IRGC Meeting - Dubuque

Meeting Time: Thursday, November 18, 2021
Meeting Location

Diamond Jo Casino
301 Bell Street
Dubuque , IA 52001

Meeting Agenda Document:
Meeting Agenda

1.APPROVE AGENDA
2.WELCOME – Wendy Runde, General Manager; Roy Buol, Mayor; Alex Dixon, Chief Executive Officer of Dubuque Racing Association, Ltd.
3.APPROVE MINUTES – From October 21, 2021 Commission Meeting
4.ANNOUNCEMENTS
A. December – No Meeting
B. January 13, 2022 – Prairie Meadows Racetrack & Casino, Altoona
C. February 2022 – No Meeting
5.CQ HOLDING COMPANY, INC. – Request for Approval of Financing Pursuant to
491 IAC 5.4(8)“a”(2) (Parent Company of Casino Queen Marquette, Inc.)
6. ADVANCE DEPOSIT SPORTS WAGERING OPERATOR AGREEMENT –
Riverside Casino and Golf Resort, LLC – First Amendment to Online Access Agreement with WSI US, LLC
7. CONTRACT APPROVALS (OSV – OUT OF STATE VENDOR; RP – RELATED PARTY)
A. Dubuque Racing Association, Ltd.
1.Bristol & Associates – Recruitment Fees for New President and CEO (OSV)
2.Iowa Greyhound Association, LLC – Second Amendment to Sublease Agreement
3.The Printer, Inc. – Direct Mail and Printing Services
4.The Lamar Companies – Outdoor Billboard Advertising
B. HGI-Lakeside, LLC d/b/a Lakeside Hotel & Casino
1.AJR Equities, Inc. – Marketing Promotional Giveaway Items
2.Bud Jones Construction, Inc. – Repairs & Maintenance for Property
3.Jay Edward Group, LLC – Lighting & Lights for the Remodel (OSV)
4.K2J Marketing – Marketing Promotional Giveaway Items (OSV)
5.KCCI – Advertising
6.Kohl’s Wholesale – Food Produce & Supplies for Restaurant (OSV)
7.Principal Financial Group – 401K for Employees
8.Sysco Iowa, Inc. – Purchase Food & Supplies
C. Riverside Casino and Golf Resort, LLC
1.Carrier Access IT, LLC – Pure Storage Flash Array 44TB Hardware/Software
2.Mark-it-Smart – Continuity and Promotion Agreements (OSV)
3.MedOne Healthcare Systems – Prescription Drug Benefit Plan
4.Mercy Iowa City – Medical Health Plan Costs
5.Performance Food Service – Specialty Food Purchases
6.Principal Financial Group – 401K Plan Record Keeper/Custodian
7.Sonifi Solutions, Inc. – Public Viewing and NFL Sunday Ticket (OSV)
8.USPS – Postage
D. Rhythm City Casino, LLC
1.Guest Supply (A Sysco Company) – Hotel Room Supplies & Linens
2.HyVee – Alcoholic Beverages, Gift Cards & Lottery Tickets
3.Kwik Trip, Inc. – Kwik Trip Gift Cards
4.Luxottica of America – Oakley Sunglasses/Clothes for Gift Shop Resale (OSV)
5.OnMedia Quad Cities, IA/IL – Digital Advertising (OSV)
6.Performance Food Service – Food Purchases
7.Principal Financial Group – 401K Plan Record Keeper/Custodian
8.SVS (Stored Value Solutions) – BP Gas Station Gift Cards
9.Sysco Food Services of Iowa – Food Purchases
10.Video Security Specialists – Surveillance Equipment & Software (OSV)
11.Unum Life Insurance Company – Employee Supplemental Life Insurance (OSV)
E. Grand Falls Casino Resort, LLC
1.Billion Automotive – Marketing & Slot Promotions
2.Iowa Alcoholic Beverages Division – Alcoholic Beverage Purchases
3.Principal Financial Group – 401K Plan Record Keeper/Custodian
F. Ameristar Casino Council Bluffs, LLC
1.CDW Direct, LLC – Slot Switches – (OSV)
2.Metropolitan Entertainment & Convention Authority (MECA) – 5-Year TD Ameritrade Park Omaha Club Seat License Agreement (OSV)
G. SCE Partners, LLC – Goat Rodeo Productions – Commercial Shoot and Still Shots (OSV)
H. Diamond Jo Worth, LLC – Coremark – Convenience Store and Food Service Distributor
I. Wild Rose Clinton, L.L.C.
1.ShiveHattery Architecture + Engineering – Architect for Sportsbook Remodeling
2.Table Trac, Inc. – Casino Management Systems (OSV)
3.DraftKings – Sports Partner (OSV)
J. Wild Rose Emmetsburg, L.L.C.
1.Premier Mechanical Services, Inc. – Replace HVAC Unit #1 & Other General Repairs and Maintenance
2.Table Trac, Inc. – Annual Payment & Monthly Maintenance Fees for Casino Tracking System (OSV)
3.DraftKings, Inc. – Revenue Sharing for Retails Sports Wagering (OSV)
4.Reinhart Food Service – Food Service for All Venues
K. Wild Rose Jefferson, L.L.C.
1.Liebl Marketing Group – Marketing/Advertising Buyer
2.Table Trac, Inc. – Annual Payment & Monthly Maintenance Fees for Casino Tracking System (OSV)
3.DraftKings, Inc. – Revenue Sharing for Retail Sports Wagering (OSV)
L. IOC Bettendorf, L.C. – Data Business Equipment, Inc. – Capital Project to Purchase Count Room Equipment
8.HEARING -Wild Rose Clinton, L.L.C. -For a violation of Iowa Code § 99F.4(22) (Self-Exclusion)
9.PUBLIC COMMENT
10.ADMINISTRATIVE BUSINESS -Appointment of Administrator
11.ADJOURN

