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IRGC Meeting - Bettendorf

Meeting Time: Thursday, November 19, 2020
Meeting Location

Isle of Capri Bettendorf
1777 Isle Parkway
Bettendorf , IA 52722

Meeting Agenda Document:
Meeting Agenda

1.APPROVE AGENDA
2.WELCOME – The Honorable Bob Gallagher, Mayor, City of Bettendorf; Ann Kappeler, President, Scott County Regional Authority
3.APPROVE MINUTES – From October 14-15, 2020 Commission Meeting
4.ANNOUNCEMENT
A. December, 2020 – No Meeting
B. January 21, 2021 – Prairie Meadows Racetrack & Casino, Altoona (Submissions due by January 7, 2021)
5.RULES – Notice of Intended Action (See Attached)
6.ADVANCED DEPOSIT SPORTS WAGERING OPERATOR AGREEMENTS
A. Casino Queen Marquette, Inc. -Vigtory, Inc.
B. Rhythm City Casino, LLC – Rushmore Gaming, LLC
C. Rhythm City Casino, LLC – BettHouse, Inc.
D. Grand Falls Casino, LLC – Twin River Management Group, Inc.
E. Riverside Casino & Golf Resort, LLC – WSI US, LLC
7.HARVEYS IOWA MANAGEMENT COMPANY LLC – Request for Remodeling pursuant to 491-5.4(15)
8.RIVERSIDE CASINO & GOLF RESORT, LLC – Approval of Revised Security Plan
9.CLINTON COUNTY DEVELOPMENT ASSOCIATION – Request for Consideration on Qualified Sponsoring Organization Good Governance Measures
10.CONTRACT APPROVALS (OSV – OUT OF STATE VENDOR; RP – RELATED PARTY)
A. IOC Bettendorf, L.C.
1.Metronet, Inc. – Fiber Internet
2.Sonifi Solutions, Inc. – Hotel In-Room TV Guide and Cable Services
B. Wild Rose Clinton, L.L.C. – USA Security – Upgrading Surveillance Equipment
C. HGI-Lakeside, LLC – Cummins Allison – MPX 8215 Count Machine & Maintenance Agreements
D. SCE Partners, LLC
1.Sioux Laundry, Inc. – Laundry Services
2.The Printer, Inc. – Printing Services
E. Riverside Casino & Golf Resort, LLC
1.Biometrica Systems Inc. – Surveillance Information Network License Agreement (OSV)
2.CDW, LLC – Hardware/Software Upgrades and Licenses (OSV)
3.Global Payments Gaming Services, Inc. – Cash Advance Credit/Debit Card Processing Revenue Agreement (OSV)
4.Lamar Companies – Outdoor Advertising Billboards
5.MedOne Healthcare Systems – Prescription Drug Benefit Plan
6.PaulMolly Advertising – Digital, TV & Radio Advertising
7.USPS – Postage Expense
F. Rhythm City Casino, LLC
1.Performance Food Service – Food Purchases
2.TJX Companies – TJ Maxx/Home Goods/Marshalls Gift Cards
G. Harveys Iowa Management Company LLC
1.Document Imaging Systems – PPE Supplier (OSV)
2.Premier Glazer’s Beer & Beverage, LLC – Alcohol Vendor
3.Ticketmaster/Live Nation – Ticket Sales
H. Iowa West Racing Association d/b/a Horseshoe Casino
1.Document Imaging Systems – PPE Supplier (OSV)
2.Premier Glazer’s Beer & Beverage, LLC – Alcohol Vendor
11.HEARINGS
1.Points Bet Iowa LLC -For a violation of Iowa Code § 99F.4(22) (Self-Exclusion
2.Betfred Sports (Iowa) LLC -For a violation of Iowa Code § 99F.4(22) (Self-Exclusion)
12.PUBLIC COMMENT
13.ADMINISTRATIVE BUSINESS
14.ADJOURN

Meeting Minutes Document:
Meeting Minutes

The Iowa Racing and Gaming Commission (IRGC) met at the Isle of Capri Bettendorf in Bettendorf, Iowa on November 19, 2020.  Commission members present were Kris Kramer, Chair; Pennie Gonseth Cheers, Vice Chair; and members Julie Andres, Lance Horbach and Daryl Olsen.

