The Iowa Racing and Gaming Commission (IRGC) met at Prairie Meadows Racetrack and Casino in Altoona, Iowa. Commission members present were Julie Andres, Chair; Daryl Olsen, Vice Chair; and members Amy Burkhart, Mark Campbell and Lance Horbach.
APPROVE AGENDA: Chair Andres called the meeting to order at 3:30 PM, and requested a motion to approve the agenda. Commissioner Campbell moved to approve the agenda as presented. Commissioner Horbach seconded the motion, which carried unanimously.
WELCOME: Gary Palmer, General Manager, stated Prairie Meadows is excited to have the Commission attend the races this evening. He stated the facility is celebrating their 33rd year of having a gaming license, and are appreciative of the honor. Mr. Palmer advised they will be starting a complete remodel of the hotel in early October, which will cost approximately $14 million. They are also replacing the escalators at a cost of $1.5 million and painting the outside of the building with an approximate cost of $800,000. He stated since 1996 Prairie Meadows has given approximately $2 billion in profits to central Iowa and the State of Iowa.
APPROVE MINUTES: Chair Andres requested a motion regarding the minutes from the June 2, 2022 Commission meeting. Commissioner Burkhart moved to approve the minutes as submitted. Commissioner Olsen seconded the motion, which carried unanimously.
ANNOUNCEMENTS: Brian Ohorilko, Administrator of IRGC, advised the next Commission meeting will be on August 25th at Riverside Casino and Golf Resort. Submissions are due by August 11th. The following meeting will be held at The Rewind Hotel in West Des Moines on September 29th.
Mr. Ohorilko introduced Danny Lawhon and Cody Edwards who are part of the Sports Wagering team in the Des Moines office, and Joe Gau who is filling in as a Safety Steward at Prairie Meadows. He is a Gaming Representative in Dubuque.
CASINO QUEEN MARQUETTE, INC.: Sean Bateman, General Manager, introduced Mark Nelson, Vice President of Sports Wagering, and Ken Frasier, Legal Counsel, at the corporate office. Mr. Bateman addressed the agenda items.
Second Amendment to Amended and Restated Online Sports Wagering Access Agreement with Fubo Gaming: Mr. Bateman stated Casino Queen Marquette is requesting to amend the agreement with Fubo Gaming, which would continue to provide online sports wagering only.
Online Sports Wagering Access Agreement: Mr. Bateman stated Casino Queen is also seeking approval of Bet CQ Iowa LLC to provide retail and online sports wagering. Mr. Bateman advised Bet CQ is affiliated with Casino Queen, and will be the third skin for the property.
Commissioner Olsen asked the name of the other entities approved to provide sports wagering at Casino Queen. Mr. Bateman stated they are Fubo Gaming, Bet CQ Iowa, and the other entity is Bet 365, which was approved at the beginning, but has not started operations yet. He stated they hope to go live in September. Mr. Bateman stated Casino Queen is waiting on the company to meet the necessary requirements to commence operations.
Commissioner Campbell asked about plans regarding the boat. Mr. Bateman stated it is still in the plans; they recently looked at a different casino boat but it did not meet their needs. The boat in Baton Rouge is still on the table, but is a year to 1½ years out. They continue to look for options that might be closer. Mr. Bateman stated he would like to see something new and on a much larger scale at the Marquette location.
Commissioner Horbach noted the agreement referenced kiosks. He asked what is available for sports betting space on the current facility. Mr. Bateman stated Casino Queen currently has three kiosks and television screens located near the kiosks, but there is no specific sports book area like at the other facilities. With the Bet CQ agreement, the number of kiosks will increase to six to provide increased opportunities for guests who want to bet on retail games. When individuals utilizing the kiosks want to cash out, they will go to the Cashier’s cage.
Hearing no further comments, Chair Andres requested a motion regarding Agenda Item 5A. Commissioner Campbell moved to approve Agenda Item 5A, Second Amendment to Amended and Restated Online Sports Wagering Access Agreement with Fubo Gaming, Inc., as submitted by Casino Queen Marquette, Inc. Commissioner Horbach seconded the motion, which carried unanimously.
Commissioner Amy Burkhart moved to approve Agenda Item 5B, Online Sports Wagering Access Agreement with Bet CQ Iowa LLC, as submitted by Casino Queen Marquette, Inc. Commissioner Campbell seconded the motion, which carried unanimously.
