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Gaming Commission
1996 Annual Report tn the General Assembly
Robert L Wolfson Chairman -~
RobertM Clayton II shyVice Chairman
-Dr Janice Prather SecretaryDODDDDDDD
William JQuinn
Avis Tucker zt dilJltWSMillUlGlllilll Ll b LLWiWtamp wyena Mil 2 iF1fiFT iTT
TABLE OF CONTENTS -
THE COMMISSIONERS ~~~ ~ ~ ~bullbullbullbullbullbullbulll
INTRODUCTION bullbullbullbullbull bullbullbullbullbullbullbull~bullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbull bullbullbullbullbullbullbullbullbullbullbullbullbullbullbull~bullbullbullbullbullbullbullbullbullbullbull ~bullbullbullbullbullbull bullbullbull 2
STATUTORY PROVISIONS ~_ 3
Effect othe $500 Loss Limit f Tax Rate ~ Contributions to Education ~ ~ _ 8
ORGANIZAtIQNALSTRUCTURE-~ ~~ ~ ~~~ 10
Executive Director - middot middotmiddotmiddotmiddot middotmiddotmiddot middot middotmiddot) middot middotmiddotmiddotmiddotmiddotcmiddot middot 10 Administrati~n middot -- ~O Data Processing - Audit ~ - _ 11 Bingo_ ~ - _ 11 Corporate Securities and Finance middot ~ 12 EnQrcement 12shyLegal and Legislative Affairs )3
OCCUPAtIONAL LICENSE DENIAIS ~ ~~~~15
VOLUNTARY EXCLUSIONSbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbull~bullbullbullbullbull bullbullbullbull bullbullbullbullbullbullbullbullbullt bullbullbullbullbullbullbullbullbullbullbull~bullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbull~~bullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbull~bullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbull lfi
TIMELINEOF RIVERBOAT GAMING INMISSOURI _~~~ 17
OUTLINE OF A BACKGROJJND INVESTIGATION ~ ~ ~20
COMPLIANCE AUDIT OBJECTIVES FOR LICENSEES ~7 12
SEMI-ANNUAL FINAN CIAI AUDIT OBJECTIVES FOR LICENSEES ~ j 13 ( f - I - ~
GAMING OPERATOR TAX SUMMARIES ~ - APPENDIX A
SUMMARYQF NATIONAL GAMING POLICIES ~ - ~ APPENDIX B
GAMING COMMISSION FISCAL REpORT ~~~ APPENDIX C shy
)OPERATOR SUMMARIES APPENDIX D
The Commissioners
Robert L Wolfson Chairman
Robert L Wolfson is Chainnan of the Board for Wolfson Capital Venture serves on the Mark Twain Chainnans Board is a member of the Board of Trustees for Brandeis University and is on the Board of Trustees ofJewish Hospital in St Louis He is the co-founder of the st Louis Blues of the National Hockey League and served as Vice-President and Treasurer of the St Louis
Blues Mr Wolfson has a long history as a successful businessman having owned and managed many successful retail and commercial ventures Additionally Mr Wolfson is the recipient ofmany awards from civic organizations and is well known for his philanthropic endeavors
Robert M Clayton II Vice-Chairman
Mr Clayton is a senior partner ofClayton amp Clayton law firm He has served on the Board of Directors of Roosevelt Bank and has also served as a member ofthe Compensation and Stock Option Committee He serves on the Mark Twain Home Board Mr Clayton is former President of the Missouri Bar and is the Treasurer of the Missouri Bar Plan Mutual Insurance Company a member of its Executive Committee and Chairman ofthe Bars
Underwriting and Finance Committee Mr Clayton also serves as a member and Director of the Bar Plan Foundation
William J Quinn
Mr Quinn is a retired 23 year veteran ofthe FBI where he served as supervisor ofthe agencys Organized Crime and Racketeering unit in Kansas City He also served as National Chairman ofthe Former Agents ofthe FBI Foundation He is a veteran ofthe United States Navy and holds a BBA degree from Northeastern University in Boston Massachusetts In addition Mr
Quinn has owned and operated a private security company
- ------~------------------------~
Missouri Gaming Commission 1996Annual Report - Page 1
Dr Jenice Prather Secretary
Dr Jenice J Prather is a CPA and accounting professor at the University of Missouri-Columbia She has published over twenty articles in national and international academic accounting journals She has received numerous honors and awards for her research and
teaching including a two year Research Associateship from Washington University and a KPMG Peat Marwick International Accounting Research Fellowship She holds leadership positions in the American Accounting Association the National Association of Black Accountants the American Institute ofCPAs the Institute of Management Accountants and the Missouri Society ofCPAs She was on the Price Waterhouse National Advisory Board and currently is on the MIZZOU Credit Union and the Board ofTrustees ofSecond Missionary Baptist Church
Avis Tucker
Avis Tucker is the President of Star-Journal Publishing Co and serves as Editor and Publisher of The Daily StarJournal in Warrensburg Missouri She also serves as President ofJohnson County Broadcasters Inc Additionally Mrs Tucker serves on the Missouri Commission on the
Organization ofthe Judicial Deparbnent the Whiteman Air Force Base Community Council the Warrensburg Chamber of Commerce and the Childrens Mercy Hospital Public Affairs Committee Mrs Tucker has received number ofawards for her professional accomplishments and her public service work most recently the Chancellors Award from UMKC
Introductioll The Missouri Gaming Commission was established in 1993 to regulate
riverboat gambling in Missouri In addition the Commission assumed the responsibility for regulating charitable bingo games on July I 1994
The five member Commission is charged with maintaining public confidence in legaliTed gambling and ensuring that no criminal elements are allowed to infiltrate licensed gaming operations It is important that the Commission do its job well so that public confidence in the gaming industry is established thereby allowing the industry to reach its goals ofeconomic development job creation and the promotion of Missouri as a major tourist attraction
As a state regulatory agency the Commission and its staffhold themselves to the highest ethical and professional standards and strive to conduct all business in a manner which maintains the public trust Pursuant to statute a strict Code ofEthics has been adopted prohibiting conflicts of interest and ex parte commtmications
The key regulatory responsibilities ofthe Commission are afollows
gt to conduct thorough background investigations on all key persons involved in the gaming operation including substantial owners management personnel key operational employees and suppliers
gt- to thoroughly investigate the finances ofapplicants and their key persons to determine if they have the fmancial resources and responsibility to meet their proposed obligations
gt to screen all occupational licensees including dealers slot attendants food and beverage servers security and surveillance personnel and all other employees who have access to the gaming area and investigate the background ofeach to ensure that the personnel operating the casino are of sufficient character to maintain the integrity of Missouri gaming
gt to photograph and fmgerprint each employee so as to maintain a complete and accurate database of boat personnel
gt to assign appropriate staff to each gaming operation to be present at all times when gaming is conducted Enforcement agents are charged with
ensuring tbat gaming is conducted in accordance with the Missouri gaming statute the rules and regulations of the commission and the operators own internal controls
gt to ensure that the safety of the passengers is guarded to conduct investigations of suspected wrongdoing and to receive complaints from customers
gt to review and audit the fmances of the gaming operation through the combined use ofCommission staff and independent public accounting firms that are retained by the licensee and approved by the Commission and
gt to monitor the financial integrity of gaming operators to ensure that Missouris financial interests are protected
Pursuant to statute the Commission has entered in to a Memorandum of Understanding with the Missouri State Highway Patrol to perfonn background investigations and provide enforcement personnel on the boats Under the tenus of this agreement the Patrol also provides enforcement personnel for the Division ofBingo
lbe Commission also has a Memorandum ofUnderstanding with the IRS to assist with the financial portion of the background investigation and to provide ongoing expertise with regard to the internal control procedures and the reporting and payment of taxes
At the end of 1996 ten riverboat casinos were operational at eight different developments in Missouri Sunnnaries of the operators fmancial reports that are required by the Commission are contained in Appendix C Harrahs Maryland Heights Inc and Players Maryland Heights Corporation are in the process of being investigated
Ibe Commission is also responsible for approximately 870 bingo licensees and bas successfully implemented the new requirement oflicensing hall providers In addition the commission has successfully executed the difficult task of implementing the new supplier-based bingo tax that took effect January 11995
MisWllri Gaming Commission 1996 Annual Report - Page 2
The Effect of the $500 Loss Limit on Competitiveness
For the past two years the commission bas reported that the $500 loss limit imposed by statute places Missouri riverboat gaming operations at a competitive disadvantage as opposed to similar operations in the adjoining states of Illinois and Iowa We opined at that time that the $500 loss limit contributes to a large decrease in state revenne
The commissions comments in prior years have been tempered by our knowledge that the riverboat gaming industry in Missouri was in its formative years and that little data was available to study After more than two years of Missouri operating history there is now adequate data from Missouri and its adjoining competitive states to expand our comments on the loss limits and state our findings with more precision
Negative Impact on Customer Satisfaction
The most frequent complaints to Commission staff and regulatory personnel in their contacts with the public are those dealing with the loss limit and the boarding restrictions The restriction on boarding is a method to enforce the loss limit
In addition the loss limit continues to be difficult to enforce Although the commission uses its best efforts to enforce the limit the customers desire to circumvent it consumes a tremendous amount of manpower Enforcement agents spend a significant amount of time dealing with violations and customer disputes Gaming boat sergeants regularly testifY that their most difficult problem was enforcing the $500 loss limit
The Loss Limit and the Problem Gambler
The loss limit has been described as a measure intended to deal with problem gaming However the success of the loss limit in addressing the problem ofcompulsive gambling remains undetermined
The primary argument for the $500 loss limit is that it helps deter the problem gambler Ifthe loss limit controlled the behavior of the problem gambler it would be a laudable requirement
Mental health professionals have told the commission that left untreated the problem gambler will find a way to gamble Whether it is by reboarding another cruise using some other persons loss limit card by crossing the river into another jurisdiction where there is no loss limit or gambling illegally the problem gambler will find a way to exercise the compulsion
The commission in relying on the treatment professionals has focused its battle against
problem gambling on education MissQun hasbeen()ne ofprevention and treatment Missouri has been one of the the most aggressive states most aggressive states in in c9mbatjpgproblem combating problem gambling Missouri is the first jurisdiction gambling Missouri is the to create a system whereby firstjlIrisdictiontomiddot create a problem gamblers can exclude systemwllerebyproblem themselves from casinos under threat ofarrest for trespassing gamblers can exclude In addition the commission has fhemselvesfrom casinos required operators to adopt
l)I1der threat of liITest forprograms to educate problem gamblers and has arranged trespassing~ funding for the recruitment and training oftreatment counselors who must be certified by the Missouri department ofmental health
The Loss Limit and the Typical Consumer
While treatment professionals tell the commission that loss limits do not inhibit the compulsive gambler Wall Street analysts who study the industry report that the loss limit has a negative impact on the normal consumer looking
Missouri Gaming Commission 1996 Annual Report - Page 3
for an entertainment experience Gaming is an entertainment industry In the entertainment industry the consumers demand a product that they can enjoy during their leisure time on their own terms
In Missouri there are consumers that indicate they dislike the product which they are being offered Many of these conswners will go out of their way even travel to another state to fmd a product that is more user friendly A cursory survey of the license plates in the parking lot I)fthe Casino Queen in East 8t Louis Illinois adequately demonstrates this point
Many Missouri gaming customers complain that the loss limit is inconvenient intrusive and that it detracts from the entertainment experience they seek at Missouri riverboats To have to account for ones spending during what is supposed to be a leisure activity strikes many as a personal encroachment The fact that this requirement is imposed and enforced by the government further aggravates this perception
Many Missouri consumers react to this restriction by taking their leisure time and tax dollars across the border to JIlinois Iowa or Kansas where there are no limits Furthermore it is apparent that the loss limit severely restricts Missouri riverboat operators from drawing tourist customers from other states Consumers choice as to how to spend their discretionary leisure dollars is evident in the competitive gaming arena
The Missouri gaming law was adopted by the people for its potential to generate economic development its ability to raise needed revenue for education and because it is a leisure activity that many want to pursue The loss limit detracts from aU of these goals While Missouri is currently the beneficiary ofa significant amount of capital investment and new job creation the continuing negative impact of the loss limit renders our economic future in this area uncertain Because of the loss limit Missouri riverboat operators are less competitive the state is losing money to its neighboring states there is a reduction in the number of available jobs and the number of riverboats that can successfully operate in Missouri is restricted
Tax revenues from gaming have benefited education While tax revenues from gaming are still growing after only two years Missouri has seen
~ -
How does the Loss Linlit Work
Pursuant to sect 313805 RSMo the commission is required to regulate the wagering structure to include a maximum loss of five hundred dollars per individual player per gambling excursion In order to enforce this provision the commission requires the following procedure
I In order to board an exctrrsion gambling boat a customer most stand in line to obtain a ptrrchase authorization coupon (scrip) This scrip must be signed by the customer in the presence of a licensed riverboat employee
2 After the customer receives the scrip heshe must get in another line to board the riverboat The scrip also serves as the customers boarding pass
3 The scrip which is time and date stamped must be printed with boxes of denominations ofwhich the total ofall boxes shall not exceed $500 These boxes shall be canceled by pennanent black marker at the time the patron presents the scrip in the riverboat casino lfthe scrip is not signed at the time of presentment or the date and time are not valid the scrip shall be confiscated from the customer If the scrip is valid and there are sufficient available boxes the cashier shall cancel the appropriate number of boxes with a pennanent black marker and complete the transaction
4 In a situation where a customer wishes to buy chips at a table the procedtrre is the same except that the dealer stops the game to execute the transaction On many occasions the use of the scrip to convert cash to chips will slow up the game This is another example of customer dissatisfaction arismg out of the process
Transcript Missouri gaming commission meeting November 25 1996 pages 8 II and 1~17 (Bruce Turner Salomon Brothers) pages 44-46 (Joe Coccimiglio Prodential Securities) pages 57-58 (Tom Ryan Bankers Trust) pages 65-68 (Larry Klatzkin Donaldson Lufkin ampJenrette) pages 84-90 (Richard Byrne Merrill Lynch)
Missouri Garning Commission 1996 Annual Report - Page 4
Win Per Admission CoJql8ring Mssouri and IIhlls
those revenues fall short ofpredictions Analysts from Wall Street tell the commission that we are exporting our tax dollars to other states In a recent commission meeting regarding market size a well respected gaming analyst opined that while Missouri supplies 73 ofthe gaming market in the S1 Louis area it captures only 50 ofthe revenue Z
Finally the gaming experience ofconsumers who do visit Missouri gaming operators is less desirable than the experience offered by competitive states Missouri is offering a more cumbersome and less enjoyable product The commission believes that the gaming policy for Missouri should retain the Missouri dollars in Missouri and attract dollars from other states Our current policy has the exact opposite result
The Costs 0Competitive Ineriority
Limiting the ability ofMissouri operators to offer a competitive entertainment product has direct economic costs which are easily illustrated Missouri gaming riverboats are larger more luxurious and offer more non-gaming amenities than competitors in neighboring states Yet they fail to compete in economic terms even though the bulk ofthe popUlation seeking the entertainment product lives in Missouri
For example the Casino Queen in East St Louis Illinois and the Alton Belle in Alton Illinois combined have less capital investment than St Charles Riverfront Station which has consistently expanded and reinvested since it opened in May 1994 In addition these Illinois gaming facilities consist primarily of parking facilities and the gaming casino They offer no non-gaming amenities other than limited restaurant facilities
In spite of these negative competitive factors the two Illinois facilities regularly outperform SCRS in spending per customer Similarly Illinois riverboats in the St Louis area fare significantly better in gaming revenue per square foot gaming revenue per position and admissions per square foot One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
pages 104-106 (John Maxwell Standard amp Poors) and pages 115-118 (Steve Schneider Stife Nicoaus) See also Minutes ofMissouri gaming commission meeting May 24 1995
Missouri Gaming Commission minutes November 25 1996page 27 quoting Jason Ader Bear Stems gaming analyst Examples ofsome of the non-gaming amenities included in Missouri projects include themed restaurants movie theaters botels meeting space retail shopping child
care centers micro breweries an 18th century railroad car restored to its original luxury fountain displays and theaters for live entertainment
Missouri Gaming Commission 1996Annual Report - Page 5
2
The Problem is Clear - How does Missouri Address the Problem
Missouri statutes require the commission to report annually to the Governor and the General Assembly on the competitive state of the gaming industry in Missouri For two years the commission has advised the General Assembly that we believe that there could be a problem with the structure of the gaming industry but that the data is incomplete However we now fmd the data to be clear and compelling A problem exists in the Missouri gaming industry -- the gaming product is not competitive with our neighboring states This will create negative economic results and lower tax revenues
Due to navigational safety constraints most Missouri riverboats do not cruise It has been suggested by gaming analyst and by legislation filed in prior years that the elimination of the boarding time restrictions will help Missouri gaming operators economically and be more consumer friendly The commission believes that the current boarding time restrictions are detrimental to the consumer and make little sense since the riverboats are not leaving the dock They are an artificial barrier to entry and participation Yet the boarding times are essential to enforcing the loss limit A change in the statutes which
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OIl
eliminates the boarding times but maintains the loss limit would make the enforcement of the loss limit impossible
Findings
Current Missouri statutes are not competitive with our adjoining states Consequently Missouri is at a competitive disadvantage Repealing the loss limit would make the Missouri operators more competitive Without this change the Missouri gaming industry will continue to be at a competitive disadvantage and over time will decline rather than prosper
Conclusioll
Section 313837 RSMo requires the commission to report annually to the general assembly on the effects ofthe loss limit on the competitiveness of the gaming industry in Missouri The findings above are intended to satisfy this statutory mandate The enactment of any changes in policy as a result of these findings are obviously the purview of the General Assembly and the Governor
Missouri Gaming Commission 1996Annual Report - Page 6
Effect of Tax Rate on Competitiveness
The Missouri tax rate currently mirrors that of its principle competitor the State of Illinois The MissourilIlIinois tax rate consists of a 20 base tax on adjusted gross receipts (AGR) In Missouri 10 of that tax (or 2 of AGR) is a local tax imposed by state statute The funds collected from this local tax are allocated to the home dock city or county fur services necessary for the safety of the public visiting the excursion gambling boat The remaining tax on AGR (18 of gross receipts) is placed in the Gaming Proceeds for Education Fund and may be spent only for public elementary secondary and higher education
Iowa has a graduated tax tbat caps out at 20 for adjusted gross receipts over $3 million Because the graduated rate reaches its cap at the relatively low ceiling 0pound$3 million Iowas effective tax rate is not significantly
The state of Kansas has recently allowed casinos operated by native American Indians These casinos are not taxed
For your future reference a table is contained in Appendix B setting forth the tax rate in each gaming jurisdiction and the regulatory restrictions that are imposed The chart below is a generalization of the tax rates in the various gaming jurisdictions Because of the subtleties of each states tax law it is difficult to precisely chart the rates For a defmitive explanation of the tax rates refer to the aforementioned chart in Appendix B
The Commission does not feel that the 20010 tax rate currently places our licensees at a competitive disadvantage The commission will continue to monitor the performance of all licensees and report developments as they occur
different from that of Missouri and Illinois
Licensees are also responsible for a $2 admission fee for each person who participates in a gaming excursion One dollar of this fee is remitted to the home dock city or county The remaining dollar is used to fund the regulatory activities of the Commission No general revenue is used for any activity of the Commission In addition to the $2 admission fee the gaming boat is billed monthly for the full cost of the enforcement agents assigned to the boat Either through fees or direct billing the gaming operators pay for the full cost of their own regulation
The State of Mississippi assesses a tax of 12 on AGR Unlike Illinois who is limited to licensing 10 gaming operations Mississippi has not limited the number of casinos licensed but has licensed all applicants that have been found suitable The Missouri law does not specifically limit the number of licenses that may be issued but places this responsibility in the hands of the Commission through a best interests of Missouri standard
Comparison of Gaming Tax Rates TaxonAGR
25
20 m ma )(
15 IImTaxRaeJ ~ 10
5
0 NV NJ LA
----------------------------------
MS IL IN IA MO CO so State
Missouri Gamilg Commission 1996Annual Report - Page 7
Missouri Gaming Commission Contributions to Education
Fiscal Year 1995
Gaming Proceeds for Education $ 5661628204
Bingo Tax Proceeds for Education $ 625370396
FY95 Tax Revenue from Gaming $6286998600
Fiscal Year 1996
Gaming Proceeds for Education $9973032067
Bingo Tax Proceeds for Education $ 468417852
FY 96 Tax Revenue from Gaming $10441449919
Total Tax Revenue from Gaming 516728448519
Does the GamblingMoneYiReallyGoo Fund Education
This may be the question inostfrequently asked ofpublic officials The simple answer is yes it does Pursuant to aconstitution~lamendntent passed by theGeneraIAssemblyasSJk 20 in 1992 andapproved bythe voters in a subsequent general electionmiddotall state tax money derived from the proceeds ofgamblirigisspent on education
The text ofthisconstitutional provision contained inArtiete 1lISection 39(d) reads as follows
All state revenues derived from the conduct ofaUgaming activities as are now or hereafter authorized by thiscomtitution orbyJaw unless otherwise provided bylaw on the ~ffectivedateofthissectionshallbemiddot appropriated beginoingJuly 1193solely for the pl1blic instittitions of elementary secondary and higheredueatioll and shaH~ot be included within the defmitionoftotal staterevenues in sectioid 7ofarticle X of this constitution
The tax revenues derivedfimnthe proceeds ofgambling foifiscalyeart998 are estimated to be $155 millionmiddot In ~d~itionto thegamblingm~neymiddot traditional stategeneralrevelluefundingfor publicschoo~ bas Uicreased every year since riverboatgillllblingwasenacted Thetotalstatebudget for educationwhichrepresents approximately 50of the average local school budget is $2965 billion Theg~~lIDgnlOney was designedtoslipplel1lent not replace the primatySufCeS ofpqb lie school fuDding[befunds derived from gambling have be~nusedfortheOiltstandingSchools TtilStFundthemiddotmiddot SchoolDistrict Bond Fund fotmainteniuiceandcapital exp~nclilures for public colleges and universities and to supplcentmenttheschool foundlltionmiddot formula
Missouri Gaming Commission 1996 Annual Report - Page 8
for an entertainment experience Gaming is an entertainment industry In the entertainment industry the consumers demand a product that they can enjoy during their leisure time on their own terms
In Missouri there are consumers that indicate they dislike the product which they are being offered Many of these conswners will go out of their way even travel to another state to fmd a product that is more user friendly A cursory survey of the license plates in the parking lot I)fthe Casino Queen in East 8t Louis Illinois adequately demonstrates this point
Many Missouri gaming customers complain that the loss limit is inconvenient intrusive and that it detracts from the entertainment experience they seek at Missouri riverboats To have to account for ones spending during what is supposed to be a leisure activity strikes many as a personal encroachment The fact that this requirement is imposed and enforced by the government further aggravates this perception
Many Missouri consumers react to this restriction by taking their leisure time and tax dollars across the border to JIlinois Iowa or Kansas where there are no limits Furthermore it is apparent that the loss limit severely restricts Missouri riverboat operators from drawing tourist customers from other states Consumers choice as to how to spend their discretionary leisure dollars is evident in the competitive gaming arena
The Missouri gaming law was adopted by the people for its potential to generate economic development its ability to raise needed revenue for education and because it is a leisure activity that many want to pursue The loss limit detracts from aU of these goals While Missouri is currently the beneficiary ofa significant amount of capital investment and new job creation the continuing negative impact of the loss limit renders our economic future in this area uncertain Because of the loss limit Missouri riverboat operators are less competitive the state is losing money to its neighboring states there is a reduction in the number of available jobs and the number of riverboats that can successfully operate in Missouri is restricted
Tax revenues from gaming have benefited education While tax revenues from gaming are still growing after only two years Missouri has seen
~ -
How does the Loss Linlit Work
Pursuant to sect 313805 RSMo the commission is required to regulate the wagering structure to include a maximum loss of five hundred dollars per individual player per gambling excursion In order to enforce this provision the commission requires the following procedure
I In order to board an exctrrsion gambling boat a customer most stand in line to obtain a ptrrchase authorization coupon (scrip) This scrip must be signed by the customer in the presence of a licensed riverboat employee
2 After the customer receives the scrip heshe must get in another line to board the riverboat The scrip also serves as the customers boarding pass
3 The scrip which is time and date stamped must be printed with boxes of denominations ofwhich the total ofall boxes shall not exceed $500 These boxes shall be canceled by pennanent black marker at the time the patron presents the scrip in the riverboat casino lfthe scrip is not signed at the time of presentment or the date and time are not valid the scrip shall be confiscated from the customer If the scrip is valid and there are sufficient available boxes the cashier shall cancel the appropriate number of boxes with a pennanent black marker and complete the transaction
4 In a situation where a customer wishes to buy chips at a table the procedtrre is the same except that the dealer stops the game to execute the transaction On many occasions the use of the scrip to convert cash to chips will slow up the game This is another example of customer dissatisfaction arismg out of the process
Transcript Missouri gaming commission meeting November 25 1996 pages 8 II and 1~17 (Bruce Turner Salomon Brothers) pages 44-46 (Joe Coccimiglio Prodential Securities) pages 57-58 (Tom Ryan Bankers Trust) pages 65-68 (Larry Klatzkin Donaldson Lufkin ampJenrette) pages 84-90 (Richard Byrne Merrill Lynch)
Missouri Garning Commission 1996 Annual Report - Page 4
Win Per Admission CoJql8ring Mssouri and IIhlls
those revenues fall short ofpredictions Analysts from Wall Street tell the commission that we are exporting our tax dollars to other states In a recent commission meeting regarding market size a well respected gaming analyst opined that while Missouri supplies 73 ofthe gaming market in the S1 Louis area it captures only 50 ofthe revenue Z
