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IRGC Meeting - Altoona

Meeting Time: Thursday, July 15, 2021
Meeting Location

Prairie Meadows Racetrack & Casino
1 Prairie Meadows Dr.
Altoona , IA 50009

Meeting Agenda Document:
Meeting Agenda

1.APPROVE AGENDA
2.APPROVE MINUTES – From June 3, 2021 Commission Meeting
3.ANNOUNCEMENTS
A. August 26, 2021 – Riverside Casino and Golf Resort, Riverside (Submissions due by August 12, 2021)
B. September – No Meeting
C. October 21, 2021 – Casino Queen Marquette, Inc., Marquette
4.ADVANCE DEPOSIT SPORTS WAGERING OPERATOR AGREEMENT
A. Casino Queen Marquette, Inc. – Hillside (Iowa), LLC (bet365)
B. Catfish Bend Casinos II, LLC – Amendment to Agreement with VHL Iowa, LLC (888)
5.REQUEST FOR APPROVAL OF SHELF FINANCING PURSUANT TO 491 IAC 5.4(20)
A. Caesars Entertainment, Inc. (Parent Company of Harveys Iowa Management Company, LLC, IOC Bettendorf, L.C., and IOC Black Hawk County, Inc.)
B. Penn National Gaming, Inc. (Parent Company of Ameristar Casino Council Bluffs, LLC)
6.GRAND FALLS CASINO RESORT, LLC – Request for Approval of Remodeling Pursuant to 491 IAC 5.4(15)
7.CONTRACT APPROVALS (OSV – OUT OF STATE VENDOR; RP – RELATED PARTY)
A. Grand Falls Casino Resort, LLC
1.American Engineered Product, LLC – Remodel Project: Slot Bases (OSV)
2.DLR Group – Remodel Project: Architectural and Design Services
3.Gasser Chair Co., Inc. – Remodel Project: Slot Chairs and Fabric (OSV)
4.Gitchi Gaming Inc. – Remodel Project: Slot Chairs and Fabric (OSV)
B. HGI-Lakeside Casino, LLC
1.Sports Information Group, LLC d/b/a Daily Racing Form – Retail Sportsbook Lease Agreement
2.Contracts:
a)Brooner Construction & Crane – Repair Exterior Facility Damage (Original Contractor) (OSV)
b)Everi Payments Inc. – Players Kiosk Machines & Software, plus Maintenance and Lease (OSV)
c)Schindler Elevator Corporation – Repairs and Maintenance of Elevators and Escalator
C. Ameristar Casino Council Bluffs, LLC
1.Alcoholic Beverage Division – Alcoholic Beverages and Licensing
2.Chesterman Co./Coca-Cola – Soft Drinks, Equipment, Supplies
3.Council Bluffs Hotel Association – Hotel Rooms for Overflow Guests
4.Day Electric Services, Inc. – Electrical System Maintenance (OSV)
5.Doll Distributing, Inc. – Beer Inventory and Services
6.Dubuque Barge & Fleeting – Harbor Maintenance & Slip Dredging
7.Farner Bocken Company – Cigarettes & Groceries
8.Global Surveillance – Digital Surveillance Equipment (OSV)
9.Innowave Marketing Group, LLC – Infrastructure for Loyalty Program Mail (OSV)
10.Johnson Brothers Wine Company – Wine
11.M & D McCullick, Inc.-Vessel Rubberized Decking (OSV)
12.Nebraska Furniture Mart – Furniture
13.OMG Midwest d/b/a Omni Engineering – Parking Lot Resurface
14.Otis Elevator Company – Elevator Maintenance
15.Prairie Mechanical Corporation – Kitchen & HVAC Maintenance (OSV)
16.Trane Company – Land-side Chiller Maintenance
17.Woodhouse Ford Chrysler – Promotional Items
D. Dubuque Racing Association, Ltd. – Day After Day Productions, Inc. – Entertainment – Artist Booking Agency (OSV)
E. Diamond Jo, LLC – Brintons USA – Carpeting for Casino Floor and Ancillary Areas (OSV)
F. Diamond Jo Worth
1.Young Plumbing & Heating – Preventative Maintenance – Replacement Units
2.Seneca Companies – C-Store Equipment and Services
G. Riverside Casino and Golf Resort, LLC
1.Brockway Mechanical & Roofing – Event Center Remodel – HVAC/Plumbing Design and Installation
2.Builders Sales & Service Company – Event Center Remodel – Demo-FramingPainting-Acoustical-Carpentry (OSV)
3.Hawkeye Sports Properties, LLC – Marketing and Sponsorship Agreement
4.Imagine This – Promotional Items (OSV)
5.Low Tide, LLC – Aircraft Rental Payment (RP)
6.Mohrfeld Electric – Event Center Remodel – Electrical Design Build
7.Randy’s Flooring – Event Center Remodel – Carpet and Tile Demo and Installation
H. Wild Rose Emmetsburg, L.L.C. – Blacktop Service Company – Asphalt Overlay and Patchwork for Parking Lot Project
I. IOC Bettendorf, L.C
1.Best Buy – TVs and Installation Services for an Upcoming Hotel Capital Project
2.Neesvig’s/Fortune Wisconsin LLC – Premium Beef Products (OSV)
J. Harveys Iowa Management Company LLC
1.American Airlines – Travel
2.Andersen Construction Co. – General Construction
3.C3 (CAP) d/b/a Charles Attal Presents – Entertainment Programming Services (OSV)