SCE PARTNERS, INC.: Doug Gross, Legal Counsel, addressed the following agenda items.
Request for Approval of Transfer of Real Property between SCE Partners, LLC and SCE Propco, LLC: Mr. Gross advised there would be no change in control or operations.
Request for Approval of Lease Agreement between SCE Partners, LLC and SCE Propco, LLC: Mr. Gross stated if the first item is approved, this item is part of a tax planning effort on behalf of SCE Partners in anticipation of future transactions. It does not presume the result of that transaction. He advised that Missouri River Historical Development has provided a letter advising they do not object to these transactions but does reserve their right to discuss future transactions.
Commissioner Horbach asked if SCE Partners would have no ownership once the sale is complete. Mr. Gross advised that Commissioner Horbach was inquiring about another transaction that the Commission would have to review and approve.
Hearing no further comments, Chair Andres requested a motion. Commissioner Burkhart moved to approve SCE Partners, LLC’s transfer of real property and related real property agreements associated with the Hard Rock Hotel & Casino Sioux City facility to SCE Propco, LLC or another wholly owned subsidiary of SCE, LLC established for the same or substantially similar purpose as SCE Propco, LLC; and to also approve the entry of the Internal Lease Agreement between SCE Partners, LLC and SCE Propco, LLC or another wholly owned subsidiary of SCE, LLC established for the same or substantially similar purpose as SCE Propco, LLC. Commissioner Olsen seconded the motion, which carried unanimously.
HARVEYS BR MANAGEMENT COMPANY, INC. d/b/a HORSESHOE CASINO COUNCIL BLUFFS: Thomas Roberts, General Manager, requested approval for the remodel of the Hilton Garden Inn, noting Horseshoe had been talking about this for about a year. Don Ostert, Director of Operations, distributed a presentation showing what various areas of the hotel would look like following the remodel. Mr. Roberts estimated the cost would be between $10 - $12 million. If the Commission approves this request, Mr. Roberts stated they hope to have the remodel completed in February.
Commissioner Olsen asked if the Commission approves this request whether they would have an opportunity to review contracts with vendors associated with the project. Mr. Roberts advised the contract with the general contractor was the next item on the agenda.
Hearing no further comments or questions, Chair Andres requested a motion. Commissioner Campbell moved to approve the request for remodeling the Hilton Garden Inn as presented. Commissioner Horbach seconded the motion, which carried unanimously.
CONTRACT APPROVALS (OSV – OUT OF STATE VENDOR; RP – RELATED PARTY):
Horseshoe Casino Council Bluffs: Mr. Roberts presented a contract with Pinnacle Construction, Inc. as a construction vendor for Commission approval.
Hearing no comments or questions, Chair Andres requested a motion. Commissioner Horbach moved to approve the contract with Pinnacle Construction, Inc. as submitted by Horseshoe Casino Council Bluffs. Commissioner Burkhart seconded the motion, which carried unanimously.
Harveys Iowa Management Company, Inc.: Mr. Roberts presented a contract with Honeywell International, Inc. as a building material supplier for Commission approval. He advised this was for maintenance items.
Hearing no comments or questions, Chair Andres requested a motion. Commissioner Burkhart moved to approve the contract as submitted by Harveys Iowa Management Company, Inc. Commissioner Horbach seconded the motion, which carried unanimously.
Wild Rose Emmetsburg, L.L.C.: Steve Cody, General Manager, presented a contract with Denison Drywall Contracting, Inc. for drywall repair for Commission approval.
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 Olsen seconded the motion, which carried unanimously.
IOC Black Hawk County, Inc.: Chad Moine, General Manager, presented a contract with Premier Amusement (OSV) for arcade games for Commission approval.
Commissioner Burkhart questioned if the other vendors listed on the request form were Iowa or out-of-state vendors. Mr. Moine noted Betson had been previously approved; however, due to supply issues they were unable to meet the time frame, which is why the arcade games are being rebid. He stated Fischels is an Iowa vendor. They were not able to meet the quantities being requested, and specialize in pool tables and dart boards, which is not what the facility is looking for.
Chair Andres asked for a description of the arcade games being requested. Mr. Moine stated they are traditional arcade games like crane games and video games.