Finally the gaming experience ofconsumers who do visit Missouri gaming operators is less desirable than the experience offered by competitive states Missouri is offering a more cumbersome and less enjoyable product The commission believes that the gaming policy for Missouri should retain the Missouri dollars in Missouri and attract dollars from other states Our current policy has the exact opposite result
The Costs 0Competitive Ineriority
Limiting the ability ofMissouri operators to offer a competitive entertainment product has direct economic costs which are easily illustrated Missouri gaming riverboats are larger more luxurious and offer more non-gaming amenities than competitors in neighboring states Yet they fail to compete in economic terms even though the bulk ofthe popUlation seeking the entertainment product lives in Missouri
For example the Casino Queen in East St Louis Illinois and the Alton Belle in Alton Illinois combined have less capital investment than St Charles Riverfront Station which has consistently expanded and reinvested since it opened in May 1994 In addition these Illinois gaming facilities consist primarily of parking facilities and the gaming casino They offer no non-gaming amenities other than limited restaurant facilities
In spite of these negative competitive factors the two Illinois facilities regularly outperform SCRS in spending per customer Similarly Illinois riverboats in the St Louis area fare significantly better in gaming revenue per square foot gaming revenue per position and admissions per square foot One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
pages 104-106 (John Maxwell Standard amp Poors) and pages 115-118 (Steve Schneider Stife Nicoaus) See also Minutes ofMissouri gaming commission meeting May 24 1995
Missouri Gaming Commission minutes November 25 1996page 27 quoting Jason Ader Bear Stems gaming analyst Examples ofsome of the non-gaming amenities included in Missouri projects include themed restaurants movie theaters botels meeting space retail shopping child
care centers micro breweries an 18th century railroad car restored to its original luxury fountain displays and theaters for live entertainment
Missouri Gaming Commission 1996Annual Report - Page 5
2
The Problem is Clear - How does Missouri Address the Problem
Missouri statutes require the commission to report annually to the Governor and the General Assembly on the competitive state of the gaming industry in Missouri For two years the commission has advised the General Assembly that we believe that there could be a problem with the structure of the gaming industry but that the data is incomplete However we now fmd the data to be clear and compelling A problem exists in the Missouri gaming industry -- the gaming product is not competitive with our neighboring states This will create negative economic results and lower tax revenues
Due to navigational safety constraints most Missouri riverboats do not cruise It has been suggested by gaming analyst and by legislation filed in prior years that the elimination of the boarding time restrictions will help Missouri gaming operators economically and be more consumer friendly The commission believes that the current boarding time restrictions are detrimental to the consumer and make little sense since the riverboats are not leaving the dock They are an artificial barrier to entry and participation Yet the boarding times are essential to enforcing the loss limit A change in the statutes which
3(()
21)Q
i a
OIl
eliminates the boarding times but maintains the loss limit would make the enforcement of the loss limit impossible
Findings
Current Missouri statutes are not competitive with our adjoining states Consequently Missouri is at a competitive disadvantage Repealing the loss limit would make the Missouri operators more competitive Without this change the Missouri gaming industry will continue to be at a competitive disadvantage and over time will decline rather than prosper
Conclusioll
Section 313837 RSMo requires the commission to report annually to the general assembly on the effects ofthe loss limit on the competitiveness of the gaming industry in Missouri The findings above are intended to satisfy this statutory mandate The enactment of any changes in policy as a result of these findings are obviously the purview of the General Assembly and the Governor
Missouri Gaming Commission 1996Annual Report - Page 6
Effect of Tax Rate on Competitiveness
The Missouri tax rate currently mirrors that of its principle competitor the State of Illinois The MissourilIlIinois tax rate consists of a 20 base tax on adjusted gross receipts (AGR) In Missouri 10 of that tax (or 2 of AGR) is a local tax imposed by state statute The funds collected from this local tax are allocated to the home dock city or county fur services necessary for the safety of the public visiting the excursion gambling boat The remaining tax on AGR (18 of gross receipts) is placed in the Gaming Proceeds for Education Fund and may be spent only for public elementary secondary and higher education
Iowa has a graduated tax tbat caps out at 20 for adjusted gross receipts over $3 million Because the graduated rate reaches its cap at the relatively low ceiling 0pound$3 million Iowas effective tax rate is not significantly
The state of Kansas has recently allowed casinos operated by native American Indians These casinos are not taxed
For your future reference a table is contained in Appendix B setting forth the tax rate in each gaming jurisdiction and the regulatory restrictions that are imposed The chart below is a generalization of the tax rates in the various gaming jurisdictions Because of the subtleties of each states tax law it is difficult to precisely chart the rates For a defmitive explanation of the tax rates refer to the aforementioned chart in Appendix B
The Commission does not feel that the 20010 tax rate currently places our licensees at a competitive disadvantage The commission will continue to monitor the performance of all licensees and report developments as they occur
different from that of Missouri and Illinois
Licensees are also responsible for a $2 admission fee for each person who participates in a gaming excursion One dollar of this fee is remitted to the home dock city or county The remaining dollar is used to fund the regulatory activities of the Commission No general revenue is used for any activity of the Commission In addition to the $2 admission fee the gaming boat is billed monthly for the full cost of the enforcement agents assigned to the boat Either through fees or direct billing the gaming operators pay for the full cost of their own regulation
The State of Mississippi assesses a tax of 12 on AGR Unlike Illinois who is limited to licensing 10 gaming operations Mississippi has not limited the number of casinos licensed but has licensed all applicants that have been found suitable The Missouri law does not specifically limit the number of licenses that may be issued but places this responsibility in the hands of the Commission through a best interests of Missouri standard
Comparison of Gaming Tax Rates TaxonAGR
25
20 m ma )(
15 IImTaxRaeJ ~ 10
5
0 NV NJ LA
----------------------------------
MS IL IN IA MO CO so State
Missouri Gamilg Commission 1996Annual Report - Page 7
Missouri Gaming Commission Contributions to Education
Fiscal Year 1995
Gaming Proceeds for Education $ 5661628204
Bingo Tax Proceeds for Education $ 625370396
FY95 Tax Revenue from Gaming $6286998600
Fiscal Year 1996
Gaming Proceeds for Education $9973032067
Bingo Tax Proceeds for Education $ 468417852
FY 96 Tax Revenue from Gaming $10441449919
Total Tax Revenue from Gaming 516728448519
Does the GamblingMoneYiReallyGoo Fund Education
This may be the question inostfrequently asked ofpublic officials The simple answer is yes it does Pursuant to aconstitution~lamendntent passed by theGeneraIAssemblyasSJk 20 in 1992 andapproved bythe voters in a subsequent general electionmiddotall state tax money derived from the proceeds ofgamblirigisspent on education
The text ofthisconstitutional provision contained inArtiete 1lISection 39(d) reads as follows
All state revenues derived from the conduct ofaUgaming activities as are now or hereafter authorized by thiscomtitution orbyJaw unless otherwise provided bylaw on the ~ffectivedateofthissectionshallbemiddot appropriated beginoingJuly 1193solely for the pl1blic instittitions of elementary secondary and higheredueatioll and shaH~ot be included within the defmitionoftotal staterevenues in sectioid 7ofarticle X of this constitution
The tax revenues derivedfimnthe proceeds ofgambling foifiscalyeart998 are estimated to be $155 millionmiddot In ~d~itionto thegamblingm~neymiddot traditional stategeneralrevelluefundingfor publicschoo~ bas Uicreased every year since riverboatgillllblingwasenacted Thetotalstatebudget for educationwhichrepresents approximately 50of the average local school budget is $2965 billion Theg~~lIDgnlOney was designedtoslipplel1lent not replace the primatySufCeS ofpqb lie school fuDding[befunds derived from gambling have be~nusedfortheOiltstandingSchools TtilStFundthemiddotmiddot SchoolDistrict Bond Fund fotmainteniuiceandcapital exp~nclilures for public colleges and universities and to supplcentmenttheschool foundlltionmiddot formula
Missouri Gaming Commission 1996 Annual Report - Page 8
middot Where Does All the middot Gaming Tox Money Go
Orgallizationai Structure OFFICE OF THE EXECUTIVE DIRECTOR
Thomas J Irwin was named Executive Director by the Commission on October 21 1993 Mr Irwin came to the Commission after serving 3 years as Executive Assistant to St Louis County Executive Buzz Westfall Mr Irwin is a graduate ofHarvard University where he earned his masters degree from the Kennedy School ofGovernment He has served as the Chief Budget Officer for the Boston Police Department and was the Executive Assistant for Intergovernmental Affairs for St Louis mayor Vince Schoemehl from 1982 to
1988 Mr Irwin is a veteran of the United States Marine Corps having served
in Vietnam in 1968
i i Mr Irwin is responsible for the day-to-day operations of the
Commission He supervises all staff activities and reports to the Commission Among the staff positions reporting to the Director is Public Information
i K Officer Harold Bailey Mr Bailey is responsible for organizing and
distributing all public documents and reports
I In addition there are six primary functions of the Commission that
it have been divided into sections that report directly to Mr Irwin including
Administration Audit Bingo Corporate Securities Enforcement amp
t ~
Investigations and Legal amp Legislative Affairs
I ADMINISTRA110N
The administration section headed by Deputy Director Deborah A Ferguson provides a range of administrative financial and technical services to
help the Commission accomplish its goals The administrative services can be divided into the following functions accounts payable accounts receivable purchasing data processing budget facility leasing and human resources Accomplishments of the administration section would not have come to pass without the assistance ofChiefAccountant Denny Hodges Persomlel Officer Vicki Glenn Records Administrator Michael Shelhnan and Data Processing Manager John Bluma The administration staff benefited from the addition ofTen a Smith Diane Riddle and Mike Brizendine
The administration section continues to be a focal point of activity with the continued growth of the gaming industry l1te highlight of this past year was the relocation of the Jefferson City office Plaooing and design for the Jefferson City office began in 1995 and culminated with the move in September 1996 Highlights of the new building include a hearing room to conduct Commission meetings adequate file space to house the Commission
records that will be relocated from the St Louis office and the merging of the Bingo and Gaming staff into one facility to enhance coordination ofdaily activities
More specifically the duties of this section are as follows
~ Billing licensees for the processing and aoouallicenses issued to Level One and level Two Occupational employees that work for each riverboat To date there are approximately 9000 licensed employees
~ Billing licensed operators for the full cost of the enforcement agents assigned to each boat
~ Maintaining all Commission fmancial and personnel records which includes the monthly reconciliation of the Gaming Commission fund balance and processing aU payments made by the Commission
gt Preparation and implementation of the Commissions annual budget to ensure compliance with legislative intent
~ Handling all personnel matters and employee training and establishing and implementing written office policies for Commission staff
gt Preparation of fiscal notes to provide estimates to proposed legislation
Data Processiltg
The Data Processing section headed by John Blunm had a busy year in 1996 which included major systems developments as well as the daunting task of moving the Jefferson City office to a new location Some ofthe accomplishments of this important section include
~ Opening new commission offices for its agents at licensed premises
~ Moving the Jefferson City offices of the Riverboat Gaming and the Bingo workgroups to the new location This involved moving all computer workstations servers communications processors and printers to the new
Missouri Gaming Commission 1996 Annual Report - Page 10
building The two separate networks were consolidated into one large network that provides email between all members ofthe two sections for the fIrSt time and allows sharing of peripheral equipment such as laser printers
gt Final testing and implementation ofa billing system for enforcement billing to reimburse the state for expenses related to regulating the casino gaming industry
~ Automation ofannual MULES checks required of the 9000 plus gaming occupational license holders eliminating hundreds ofhours ofdata entry time
gt Upgrade of the physical inventory system to provide more complete reports and to track add-on costs to major inventory items
gt Design and development ofan occupational license history tracking system to provide a complete picture of license payments changes in license status duplicate badges issued and changes in employment status
gt Enhancing existing systems to meet new statutes and rules and regulations
AUDET
The audit section is responsible for the critical function ofensuring that the operators pay their taxes promptly and accurately This section headed by Jolm Davis former Internal Revenue Service Manager developed the Commissions tax remittal system that allows the Commission to capture tax remittance data on a daily basis The operators returns are audited by compliance audit siaffheaded up by senior accountant Kara Hardaway
The audit section also develops audit programs reviews and approves each boats system ofintemal controls conducts on-site performance audits reviews the quarterly CPA audits ofAdjusted Gross Receipts Tax and Admission Tax and reviews all internal audit reports prepared by the casinos internal audit staff
During 1996 the audit section revised Minimum Internal Control Standards that all operators must meet These standards were developed by the
audit staff after a lengthy review process that involved input from the IRS enforcement officers and industry experts
The audit section also implemented a system for tracking and depositing all non-tax revenue received from applicants such as application fees from applicants and reimbursements for Commission services
A summary ofsome ofthe audit sections programs and objectives is contained on page 22
BINGO
The Bingo Division is comprised ofthree separate sections which include the Administration Licensing Audit and Enforcement The Bingo Division Supervisor is Ron Pleus The Audit Section Supervisor is Randall Cahill and the Enforcement Section Supervisor is Sergeant Dwight Franklin The bingo statutes have been revised significantly in recent years requiring many administrative changes to occur within the Division Among the more daunting projects were the establishment ofa new licensing category for hall providers and the implementation ofa new supplier-based tax Specific duties within the three sections of the Bingo Division and the recent statntory changes are briefly outlined below
AdministrativeILicensiog Section - This section is responsible for the processing ofall correspondence and the licensing and maintenance ofover 1500 operator licensees which include all regular and special event bingo operators licenses and 200 hall providers annually This section deposits and records an tax and license receipts received on a daily basis This unit maintains a data base of over 31000 records ofindividuals that are involved in the management conduct andor operation ofbingo games and 3000 records of individuals involved as owners and officers of licensed Hall Providers Currently this staff consist ofthree employees Jane Bax Pam Murphy and Tina Freese In conjunction with the data processing staff the administrative section has developed an automated renewal application system which became fully operational January 1996 This system simplifies the renewal process for the licensee and eliminates wasted steps and duplicate information The system has proven to be a tremendous time saver for the not-for-profit volunteer organizations who are required to file renewals and also helps to reduce the staffmg cost and other administrative cost for the Division
Missouri Gaming Commissioll 1996 Allnual Report ~ Page 11
Audit Section - This section is responsible for the timely audit of all Bingo Product Manufacturers and Suppliers and assisting the Enforcement Section with oil-site inspections of bingo operators The audit staff has developed a comprehensive Manufacturer and Supplier audit procedure manual and has developed procedures for the inspection ofbingo operators The procedures for the inspection of bingo operators are used by both the Enforcement and Audit Staffs The audit section has audited all of the licensed Manufacturers and Suppliers during fiscal year 1996 These audits resulted in over $32000000 in unreported taxes and penalties The auditors also assisted enforcement with inspections and investigations of unlicensed suppliers and operators The section conducts on-site inspections of formerly licensed suppliers to determine ifthe products in inventory were being disposed of in accordance with the statutes The audit staff also assists the administrative staff in auditing the operators quarterly repom
Enforeement Section - This section is headed by Sgt Dwight Franklin a 17 year veteran ofthe Missouri Highway Patrol Sgt Franklin has six (6) officers assigned to the enforcement section Their duties include background investigations of all Manufacturers and Suppliers to include all the key personnel in those companies These investigations include criminal checks fmancial checks past employment history and all litigation involving the applicant In addition the enforcement section is responsible for investigating complaints on the licensed bingo organizations The complaints range from minor rule violations to thefts of large sums of money Complaints are received on a daily basis and are investigated on the basis of severity location and available manpower An additional duty of the Enforcement Section is to complete background investigations on all new potential employees of the Gaming Commission
CORPORATE SECURITIES AND FINANCE
The Commission has established a Section of Corporate Securities and Finance to address the challenge ofregulating the complex fmancial corporate structuring and contractual transactions involving publicly traded and privately held gaming companies This section is comprised of staff trained in legal accounting and business matters to perform examinations of these transactions
The suitability issues examined by the Corporate Securities and Finance Section include complex fmancial and legal suitability issues such as fmancial soundness corporate control legal compliance and procedural licensing issues
The sections examinations are coordinated closely with the Enforcement Division for background investigations and disciplinary matters
Typical transactions that are examined by the section include mergers and acquisitions public debt and equity issuances and private financings such as bank loans and credit facilities The goal of this new section is to provide the Commission with more thorough and sophisticated investigations and analysis of the suitability ofgaming companies and with a uniform system for providing this analysis on corporate securities and fmance issues Through this section the Commission hopes to identifY suitability problems ofapplicants and licensees earlier and more efficiently and to identifY plan for and possibly even avoid potential business closures of licensees due to fmandal matters
The Corporate Securities and Finance Section is headed by the Commissions General Counsel Greg Orner who reports directly to the Executive Director on corporate securities and finance matters The section also includes a Chief Financial Analyst position to be filled soon which will oversee the work ofthe fmancial staff examining the corporate secwities and fmance transactions
The Conunissions Financial Manager Pam Brown haS handled the fmandal analysis of the reported transactions up to now and will continue to perfonn many of the more complex transaction examinations and oversee the work of an accountant Pam Wheelis and a fmancial analyst (planned to be added next year) who are also assigned to the section
ENFORCEMENT
Enforcement for the Missouri Gaming Commission is provided by officers of the Missouri State Highway Patrol and agents of the Internal Revenue Service by way of Memorandums ofUnderstanding which set forth the responsibilities ofeach entity
The enforcement section is headed by Mel Fisher former Superintendent of the Highway Patrol The Gaming Division ofthe Highway Patrol is headed by Captain Dwight Hartung There are seventy-seven officers assigned to the Gaming Division and an additional six officers assigned to the Bingo Enforcement Unit
Some of the advantages ofusing Highway Patrol Officers as gaming agents include
JtfisSOUli Gaming Commission 1996 Annual Report - Page 12
the staff assigned are trained specialists in law enforcement and investigations thus saving the Commission the time effort and expense of recruitment and training
because the agents are licensed law enforcement officers they command immediate respect when interacting with licensees and customers aboard a riverboat as well as when they are in a foreign jurisdiction conducting an investigation
~ the Commission feels that it is important to rotate enforcement staff aboard the various boats this process is much easier with seasoned law enforcement officers who are used to being rotated between assignments as well as in and out of the gaming division
gt provides the ability to access sensitive law enforcement information from other jurisdictions
gt their experience in conducting investigations and handling emergency situations has proven invaluable
The Commissions background investigation units consist of three Highway Patrol Officers and one IRS agent The background investigations conducted by the Missouri Gaming Commission are thorough and take approximately four months to complete if no unusual complications or delays emerge The Commission not only investigates the finances and activities of the company and all its key people but traces the source ofall their funds to ensure that no criminal elements are funding the operation from behind the scene An outline that provides a sketch of a typical background investigation is contained on page 20
LEGAL amp LEGISLATIVE AFFAIRS
The legal amp legislative affairs section is responsible for all legal matters presented to the commission prior to litigation Any litigation involving the commission is handled by the Attorney Generals office In addition this section which is headed by Deputy Director Kevin Mullally develops and drafts legislation endorsed by the commission as well as all rules and regulations Moreover the legal section manages an administrative appeals docket where Mullally serves as Hearing Officer
Greg Orner serves as the commissions general coWlSel and works closely with the enforcement staff reviewing incident reports investigative issues and possible disciplinary actions In addition Mr Omer heads the Corporate Securities section
Some of tbe otber responsibilities of the legal section include
~ Drafting all resolutions for all commission actions and
gt preparing disciplinary complaints and denial orders for proposed action against licensees and
gt conducting quasi-legislative hearings on issues such as continuous docking and boat design and
gt providing legal research services and
gt organizing and maintaining records ofall official commission actions and commission policies and
gt handling inquiries from legislators constituents and other state regulatory agencies
The commissions legal staff is supported by paralegal Heather Grefrath and legal secretary Susan Sundermeyer This support staff is critical to daily operations ofthe legal section and is particularly valuable in the sections role in preparing and managing the rules and regulations all documents necessary for commission meetings and all documents declaring commission policy
In 1997 the legal section will be augmented with the addition ofstaff attorney Robert Little
PENDING LITIGATION
The Missouri Gaming commission denied one occupational license in 1994 thirteen occupational licenses in 1995 and thirty-five occupational licenses in 1996 Each aplicant is presumed WlSuitable and has the burden of proof to prove his or her suitability to the Conunssion An individual may request a hearing to attempt to prove suitability to the Commission by serving
Missouri Gaming Commission 1996Annual Reporl- Page 13
such a request on the commissions Executive Director The following is a list of pending litigation
Petitioner Venue
Bingo Systems amp Supply AHC Cape Girardeau Elks Lodge 639 AHC Cape Girardeau VFW Post 3838 AHC Edwin Pete Rhodes AHC Ideal Bingo Supplies Inc AHC Mary Cracchiolo AHC Maureen L Scott AHC Meramec-Amold Eagles Auxiliary AHC Myron B Carter Sr AHC Pan-Education Institute AHC Raymond J Drury AHC Raytown Women of Today AHC Sandra Termini AHC Stanley L Turner AHC Missouri Gaming Co ~Disc Action MGC Harrahs -Disciplinary Action MGC Boyd Kansas City Inc -Disc Action MGC Jeffery Koester -Denied License MGC Gary Franklin -Denied License MGC Mark Zwolle -Disciplinary Action MGC Anthony Civella -Exclusion MGC Peter Simone -Exclusion MGC Yolanda Nettles MGC Tracy Anderson MGC Carrie Gentry MGC Jimmie B Carsey MGC Cape Girardeau Elks amp VFW Circuit Court ofCape Girardeau County MGC v Veterans Commission
st Louis Public Schools Missouri Supreme Court W Todd Akin v MGC Missouri Supreme Court William D Cmmnisano Jr Missouri Court ofAppeals-Western District Pen-Yan Investment Inc Missouri Court ofAppeals-Western District
SUMMARY OF PENDING LITIGATION
There are fourteen bingo cases pending in the Administrative Hearing Commission
There are three disciplinary cases at the Commission level against gaming licensees pending the outcome ofPen-Yon Investment Inc v Boyd Kansas City Inc and MGC
Pen-Yon Investment Inc v Boyd Kansas City Inc MGC is pending in the Missouri Court ofAppeals Western District regarding disciplinary action taken against Boyd for associating in business affairs with a person who has a felony police record The Commission imposed a fine against Boyd and prohibited Boyd from collecting or distributing any funds from the machines under its service agreement with Pen-Yan
MGC v Missouri Veterans Commission St Louis Public Schools is pending in the Missouri Supreme Court regarding funds received from fmes imposed by the Commission
In W Todd Akin et 01 v MGC the Circuit Court ofCole County ruled in favor of the commission on summary judgment The suit challenges the Commissions authority to grant or deny Harrahs Maryland Heights Corp and Players Maryland Heights LP a license for a continuously docked excursion gambling boat within a man-made basin filled by water from the Mississippi River The petitioners have appealed and the matter is now before the Missouri Supreme Court
Cape Girardeau Elks Lodge et aI v MGC is pending in the Circuit Court of Cape Girardeau County regarding the Commissions decision to suspend the Cape Girardeau Elks Lodge bingo license
In the Matler oWilliam D Cammisano Jr there is an appeal pending in the Missouri Court ofAppeals Western District regarding the Commissions decision to place Mr Cammisano on its List of Excluded Persons
MISSOURI GAMING COMMISSIONS EXCLUSION LIST
The Missouri Gaming Commissionplaced two individuals in 1994 two individuals in 1995 and two individuals in 1996 on the commissions Exclusion List Placement of these individuals on the Exclusion List has been based on prior convictions
As a result of placement on the Exclusion List each individual shall not be permitted eoby into any portion of a riverboat gaming operation within the state ofMissouri and shall be ejected ifdiscovered on such premises Furthermore Excluded Persons shall be prohibited from contact of any kind with Missouri riverboat gaming operations Persons placed on the Listmay file a written petition with the Commission to request a hearing to have their name
JlrJissOIlri Gaming Commission 1996 Annual Report - Page 14
removed from the Exclusion List Currentlyone individual has appealed to the Western District of Missouri and two otbers are pending hearings by the Missouri Gaming Commission
MISSOURI GAMING COMMISSIONS DISCIPLINARY ACTIONS AGAINSTOCCUPATIONAL LICENSEES
The Missouri Gaming Commission has taken disciplinary action against twenty-eight occupational licensees as of September 30 1996 Preliminary
Orders for Disciplinary Action set forth statements of fact that support the proposed disciplinary action and the regulatory and statutory sections involved Individuals may request a hearing by serving such a request on the Commissions Executive Director Currently four individuals have sought hearings before the Commission one ofwhich is stm pending
Occupational License Denials 1994-1996
40
l 30
lt0 c Q)
0 lt5 20 i-Q) 0 E ~ 10
o Year Licenses 1994 1995 1996 IiiI Licenses Denials 1 13 35
Voluntary Exclusions On December 30 1996 after six months of research and consultation the
commission established a unique program to combat problem gambling The List of Disassociated Persons is the result of many months ofconsultation with treatment professionals that help problem gamblers The program allows problem gamblers to exclude themselves from Missouri riverboat casinos under the threat ofarrest for trespassing