4.Caesars Entertainment Operating Company – Inter-Company Allocations and Benefit Expenses (RP)
5.Cintas Corporation – Uniforms
6.Cummins-Allison Corp. – Currency Machines and Maintenance
7.D&B Construction Inc. – General Construction
8.Doll Distributing – Beverage Vendor
9.Ecolab Incorporated – Pest Control
10.Electronic Gizmos & Display Systems (EGADS) – Slot Signage (OSV)
11.Global Surveillance Associates – Surveillance Equipment and Maintenance (OSV)
12.Grainger – Maintenance Supplies
13.Graphic Controls, LLC – Slot Machine Ticket Vendor (OSV)
14.Harrah’s Iowa Arena Management LLC – Management of Mid America Center (RP)
15.Harrah’s Operating Company, Inc. – Rental Agreement between Harrah’s Casino and Harrah’s Operating Company, Inc. (RP)
16.HMW Construction – Snow Removal (OSV)
17.Hockenberg’s – Kitchen Equipment
18.J & R Liquors – Beverage Vendor
19.Johnson Brothers/Iowa Wine & Beverage – Beverage Vendor
20.Liberty Fruit Company, Inc. – Food Supplier
21.NRT Technology Corp. – Self-Redemption Kiosks and Repair/Maintenance (OSV)
22.Olson Brothers Construction – General Construction
23.OS Sales/Omaha Steaks – Food Supplier
24.Otis Elevator Company – Elevator Maintenance and Repair
25.Pepsi Bottling Group – Beverage Vendor
26.Pinnacle Construction, Inc. – General Construction
27.Premier Midwest – Beverage Vendor
28.Rotella’s Italian Bakery – Food Supplier
29.RR Donnelley – Printer
30.Staples – Office Supplies
31.The Printer, Inc. – Printer
32.United Airlines – Travel
33.Resolute Transactions, Inc. – ATM Contract (OSV)
K. Iowa West Racing Association d/b/a Horseshoe Casino Council Bluffs
1.American Lift – Electronic Sign Vendor (OSV)
2.Andersen Construction Co. – General Construction
3.Burton Plumbing – Plumbing Vendor
4.Caesar’s Entertainment Operating Company – Inter-Company Allocations and Benefit Expenses (RP)
5.Cintas Corporation – Uniforms
6.Country Inn & Suites – Hotel Accommodations
7.Cummins-Allison Corp. – Repairs/Maintenance of Equipment
8.D&B Construction, Inc. – General Construction
9.Doll Distributing – Alcoholic Beverage Distributor
10.Ecolab Incorporated -Pest Control
11.Electronic Gizmos & Display Systems (EGADS) – Slot Signage (OSV)
12.Energyficient – Lighting Efficiency Vendor
13.Global Surveillance Associates – Surveillance Equipment and Maintenance (OSV)
14.Grainger – Maintenance Supplies
15.Graphic Controls, LLC – Slot Machine Ticket Vendor (OSV)
16.Harrah’s Iowa Arena Management LLC – Management of Mid America Center (RP)
17.Hockenberg’s – Kitchen Equipment
18.HMW Construction – Snow Removal (OSV)
19.Iowa Wine & Beverage (Johnson Brothers) – Beverage Vendor
20.Liberty Fruit Company Inc. – Food Supplier
21.Nebraska Furniture Mart – Furniture Vendor
22.NRT Technology Corp. – Self-Redemption Kiosks and Repair/Maintenance (OSV)
23.Olson Brothers Construction – General Construction
24.Pepsi Bottling Group – Beverage Vendor
25.Pinnacle Construction Inc. – General Construction
26.Road Show Logistics – Promotional Vendor
27.Rotella’s Italian Bakery – Food Supplier
28.RR Donnelley – Printer
29.Sapp Brothers Truck Stop – Fuel Vendor
30.Schindler Elevator Corporation – Elevator Maintenance
31.Southern Glazer’s of Iowa – Beverage Vendor
32.Staples – Office Supplies
33.The Printer, Inc. – Printer
PRAIRIE MEADOWS RACETRACK & CASINO
A. Advance Deposit Wagering Operator Agreement – XpressBet
B. Contracts:
1.Comp Trading (MTM Sales) – Promotional Items (OSV)
2.Gander Group (Bangarang Enterprises) – Promotional Items (OSV)
3.J F Ahern Company – Fire Sprinkler Servicing
4.Shift4 Payments, Inc. – Credit Card Gateway and Processor (OSV)
9.REVIEW OF HORSEMEN’S ORGANIZATIONS FINANCIAL AUDITS
A .The Iowa HBPA, Inc. and The Iowa HBPA Benevolent Trust
B. Iowa Quarter Horse Racing Enterprises, Inc. d/b/a Iowa Quarter Horse Racing Association
C. Iowa Harness Racing Association
10.HEARINGS
A. Wild Rose Jefferson, L.L.C. – For a violation of Iowa Code 99F.9(5) (Minor)
B. American Wagering, Inc. d/b/a William Hill Race Book – For a violation of Iowa Code 99F.9(4) “a”(1)
C. PointsBet Iowa LLC – For a violation of Iowa Code 99F.4(22) (Self Exclusion)
11. PUBLIC COMMENT
12. ADMINISTRATIVE BUSINESS – Approval of Revised Regulatory Fees for FY 2022
13.SOCIOECONOMIC MARKET STUDY – Selection of Vendor(s)
14.ELECTION OF CHAIR AND VICE CHAIR
15.ADJOURN