APPROVE AGENDA:  Chair Kramer called the meeting to order at 8:30 AM, and requested a motion to approve the agenda.  Commissioner Andres moved to approve the agenda as presented.  Commissioner Horbach seconded the motion, which carried unanimously.

WELCOME: Mayor Bob Gallagher stated the facility has been a great partner since riverboat gaming came to Bettendorf.  Each operator has worked to develop private/public partnerships, and continue to work on issues that face the casinos in the area.  Mayor Gallagher introduced Ann Kappeler, President of the Scott County Regional Authority (SCRA).

Ms. Kappeler welcomed the Commission to Bettendorf and the Quad Cities Convention Center, noting the SCRA was proud to contribute to the building of the facility.  She thanked the Commission for their oversight of the industry.  Ms. Kappeler stated SCRA divides their funds into three sections: non-profit, government, and education. Since SCRA’s inception in 1991, they have provided $89,111,216 to the community. Ms. Kaeppeler stated SCRA recently funded a partnership between the City of Bettendorf and the Pleasant Valley School District to build tennis courts, pickle ball courts and parking in a unique area where the school district is building a new school.  The city is developing a new park.  She noted they have partnered with the River Bend Food Bank since 2013, and have provided $588,000 to support food issues within the community.  SCRA will also be providing them an additional $50,000 to improve their refrigeration units so perishable foods can be part of the food service provided to the community.  Ms. Kappeler advised SCRA is very appreciative of the partnership they have with the Isle. 

Commissioner Horbach stated the information provided is a great example of a partnership between a gaming licensee and the community.  He noted the Convention Center is a great strategy for all of Iowa.  He noted the Isle has over 500 hotel rooms for any convention opportunity.  Commissioner Horbach stated this is what the Legislature intended when they passed the gaming legislation. 

Chair Kramer thanked Nancy Ballenger, General Manager, for the facility tour.

APPROVE MINUTES: Chair Kramer moved to the approval of the minutes and requested a motion.  Commission Horbach moved to approve the minutes from October 14-15, 2020 as submitted.  Commissioner Olsen seconded the motion, which carried unanimously.

ANNOUNCEMENTS: Brian Ohorilko, Administrator of IRGC, advised there will be no meeting in December.  The January meeting will be held on January 21, 2021 at Prairie Meadows Racetrack & Casino in Altoona.  Submissions for the meeting are due in the Commission office by January 7th.

Mr. Ohorilko recognized the following staff members assigned to the Bettendorf and Davenport facilities: Debbie Douglas, Licensing Assistant; and Gaming Representative Stu Hoover-Bettendorf; and Gaming Representative Stan McClellan-Davenport, who also serves as a lead Gaming Representative for eastern Iowa. 

RULES: Mr. Ohorilko advised the rule package before the Commission is a Notice of Intended Action, which is part of the annual Racing Task Force meetings.  The meetings are conducted in the summer and fall.  He provided a brief summary of the proposed changes:

  • Item 1: Rescinds unnecessary definitions;
  • Item 2: Adds helmet and vest safety specifications consistent with national uniform rules;
  • Items 3 and 4: Adds additional reporting requirements for helmet and vest safety;
  • Item 5: Clarifies jockey age representation;
  • Item 6: Adds additional circumstances in which a horse would be ineligible to race;
  • Item 7: Clarifies a circumstance when a horse is ineligible to start;
  • Item 8: Clarifies what consecutive days are for entries;
  • Items 9, 10 and 11: Result of some renumbering due to rule changes;
  • Items 12 and 13: Clarifies requirements for thoroughbred and quarter horse workouts;
  • Items 14, 15, and 16: Pertain to claiming of race horses, specifically when claims are allowed and not allowed, and what happens when there is a voided claim
  • Item 17: Relates to Fantasy Sports, and changes the reporting requirement for certain types of potential violations.