Hearing no further comments or questions, Chair Andres requested a motion. Commissioner Horbach moved to approve the contract as submitted by IOC Black Hawk County, Inc. Commissioner Campbell seconded the motion, which carried unanimously.
Dubuque Racing Association, Ltd.: Brian Rakestraw, Chief Operating Officer, presented the following contracts for Commission approval:
- Creative Artist Agency – Deposit to Artist Agency (OSV)
- Dude Inc. – Payment to Artist (Back Waters Stage) (OSV)
- Out in it Touring LLC – Payment to Artist (Back Waters Stage) (OSV)
Hearing no comments or questions, Chair Andres requested a motion. Commissioner Campbell moved to approve the contracts as submitted by Dubuque Racing Association, Ltd. Commissioner Horbach seconded the motion, which carried unanimously.
Riverside Casino and Golf Resort, LLC: Damon John, General Manager, presented the following contracts for Commission approval:
- Harris Golf Cars – Golf Car Fleet, Utility Cars, Range Car, 6-Passenger Cars
- North Country Business Products – Simphony Micros POS Hardware and Software Upgrade
Hearing no comments or questions, Chair Andres requested a motion. Commissioner Burkhart moved to approve the contracts as submitted by Riverside Casino and Golf Resort, LLC. Commissioner Olsen seconded the motion, which carried unanimously.
Grand Falls Casino Resort, LLC: Sharon Haselhoff, General Manager, presented the following contracts for Commission approval:
- Cummins Allison – Count Room Equipment and Maintenance
- North Country Business Products - Simphony Micros POS Hardware and Software Upgrade
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 Burkhart seconded the motion, which carried unanimously.
Rhythm City Casino, LLC: Mo Hyder, General Manager, presented the following contracts for Commission approval:
- Edward Don – Disposables and Smallwares Purchases
- Executive Services Company LLC – Goods and Services Allocations (RP)
- Hy-Vee – Alcoholic Beverages, Gift Cards and Lottery Tickets
- Iowa Beverage Systems – Beverage Purchases
- North Country Business Products – Simphony Micros POS Hardware and Software Upgrade
- Performance Food Service – Food Purchases
- Prairie Farms Dairy – Dairy and Food Purchases
- Sysco Food Services of Iowa – Food Purchases
- Taxslayer Center – Arena Suite License Agreement (OSV)
- US Postmaster – Postage for Mailers
- USA Entertainment – Booking Agency for Entertainers
- William Morris Endeavor Entertainment, LLC – Booking Agency for Entertainers (OSV)
Hearing no comments or questions, Chair Andres requested a motion. Commissioner Horbach moved to approve the contracts as submitted by Rhythm City Casino, LLC. Commissioner Olsen 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 financial audit. He stated their former financial auditing firm was acquired by UHY International. Mr. Moss stated the benevolence provided to the individuals on the backside includes medical, dental, chiropractic, and prescription reimbursement. This year they are working with Dental Connection, a mobile dental clinic, which comes to the backside of the track to provide dental care. He stated they continue to have a strong partnership with Unity Point, which is located directly across the street from the track. Funds are also provided to help workers on the backside get between tracks.
Mr. Moss stated the law also states they are to promote the industry. They work with the ITBOA to promote the horse industry, which is a $200 million per year industry. The economic impact is provided by trainers, breeders, owners, and those individuals providing support services to the industry. Mr. Moss noted the ITBOA does a monthly newsletter promoting the industry. He advised the fall sale will be coming up. With donations received this year, Mr. Moss stated they continued to support a research project, which is conducted on site. A motion sensor is placed on the horse, which creates a baseline for the horse. It is hoped this technology will help increase the safety and welfare of the horse.
Going forward, one of the new laws increases the fees received from Prairie Meadows from 2% to 4% for the IAHBPA, which will be used to increase the funds available for benevolence; there are a couple of specific areas they want to focus on. Another area of the new law created the Racehorse Aftercare Fund, which will be funded by all fines from 99D licensees. A new simulcasting law was passed, and the IAHBPA is in the process of forming a new non-profit entity. Once that is in place, they will submit a license application.
With regard to racing dates, the current meet is 84 days of racing. Mr. Moss stated Prairie Meadows and the horsemen’s organizations are trying to reach an agreement regarding race dates for next year. He stated they are trying to balance the number of racing days with what they are seeing in the foal crop, which has stabilized in Iowa. He noted that is not the case across the country. He stated they are happy with the number of race dates at this time.