In exchange for agreeing not to patronize Missouri riverboat casinos the problem gambler is removed from all casino mailing lists and direct marketing promotions In addition the operators are required to deny persons on the List check cashing privileges and must take away their VIP or players club card
Treatment professionals have advised the commission that the only way for a problem gambler to get help is to admit that heshe has a problem and to accept personal responsibility for that problem by seeking treatment
The Disassociated Persons program is a valuable tool in addressing problem gambling because it requires the individual to admit to having a gambling problem to agree to seek treatment and stay away from gambling casinos Furthermore it includes severe consequences if the problem gambler succumbs to the temptation to gamble Moreover it offers some protection to the problem gambler from the marketing promotions that encourage people to visit the casino properties
The program operates in the following manner
~ The problem gambler must obtain an application for placement on the List ofDisassociated Persons from the commission
~ the application contains various information about the individual an admission that the person is a problem gambler and agrees to stay off Missouri riverboats and seek treatment an authorization to release this information to riverboat operators as well as a Waiver releasing the commission and the licensee from any liability associated with enforcing the rules of the program
~ the application must be personally presented to a commission agent at which time the information is verified and the rules of the program are explained
~ the application is a closed record and its contents may only be disclosed to necessary commission and riverboat personnel
~ the commission considers all applications in closed session
~ once a person is placed on the List heshe cannot petition for removal After consulting with treatment professionals the commission concluded that problem gambling requires lifetime treatment and therefore there is no procedure for removal from the List
Missouri is the frrst jurisdiction in the world to propose a program such as this We will continue to monitor and refme the program and look forward to reporting to you on its impact in next years annual report
ft-Iissouri Gaming CommissiOil 1996 Annual Report - Page 16
Brief Timeline of Riverboat Gaming in Missouri ~ May 13 1991 - General Assembly passes House Bill 149 which authorized
referendum to be submitted to the voters in the November 1992 election to determine whether the State Tourism Commission shall have the power to issue riverboat gambling licenses
gt November 31992 - Missouri voters pass referendum allowing riverboat gaming with a majority ofnearly 63
gt January 1993 - Governor Carnahan announces intentions to push legislation creating an independent Gaming Commission to oversee riverboat gambling
April 29 1993 -- SBs 10 amp 11 creating the Missouri Gaming Commission are signed into law by Governor Carnahan and five Commissioners are appointed Robert Wolfson Chairman Robert Clayton William Quinn Dr Jenice Stewart and Avis Tucker
gt April 30 1993 -- Troy Harris et al v The Missouri Gaming Commission amended petition is filed The petition challenges the constitutionality of Senate Bills 10 amp II
gt- May 17 1993 -- The Missouri Gaming Commission holds its first meeting
~ September 1 1993 -- Proposed Rules and EmergencY Rules are adopted
gt September 20 1993 - 19 riverboat gaming license applications are filed with the commission
gt September 20 1993 - Clarence E Mel Fisher hired as Deputy Director for Enforcement
gt September 24 1993 - Commission contracts with the Internal Revenue Service to perform fmancial investigations for the commission Four IRS agents are assigned to the commission
~ September 28 1993 - Commissions enters into and inter-agency agreement with the Missouri State Highway Patrol to provide enforcement services for the commission
~ October I 1993 - Debbie Ferguson joins the commission as Deputy Director for Administration
November 3 1993 - Commission hires Tom Irwin as Executive Director and Kevin Mullally as Deputy Director for Legal amp Legislative Affairs
November 30 1993 -- Commission announces that it will begin background investigations on the following companies President Riverboat Casino-Missouri St Charles Riverfront Station Inc S1 Joseph Riverboat Partners The Missouri Gaming Company GDC (Supplier) IGT (Supplier) Casino Tokens (Supplier) Paul-Son Dice amp Card Company (Supplier)
gt December 22 1993 - Governor Carnahan signs Executive Order 93-50 designating the enforcement section ofthe Missouri Gaming Commission as a criminal justice agency
1994
gt January 25 1994 -- Missouri Supreme Court in Troy Harris v Missouri Gaming Commission strikes down games of chance including slot machines The court ruled that the Commission did have the authority to issue licenses to riverboat where games ofskill are played Specifically mentioned as games ofskill are poker and blackjack The Court remanded six games to lower court for determination as to whether they are games of skill or chance baccarat craps roulette wheel klondike table faro layout and video games ofchance
~ February 1 1994 -- Rules and Regnlations become effective
February 7 1994 -- Legislature passes resolution to place constitutional amendment on the ballot which would allow the legislature to approve games of chance (slot machines) on riverboats and floating facilities on the Missouri and Mississippi Rivers
gt- April 5 1994 -- Voters defeat constitutional amendment allowing games of chance (slot machines) by an unofficial count of 1263 votes
~ April 29 1994 - Finding of Preliminary Suitability issued to President Riverboat Casino S1 Charles Riverfront Station St Joseph Riverboat Partners and The Missouri Gaming Company
Missouri Gaming Commission 1996 AnnualReport - Page 17
Brief Timeline of Riverboat Gaming in Missouri ~ May 20 1994 -- Governor signs into law SB 740 which defmes games of
chance and enacts more stringent ethics provisions The bill also allows the commission to license a barge in an artificial basin as an excursion gambling boat if it can be demonstrated that safely concerns prevent an operator from cruising from that location
~ May 27 1994 - Commission authorizes as games of skin the following Blackjack Caribbean Stud Poker Poker Double Down Stud Poker Pia Gow Poker Poker Texas Hold Em the video representations ofthese games and Craps
gt May 27 1994 -- Commission authorizes President Riverboat Casino-Missouri to operate the Admiral as a continuously docked excursion gambling boat because cruising would cause danger to the boats passengers
gt May 27 1994 -- Gaming Commission issues first two excursion gambling boat licenses to President Riverboat Casino in st Louis and St Charles Riverfront Station in st Charles
gt May 27 1994 -- Initiative petition tbat would allow voters to approve games ofchance is submitted to the Secretary of State for approval of the form ofthe petition
~ June 6 1994 -- Secretary ofState notifies referendum petitioners that the Attorney General has approved the form of their petition The Secretary of State prepared the following petition title that was approved by the Attorney General
Shall the General Assembly be authorized to permit only upon the Mississippi River and the Missouri River lotteries gift enterprises and games ofchance to be conducted on excursion gambling boats and floating facilities
gt June 9 1994 -- Commission prioritizes Aztar Missouri Corporation Boyd Kansas City Inc and Harrahs North Kansas City as companies to be investigated for licensure pursuant to 11 CSR 45-4060
gt June 22 1994 -- Gaming Commission issues licenses to St Joseph Riverboat Partners in St Joseph and The Missouri Gaming Company in Riverside
~ September 20 1994 -- Commission issues a fmding ofpreliminary suitability to Harrahs North Kansas City Corporation
gt September 20 1994 -- Commission authorizes Harrahs North Kansas City Corporation and st Charles Riverfront Stationl to operate excursion gamblillg boats as continuously docked vessels In both cases the commission found that operating a cruising vessel from the proposed site would cause danger to the boats passengers and the project will generate permanent job creation and land-based development
gt September 22 1994 -- Harrahs North Kansas City Corporation is issued an excursion gambling boat license
gt September 28 1994 - Public hearing regarding Capitol Queen and Casino Jncs application for an excursion gambling boat license results in the commission denying CQCs license and prohibiting them from reapplying for two years
gt October 7 1994 - Commission places William D Cammisano Jr and John Termini on its list of excluded persons
gt November 8 1994 -- Voters approve games ofchance
~ December 9 1994 - Games ofchance are allowed on riverboats
gt December 27 1994 - St Charles Riverfront Station is issued a license to operate the St Charles II as an excursion gambling boat This marks the fIrSt time the commission has licensed a second excursion gambling boat for a single development
The approval was for St Charles Riverfront Stations second boat The flTSt boat continued to cruise until April 16 1996
Missouri Gaming Commission 1996 Annual Report - Page 18
Brief Timeline of Riverboat Gaming in Missouri 1995
)gt- February 22 1995 -- Commission announces it will begin background investigation on Hilton Kansas City Corporation for an excursion gambling boat license
~ March 30 1995 - State Auditor releases final audit report of the Missouri Gaming Commission No major deficiencies are noted
~ April 20 1995 - Commission repays $3 million start-up loan to state general revenue fund
)gt- April 25 1995 - Commission approves continuous docking petitions for Boyd Kansas City Inc and Hilton Kansas City Corporation
~ April 25 1995 -- The commission issues a finding ofpreliminary suitability to Aztar Missouri Gaming Corporation
~ April 26 1995 -- The commission issues an excursion gambling boat license to Aztar Missouri Gaming Corporation in Caruthersville Missouri
)gt- May 24 1995 - The commission announces it will begin background investigations on the following companies Harrahs Maryland Heights Corporation Kansas City Station Inc Players Maryland Heights Inc
gt August 28 1995 - Pursuant to House Bill 574 the duties of the Missouri Horse Racing Commission are transferred to the Gaming Commission
~ September 12 1995 - The commission issues a fmding of preliminary suitability to Boyd Kansas City Inc
September 13 1995 - The commission grants the petition ofHarrahs Maryland Heights Corporation and Players Maryland Heights Inc to operate continuously docked excursion gambling boats at their joint venture in Maryland Heights
)gt- September 13 1995 - The commission issues an excursion gambling boat license to Boyd Kansas City Inc
)gtshy November 16 1995 shy The commission fines the following companies for associating with either socially or in business affairs persons with felony police records or persons with a notorious or unsavory reputation Boyd Kansas City Inc Harrahs North Kansas City Corporation The Missouri Gaming Company
1996
)gtshy February 15 1996 - The commission grants continuous docking rights to Aztar Missouri Gaming Corporation for a second boat in Caruthersville Harrahs North Kansas City for a second boat and Kansas City Station Corporation for two boats in Kansas City
~ April 16 1996 - The commission grants continuous docking rights to Argosy in Riverside Missouri S1 Joseph Riverboat Partners and 81 Charles Riverfront Station
~ May 15 1996 - The commission issues a license to Harrahs North Kansas City for the Lucky Star This is the second boat at the Harrahs North Kansas City mcility Included in the project is a 200-room hotel expanded parking and meeting space
~ June 19 1996 -- The commission places William Canunisano Jr on Exclusion List
~ June 27 1996 - The commission places Peter Simone and Anthony T Civella on Exclusion List
August 28 1996 - The commission takes disciplinary action against Boyd Kansas City Inc for periodic failure to take and report turnstile readings
~ October II 1996 - The commission issues a finding of prel iminary suitability to Hilton Kansas City Corporation and Flamingo Hilton Riverboat Casino LoP
October 18 1996 - TIle commission issues a Class B riverboat gambling license 10 HUlon KlIlIStIS City Corporation and a CltlSs A riverboat gambling license 10 Flamingo Hillon Riverboat CtlSino LP
Missouri Gaming Commission 1996Annual Report - Page 19
Outline of a Background Investigation
Review Application fin Completeneiis
~ Establish number ofkey people
~ Check disclosure forms for completeness
gt Check tax release forms
City Selection Process
~ Contact city to determine how the gaming operator was selected
gt Interview Mayor and City Council members
~ Ifa steering committee was used interview members of that committee
Determine ifany city officials own stock in the selected gaming company
~ Obtain minutes ofcouncil meetings that pertain to riverboat issues (a)selection (b) resolution and (c) ordinance
gt Contact city attorney who handled negotiations with gaming company and obtain correspondence between city and gaming company
~ Contact City Economic Development Director (if applicable)
Docksite
gt- Land selected for gaming operation
J Who was it purchased from (how long have they owned the property) J Price (copy ofcontract)J Copy of plat map and legal description J Determine ifany ofcity officials or selection committee members have
ownership interest in docksite
gt Corps ofEngineers Permit
J Status
J Any concerns by Corps J Wetlands involved
~ Contact DNR for any known concerns in area
gt Check with city for any known dwnpsites with possible hazardous material
gt Developmental agreement between city and gaming operator (obtain copy from city)
gt Detennine if development is feasible
J Is support facility land based or floating J Projected nwnber ofjobs economic aid to area J Traffic flow to area - what improvements are needed - who will pay
for improvements
Riverboat
gt Locate boat and obtain all infonnation about boat (cruise schedule liability carrier)
gt Establish design ofriverboat
gt Determine emergency medical plan for boat
gt Determine ifCoast Guard and other safety requirements have been met
Gaming Operator (Public Corporation Partnership Private Company)
gt Establish contact person with operator
J Determine attorney of record for gaming company J Any missing items from application advise contact person
gt Establish home office (Financial Headquarters)
J Determine a good date and location where all key people can be contacted for a personal interview
J Where can financial record be located
Missouri Gaming Commission 1996Annual Report - Page 20
~
Outline of a Background Investigation
J Breakdown ofmanagement (corporate Board ofDirectors major stockholders)
J Establish flow chart of key people and companies owned by gaming operator
~ Investigation ofKey People will include but not be limited to the following
J Check previous employment work records J Check state local and federal intelligence files J Check for other gaming licenses ifapplicable (check with appropriate
regulators)J Check state federal and local courts for any civil litigation J Check for any arrest record J Check personal and business credit J Check state and local tax status IRS will handle federal taxes
gt Other locations ofgaming operations (currently operating and pending locations)
J Contact gaming regulators for respective locations J Travel to sites to view operations
Establish a file for all key people investigated with summaries establish a file for financial records with summary offinancial viability ofcompany and ability to complete obligations to the city and State ofMissouri Establish a file for other locations of licensure along with summary
Associated Investigations
gt All allegations of Any nature must be investigated and a file established with a written summary
~ Associated investigations must be done in a complete and thorough manner and all reports written accurately
gt Upon completion ofall investigations complete reports and summaries a separate press releasable summary must be written This summary must be approved by Gaming Commission legal staff
Missouri Gaming Commission 1996 Annual Report - Page 21
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Missouri Gaming Commission Compliance Audit Objectives for Licensees
ObjectiveAudit Area ~~~~~~~~~
To ensure accuracy of ticket and turnstile counts reported to MGC including compsIVlPs stayovers and promotions
Table Games
Ticketffurnstile
To ensure accuracy of AGR for table games reported to MGC
Electronic Games To ensure accuracy of AGR for electronic games reported to MGC
Cage Accowltability To ensure accuracy ofcage accountability forms and compliance with internal controls and tax reporting regulations
Observations Cage Main Bank Pit Area Slot Area Turnstile Ticketing
PurchaselRedemptions
$500 Loss Limit
Stayover Procedures
To determine that cashiers are complying with internal controls for chips tokens gaming scrip and cash
To determine compliance with MO statutes and internal controls
To determine compliance with MGC regulations and internal controls
To ensure that manual jackpot payouts are properly handled and the required tax fomIS are completed Manual Jackpot Payouts
To ensure that hopper fills are properly handled and comply with internal controls Hopper Fills
To ensure that table fills are properly handled and comply with internal cootrols Table Fills
To ensure that table credits are properly handled and comply with internal controls Table Credits
To ensure that tracking procedures comply with internal controls and the currency transactions are properly completed Patron TrackingCurrency Transaction Reporting
Imprest Bank Balancing To ensure that proper balancing and accountability is performed during a shift change
Coin Vault To ensure proper maintenance of coin chip and token inventory
Satellite CageSSlot Booths To ensure compliance with internal controls and consistency with main cage procedures
TipsGratuities To ensure compliance with MGC regulations and internal controls
Cage AccessSecurity To ensure compliance with internal controls
Turnstile To ensure accuracy of turnstile count for admissions tax calculation
Ticketing To ensure comp Hance with internal controls and proper handling of stubs voids and issuance
MiscellaneousOther
Surveillance Tapes To review activity for hard soft and tip counts and drops to verify compliance with internal controls
Workpaper Preparation and To establish standardized procedures for MGC audit workpapers and audit reports Audit Reports
-
Missouri Gaming Commission 1996 AnnualReport - Page 22
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Audit Area
Monthly Financial Statement Review
Engagement Letters
Objective --shy
To perform a preliminary review ofmonthly financial statement information for proper completion of fmandal statement templates verification ofadjusted gross receipts to MGC reports and to detect any unusual items which justifY further review when conducting on-site audit
To give advance notification to each boat of the date and scope ofaudit being performed
Financial Statement Verification To determine consistency ofmonthly financial statement information submitted to MGC with boats general ledger system
Balance Sheet Accounts
CashCash Reserve Balance
Cash Receipts
Cash Disbursements
shy -- shy
To determine the existence consistency and fair presentation of the cash balance on the monthly fmancial statements
To determine the consistency and filir presentation of the cash balance on the monthly financial statements and the source of large cash receipts other than gaming revenue
___I
To determine the consistency and fair presentation of the cash balance on the monthly fmancial statements and to trace the outflow of large cash disbursements
i
I
--
AccountslN Notes Receivable
Accrued Admission and Gaming Tax Liability
Chip and Token Liability
Progressive Jackpot Liability
To determine the consistency and fair presentation of the accounts receivable andor notes receivable balance in the monthly fmancial statements
To determine the consistency and fair presentation of the accrued admissiongaming tax liability balance in the monthly financial statements
To determine the consistency and fair presentation of the chip and token liability balance in the monthly financial statements
To determine the consistency and fair presentation of the progressive jackpot liability balance in the monthly fmancial statements
---shy
Tips and Gratuities (Accrued Liability)
Customer Deposit Liability
Accounts Payable
Income Statement Accounts
Revenne - Table Games
To determine the consistency and fair presentation of the accrued tips and gratuities liability in the monthly fmancial statements
-lt ---- shy
To determine the consistency and fair presentation of the customer deposit liabilities in the monthly fiscal statements To determine the consistency and fair presentation ofaccounts payable balance in the monthly fmancial statements
--shy
To determine the consistency and fair presentation of table games revenue as reported to MGC daily and in the monthly fmandal statements
Revenue - Electronic Games To determine the consistency and fair presentation of electronic games revenue as reported to MGC daily and in the monthly financial statements
Missouri Gaming Commission 1996 Annual Report - Page 23
------------
---------
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Revenue - Admissions To detennine the consistency and fair presentation ofadmissions revenue as reported to MGC daily and in the monthly fmancial statements
Promotional Expense To determine that comps are properly recorded as expenses and not deducted from revenue in accordance with GAAP
Pre-Opening Costs To determine whether certain pre-opening and licensing costs are properly expensed or amortized over future periods in accordance with GAAP
Workpaper Preparation and Audit Reports To establish standardized procedures for MGC audit workpapers and audit reports
AissOllri Gamillg Commission 1996 Anllual Report - Page 24
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AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
c
Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
----shy
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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I IAztar Missouri Corporation
r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
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~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
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$lot Machines 349
TABLE OF CONTENTS -
THE COMMISSIONERS ~~~ ~ ~ ~bullbullbullbullbullbullbulll
INTRODUCTION bullbullbullbullbull bullbullbullbullbullbullbull~bullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbull bullbullbullbullbullbullbullbullbullbullbullbullbullbullbull~bullbullbullbullbullbullbullbullbullbullbull ~bullbullbullbullbullbull bullbullbull 2
STATUTORY PROVISIONS ~_ 3
Effect othe $500 Loss Limit f Tax Rate ~ Contributions to Education ~ ~ _ 8
ORGANIZAtIQNALSTRUCTURE-~ ~~ ~ ~~~ 10
Executive Director - middot middotmiddotmiddotmiddot middotmiddotmiddot middot middotmiddot) middot middotmiddotmiddotmiddotmiddotcmiddot middot 10 Administrati~n middot -- ~O Data Processing - Audit ~ - _ 11 Bingo_ ~ - _ 11 Corporate Securities and Finance middot ~ 12 EnQrcement 12shyLegal and Legislative Affairs )3
OCCUPAtIONAL LICENSE DENIAIS ~ ~~~~15
VOLUNTARY EXCLUSIONSbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbull~bullbullbullbullbull bullbullbullbull bullbullbullbullbullbullbullbullbullt bullbullbullbullbullbullbullbullbullbullbull~bullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbull~~bullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbull~bullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbullbull lfi
TIMELINEOF RIVERBOAT GAMING INMISSOURI _~~~ 17
OUTLINE OF A BACKGROJJND INVESTIGATION ~ ~ ~20
COMPLIANCE AUDIT OBJECTIVES FOR LICENSEES ~7 12
SEMI-ANNUAL FINAN CIAI AUDIT OBJECTIVES FOR LICENSEES ~ j 13 ( f - I - ~
GAMING OPERATOR TAX SUMMARIES ~ - APPENDIX A
SUMMARYQF NATIONAL GAMING POLICIES ~ - ~ APPENDIX B
GAMING COMMISSION FISCAL REpORT ~~~ APPENDIX C shy
)OPERATOR SUMMARIES APPENDIX D
The Commissioners
Robert L Wolfson Chairman
Robert L Wolfson is Chainnan of the Board for Wolfson Capital Venture serves on the Mark Twain Chainnans Board is a member of the Board of Trustees for Brandeis University and is on the Board of Trustees ofJewish Hospital in St Louis He is the co-founder of the st Louis Blues of the National Hockey League and served as Vice-President and Treasurer of the St Louis
Blues Mr Wolfson has a long history as a successful businessman having owned and managed many successful retail and commercial ventures Additionally Mr Wolfson is the recipient ofmany awards from civic organizations and is well known for his philanthropic endeavors
Robert M Clayton II Vice-Chairman
Mr Clayton is a senior partner ofClayton amp Clayton law firm He has served on the Board of Directors of Roosevelt Bank and has also served as a member ofthe Compensation and Stock Option Committee He serves on the Mark Twain Home Board Mr Clayton is former President of the Missouri Bar and is the Treasurer of the Missouri Bar Plan Mutual Insurance Company a member of its Executive Committee and Chairman ofthe Bars
Underwriting and Finance Committee Mr Clayton also serves as a member and Director of the Bar Plan Foundation
William J Quinn
Mr Quinn is a retired 23 year veteran ofthe FBI where he served as supervisor ofthe agencys Organized Crime and Racketeering unit in Kansas City He also served as National Chairman ofthe Former Agents ofthe FBI Foundation He is a veteran ofthe United States Navy and holds a BBA degree from Northeastern University in Boston Massachusetts In addition Mr
Quinn has owned and operated a private security company
- ------~------------------------~
Missouri Gaming Commission 1996Annual Report - Page 1
Dr Jenice Prather Secretary
Dr Jenice J Prather is a CPA and accounting professor at the University of Missouri-Columbia She has published over twenty articles in national and international academic accounting journals She has received numerous honors and awards for her research and
teaching including a two year Research Associateship from Washington University and a KPMG Peat Marwick International Accounting Research Fellowship She holds leadership positions in the American Accounting Association the National Association of Black Accountants the American Institute ofCPAs the Institute of Management Accountants and the Missouri Society ofCPAs She was on the Price Waterhouse National Advisory Board and currently is on the MIZZOU Credit Union and the Board ofTrustees ofSecond Missionary Baptist Church
Avis Tucker
Avis Tucker is the President of Star-Journal Publishing Co and serves as Editor and Publisher of The Daily StarJournal in Warrensburg Missouri She also serves as President ofJohnson County Broadcasters Inc Additionally Mrs Tucker serves on the Missouri Commission on the
Organization ofthe Judicial Deparbnent the Whiteman Air Force Base Community Council the Warrensburg Chamber of Commerce and the Childrens Mercy Hospital Public Affairs Committee Mrs Tucker has received number ofawards for her professional accomplishments and her public service work most recently the Chancellors Award from UMKC
Introductioll The Missouri Gaming Commission was established in 1993 to regulate
riverboat gambling in Missouri In addition the Commission assumed the responsibility for regulating charitable bingo games on July I 1994
The five member Commission is charged with maintaining public confidence in legaliTed gambling and ensuring that no criminal elements are allowed to infiltrate licensed gaming operations It is important that the Commission do its job well so that public confidence in the gaming industry is established thereby allowing the industry to reach its goals ofeconomic development job creation and the promotion of Missouri as a major tourist attraction
As a state regulatory agency the Commission and its staffhold themselves to the highest ethical and professional standards and strive to conduct all business in a manner which maintains the public trust Pursuant to statute a strict Code ofEthics has been adopted prohibiting conflicts of interest and ex parte commtmications
The key regulatory responsibilities ofthe Commission are afollows
gt to conduct thorough background investigations on all key persons involved in the gaming operation including substantial owners management personnel key operational employees and suppliers
gt- to thoroughly investigate the finances ofapplicants and their key persons to determine if they have the fmancial resources and responsibility to meet their proposed obligations
gt to screen all occupational licensees including dealers slot attendants food and beverage servers security and surveillance personnel and all other employees who have access to the gaming area and investigate the background ofeach to ensure that the personnel operating the casino are of sufficient character to maintain the integrity of Missouri gaming
gt to photograph and fmgerprint each employee so as to maintain a complete and accurate database of boat personnel
gt to assign appropriate staff to each gaming operation to be present at all times when gaming is conducted Enforcement agents are charged with
ensuring tbat gaming is conducted in accordance with the Missouri gaming statute the rules and regulations of the commission and the operators own internal controls
gt to ensure that the safety of the passengers is guarded to conduct investigations of suspected wrongdoing and to receive complaints from customers
gt to review and audit the fmances of the gaming operation through the combined use ofCommission staff and independent public accounting firms that are retained by the licensee and approved by the Commission and
gt to monitor the financial integrity of gaming operators to ensure that Missouris financial interests are protected
Pursuant to statute the Commission has entered in to a Memorandum of Understanding with the Missouri State Highway Patrol to perfonn background investigations and provide enforcement personnel on the boats Under the tenus of this agreement the Patrol also provides enforcement personnel for the Division ofBingo
lbe Commission also has a Memorandum ofUnderstanding with the IRS to assist with the financial portion of the background investigation and to provide ongoing expertise with regard to the internal control procedures and the reporting and payment of taxes