Mr. Ohorilko requested approval of the rules presented under Notice of Intended Action. 

Commissioner Horbach asked if staff was aware of any concerns from the industry on any of the proposed changes.  Mr. Ohorilko advised there are no concerns regarding any of the racing rules; he noted they have unanimous support from the stakeholder group.  He noted the proposed fantasy sport rule has been vetted with that industry and staff has not received any feedback.  Commissioner Horbach requested information as to what happened nationally to initiate the rule changes regarding the vests and helmets.

Hearing no further comments or questions, Chair Kramer requested a motion.  Commissioner Olsen moved to approve the rules as submitted under Notice of Intended Action.  Commissioner Horbach seconded the motion, which carried unanimously.

ADVANCED DEPOSIT SPORTS WAGERING OPERATOR AGREEMENTS:
Casino Queen Marquette, Inc.: Don Ostert, General Manager, requested approval of the Advanced Deposit Sports Wagering Operator Agreement with Vigtory, Inc.

Chair Kramer requested a summary of the terms of the agreement.  Mr. Ostert advised the terms of the contract are confidential, but indicated the facility would be receiving a fee up front and a guaranteed monthly percentage.

Chair Kramer requested some information on the partner as this is a new company. Mr. Ostert indicated Vigtory is a start-up company out of Chicago.  He indicated they are very aggressive.  There are two CEOs: one was one of the top officers for MGM for sports betting. 

Hearing no further comments or questions, Chair Kramer requested a motion.  Commissioner Andres moved to approve the Advanced Deposit Sports Wagering Operator Agreement between Casino Queen Marquette, Inc. and Vigtory, Inc.  Commissioner Gonseth Cheers seconded the motion, which carried unanimously.

Rhythm City Casino, LLC: Mo Hyder, General Manager, requested approval of the Advanced Deposit Sports Wagering Operator Agreement with Rushmore Gaming, LLC.  He advised the agreement is fairly standard; they have a Market Access agreement with them and a revenue share component.  The agreement also contains provisions for a renewal after a certain period of time.  Mr. Hyder advised the company is looking to expand.  Rhythm City feels the company brings a lot to the table.

Hearing no comments or questions, Chair Kramer requested a motion.  Commissioner Horbach moved to approve the Advanced Deposit Sports Wagering Operator Agreement between Rhythm City Casino, LLC and Rushmore Gaming, LLC.  Commissioner Gonseth Cheers seconded the motion, which carried unanimously.

Rhythm City Casino, LLC: Mr. Hyder requested approval of the Advanced Deposit Sports Wagering Operator Agreement with BettHouse, Inc.  He advised the terms of this agreement are also fairly standard.  This company is also looking to expand.

Hearing no comments or questions, Chair Kramer requested a motion.  Commissioner Gonseth Cheers moved to approve the Advanced Deposit Sports Wagering Operator Agreement between Rhythm City Casino, LLC and BettHouse, Inc.  Commissioner Olsen seconded the motion, which carried unanimously.

Grand Falls Casino, LLC: Sharon Haselhoff, General Manager, requested approval of the Advanced Deposit Sports Wagering Operator Agreement with Twin Rivers Management Group, Inc., a Delaware corporation.  She noted this would be a second skin for them as they also have an agreement with Betfred, which will continue.  Ms. Haselhoff stated pending Commission approval, operations are expected to commence during the first quarter of 2021.  At that time, the Elite Sportsbook operation will cease.

Hearing no comments or questions, Chair Kramer requested a motion. Commissioner Andres moved to approve the Advanced Deposit Sports Wagering Operator Agreement between Grand Falls Casino, LLC and Twin Rivers Management Group, Inc.  Commissioner Gonseth Cheers seconded the motion, which carried unanimously.

