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4 BEFORE THE MISSOURI GAMING COMMISSION
STATE OF MISSOURI
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Meeting
9 June 24, 2009
9:00 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 5:2
4 II. Consideration of Minutes
A. May 26, 2009 5:21
5 B. May 27, 2009
6 III. Consideration of Hearing Officer
Recommendations
7 C. Vonzella Lee
1. Resolution No. 09-035 7:9
8 D. Chad H. Patterson
1. Resolution No. 09-036 8:25
9 E. Angela J. McDaniel
1. Resolution No. 09-037 15:24
10 F. Michael J. Nelson
1. Resolution No. 09-038 18:4
11 G. Stephen Morrison
1. Resolution No. 09-039 20:1
12 H. Selena Smith
1. Resolution No. 09-040 21:21
13 I. Adam Jenkins
1. Resolution No. 09-041 24:1
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IV. Consideration of Settlement Agreement
15 J. Missouri Gaming Company
1. Resolution No. 09-042 26:11
16 K. Isle of Capri Casinos, Inc.
1. Resolution No. 09-043 28:12
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V. Consideration of Relicensure of
18 Certain Suppliers
L. Paltronics, Incorporated
19 1. Resolution No. 09-044 29:22
20 VI. Consideration of Extension of Licensure
M. Tech Art Manufacturing, Inc.
21 1. Resolution No. 09-045 31:6
22 VII. Consideration of Licensure of Certain
Level I/Key Applicants
23 N. Resolution No. 09-046 33:9
24 VIII. Consideration of Proposed Amendment
25 O. 11 CSR 45-5.100 - Chip Specifications 35:7
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1 AGENDA (CONT'D)
2 page
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4 IX. Report on River City Casino Project 37:18
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6 X. Consideration of President Casino Issues 39:22
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8 XI. New Business 40:8
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10 XII. Old Business 40:24
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12 XIII. Motion to Close Meeting under
13 Sections 313.847 and 610.021(1) and (14) 40:25
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1 BEFORE THE MISSOURI GAMING COMMISSION
2 STATE OF MISSOURI
3
4
5 Meeting
6 June 24, 2009
7 9:00 a.m.
8 Central Office
9 3417 Knipp Drive
10 Jefferson City, Missouri
11
12 COMMISSIONERS PRESENT:
13 James L. Mathewson, Chairman
14 Noel J. Shull
15 Darryl T. Jones
16 Suzanne Bradley
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19 REPORTED BY:
20 Patricia A. Stewart
21 RMR, RPR, CCR 401
22 3432 West Truman Boulevard, Suite 207
23 Jefferson City, Missouri 65109
24 573-636-7551
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5
1 P R O C E E D I N G S
2 CHAIRMAN MATHEWSON: Good morning. Nice to
3 have everyone here. A nice warm morning outside but more
4 pleasant than what it was yesterday afternoon.
5 So we're happy to have all of you here this
6 morning, and we will call this meeting to order.
7 Madam Secretary, will you call the roll,
8 please.
9 MS. FRANKS: Chairman Mathewson.
10 CHAIRMAN MATHEWSON: Here.
11 MS. FRANKS: Commissioner Shull.
12 COMMISSIONER SHULL: Here.
13 MS. FRANKS: Commissioner Jones.
14 COMMISSIONER JONES: Present.
15 MS. FRANKS: Commissioner Plunkett.
16 (No response.)
17 MS. FRANKS: Commissioner Bradley.
18 COMMISSIONER BRADLEY: Present.
19 CHAIRMAN MATHEWSON: A quorum being present,
20 we will move forward.
21 The first order of business would be
22 consideration of the minutes for the May 26 meeting.
23 Do you want those in one motion for the 26th
24 and 27th or do you want them in separate motions?
25 MS. FRANKS: We can do whatever you want to
6
1 do.
2 CHAIRMAN MATHEWSON: Personally, since the
3 two are tied together, I just as soon we make one motion
4 on them, if that's okay.
5 MS. FRANKS: Sure.
6 CHAIRMAN MATHEWSON: Okay. Chair would
7 accept the motion to accept the minutes for the May 26
8 meeting and May 27 meeting in one motion.
9 COMMISSIONER SHULL: So moved.
10 COMMISSIONER JONES: Second.
11 CHAIRMAN MATHEWSON: Any discussion?
12 Call the roll, please.
13 MS. FRANKS: Chairman Mathewson.
14 CHAIRMAN MATHEWSON: Yes.
15 MS. FRANKS: Commissioner Shull.
16 COMMISSIONER SHULL: Approve.
17 MS. FRANKS: Commissioner Jones.
18 COMMISSIONER JONES: Approve.
19 MS. FRANKS: Commissioner Bradley.
20 COMMISSIONER BRADLEY: Approve.
21 MS. FRANKS: By your vote you've adopted the
22 minutes of the May 26, 2009 meeting and the May 27, 2009
23 meeting.
24 CHAIRMAN MATHEWSON: Okay. Thank you.
25 MR. MCNARY: Mr. Chairman, Item III on the
7
1 agenda concerns hearing officer recommendations. And the
2 first two are by a new hearing officer, a well-known radio
3 host who does a jazz show and also dabbles occasionally in
4 the law, Mr. Don Wolff.
5 CHAIRMAN MATHEWSON: Good morning again,
6 Don.
7 MR. WOLFF: Good morning, Senator, and
8 members of the Commission.
9 I have two matters to bring before the
10 Commission, recommendations, the first being Vonzella Lee,
11 who is basically charged with having stolen money from her
12 place of employment.