At the end of 1996 ten riverboat casinos were operational at eight different developments in Missouri Sunnnaries of the operators fmancial reports that are required by the Commission are contained in Appendix C Harrahs Maryland Heights Inc and Players Maryland Heights Corporation are in the process of being investigated
Ibe Commission is also responsible for approximately 870 bingo licensees and bas successfully implemented the new requirement oflicensing hall providers In addition the commission has successfully executed the difficult task of implementing the new supplier-based bingo tax that took effect January 11995
MisWllri Gaming Commission 1996 Annual Report - Page 2
The Effect of the $500 Loss Limit on Competitiveness
For the past two years the commission bas reported that the $500 loss limit imposed by statute places Missouri riverboat gaming operations at a competitive disadvantage as opposed to similar operations in the adjoining states of Illinois and Iowa We opined at that time that the $500 loss limit contributes to a large decrease in state revenne
The commissions comments in prior years have been tempered by our knowledge that the riverboat gaming industry in Missouri was in its formative years and that little data was available to study After more than two years of Missouri operating history there is now adequate data from Missouri and its adjoining competitive states to expand our comments on the loss limits and state our findings with more precision
Negative Impact on Customer Satisfaction
The most frequent complaints to Commission staff and regulatory personnel in their contacts with the public are those dealing with the loss limit and the boarding restrictions The restriction on boarding is a method to enforce the loss limit
In addition the loss limit continues to be difficult to enforce Although the commission uses its best efforts to enforce the limit the customers desire to circumvent it consumes a tremendous amount of manpower Enforcement agents spend a significant amount of time dealing with violations and customer disputes Gaming boat sergeants regularly testifY that their most difficult problem was enforcing the $500 loss limit
The Loss Limit and the Problem Gambler
The loss limit has been described as a measure intended to deal with problem gaming However the success of the loss limit in addressing the problem ofcompulsive gambling remains undetermined
The primary argument for the $500 loss limit is that it helps deter the problem gambler Ifthe loss limit controlled the behavior of the problem gambler it would be a laudable requirement
Mental health professionals have told the commission that left untreated the problem gambler will find a way to gamble Whether it is by reboarding another cruise using some other persons loss limit card by crossing the river into another jurisdiction where there is no loss limit or gambling illegally the problem gambler will find a way to exercise the compulsion
The commission in relying on the treatment professionals has focused its battle against
problem gambling on education MissQun hasbeen()ne ofprevention and treatment Missouri has been one of the the most aggressive states most aggressive states in in c9mbatjpgproblem combating problem gambling Missouri is the first jurisdiction gambling Missouri is the to create a system whereby firstjlIrisdictiontomiddot create a problem gamblers can exclude systemwllerebyproblem themselves from casinos under threat ofarrest for trespassing gamblers can exclude In addition the commission has fhemselvesfrom casinos required operators to adopt
l)I1der threat of liITest forprograms to educate problem gamblers and has arranged trespassing~ funding for the recruitment and training oftreatment counselors who must be certified by the Missouri department ofmental health
The Loss Limit and the Typical Consumer
While treatment professionals tell the commission that loss limits do not inhibit the compulsive gambler Wall Street analysts who study the industry report that the loss limit has a negative impact on the normal consumer looking
Missouri Gaming Commission 1996 Annual Report - Page 3
for an entertainment experience Gaming is an entertainment industry In the entertainment industry the consumers demand a product that they can enjoy during their leisure time on their own terms
In Missouri there are consumers that indicate they dislike the product which they are being offered Many of these conswners will go out of their way even travel to another state to fmd a product that is more user friendly A cursory survey of the license plates in the parking lot I)fthe Casino Queen in East 8t Louis Illinois adequately demonstrates this point
Many Missouri gaming customers complain that the loss limit is inconvenient intrusive and that it detracts from the entertainment experience they seek at Missouri riverboats To have to account for ones spending during what is supposed to be a leisure activity strikes many as a personal encroachment The fact that this requirement is imposed and enforced by the government further aggravates this perception
Many Missouri consumers react to this restriction by taking their leisure time and tax dollars across the border to JIlinois Iowa or Kansas where there are no limits Furthermore it is apparent that the loss limit severely restricts Missouri riverboat operators from drawing tourist customers from other states Consumers choice as to how to spend their discretionary leisure dollars is evident in the competitive gaming arena
The Missouri gaming law was adopted by the people for its potential to generate economic development its ability to raise needed revenue for education and because it is a leisure activity that many want to pursue The loss limit detracts from aU of these goals While Missouri is currently the beneficiary ofa significant amount of capital investment and new job creation the continuing negative impact of the loss limit renders our economic future in this area uncertain Because of the loss limit Missouri riverboat operators are less competitive the state is losing money to its neighboring states there is a reduction in the number of available jobs and the number of riverboats that can successfully operate in Missouri is restricted
Tax revenues from gaming have benefited education While tax revenues from gaming are still growing after only two years Missouri has seen
~ -
How does the Loss Linlit Work
Pursuant to sect 313805 RSMo the commission is required to regulate the wagering structure to include a maximum loss of five hundred dollars per individual player per gambling excursion In order to enforce this provision the commission requires the following procedure
I In order to board an exctrrsion gambling boat a customer most stand in line to obtain a ptrrchase authorization coupon (scrip) This scrip must be signed by the customer in the presence of a licensed riverboat employee
2 After the customer receives the scrip heshe must get in another line to board the riverboat The scrip also serves as the customers boarding pass
3 The scrip which is time and date stamped must be printed with boxes of denominations ofwhich the total ofall boxes shall not exceed $500 These boxes shall be canceled by pennanent black marker at the time the patron presents the scrip in the riverboat casino lfthe scrip is not signed at the time of presentment or the date and time are not valid the scrip shall be confiscated from the customer If the scrip is valid and there are sufficient available boxes the cashier shall cancel the appropriate number of boxes with a pennanent black marker and complete the transaction
4 In a situation where a customer wishes to buy chips at a table the procedtrre is the same except that the dealer stops the game to execute the transaction On many occasions the use of the scrip to convert cash to chips will slow up the game This is another example of customer dissatisfaction arismg out of the process
Transcript Missouri gaming commission meeting November 25 1996 pages 8 II and 1~17 (Bruce Turner Salomon Brothers) pages 44-46 (Joe Coccimiglio Prodential Securities) pages 57-58 (Tom Ryan Bankers Trust) pages 65-68 (Larry Klatzkin Donaldson Lufkin ampJenrette) pages 84-90 (Richard Byrne Merrill Lynch)
Missouri Garning Commission 1996 Annual Report - Page 4
Win Per Admission CoJql8ring Mssouri and IIhlls
those revenues fall short ofpredictions Analysts from Wall Street tell the commission that we are exporting our tax dollars to other states In a recent commission meeting regarding market size a well respected gaming analyst opined that while Missouri supplies 73 ofthe gaming market in the S1 Louis area it captures only 50 ofthe revenue Z
Finally the gaming experience ofconsumers who do visit Missouri gaming operators is less desirable than the experience offered by competitive states Missouri is offering a more cumbersome and less enjoyable product The commission believes that the gaming policy for Missouri should retain the Missouri dollars in Missouri and attract dollars from other states Our current policy has the exact opposite result
The Costs 0Competitive Ineriority
Limiting the ability ofMissouri operators to offer a competitive entertainment product has direct economic costs which are easily illustrated Missouri gaming riverboats are larger more luxurious and offer more non-gaming amenities than competitors in neighboring states Yet they fail to compete in economic terms even though the bulk ofthe popUlation seeking the entertainment product lives in Missouri
For example the Casino Queen in East St Louis Illinois and the Alton Belle in Alton Illinois combined have less capital investment than St Charles Riverfront Station which has consistently expanded and reinvested since it opened in May 1994 In addition these Illinois gaming facilities consist primarily of parking facilities and the gaming casino They offer no non-gaming amenities other than limited restaurant facilities
In spite of these negative competitive factors the two Illinois facilities regularly outperform SCRS in spending per customer Similarly Illinois riverboats in the St Louis area fare significantly better in gaming revenue per square foot gaming revenue per position and admissions per square foot One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
pages 104-106 (John Maxwell Standard amp Poors) and pages 115-118 (Steve Schneider Stife Nicoaus) See also Minutes ofMissouri gaming commission meeting May 24 1995
Missouri Gaming Commission minutes November 25 1996page 27 quoting Jason Ader Bear Stems gaming analyst Examples ofsome of the non-gaming amenities included in Missouri projects include themed restaurants movie theaters botels meeting space retail shopping child
care centers micro breweries an 18th century railroad car restored to its original luxury fountain displays and theaters for live entertainment
Missouri Gaming Commission 1996Annual Report - Page 5
2
The Problem is Clear - How does Missouri Address the Problem
Missouri statutes require the commission to report annually to the Governor and the General Assembly on the competitive state of the gaming industry in Missouri For two years the commission has advised the General Assembly that we believe that there could be a problem with the structure of the gaming industry but that the data is incomplete However we now fmd the data to be clear and compelling A problem exists in the Missouri gaming industry -- the gaming product is not competitive with our neighboring states This will create negative economic results and lower tax revenues
Due to navigational safety constraints most Missouri riverboats do not cruise It has been suggested by gaming analyst and by legislation filed in prior years that the elimination of the boarding time restrictions will help Missouri gaming operators economically and be more consumer friendly The commission believes that the current boarding time restrictions are detrimental to the consumer and make little sense since the riverboats are not leaving the dock They are an artificial barrier to entry and participation Yet the boarding times are essential to enforcing the loss limit A change in the statutes which
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eliminates the boarding times but maintains the loss limit would make the enforcement of the loss limit impossible
Findings
Current Missouri statutes are not competitive with our adjoining states Consequently Missouri is at a competitive disadvantage Repealing the loss limit would make the Missouri operators more competitive Without this change the Missouri gaming industry will continue to be at a competitive disadvantage and over time will decline rather than prosper
Conclusioll
Section 313837 RSMo requires the commission to report annually to the general assembly on the effects ofthe loss limit on the competitiveness of the gaming industry in Missouri The findings above are intended to satisfy this statutory mandate The enactment of any changes in policy as a result of these findings are obviously the purview of the General Assembly and the Governor
Missouri Gaming Commission 1996Annual Report - Page 6
Effect of Tax Rate on Competitiveness
The Missouri tax rate currently mirrors that of its principle competitor the State of Illinois The MissourilIlIinois tax rate consists of a 20 base tax on adjusted gross receipts (AGR) In Missouri 10 of that tax (or 2 of AGR) is a local tax imposed by state statute The funds collected from this local tax are allocated to the home dock city or county fur services necessary for the safety of the public visiting the excursion gambling boat The remaining tax on AGR (18 of gross receipts) is placed in the Gaming Proceeds for Education Fund and may be spent only for public elementary secondary and higher education
Iowa has a graduated tax tbat caps out at 20 for adjusted gross receipts over $3 million Because the graduated rate reaches its cap at the relatively low ceiling 0pound$3 million Iowas effective tax rate is not significantly
The state of Kansas has recently allowed casinos operated by native American Indians These casinos are not taxed
For your future reference a table is contained in Appendix B setting forth the tax rate in each gaming jurisdiction and the regulatory restrictions that are imposed The chart below is a generalization of the tax rates in the various gaming jurisdictions Because of the subtleties of each states tax law it is difficult to precisely chart the rates For a defmitive explanation of the tax rates refer to the aforementioned chart in Appendix B
The Commission does not feel that the 20010 tax rate currently places our licensees at a competitive disadvantage The commission will continue to monitor the performance of all licensees and report developments as they occur
different from that of Missouri and Illinois
Licensees are also responsible for a $2 admission fee for each person who participates in a gaming excursion One dollar of this fee is remitted to the home dock city or county The remaining dollar is used to fund the regulatory activities of the Commission No general revenue is used for any activity of the Commission In addition to the $2 admission fee the gaming boat is billed monthly for the full cost of the enforcement agents assigned to the boat Either through fees or direct billing the gaming operators pay for the full cost of their own regulation
The State of Mississippi assesses a tax of 12 on AGR Unlike Illinois who is limited to licensing 10 gaming operations Mississippi has not limited the number of casinos licensed but has licensed all applicants that have been found suitable The Missouri law does not specifically limit the number of licenses that may be issued but places this responsibility in the hands of the Commission through a best interests of Missouri standard
Comparison of Gaming Tax Rates TaxonAGR
25
20 m ma )(
15 IImTaxRaeJ ~ 10
5
0 NV NJ LA
----------------------------------
MS IL IN IA MO CO so State
Missouri Gamilg Commission 1996Annual Report - Page 7
Missouri Gaming Commission Contributions to Education
Fiscal Year 1995
Gaming Proceeds for Education $ 5661628204
Bingo Tax Proceeds for Education $ 625370396
FY95 Tax Revenue from Gaming $6286998600
Fiscal Year 1996
Gaming Proceeds for Education $9973032067
Bingo Tax Proceeds for Education $ 468417852
FY 96 Tax Revenue from Gaming $10441449919
Total Tax Revenue from Gaming 516728448519
Does the GamblingMoneYiReallyGoo Fund Education
This may be the question inostfrequently asked ofpublic officials The simple answer is yes it does Pursuant to aconstitution~lamendntent passed by theGeneraIAssemblyasSJk 20 in 1992 andapproved bythe voters in a subsequent general electionmiddotall state tax money derived from the proceeds ofgamblirigisspent on education
The text ofthisconstitutional provision contained inArtiete 1lISection 39(d) reads as follows
All state revenues derived from the conduct ofaUgaming activities as are now or hereafter authorized by thiscomtitution orbyJaw unless otherwise provided bylaw on the ~ffectivedateofthissectionshallbemiddot appropriated beginoingJuly 1193solely for the pl1blic instittitions of elementary secondary and higheredueatioll and shaH~ot be included within the defmitionoftotal staterevenues in sectioid 7ofarticle X of this constitution
The tax revenues derivedfimnthe proceeds ofgambling foifiscalyeart998 are estimated to be $155 millionmiddot In ~d~itionto thegamblingm~neymiddot traditional stategeneralrevelluefundingfor publicschoo~ bas Uicreased every year since riverboatgillllblingwasenacted Thetotalstatebudget for educationwhichrepresents approximately 50of the average local school budget is $2965 billion Theg~~lIDgnlOney was designedtoslipplel1lent not replace the primatySufCeS ofpqb lie school fuDding[befunds derived from gambling have be~nusedfortheOiltstandingSchools TtilStFundthemiddotmiddot SchoolDistrict Bond Fund fotmainteniuiceandcapital exp~nclilures for public colleges and universities and to supplcentmenttheschool foundlltionmiddot formula
Missouri Gaming Commission 1996 Annual Report - Page 8
for an entertainment experience Gaming is an entertainment industry In the entertainment industry the consumers demand a product that they can enjoy during their leisure time on their own terms
In Missouri there are consumers that indicate they dislike the product which they are being offered Many of these conswners will go out of their way even travel to another state to fmd a product that is more user friendly A cursory survey of the license plates in the parking lot I)fthe Casino Queen in East 8t Louis Illinois adequately demonstrates this point
Many Missouri gaming customers complain that the loss limit is inconvenient intrusive and that it detracts from the entertainment experience they seek at Missouri riverboats To have to account for ones spending during what is supposed to be a leisure activity strikes many as a personal encroachment The fact that this requirement is imposed and enforced by the government further aggravates this perception
Many Missouri consumers react to this restriction by taking their leisure time and tax dollars across the border to JIlinois Iowa or Kansas where there are no limits Furthermore it is apparent that the loss limit severely restricts Missouri riverboat operators from drawing tourist customers from other states Consumers choice as to how to spend their discretionary leisure dollars is evident in the competitive gaming arena
The Missouri gaming law was adopted by the people for its potential to generate economic development its ability to raise needed revenue for education and because it is a leisure activity that many want to pursue The loss limit detracts from aU of these goals While Missouri is currently the beneficiary ofa significant amount of capital investment and new job creation the continuing negative impact of the loss limit renders our economic future in this area uncertain Because of the loss limit Missouri riverboat operators are less competitive the state is losing money to its neighboring states there is a reduction in the number of available jobs and the number of riverboats that can successfully operate in Missouri is restricted
Tax revenues from gaming have benefited education While tax revenues from gaming are still growing after only two years Missouri has seen
~ -
How does the Loss Linlit Work
Pursuant to sect 313805 RSMo the commission is required to regulate the wagering structure to include a maximum loss of five hundred dollars per individual player per gambling excursion In order to enforce this provision the commission requires the following procedure
I In order to board an exctrrsion gambling boat a customer most stand in line to obtain a ptrrchase authorization coupon (scrip) This scrip must be signed by the customer in the presence of a licensed riverboat employee
2 After the customer receives the scrip heshe must get in another line to board the riverboat The scrip also serves as the customers boarding pass
3 The scrip which is time and date stamped must be printed with boxes of denominations ofwhich the total ofall boxes shall not exceed $500 These boxes shall be canceled by pennanent black marker at the time the patron presents the scrip in the riverboat casino lfthe scrip is not signed at the time of presentment or the date and time are not valid the scrip shall be confiscated from the customer If the scrip is valid and there are sufficient available boxes the cashier shall cancel the appropriate number of boxes with a pennanent black marker and complete the transaction
4 In a situation where a customer wishes to buy chips at a table the procedtrre is the same except that the dealer stops the game to execute the transaction On many occasions the use of the scrip to convert cash to chips will slow up the game This is another example of customer dissatisfaction arismg out of the process
Transcript Missouri gaming commission meeting November 25 1996 pages 8 II and 1~17 (Bruce Turner Salomon Brothers) pages 44-46 (Joe Coccimiglio Prodential Securities) pages 57-58 (Tom Ryan Bankers Trust) pages 65-68 (Larry Klatzkin Donaldson Lufkin ampJenrette) pages 84-90 (Richard Byrne Merrill Lynch)
Missouri Garning Commission 1996 Annual Report - Page 4
Win Per Admission CoJql8ring Mssouri and IIhlls
those revenues fall short ofpredictions Analysts from Wall Street tell the commission that we are exporting our tax dollars to other states In a recent commission meeting regarding market size a well respected gaming analyst opined that while Missouri supplies 73 ofthe gaming market in the S1 Louis area it captures only 50 ofthe revenue Z
Finally the gaming experience ofconsumers who do visit Missouri gaming operators is less desirable than the experience offered by competitive states Missouri is offering a more cumbersome and less enjoyable product The commission believes that the gaming policy for Missouri should retain the Missouri dollars in Missouri and attract dollars from other states Our current policy has the exact opposite result
The Costs 0Competitive Ineriority
Limiting the ability ofMissouri operators to offer a competitive entertainment product has direct economic costs which are easily illustrated Missouri gaming riverboats are larger more luxurious and offer more non-gaming amenities than competitors in neighboring states Yet they fail to compete in economic terms even though the bulk ofthe popUlation seeking the entertainment product lives in Missouri
For example the Casino Queen in East St Louis Illinois and the Alton Belle in Alton Illinois combined have less capital investment than St Charles Riverfront Station which has consistently expanded and reinvested since it opened in May 1994 In addition these Illinois gaming facilities consist primarily of parking facilities and the gaming casino They offer no non-gaming amenities other than limited restaurant facilities
In spite of these negative competitive factors the two Illinois facilities regularly outperform SCRS in spending per customer Similarly Illinois riverboats in the St Louis area fare significantly better in gaming revenue per square foot gaming revenue per position and admissions per square foot One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
pages 104-106 (John Maxwell Standard amp Poors) and pages 115-118 (Steve Schneider Stife Nicoaus) See also Minutes ofMissouri gaming commission meeting May 24 1995
Missouri Gaming Commission minutes November 25 1996page 27 quoting Jason Ader Bear Stems gaming analyst Examples ofsome of the non-gaming amenities included in Missouri projects include themed restaurants movie theaters botels meeting space retail shopping child
care centers micro breweries an 18th century railroad car restored to its original luxury fountain displays and theaters for live entertainment
Missouri Gaming Commission 1996Annual Report - Page 5
2
The Problem is Clear - How does Missouri Address the Problem
Missouri statutes require the commission to report annually to the Governor and the General Assembly on the competitive state of the gaming industry in Missouri For two years the commission has advised the General Assembly that we believe that there could be a problem with the structure of the gaming industry but that the data is incomplete However we now fmd the data to be clear and compelling A problem exists in the Missouri gaming industry -- the gaming product is not competitive with our neighboring states This will create negative economic results and lower tax revenues
Due to navigational safety constraints most Missouri riverboats do not cruise It has been suggested by gaming analyst and by legislation filed in prior years that the elimination of the boarding time restrictions will help Missouri gaming operators economically and be more consumer friendly The commission believes that the current boarding time restrictions are detrimental to the consumer and make little sense since the riverboats are not leaving the dock They are an artificial barrier to entry and participation Yet the boarding times are essential to enforcing the loss limit A change in the statutes which
3(()
21)Q
i a
OIl
eliminates the boarding times but maintains the loss limit would make the enforcement of the loss limit impossible
Findings
Current Missouri statutes are not competitive with our adjoining states Consequently Missouri is at a competitive disadvantage Repealing the loss limit would make the Missouri operators more competitive Without this change the Missouri gaming industry will continue to be at a competitive disadvantage and over time will decline rather than prosper
Conclusioll
Section 313837 RSMo requires the commission to report annually to the general assembly on the effects ofthe loss limit on the competitiveness of the gaming industry in Missouri The findings above are intended to satisfy this statutory mandate The enactment of any changes in policy as a result of these findings are obviously the purview of the General Assembly and the Governor
Missouri Gaming Commission 1996Annual Report - Page 6
Effect of Tax Rate on Competitiveness
The Missouri tax rate currently mirrors that of its principle competitor the State of Illinois The MissourilIlIinois tax rate consists of a 20 base tax on adjusted gross receipts (AGR) In Missouri 10 of that tax (or 2 of AGR) is a local tax imposed by state statute The funds collected from this local tax are allocated to the home dock city or county fur services necessary for the safety of the public visiting the excursion gambling boat The remaining tax on AGR (18 of gross receipts) is placed in the Gaming Proceeds for Education Fund and may be spent only for public elementary secondary and higher education
Iowa has a graduated tax tbat caps out at 20 for adjusted gross receipts over $3 million Because the graduated rate reaches its cap at the relatively low ceiling 0pound$3 million Iowas effective tax rate is not significantly
The state of Kansas has recently allowed casinos operated by native American Indians These casinos are not taxed
For your future reference a table is contained in Appendix B setting forth the tax rate in each gaming jurisdiction and the regulatory restrictions that are imposed The chart below is a generalization of the tax rates in the various gaming jurisdictions Because of the subtleties of each states tax law it is difficult to precisely chart the rates For a defmitive explanation of the tax rates refer to the aforementioned chart in Appendix B
The Commission does not feel that the 20010 tax rate currently places our licensees at a competitive disadvantage The commission will continue to monitor the performance of all licensees and report developments as they occur
different from that of Missouri and Illinois
Licensees are also responsible for a $2 admission fee for each person who participates in a gaming excursion One dollar of this fee is remitted to the home dock city or county The remaining dollar is used to fund the regulatory activities of the Commission No general revenue is used for any activity of the Commission In addition to the $2 admission fee the gaming boat is billed monthly for the full cost of the enforcement agents assigned to the boat Either through fees or direct billing the gaming operators pay for the full cost of their own regulation
The State of Mississippi assesses a tax of 12 on AGR Unlike Illinois who is limited to licensing 10 gaming operations Mississippi has not limited the number of casinos licensed but has licensed all applicants that have been found suitable The Missouri law does not specifically limit the number of licenses that may be issued but places this responsibility in the hands of the Commission through a best interests of Missouri standard
Comparison of Gaming Tax Rates TaxonAGR
25
20 m ma )(
15 IImTaxRaeJ ~ 10
5
0 NV NJ LA
----------------------------------
MS IL IN IA MO CO so State
Missouri Gamilg Commission 1996Annual Report - Page 7
Missouri Gaming Commission Contributions to Education
Fiscal Year 1995
Gaming Proceeds for Education $ 5661628204
Bingo Tax Proceeds for Education $ 625370396
FY95 Tax Revenue from Gaming $6286998600
Fiscal Year 1996
Gaming Proceeds for Education $9973032067
Bingo Tax Proceeds for Education $ 468417852
FY 96 Tax Revenue from Gaming $10441449919
Total Tax Revenue from Gaming 516728448519
Does the GamblingMoneYiReallyGoo Fund Education
This may be the question inostfrequently asked ofpublic officials The simple answer is yes it does Pursuant to aconstitution~lamendntent passed by theGeneraIAssemblyasSJk 20 in 1992 andapproved bythe voters in a subsequent general electionmiddotall state tax money derived from the proceeds ofgamblirigisspent on education
The text ofthisconstitutional provision contained inArtiete 1lISection 39(d) reads as follows