Riverside Casino & Golf Resort, LLC: Dan Franz, General Manager, requested approval of the Advanced Deposit Sports Wagering Operator Agreement with WSI US, LLC.  He noted the terms are very similar to other agreements at Elite Casino properties with a market access fee and revenue sharing.  The agreement also includes some marketing requirements.  This would be their second skin.  He noted the company has been active in other jurisdictions.

Hearing no comment or questions, Chair Kramer requested a motion.  Commissioner Horbach moved to approve the Advanced Deposit Sports Wagering Operator Agreement between Riverside Casino & Golf Resort, LLC and WSI US, LLC.  Commissioner Andres seconded the motion, which carried unanimously.

HARVEYS IOWA MANAGEMENT COMPANY LLC: Janae Sternberg, Vice President of Finance, requested permission to remodel the buffet space.  It will be a multi-phase remodel with the first phase being a small non-smoking slot section that will house approximately 35 slot machines and add 1,472 square feet to the gaming space.  The second phase will add a pizza oven and pizza counter to provide a more viable long-term option for a restaurant as Harrah’s is lacking in food offerings.  She noted the concept would be new to the market and goes with their current offerings. The third phase would remove the back wall of the buffet to expand seating for the café. The first phase of construction would commence in mid-December, with phase two commencing in February or March, and phase three in April. 

Chair Kramer asked about completion of the project.  Ms. Sternberg advised they have not requested bids from contractors and are somewhat at the mercy of their availability and any necessary equipment, but are hoping to be done by the first part of June.

Commissioner Olsen commended them on the project based on the passage of gaming in Nebraska, but feels it is small in comparison to what potentially needs to be done.  Ms. Sternberg noted the property has recently come out of the merger with Eldorado.  She stated the company has more funding available for capital projects than they have had in recent years and advised there are several projects in the works.  She stated they are working on the skylights, lobby and some different lighting and safety options outside. She advised the remodel of the Hilton Garden Inn at Horseshoe is on the agenda for the coming year. They are also contemplating remodeling the Whiskey Row Roadhouse into a larger food option.  Ms. Sternberg said the two Caesars properties will do everything they can to continue to bring patrons across the river to Council Bluffs.

Hearing no further comments or questions, Chair Kramer requested a motion.  Commissioner Horbach moved to approve Harveys Iowa Management Company, LLC’s remodel request.  Commissioner Andres seconded the motion, which carried unanimously.

RIVERSIDE CASINO & GOLF RESORT, LLC: Mr. Franz requested approval of a revised security plan.  The facility has three entrances to the casino floor – the main entrance, the hotel entrance, and the Event Center entrance.  They usually have the main and hotel entrance open and the Event Center entrance closed, which is only open if there is an event scheduled.  They are are requesting permission to close the hotel entrance if they feel it is necessary.  The plan is close the hotel entrance overnight when traffic is low in order to save on resources.

Hearing no comments or questions, Chair Kramer requested a motion.  Commissioner Andres moved to approve the revised security plan as submitted by Riverside Casino & Golf Resort, LLC.  Commissioner Horbach seconded the motion, which carried unanimously.

CLINTON COUNTY DEVELOPMENT ASSOCIATION (CCDA): Chair Kramer advised the Qualified Sponsoring Organization Good Governance Measures was brought before the Commission at the August meeting and was taken under advisement by the Commission.  She opened the agenda item up for comments from Commission members.

Commissioner Olsen stated the Commission discussed the issue at length and believes it is important to have term limits in place for individuals serving on the non-profit boards per good governance practices established by the Internal Revenue Service.  With regard to the restriction on elected officials serving on the board, he stated he is not concerned.  He noted there are individuals in his community that serve as Supervisors or Commissioners that would also be disqualified.  He stated he is comfortable with easing the restriction on elected officials but term limits need to remain.