13 And we provided her with notice. She failed
14 to appear, and I supported the recommendation of the
15 Gaming Commission to revoke her license.
16 Any questions on the matter, I'd be happy to
17 answer them. And in short, you have the authority to
18 revoke her license based on those charges and her failure
19 to appear at the hearing having been given adequate
20 notice.
21 CHAIRMAN MATHEWSON: Any questions by
22 members of the Commission?
23 Chair would accept the motion on the
24 recommendation of the hearing officer.
25 COMMISSIONER BRADLEY: May I ask, does she
8
1 appear? Is she here today? I know she didn't appear for
2 the hearing but did she --
3 MR. WOLFF: I don't know if she's here
4 today. She didn't show up for our hearing, but we can
5 certainly see if she's here, if she's present.
6 CHAIRMAN MATHEWSON: I should have inquired.
7 Is Vonzella Lee present in the room?
8 I guess not.
9 Any other questions? If not --
10 COMMISSIONER BRADLEY: I'll move to approve
11 Commission Resolution No. 09-035.
12 COMMISSIONER JONES: Second.
13 CHAIRMAN MATHEWSON: Any discussion?
14 Call the roll, please.
15 MS. FRANKS: Chairman Mathewson.
16 CHAIRMAN MATHEWSON: Aye.
17 MS. FRANKS: Commissioner Shull.
18 COMMISSIONER SHULL: Approve.
19 MS. FRANKS: Commissioner Jones.
20 COMMISSIONER JONES: Approve.
21 MS. FRANKS: Commissioner Bradley.
22 COMMISSIONER BRADLEY: Approve.
23 CHAIRMAN MATHEWSON: By your vote you've
24 adopted Resolution No. 09-035.
25 MR. WOLFF: The next matter, members of the
9
1 Commission, is Chad Patterson, who is present this
2 morning, along with his parents.
3 Mr. Patterson was charged with failing to
4 disclose both a number of arrests and a conviction of a
5 felony in his application.
6 At the hearing what was determined is that
7 on two separate occasions Mr. Patterson was arrested for a
8 total of five charges, all of which were dismissed or
9 nolle prosed by the prosecutor, with the exception of a
10 property damage first-degree.
11 For that charge which was not dismissed he
12 entered a plea of guilty and received a suspended
13 imposition of sentence, which as you know under Missouri
14 law is not a conviction. But the application clearly
15 calls for reporting arrests, as well as convictions.
16 I found that the allegation that he failed
17 to report a conviction was not based upon Missouri law,
18 and I found that he did not commit that offense. I did
19 find, however, that there was sufficient evidence to show
20 that he failed to support the -- failed to allege in his
21 petition the arrests for the charges which were
22 subsequently dismissed, as well as the arrests of the
23 charge for which he entered a plea of guilty.
24 These, as you probably know better than me,
25 are rather difficult cases because technically there is no
10
1 question but there was here a failure to report arrests
2 and a plea as required.
3 On the other hand, Mr. Patterson's case, he
4 subsequently went to school for an EMT license and record
5 checks were conducted. Those record checks came back
6 negative. It's likely that those record checks called for
7 convictions and not arrests, and so he suspected that he
8 need not report these arrests since they did not result in
9 charges. They were thrown out, and the plea was a
10 suspended imposition of sentence.
11 And we lawyers in Missouri, as well as
12 judges, like to inform clients that when they get a
13 suspended imposition of sentence, that's not a conviction
14 and they need not report it.
15 Having said all that, when you apply for a
16 license with the Gaming Commission, you are required to
17 report more than just convictions. You are required to
18 report arrests. He failed to do that in this case, as
19 well as a plea.
20 This is a young man who enjoys his job and
21 who did not commit this violation knowingly or
22 intentionally in the sense that he believed he was not
23 required to report these offenses.
24 I found there was sufficient evidence before
25 the Commission hearing to recommend to you that the
11
1 Missouri Gaming's commission of his loss of license be
2 upheld and that's what I did. You have more discretion in
3 that matter than I do, and so I leave those matters
4 entirely up to you.
5 CHAIRMAN MATHEWSON: Any questions of Don on
6 this?
7 Thank you, sir.
8 Is Chad here?
9 MR. WOLFF: Yes, he is.
10 CHAIRMAN MATHEWSON: Would you like to come
11 to that microphone right there and would you like to make
12 a comment, sir?
13 MR. PATTERSON: I really have nothing
14 further to add than what Mr. Wolff said. I was aware of
15 what had happened but, like he said, I didn't knowingly
16 withhold that.
17 My understanding of what my lawyer had
18 informed me was wrong at the time, which I know is not an
19 excuse for failing to disclose the information, but, like
20 Mr. Wolff said, I thoroughly love my job. I very much
21 enjoy what I do. I love the opportunity it gives me and
22 really just felt like I needed to do what I could to try
23 and keep that job.
24 So I have nothing further to add than that,
25 but thank you for your time.
12
1 CHAIRMAN MATHEWSON: Thank you very much.
2 Thank you for being here. I appreciate that. Thank you.
3 A motion?
4 COMMISSIONER BRADLEY: May I ask a question,
5 please?
6 CHAIRMAN MATHEWSON: Certainly.
7 COMMISSIONER BRADLEY: In this particular
8 situation -- I mean, these are always difficult situations
9 because it's the lack of disclosure, is what the problem
10 is, and it's not -- I mean, it's very difficult for us to
11 have to, but we have to follow the law.
12 And when I read the transcript that you had
13 of the hearing -- Mr. Woods. Right? Is it Wood or Woods?