All state revenues derived from the conduct ofaUgaming activities as are now or hereafter authorized by thiscomtitution orbyJaw unless otherwise provided bylaw on the ~ffectivedateofthissectionshallbemiddot appropriated beginoingJuly 1193solely for the pl1blic instittitions of elementary secondary and higheredueatioll and shaH~ot be included within the defmitionoftotal staterevenues in sectioid 7ofarticle X of this constitution
The tax revenues derivedfimnthe proceeds ofgambling foifiscalyeart998 are estimated to be $155 millionmiddot In ~d~itionto thegamblingm~neymiddot traditional stategeneralrevelluefundingfor publicschoo~ bas Uicreased every year since riverboatgillllblingwasenacted Thetotalstatebudget for educationwhichrepresents approximately 50of the average local school budget is $2965 billion Theg~~lIDgnlOney was designedtoslipplel1lent not replace the primatySufCeS ofpqb lie school fuDding[befunds derived from gambling have be~nusedfortheOiltstandingSchools TtilStFundthemiddotmiddot SchoolDistrict Bond Fund fotmainteniuiceandcapital exp~nclilures for public colleges and universities and to supplcentmenttheschool foundlltionmiddot formula
Missouri Gaming Commission 1996 Annual Report - Page 8
middot Where Does All the middot Gaming Tox Money Go
Orgallizationai Structure OFFICE OF THE EXECUTIVE DIRECTOR
Thomas J Irwin was named Executive Director by the Commission on October 21 1993 Mr Irwin came to the Commission after serving 3 years as Executive Assistant to St Louis County Executive Buzz Westfall Mr Irwin is a graduate ofHarvard University where he earned his masters degree from the Kennedy School ofGovernment He has served as the Chief Budget Officer for the Boston Police Department and was the Executive Assistant for Intergovernmental Affairs for St Louis mayor Vince Schoemehl from 1982 to
1988 Mr Irwin is a veteran of the United States Marine Corps having served
in Vietnam in 1968
i i Mr Irwin is responsible for the day-to-day operations of the
Commission He supervises all staff activities and reports to the Commission Among the staff positions reporting to the Director is Public Information
i K Officer Harold Bailey Mr Bailey is responsible for organizing and
distributing all public documents and reports
I In addition there are six primary functions of the Commission that
it have been divided into sections that report directly to Mr Irwin including
Administration Audit Bingo Corporate Securities Enforcement amp
t ~
Investigations and Legal amp Legislative Affairs
I ADMINISTRA110N
The administration section headed by Deputy Director Deborah A Ferguson provides a range of administrative financial and technical services to
help the Commission accomplish its goals The administrative services can be divided into the following functions accounts payable accounts receivable purchasing data processing budget facility leasing and human resources Accomplishments of the administration section would not have come to pass without the assistance ofChiefAccountant Denny Hodges Persomlel Officer Vicki Glenn Records Administrator Michael Shelhnan and Data Processing Manager John Bluma The administration staff benefited from the addition ofTen a Smith Diane Riddle and Mike Brizendine
The administration section continues to be a focal point of activity with the continued growth of the gaming industry l1te highlight of this past year was the relocation of the Jefferson City office Plaooing and design for the Jefferson City office began in 1995 and culminated with the move in September 1996 Highlights of the new building include a hearing room to conduct Commission meetings adequate file space to house the Commission
records that will be relocated from the St Louis office and the merging of the Bingo and Gaming staff into one facility to enhance coordination ofdaily activities
More specifically the duties of this section are as follows
~ Billing licensees for the processing and aoouallicenses issued to Level One and level Two Occupational employees that work for each riverboat To date there are approximately 9000 licensed employees
~ Billing licensed operators for the full cost of the enforcement agents assigned to each boat
~ Maintaining all Commission fmancial and personnel records which includes the monthly reconciliation of the Gaming Commission fund balance and processing aU payments made by the Commission
gt Preparation and implementation of the Commissions annual budget to ensure compliance with legislative intent
~ Handling all personnel matters and employee training and establishing and implementing written office policies for Commission staff
gt Preparation of fiscal notes to provide estimates to proposed legislation
Data Processiltg
The Data Processing section headed by John Blunm had a busy year in 1996 which included major systems developments as well as the daunting task of moving the Jefferson City office to a new location Some ofthe accomplishments of this important section include
~ Opening new commission offices for its agents at licensed premises
~ Moving the Jefferson City offices of the Riverboat Gaming and the Bingo workgroups to the new location This involved moving all computer workstations servers communications processors and printers to the new
Missouri Gaming Commission 1996 Annual Report - Page 10
building The two separate networks were consolidated into one large network that provides email between all members ofthe two sections for the fIrSt time and allows sharing of peripheral equipment such as laser printers
gt Final testing and implementation ofa billing system for enforcement billing to reimburse the state for expenses related to regulating the casino gaming industry
~ Automation ofannual MULES checks required of the 9000 plus gaming occupational license holders eliminating hundreds ofhours ofdata entry time
gt Upgrade of the physical inventory system to provide more complete reports and to track add-on costs to major inventory items
gt Design and development ofan occupational license history tracking system to provide a complete picture of license payments changes in license status duplicate badges issued and changes in employment status
gt Enhancing existing systems to meet new statutes and rules and regulations
AUDET
The audit section is responsible for the critical function ofensuring that the operators pay their taxes promptly and accurately This section headed by Jolm Davis former Internal Revenue Service Manager developed the Commissions tax remittal system that allows the Commission to capture tax remittance data on a daily basis The operators returns are audited by compliance audit siaffheaded up by senior accountant Kara Hardaway
The audit section also develops audit programs reviews and approves each boats system ofintemal controls conducts on-site performance audits reviews the quarterly CPA audits ofAdjusted Gross Receipts Tax and Admission Tax and reviews all internal audit reports prepared by the casinos internal audit staff
During 1996 the audit section revised Minimum Internal Control Standards that all operators must meet These standards were developed by the
audit staff after a lengthy review process that involved input from the IRS enforcement officers and industry experts
The audit section also implemented a system for tracking and depositing all non-tax revenue received from applicants such as application fees from applicants and reimbursements for Commission services
A summary ofsome ofthe audit sections programs and objectives is contained on page 22
BINGO
The Bingo Division is comprised ofthree separate sections which include the Administration Licensing Audit and Enforcement The Bingo Division Supervisor is Ron Pleus The Audit Section Supervisor is Randall Cahill and the Enforcement Section Supervisor is Sergeant Dwight Franklin The bingo statutes have been revised significantly in recent years requiring many administrative changes to occur within the Division Among the more daunting projects were the establishment ofa new licensing category for hall providers and the implementation ofa new supplier-based tax Specific duties within the three sections of the Bingo Division and the recent statntory changes are briefly outlined below
AdministrativeILicensiog Section - This section is responsible for the processing ofall correspondence and the licensing and maintenance ofover 1500 operator licensees which include all regular and special event bingo operators licenses and 200 hall providers annually This section deposits and records an tax and license receipts received on a daily basis This unit maintains a data base of over 31000 records ofindividuals that are involved in the management conduct andor operation ofbingo games and 3000 records of individuals involved as owners and officers of licensed Hall Providers Currently this staff consist ofthree employees Jane Bax Pam Murphy and Tina Freese In conjunction with the data processing staff the administrative section has developed an automated renewal application system which became fully operational January 1996 This system simplifies the renewal process for the licensee and eliminates wasted steps and duplicate information The system has proven to be a tremendous time saver for the not-for-profit volunteer organizations who are required to file renewals and also helps to reduce the staffmg cost and other administrative cost for the Division
Missouri Gaming Commissioll 1996 Allnual Report ~ Page 11
Audit Section - This section is responsible for the timely audit of all Bingo Product Manufacturers and Suppliers and assisting the Enforcement Section with oil-site inspections of bingo operators The audit staff has developed a comprehensive Manufacturer and Supplier audit procedure manual and has developed procedures for the inspection ofbingo operators The procedures for the inspection of bingo operators are used by both the Enforcement and Audit Staffs The audit section has audited all of the licensed Manufacturers and Suppliers during fiscal year 1996 These audits resulted in over $32000000 in unreported taxes and penalties The auditors also assisted enforcement with inspections and investigations of unlicensed suppliers and operators The section conducts on-site inspections of formerly licensed suppliers to determine ifthe products in inventory were being disposed of in accordance with the statutes The audit staff also assists the administrative staff in auditing the operators quarterly repom
Enforeement Section - This section is headed by Sgt Dwight Franklin a 17 year veteran ofthe Missouri Highway Patrol Sgt Franklin has six (6) officers assigned to the enforcement section Their duties include background investigations of all Manufacturers and Suppliers to include all the key personnel in those companies These investigations include criminal checks fmancial checks past employment history and all litigation involving the applicant In addition the enforcement section is responsible for investigating complaints on the licensed bingo organizations The complaints range from minor rule violations to thefts of large sums of money Complaints are received on a daily basis and are investigated on the basis of severity location and available manpower An additional duty of the Enforcement Section is to complete background investigations on all new potential employees of the Gaming Commission
CORPORATE SECURITIES AND FINANCE
The Commission has established a Section of Corporate Securities and Finance to address the challenge ofregulating the complex fmancial corporate structuring and contractual transactions involving publicly traded and privately held gaming companies This section is comprised of staff trained in legal accounting and business matters to perform examinations of these transactions
The suitability issues examined by the Corporate Securities and Finance Section include complex fmancial and legal suitability issues such as fmancial soundness corporate control legal compliance and procedural licensing issues
The sections examinations are coordinated closely with the Enforcement Division for background investigations and disciplinary matters
Typical transactions that are examined by the section include mergers and acquisitions public debt and equity issuances and private financings such as bank loans and credit facilities The goal of this new section is to provide the Commission with more thorough and sophisticated investigations and analysis of the suitability ofgaming companies and with a uniform system for providing this analysis on corporate securities and fmance issues Through this section the Commission hopes to identifY suitability problems ofapplicants and licensees earlier and more efficiently and to identifY plan for and possibly even avoid potential business closures of licensees due to fmandal matters
The Corporate Securities and Finance Section is headed by the Commissions General Counsel Greg Orner who reports directly to the Executive Director on corporate securities and finance matters The section also includes a Chief Financial Analyst position to be filled soon which will oversee the work ofthe fmancial staff examining the corporate secwities and fmance transactions
The Conunissions Financial Manager Pam Brown haS handled the fmandal analysis of the reported transactions up to now and will continue to perfonn many of the more complex transaction examinations and oversee the work of an accountant Pam Wheelis and a fmancial analyst (planned to be added next year) who are also assigned to the section
ENFORCEMENT
Enforcement for the Missouri Gaming Commission is provided by officers of the Missouri State Highway Patrol and agents of the Internal Revenue Service by way of Memorandums ofUnderstanding which set forth the responsibilities ofeach entity
The enforcement section is headed by Mel Fisher former Superintendent of the Highway Patrol The Gaming Division ofthe Highway Patrol is headed by Captain Dwight Hartung There are seventy-seven officers assigned to the Gaming Division and an additional six officers assigned to the Bingo Enforcement Unit
Some of the advantages ofusing Highway Patrol Officers as gaming agents include
JtfisSOUli Gaming Commission 1996 Annual Report - Page 12
the staff assigned are trained specialists in law enforcement and investigations thus saving the Commission the time effort and expense of recruitment and training
because the agents are licensed law enforcement officers they command immediate respect when interacting with licensees and customers aboard a riverboat as well as when they are in a foreign jurisdiction conducting an investigation
~ the Commission feels that it is important to rotate enforcement staff aboard the various boats this process is much easier with seasoned law enforcement officers who are used to being rotated between assignments as well as in and out of the gaming division
gt provides the ability to access sensitive law enforcement information from other jurisdictions
gt their experience in conducting investigations and handling emergency situations has proven invaluable
The Commissions background investigation units consist of three Highway Patrol Officers and one IRS agent The background investigations conducted by the Missouri Gaming Commission are thorough and take approximately four months to complete if no unusual complications or delays emerge The Commission not only investigates the finances and activities of the company and all its key people but traces the source ofall their funds to ensure that no criminal elements are funding the operation from behind the scene An outline that provides a sketch of a typical background investigation is contained on page 20
LEGAL amp LEGISLATIVE AFFAIRS
The legal amp legislative affairs section is responsible for all legal matters presented to the commission prior to litigation Any litigation involving the commission is handled by the Attorney Generals office In addition this section which is headed by Deputy Director Kevin Mullally develops and drafts legislation endorsed by the commission as well as all rules and regulations Moreover the legal section manages an administrative appeals docket where Mullally serves as Hearing Officer
Greg Orner serves as the commissions general coWlSel and works closely with the enforcement staff reviewing incident reports investigative issues and possible disciplinary actions In addition Mr Omer heads the Corporate Securities section
Some of tbe otber responsibilities of the legal section include
~ Drafting all resolutions for all commission actions and
gt preparing disciplinary complaints and denial orders for proposed action against licensees and
gt conducting quasi-legislative hearings on issues such as continuous docking and boat design and
gt providing legal research services and
gt organizing and maintaining records ofall official commission actions and commission policies and
gt handling inquiries from legislators constituents and other state regulatory agencies
The commissions legal staff is supported by paralegal Heather Grefrath and legal secretary Susan Sundermeyer This support staff is critical to daily operations ofthe legal section and is particularly valuable in the sections role in preparing and managing the rules and regulations all documents necessary for commission meetings and all documents declaring commission policy
In 1997 the legal section will be augmented with the addition ofstaff attorney Robert Little
PENDING LITIGATION
The Missouri Gaming commission denied one occupational license in 1994 thirteen occupational licenses in 1995 and thirty-five occupational licenses in 1996 Each aplicant is presumed WlSuitable and has the burden of proof to prove his or her suitability to the Conunssion An individual may request a hearing to attempt to prove suitability to the Commission by serving
Missouri Gaming Commission 1996Annual Reporl- Page 13
such a request on the commissions Executive Director The following is a list of pending litigation
Petitioner Venue
Bingo Systems amp Supply AHC Cape Girardeau Elks Lodge 639 AHC Cape Girardeau VFW Post 3838 AHC Edwin Pete Rhodes AHC Ideal Bingo Supplies Inc AHC Mary Cracchiolo AHC Maureen L Scott AHC Meramec-Amold Eagles Auxiliary AHC Myron B Carter Sr AHC Pan-Education Institute AHC Raymond J Drury AHC Raytown Women of Today AHC Sandra Termini AHC Stanley L Turner AHC Missouri Gaming Co ~Disc Action MGC Harrahs -Disciplinary Action MGC Boyd Kansas City Inc -Disc Action MGC Jeffery Koester -Denied License MGC Gary Franklin -Denied License MGC Mark Zwolle -Disciplinary Action MGC Anthony Civella -Exclusion MGC Peter Simone -Exclusion MGC Yolanda Nettles MGC Tracy Anderson MGC Carrie Gentry MGC Jimmie B Carsey MGC Cape Girardeau Elks amp VFW Circuit Court ofCape Girardeau County MGC v Veterans Commission
st Louis Public Schools Missouri Supreme Court W Todd Akin v MGC Missouri Supreme Court William D Cmmnisano Jr Missouri Court ofAppeals-Western District Pen-Yan Investment Inc Missouri Court ofAppeals-Western District
SUMMARY OF PENDING LITIGATION
There are fourteen bingo cases pending in the Administrative Hearing Commission
There are three disciplinary cases at the Commission level against gaming licensees pending the outcome ofPen-Yon Investment Inc v Boyd Kansas City Inc and MGC
Pen-Yon Investment Inc v Boyd Kansas City Inc MGC is pending in the Missouri Court ofAppeals Western District regarding disciplinary action taken against Boyd for associating in business affairs with a person who has a felony police record The Commission imposed a fine against Boyd and prohibited Boyd from collecting or distributing any funds from the machines under its service agreement with Pen-Yan
MGC v Missouri Veterans Commission St Louis Public Schools is pending in the Missouri Supreme Court regarding funds received from fmes imposed by the Commission
In W Todd Akin et 01 v MGC the Circuit Court ofCole County ruled in favor of the commission on summary judgment The suit challenges the Commissions authority to grant or deny Harrahs Maryland Heights Corp and Players Maryland Heights LP a license for a continuously docked excursion gambling boat within a man-made basin filled by water from the Mississippi River The petitioners have appealed and the matter is now before the Missouri Supreme Court
Cape Girardeau Elks Lodge et aI v MGC is pending in the Circuit Court of Cape Girardeau County regarding the Commissions decision to suspend the Cape Girardeau Elks Lodge bingo license
In the Matler oWilliam D Cammisano Jr there is an appeal pending in the Missouri Court ofAppeals Western District regarding the Commissions decision to place Mr Cammisano on its List of Excluded Persons
MISSOURI GAMING COMMISSIONS EXCLUSION LIST
The Missouri Gaming Commissionplaced two individuals in 1994 two individuals in 1995 and two individuals in 1996 on the commissions Exclusion List Placement of these individuals on the Exclusion List has been based on prior convictions
As a result of placement on the Exclusion List each individual shall not be permitted eoby into any portion of a riverboat gaming operation within the state ofMissouri and shall be ejected ifdiscovered on such premises Furthermore Excluded Persons shall be prohibited from contact of any kind with Missouri riverboat gaming operations Persons placed on the Listmay file a written petition with the Commission to request a hearing to have their name
JlrJissOIlri Gaming Commission 1996 Annual Report - Page 14
removed from the Exclusion List Currentlyone individual has appealed to the Western District of Missouri and two otbers are pending hearings by the Missouri Gaming Commission
MISSOURI GAMING COMMISSIONS DISCIPLINARY ACTIONS AGAINSTOCCUPATIONAL LICENSEES
The Missouri Gaming Commission has taken disciplinary action against twenty-eight occupational licensees as of September 30 1996 Preliminary
Orders for Disciplinary Action set forth statements of fact that support the proposed disciplinary action and the regulatory and statutory sections involved Individuals may request a hearing by serving such a request on the Commissions Executive Director Currently four individuals have sought hearings before the Commission one ofwhich is stm pending
Occupational License Denials 1994-1996
40
l 30
lt0 c Q)
0 lt5 20 i-Q) 0 E ~ 10
o Year Licenses 1994 1995 1996 IiiI Licenses Denials 1 13 35
Voluntary Exclusions On December 30 1996 after six months of research and consultation the
commission established a unique program to combat problem gambling The List of Disassociated Persons is the result of many months ofconsultation with treatment professionals that help problem gamblers The program allows problem gamblers to exclude themselves from Missouri riverboat casinos under the threat ofarrest for trespassing
In exchange for agreeing not to patronize Missouri riverboat casinos the problem gambler is removed from all casino mailing lists and direct marketing promotions In addition the operators are required to deny persons on the List check cashing privileges and must take away their VIP or players club card
Treatment professionals have advised the commission that the only way for a problem gambler to get help is to admit that heshe has a problem and to accept personal responsibility for that problem by seeking treatment
The Disassociated Persons program is a valuable tool in addressing problem gambling because it requires the individual to admit to having a gambling problem to agree to seek treatment and stay away from gambling casinos Furthermore it includes severe consequences if the problem gambler succumbs to the temptation to gamble Moreover it offers some protection to the problem gambler from the marketing promotions that encourage people to visit the casino properties
The program operates in the following manner
~ The problem gambler must obtain an application for placement on the List ofDisassociated Persons from the commission
~ the application contains various information about the individual an admission that the person is a problem gambler and agrees to stay off Missouri riverboats and seek treatment an authorization to release this information to riverboat operators as well as a Waiver releasing the commission and the licensee from any liability associated with enforcing the rules of the program
~ the application must be personally presented to a commission agent at which time the information is verified and the rules of the program are explained
~ the application is a closed record and its contents may only be disclosed to necessary commission and riverboat personnel
~ the commission considers all applications in closed session
~ once a person is placed on the List heshe cannot petition for removal After consulting with treatment professionals the commission concluded that problem gambling requires lifetime treatment and therefore there is no procedure for removal from the List
Missouri is the frrst jurisdiction in the world to propose a program such as this We will continue to monitor and refme the program and look forward to reporting to you on its impact in next years annual report
ft-Iissouri Gaming CommissiOil 1996 Annual Report - Page 16
Brief Timeline of Riverboat Gaming in Missouri ~ May 13 1991 - General Assembly passes House Bill 149 which authorized
referendum to be submitted to the voters in the November 1992 election to determine whether the State Tourism Commission shall have the power to issue riverboat gambling licenses
gt November 31992 - Missouri voters pass referendum allowing riverboat gaming with a majority ofnearly 63
gt January 1993 - Governor Carnahan announces intentions to push legislation creating an independent Gaming Commission to oversee riverboat gambling
April 29 1993 -- SBs 10 amp 11 creating the Missouri Gaming Commission are signed into law by Governor Carnahan and five Commissioners are appointed Robert Wolfson Chairman Robert Clayton William Quinn Dr Jenice Stewart and Avis Tucker
gt April 30 1993 -- Troy Harris et al v The Missouri Gaming Commission amended petition is filed The petition challenges the constitutionality of Senate Bills 10 amp II
gt- May 17 1993 -- The Missouri Gaming Commission holds its first meeting
~ September 1 1993 -- Proposed Rules and EmergencY Rules are adopted
gt September 20 1993 - 19 riverboat gaming license applications are filed with the commission
gt September 20 1993 - Clarence E Mel Fisher hired as Deputy Director for Enforcement
gt September 24 1993 - Commission contracts with the Internal Revenue Service to perform fmancial investigations for the commission Four IRS agents are assigned to the commission
~ September 28 1993 - Commissions enters into and inter-agency agreement with the Missouri State Highway Patrol to provide enforcement services for the commission
~ October I 1993 - Debbie Ferguson joins the commission as Deputy Director for Administration
November 3 1993 - Commission hires Tom Irwin as Executive Director and Kevin Mullally as Deputy Director for Legal amp Legislative Affairs
November 30 1993 -- Commission announces that it will begin background investigations on the following companies President Riverboat Casino-Missouri St Charles Riverfront Station Inc S1 Joseph Riverboat Partners The Missouri Gaming Company GDC (Supplier) IGT (Supplier) Casino Tokens (Supplier) Paul-Son Dice amp Card Company (Supplier)
gt December 22 1993 - Governor Carnahan signs Executive Order 93-50 designating the enforcement section ofthe Missouri Gaming Commission as a criminal justice agency
1994
gt January 25 1994 -- Missouri Supreme Court in Troy Harris v Missouri Gaming Commission strikes down games of chance including slot machines The court ruled that the Commission did have the authority to issue licenses to riverboat where games ofskill are played Specifically mentioned as games ofskill are poker and blackjack The Court remanded six games to lower court for determination as to whether they are games of skill or chance baccarat craps roulette wheel klondike table faro layout and video games ofchance
~ February 1 1994 -- Rules and Regnlations become effective
February 7 1994 -- Legislature passes resolution to place constitutional amendment on the ballot which would allow the legislature to approve games of chance (slot machines) on riverboats and floating facilities on the Missouri and Mississippi Rivers
gt- April 5 1994 -- Voters defeat constitutional amendment allowing games of chance (slot machines) by an unofficial count of 1263 votes
~ April 29 1994 - Finding of Preliminary Suitability issued to President Riverboat Casino S1 Charles Riverfront Station St Joseph Riverboat Partners and The Missouri Gaming Company
Missouri Gaming Commission 1996 AnnualReport - Page 17
Brief Timeline of Riverboat Gaming in Missouri ~ May 20 1994 -- Governor signs into law SB 740 which defmes games of
chance and enacts more stringent ethics provisions The bill also allows the commission to license a barge in an artificial basin as an excursion gambling boat if it can be demonstrated that safely concerns prevent an operator from cruising from that location
~ May 27 1994 - Commission authorizes as games of skin the following Blackjack Caribbean Stud Poker Poker Double Down Stud Poker Pia Gow Poker Poker Texas Hold Em the video representations ofthese games and Craps
gt May 27 1994 -- Commission authorizes President Riverboat Casino-Missouri to operate the Admiral as a continuously docked excursion gambling boat because cruising would cause danger to the boats passengers
gt May 27 1994 -- Gaming Commission issues first two excursion gambling boat licenses to President Riverboat Casino in st Louis and St Charles Riverfront Station in st Charles
gt May 27 1994 -- Initiative petition tbat would allow voters to approve games ofchance is submitted to the Secretary of State for approval of the form ofthe petition
~ June 6 1994 -- Secretary ofState notifies referendum petitioners that the Attorney General has approved the form of their petition The Secretary of State prepared the following petition title that was approved by the Attorney General
Shall the General Assembly be authorized to permit only upon the Mississippi River and the Missouri River lotteries gift enterprises and games ofchance to be conducted on excursion gambling boats and floating facilities
gt June 9 1994 -- Commission prioritizes Aztar Missouri Corporation Boyd Kansas City Inc and Harrahs North Kansas City as companies to be investigated for licensure pursuant to 11 CSR 45-4060
gt June 22 1994 -- Gaming Commission issues licenses to St Joseph Riverboat Partners in St Joseph and The Missouri Gaming Company in Riverside
~ September 20 1994 -- Commission issues a fmding ofpreliminary suitability to Harrahs North Kansas City Corporation
gt September 20 1994 -- Commission authorizes Harrahs North Kansas City Corporation and st Charles Riverfront Stationl to operate excursion gamblillg boats as continuously docked vessels In both cases the commission found that operating a cruising vessel from the proposed site would cause danger to the boats passengers and the project will generate permanent job creation and land-based development