Meeting Minutes Document:
Meeting Minutes

The Iowa Racing and Gaming Commission (IRGC) met on Thursday, July 15, 2021 at Prairie Meadows Racetrack and Casino in Altoona, Iowa.  Commission members present were Julie Andres, Chair, and members Mark Campbell, Lance Horbach and Daryl Olsen.

APPROVE AGENDA: Chair Andres called the meeting to order at 8:30 AM and thanked the or industry members for taking the time to meet with the Commission on an individual basis on Wednesday, stating that it was beneficial for all. The Commission’s goal was to create an open dialogue with industry representatives to learn about any challenges they are facing and help the Commission to become better regulators.

Commissioner Olsen noted many referenced the licensing of non-gaming positions.  He stated Mr. Ohorilko and staff have been directed to look into the issue and report back to the Commission. He noted all businesses are having a difficult time finding employees at this time, not just the gaming industry.

Chair Andres requested a motion to approve the agenda.  Commissioner Horbach so moved.  Commissioner Campbell seconded the motion, which carried unanimously.

APPROVE MINUTES: Chair Andres requested a motion regarding the minutes.  Commissioner Campbell moved to approve the minutes from the June 3, 2021 Commission meeting as submitted. Commissioner Olsen seconded the motion, which carried unanimously.

ANNOUNCEMENTS: Brian Ohorilko, Administrator of IRGC, stated the next meeting would be held at Riverside Casino & Golf Resort on August 26th.  Submissions for the meeting are due in the Commission office by August 12, 2021.  There will be no meeting in September.  The October meeting will be held at Casino Queen Marquette on October 21st.

ADVANCE DEPOSIT SPORTS WAGERING OPERATOR AGREEMENTS:
Casino Queen Marquette, Inc.: Don Ostert, General Manager, presented an agreement with Hillside (Iowa), LLC, better known as Bet365.  He stated they have been in operation for 21 years and was founded in the United Kingdom.  They have operations in several other countries, and are currently operating in the state of New Jersey.  The agreement is a multi-year contract; Bet365 will pay Casino Queen a royalty fee equal to the greater of a certain percentage of net gaming revenue or an annual fixed amount.  This will be the second skin for the facility.

Hearing no comments or questions, Chair Andres requested a motion. Commissioner Horbach moved to approve the Advance Deposit Sports Wagering Operator Agreement between Casino Queen Marquette, Inc. and Hillside (Iowa), LLC.  Commissioner Olsen seconded the motion, which carried unanimously.

Catfish Bend Casinos II, LLC: Gary Hoyer, Chief Executive Officer, presented an amendment to their agreement with VHL Iowa, LLC (888), which is limited to adding additional names under which the sportsbook and/or iGaming platforms could operate, specifically to include Sports Illustrated and similar names.

Hearing no comments or questions, Chair Andres requested a motion. Commissioner Campbell moved to approve the amendment to the Advance Deposit Sports Wagering Operator Agreement between Catfish Bend Casinos II, LLC and VHL Iowa, LLC.  Commissioner Horbach seconded the motion, which carried unanimously.

REQUEST FOR APPROVAL OF SHELF FINANCING PURSUANT TO 491 IAC 5.4(20):
Caesars Entertainment, Inc. (Parent Company of Harveys Iowa Management Company, LLC, IOC Bettendorf, L.C., and IOC Black Hawk County, Inc.): Doug Gross, legal counsel, noted publicly traded entities can request approval of shelf financing for a three-year period to maximize the amount of debt allowed.  Caesars is requesting an increase from $22 Billion to $27 Billion.  Mr. Gross advised Caesars is looking at a program to reduce the amount of debt over time.

Hearing no comments or questions, Chair Andres requested a motion.  Commissioner Olsen moved to approve Caesars Entertainment, Inc.’s shelf financing request.  Commissioner Horbach seconded the motion, which carried unanimously.