14 MR. WOLFF: Wolff.
15 CHAIRMAN MATHEWSON: Don Wolff.
16 MR. WOLFF: Like the animal but with two Fs.
17 COMMISSIONER BRADLEY: Thank you, Mr. Wolff.
18 I did read the transcript, and in doing so,
19 you know, I know that you take the evidence and clearly
20 the investigators, the examiners, that go through the
21 forms, the applications with the applicant, and they seem
22 to do a very clear job of trying to explain, you know,
23 have you ever been detained, arrested. You know, whatever
24 it is, please, you must report it, you must report it, you
25 must report it.
13
1 So that's what makes these situations even
2 more difficult, when you have a nice, young man who comes
3 forward who has a good job and is doing well. We really
4 hate to have to do this.
5 So based on that premise, my question is,
6 sometimes I understand that there are just waiting times,
7 that even though this may or may not be denied today, the
8 license may be denied because of the nondisclosure, would
9 there be a waiting time? Would he ever be able to apply
10 again for a license?
11 So if you know that or if our general
12 counsel knows that.
13 MR. WOLFF: General counsel can better
14 answer it than me.
15 But since I asked him the same question that
16 you just asked me, the short answer is, yes, there are
17 allowances, that they have to recommend a shorter period
18 of time before reapplying. But why don't we let
19 Mr. Hinckley answer the question.
20 MR. HINCKLEY: On the discretionary denials
21 like this, there is a one-year wait until reapplication
22 time for reapplication.
23 CHAIRMAN MATHEWSON: May I follow up with
24 that?
25 And that one year starts when?
14
1 MR. HINCKLEY: On the date of nondisclosure.
2 CHAIRMAN MATHEWSON: Okay. In this case
3 that would be --
4 MR. HINCKLEY: The date that he submitted
5 his application.
6 CHAIRMAN MATHEWSON: Okay. The day he
7 submitted the application.
8 COMMISSIONER BRADLEY: Which is what day?
9 MR. HINCKLEY: On the application you can
10 see the dates of submission.
11 In the case of Mr. Patterson, it would be
12 12-23 of '08. On the disposition of each one of these,
13 our Commission will initial the form and put the date down
14 of which the clock begins, 12-23-08.
15 CHAIRMAN MATHEWSON: Okay.
16 MR. HINCKLEY: So 12-23-09 Mr. Patterson
17 becomes eligible to reapply.
18 CHAIRMAN MATHEWSON: Commissioner, do you
19 have further comments or questions on that?
20 COMMISSIONER BRADLEY: No. I needed to
21 know.
22 CHAIRMAN MATHEWSON: Thank you.
23 Is there a motion on the recommendation of
24 the hearing officer?
25 COMMISSIONER SHULL: I move for the approval
15
1 of Commission Resolution 09-036.
2 CHAIRMAN MATHEWSON: I have a motion.
3 Is there a second?
4 COMMISSIONER BRADLEY: Second.
5 CHAIRMAN MATHEWSON: Any further discussion?
6 Call the roll, please.
7 MS. FRANKS: Chairman Mathewson.
8 CHAIRMAN MATHEWSON: Aye.
9 MS. FRANKS: Commissioner Shull.
10 COMMISSIONER SHULL: Approve.
11 MS. FRANKS: Commissioner Jones.
12 COMMISSIONER JONES: Approve.
13 MS. FRANKS: Commissioner Bradley.
14 COMMISSIONER BRADLEY: Approve.
15 MS. FRANKS: By your vote you've adopted
16 Resolution 09-036.
17 CHAIRMAN MATHEWSON: Thank you.
18 Thank you, Don.
19 MR. WOLFF: Thank you, Senator.
20 MR. MCNARY: The next hearing officer
21 recommendations will be handled by Steve Stark.
22 MR. STARK: Good morning, Commissioners.
23 CHAIRMAN/COMMISSIONERS: Good morning.
24 MR. STARK: On your agenda, letter E, Angela
25 McDaniel.
16
1 Ms. McDaniel made application for a gaming
2 license to work in the gaming industry, and in her written
3 application, of course, is the question about past
4 criminal history, including arrests.
5 She did actually disclose the criminal
6 offense of passing a bad check. Further investigation by
7 the Commission revealed that that particular offense was
8 indeed committed in the year 2006, and the recommendation
9 of the gaming investigator was to deny license to
10 Ms. McDaniel.
11 And the basis for the denial is that the
12 Commission does have a regulation that speaks about a
13 five-year period proceeding the application in which any
14 criminal activity pertains to any type of gaming-related
15 offense or any offense related to an element, being theft,
16 fraud or dishonesty.
17 Missouri statute with regard to committing
18 the crime of passing a bad check includes the element of
19 theft and dishonesty as a part of that particular crime.
20 Ms. McDaniel was duly advised of the
21 hearing, date, time and place. She failed to show up.
22 The Commission's regulation says if you don't show up for
23 your own hearing, all of the allegations would be
24 considered an admission.
25 But evidence was taken, and I do find and
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1 make the recommendation that it was appropriate to deny
2 Ms. McDaniel a license for her past conviction of passing
3 a bad check within the past five years of her application.
4 My recommendation would be to uphold the
5 decision of the licensure.
6 CHAIRMAN MATHEWSON: Okay. Any questions of
7 Mr. Stark?
8 Is Angela McDaniel here?
9 I believe not.
10 I would accept the motion on the
11 recommendation of the hearing officer.
12 COMMISSIONER JONES: I move for the approval
13 of Resolution No. 09-037.