Mr. Moss touched on the implementation of HISA (Horseracing Safety and Integrity Act). He noted there were multiple issues and problems with implementation that are ongoing. He gave credit to the Commission for continuing to hold meetings for all stakeholders to try and work through issues. He stated there are a number of rules that don’t fit the situation. He stated the Commission and Stewards have done a great job in helping to get issues resolved. Mr. Moss stated Senators Grassley and Ernst had sent a letter to the FTC and HISA regarding implementation issues. They are hoping to have a response yet this month. Mr. Moss noted HISA only impacts the Thoroughbreds, not the Quarter Horses so there are two separate sets of rules.
Commissioner Olsen noted the Horsemen’s Assistance was quite large in 2020 and asked for clarification. Mr. Moss stated in 2020 when the pandemic hit, there was no funding for purses; the trainers might have received their day rate, but were not receiving additional funds to help cover day-to-day expenses. The HBPA allocated funds to trainers with horses on the backside at Prairie Meadows. It was a one-time outlay to help out.
Commissioner Burkhart noted the expense report showed a larger number for promotions in 2021 than in 2020. She noted there have been discussions about advertising and the responsibility of promoting race days. She wondered if the promotion money was geared toward attracting crowds. Mr. Moss stated historically racetracks are responsible for drawing patrons to the racetrack and horsemen are responsible for getting horses to the racetrack. He stated the parties have not crossed over those lines, but are having discussions on the matter with the increase in funding. Mr. Moss stated the IHBPA does try to draw individuals to the track they feel may be interested in investing in horses.
Commissioner Campbell noted part of the discussion in meetings earlier this year was keeping the races full as field size had dropped, and inquired if they had improved this year. Mr. Moss advised the field size has dropped slightly but not as much as last year. He noted the drop in field size is part of an overall trend across the country as there is less racing and fewer horses. Mr. Moss stated the IHBPA is trying to keep racing vibrant and alive in Iowa by running more Iowa-bred races. He noted the Symposium on Racing had a panel on this topic 3-4 years ago which showed that more tracks were relying on state-bred races than on open races that require horses to be shipped in to race at a racetrack. Mr. Moss stated the number of horses has dropped from approximately 50,000 horses bred in a year to 18,500 last year. He stated the IHBPA is trying to stabilize the local population and incentivize individuals to invest in Iowa-bred horses, which will get the racing industry through these tumultuous times. He stated they are in discussions with Prairie Meadows regarding race dates for next year. Mr. Moss noted the thoroughbreds are limited to the same number of stalls at the beginning of the meet that they have the last two months of the meet, which makes it difficult to fill field sizes and have a robust racing product.
Iowa Quarter Horse Racing Association: Troi Mulford, Treasurer, in response to a previous question from Commissioner Horbach about the audit only reflecting numbers for 2021 versus a comparison between 2020 and 2021, stated she would prefer to see a comparison and didn’t understand why the auditing company did not do so. She stated she would speak to them and have them prepare an additional report if the Commission would like.
Commissioner Horbach asked how they are doing compared to last year. Ms. Mulford stated they are doing very well considering their development fees were drastically reduced last year. She noted the IQHRA is very low budget compared to the IAHBPA. The fees are back up this year, and with some funds set aside, they were able to maintain programs. With the fees increasing again, they are trying to help the quarter horse workers on the backside during the Festival of Racing by providing a meal following the quarter horse races. Ms. Mulford advised they do some traveling to promote the Iowa stakes races.
Iowa Harness Racing Association: Mr. Ohorilko advised Chair Andres he had been informed the individual who was to attend was unable to do so, and an attempt to locate a replacement was unsuccessful. Mr. Ohorilko stated he would inform the IQHRA to attend the August meeting.
HEARINGS: Chair Andres called on Mr. Ohorilko to address the hearings before the Commission.