Meeting Minutes Document:
Meeting Minutes

The Iowa Racing and Gaming Commission (IRGC) met on Thursday, November 18, 2021 at Diamond Jo Casino in Dubuque, Iowa.  Commission members present were Julie Andres, Chair; Daryl Olsen, Vice Chair; and members Mark Campbell and Lance Horbach.

APPROVE AGENDA: Chair Andres called the meeting to order at 8:30 AM, 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: Wendy Runde, General Manager, welcomed the Commission to Dubuque and the property.  She introduced Roy Buol, the Mayor of Dubuque.  She stated he has been the mayor for 16 years, and will be retiring on December 31st.  Mr. Buol welcomed the Commission to Dubuque. When reflecting on the past 16 years, and the ten previous years when he served on the City Council, he is grateful for the collaborative way the Dubuque Racing Association (DRA), Diamond Jo Casino and the Q Casino have contributed to the transformation of Dubuque. He noted that as a Dubuque native, he is keenly aware of the challenges the community has faced and the partnerships that were formed to address them.  Mr. Buol stated the gaming industry has played a key role in Dubuque’s transformation into becoming a masterpiece on the Mississippi.  The most obvious recognition is in the two facilities that welcome visitors and residents; the Diamond Jo and Q Casino are regional and community assets.  He stated the Diamond Jo riverboat was an iconic pioneer; however, he feels everyone can agree the current facility is a unique facility.  The economic, employment and recreational impacts of both facilities have been extraordinary; generations of Dubuque residents and regional residents have been employed in the gaming industry and the impact of the associated payroll on the regional economy continues to be significant.  From inception, these two facilities have played a role in the diversification of Dubuque’s economy and the mutually beneficial relationship between the two properties with many associated businesses is important and essential.  Mr. Buol stated the Diamond Jo and Q Casino have prioritized community engagement through financial support of countless events and organizations; and most importantly, support volunteerism and city involvement among their employees.  He stated gaming revenues received by the city have been critical to efforts to make strategic investments in critical infrastructure while keeping the city’s portion of property taxes at the second lowest within Iowa’s eleven largest cities.  Further, the DRA, with the financial support of the Diamond Jo and Q Casino, has been a major player assisting those most impacted by the Covid-19 pandemic by contributing to the Community Foundation of Greater Dubuque and United Way Covid Impact Fund.  Mr. Buol stated DRA financed the $3 million plus renovation of the Veteran’s Memorial.  He advised new gaming options such as sports wagering have brought new visitors to Dubuque who are interested in the Diamond Jo’s FanDuel and Q’s sportsbook.  Innovations such as these are important as the city prepares for the conclusion of greyhound racing.  He expressed the city’s gratitude for the workers and support of the sport since its inception. 

