10                 So we're on schedule.  We still should be

 

         11   virtually completed with the construction and ready to go,

 

         12   subject to licensing, in January of 2010 and open in the

 

         13   first quarter of 2010.

 

         14                 So everything is going very well.  We're

 

         15   meeting quite often with Commission staff.  The teams are

 

         16   working together.  They're starting to go into the process

 

         17   of licensing and the different steps we'll go through,

 

         18   which hopefully will be completed in the first quarter of

 

         19   ten.

 

         20                 And I understand from your staff that

 

         21   hopefully you're planning on seeing the River City site in

 

         22   person the day before your May meeting.

 

         23                 So that's my report, and I'd answer any

 

         24   questions you might have.

 

         25                 CHAIRMAN SHULL:  Thank you.

 

         26  

 

                                                                       25

 

 

 

 

          1                 Are there any questions?

 

          2                 It looks like a terrific report.

 

          3                 MR. RIFFEL:  Thank you.

 

          4                 MR. MCNARY:  One point, Mr. Riffel.  It's

 

          5   not Gravois.  It's Gravois --

 

          6                 MR. RIFFEL:  It is?

 

          7                 MR. MCNARY:  -- Gravois Creek, for you

 

          8   Kansas City folks.

 

          9                 MR. RIFFEL:  Mr. Chairman, because of your

 

         10   history I will defer to you on that pronunciation and I

 

         11   stand corrected.  I'm sorry.  Mr. Herr, I might add, says

 

         12   Gravois.

 

         13                 MR. MCNARY:  He's wrong too.

 

         14                 MR. RIFFEL:  He's wrong.

 

         15                 Thank you very much.

 

         16                 MR. MCNARY:  Let me make, Mr. Chairman, one

 

         17   point, and Jerry alluded to this.

 

         18                 We are taking a look at River City on

 

         19   Tuesday before the next meeting.  I don't think there is a

 

         20   reason for Mr. Riffel to have to report at the Wednesday

 

         21   meeting, unless you feel there is.

 

         22                 CHAIRMAN SHULL:  Approved.

 

         23                 So the next report will be in June?

 

         24                 MR. MCNARY:  Yes.

 

         25                 CHAIRMAN SHULL:  Thank you very much.

 

         26  

 

                                                                       26

 

 

 

 

          1                 MR. RIFFEL:  Thank you very much.

 

          2                 MR. MCNARY:  Mr. Chairman, this is under the

 

          3   heading of new business, and it's somewhat nostalgic for

 

          4   me to make this recognition.

 

          5                 Sam Hais, his term has expired, and he's

 

          6   here for his last meeting, and we want to present this

 

          7   plaque to him.

 

          8                 It's nostalgic for me because on or about

 

          9   1970 I hired Sam as an assistant prosecuting attorney.  I

 

         10   taught him the rules of evidence and I taught him how to

 

         11   make a final argument and I taught him justice with a

 

         12   heart.  He learned all those things and then went on to be

 

         13   a distinguished judge for many years and had a

 

         14   distinguished career on the bench.

 

         15                 With that background he's then been

 

         16   appointed and served for three years with the Missouri

 

         17   Gaming Commission, and I think you all join me in knowing

 

         18   what he contributed.  Because of his legal and judicial

 

         19   background he's been a valuable resource for this

 

         20   Commission.

 

         21                 We hate to lose him.  He's been an effective

 

         22   regulator and has stuck to the rules that we are bound by.

 

         23   We'll miss him.  He has said that he's not going to be

 

         24   gone.  His spirit will always be here.  And I think that

 

         25   he will.

 

         26  

 

                                                                       27

 

 

 

 

          1                 He has left a legacy that has helped shape

 

          2   our deliberations and the tone of this Commission.  And so

 

          3   I want to congratulate him on a job well done and good

 

          4   luck to you in the future.

 

          5                 COMMISSIONER HAIS:  Thank you very much.

 

          6                 MR. MCNARY:  Thank you.

 

          7                 COMMISSIONER HAIS:  Thank you, Gene, and

 

          8   fellow Commissioners and staff, members of the gaming

 

          9   industry that are present and anyone else who is present.

 

         10                 It's been three -- the three years has gone

 

         11   by very quickly, as time has a tendency to do, and I --

 

         12   and my law partners are looking forward to my getting back

 

         13   to business as usual.