Betfair Interactive US LLC, Inc.: Mr. Ohorilko advised that Betfair Interactive, which does business as FanDuel, and Commission staff have entered into a Stipulated Agreement for a violation of Iowa Code § 99F.9(7) relating to the use of credit cards. He stated this is a two-count violation. The two counts are related but occurred at different times. The first count is related to FanDuel’s technology provider, Sightline, allowing deposits in the system via a credit card. Sightline failed to properly restrict credit transactions due to incorrect coding in their system. Commission staff contacted FanDuel after being made aware of a potential issue. FanDuel conducted an audit and determined they had accepted 2,551 credit card transactions amounting to approximately $459,000 over a one-year time frame. In the second count, FanDuel self-reported another failure in the coding of credit card transactions, and another transaction occurred in the amount of $46.00. Mr. Ohorilko stated FanDuel has agreed to an administrative penalty up to $75,000.
Alex Wolf, State Regulatory Compliance Senior Counsel, stated the company always adheres to the letter and spirit of the law, even when it involves third-party providers. He stated the error by a third-party provider is upsetting to them. Mr. Wolf stated Betfair Interactive took the extreme step of cutting ties with Sightline as a payment option in the State of Iowa. Secondly, they have confirmed with their other payment partners that they will not accept credit card payments. He stated they are conducting independent auditing of the payment processors to ensure that what they are being told is what is actually occurring. Mr. Wolf stated a fine is appropriate under the circumstances, but requested the fine be reduced to $45,000 due to the remedial steps taken by the company. He noted that Sightline has taken corrective measure as well.
Commissioner Burkhart asked if the fine amount of up to $75,000 was broken down based on the two counts. Mr. Ohorilko stated the thought process was that Count 1 would be up to $60,000, and Count 2 up to $15,000. He noted there are three additional companies that have been offered fines up to $60,000 for situations similar to Count 1.
Commissioner Olsen asked if it was correct that Commission staff notified Betfair of the potential risk. Mr. Wolf stated, to the best of his recollection, that Commission staff asked them to look at the situation. He indicated Sightline reported the situation to the Commission prior to alerting Betfair.
Mr. Ohorilko stated he did not believe this situation would have been discovered if Commission staff had not notified all of the licensees and Sightline; he is not sure which occurred first. He stated the situation was found due to audits conducted with other operators in the State of Iowa. Mr. Wolf advised they could review their records, but does not believe they were warned in advance that Sightline had allowed the transactions. Mr. Ohorilko stated that was correct.
Commissioner Burkhart asked if Iowa law differs from other states as it applies to accepting credit card transactions. Mr. Ohorilko advised that Iowa law is more restrictive than many other states. Iowa law prohibits the use of credit cards. In 2019, the law did not prohibit the use of credit cards; however, that was changed by the Legislature in 2020.
Commissioner Campbell asked if all vendors were notified when the change was made by the Legislature. Mr. Ohorilko answered in the affirmative, noting there were two or three pieces of correspondence that was sent to all licensees. He stated all licensees were aware of the change, and noted a number of the companies in the Tier 1 category actively lobbied against the legislation.
Mr. Wolf stated that everything set forth in the Stipulation was the result of an error on the part of Sightline. It was Betfair’s understanding from Sightline’s representations to them that they were not allowing credit cards to be processed. He reiterations that Betfair had severed their ties with Sightline.
Commissioner Campbell moved to approve the Stipulated Agreement with an administrative penalty of $75,000. Commissioner Olsen seconded the motion, which carried unanimously.
PointsBet Iowa LLC: Mr. Ohorilko stated Commission staff and PointsBet Iowa LLC have entered into a Stipulated Agreement for a violation of Iowa Code § 99F.9(4)“b” and 99F.13 (Audit) and Iowa Code § 99F.1(28) (Unauthorized Wager), and advised it is a three-count violation. He noted these are unrelated issues. Count 1 involves an event held on July 25th during the Olympics. PointsBet offered markets for individual events that included athletes under the age of 18, which is prohibited by Iowa Code. There were approximately 25 wagers totaling $666. He noted PointsBet discovered the violations and reported them to the Commission. PointsBet had received a prior warning for a similar unauthorized event not specifically prohibited by statute. Mr. Ohorilko stated Counts 2 and 3 involve the external audit that is required under Iowa law. Count 2 deals with the audit the Commission received, which was incomplete. Count 3 is for a late audit, which was provided 49 days late as set forth in Count 2. PointsBet took an additional 165 days to provide the remaining information. Mr. Ohorilko noted PointsBet has undertaken certain remedial actions to correct the situation which are outlined in the Stipulated Agreement. Mr. Ohorilko stated PointsBet has agreed to pay the following administrative penalties: Count I - up to $5,000; Count 2 – up to $10,000 and up to $10,000 for Count 3.