Mr. Buol stated public and private partnerships are the hallmark of Dubuque’s transformation and is grateful for the partnerships with the Diamond Jo and Q Casino, as well as the support of the IRGC. He requested their continued support to protect important investments that have contributed to the quality of life in the community, and particularly as gaming expansion happened around Dubuque.  He noted a temporary casino will soon open in Rockford, IL and operate while the permanent structure is built.  Furthermore, Ho-Chunk is expanding in Wisconsin, and Cedar Rapids just passed a gaming referendum, and are pressing hard for a new license.  He thanked the Commission for their exemplary service, and stated it has been an honor and privilege to partner with them.

Alex Dixon, President of the DRA, stated they are excited to speak on behalf of the Diamond Jo.  He noted Diamond Jo and Q Casino are competitors within the industry, but collaborate to make an impact within the community.  He stated Diamond Jo has been led by Wendy Runde, who has been a phenomenal advocate for the community and gaming, and expressed his gratitude for both her personal contributions, and those of the Diamond Jo.  Mr. Dixon stated Boyd Corporation, and the Diamond Jo, do much above and beyond what is required and in addition to their contributions to the DRA as the qualified sponsoring organization. He provided a few highlights of those contributions. 

APPROVE MINUTES: Chair Andres moved to the approval of the minutes from the October 21, 2021 Commission meeting.  Commissioner Horbach moved to approve the minutes as submitted.  Commissioner Campbell seconded the motion, which carried unanimously.

ANNOUNCEMENTS: Brian Ohorilko, Administrator, advised there would be no meeting in December.  The next Commission meeting will be held on January 13, 2022 at Prairie Meadows Racetrack and Casino in Altoona.  Submissions for that meeting are due in the Des Moines office two weeks prior to the meeting.  There will be no meeting in February.

Mr. Ohorilko recognized the following IRGC staff: Scott Franke, Gaming Representative for the Diamond Jo Casino; Joe Gau and Tracy Potter, Gaming Representatives at Q Casino, and Cathy Dillon, the licensing assistant for both facilities.  He thanked them for their work on behalf of the Commission.

CQ HOLDING COMPANY, INC.: Bradley McAllister, legal counsel representing CQ Holding Company, Inc., requested approval of debt financing.  The credit agreement would be for $34 million in senior secured notes consisting of a $29 million term loan and $5 million revolving credit facility.  Funds will be used for the acquisition of two gaming boats in Baton Rouge, Louisiana, and the revolving credit will be used to pay down existing debt to Standard General.  He stated the interest rate would be between 3–4 % depending on the total net leverage position of the company.

Commissioner Olsen noted the loan was to cover the purchase of two boats. He asked if one would then be coming to Iowa.  Mr.  McAllister answered in the affirmative.  Commissioner Olsen inquired what would happen with the current boat.  Mr. McAllister stated he did not know.

Hearing no further comments or questions, Chair Andres requested a motion.  Commissioner Olsen moved to approve the request for approval of debt financing as presented by CQ Holding Company, Inc.  Commissioner Horbach seconded the motion, which carried unanimously.

ADVANCE DEPOSIT SPORTS WAGERING OPERATOR AGREEMENT: Damon John, Director of Marketing, requested approval of the First Amendment to Online Access Agreement between Riverside Casino & Golf Resort, LLC and WSI US, LLC (Wynn).

Hearing no comments or questions, Chair Andres requested a motion.  Commissioner Campbell moved to approve the First Amendment to Online Access Agreement between Riverside Casino & Golf Resort, LLC and WSI US, LLC as presented.  Commissioner Horbach seconded the motion, which carried unanimously. 

CONTRACT APPROVALS (OSV – OUT-OF-STATE VENDOR; RP – RELATED PARTY):

Commissioner Horbach noted that approval of contracts during the meeting is uneventful as the staff performs extensive verification prior to the meeting as the Commission wants to ensure the owners and managers are utilizing Iowa vendors when possible.  While there are no problems with the contracts submitted for approval today, there is the possibility that some contracts may not be approved in the future.  He noted the properties have the discretion whether to use an Iowa vendor or not, but the Commission has the option to decline to approve an   out-of-state vendor if they feel an Iowa vender is available.