gt September 22 1994 -- Harrahs North Kansas City Corporation is issued an excursion gambling boat license
gt September 28 1994 - Public hearing regarding Capitol Queen and Casino Jncs application for an excursion gambling boat license results in the commission denying CQCs license and prohibiting them from reapplying for two years
gt October 7 1994 - Commission places William D Cammisano Jr and John Termini on its list of excluded persons
gt November 8 1994 -- Voters approve games ofchance
~ December 9 1994 - Games ofchance are allowed on riverboats
gt December 27 1994 - St Charles Riverfront Station is issued a license to operate the St Charles II as an excursion gambling boat This marks the fIrSt time the commission has licensed a second excursion gambling boat for a single development
The approval was for St Charles Riverfront Stations second boat The flTSt boat continued to cruise until April 16 1996
Missouri Gaming Commission 1996 Annual Report - Page 18
Brief Timeline of Riverboat Gaming in Missouri 1995
)gt- February 22 1995 -- Commission announces it will begin background investigation on Hilton Kansas City Corporation for an excursion gambling boat license
~ March 30 1995 - State Auditor releases final audit report of the Missouri Gaming Commission No major deficiencies are noted
~ April 20 1995 - Commission repays $3 million start-up loan to state general revenue fund
)gt- April 25 1995 - Commission approves continuous docking petitions for Boyd Kansas City Inc and Hilton Kansas City Corporation
~ April 25 1995 -- The commission issues a finding ofpreliminary suitability to Aztar Missouri Gaming Corporation
~ April 26 1995 -- The commission issues an excursion gambling boat license to Aztar Missouri Gaming Corporation in Caruthersville Missouri
)gt- May 24 1995 - The commission announces it will begin background investigations on the following companies Harrahs Maryland Heights Corporation Kansas City Station Inc Players Maryland Heights Inc
gt August 28 1995 - Pursuant to House Bill 574 the duties of the Missouri Horse Racing Commission are transferred to the Gaming Commission
~ September 12 1995 - The commission issues a fmding of preliminary suitability to Boyd Kansas City Inc
September 13 1995 - The commission grants the petition ofHarrahs Maryland Heights Corporation and Players Maryland Heights Inc to operate continuously docked excursion gambling boats at their joint venture in Maryland Heights
)gt- September 13 1995 - The commission issues an excursion gambling boat license to Boyd Kansas City Inc
)gtshy November 16 1995 shy The commission fines the following companies for associating with either socially or in business affairs persons with felony police records or persons with a notorious or unsavory reputation Boyd Kansas City Inc Harrahs North Kansas City Corporation The Missouri Gaming Company
1996
)gtshy February 15 1996 - The commission grants continuous docking rights to Aztar Missouri Gaming Corporation for a second boat in Caruthersville Harrahs North Kansas City for a second boat and Kansas City Station Corporation for two boats in Kansas City
~ April 16 1996 - The commission grants continuous docking rights to Argosy in Riverside Missouri S1 Joseph Riverboat Partners and 81 Charles Riverfront Station
~ May 15 1996 - The commission issues a license to Harrahs North Kansas City for the Lucky Star This is the second boat at the Harrahs North Kansas City mcility Included in the project is a 200-room hotel expanded parking and meeting space
~ June 19 1996 -- The commission places William Canunisano Jr on Exclusion List
~ June 27 1996 - The commission places Peter Simone and Anthony T Civella on Exclusion List
August 28 1996 - The commission takes disciplinary action against Boyd Kansas City Inc for periodic failure to take and report turnstile readings
~ October II 1996 - The commission issues a finding of prel iminary suitability to Hilton Kansas City Corporation and Flamingo Hilton Riverboat Casino LoP
October 18 1996 - TIle commission issues a Class B riverboat gambling license 10 HUlon KlIlIStIS City Corporation and a CltlSs A riverboat gambling license 10 Flamingo Hillon Riverboat CtlSino LP
Missouri Gaming Commission 1996Annual Report - Page 19
Outline of a Background Investigation
Review Application fin Completeneiis
~ Establish number ofkey people
~ Check disclosure forms for completeness
gt Check tax release forms
City Selection Process
~ Contact city to determine how the gaming operator was selected
gt Interview Mayor and City Council members
~ Ifa steering committee was used interview members of that committee
Determine ifany city officials own stock in the selected gaming company
~ Obtain minutes ofcouncil meetings that pertain to riverboat issues (a)selection (b) resolution and (c) ordinance
gt Contact city attorney who handled negotiations with gaming company and obtain correspondence between city and gaming company
~ Contact City Economic Development Director (if applicable)
Docksite
gt- Land selected for gaming operation
J Who was it purchased from (how long have they owned the property) J Price (copy ofcontract)J Copy of plat map and legal description J Determine ifany ofcity officials or selection committee members have
ownership interest in docksite
gt Corps ofEngineers Permit
J Status
J Any concerns by Corps J Wetlands involved
~ Contact DNR for any known concerns in area
gt Check with city for any known dwnpsites with possible hazardous material
gt Developmental agreement between city and gaming operator (obtain copy from city)
gt Detennine if development is feasible
J Is support facility land based or floating J Projected nwnber ofjobs economic aid to area J Traffic flow to area - what improvements are needed - who will pay
for improvements
Riverboat
gt Locate boat and obtain all infonnation about boat (cruise schedule liability carrier)
gt Establish design ofriverboat
gt Determine emergency medical plan for boat
gt Determine ifCoast Guard and other safety requirements have been met
Gaming Operator (Public Corporation Partnership Private Company)
gt Establish contact person with operator
J Determine attorney of record for gaming company J Any missing items from application advise contact person
gt Establish home office (Financial Headquarters)
J Determine a good date and location where all key people can be contacted for a personal interview
J Where can financial record be located
Missouri Gaming Commission 1996Annual Report - Page 20
~
Outline of a Background Investigation
J Breakdown ofmanagement (corporate Board ofDirectors major stockholders)
J Establish flow chart of key people and companies owned by gaming operator
~ Investigation ofKey People will include but not be limited to the following
J Check previous employment work records J Check state local and federal intelligence files J Check for other gaming licenses ifapplicable (check with appropriate
regulators)J Check state federal and local courts for any civil litigation J Check for any arrest record J Check personal and business credit J Check state and local tax status IRS will handle federal taxes
gt Other locations ofgaming operations (currently operating and pending locations)
J Contact gaming regulators for respective locations J Travel to sites to view operations
Establish a file for all key people investigated with summaries establish a file for financial records with summary offinancial viability ofcompany and ability to complete obligations to the city and State ofMissouri Establish a file for other locations of licensure along with summary
Associated Investigations
gt All allegations of Any nature must be investigated and a file established with a written summary
~ Associated investigations must be done in a complete and thorough manner and all reports written accurately
gt Upon completion ofall investigations complete reports and summaries a separate press releasable summary must be written This summary must be approved by Gaming Commission legal staff
Missouri Gaming Commission 1996 Annual Report - Page 21
------------
--------
-----
------
---
---------
----------
Missouri Gaming Commission Compliance Audit Objectives for Licensees
ObjectiveAudit Area ~~~~~~~~~
To ensure accuracy of ticket and turnstile counts reported to MGC including compsIVlPs stayovers and promotions
Table Games
Ticketffurnstile
To ensure accuracy of AGR for table games reported to MGC
Electronic Games To ensure accuracy of AGR for electronic games reported to MGC
Cage Accowltability To ensure accuracy ofcage accountability forms and compliance with internal controls and tax reporting regulations
Observations Cage Main Bank Pit Area Slot Area Turnstile Ticketing
PurchaselRedemptions
$500 Loss Limit
Stayover Procedures
To determine that cashiers are complying with internal controls for chips tokens gaming scrip and cash
To determine compliance with MO statutes and internal controls
To determine compliance with MGC regulations and internal controls
To ensure that manual jackpot payouts are properly handled and the required tax fomIS are completed Manual Jackpot Payouts
To ensure that hopper fills are properly handled and comply with internal controls Hopper Fills
To ensure that table fills are properly handled and comply with internal cootrols Table Fills
To ensure that table credits are properly handled and comply with internal controls Table Credits
To ensure that tracking procedures comply with internal controls and the currency transactions are properly completed Patron TrackingCurrency Transaction Reporting
Imprest Bank Balancing To ensure that proper balancing and accountability is performed during a shift change
Coin Vault To ensure proper maintenance of coin chip and token inventory
Satellite CageSSlot Booths To ensure compliance with internal controls and consistency with main cage procedures
TipsGratuities To ensure compliance with MGC regulations and internal controls
Cage AccessSecurity To ensure compliance with internal controls
Turnstile To ensure accuracy of turnstile count for admissions tax calculation
Ticketing To ensure comp Hance with internal controls and proper handling of stubs voids and issuance
MiscellaneousOther
Surveillance Tapes To review activity for hard soft and tip counts and drops to verify compliance with internal controls
Workpaper Preparation and To establish standardized procedures for MGC audit workpapers and audit reports Audit Reports
-
Missouri Gaming Commission 1996 AnnualReport - Page 22
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Audit Area
Monthly Financial Statement Review
Engagement Letters
Objective --shy
To perform a preliminary review ofmonthly financial statement information for proper completion of fmandal statement templates verification ofadjusted gross receipts to MGC reports and to detect any unusual items which justifY further review when conducting on-site audit
To give advance notification to each boat of the date and scope ofaudit being performed
Financial Statement Verification To determine consistency ofmonthly financial statement information submitted to MGC with boats general ledger system
Balance Sheet Accounts
CashCash Reserve Balance
Cash Receipts
Cash Disbursements
shy -- shy
To determine the existence consistency and fair presentation of the cash balance on the monthly fmancial statements
To determine the consistency and filir presentation of the cash balance on the monthly financial statements and the source of large cash receipts other than gaming revenue
___I
To determine the consistency and fair presentation of the cash balance on the monthly fmancial statements and to trace the outflow of large cash disbursements
i
I
--
AccountslN Notes Receivable
Accrued Admission and Gaming Tax Liability
Chip and Token Liability
Progressive Jackpot Liability
To determine the consistency and fair presentation of the accounts receivable andor notes receivable balance in the monthly fmancial statements
To determine the consistency and fair presentation of the accrued admissiongaming tax liability balance in the monthly financial statements
To determine the consistency and fair presentation of the chip and token liability balance in the monthly financial statements
To determine the consistency and fair presentation of the progressive jackpot liability balance in the monthly fmancial statements
---shy
Tips and Gratuities (Accrued Liability)
Customer Deposit Liability
Accounts Payable
Income Statement Accounts
Revenne - Table Games
To determine the consistency and fair presentation of the accrued tips and gratuities liability in the monthly fmancial statements
-lt ---- shy
To determine the consistency and fair presentation of the customer deposit liabilities in the monthly fiscal statements To determine the consistency and fair presentation ofaccounts payable balance in the monthly fmancial statements
--shy
To determine the consistency and fair presentation of table games revenue as reported to MGC daily and in the monthly fmandal statements
Revenue - Electronic Games To determine the consistency and fair presentation of electronic games revenue as reported to MGC daily and in the monthly financial statements
Missouri Gaming Commission 1996 Annual Report - Page 23
------------
---------
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Revenue - Admissions To detennine the consistency and fair presentation ofadmissions revenue as reported to MGC daily and in the monthly fmancial statements
Promotional Expense To determine that comps are properly recorded as expenses and not deducted from revenue in accordance with GAAP
Pre-Opening Costs To determine whether certain pre-opening and licensing costs are properly expensed or amortized over future periods in accordance with GAAP
Workpaper Preparation and Audit Reports To establish standardized procedures for MGC audit workpapers and audit reports
AissOllri Gamillg Commission 1996 Anllual Report - Page 24
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AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
c
Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
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I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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I IAztar Missouri Corporation
r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
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~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
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Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
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$lot Machines 349
The Commissioners
Robert L Wolfson Chairman
Robert L Wolfson is Chainnan of the Board for Wolfson Capital Venture serves on the Mark Twain Chainnans Board is a member of the Board of Trustees for Brandeis University and is on the Board of Trustees ofJewish Hospital in St Louis He is the co-founder of the st Louis Blues of the National Hockey League and served as Vice-President and Treasurer of the St Louis
Blues Mr Wolfson has a long history as a successful businessman having owned and managed many successful retail and commercial ventures Additionally Mr Wolfson is the recipient ofmany awards from civic organizations and is well known for his philanthropic endeavors
Robert M Clayton II Vice-Chairman
Mr Clayton is a senior partner ofClayton amp Clayton law firm He has served on the Board of Directors of Roosevelt Bank and has also served as a member ofthe Compensation and Stock Option Committee He serves on the Mark Twain Home Board Mr Clayton is former President of the Missouri Bar and is the Treasurer of the Missouri Bar Plan Mutual Insurance Company a member of its Executive Committee and Chairman ofthe Bars
Underwriting and Finance Committee Mr Clayton also serves as a member and Director of the Bar Plan Foundation
William J Quinn
Mr Quinn is a retired 23 year veteran ofthe FBI where he served as supervisor ofthe agencys Organized Crime and Racketeering unit in Kansas City He also served as National Chairman ofthe Former Agents ofthe FBI Foundation He is a veteran ofthe United States Navy and holds a BBA degree from Northeastern University in Boston Massachusetts In addition Mr
Quinn has owned and operated a private security company
- ------~------------------------~
Missouri Gaming Commission 1996Annual Report - Page 1
Dr Jenice Prather Secretary
Dr Jenice J Prather is a CPA and accounting professor at the University of Missouri-Columbia She has published over twenty articles in national and international academic accounting journals She has received numerous honors and awards for her research and
teaching including a two year Research Associateship from Washington University and a KPMG Peat Marwick International Accounting Research Fellowship She holds leadership positions in the American Accounting Association the National Association of Black Accountants the American Institute ofCPAs the Institute of Management Accountants and the Missouri Society ofCPAs She was on the Price Waterhouse National Advisory Board and currently is on the MIZZOU Credit Union and the Board ofTrustees ofSecond Missionary Baptist Church
Avis Tucker
Avis Tucker is the President of Star-Journal Publishing Co and serves as Editor and Publisher of The Daily StarJournal in Warrensburg Missouri She also serves as President ofJohnson County Broadcasters Inc Additionally Mrs Tucker serves on the Missouri Commission on the
Organization ofthe Judicial Deparbnent the Whiteman Air Force Base Community Council the Warrensburg Chamber of Commerce and the Childrens Mercy Hospital Public Affairs Committee Mrs Tucker has received number ofawards for her professional accomplishments and her public service work most recently the Chancellors Award from UMKC
Introductioll The Missouri Gaming Commission was established in 1993 to regulate
riverboat gambling in Missouri In addition the Commission assumed the responsibility for regulating charitable bingo games on July I 1994
The five member Commission is charged with maintaining public confidence in legaliTed gambling and ensuring that no criminal elements are allowed to infiltrate licensed gaming operations It is important that the Commission do its job well so that public confidence in the gaming industry is established thereby allowing the industry to reach its goals ofeconomic development job creation and the promotion of Missouri as a major tourist attraction
As a state regulatory agency the Commission and its staffhold themselves to the highest ethical and professional standards and strive to conduct all business in a manner which maintains the public trust Pursuant to statute a strict Code ofEthics has been adopted prohibiting conflicts of interest and ex parte commtmications
The key regulatory responsibilities ofthe Commission are afollows
gt to conduct thorough background investigations on all key persons involved in the gaming operation including substantial owners management personnel key operational employees and suppliers
gt- to thoroughly investigate the finances ofapplicants and their key persons to determine if they have the fmancial resources and responsibility to meet their proposed obligations
gt to screen all occupational licensees including dealers slot attendants food and beverage servers security and surveillance personnel and all other employees who have access to the gaming area and investigate the background ofeach to ensure that the personnel operating the casino are of sufficient character to maintain the integrity of Missouri gaming
gt to photograph and fmgerprint each employee so as to maintain a complete and accurate database of boat personnel
gt to assign appropriate staff to each gaming operation to be present at all times when gaming is conducted Enforcement agents are charged with
ensuring tbat gaming is conducted in accordance with the Missouri gaming statute the rules and regulations of the commission and the operators own internal controls
gt to ensure that the safety of the passengers is guarded to conduct investigations of suspected wrongdoing and to receive complaints from customers
gt to review and audit the fmances of the gaming operation through the combined use ofCommission staff and independent public accounting firms that are retained by the licensee and approved by the Commission and
gt to monitor the financial integrity of gaming operators to ensure that Missouris financial interests are protected
Pursuant to statute the Commission has entered in to a Memorandum of Understanding with the Missouri State Highway Patrol to perfonn background investigations and provide enforcement personnel on the boats Under the tenus of this agreement the Patrol also provides enforcement personnel for the Division ofBingo
lbe Commission also has a Memorandum ofUnderstanding with the IRS to assist with the financial portion of the background investigation and to provide ongoing expertise with regard to the internal control procedures and the reporting and payment of taxes
At the end of 1996 ten riverboat casinos were operational at eight different developments in Missouri Sunnnaries of the operators fmancial reports that are required by the Commission are contained in Appendix C Harrahs Maryland Heights Inc and Players Maryland Heights Corporation are in the process of being investigated
Ibe Commission is also responsible for approximately 870 bingo licensees and bas successfully implemented the new requirement oflicensing hall providers In addition the commission has successfully executed the difficult task of implementing the new supplier-based bingo tax that took effect January 11995
MisWllri Gaming Commission 1996 Annual Report - Page 2
The Effect of the $500 Loss Limit on Competitiveness
For the past two years the commission bas reported that the $500 loss limit imposed by statute places Missouri riverboat gaming operations at a competitive disadvantage as opposed to similar operations in the adjoining states of Illinois and Iowa We opined at that time that the $500 loss limit contributes to a large decrease in state revenne
The commissions comments in prior years have been tempered by our knowledge that the riverboat gaming industry in Missouri was in its formative years and that little data was available to study After more than two years of Missouri operating history there is now adequate data from Missouri and its adjoining competitive states to expand our comments on the loss limits and state our findings with more precision
Negative Impact on Customer Satisfaction
The most frequent complaints to Commission staff and regulatory personnel in their contacts with the public are those dealing with the loss limit and the boarding restrictions The restriction on boarding is a method to enforce the loss limit
In addition the loss limit continues to be difficult to enforce Although the commission uses its best efforts to enforce the limit the customers desire to circumvent it consumes a tremendous amount of manpower Enforcement agents spend a significant amount of time dealing with violations and customer disputes Gaming boat sergeants regularly testifY that their most difficult problem was enforcing the $500 loss limit
The Loss Limit and the Problem Gambler
The loss limit has been described as a measure intended to deal with problem gaming However the success of the loss limit in addressing the problem ofcompulsive gambling remains undetermined
The primary argument for the $500 loss limit is that it helps deter the problem gambler Ifthe loss limit controlled the behavior of the problem gambler it would be a laudable requirement
Mental health professionals have told the commission that left untreated the problem gambler will find a way to gamble Whether it is by reboarding another cruise using some other persons loss limit card by crossing the river into another jurisdiction where there is no loss limit or gambling illegally the problem gambler will find a way to exercise the compulsion
The commission in relying on the treatment professionals has focused its battle against
problem gambling on education MissQun hasbeen()ne ofprevention and treatment Missouri has been one of the the most aggressive states most aggressive states in in c9mbatjpgproblem combating problem gambling Missouri is the first jurisdiction gambling Missouri is the to create a system whereby firstjlIrisdictiontomiddot create a problem gamblers can exclude systemwllerebyproblem themselves from casinos under threat ofarrest for trespassing gamblers can exclude In addition the commission has fhemselvesfrom casinos required operators to adopt
l)I1der threat of liITest forprograms to educate problem gamblers and has arranged trespassing~ funding for the recruitment and training oftreatment counselors who must be certified by the Missouri department ofmental health
The Loss Limit and the Typical Consumer
While treatment professionals tell the commission that loss limits do not inhibit the compulsive gambler Wall Street analysts who study the industry report that the loss limit has a negative impact on the normal consumer looking
Missouri Gaming Commission 1996 Annual Report - Page 3
for an entertainment experience Gaming is an entertainment industry In the entertainment industry the consumers demand a product that they can enjoy during their leisure time on their own terms
In Missouri there are consumers that indicate they dislike the product which they are being offered Many of these conswners will go out of their way even travel to another state to fmd a product that is more user friendly A cursory survey of the license plates in the parking lot I)fthe Casino Queen in East 8t Louis Illinois adequately demonstrates this point
Many Missouri gaming customers complain that the loss limit is inconvenient intrusive and that it detracts from the entertainment experience they seek at Missouri riverboats To have to account for ones spending during what is supposed to be a leisure activity strikes many as a personal encroachment The fact that this requirement is imposed and enforced by the government further aggravates this perception
Many Missouri consumers react to this restriction by taking their leisure time and tax dollars across the border to JIlinois Iowa or Kansas where there are no limits Furthermore it is apparent that the loss limit severely restricts Missouri riverboat operators from drawing tourist customers from other states Consumers choice as to how to spend their discretionary leisure dollars is evident in the competitive gaming arena
The Missouri gaming law was adopted by the people for its potential to generate economic development its ability to raise needed revenue for education and because it is a leisure activity that many want to pursue The loss limit detracts from aU of these goals While Missouri is currently the beneficiary ofa significant amount of capital investment and new job creation the continuing negative impact of the loss limit renders our economic future in this area uncertain Because of the loss limit Missouri riverboat operators are less competitive the state is losing money to its neighboring states there is a reduction in the number of available jobs and the number of riverboats that can successfully operate in Missouri is restricted
Tax revenues from gaming have benefited education While tax revenues from gaming are still growing after only two years Missouri has seen
~ -
How does the Loss Linlit Work
Pursuant to sect 313805 RSMo the commission is required to regulate the wagering structure to include a maximum loss of five hundred dollars per individual player per gambling excursion In order to enforce this provision the commission requires the following procedure
I In order to board an exctrrsion gambling boat a customer most stand in line to obtain a ptrrchase authorization coupon (scrip) This scrip must be signed by the customer in the presence of a licensed riverboat employee
2 After the customer receives the scrip heshe must get in another line to board the riverboat The scrip also serves as the customers boarding pass
3 The scrip which is time and date stamped must be printed with boxes of denominations ofwhich the total ofall boxes shall not exceed $500 These boxes shall be canceled by pennanent black marker at the time the patron presents the scrip in the riverboat casino lfthe scrip is not signed at the time of presentment or the date and time are not valid the scrip shall be confiscated from the customer If the scrip is valid and there are sufficient available boxes the cashier shall cancel the appropriate number of boxes with a pennanent black marker and complete the transaction
4 In a situation where a customer wishes to buy chips at a table the procedtrre is the same except that the dealer stops the game to execute the transaction On many occasions the use of the scrip to convert cash to chips will slow up the game This is another example of customer dissatisfaction arismg out of the process
Transcript Missouri gaming commission meeting November 25 1996 pages 8 II and 1~17 (Bruce Turner Salomon Brothers) pages 44-46 (Joe Coccimiglio Prodential Securities) pages 57-58 (Tom Ryan Bankers Trust) pages 65-68 (Larry Klatzkin Donaldson Lufkin ampJenrette) pages 84-90 (Richard Byrne Merrill Lynch)
Missouri Garning Commission 1996 Annual Report - Page 4
Win Per Admission CoJql8ring Mssouri and IIhlls
those revenues fall short ofpredictions Analysts from Wall Street tell the commission that we are exporting our tax dollars to other states In a recent commission meeting regarding market size a well respected gaming analyst opined that while Missouri supplies 73 ofthe gaming market in the S1 Louis area it captures only 50 ofthe revenue Z
Finally the gaming experience ofconsumers who do visit Missouri gaming operators is less desirable than the experience offered by competitive states Missouri is offering a more cumbersome and less enjoyable product The commission believes that the gaming policy for Missouri should retain the Missouri dollars in Missouri and attract dollars from other states Our current policy has the exact opposite result
The Costs 0Competitive Ineriority
Limiting the ability ofMissouri operators to offer a competitive entertainment product has direct economic costs which are easily illustrated Missouri gaming riverboats are larger more luxurious and offer more non-gaming amenities than competitors in neighboring states Yet they fail to compete in economic terms even though the bulk ofthe popUlation seeking the entertainment product lives in Missouri
For example the Casino Queen in East St Louis Illinois and the Alton Belle in Alton Illinois combined have less capital investment than St Charles Riverfront Station which has consistently expanded and reinvested since it opened in May 1994 In addition these Illinois gaming facilities consist primarily of parking facilities and the gaming casino They offer no non-gaming amenities other than limited restaurant facilities