Commissioner Campbell asked what caused the delay in filing the audit. Andrew Moreno, Senior Director of Regulatory Operations, stated this matter preceded his arrival at PointsBet, but advised it appeared to be a lack of communication with the auditor. He does not feel this will be an issue going forward.
Chair Andres asked Mr. Moreno to discuss some of the other steps taken by PointsBet to prevent similar situations from occurring. With regard to the unauthorized wagering, Mr. Moreno stated they made a severe commitment to training the traders in Australia, Ireland and the United States to make sure they are aware of all of the restrictions across all jurisdictions. They have stepped up their education and are holding people accountable.
Hearing no further comments or questions, Chair Andres requested a motion. Commissioner Olsen moved to approve the Stipulated Agreement with the following administrative penalties: Count 1 - $5,000; Count 2 - $10,000 and Count 3 - $10,000 for a total of $25,000. Commissioner Burkhart seconded the motion, which carried unanimously.
Diamond Jo, LLC: Mr. Ohorilko stated Commission staff and Diamond Jo, LLC have entered into a Stipulated Agreement for a violation of Iowa Code §99F.9(5), which is related to underage gambling. On December 16, 2021, an underage female entered the facility with three companions. She entered the facility unchallenged, left the gaming floor and regained access. The facility discovered the individual later that evening inside the sportsbook, where she appeared to have fallen asleep. Security officers approached her, and contacted the Dubuque Police Department when they were unable to awaken her. The police officers determined she was underage. The underage patron was on the gaming floor unchallenged for approximately 5 hours and did gamble, which triggered the Commission’s Resolution. Mr. Ohorilko stated Diamond Jo, LLC has agreed to an administrative penalty of $20,000.
Wendy Runde, General Manager, advised the facility recognizes that it is a privilege to do business in the State of Iowa, and takes the commitment very seriously. She stated security personnel are constantly receiving training. The most rigorous training occurs during the onboarding process, and every security team member receives additional training on a quarterly basis and one-on-one refresher training with the security manager. Additionally, as incidents or situations occur that present a learning opportunity, those are shared with the security team to help empower the security team to make the best decision at any given time.
Ms. Runde stated they became aware of the minor on the floor on December 17th through an internal investigation, and discovered the individual had been on the floor three out of four days leading up to that incident. On December 14th, the individual presented a fake ID; however, it scanned as valid. The individual was allowed on the gaming floor. They were on the floor for approximately 20 minutes and did not gamble or consume alcohol. On December 16th, the individual returned with three companions. The security officer on duty requested an ID from one of the four, but not this individual. When the team member was interviewed, the team member remembered who they were talking about and mistakenly thought the individual was a known patron of a legal age. The guest was allowed on the floor, and eventually made their way to the Tree Bar. The cocktail waitress did request to see an ID; the same fake ID was presented and scanned as valid. The individual was served an alcoholic beverage and did gamble. The individual returned on December 17th, a different security officer at the turnstiles did not request an ID. When this team member was interviewed; they also thought the individual was someone else and of age; and allowed the individual on the floor. She again made her way to the Tree Bar where the same cocktail server was on duty and did not request an ID as she remembered the guest from the previous day. At that time, the guest proceeded to the sportsbook where she fell asleep. Ms. Runde noted the above is far from a perfect execution of policies, but noted that through the investigation process, from the glass half full perspective, she was pleased there was not complete disregard of policies and procedures. There were some steps taken to comply with policies and procedures, but some decisions were not so sound. Ms. Runde stated the incident has been utilized as an opportunity to provide additional training to the security team.
Commissioner Campbell noted the individual used a fake ID that did scan as valid. He asked if the DCI pressed charges. Ms. Runde advised they did not in this case. She noted the ID presented was for an individual 20 years older than her. She stated the person on the ID has aged gracefully, and the individual using the ID does not appear to be as young as she is. Ms. Runde stated she is not sure why they did not push for charges to be filed. In a different incident, where parents knowingly assist an underage person in getting on the gaming floor, charges are being filed.
Commissioner Campbell noted the Commission has discussed this issue at past meetings, and doesn’t like handing out the administrative penalties when the individual behind the situation is not being held accountable.