Dubuque Racing Association: Brian Rakestraw, General Manager, presented the following contracts for Commission approval:

  • Bristol & Associates – Recruitment Fees for New President and CEO (OSV)
  • Iowa Greyhound Association, LLC – Second Amendment to Sublease Agreement
  • The Printer, Inc. – Direct Mail and Printing Services
  • The Lamar Companies – Outdoor Billboard Advertising

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

HGI-Lakeside, LLC d/b/a Lakeside Hotel & Casino: Kirk Pfister, Director of Hospitality, presented the following contracts for Commission approval:

  • AJR Equities, Inc. – Marketing Promotional Giveaway Items
  • Bud Jones Construction, Inc. – Repairs & Maintenance for Property
  • Jay Edward Group, LLC – Lighting & Lights for the Remodel (OSV)
  • K2J Marketing – Marketing Promotional Giveaway Items (OSV)
  • KCCI – Advertising
  • Kohl’s Wholesale – Food Produce & Supplies for Restaurant (OSV)
  • Principal Financial Group – 401K for Employees
  • Sysco Iowa, Inc. – Purchase Food & Supplies

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

Riverside Casino & Golf Resort, LLC: Mr. John presented the following contracts for Commission approval:

  • Carrier Access IT, LLC – Pure Storage Flash Array 44TB Hardware/Software
  • Mark-it-Smart – Continuity and Promotion Agreements (OSV)
  • MedOne Healthcare Systems – Prescription Drug Benefit Plan
  • Mercy Iowa City – Medical Health Plan Costs
  • Performance Food Service – Specialty Food Purchases
  • Principal Financial Group – 401K Plan Record Keeper/Custodian
  • Sonifi Solutions, Inc. – Public Viewing and NFL Sunday Ticket (OSV)
  • USPS – Postage

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

Rhythm City Casino, LLC: Mo Hyder, General Manager, presented the following contracts for Commission approval:

  • Guest Supply (A Sysco Company) – Hotel Room Supplies & Linens
  • Hy-Vee – Alcoholic Beverages, Gift Cards & Lottery Tickets
  • Kwik Trip, Inc. – Kwik Trip Gift Cards
  • Luxottica of America – Oakley Sunglasses/Clothes for Gift Shop Resale (OSV)
  • OnMedia Quad Cities, IA/IL – Digital Advertising (OSV)
  • Performance Food Service – Food Purchases
  • Principal Financial Group – 401K Plan Record Keeper/Custodian
  • SVS (Stored Value Solutions) – BP Gas Station Gift Cards
  • Sysco Food Services of Iowa – Food Purchases
  • Video Security Specialists – Surveillance Equipment & Software (OSV)
  • Unum Life Insurance Company – Employee Supplemental Life Insurance (OSV)

Hearing no comments or questions, Chair Andres requested a motion.  Commissioner Olsen moved to approve the contracts as submitted Rhythm City Casino.  Commissioner Horbach seconded the motion, which carried unanimously.

Grand Falls Casino Resort, LLC:  Sharon Haselhoff, General Manager, presented the following contracts for Commission approval:

  • Billion Automotive – Marketing & Slot Promotions
  • Iowa Alcoholic Beverages Division – Alcoholic Beverage Purchases
  • Principal Financial Group – 401K Plan Record Keeper/Custodian

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

Ms. Haselhoff advised new carpet has been installed throughout facility.  The install was completed in two weeks, and looks great.  She also noted the facility had an employee recognized at the Iowa Restaurant Association’s Iowa Hospitality Showcase.  Katie Lovstad, former Food & Beverage Director, and currently a bartender and part-time Beverage Supervisor, was recognized as one of the 2021 40 Women to Watch in the Hospitality Industry.

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

  • CDW Direct, LLC – Slot Switches – (OSV)
  • Metropolitan Entertainment & Convention Authority (MECA) – 5-Year TD Ameritrade Park Omaha Club Seat License Agreement (OSV)
     

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

SCE Partners, LLC: Doug Fisher, General Manager, presented a contract with Goat Rodeo Productions for Commercial Shoot and Still Shots (OSV).

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

Diamond Jo Worth, LLC (DJW): Scott Smith, General Manager, presented a contract with Coremark as a Convenience Store and Food Service Distributor.

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

Wild Rose Clinton, L.L.C.: Steve Nauman, General Manager, presented the following contracts for Commission approval:

  • ShiveHattery Architecture + Engineering – Architect for Sportsbook Remodeling
  • Table Trac, Inc. – Casino Management Systems (OSV)
  • DraftKings – Sports Partner (OSV)

Hearing no comments or questions, Chair Andres requested a motion.  Commissioner Horbach moved to approve the contracts as presented by WRC.  Commissioner Olsen seconded the motion, which carried unanimously.