 

         14                 But I do feel very nostalgic, as Gene

 

         15   mentioned also.  A man is lucky if he can have a career

 

         16   where he's associated with people who are exemplary and

 

         17   worthy of emulation once, but to have that happen twice in

 

         18   a career, as it has with my being fortunate enough to work

 

         19   with Gene McNary, is doubly fortunate.

 

         20                 And so I want to express my great gratitude

 

         21   for that opportunity, and it's been a great experience for

 

         22   three years, a learning experience and also it's just been

 

         23   a great lot of fun, and for that I thank all of you.

 

         24                 You've all been more than kind and generous

 

         25   of spirit, easy to work with, very congenial and

 

         26  

 

                                                                       28

 

 

 

 

          1   collegial, and I can't think of a better group to work

 

          2   with.

 

          3                 I know that in the future this Commission,

 

          4   regardless of the comings and goings of people, will be

 

          5   guided by your -- the precedents that you've all set in

 

          6   the policy you've made and the way -- the procedure that

 

          7   you've instituted, and particularly under the guidance of

 

          8   Executive Director McNary most recently.

 

          9                 And so for all of that and more I thank you

 

         10   all and wish you the very, very best.

 

         11                 CHAIRMAN SHULL:  Commissioner Hais, I would

 

         12   also like to express my appreciation for the many

 

         13   contributions that you've made during your term, and it

 

         14   has been an honor to serve with you.

 

         15                 Would any of the other commissioners care to

 

         16   speak?

 

         17                 COMMISSIONER JONES:  Commissioner Hais, I'd

 

         18   like to echo the same sentiment from the Chairman.  It's

 

         19   been a pleasure to serve with you, a great friend,

 

         20   hopefully continue our friendship and I'll see you around

 

         21   at some of the restaurants in St. Louis.

 

         22                 COMMISSIONER HAIS:  Thank you.

 

         23                 COMMISSIONER PLUNKETT:  Sam, I just wanted

 

         24   to say that it's been a learning experience, particularly

 

         25   some of the opinions that you've had on the actions of the

 

         26  

 

                                                                       29

 

 

 

 

          1   Commission, and I appreciate the knowledge I've gained

 

          2   from my association with you.  Wish you good luck.

 

          3                 COMMISSIONER HAIS:  Thank you, Larry.

 

          4                 COMMISSIONER BRADLEY:  I would agree with

 

          5   that, that I think we've all learned, has been wonderful

 

          6   discussion back and forth and figuring out why we're here

 

          7   and the citizens we serve and this and that, and you've

 

          8   done a great job.  And I'm still --

 

          9                 COMMISSIONER HAIS:  I'm going to will you my

 

         10   candy.  You stole my thunder.

 

         11                 COMMISSIONER BRADLEY:  Thank you.

 

         12                 I'll share.  You aren't gone yet.

 

         13                 CHAIRMAN SHULL:  The next item is the

 

         14   old business.

 

         15                 MR. MCNARY:  No old business.

 

         16                 CHAIRMAN SHULL:  Is there a motion to close

 

         17   this meeting then?

 

         18                 COMMISSIONER JONES:  A motion to close the

 

         19   meeting under Sections 313.847 and 610.021(1) and (14).

 

         20                 CHAIRMAN SHULL:  A motion has been made.

 

         21                 Is there a second?

 

         22                 COMMISSIONER PLUNKETT:  Second.

 

         23                 CHAIRMAN SHULL:  A second.

 

         24                 Is there further discussion?

 

         25                 Hearing none, call the roll, please.

 

         26  

 

                                                                       30

 

 

 

 

          1                 MS. FRANKS:  Chairman Shull.

 

          2                 CHAIRMAN SHULL:  Approve.

 

          3                 MS. FRANKS:  Commissioner Jones.

 

          4                 COMMISSIONER JONES:  Approve.

 

          5                 MS. FRANKS:  Commissioner Hais.

 

          6                 COMMISSIONER HAIS:  Approve.

 

          7                 MS. FRANKS:  Commissioner Plunkett.

 

          8                 COMMISSIONER PLUNKETT:  Approve.

 

          9                 MS. FRANKS:  Commissioner Bradley.

 

         10                 COMMISSIONER BRADLEY:   Approve.

 

         11  

 

         12  

 

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                                                                       31

 

 

 

 

          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  

 

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