14 COMMISSIONER SHULL: Second.
15 CHAIRMAN MATHEWSON: Any discussion?
16 Call the roll, please.
17 MS. FRANKS: Chairman Mathewson.
18 CHAIRMAN MATHEWSON: Approve.
19 MS. FRANKS: Commissioner Shull.
20 COMMISSIONER SHULL: Approve.
21 MS. FRANKS: Commissioner Jones.
22 COMMISSIONER JONES: Approve.
23 MS. FRANKS: Commissioner Bradley.
24 COMMISSIONER BRADLEY: Approve.
25 MS. FRANKS: By your vote you've adopted
18
1 Resolution No. 09-037.
2 CHAIRMAN MATHEWSON: Thank you.
3 Mr. Stark.
4 MR. STARK: Your agenda item, letter F,
5 Michael Nelson.
6 Mr. Nelson made application for a gaming
7 license, and upon the application he did fail after
8 investigation by the Gaming Commission to disclose several
9 items related to his criminal record, arrests for passing
10 a bad check, a conviction for passing a bad check, were
11 the two, and a third one was arrest for third-degree
12 assault. Those three items were not disclosed on the
13 application. The gaming investigator recommended denial
14 of licensing.
15 At the hearing Mr. Nelson did indicate that
16 he basically had forgotten about those arrests and
17 admitted basically that he failed to disclose upon the
18 license application those particular items.
19 The application process gives plenty of
20 notice with regard to what is necessary to be disclosed.
21 Failure to disclose based on forgetting does not reach the
22 standard of proof that Mr. Nelson would have to have that
23 is clear and convincing evidence that the decision to deny
24 his license was wrong. Therefore, my recommendation is
25 that the denial of licensing to Mr. Nelson be upheld.
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1 CHAIRMAN MATHEWSON: Are there questions of
2 Mr. Stark?
3 Is Michael Nelson present?
4 I believe not.
5 Chair would accept the motion on the
6 recommendation of the hearing officer.
7 COMMISSIONER SHULL: I move approval of
8 Commission Resolution No. 09-038.
9 COMMISSIONER JONES: Second.
10 CHAIRMAN MATHEWSON: Call the roll, please.
11 MS. FRANKS: Chairman Mathewson.
12 CHAIRMAN MATHEWSON: Approve.
13 MS. FRANKS: Commissioner Shull.
14 COMMISSIONER SHULL: Approve.
15 MS. FRANKS: Commissioner Jones.
16 COMMISSIONER JONES: Approve.
17 MS. FRANKS: Commissioner Bradley.
18 COMMISSIONER BRADLEY: Approve.
19 MS. FRANKS: By your vote you've adopted
20 Resolution No. 09-038.
21 CHAIRMAN MATHEWSON: Thank you.
22 Mr. Stark, do you have others?
23 MR. STARK: Yes. I have three more,
24 Commissioner.
25 CHAIRMAN MATHEWSON: Please proceed.
20
1 MR. STARK: G, Stephen Morrison.
2 Again, this is an application process case
3 in which Mr. Morrison failed to disclose a criminal
4 history. The particular criminal record that he failed to
5 disclose was an arrest for distribution, delivery and
6 manufacture of a controlled substance and possession of
7 drug paraphernalia.
8 At the hearing Mr. Morrison did admit that
9 he failed to disclose this particular arrest record. He
10 said that he actually decided not to disclose it based on
11 the advice of his lawyer. His lawyer said that since the
12 case was dismissed, there were no charges filed and,
13 therefore, no record to disclose.
14 So based upon advice of his lawyer, I guess
15 at the time of the particular arrest, Mr. Nelson decided
16 not to disclose that particular event.
17 However, the application process does
18 clearly give examples and multiple opportunities to
19 understand what is being required of the application
20 process and, therefore, with that adequate notice and with
21 his admission that he failed to disclose and the
22 discretion that the Commission does have to deny license,
23 I would recommend that the denial be upheld.
24 CHAIRMAN MATHEWSON: Any questions on this
25 recommendation?
21
1 Is Mr. Stephen Morrison here?
2 Doesn't appear to be.
3 Chair would accept the motion to accept the
4 recommendation of the hearing officer on Stephen Morrison.
5 COMMISSIONER JONES: Move for the acceptance
6 of Resolution No. 09-039.
7 COMMISSIONER BRADLEY: Second.
8 CHAIRMAN MATHEWSON: Call the roll, please.
9 MS. FRANKS: Chairman Mathewson.
10 CHAIRMAN MATHEWSON: Approve.
11 MS. FRANKS: Commissioner Shull.
12 COMMISSIONER SHULL: Approve.
13 MS. FRANKS: Commissioner Jones.
14 COMMISSIONER JONES: Approve.
15 MS. FRANKS: Commissioner Bradley.
16 COMMISSIONER BRADLEY: Approve.
17 MS. FRANKS: By your vote you've adopted
18 Resolution No. 09-039.
19 CHAIRMAN MATHEWSON: Thank you.
20 Proceed, Mr. Stark.
21 MR. STARK: Our next case, letter H, is
22 Selena Smith.
23 Selena Smith originally on her application
24 did state that there was no criminal history. However,
25 with questioning by the investigator she did disclose a
22
1 criminal assault with the disposition of guilty, arrest
2 for assault with a plea of guilty.
3 The Commission's investigator did further
4 investigation, and in conjunction with that guilty plea of
5 assault was another part of that crime, a felony, with the
6 unlawful use of a weapon.
7 The statute provides that a license shall
8 not be granted if the applicant has pled guilty to or has
9 been convicted of a felony.
10 The evidence at the hearing clearly showed
11 that this was a felony that she was convicted of or pled
12 guilty to.
13 At the hearing she indicated that she did
14 not necessarily realize that it was a felony conviction.
15 In fact, she indicated that the knife, the unlawful
16 weapon, was in the possession of somebody else other than
17 herself.
18 Apparently the assault, the fight, involved
19 four persons. However, the criminal court found her -- or
20 found her guilty plea to be appropriate for a felony
21 conviction.