Wild Rose Emmetsburg, L.L.C. (WRE): Steve Cody, General Manager, presented the following contracts for Commission approval:

  • Premier Mechanical Services, Inc. – Replace HVAC Unit #1 & Other General Repairs and Maintenance
  • Table Trac, Inc. – Annual Payment & Monthly Maintenance Fees for Casino Tracking System (OSV)
  • DraftKings, Inc. – Revenue Sharing for Retails Sports Wagering (OSV)
  • Reinhart Food Service – Food Service for All Venues

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

Wild Rose Jefferson, L.L.C. (WRJ): Mr. Cody presented the following contracts for Commission approval:

  • Liebl Marketing Group – Marketing/Advertising Buyer
  • Table Trac, Inc. – Annual Payment & Monthly Maintenance Fees for Casino Tracking System (OSV)
  • DraftKings, Inc. – Revenue Sharing for Retail Sports Wagering (OSV)

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

IOC Bettendorf, L.C. (IOCB): Nancy Ballenger, General Manager, presented a contract with Data Business Equipment, Inc. to purchase count room equipment.

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

Ms. Ballenger advised that Matt Meadows, Director of Food & Beverage, was named Mentor of the Year for overseeing ProStart, a program that works with high schools to help youth understand the opportunities available to them in the culinary industry. She stated the property hosted four high school teams for a cook-off competition.

Commissioner Horbach thanked the facilities for all of the decisions made that were pro-Iowa. He stated the facilities are making the right decisions, and the Commission would like to see that trend continue.

HEARING: Mr. Ohorilko advised that Commission staff and Wild Rose Clinton, L.L.C. had entered into a Stipulated Agreement for a violation of Iowa Code § 99F.4(22) (Self-Exclusion). On March 22nd, a self-excluded individual contacted Wild Rose and indicated they had received promotional mailings. Upon investigation into the matter, it was determined that there twelve individuals that had received the promotional mailing, and four had received a second promotional mailing after the grace period that is provided to remove names from the internal Players Club database.  In reviewing those twelve instances, there were mailings that went out in December 2019 to October 2020.  Mr. Ohorilko advised there was a prior violation of the self-exclusion resolution related to timely downloads of the database in January 2020.  As a result of this violation, Mr. Ohorilko advised Wild Rose Clinton has agreed to an administrative penalty between the amounts of $5,000 - $20,000.

Mr. Nauman advised the facility takes responsible gaming and the self-exclusion program very seriously.  He stated the individual responsible for pulling the mailing list missed the step that would exclude banned players, and the backup process also failed.  He stated staff has been retrained, and they added another step to tighten the process.  Two individuals now review the list to ensure banned individuals are excluded.  The individual pulling the list also has a flag on the computer as a reminder to exclude the banned individuals.

Hearing no comments or questions, Chair Andres requested a motion.  Commissioner Campbell moved to approve the Stipulated Agreement with an administrative penalty of $10,000.  Commissioner Olsen seconded the motion, which carried unanimously.

PUBLIC COMMENT: Emily Hanson, Executive Director of the Black Hawk County Gaming Association (BHCGA), which is the qualified sponsoring organization (qso) affiliated with Isle Casino Hotel Waterloo, invited the Commissioners to a reception on January 12th from 5:00 to 6:30 PM at Prairie Meadows.  This will be an informal get-together to share some of the great work the various qsos are doing with the Commissioners and staff.  She stated the BHCGA has allocated $60 million to projects in 51 cities across northeast Iowa over the last 14 years.  Ms. Hanson stated five other qsos have committed to joining the reception and all are looking forward to sharing their impact and appreciation with the IRGC.

Wes Ehrecke, President of the Iowa Gaming Association, distributed copies of the annual Iowa Gaming Association collaborative pieces prepared for the legislators, media and other organizations which shows the distribution of the gaming tax revenue.  The other handout highlights the state-licensed facilities and the restaurants and other amenities offered at the respective properties.

Commissioner Campbell thanked Mr. Ehrecke for the information as it tells a story that is not told.  He stated he believes the gaming industry is the single largest revenue generator for the state other than income taxes. 

ADMINISTRATIVE BUSINESS: Commissioner Olsen stated the term of the Administrator is for four years, and Mr. Ohorilko’s current term will expire in the near future.  He stated the Commission is very fortunate to have Mr. Ohorilko as the Administrator.  He has an excellent working relationship with the casinos and the Commission, and handles difficult situations very well.  Commissioner Olsen moved to reappoint Brian Ohorilko as Administrator of the Iowa Racing & Gaming Commission for another four year term.  Commissioner Horbach seconded the motion, which carried unanimously.

Mr. Ohorilko thanked the Commissioners, stating it is a pleasure to serve.

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