Penn National Gaming, Inc. (Parent Company of Ameristar Casino Council Bluffs, LLC): Mr. Gross advised Penn National Gaming currently has shelf financing in place, which will expire in August.  The request before the Commission today is for $7 Billion.  Mr. Gross stated due to the size of the company and the stock price of the company, the numbers are very favorable.  He advised Penn National’s debt level is the lowest it has been for some time.

Hearing no comments or questions, Chair Andres requested a motion.  Commissioner Horbach moved to approve Penn National Gaming, Inc.’s shelf financing request.  Commissioner Campbell seconded the motion, which carried unanimously.

GRAND FALLS CASINO RESORT, LLC: Sharon Haselhoff, General Manager, noted the facility finished the addition of an additional 66 hotel rooms and additional RV spaces.  She stated those have been well received; the hotel has been full on the weekends, and has been experiencing a good occupancy rate during the week.  The RV Park has been full during the week and weekends.

Ms. Haselhoff requested approval for the remodel and refresh of the casino floor.  The estimated cost is $2 million, and is the first phase of a $7 million project for the facility.  Next year they anticipate seeking approval for renovations of the restaurants and front of house.  The current project entails changing out the carpet, slot bases, chairs, signage, additional space for VIP offices, electrical, demolition for drywall, adding drywall, public fixtures, lighting, decorative metal and some new piece work, and enclose the poker room.  She stated the work will be completed by outside vendors.  The anticipated start date is September with completion by the end of the year, contingent upon the availability of materials.

Commissioner Horbach noted this is a significant refresh for the gaming floor and entrance.  He asked how they will manage the work and still be able to have the gaming floor open.  She advised a lot of the construction would be done Monday through Thursday during the slower times, and done in sections to keep a majority of the floor available to the patrons.

Hearing no further comments or questions, Chair Andres requested a motion.  Commissioner Olsen thanked Ms. Haselhoff for the capital infusion; that the Elite properties are always nice.  Commissioner Olsen moved to approve the remodel request as submitted by Grand Falls Casino Resort, LLC.  Commissioner Campbell seconded the motion, which carried unanimously.

CONTRACT APPROVALS (OSV – OUT OF STATE VENDOR; RP – RELATED PARTY):
Grand Falls Casino Resort, LLC: Ms. Haselhoff presented the following contracts for Commission approval:

  • American Engineered Product, LLC – Remodel Project: Slot Bases (OSV)
  • DLR Group – Remodel Project: Architectural and Design Services
  • Gasser Chair Co., Inc. – Remodel Project: Slot Chairs and Fabric (OSV)
  • Gitchi Gaming Inc. – Remodel Project: Slot Chairs and Fabric (OSV)

Hearing no comments or questions, Chair Andres requested a motion. Commissioner Horbach moved to approve the contracts as submitted by Grand Falls Casino Resort, LLC.  Commissioner Olsen seconded the motion, which carried unanimously.

HGI-Lakeside Casino, LLC:
Sports Information Group, LLC dba Daily Racing Form: Robin Maxon, legal counsel, presented a Retail Sportsbook Lease Agreement between the entities.  She advised the agreement is for 10 years, and HGI-Lakeside will receive “Performance Rent” payments in the amount of 50% of the net profits generated by the retail sportsbook.

Hearing no comments or questions, Chair Andres requested a motion.  Commissioner Campbell moved to approve the Retail Sportsbook Lease Agreement between HGI-Lakeside Casino, LLC and Sports Information Group, LLC d/b/a Daily Racing Form as submitted. Commissioner Horbach seconded the motion, which carried unanimously.

Contracts: David Monroe, General Manger, presented the following contracts for Commission approval:

  • Brooner Construction & Crane – Repair Exterior Facility Damage (Original Contractor) (OSV)
  • Everi Payments Inc. – Players Kiosk Machines & Software, plus Maintenance and Lease (OSV)
  • Schindler Elevator Corporation – Repairs and Maintenance of Elevators and Escalator

Hearing no comments or questions, Chair Andres requested a motion.  Commissioner Campbell moved to approve the contracts as submitted by HGI-Lakeside Casino, LLC.   Commissioner Horbach seconded the motion, which carried unanimously.

Ameristar Casino Council Bluffs, LLC: Paul Czak, General Manager, presented the following contracts for Commission approval:

  • Alcoholic Beverage Division – Alcoholic Beverages and Licensing
  • Chesterman Co./Coca-Cola – Soft Drinks, Equipment, Supplies
  • Council Bluffs Hotel Association – Hotel Rooms for Overflow Guests
  • Day Electric Services, Inc. – Electrical System Maintenance (OSV)
  • Doll Distributing, Inc. – Beer Inventory and Services
  • Dubuque Barge & Fleeting – Harbor Maintenance & Slip Dredging
  • Farner Bocken Company – Cigarettes & Groceries
  • Global Surveillance – Digital Surveillance Equipment (OSV)
  • Innowave Marketing Group, LLC – Infrastructure for Loyalty Program Mail (OSV)
  • Johnson Brothers Wine Company – Wine
  • M & D McCullick, Inc.- Vessel Rubberized Decking (OSV)
  • Nebraska Furniture Mart – Furniture
  • OMG Midwest d/b/a Omni Engineering – Parking Lot Resurface
  • Otis Elevator Company – Elevator Maintenance
  • Prairie Mechanical Corporation – Kitchen & HVAC Maintenance (OSV)
  • Trane Company – Land-side Chiller Maintenance
  • Woodhouse Ford Chrysler – Promotional Items