22 Also, there was another criminal matter that
23 she failed to disclose with regard to endangerment of a
24 minor child.
25 Based upon the felony conviction it was
23
1 appropriate to deny her a license. The statute seems to
2 be mandatory with regard to felony convictions and,
3 therefore, my recommendation is that Ms. Selena Smith not
4 receive a license.
5 CHAIRMAN MATHEWSON: Any questions of
6 Mr. Stark on Selena Smith?
7 Is Selena Smith present?
8 Doesn't appear to be.
9 Chair would accept the motion on the
10 recommendation of the hearing officer.
11 COMMISSIONER BRADLEY: Motion to approve
12 Commission Resolution No. 09-040.
13 COMMISSIONER JONES: Second.
14 CHAIRMAN MATHEWSON: Call the roll, please.
15 MS. FRANKS: Chairman Mathewson.
16 CHAIRMAN MATHEWSON: Approve.
17 MS. FRANKS: Commissioner Shull.
18 COMMISSIONER SHULL: Approve.
19 MS. FRANKS: Commissioner Jones.
20 COMMISSIONER JONES: Approve.
21 MS. FRANKS: Commissioner Bradley.
22 COMMISSIONER BRADLEY: Approve.
23 MS. FRANKS: By your vote you've adopted
24 Resolution No. 09-040.
25 CHAIRMAN MATHEWSON: Thank you.
24
1 MR. STARK: Our last case, letter I, Adam
2 Jenkins.
3 Mr. Jenkins made application for a gaming
4 license. On the application process he did reveal that
5 there was a bad check criminal offense. However, he
6 failed to disclose other arrests upon the application,
7 those arrests being three counts of issuing worthless
8 checks in Doniphan County, Kansas, and a second offense at
9 a different date for issuing a worthless check also in
10 Doniphan County, Kansas, and also at a later date another
11 third offense of issuing worthless checks in Atchison
12 County, Kansas.
13 In each of those he did plead -- let's see.
14 On two of those cases he pled no contest and was
15 convicted. The third case he actually pled guilty and was
16 convicted on two counts of issuing worthless checks.
17 Looking at the statute in Kansas with regard
18 to worthless checks, it does have as a part of its
19 elements of the crime being intent to defraud.
20 The Commission has a regulation that states
21 that any conviction, guilty plea in the last five years --
22 or five years preceding the application related to any
23 crime of fraud or dishonesty would preclude issuing a
24 license by the Commission.
25 Given those crimes that Mr. Jenkins was
25
1 convicted of, and additionally his failure to disclose
2 those crimes, provide adequate ground for the Commission
3 to deny the license as the investigator recommends, and
4 that too would be my recommendation.
5 CHAIRMAN MATHEWSON: Any questions of
6 Mr. Stark as it relates to Adam Jenkins?
7 Is Mr. Jenkins here today?
8 Doesn't appear to be.
9 Chair would accept the motion on the
10 recommendation of the hearing officer.
11 COMMISSIONER SHULL: Move approval of
12 Commission Resolution 09-041.
13 COMMISSIONER JONES: Second.
14 CHAIRMAN MATHEWSON: Any further discussion?
15 Call the roll, please.
16 MS. FRANKS: Chairman Mathewson.
17 CHAIRMAN MATHEWSON: Approve.
18 MS. FRANKS: Commissioner Shull.
19 COMMISSIONER SHULL: Approve.
20 MS. FRANKS: Commissioner Jones.
21 COMMISSIONER JONES: Approve.
22 MS. FRANKS: Commissioner Bradley.
23 COMMISSIONER BRADLEY: Approve.
24 MS. FRANKS: By your vote you've adopted
25 Resolution No. 09-041.
26
1 MR. STARK: Commissioners, that's all of the
2 cases I have. I appreciate your time.
3 CHAIRMAN MATHEWSON: Thank you.
4 MR. MCNARY: Mr. Chairman, Item IV on the
5 agenda concerns settlement agreements. General Counsel
6 Chris Hinckley will handle it.
7 CHAIRMAN MATHEWSON: Proceed.
8 MR. HINCKLEY: Good morning, Mr. Chairman,
9 Commissioners.
10 CHAIRMAN/COMMISSIONERS: Good morning.
11 MR. HINCKLEY: I direct your attention to
12 Tab J and Commission Resolution 09-042 regarding
13 settlement agreement and voluntary dismissal involving
14 Missouri Gaming Company, doing business as Argosy
15 Riverside Casino, and the underlying disciplinary matter
16 09-005, whereby the Commission imposed a $50,000 fine for
17 violations involving an intoxicated patron on the gaming
18 floor, when whereby that intoxicated patron was disruptive
19 and gambled.
20 After the Commission imposed its fine of
21 $50,000, the licensee contacted the Commission immediately
22 after the meeting, took responsibility for the actions or
23 inactions of the licensee, engaged in settlement
24 negotiations regarding the matter; whereby the Commission
25 and the licensee came to an agreement to settle the matter
27
1 for $45,000, and the staff recommends that the Commission
2 adopt this settlement agreement.
3 MR. MCNARY: You need to check the numbers,
4 Chris.
5 MR. HINCKLEY: I apologize. I'm sorry.
6 It's 20 and recommended 18. I was not recommending raising
7 the fine at all.
8 COMMISSIONER JONES: I was looking for that
9 one. Wait a minute.
10 MR. STOTTLEMYRE: I think Rice is having a
11 heart attack back there.
12 MR. HINCKLEY: The Commission does have
13 discretion though.
14 CHAIRMAN MATHEWSON: You woke up everybody,
15 Chris.
16 Okay. Now that we've settled the amount, is
17 there a question of Chris or the Commission?