Commissioner Horbach concurred with Commissioner Olsen’s comments. He stated the Commission’s goal is to maintain integrity and indicated term limits are a best practice for non-profit boards across the state.  Commissioner Horbach stated CCDA made a legitimate point about being able to broaden the pool of prospective board members and feels this is a good compromise.

Chair Kramer stated she concurred with the comments made by Commissioners Olsen and Horbach.

Commissioner Gonseth Cheers also stated her agreement with the previous comments.

Commissioner Horbach asked to hear from CCDA.  Matt Stammeyer, President of CCDA, expressed his appreciation for the Commission’s guidance and comments.  He stated CCDA understands what the Commission is saying and will move forward.  He advised two current board members will be leaving at the end of the year, but they did have three applicants.  Two were chosen and the licensing process has commenced.

Chair Kramer directed staff to issue a letter to CCDA consistent with the discussions

CONTRACT APPROVALS       (OSV – OUT OF STATE VENDOR; RP – RELATED PARTY):
IOC Bettendorf, L.C.: Ms. Ballenger presented the following contracts for Commission approval:

  • Metronet, Inc. – Fiber Internet
  • Sonifi Solutions, Inc. – Hotel In-Room TV Guide and Cable Services

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

Wild Rose Clinton, L.L.C.: Steve Nauman, General Manager, presented a contract with USA Security to upgrade surveillance equipment.

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

HGI-Lakeside, LLC: Kirk Pfister, Director of Hospitality, presented a contract with Cummins Allison for a count machine and maintenance agreement.

Hearing no comments or questions, Chair Kramer requested a motion.  Commissioner Horbach moved to approve the contract as submitted by HGI-Lakeside, LLC.  Commissioner Gonseth Cheers seconded the motion, which carried unanimously.

SCE Partners, LLC: Doug Fisher, General Manager, presented the following contracts for Commission approval:

  • Sioux Laundry, Inc. – Laundry Services
  • The Printer, Inc. – Printing Services

Hearing no comments or questions, Chair Kramer requested a motion.  Commissioner Gonseth Cheers moved to approve the contracts as submitted by SCE Partners, LLC.  Commissioner Olsen seconded the motion, which carried unanimously.

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

  • Biometrica Systems Inc. – Surveillance Information Network License Agreement (OSV)
  • CDW, LLC – Hardware/Software Upgrades and Licenses (OSV)
  • Global Payments Gaming Services, Inc. – Cash Advance Credit/Debit Card Processing Revenue Agreement (OSV)
  • Lamar Companies – Outdoor Advertising Billboards
  • MedOne Healthcare Systems – Prescription Drug Benefit Plan
  • PaulMolly Advertising – Digital, TV & Radio Advertising
  • USPS – Postage Expense

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

Rhythm City Casino, LLC: Mr. Hyder presented the following contracts for Commission approval:

  • Performance Food Service – Food Purchases
  • TJX Companies – TJ Maxx/Home Goods/Marshalls Gift Cards

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

Harveys Iowa Management Company LLC: Ms. Sternberg presented the following contracts for Commission approval:

  • Document Imaging Systems – PPE Supplier (OSV)
  • Premier Glazer’s Beer & Beverage, LLC – Alcohol Vendor
  • Ticketmaster/Live Nation – Ticket Sales

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

Iowa West Racing Association d/b/a Horseshoe Casino: Ms. Sternberg presented the following contracts for Commission approval:

  • Document Imaging Systems – PPE Supplier (OSV)
  • Premier Glazer’s Beer & Beverage, LLC – Alcohol Vendor

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

HEARINGS:

Points Bet Iowa, LLC: Mr. Ohorilko advised Commission staff and Points Bet Iowa, LLC have entered into a Stipulated Agreement for a violation of Iowa Code § 99F.4(22) (Self-Exclusion). On December 17, 2019 Points Bet downloaded information from the state-wide self-exclusion database into their system.  The next download should have occurred on or before December 24, 2019; however, it was not completed until December 26, 2019.  The error was discovered based on an audit completed by Commission staff.  Mr. Ohorilko stated no individuals on the self-exclusion list opened an account.  Points Bet has advised, and Commission staff has verified, they implemented additional procedures to insure this does not occur again.  This is the first offense in the past 365 days.  As a result of the violation, Points Bet has agreed to pay an administrative penalty in the range of $5,000 to $20,000.