Commissioner Horbach noted the costs associated with the Dubuque Barge & Fleeting contract, that it is an expensive venture to keep the boat operational.  Mr. Czak stated when he started at the facility, the cost was between $300,000 and $400,000 to dredge under the boat. He noted the river levels are never normal anymore; they are either really high or really low. Mr. Czak indicated the cost is just part of doing business on the river.

Hearing no further comments or questions, Chair Andres requested a motion.  Commissioner Horbach moved to approve the contracts as submitted by Ameristar Casino Council Bluffs, LLC.  Commissioner Campbell seconded the motion, which carried unanimously.

Dubuque Racing Association, Ltd.: Brian Rakestraw, General Manager, presented a contract with Day After Day Productions, Inc., an Entertainment-Artist Booking Agency (OSV).

Hearing no comments or questions, Chair Andres requested a motion. Commissioner Olsen moved to approve the contract as presented by Dubuque Racing Association, Ltd.  Commissioner Horbach seconded the motion, which carried unanimously.

Diamond Jo, LLC: Wendy Runde, General Manager, presented a contract with Brintons USA for Carpeting for Casino Floor and Ancillary Areas (OSV).

Hearing no comments or questions, Chair Andres requested a motion.  Commissioner Olsen moved to approve the contract as submitted by Diamond Jo, LLC.  Commissioner Campbell seconded the motion, which carried unanimously.

Diamond Jo Worth, LLC: Scott Smith, General Manager, presented the following contracts for Commission approval:

  • Young Plumbing & Heating – Preventative Maintenance – Replacement Units
  • Seneca Companies – C-Store Equipment and Services

Hearing no comments or questions, Chair Andres requested a motion.  Commissioner Olsen moved to approve the contracts as submitted by Diamond Jo Worth, LLC.  Commissioner Horbach seconded the motion, which carried unanimously.

Riverside Casino and Golf Resort, LLC: Damon John, Director of Marketing, presented the following contracts for Commission approval:

  • Brockway Mechanical & Roofing – Event Center Remodel – HVAC/Plumbing Design and Installation
  • Builders Sales & Service Company – Event Center Remodel – Demo-Framing-Painting-Acoustical-Carpentry (OSV)
  • Hawkeye Sports Properties, LLC – Marketing and Sponsorship Agreement
  • Imagine This – Promotional Items (OSV)
  • Low Tide, LLC – Aircraft Rental Payment (RP)
  • Mohrfeld Electric – Event Center Remodel – Electrical Design Build
  • Randy’s Flooring – Event Center Remodel – Carpet and Tile Demo and Installation

Hearing no comments or questions, Chair Andres requested a motion.  Commissioner Horbach moved to approve the contracts as submitted by Riverside Casino and Golf Resort, LLC.  Commissioner Campbell seconded the motion, which carried unanimously.

Wild Rose Emmetsburg, L.L.C.: Steve Cody, General Manager, presented a contract with Blacktop Service Company for Asphalt Overlay and Patchwork for Parking Lot Project.  He indicated this is the first part of a bigger project related to the parking lot.

Hearing no comments or questions, Chair Andres requested a motion.  Commissioner Campbell moved to approve the contract as submitted by Wild Rose Emmetsburg, L.L.C.  Commissioner Horbach seconded the motion, which carried unanimously.

IOC Bettendorf, L.C.: Nancy Ballenger, General Manager, presented the following contracts for Commission approval:

  • Best Buy – TVs and Installation Services for an Upcoming Hotel Capital Project
  • Neesvig’s/Fortune Wisconsin LLC – Premium Beef Products (OSV)

Hearing no comments or questions, Chair Andres requested a motion.  Commissioner Olsen moved to approve the contracts as submitted by IOC Bettendorf, L.C.  Commissioner Horbach seconded the motion, which carried unanimously.