18 Okay. Do we have a --
19 COMMISSIONER BRADLEY: Motion to approve
20 Commission Resolution 09-042.
21 COMMISSIONER JONES: Second.
22 CHAIRMAN MATHEWSON: Further discussion?
23 Call the roll, please.
24 MS. FRANKS: Chairman Mathewson.
25 CHAIRMAN MATHEWSON: Approve.
28
1 MS. FRANKS: Commissioner Shull.
2 COMMISSIONER SHULL: Approve.
3 MS. FRANKS: Commissioner Jones.
4 COMMISSIONER JONES: Approve.
5 MS. FRANKS: Commissioner Bradley.
6 COMMISSIONER BRADLEY: Approve.
7 MS. FRANKS: By your vote you've adopted
8 Resolution No. 09-042.
9 CHAIRMAN MATHEWSON: Thank you.
10 Chris, do you have another one?
11 MR. HINCKLEY: Yes, sir.
12 I direct your attention to Tab K and
13 Commission Resolution 09-043 regarding settlement
14 agreement and waiver of hearings involving the Licensee
15 Isle of Capri Casinos, Incorporated and underlying
16 disciplinary matter 09-155, whereby the Commission imposed
17 a $5,000 fine for repeat audit findings.
18 After the Commission imposed the fine, the
19 licensee contacted the Commission and took responsibility
20 for their actions or inactions, engaged in settlement
21 negotiations, whereby we came up with the settlement
22 agreement to settle this matter for $4,500, and the staff
23 would recommend that the Commission adopt this agreement.
24 CHAIRMAN MATHEWSON: Any questions of Chris
25 on this one?
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1 The Chair would accept a motion to accept.
2 COMMISSIONER JONES: Move for the acceptance
3 of Resolution 09-043.
4 CHAIRMAN MATHEWSON: Any further discussion?
5 COMMISSIONER BRADLEY: I'll second.
6 CHAIRMAN MATHEWSON: Okay. Call the roll,
7 please.
8 MS. FRANKS: Chairman Mathewson.
9 CHAIRMAN MATHEWSON: Approve.
10 MS. FRANKS: Commissioner Shull.
11 COMMISSIONER SHULL: Approve.
12 MS. FRANKS: Commissioner Jones.
13 COMMISSIONER JONES: Approve.
14 MS. FRANKS: Commissioner Bradley.
15 COMMISSIONER BRADLEY: Approve.
16 MS. FRANKS: By your vote you've adopted
17 Resolution No. 09-043.
18 MR. MCNARY: The next item, Item V, is
19 relicensure of Paltronics, Incorporated, and
20 Lieutenant Rex Scism will make the presentation.
21 CHAIRMAN MATHEWSON: Good morning, sir.
22 LIEUTENANT SCISM: Good morning,
23 Mr. Chairman, Commissioners.
24 Missouri State Highway Patrol investigators
25 conducted the relicensing investigation of one supplier
30
1 company currently licensed in Missouri.
2 This investigation consisted of
3 jurisdictional inquiries, feedback from affected gaming
4 company clients, a review of disciplinary actions,
5 litigation and business credit profiles, as well as a
6 review of key persons associated with the company.
7 The results of this investigation were
8 provided to the Commission staff for their review, and the
9 following supplier company is being presented for your
10 consideration, and that's Paltronics, Incorporated of
11 Crystal Lake, Illinois.
12 MR. MCNARY: Staff recommends relicensure.
13 CHAIRMAN MATHEWSON: Any questions?
14 The Chair would accept the motion on the
15 recommendation.
16 COMMISSIONER SHULL: Move approval of
17 Commission Resolution 09-044.
18 COMMISSIONER JONES: Second.
19 CHAIRMAN MATHEWSON: Further discussion?
20 Call the roll, please.
21 MS. FRANKS: Chairman Mathewson.
22 CHAIRMAN MATHEWSON: Approve.
23 MS. FRANKS: Commissioner Shull.
24 COMMISSIONER SHULL: Approve.
25 MS. FRANKS: Commissioner Jones.
31
1 COMMISSIONER JONES: Approve.
2 MS. FRANKS: Commissioner Bradley.
3 COMMISSIONER BRADLEY: Approve.
4 MS. FRANKS: By your vote you've adopted
5 Resolution 09-044.
6 MR. MCNARY: The next is Item VI concerns an
7 extension of a license for Tech Art Manufacturing.
8 We'd like to postpone that. The application
9 came in late the first week in June. The investigation is
10 not complete. So we'd just like to move that to the next
11 docket.
12 Item VII is -- do we need a motion on that?
13 CHAIRMAN MATHEWSON: Yeah, probably should.
14 Okay. Chair would accept a motion to
15 postpone the consideration of the extension of licensure
16 on Tech Art Manufacturing.
17 COMMISSIONER SHULL: So moved.
18 MR. MCNARY: Mr. Chairman, can we back up?
19 We need to extend the license pending the
20 completion of the investigation, and I believe that's the
21 way the resolution reads, so that they continue with a
22 license until we can vote on relicensure.
23 COMMISSIONER BRADLEY: Well, that motion
24 failed for a second.
25 CHAIRMAN MATHEWSON: Well, we hadn't called
32
1 it anyway, so I think we're clean on that.
2 We will, then, at this time accept a motion.
3 We still need to extend the license. Right?
4 MR. MCNARY: And the resolution would do
5 that. So if you approve the resolution, then we've done
6 what we should do.
7 COMMISSIONER SHULL: Move approval of
8 Commission Resolution 09-045.
9 COMMISSIONER JONES: Second.
10 CHAIRMAN MATHEWSON: You and Chris had a
11 visit this morning before the meeting, Gene?
12 MR. MCNARY: Yeah. He's messing up so
13 nobody can play right.