In spite of these negative competitive factors the two Illinois facilities regularly outperform SCRS in spending per customer Similarly Illinois riverboats in the St Louis area fare significantly better in gaming revenue per square foot gaming revenue per position and admissions per square foot One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
pages 104-106 (John Maxwell Standard amp Poors) and pages 115-118 (Steve Schneider Stife Nicoaus) See also Minutes ofMissouri gaming commission meeting May 24 1995
Missouri Gaming Commission minutes November 25 1996page 27 quoting Jason Ader Bear Stems gaming analyst Examples ofsome of the non-gaming amenities included in Missouri projects include themed restaurants movie theaters botels meeting space retail shopping child
care centers micro breweries an 18th century railroad car restored to its original luxury fountain displays and theaters for live entertainment
Missouri Gaming Commission 1996Annual Report - Page 5
2
The Problem is Clear - How does Missouri Address the Problem
Missouri statutes require the commission to report annually to the Governor and the General Assembly on the competitive state of the gaming industry in Missouri For two years the commission has advised the General Assembly that we believe that there could be a problem with the structure of the gaming industry but that the data is incomplete However we now fmd the data to be clear and compelling A problem exists in the Missouri gaming industry -- the gaming product is not competitive with our neighboring states This will create negative economic results and lower tax revenues
Due to navigational safety constraints most Missouri riverboats do not cruise It has been suggested by gaming analyst and by legislation filed in prior years that the elimination of the boarding time restrictions will help Missouri gaming operators economically and be more consumer friendly The commission believes that the current boarding time restrictions are detrimental to the consumer and make little sense since the riverboats are not leaving the dock They are an artificial barrier to entry and participation Yet the boarding times are essential to enforcing the loss limit A change in the statutes which
3(()
21)Q
i a
OIl
eliminates the boarding times but maintains the loss limit would make the enforcement of the loss limit impossible
Findings
Current Missouri statutes are not competitive with our adjoining states Consequently Missouri is at a competitive disadvantage Repealing the loss limit would make the Missouri operators more competitive Without this change the Missouri gaming industry will continue to be at a competitive disadvantage and over time will decline rather than prosper
Conclusioll
Section 313837 RSMo requires the commission to report annually to the general assembly on the effects ofthe loss limit on the competitiveness of the gaming industry in Missouri The findings above are intended to satisfy this statutory mandate The enactment of any changes in policy as a result of these findings are obviously the purview of the General Assembly and the Governor
Missouri Gaming Commission 1996Annual Report - Page 6
Effect of Tax Rate on Competitiveness
The Missouri tax rate currently mirrors that of its principle competitor the State of Illinois The MissourilIlIinois tax rate consists of a 20 base tax on adjusted gross receipts (AGR) In Missouri 10 of that tax (or 2 of AGR) is a local tax imposed by state statute The funds collected from this local tax are allocated to the home dock city or county fur services necessary for the safety of the public visiting the excursion gambling boat The remaining tax on AGR (18 of gross receipts) is placed in the Gaming Proceeds for Education Fund and may be spent only for public elementary secondary and higher education
Iowa has a graduated tax tbat caps out at 20 for adjusted gross receipts over $3 million Because the graduated rate reaches its cap at the relatively low ceiling 0pound$3 million Iowas effective tax rate is not significantly
The state of Kansas has recently allowed casinos operated by native American Indians These casinos are not taxed
For your future reference a table is contained in Appendix B setting forth the tax rate in each gaming jurisdiction and the regulatory restrictions that are imposed The chart below is a generalization of the tax rates in the various gaming jurisdictions Because of the subtleties of each states tax law it is difficult to precisely chart the rates For a defmitive explanation of the tax rates refer to the aforementioned chart in Appendix B
The Commission does not feel that the 20010 tax rate currently places our licensees at a competitive disadvantage The commission will continue to monitor the performance of all licensees and report developments as they occur
different from that of Missouri and Illinois
Licensees are also responsible for a $2 admission fee for each person who participates in a gaming excursion One dollar of this fee is remitted to the home dock city or county The remaining dollar is used to fund the regulatory activities of the Commission No general revenue is used for any activity of the Commission In addition to the $2 admission fee the gaming boat is billed monthly for the full cost of the enforcement agents assigned to the boat Either through fees or direct billing the gaming operators pay for the full cost of their own regulation
The State of Mississippi assesses a tax of 12 on AGR Unlike Illinois who is limited to licensing 10 gaming operations Mississippi has not limited the number of casinos licensed but has licensed all applicants that have been found suitable The Missouri law does not specifically limit the number of licenses that may be issued but places this responsibility in the hands of the Commission through a best interests of Missouri standard
Comparison of Gaming Tax Rates TaxonAGR
25
20 m ma )(
15 IImTaxRaeJ ~ 10
5
0 NV NJ LA
----------------------------------
MS IL IN IA MO CO so State
Missouri Gamilg Commission 1996Annual Report - Page 7
Missouri Gaming Commission Contributions to Education
Fiscal Year 1995
Gaming Proceeds for Education $ 5661628204
Bingo Tax Proceeds for Education $ 625370396
FY95 Tax Revenue from Gaming $6286998600
Fiscal Year 1996
Gaming Proceeds for Education $9973032067
Bingo Tax Proceeds for Education $ 468417852
FY 96 Tax Revenue from Gaming $10441449919
Total Tax Revenue from Gaming 516728448519
Does the GamblingMoneYiReallyGoo Fund Education
This may be the question inostfrequently asked ofpublic officials The simple answer is yes it does Pursuant to aconstitution~lamendntent passed by theGeneraIAssemblyasSJk 20 in 1992 andapproved bythe voters in a subsequent general electionmiddotall state tax money derived from the proceeds ofgamblirigisspent on education
The text ofthisconstitutional provision contained inArtiete 1lISection 39(d) reads as follows
All state revenues derived from the conduct ofaUgaming activities as are now or hereafter authorized by thiscomtitution orbyJaw unless otherwise provided bylaw on the ~ffectivedateofthissectionshallbemiddot appropriated beginoingJuly 1193solely for the pl1blic instittitions of elementary secondary and higheredueatioll and shaH~ot be included within the defmitionoftotal staterevenues in sectioid 7ofarticle X of this constitution
The tax revenues derivedfimnthe proceeds ofgambling foifiscalyeart998 are estimated to be $155 millionmiddot In ~d~itionto thegamblingm~neymiddot traditional stategeneralrevelluefundingfor publicschoo~ bas Uicreased every year since riverboatgillllblingwasenacted Thetotalstatebudget for educationwhichrepresents approximately 50of the average local school budget is $2965 billion Theg~~lIDgnlOney was designedtoslipplel1lent not replace the primatySufCeS ofpqb lie school fuDding[befunds derived from gambling have be~nusedfortheOiltstandingSchools TtilStFundthemiddotmiddot SchoolDistrict Bond Fund fotmainteniuiceandcapital exp~nclilures for public colleges and universities and to supplcentmenttheschool foundlltionmiddot formula
Missouri Gaming Commission 1996 Annual Report - Page 8
for an entertainment experience Gaming is an entertainment industry In the entertainment industry the consumers demand a product that they can enjoy during their leisure time on their own terms
In Missouri there are consumers that indicate they dislike the product which they are being offered Many of these conswners will go out of their way even travel to another state to fmd a product that is more user friendly A cursory survey of the license plates in the parking lot I)fthe Casino Queen in East 8t Louis Illinois adequately demonstrates this point
Many Missouri gaming customers complain that the loss limit is inconvenient intrusive and that it detracts from the entertainment experience they seek at Missouri riverboats To have to account for ones spending during what is supposed to be a leisure activity strikes many as a personal encroachment The fact that this requirement is imposed and enforced by the government further aggravates this perception
Many Missouri consumers react to this restriction by taking their leisure time and tax dollars across the border to JIlinois Iowa or Kansas where there are no limits Furthermore it is apparent that the loss limit severely restricts Missouri riverboat operators from drawing tourist customers from other states Consumers choice as to how to spend their discretionary leisure dollars is evident in the competitive gaming arena
The Missouri gaming law was adopted by the people for its potential to generate economic development its ability to raise needed revenue for education and because it is a leisure activity that many want to pursue The loss limit detracts from aU of these goals While Missouri is currently the beneficiary ofa significant amount of capital investment and new job creation the continuing negative impact of the loss limit renders our economic future in this area uncertain Because of the loss limit Missouri riverboat operators are less competitive the state is losing money to its neighboring states there is a reduction in the number of available jobs and the number of riverboats that can successfully operate in Missouri is restricted
Tax revenues from gaming have benefited education While tax revenues from gaming are still growing after only two years Missouri has seen
~ -
How does the Loss Linlit Work
Pursuant to sect 313805 RSMo the commission is required to regulate the wagering structure to include a maximum loss of five hundred dollars per individual player per gambling excursion In order to enforce this provision the commission requires the following procedure
I In order to board an exctrrsion gambling boat a customer most stand in line to obtain a ptrrchase authorization coupon (scrip) This scrip must be signed by the customer in the presence of a licensed riverboat employee
2 After the customer receives the scrip heshe must get in another line to board the riverboat The scrip also serves as the customers boarding pass
3 The scrip which is time and date stamped must be printed with boxes of denominations ofwhich the total ofall boxes shall not exceed $500 These boxes shall be canceled by pennanent black marker at the time the patron presents the scrip in the riverboat casino lfthe scrip is not signed at the time of presentment or the date and time are not valid the scrip shall be confiscated from the customer If the scrip is valid and there are sufficient available boxes the cashier shall cancel the appropriate number of boxes with a pennanent black marker and complete the transaction
4 In a situation where a customer wishes to buy chips at a table the procedtrre is the same except that the dealer stops the game to execute the transaction On many occasions the use of the scrip to convert cash to chips will slow up the game This is another example of customer dissatisfaction arismg out of the process
Transcript Missouri gaming commission meeting November 25 1996 pages 8 II and 1~17 (Bruce Turner Salomon Brothers) pages 44-46 (Joe Coccimiglio Prodential Securities) pages 57-58 (Tom Ryan Bankers Trust) pages 65-68 (Larry Klatzkin Donaldson Lufkin ampJenrette) pages 84-90 (Richard Byrne Merrill Lynch)
Missouri Garning Commission 1996 Annual Report - Page 4
Win Per Admission CoJql8ring Mssouri and IIhlls
those revenues fall short ofpredictions Analysts from Wall Street tell the commission that we are exporting our tax dollars to other states In a recent commission meeting regarding market size a well respected gaming analyst opined that while Missouri supplies 73 ofthe gaming market in the S1 Louis area it captures only 50 ofthe revenue Z
Finally the gaming experience ofconsumers who do visit Missouri gaming operators is less desirable than the experience offered by competitive states Missouri is offering a more cumbersome and less enjoyable product The commission believes that the gaming policy for Missouri should retain the Missouri dollars in Missouri and attract dollars from other states Our current policy has the exact opposite result
The Costs 0Competitive Ineriority
Limiting the ability ofMissouri operators to offer a competitive entertainment product has direct economic costs which are easily illustrated Missouri gaming riverboats are larger more luxurious and offer more non-gaming amenities than competitors in neighboring states Yet they fail to compete in economic terms even though the bulk ofthe popUlation seeking the entertainment product lives in Missouri
For example the Casino Queen in East St Louis Illinois and the Alton Belle in Alton Illinois combined have less capital investment than St Charles Riverfront Station which has consistently expanded and reinvested since it opened in May 1994 In addition these Illinois gaming facilities consist primarily of parking facilities and the gaming casino They offer no non-gaming amenities other than limited restaurant facilities
In spite of these negative competitive factors the two Illinois facilities regularly outperform SCRS in spending per customer Similarly Illinois riverboats in the St Louis area fare significantly better in gaming revenue per square foot gaming revenue per position and admissions per square foot One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
pages 104-106 (John Maxwell Standard amp Poors) and pages 115-118 (Steve Schneider Stife Nicoaus) See also Minutes ofMissouri gaming commission meeting May 24 1995
Missouri Gaming Commission minutes November 25 1996page 27 quoting Jason Ader Bear Stems gaming analyst Examples ofsome of the non-gaming amenities included in Missouri projects include themed restaurants movie theaters botels meeting space retail shopping child
care centers micro breweries an 18th century railroad car restored to its original luxury fountain displays and theaters for live entertainment
Missouri Gaming Commission 1996Annual Report - Page 5
2
The Problem is Clear - How does Missouri Address the Problem
Missouri statutes require the commission to report annually to the Governor and the General Assembly on the competitive state of the gaming industry in Missouri For two years the commission has advised the General Assembly that we believe that there could be a problem with the structure of the gaming industry but that the data is incomplete However we now fmd the data to be clear and compelling A problem exists in the Missouri gaming industry -- the gaming product is not competitive with our neighboring states This will create negative economic results and lower tax revenues
Due to navigational safety constraints most Missouri riverboats do not cruise It has been suggested by gaming analyst and by legislation filed in prior years that the elimination of the boarding time restrictions will help Missouri gaming operators economically and be more consumer friendly The commission believes that the current boarding time restrictions are detrimental to the consumer and make little sense since the riverboats are not leaving the dock They are an artificial barrier to entry and participation Yet the boarding times are essential to enforcing the loss limit A change in the statutes which
3(()
21)Q
i a
OIl
eliminates the boarding times but maintains the loss limit would make the enforcement of the loss limit impossible
Findings
Current Missouri statutes are not competitive with our adjoining states Consequently Missouri is at a competitive disadvantage Repealing the loss limit would make the Missouri operators more competitive Without this change the Missouri gaming industry will continue to be at a competitive disadvantage and over time will decline rather than prosper
Conclusioll
Section 313837 RSMo requires the commission to report annually to the general assembly on the effects ofthe loss limit on the competitiveness of the gaming industry in Missouri The findings above are intended to satisfy this statutory mandate The enactment of any changes in policy as a result of these findings are obviously the purview of the General Assembly and the Governor
Missouri Gaming Commission 1996Annual Report - Page 6
Effect of Tax Rate on Competitiveness
The Missouri tax rate currently mirrors that of its principle competitor the State of Illinois The MissourilIlIinois tax rate consists of a 20 base tax on adjusted gross receipts (AGR) In Missouri 10 of that tax (or 2 of AGR) is a local tax imposed by state statute The funds collected from this local tax are allocated to the home dock city or county fur services necessary for the safety of the public visiting the excursion gambling boat The remaining tax on AGR (18 of gross receipts) is placed in the Gaming Proceeds for Education Fund and may be spent only for public elementary secondary and higher education
Iowa has a graduated tax tbat caps out at 20 for adjusted gross receipts over $3 million Because the graduated rate reaches its cap at the relatively low ceiling 0pound$3 million Iowas effective tax rate is not significantly
The state of Kansas has recently allowed casinos operated by native American Indians These casinos are not taxed
For your future reference a table is contained in Appendix B setting forth the tax rate in each gaming jurisdiction and the regulatory restrictions that are imposed The chart below is a generalization of the tax rates in the various gaming jurisdictions Because of the subtleties of each states tax law it is difficult to precisely chart the rates For a defmitive explanation of the tax rates refer to the aforementioned chart in Appendix B
The Commission does not feel that the 20010 tax rate currently places our licensees at a competitive disadvantage The commission will continue to monitor the performance of all licensees and report developments as they occur
different from that of Missouri and Illinois
Licensees are also responsible for a $2 admission fee for each person who participates in a gaming excursion One dollar of this fee is remitted to the home dock city or county The remaining dollar is used to fund the regulatory activities of the Commission No general revenue is used for any activity of the Commission In addition to the $2 admission fee the gaming boat is billed monthly for the full cost of the enforcement agents assigned to the boat Either through fees or direct billing the gaming operators pay for the full cost of their own regulation
The State of Mississippi assesses a tax of 12 on AGR Unlike Illinois who is limited to licensing 10 gaming operations Mississippi has not limited the number of casinos licensed but has licensed all applicants that have been found suitable The Missouri law does not specifically limit the number of licenses that may be issued but places this responsibility in the hands of the Commission through a best interests of Missouri standard
Comparison of Gaming Tax Rates TaxonAGR
25
20 m ma )(
15 IImTaxRaeJ ~ 10
5
0 NV NJ LA
----------------------------------
MS IL IN IA MO CO so State
Missouri Gamilg Commission 1996Annual Report - Page 7
Missouri Gaming Commission Contributions to Education
Fiscal Year 1995
Gaming Proceeds for Education $ 5661628204
Bingo Tax Proceeds for Education $ 625370396
FY95 Tax Revenue from Gaming $6286998600
Fiscal Year 1996
Gaming Proceeds for Education $9973032067
Bingo Tax Proceeds for Education $ 468417852
FY 96 Tax Revenue from Gaming $10441449919
Total Tax Revenue from Gaming 516728448519
Does the GamblingMoneYiReallyGoo Fund Education
This may be the question inostfrequently asked ofpublic officials The simple answer is yes it does Pursuant to aconstitution~lamendntent passed by theGeneraIAssemblyasSJk 20 in 1992 andapproved bythe voters in a subsequent general electionmiddotall state tax money derived from the proceeds ofgamblirigisspent on education
The text ofthisconstitutional provision contained inArtiete 1lISection 39(d) reads as follows
All state revenues derived from the conduct ofaUgaming activities as are now or hereafter authorized by thiscomtitution orbyJaw unless otherwise provided bylaw on the ~ffectivedateofthissectionshallbemiddot appropriated beginoingJuly 1193solely for the pl1blic instittitions of elementary secondary and higheredueatioll and shaH~ot be included within the defmitionoftotal staterevenues in sectioid 7ofarticle X of this constitution
The tax revenues derivedfimnthe proceeds ofgambling foifiscalyeart998 are estimated to be $155 millionmiddot In ~d~itionto thegamblingm~neymiddot traditional stategeneralrevelluefundingfor publicschoo~ bas Uicreased every year since riverboatgillllblingwasenacted Thetotalstatebudget for educationwhichrepresents approximately 50of the average local school budget is $2965 billion Theg~~lIDgnlOney was designedtoslipplel1lent not replace the primatySufCeS ofpqb lie school fuDding[befunds derived from gambling have be~nusedfortheOiltstandingSchools TtilStFundthemiddotmiddot SchoolDistrict Bond Fund fotmainteniuiceandcapital exp~nclilures for public colleges and universities and to supplcentmenttheschool foundlltionmiddot formula
Missouri Gaming Commission 1996 Annual Report - Page 8
middot Where Does All the middot Gaming Tox Money Go
Orgallizationai Structure OFFICE OF THE EXECUTIVE DIRECTOR
Thomas J Irwin was named Executive Director by the Commission on October 21 1993 Mr Irwin came to the Commission after serving 3 years as Executive Assistant to St Louis County Executive Buzz Westfall Mr Irwin is a graduate ofHarvard University where he earned his masters degree from the Kennedy School ofGovernment He has served as the Chief Budget Officer for the Boston Police Department and was the Executive Assistant for Intergovernmental Affairs for St Louis mayor Vince Schoemehl from 1982 to
1988 Mr Irwin is a veteran of the United States Marine Corps having served
in Vietnam in 1968
i i Mr Irwin is responsible for the day-to-day operations of the
Commission He supervises all staff activities and reports to the Commission Among the staff positions reporting to the Director is Public Information
i K Officer Harold Bailey Mr Bailey is responsible for organizing and
distributing all public documents and reports
I In addition there are six primary functions of the Commission that
it have been divided into sections that report directly to Mr Irwin including
Administration Audit Bingo Corporate Securities Enforcement amp
t ~
Investigations and Legal amp Legislative Affairs
I ADMINISTRA110N
The administration section headed by Deputy Director Deborah A Ferguson provides a range of administrative financial and technical services to
help the Commission accomplish its goals The administrative services can be divided into the following functions accounts payable accounts receivable purchasing data processing budget facility leasing and human resources Accomplishments of the administration section would not have come to pass without the assistance ofChiefAccountant Denny Hodges Persomlel Officer Vicki Glenn Records Administrator Michael Shelhnan and Data Processing Manager John Bluma The administration staff benefited from the addition ofTen a Smith Diane Riddle and Mike Brizendine
The administration section continues to be a focal point of activity with the continued growth of the gaming industry l1te highlight of this past year was the relocation of the Jefferson City office Plaooing and design for the Jefferson City office began in 1995 and culminated with the move in September 1996 Highlights of the new building include a hearing room to conduct Commission meetings adequate file space to house the Commission
records that will be relocated from the St Louis office and the merging of the Bingo and Gaming staff into one facility to enhance coordination ofdaily activities
More specifically the duties of this section are as follows
~ Billing licensees for the processing and aoouallicenses issued to Level One and level Two Occupational employees that work for each riverboat To date there are approximately 9000 licensed employees
~ Billing licensed operators for the full cost of the enforcement agents assigned to each boat
~ Maintaining all Commission fmancial and personnel records which includes the monthly reconciliation of the Gaming Commission fund balance and processing aU payments made by the Commission
gt Preparation and implementation of the Commissions annual budget to ensure compliance with legislative intent
~ Handling all personnel matters and employee training and establishing and implementing written office policies for Commission staff
gt Preparation of fiscal notes to provide estimates to proposed legislation
Data Processiltg
The Data Processing section headed by John Blunm had a busy year in 1996 which included major systems developments as well as the daunting task of moving the Jefferson City office to a new location Some ofthe accomplishments of this important section include
~ Opening new commission offices for its agents at licensed premises
~ Moving the Jefferson City offices of the Riverboat Gaming and the Bingo workgroups to the new location This involved moving all computer workstations servers communications processors and printers to the new
Missouri Gaming Commission 1996 Annual Report - Page 10
building The two separate networks were consolidated into one large network that provides email between all members ofthe two sections for the fIrSt time and allows sharing of peripheral equipment such as laser printers
gt Final testing and implementation ofa billing system for enforcement billing to reimburse the state for expenses related to regulating the casino gaming industry
~ Automation ofannual MULES checks required of the 9000 plus gaming occupational license holders eliminating hundreds ofhours ofdata entry time
gt Upgrade of the physical inventory system to provide more complete reports and to track add-on costs to major inventory items
gt Design and development ofan occupational license history tracking system to provide a complete picture of license payments changes in license status duplicate badges issued and changes in employment status
gt Enhancing existing systems to meet new statutes and rules and regulations
AUDET
The audit section is responsible for the critical function ofensuring that the operators pay their taxes promptly and accurately This section headed by Jolm Davis former Internal Revenue Service Manager developed the Commissions tax remittal system that allows the Commission to capture tax remittance data on a daily basis The operators returns are audited by compliance audit siaffheaded up by senior accountant Kara Hardaway
The audit section also develops audit programs reviews and approves each boats system ofintemal controls conducts on-site performance audits reviews the quarterly CPA audits ofAdjusted Gross Receipts Tax and Admission Tax and reviews all internal audit reports prepared by the casinos internal audit staff
During 1996 the audit section revised Minimum Internal Control Standards that all operators must meet These standards were developed by the
audit staff after a lengthy review process that involved input from the IRS enforcement officers and industry experts
The audit section also implemented a system for tracking and depositing all non-tax revenue received from applicants such as application fees from applicants and reimbursements for Commission services
A summary ofsome ofthe audit sections programs and objectives is contained on page 22
BINGO
The Bingo Division is comprised ofthree separate sections which include the Administration Licensing Audit and Enforcement The Bingo Division Supervisor is Ron Pleus The Audit Section Supervisor is Randall Cahill and the Enforcement Section Supervisor is Sergeant Dwight Franklin The bingo statutes have been revised significantly in recent years requiring many administrative changes to occur within the Division Among the more daunting projects were the establishment ofa new licensing category for hall providers and the implementation ofa new supplier-based tax Specific duties within the three sections of the Bingo Division and the recent statntory changes are briefly outlined below
AdministrativeILicensiog Section - This section is responsible for the processing ofall correspondence and the licensing and maintenance ofover 1500 operator licensees which include all regular and special event bingo operators licenses and 200 hall providers annually This section deposits and records an tax and license receipts received on a daily basis This unit maintains a data base of over 31000 records ofindividuals that are involved in the management conduct andor operation ofbingo games and 3000 records of individuals involved as owners and officers of licensed Hall Providers Currently this staff consist ofthree employees Jane Bax Pam Murphy and Tina Freese In conjunction with the data processing staff the administrative section has developed an automated renewal application system which became fully operational January 1996 This system simplifies the renewal process for the licensee and eliminates wasted steps and duplicate information The system has proven to be a tremendous time saver for the not-for-profit volunteer organizations who are required to file renewals and also helps to reduce the staffmg cost and other administrative cost for the Division
Missouri Gaming Commissioll 1996 Allnual Report ~ Page 11
Audit Section - This section is responsible for the timely audit of all Bingo Product Manufacturers and Suppliers and assisting the Enforcement Section with oil-site inspections of bingo operators The audit staff has developed a comprehensive Manufacturer and Supplier audit procedure manual and has developed procedures for the inspection ofbingo operators The procedures for the inspection of bingo operators are used by both the Enforcement and Audit Staffs The audit section has audited all of the licensed Manufacturers and Suppliers during fiscal year 1996 These audits resulted in over $32000000 in unreported taxes and penalties The auditors also assisted enforcement with inspections and investigations of unlicensed suppliers and operators The section conducts on-site inspections of formerly licensed suppliers to determine ifthe products in inventory were being disposed of in accordance with the statutes The audit staff also assists the administrative staff in auditing the operators quarterly repom