Harveys Iowa Management Company LLC: Thomas Roberts, General Manager, presented the following contracts for Commission approval:

  • American Airlines – Travel
  • Andersen Construction Co. – General Construction
  • C3 (CAP) d/b/a Charles Attal Presents – Entertainment Programming Services (OSV)
  • Caesars Entertainment Operating Company – Inter-Company Allocations and Benefit Expenses (RP)
  • Cintas Corporation – Uniforms
  • Cummins-Allison Corp. – Currency Machines and Maintenance
  • D&B Construction Inc. – General Construction
  • Doll Distributing – Beverage Vendor
  • Ecolab Incorporated – Pest Control
  • Electronic Gizmos & Display Systems (EGADS) – Slot Signage (OSV)
  • Global Surveillance Associates – Surveillance Equipment and Maintenance (OSV)
  • Grainger – Maintenance Supplies
  • Graphic Controls, LLC – Slot Machine Ticket Vendor (OSV)
  • Harrah’s Iowa Arena Management LLC – Management of Mid America Center (RP)
  • Harrah’s Operating Company, Inc. – Rental Agreement between Harrah’s Casino and Harrah’s Operating Company, Inc. (RP)
  • HMW Construction – Snow Removal (OSV)
  • Hockenberg’s – Kitchen Equipment
  • J & R Liquors – Beverage Vendor
  • Johnson Brothers/Iowa Wine & Beverage – Beverage Vendor
  • Liberty Fruit Company, Inc. – Food Supplier
  • NRT Technology Corp. – Self-Redemption Kiosks and Repair/Maintenance (OSV)
  • Olson Brothers Construction – General Construction
  • OS Sales/Omaha Steaks – Food Supplier
  • Otis Elevator Company – Elevator Maintenance and Repair
  • Pepsi Bottling Group – Beverage Vendor
  • Pinnacle Construction, Inc. – General Construction
  • Premier Midwest – Beverage Vendor
  • Rotella’s Italian Bakery – Food Supplier
  • RR Donnelley – Printer
  • Staples – Office Supplies
  • The Printer, Inc. – Printer
  • United Airlines – Travel
  • Resolute Transactions, Inc. – ATM Contract (OSV)

He advised most were renewals of existing contracts due to the five-year rule.

Hearing no comments or questions, Chair Andres requested a motion.  Commissioner Horbach moved to approve the contracts as submitted by Harveys Iowa Management Company LLC.  Commissioner Campbell seconded the motion, which carried unanimously.

Iowa West Racing Association d/b/a Horseshoe Casino Council Bluffs: Mr. Roberts presented the following contracts for Commission approval:

  • American Lift – Electronic Sign Vendor (OSV)
  • Andersen Construction Co. – General Construction
  • Burton Plumbing – Plumbing Vendor
  • Caesar’s Entertainment Operating Company – Inter-Company Allocations and Benefit Expenses (RP)
  • Cintas Corporation – Uniforms
  • Country Inn & Suites – Hotel Accommodations
  • Cummins-Allison Corp. – Repairs/Maintenance of Equipment
  • D&B Construction, Inc. – General Construction
  • Doll Distributing – Alcoholic Beverage Distributor
  • Ecolab Incorporated - Pest Control
  • Electronic Gizmos & Display Systems (EGADS) – Slot Signage (OSV)
  • Energyficient – Lighting Efficiency Vendor
  • Global Surveillance Associates – Surveillance Equipment and Maintenance (OSV)
  • Grainger – Maintenance Supplies
  • Graphic Controls, LLC – Slot Machine Ticket Vendor (OSV)
  • Harrah’s Iowa Arena Management LLC – Management of Mid America Center (RP)
  • Hockenberg’s – Kitchen Equipment
  • HMW Construction – Snow Removal (OSV)
  • Iowa Wine & Beverage (Johnson Brothers) – Beverage Vendor
  • Liberty Fruit Company Inc. – Food Supplier
  • Nebraska Furniture Mart – Furniture Vendor
  • NRT Technology Corp. – Self-Redemption Kiosks and Repair/Maintenance (OSV)
  • Olson Brothers Construction – General Construction
  • Pepsi Bottling Group – Beverage Vendor
  • Pinnacle Construction Inc. – General Construction
  • Road Show Logistics – Promotional Vendor
  • Rotella’s Italian Bakery – Food Supplier
  • RR Donnelley – Printer
  • Sapp Brothers Truck Stop – Fuel Vendor
  • Schindler Elevator Corporation – Elevator Maintenance
  • Southern Glazer’s of Iowa – Beverage Vendor
  • Staples – Office Supplies
  • The Printer, Inc. – Printer

Hearing no comments or questions, Chair Andres requested a motion.  Commissioner Campbell moved to approve the contracts as submitted by Iowa West Racing Association d/b/a Horseshoe Casino Council Bluffs.  Commissioner Olsen seconded the motion, which carried unanimously.

PRAIRIE MEADOWS RACETRACK & CASINO, INC.:  

Advance Deposit Wagering Operator Agreement: Gary Palmer, General Manager, presented an Advance Deposit Wagering Operator Agreement with XpressBet for Commission approval.

Hearing no comments or questions, Chair Andres requested a motion.  Commissioner Campbell moved to approve the Advance Deposit Wagering Operator Agreement submitted by Prairie Meadows conditioned upon XpressBet receiving an Advance Deposit Wagering Operator license from the Commission.  Commissioner Horbach seconded the motion, which carried unanimously.