Rob Higgins, General Manager at Catfish Bend Casino II, LLC, stated the facility’s relationship with Points Bet has been spectacular; they are a top notch company and are very professional.  He stated he did discuss the situation with Points Bet. Mr. Higgins advised Points Bet representatives were not able to be in attendance.

Commissioner Horbach questioned why this could not be set up automatically with the technology and software available.  Mr. Higgins stated that in his discussions with Points Bet they advised they tried to get more individuals involved to create more checks and balances to prevent this situation from occurring again.

Hearing no further comments or questions, Chair Kramer requested a motion.  Commissioner Olson moved to approve the Stipulated Agreement with Points Bet Iowa, LLC for a violation of Iowa Code § 99F.4(22) with an administrative penalty of $5,000.  Commissioner Gonseth Cheers seconded the motion, which carried unanimously.

Betfred Sports (Iowa) LLC: Mr. Ohorilko advised Commission Staff and Betfred Sports (Iowa) LLC have entered into a Stipulated Agreement for a violation of Iowa Code § 99F.4(22) (Self-Exclusion).  On August 6, 2020, Betfred Sports downloaded the updated information from the state-wide self-exclusion database.  The next download should have occurred on August 13th; however, it did not occur until August 14th.  The error was discovered by Commission staff during an audit.  Mr. Ohorilko stated Betfred Sports has updated their procedures by adding an additional download during any week in which the regularly scheduled download occurs earlier than Friday to avoid this situation going forward.  He noted this is Betfred Sport’s first offense in the last 365 days.

Mr. Ohorilko advised Cynthia Hayes, Vice President of Compliance, was not able to be in attendance but did provide a statement which Mr. Ohorilko read:

“Good morning, Chair Kramer, Commission member and Staff: On behalf of Betfred Sports, upon review of the circumstances and in discussion with IRGC staff, I agree to the terms of the agreement before you today as set forth in the agreement Betfred failed to download the Iowa self-exclusion list within seven days the week of August 10th.  Our process was designed so that the download of the list would occur every Friday to maintain the seven day interval as required.  Due to a change in work schedule, the list was downloaded on Thursday, August 6th as opposed to Friday, August 7th to ensure it was updated within the seven-day time frame; however, in doing so the information was not updated until eight days when the standard Friday process was resumed.  Betfred takes responsible gaming and all of its regulatory and legal obligations seriously.  We regret this mistake occurred and have changed our process in relation to the self-exclusion list accordingly.  If there is ever a need to deviate from the Friday schedule, an additional download of the list will occur on Monday or Tuesday of the following week as well as the regularly scheduled download on Friday.  This will ensure that we stay within the seven-day time frame. I’m sorry I could not be there in person.  If you have any questions, please do not hesitate to contact me.”

Mr. Ohorilko requested approval of the Stipulated Agreement. 

Hearing no comments or questions, Chair Kramer requested a motion.  Commissioner Andres moved to approve the Stipulated Agreement with Betfred Sports (Iowa) LLC with an administrative penalty of $5,000.  Commissioner Horbach seconded the motion, which carried unanimously.

PUBLIC COMMENT/ADMINISTRATIVE BUSINESS: None

ADJOURN: As there was no further business to come before the Commission, Chair Kramer requested a motion to adjourn.  Commissioner Andres moved to adjourn.  Commissioner Horbach seconded the motion, which carried unanimously.