14 CHAIRMAN MATHEWSON: Well, you don't have
15 your computer.
16 Okay. We have a motion before us.
17 Call the roll, please.
18 MS. FRANKS: Chairman Mathewson.
19 CHAIRMAN MATHEWSON: Approve.
20 MS. FRANKS: Commissioner Shull.
21 COMMISSIONER SHULL: Approve.
22 MS. FRANKS: Commissioner Jones.
23 COMMISSIONER JONES: Approve.
24 MS. FRANKS: Commissioner Bradley.
25 COMMISSIONER BRADLEY: Approve.
33
1 MS. FRANKS: By your vote you've adopted
2 Resolution No. 09-045.
3 CHAIRMAN MATHEWSON: Thank you.
4 MR. MCNARY: Item VII is consideration of
5 licensure of certain Level I/key applicants.
6 Lieutenant Scism.
7 LIEUTENANT SCISM: Good morning again.
8 CHAIRMAN MATHEWSON: Good morning.
9 LIEUTENANT SCISM: Missouri State Highway,
10 along with Gaming Commission financial investigators,
11 conducted background investigations on multiple key person
12 and Level 1 applicants.
13 The investigations included, but were not
14 limited to, criminal, financial and general character
15 inquiries, which were made in the jurisdiction where the
16 applicants lived, worked and frequented.
17 The following individuals are being
18 presented for your consideration: Ferenc Szony, President
19 and Chief Operating Officer for Herbst Gaming,
20 Incorporated, Las Vegas, Nevada; Akira Gemma, Outside
21 Director, Konami Gaming, Incorporated, Las Vegas, Nevada;
22 Tomokazu Godai, Outside Director, Konami Gaming,
23 Incorporated, Las Vegas, Nevada; and Hiroyuki Mizuno,
24 Outside Director, Konami Gaming, Incorporated, Las Vegas,
25 Nevada.
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1 The results of all of the investigations
2 were provided to the Gaming Commission staff for their
3 review, and you have summary reports before you for all
4 the applicants being considered.
5 And I'm not sure how I get stuck with all of
6 these hard names all of the time.
7 COMMISSIONER JONES: I was getting ready to
8 say, you're good.
9 CHAIRMAN MATHEWSON: For all I know you did
10 well, but, hell, I'm from Benton County. What would I
11 know? Just so you know.
12 MR. MCNARY: Staff recommends licensure.
13 CHAIRMAN MATHEWSON: Okay. Chairman accepts
14 the motion to approve.
15 COMMISSIONER JONES: Move for the adoption
16 of Resolution No. 09-046.
17 COMMISSIONER SHULL: Second.
18 CHAIRMAN MATHEWSON: Call the roll, please.
19 MS. FRANKS: Chairman Mathewson.
20 CHAIRMAN MATHEWSON: Approve.
21 MS. FRANKS: Commissioner Shull.
22 COMMISSIONER SHULL: Approve.
23 MS. FRANKS: Commissioner Jones.
24 COMMISSIONER JONES: Approve.
25 MS. FRANKS: Commissioner Bradley.
35
1 COMMISSIONER BRADLEY: Approve.
2 MS. FRANKS: By your vote you've adopted
3 Resolution 09-046.
4 MR. MCNARY: Item VIII concerns a proposed
5 amendment. Clarence Greeno will speak to this chip
6 specification.
7 MR. GREENO: Mr. Chairman, Commissioners,
8 behind Tab O you will find a proposed amendment to
9 11 CSR 45-5.100 relating to chip specifications.
10 This amendment authorizes a $2, beige in
11 color, gaming chip. This denomination was requested by
12 industry licensees to facilitate the coloring-up and
13 dropping of the poker rake. A $2 chip will reduce by
14 one-half the number of chips being dropped, thereby
15 reducing the need for emergency drops. Commission staff
16 feels their request be justified.
17 I'd be happy to answer any questions you
18 might have concerning the requested amendment.
19 CHAIRMAN MATHEWSON: Help me out here. Is
20 this -- the $2 chip would be new in Missouri. Is my
21 understanding correct?
22 MR. GREENO: Yes, sir, that's correct.
23 CHAIRMAN MATHEWSON: So is a $2 chip
24 standard in the industry around other states?
25 MR. GREENO: I don't know how standard it is
36
1 in the industry, but it is available in other
2 jurisdictions.
3 CHAIRMAN MATHEWSON: Okay.
4 MR. GREENO: And what it amounts to,
5 Mr. Chairman, is that the poker rake typically amounts to
6 $4. And the chip denominations in Missouri, we have a $1
7 chip, a $2.50 chip, a $5 chip and then higher
8 denominations.
9 So the $4 rake requires the casino drop four
10 $1 chips. Okay? This causes the drop box to fill up more
11 rapidly, necessitating emergency drops, which slows down
12 the game, increases the time in the count rooms. And so
13 the Commission feels that the adoption of a $2 chip would
14 be appropriate.
15 CHAIRMAN MATHEWSON: Any questions?
16 COMMISSIONER JONES: Mr. Greeno, why didn't
17 they just do a $4 chip? I mean, I'm just asking the
18 question. You know, if that's the case, why didn't they
19 do a $4 chip?
20 MR. GREENO: I think a $2 chip would
21 probably be more versatile and could even be used in other
22 games where odds are six to one. Even on a craps table
23 some bets are a $6 bet.
24 CHAIRMAN MATHEWSON: Other questions?
25 Thank you, sir.
37
1 The Chair would accept a motion to approve
2 $2 chips in the color of beige.
3 COMMISSIONER SHULL: Move for the proposed
4 amendment.