Contracts: Mr. Palmer submitted the following contracts for Commission approval:

  • Comp Trading (MTM Sales) – Promotional Items (OSV)
  • Gander Group (Bangarang Enterprises) – Promotional Items (OSV)
  • J F Ahern Company – Fire Sprinkler Servicing
  • Shift4 Payments, Inc. – Credit Card Gateway and Processor (OSV)

Hearing no comments or questions, Chair Andres requested a motion.  Commissioner Olsen moved to approve the contracts as submitted by Prairie Meadows. Commissioner Campbell seconded the motion, which carried unanimously.

REVIEW OF HORSEMEN’S ORGANIZATIONS FINANCIAL AUDITS:

The Iowa HBPA, Inc. and The Iowa HBPA Benevolent Trust: Jon Moss, Executive Director, advised they received a clean audit. He noted last year was a difficult year, and the amount of revenue generated was not as much as they had hoped.  Purse generation is predicated on the previous year’s figures, and the next half of the year is subsidized.  They also receive 2% as set forth in legislation.  Mr. Moss stated the trust funds were used to provide Covid assistance for all of the trainers at the track by helping to cover some of the expenses of getting the horses to the track; those costs were between $80,000 and $90,000.  Benevolence funds are used to help cover medical, dental and health screening costs for individuals on the backside of the track.  Mr. Moss stated the organization has a great relationship with the medical clinic located across the street from the racetrack.

Iowa Quarter Horse Racing Enterprises, Inc. d/b/a Iowa Quarter Horse Racing Association: Tom Lepic, President, thanked the IRGC for making hair testing possible in the state, noting Iowa is the leader in hair testing in the country.  He stated more and more trainers are coming to Iowa for the stakes program; stakes entries are up 20%.  Mr. Lepic stated he felt the contract for next year was close to completion.

Iowa Harness Racing Association: Royal Roland, President, advised harness racing is on solid footing for 2021.  He advised funding for purses is down approximately 30% based on Prairie Meadows’ revenue for 2020; however, they were able to maintain the purse levels.  Mr. Roland stated there are 35 days of harness racing scheduled at 10 different locations and county fairs.  There were over 300 Iowa registered horses nominated; the number of Iowa registered Standardbred foals was over 250.  He noted there are more individuals from out-of-state interested in purchasing Iowa-bred horses and racing here.

HEARINGS:

Wild Rose Jefferson, L.L.C.: Mr. Ohorilko advised Commission staff and Wild Rose Jefferson, L.L.C. have entered into a Stipulated Agreement for a violation of Iowa Code 99F.9(5) (Minor).  He stated an underage individual entered the gaming floor on February 1st.  The individual was not challenged, was on the gaming floor for over 30 minutes and gambled; therefore, meeting the criteria for a Commission referral of the incident.  The individual was discovered when it was determined that the cage was short $300.  During a review to track down the individual that was overpaid, it was determined the individual was underage. 

Travis Dvorak, General Manager, accepted responsibility for the violation, advising the facility takes underage gambling seriously.  He stated the facility has been open six years, and admissions have totaled approximately 2.7 million; this is only the second violation of this nature.  Mr. Dvorak stated this was a father-daughter combination; the daughter was 20 and the father was helping her gain entrance.  The father would approach the turnstiles and distract the security officer and block his view of the entrance.  Mr. Dvorak advised the DCI charged the father, and the county attorney prosecuted the father.  He stated the same father-daughter combination tried the same tactic 8 days later; however, they were unsuccessful on that attempt.  The father tried to say the daughter was 22, not realizing the facility already had a copy of her driver’s license.  Mr. Dvorak stated this situation occurred during the mask mandate.  Since the conclusion of the mask mandate, they have met with DCI to discuss how to assess underage patrons.  Changes were made to procedures, and all employees were trained on the revised policies and procedures. 

Hearing no comments or questions, Chair Andres requested a motion. Commissioner Campbell moved to approve the Stipulated Agreement with Wild Rose Jefferson, L.L.C. with an administrative penalty of $20,000.  Commissioner Olsen seconded the motion, which carried unanimously.

American Wagering, Inc. d/b/a William Hill Race Book: Mr. Ohorilko advised Commission staff and American Wagering, Inc. d/b/a William Hill Race Book have entered into a Stipulated Agreement for a  violation of Iowa Code 99F.9(4) “a”(1).  Mr. Ohorilko advised there are three counts associated with this stipulation; all three are related to moving forward with business prior to authorization.  The first count is for a self-bet terminal that was left on at Horseshoe Casino.  The second count was related to the mobile operations for sports betting at Council Buffs’ facilities.  The third count was related to the in-person registration requirement, which sunset on January 1, 2021.  Mr. Ohorilko advised the parties have agreed to an administrative penalty of an amount up to $30,000 for the three counts.

David Grolman stated he was present to answer any questions the Commission may have regarding the Stipulated Agreement.  He indicated the first two counts occurred in September; two pieces of equipment were left on, and once they were aware of the matter, the equipment was turned off.  Prior to the equipment being turned off, a patron was able to place a pari-mutuel wager, and four individuals were able to sign up for a mobile account – all occurring prior to receiving authorization to conduct business from the Commission. Mr. Grolman stated William Hill used a registration platform which did not allow for remote registration; however, they changed to a different platform in anticipation of the mobile registration. This change would have required staff had to authorize the account.  Mr. Grolman stated agents did not follow protocols, which led to the errors.