Commissioner Horbach noted the Division of Criminal Investigation (DCI) did not press charges, but thought he heard the local police department did come to the facility. Ms. Runde stated there was a new supervisor on duty that day, and when they were unsuccessful in awakening the customer, the security supervisor contacted the police department. She is not sure if they pressed charges, but were the ones to discover the individual was not who she was representing herself to be.
Commissioner Horbach reiterated that the police officers were the ones to determine the individual was a minor, and questioned if they were aware she had consumed alcohol. Ms. Runde stated she was not sure that information had been shared with them. She felt it was a quick interaction.
Commissioner Horbach stated the Commission is frustrated by individuals knowingly trying to get the licensees in trouble and the lack of action or filing of charges against those individuals. Ms. Runde stated she failed to follow through on this incident with regard to charges being filed as she was focused on the areas where staff should have done a better job.
Hearing no further comments or questions, Chair Andres requested a motion. Commissioner Horbach moved to approve the Stipulated Agreement with an administrative penalty of $20,000. Commissioner Olsen seconded the motion, which carried unanimously.
IOC Black Hawk County, Inc.: Mr. Ohorilko advised Commission staff and IOC Black Hawk County, Inc. d/b/a Isle Casino Hotel Waterloo have entered into a Stipulated Agreement for a violation of Iowa Code §99F.9(5), which pertains to underage gambling. On February 13, 2022, a 20-year old male patron entered the gaming floor with a companion unchallenged. The individual was on the gaming floor for 3 hours and 28 minutes, and gambled at multiple machines. Mr. Ohorilko stated IOC Black Hawk County, Inc. acknowledges the facts as set forth and has agreed to an administrative penalty of $20,000.
Mr. Moine stated the minor was accompanied by two individuals of age, and was able to make his way through the turnstile. He stated they interviewed the security officer, who had been with the facility for some time and had previously caught minors, stationed at the turnstile when this incident occurred. The security officer was nonchalant and stated “It is what it is.” When the security officer was asked if the training was adequate or there was anything different the facility could have done to help him prevent the incident, the security officer stated the training was adequate and there was nothing the facility could have done differently to help him in this situation. Mr. Moine stated the minor left the gaming floor and attempted to re-enter later that evening. He was stopped by a different security officer and was caught at that time.
Commissioner Burkhart asked if there is a baseline age set out in the training which would trigger an individual being asked for identification. Mr. Moine answered in the affirmative, advising that anyone appearing to be 35 and under is to be asked to present identification. If the individual is 25 or younger, they are asked for two forms of identification.
Hearing no further comments or questions, Chair Andres requested a motion. Commissioner Burkhart moved to approve the Stipulated Agreement with an administrative penalty of $20,000. Commissioner Campbell seconded the motion, which carried unanimously.
PUBLIC COMMENT/ADMINISTRATIVE BUSINESS: As there was no Public Comment, Chair Andres moved to Administrative Business. Mr. Ohorilko requested approval of the revised regulatory fees for Fiscal Year 2023 for IRGC and the DCI. He noted staff received final numbers from the Department of Management, which included the salary adjustment of $100,175. That amount is distributed equally between the licensees.
Commissioner Horbach inquired if the revised fee schedules had been shared with the industry and if any comments had been received. Mr. Ohorilko advised the fees were sent out the previous week, and Commission staff had not received any comments. He noted the DCI fees were just shared with the industry the previous day, but he had not received any comments regarding those fees.
Hearing no comments or questions, Chair Andres requested a motion. Commissioner Horbach moved to approve the revised regulatory fee schedules for the IRGC and DCI as presented. Commissioner Campbell seconded the motion, which carried unanimously.
ELECTION OF CHAIR AND VICE CHAIR: Chair Andres noted Iowa Code requires the Commission to elect a Chair and Vice Chair in July each year. She requested nominations for Chair. Commissioner Olsen nominated Julie Andres to serve as Chair. Commissioner Campbell seconded the nomination, which carried unanimously.
Commissioner Burkhart nominated Daryl Olsen to serve as Vice Chair. Commissioner Campbell seconded the motion, which carried unanimously.
ADJOURN: Chair Andres requested a motion to adjourn. Commissioner Horbach so moved. Commissioner Burkart seconded the motion, which carried unanimously.