5 COMMISSIONER JONES: Second.
6 CHAIRMAN MATHEWSON: Any other discussion?
7 Call the roll, please.
8 MS. FRANKS: Chairman Mathewson.
9 CHAIRMAN MATHEWSON: Approve.
10 MS. FRANKS: Commissioner Shull.
11 COMMISSIONER SHULL: Approve.
12 MS. FRANKS: Commissioner Jones.
13 COMMISSIONER JONES: Approve.
14 MS. FRANKS: Commissioner Bradley.
15 COMMISSIONER BRADLEY: Approve.
16 MS. FRANKS: By your vote you've adopted
17 proposed amendment 11 CSR 45-5.100.
18 MR. MCNARY: Chairman, Item IX concerns the
19 River City Casino Project. We've asked Pinnacle to make a
20 monthly report because we wanted to make sure that they
21 stayed on their timeline.
22 And Clarence Greeno was there this week and
23 saw River City, and so we've asked him to provide the
24 update since he had a fresh view.
25 MR. GREENO: Okay. Mr. Chairman,
38
1 Commissioners, Gaming Commission staff has been meeting
2 monthly with Pinnacle personnel to view progress being
3 made at the River City Project and to coordinate Casino/
4 Commission activities and maintain communication aimed at
5 facilitating the opening of the property.
6 Construction appears to be progressing quite
7 smoothly. In fact, the changes one can see from month to
8 month are absolutely amazing.
9 I know the Commissioners visited the
10 property a month ago, and if you would have gone -- if you
11 had gone back this past week to see the changes, I think
12 you would have been amazed at the progress that is being
13 made.
14 Construction crews are presently working
15 double shifts, so at this point the completion is on
16 schedule for the first of the year, with Pinnacle assuming
17 possession of the property in late January.
18 Commission offices are scheduled for
19 occupancy in mid October, with electronic gaming devices
20 due to begin arriving the first of November. So MGC
21 inspection and testing of the devices will begin shortly
22 thereafter. And MGC personnel, as I said, will begin
23 occupancy of our offices at the site in mid October of
24 this year. The casino opening is still scheduled for the
25 first quarter of 2010.
39
1 I appreciate the manner in which Pinnacle
2 personnel have involved the Commission in establishing the
3 timeline for accomplishing those tasks necessary to open
4 the casino. They have drafted a very well-considered
5 timeline, scheduling tasks and responsibilities requisite
6 to gaining licensure from the Commission.
7 So, again, it appears that Missouri Gaming
8 Commission personnel will be assigned on site in mid
9 October and the number of personnel will increase month by
10 month as the casino approaches completion and opening.
11 Do you have any questions?
12 CHAIRMAN MATHEWSON: Any questions?
13 COMMISSIONER SHULL: Are you moving the date
14 up then for the opening, the date in the timeline?
15 MR. GREENO: No, sir. That's not my
16 position to move the opening date. It's still scheduled
17 for the first quarter of 2010.
18 CHAIRMAN MATHEWSON: That's three months. I
19 mean, here, there or somewhere in there. Okay.
20 Good report. Thank you for doing that.
21 MR. GREENO: Thank you.
22 MR. MCNARY: Mr. Chairman, the next item
23 concerns the future of the President Casino, and with the
24 Commission's concurrence, Staff recommends that we have an
25 open meeting in some three weeks to consider the
40
1 President's future. And unless there is objection, I will
2 notify the Pinnacle principals of such a meeting.
3 CHAIRMAN MATHEWSON: Any questions of
4 Mr. McNary in that regard?
5 Then I would say we move forward with that
6 open meeting.
7 MR. MCNARY: Thank you, sir.
8 The next item is new business.
9 CHAIRMAN MATHEWSON: Do we have any?
10 MR. MCNARY: Not unless -- John Nathan, do
11 you have anything new to report?
12 MR. NATHAN: Not at this time.
13 MR. MCNARY: Any questions of John?
14 I'm going to give him a chance every meeting
15 to --
16 CHAIRMAN MATHEWSON: Obviously John is doing
17 an outstanding job.
18 Nothing to report, right, my friend? Bless
19 your heart. Thank you.
20 Do we have any new business there?
21 MR. HINCKLEY: No, sir.
22 CHAIRMAN MATHEWSON: Anyone else have any
23 new business to bring before us?
24 Okay. Old business. We've already -- okay.
25 We need a motion to go into closed meeting
41
1 under Section 313.847 and 610.021(1) and (14).
2 COMMISSIONER BRADLEY: So move.
3 COMMISSIONER JONES: Second.
4 CHAIRMAN MATHEWSON: Call the roll on that
5 motion, please.
6 MS. FRANKS: Chairman Mathewson.
7 CHAIRMAN MATHEWSON: Approve.
8 MS. FRANKS: Commissioner Shull.
9 COMMISSIONER SHULL: Approve.
10 MS. FRANKS: Commissioner Jones.
11 COMMISSIONER JONES: Approve.
12 MS. FRANKS: Commissioner Bradley.
13 COMMISSIONER BRADLEY: Approve.
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1 CERTIFICATE OF REPORTER
2
3 I, Patricia A. Stewart, RMR, RPR, CCR, a
4 Certified Court Reporter in the State of Missouri, do
5 hereby certify that the testimony that appears in the
6 foregoing transcript was taken by me to the best of my
7 ability and thereafter reduced to typewriting by me; that
8 I am neither counsel for, related to, nor employed by any
9 of the parties to the action in which this hearing was
10 taken, and further that I am not a relative or employee of
11 any attorney or counsel employed by the parties thereto,
12 nor financially or otherwise interested in the outcome of
13 the action.
14
15
16 __________________________
17 Patricia A. Stewart
18 CCR No. 401
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