Hearing no comments or questions, Chair Andres requested a motion.  Commissioner Horbach moved to approve the Stipulated Agreement with American Wagering, Inc. d/b/a William Hill Race Book with a combined penalty for all three violations of $20,000.  Commissioner Campbell seconded the motion, which carried unanimously.

PointsBet Iowa LLC: Mr. Ohorilko advised Commission staff and PointsBet Iowa LLC had entered into a Stipulated Agreement for a violation of Iowa Code 99F.4(22) (Self Exclusion).  Mr. Ohorilko advised there was a software update that was pushed out to the system; however, there were errors in the deployment.  PointsBet did self-report the incident.  An investigation revealed there were 367 registrations impacted and were not checked against the statewide self-exclusion list due to the error in deployment. One customer that was on the state-wide self-exclusion list had created an account, and was sent nine promotional emails. Mr. Ohorilko advised corrections have been made to the system.  He stated PointsBet has acknowledged the violation and has agreed to an administrative penalty between $5,000 and $20,000, which is consistent with the Statewide Exclusion Resolution.  He advised this is the second offense within the last 365 days for this type of violation. 

Andrew Walter, Senior Director of Regulatory Compliance, advised they take responsible gaming seriously, and view themselves as a responsible operator.  He indicated the situation was due to a unique tech issue that was difficult to discover; once it was, they instituted a manual check of the system as well as a tech check.  Mr. Walter stated they value their relationship with the IRGC and Catfish Bend.

Hearing no comments or questions, Chair Andres requested a motion.  Commissioner Olsen moved to approve the Stipulated Agreement with PointsBet Iowa LLC with an administrative penalty of $7,500.  Commissioner Campbell seconded the motion, which carried unanimously.

PUBLIC COMMENT/ADMINISTRATIVE BUSINESS: As there was no Public Comment, Chair Andres called on Mr. Ohorilko for administrative business.  Mr. Ohorilko presented revised regulatory fees which were contemplated at the June meeting due to the delay in the adjournment of the Legislature; both IRGC and the Division of Criminal Investigation (DCI) were waiting on some budget numbers.  For the IRGC fees, there were salary adjustment dollars that increased the overall budget by $43,000, which would be divided between the 19 facilities in their weekly payments.  Mr. Ohorilko stated the fees had been sent to the industry.   The second set is the revised DCI fees; there was a decrease due to the elimination of fees for seven facilities in Iowa, and a slight increase due to salary adjustment dollars. 

Commissioner Horbach asked if any comments were received from the facilities regarding the revised fee schedules.  Mr. Ohorilko advised none were received on the IRGC fees; however, the DCI fees were just sent a few days ago, so there may not have been time to receive feedback, but did not feel there would be any.

Hearing no further comments or questions, Chair Andres requested a motion.  Commissioner Campbell moved to approve the revised regulatory fees for IRGC and DCI.  Commissioner Olsen seconded the motion, which carried unanimously.

SOCIOECONOMIC MARKET STUDY: Chair Andres stated Iowa law requires a socioeconomic impact study be conducted every eight years.  A Request for Proposals was published in May, which outlined various standards and questions that should be answered as part of the study.  Four vendors submitted proposals in June – Bâton Global, Spectrum Gaming Group, Global Market Advisors and The Innovation Group.  Each vendor gave a presentation as to their work, qualifications and approach they would utilize to complete the study at the June Commission meeting.  The Commission then consulted with Kathy Harper from the Department of Administrative Services (DAS) with regard to the rules and process to be followed in making this selection.  Chair Andres called on Ms. Harper to present the results.

Ms. Harper advised the Notice of Intent to Award for RFP 0620429086 show The Innovation Group and Spectrum Gaming were the two top scoring vendors. 

Chair Andres called for any comments.  Commissioner Olsen stated he felt the process was very thorough, and all four proposals were excellent.  He stated the Commission felt good about the ability to be able to select two vendors.  This will provide the Commission with two different views when they evaluate the results. 

Chair Andres requested a motion to select the vendor for the socioeconomic study.  Commissioner Olsen moved to select Spectrum Gaming Group and The Innovation Group to perform the socioeconomic market study.  Commissioner Campbell seconded the motion, which carried unanimously.

ELECTION OF CHAIR AND VICE CHAIR: Commissioner Olsen nominated Commissioner Andres as Chair.  Commissioner Horbach seconded the motion, which carried unanimously.

Commissioner Campbell nominated Commissioner Olsen to serve as Vice Chair.  Commissioner Horbach seconded the motion, which carried unanimously.

ADJOURN: Hearing no further business to come before the Commission, Chair Andres requested a motion to adjourn.  Commissioner Horbach so moved.  Commissioner Campbell seconded the motion, which carried unanimously.