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09-16-86 Gaming Commission MinutesI t GAMING COMMISSION MEETING Conference Room September 16, 1986 • The Commission met at 2:00 P.M. for the purpose of hearing an application for a Gaming License for Renee and Steve Golleher for Ole's Country Store which is located at 235 West Idaho Street. In attendance were Mayor Kennedy, Commission Members Schindler and Grainger, Police Chief Stefanie, Detective Stotts, Richard Nelson -Representative House District 6, the Gollehers, Jerome Dodbielski, gaming coin operator, Roger Hopkins-DIL and Butch Larcombe-the Missoulian. Mayor Kennedy opened the meeting and stated that the fees have been paid, references received and asked for information on the business. The Mayor stated that this is first such application we have had. Mr. Golleher stated that it is a franchised convenience store, leased from a Missoula corporation. Commissioner Schindler stated that his desire is to keep gaming just in the bars and doesn't want a foothold in the stores. The bars can handle the age restrictions; we should not subject our citizens to that atmosphere at convenience stores. Mr. Golleher stated that he didn't see the difference - they sold wine and beer and had control over that sort of thing. The Missoula store is licensed for Keno machines, and he asked if the Commission was progressive or regressive. Chief Stefanie stated for the record that the Police Department, having done the investigation for the license, found the Gollehers probably two of the most highly recommended and very well qualified persons who have requested • licenses; consistently their recommendations were favorable. However, he personally prefers that gaming is restricted and by law it is our responsibility and authority to determine where gaming is best suited for Kalispell. His obligation is to stand up for what he believes to be best for the City and for that reason does not support the license application for the kind of business and the type of location. He stated that he is not pursuaded by other unlawful activity going on in the state. The Chief advised the Gollehers that they probably have some redress procedures as a matter of some form of appeal to be discussed at a future time if they chose to do that. When asked by Mr. Golleher if his rationale was for moral reasons, Chief Stefanie replied that it was. C. Schindler stated that keeping gambling in the bar scene is one thing and allowing it to slowly creep into other types of public places, all those people who don't want to put up with gambling are subjected to it. Video machine vendor Jerome Dodbielski expressed concern about policing of a 24 hour a day store and how far it would go. The possibility that there may not be enough money in this to pay fees exists but feels video gambling should be given a shot. -1- 40 Motion: C. Schindler moved that the application from Steve and Renee Golleher for a • gaming license for Olets County Store be denied. Seconded by Councilman Grainger, all voted aye, motion carried. Schindler suggested that the fees, after investigation charges are deducted, be refunded. Chief Stefanie advised that a standard investigation fee was $75, so approximately $425 would be refunded. Steve Golleher said they would appeal the ruling, which will go first to the City Council then on to District Court. He warned that the Commission would be faced with more of this in the future. Mayor Kennedy stated that the more we are faced, the more we have to be cognizant of the control we have to have over gambling. Discussion of the possible economic benefit to convenience stores from revenue of video machines followed. Chief Stefanie felt that the people of the State of Montana through the Legislature spoke to this kind of issue when they went to the poker machines last session when they stated that poker machines will be limited specifically to places with on -premise beverage licenses. He feels that keno/bingo machines come under the same category. This is a rule of thumb that locally he feels comfortable with. C. Grainger asked Representative Nelson about the enactment of video type gambling: entertainment or a bill to make money as far as the customer goes? Nelson replied that it was looked at as strictly a money -making bill. He was at the meeting because of a call from a constituent who could not attend who was opposed to issuing the convenience store license. • Motion: is After further general discussion on gaming licenses, Mayor Kennedy suggested that a policy be adopted right away on gaming limitations. Chief Stefanie then moved that the Gaming Commission formally adopt a policy that we limit gaming to establishments with on -premises beverage consumption licenses as a matter of policy. Seconded by Councilman Schindler, all voted aye, motion carried. Dealer License Problems: Mayor Kennedy reports that Kent Frampton brought in a description of his poker tournaments, etc. and that he has written a letter to County Attorney Lympus, asking his review and opinion. Thus far, the other two establishments have not responded. Regulation on Wearing Dealer Licenses: Chief Stefanie recommended that the two dealers involved in violating this regulation should be advised in writing that notice of their violation has been forwarded to the Commission and request them to attend a hearing to give their side of it. The Commission will then decide if they have violated the regulation -if so, what sanction should be provided. If appealed, the issue would go first to City Council then to District Court. -2- C. Grainger suggested a letter of warning to the gaming establishments for the time being. Detective Stotts reported on other violations with license suspensions and Chief Stefanie felt that enough warning had been given, all • were well aware of the regulations. Mayor Kennedy stated that it was important that we really get a handle on gambling and set forth rules and laws and not let such matters as this get out of hand. It was decided to send the letters out to the two dealers in hopes that they can attend the next scheduled Gaming Commission meeting on Monday, September 22nd at 3:00 P.M. They will be asked for notification if they cannot attend. C. Grainger pointed out his concerns on the Commission meeting too often and his philosophy of regulating gambling. The meeting adjourned at 2:45 P.M. Markie Sabol Recording Secretary • Sim