Enforeement Section - This section is headed by Sgt Dwight Franklin a 17 year veteran ofthe Missouri Highway Patrol Sgt Franklin has six (6) officers assigned to the enforcement section Their duties include background investigations of all Manufacturers and Suppliers to include all the key personnel in those companies These investigations include criminal checks fmancial checks past employment history and all litigation involving the applicant In addition the enforcement section is responsible for investigating complaints on the licensed bingo organizations The complaints range from minor rule violations to thefts of large sums of money Complaints are received on a daily basis and are investigated on the basis of severity location and available manpower An additional duty of the Enforcement Section is to complete background investigations on all new potential employees of the Gaming Commission
CORPORATE SECURITIES AND FINANCE
The Commission has established a Section of Corporate Securities and Finance to address the challenge ofregulating the complex fmancial corporate structuring and contractual transactions involving publicly traded and privately held gaming companies This section is comprised of staff trained in legal accounting and business matters to perform examinations of these transactions
The suitability issues examined by the Corporate Securities and Finance Section include complex fmancial and legal suitability issues such as fmancial soundness corporate control legal compliance and procedural licensing issues
The sections examinations are coordinated closely with the Enforcement Division for background investigations and disciplinary matters
Typical transactions that are examined by the section include mergers and acquisitions public debt and equity issuances and private financings such as bank loans and credit facilities The goal of this new section is to provide the Commission with more thorough and sophisticated investigations and analysis of the suitability ofgaming companies and with a uniform system for providing this analysis on corporate securities and fmance issues Through this section the Commission hopes to identifY suitability problems ofapplicants and licensees earlier and more efficiently and to identifY plan for and possibly even avoid potential business closures of licensees due to fmandal matters
The Corporate Securities and Finance Section is headed by the Commissions General Counsel Greg Orner who reports directly to the Executive Director on corporate securities and finance matters The section also includes a Chief Financial Analyst position to be filled soon which will oversee the work ofthe fmancial staff examining the corporate secwities and fmance transactions
The Conunissions Financial Manager Pam Brown haS handled the fmandal analysis of the reported transactions up to now and will continue to perfonn many of the more complex transaction examinations and oversee the work of an accountant Pam Wheelis and a fmancial analyst (planned to be added next year) who are also assigned to the section
ENFORCEMENT
Enforcement for the Missouri Gaming Commission is provided by officers of the Missouri State Highway Patrol and agents of the Internal Revenue Service by way of Memorandums ofUnderstanding which set forth the responsibilities ofeach entity
The enforcement section is headed by Mel Fisher former Superintendent of the Highway Patrol The Gaming Division ofthe Highway Patrol is headed by Captain Dwight Hartung There are seventy-seven officers assigned to the Gaming Division and an additional six officers assigned to the Bingo Enforcement Unit
Some of the advantages ofusing Highway Patrol Officers as gaming agents include
JtfisSOUli Gaming Commission 1996 Annual Report - Page 12
the staff assigned are trained specialists in law enforcement and investigations thus saving the Commission the time effort and expense of recruitment and training
because the agents are licensed law enforcement officers they command immediate respect when interacting with licensees and customers aboard a riverboat as well as when they are in a foreign jurisdiction conducting an investigation
~ the Commission feels that it is important to rotate enforcement staff aboard the various boats this process is much easier with seasoned law enforcement officers who are used to being rotated between assignments as well as in and out of the gaming division
gt provides the ability to access sensitive law enforcement information from other jurisdictions
gt their experience in conducting investigations and handling emergency situations has proven invaluable
The Commissions background investigation units consist of three Highway Patrol Officers and one IRS agent The background investigations conducted by the Missouri Gaming Commission are thorough and take approximately four months to complete if no unusual complications or delays emerge The Commission not only investigates the finances and activities of the company and all its key people but traces the source ofall their funds to ensure that no criminal elements are funding the operation from behind the scene An outline that provides a sketch of a typical background investigation is contained on page 20
LEGAL amp LEGISLATIVE AFFAIRS
The legal amp legislative affairs section is responsible for all legal matters presented to the commission prior to litigation Any litigation involving the commission is handled by the Attorney Generals office In addition this section which is headed by Deputy Director Kevin Mullally develops and drafts legislation endorsed by the commission as well as all rules and regulations Moreover the legal section manages an administrative appeals docket where Mullally serves as Hearing Officer
Greg Orner serves as the commissions general coWlSel and works closely with the enforcement staff reviewing incident reports investigative issues and possible disciplinary actions In addition Mr Omer heads the Corporate Securities section
Some of tbe otber responsibilities of the legal section include
~ Drafting all resolutions for all commission actions and
gt preparing disciplinary complaints and denial orders for proposed action against licensees and
gt conducting quasi-legislative hearings on issues such as continuous docking and boat design and
gt providing legal research services and
gt organizing and maintaining records ofall official commission actions and commission policies and
gt handling inquiries from legislators constituents and other state regulatory agencies
The commissions legal staff is supported by paralegal Heather Grefrath and legal secretary Susan Sundermeyer This support staff is critical to daily operations ofthe legal section and is particularly valuable in the sections role in preparing and managing the rules and regulations all documents necessary for commission meetings and all documents declaring commission policy
In 1997 the legal section will be augmented with the addition ofstaff attorney Robert Little
PENDING LITIGATION
The Missouri Gaming commission denied one occupational license in 1994 thirteen occupational licenses in 1995 and thirty-five occupational licenses in 1996 Each aplicant is presumed WlSuitable and has the burden of proof to prove his or her suitability to the Conunssion An individual may request a hearing to attempt to prove suitability to the Commission by serving
Missouri Gaming Commission 1996Annual Reporl- Page 13
such a request on the commissions Executive Director The following is a list of pending litigation
Petitioner Venue
Bingo Systems amp Supply AHC Cape Girardeau Elks Lodge 639 AHC Cape Girardeau VFW Post 3838 AHC Edwin Pete Rhodes AHC Ideal Bingo Supplies Inc AHC Mary Cracchiolo AHC Maureen L Scott AHC Meramec-Amold Eagles Auxiliary AHC Myron B Carter Sr AHC Pan-Education Institute AHC Raymond J Drury AHC Raytown Women of Today AHC Sandra Termini AHC Stanley L Turner AHC Missouri Gaming Co ~Disc Action MGC Harrahs -Disciplinary Action MGC Boyd Kansas City Inc -Disc Action MGC Jeffery Koester -Denied License MGC Gary Franklin -Denied License MGC Mark Zwolle -Disciplinary Action MGC Anthony Civella -Exclusion MGC Peter Simone -Exclusion MGC Yolanda Nettles MGC Tracy Anderson MGC Carrie Gentry MGC Jimmie B Carsey MGC Cape Girardeau Elks amp VFW Circuit Court ofCape Girardeau County MGC v Veterans Commission
st Louis Public Schools Missouri Supreme Court W Todd Akin v MGC Missouri Supreme Court William D Cmmnisano Jr Missouri Court ofAppeals-Western District Pen-Yan Investment Inc Missouri Court ofAppeals-Western District
SUMMARY OF PENDING LITIGATION
There are fourteen bingo cases pending in the Administrative Hearing Commission
There are three disciplinary cases at the Commission level against gaming licensees pending the outcome ofPen-Yon Investment Inc v Boyd Kansas City Inc and MGC
Pen-Yon Investment Inc v Boyd Kansas City Inc MGC is pending in the Missouri Court ofAppeals Western District regarding disciplinary action taken against Boyd for associating in business affairs with a person who has a felony police record The Commission imposed a fine against Boyd and prohibited Boyd from collecting or distributing any funds from the machines under its service agreement with Pen-Yan
MGC v Missouri Veterans Commission St Louis Public Schools is pending in the Missouri Supreme Court regarding funds received from fmes imposed by the Commission
In W Todd Akin et 01 v MGC the Circuit Court ofCole County ruled in favor of the commission on summary judgment The suit challenges the Commissions authority to grant or deny Harrahs Maryland Heights Corp and Players Maryland Heights LP a license for a continuously docked excursion gambling boat within a man-made basin filled by water from the Mississippi River The petitioners have appealed and the matter is now before the Missouri Supreme Court
Cape Girardeau Elks Lodge et aI v MGC is pending in the Circuit Court of Cape Girardeau County regarding the Commissions decision to suspend the Cape Girardeau Elks Lodge bingo license
In the Matler oWilliam D Cammisano Jr there is an appeal pending in the Missouri Court ofAppeals Western District regarding the Commissions decision to place Mr Cammisano on its List of Excluded Persons
MISSOURI GAMING COMMISSIONS EXCLUSION LIST
The Missouri Gaming Commissionplaced two individuals in 1994 two individuals in 1995 and two individuals in 1996 on the commissions Exclusion List Placement of these individuals on the Exclusion List has been based on prior convictions
As a result of placement on the Exclusion List each individual shall not be permitted eoby into any portion of a riverboat gaming operation within the state ofMissouri and shall be ejected ifdiscovered on such premises Furthermore Excluded Persons shall be prohibited from contact of any kind with Missouri riverboat gaming operations Persons placed on the Listmay file a written petition with the Commission to request a hearing to have their name
JlrJissOIlri Gaming Commission 1996 Annual Report - Page 14
removed from the Exclusion List Currentlyone individual has appealed to the Western District of Missouri and two otbers are pending hearings by the Missouri Gaming Commission
MISSOURI GAMING COMMISSIONS DISCIPLINARY ACTIONS AGAINSTOCCUPATIONAL LICENSEES
The Missouri Gaming Commission has taken disciplinary action against twenty-eight occupational licensees as of September 30 1996 Preliminary
Orders for Disciplinary Action set forth statements of fact that support the proposed disciplinary action and the regulatory and statutory sections involved Individuals may request a hearing by serving such a request on the Commissions Executive Director Currently four individuals have sought hearings before the Commission one ofwhich is stm pending
Occupational License Denials 1994-1996
40
l 30
lt0 c Q)
0 lt5 20 i-Q) 0 E ~ 10
o Year Licenses 1994 1995 1996 IiiI Licenses Denials 1 13 35
Voluntary Exclusions On December 30 1996 after six months of research and consultation the
commission established a unique program to combat problem gambling The List of Disassociated Persons is the result of many months ofconsultation with treatment professionals that help problem gamblers The program allows problem gamblers to exclude themselves from Missouri riverboat casinos under the threat ofarrest for trespassing
In exchange for agreeing not to patronize Missouri riverboat casinos the problem gambler is removed from all casino mailing lists and direct marketing promotions In addition the operators are required to deny persons on the List check cashing privileges and must take away their VIP or players club card
Treatment professionals have advised the commission that the only way for a problem gambler to get help is to admit that heshe has a problem and to accept personal responsibility for that problem by seeking treatment
The Disassociated Persons program is a valuable tool in addressing problem gambling because it requires the individual to admit to having a gambling problem to agree to seek treatment and stay away from gambling casinos Furthermore it includes severe consequences if the problem gambler succumbs to the temptation to gamble Moreover it offers some protection to the problem gambler from the marketing promotions that encourage people to visit the casino properties
The program operates in the following manner
~ The problem gambler must obtain an application for placement on the List ofDisassociated Persons from the commission
~ the application contains various information about the individual an admission that the person is a problem gambler and agrees to stay off Missouri riverboats and seek treatment an authorization to release this information to riverboat operators as well as a Waiver releasing the commission and the licensee from any liability associated with enforcing the rules of the program
~ the application must be personally presented to a commission agent at which time the information is verified and the rules of the program are explained
~ the application is a closed record and its contents may only be disclosed to necessary commission and riverboat personnel
~ the commission considers all applications in closed session
~ once a person is placed on the List heshe cannot petition for removal After consulting with treatment professionals the commission concluded that problem gambling requires lifetime treatment and therefore there is no procedure for removal from the List
Missouri is the frrst jurisdiction in the world to propose a program such as this We will continue to monitor and refme the program and look forward to reporting to you on its impact in next years annual report
ft-Iissouri Gaming CommissiOil 1996 Annual Report - Page 16
Brief Timeline of Riverboat Gaming in Missouri ~ May 13 1991 - General Assembly passes House Bill 149 which authorized
referendum to be submitted to the voters in the November 1992 election to determine whether the State Tourism Commission shall have the power to issue riverboat gambling licenses
gt November 31992 - Missouri voters pass referendum allowing riverboat gaming with a majority ofnearly 63
gt January 1993 - Governor Carnahan announces intentions to push legislation creating an independent Gaming Commission to oversee riverboat gambling
April 29 1993 -- SBs 10 amp 11 creating the Missouri Gaming Commission are signed into law by Governor Carnahan and five Commissioners are appointed Robert Wolfson Chairman Robert Clayton William Quinn Dr Jenice Stewart and Avis Tucker
gt April 30 1993 -- Troy Harris et al v The Missouri Gaming Commission amended petition is filed The petition challenges the constitutionality of Senate Bills 10 amp II
gt- May 17 1993 -- The Missouri Gaming Commission holds its first meeting
~ September 1 1993 -- Proposed Rules and EmergencY Rules are adopted
gt September 20 1993 - 19 riverboat gaming license applications are filed with the commission
gt September 20 1993 - Clarence E Mel Fisher hired as Deputy Director for Enforcement
gt September 24 1993 - Commission contracts with the Internal Revenue Service to perform fmancial investigations for the commission Four IRS agents are assigned to the commission
~ September 28 1993 - Commissions enters into and inter-agency agreement with the Missouri State Highway Patrol to provide enforcement services for the commission
~ October I 1993 - Debbie Ferguson joins the commission as Deputy Director for Administration
November 3 1993 - Commission hires Tom Irwin as Executive Director and Kevin Mullally as Deputy Director for Legal amp Legislative Affairs
November 30 1993 -- Commission announces that it will begin background investigations on the following companies President Riverboat Casino-Missouri St Charles Riverfront Station Inc S1 Joseph Riverboat Partners The Missouri Gaming Company GDC (Supplier) IGT (Supplier) Casino Tokens (Supplier) Paul-Son Dice amp Card Company (Supplier)
gt December 22 1993 - Governor Carnahan signs Executive Order 93-50 designating the enforcement section ofthe Missouri Gaming Commission as a criminal justice agency
1994
gt January 25 1994 -- Missouri Supreme Court in Troy Harris v Missouri Gaming Commission strikes down games of chance including slot machines The court ruled that the Commission did have the authority to issue licenses to riverboat where games ofskill are played Specifically mentioned as games ofskill are poker and blackjack The Court remanded six games to lower court for determination as to whether they are games of skill or chance baccarat craps roulette wheel klondike table faro layout and video games ofchance
~ February 1 1994 -- Rules and Regnlations become effective
February 7 1994 -- Legislature passes resolution to place constitutional amendment on the ballot which would allow the legislature to approve games of chance (slot machines) on riverboats and floating facilities on the Missouri and Mississippi Rivers
gt- April 5 1994 -- Voters defeat constitutional amendment allowing games of chance (slot machines) by an unofficial count of 1263 votes
~ April 29 1994 - Finding of Preliminary Suitability issued to President Riverboat Casino S1 Charles Riverfront Station St Joseph Riverboat Partners and The Missouri Gaming Company
Missouri Gaming Commission 1996 AnnualReport - Page 17
Brief Timeline of Riverboat Gaming in Missouri ~ May 20 1994 -- Governor signs into law SB 740 which defmes games of
chance and enacts more stringent ethics provisions The bill also allows the commission to license a barge in an artificial basin as an excursion gambling boat if it can be demonstrated that safely concerns prevent an operator from cruising from that location
~ May 27 1994 - Commission authorizes as games of skin the following Blackjack Caribbean Stud Poker Poker Double Down Stud Poker Pia Gow Poker Poker Texas Hold Em the video representations ofthese games and Craps
gt May 27 1994 -- Commission authorizes President Riverboat Casino-Missouri to operate the Admiral as a continuously docked excursion gambling boat because cruising would cause danger to the boats passengers
gt May 27 1994 -- Gaming Commission issues first two excursion gambling boat licenses to President Riverboat Casino in st Louis and St Charles Riverfront Station in st Charles
gt May 27 1994 -- Initiative petition tbat would allow voters to approve games ofchance is submitted to the Secretary of State for approval of the form ofthe petition
~ June 6 1994 -- Secretary ofState notifies referendum petitioners that the Attorney General has approved the form of their petition The Secretary of State prepared the following petition title that was approved by the Attorney General
Shall the General Assembly be authorized to permit only upon the Mississippi River and the Missouri River lotteries gift enterprises and games ofchance to be conducted on excursion gambling boats and floating facilities
gt June 9 1994 -- Commission prioritizes Aztar Missouri Corporation Boyd Kansas City Inc and Harrahs North Kansas City as companies to be investigated for licensure pursuant to 11 CSR 45-4060
gt June 22 1994 -- Gaming Commission issues licenses to St Joseph Riverboat Partners in St Joseph and The Missouri Gaming Company in Riverside
~ September 20 1994 -- Commission issues a fmding ofpreliminary suitability to Harrahs North Kansas City Corporation
gt September 20 1994 -- Commission authorizes Harrahs North Kansas City Corporation and st Charles Riverfront Stationl to operate excursion gamblillg boats as continuously docked vessels In both cases the commission found that operating a cruising vessel from the proposed site would cause danger to the boats passengers and the project will generate permanent job creation and land-based development
gt September 22 1994 -- Harrahs North Kansas City Corporation is issued an excursion gambling boat license
gt September 28 1994 - Public hearing regarding Capitol Queen and Casino Jncs application for an excursion gambling boat license results in the commission denying CQCs license and prohibiting them from reapplying for two years
gt October 7 1994 - Commission places William D Cammisano Jr and John Termini on its list of excluded persons
gt November 8 1994 -- Voters approve games ofchance
~ December 9 1994 - Games ofchance are allowed on riverboats
gt December 27 1994 - St Charles Riverfront Station is issued a license to operate the St Charles II as an excursion gambling boat This marks the fIrSt time the commission has licensed a second excursion gambling boat for a single development
The approval was for St Charles Riverfront Stations second boat The flTSt boat continued to cruise until April 16 1996
Missouri Gaming Commission 1996 Annual Report - Page 18
Brief Timeline of Riverboat Gaming in Missouri 1995
)gt- February 22 1995 -- Commission announces it will begin background investigation on Hilton Kansas City Corporation for an excursion gambling boat license
~ March 30 1995 - State Auditor releases final audit report of the Missouri Gaming Commission No major deficiencies are noted
~ April 20 1995 - Commission repays $3 million start-up loan to state general revenue fund
)gt- April 25 1995 - Commission approves continuous docking petitions for Boyd Kansas City Inc and Hilton Kansas City Corporation
~ April 25 1995 -- The commission issues a finding ofpreliminary suitability to Aztar Missouri Gaming Corporation
~ April 26 1995 -- The commission issues an excursion gambling boat license to Aztar Missouri Gaming Corporation in Caruthersville Missouri
)gt- May 24 1995 - The commission announces it will begin background investigations on the following companies Harrahs Maryland Heights Corporation Kansas City Station Inc Players Maryland Heights Inc
gt August 28 1995 - Pursuant to House Bill 574 the duties of the Missouri Horse Racing Commission are transferred to the Gaming Commission
~ September 12 1995 - The commission issues a fmding of preliminary suitability to Boyd Kansas City Inc
September 13 1995 - The commission grants the petition ofHarrahs Maryland Heights Corporation and Players Maryland Heights Inc to operate continuously docked excursion gambling boats at their joint venture in Maryland Heights
)gt- September 13 1995 - The commission issues an excursion gambling boat license to Boyd Kansas City Inc
)gtshy November 16 1995 shy The commission fines the following companies for associating with either socially or in business affairs persons with felony police records or persons with a notorious or unsavory reputation Boyd Kansas City Inc Harrahs North Kansas City Corporation The Missouri Gaming Company
1996
)gtshy February 15 1996 - The commission grants continuous docking rights to Aztar Missouri Gaming Corporation for a second boat in Caruthersville Harrahs North Kansas City for a second boat and Kansas City Station Corporation for two boats in Kansas City
~ April 16 1996 - The commission grants continuous docking rights to Argosy in Riverside Missouri S1 Joseph Riverboat Partners and 81 Charles Riverfront Station
~ May 15 1996 - The commission issues a license to Harrahs North Kansas City for the Lucky Star This is the second boat at the Harrahs North Kansas City mcility Included in the project is a 200-room hotel expanded parking and meeting space
~ June 19 1996 -- The commission places William Canunisano Jr on Exclusion List
~ June 27 1996 - The commission places Peter Simone and Anthony T Civella on Exclusion List
August 28 1996 - The commission takes disciplinary action against Boyd Kansas City Inc for periodic failure to take and report turnstile readings
~ October II 1996 - The commission issues a finding of prel iminary suitability to Hilton Kansas City Corporation and Flamingo Hilton Riverboat Casino LoP
October 18 1996 - TIle commission issues a Class B riverboat gambling license 10 HUlon KlIlIStIS City Corporation and a CltlSs A riverboat gambling license 10 Flamingo Hillon Riverboat CtlSino LP
Missouri Gaming Commission 1996Annual Report - Page 19
Outline of a Background Investigation
Review Application fin Completeneiis
~ Establish number ofkey people
~ Check disclosure forms for completeness
gt Check tax release forms
City Selection Process
~ Contact city to determine how the gaming operator was selected
gt Interview Mayor and City Council members
~ Ifa steering committee was used interview members of that committee
Determine ifany city officials own stock in the selected gaming company
~ Obtain minutes ofcouncil meetings that pertain to riverboat issues (a)selection (b) resolution and (c) ordinance
gt Contact city attorney who handled negotiations with gaming company and obtain correspondence between city and gaming company
~ Contact City Economic Development Director (if applicable)
Docksite
gt- Land selected for gaming operation
J Who was it purchased from (how long have they owned the property) J Price (copy ofcontract)J Copy of plat map and legal description J Determine ifany ofcity officials or selection committee members have
ownership interest in docksite
gt Corps ofEngineers Permit
J Status
J Any concerns by Corps J Wetlands involved
~ Contact DNR for any known concerns in area
gt Check with city for any known dwnpsites with possible hazardous material
gt Developmental agreement between city and gaming operator (obtain copy from city)
gt Detennine if development is feasible
J Is support facility land based or floating J Projected nwnber ofjobs economic aid to area J Traffic flow to area - what improvements are needed - who will pay
for improvements
Riverboat
gt Locate boat and obtain all infonnation about boat (cruise schedule liability carrier)
gt Establish design ofriverboat
gt Determine emergency medical plan for boat
gt Determine ifCoast Guard and other safety requirements have been met
Gaming Operator (Public Corporation Partnership Private Company)
gt Establish contact person with operator
J Determine attorney of record for gaming company J Any missing items from application advise contact person
gt Establish home office (Financial Headquarters)
J Determine a good date and location where all key people can be contacted for a personal interview
J Where can financial record be located
Missouri Gaming Commission 1996Annual Report - Page 20
~
Outline of a Background Investigation
J Breakdown ofmanagement (corporate Board ofDirectors major stockholders)
J Establish flow chart of key people and companies owned by gaming operator
~ Investigation ofKey People will include but not be limited to the following
J Check previous employment work records J Check state local and federal intelligence files J Check for other gaming licenses ifapplicable (check with appropriate
regulators)J Check state federal and local courts for any civil litigation J Check for any arrest record J Check personal and business credit J Check state and local tax status IRS will handle federal taxes
gt Other locations ofgaming operations (currently operating and pending locations)
J Contact gaming regulators for respective locations J Travel to sites to view operations
Establish a file for all key people investigated with summaries establish a file for financial records with summary offinancial viability ofcompany and ability to complete obligations to the city and State ofMissouri Establish a file for other locations of licensure along with summary
Associated Investigations
gt All allegations of Any nature must be investigated and a file established with a written summary
~ Associated investigations must be done in a complete and thorough manner and all reports written accurately
gt Upon completion ofall investigations complete reports and summaries a separate press releasable summary must be written This summary must be approved by Gaming Commission legal staff
Missouri Gaming Commission 1996 Annual Report - Page 21
------------
--------
-----
------
---
---------
----------
Missouri Gaming Commission Compliance Audit Objectives for Licensees
ObjectiveAudit Area ~~~~~~~~~
To ensure accuracy of ticket and turnstile counts reported to MGC including compsIVlPs stayovers and promotions
Table Games
Ticketffurnstile
To ensure accuracy of AGR for table games reported to MGC
Electronic Games To ensure accuracy of AGR for electronic games reported to MGC
Cage Accowltability To ensure accuracy ofcage accountability forms and compliance with internal controls and tax reporting regulations
Observations Cage Main Bank Pit Area Slot Area Turnstile Ticketing
PurchaselRedemptions
$500 Loss Limit
Stayover Procedures
To determine that cashiers are complying with internal controls for chips tokens gaming scrip and cash
To determine compliance with MO statutes and internal controls
To determine compliance with MGC regulations and internal controls
To ensure that manual jackpot payouts are properly handled and the required tax fomIS are completed Manual Jackpot Payouts
To ensure that hopper fills are properly handled and comply with internal controls Hopper Fills
To ensure that table fills are properly handled and comply with internal cootrols Table Fills
To ensure that table credits are properly handled and comply with internal controls Table Credits
To ensure that tracking procedures comply with internal controls and the currency transactions are properly completed Patron TrackingCurrency Transaction Reporting
Imprest Bank Balancing To ensure that proper balancing and accountability is performed during a shift change
Coin Vault To ensure proper maintenance of coin chip and token inventory
Satellite CageSSlot Booths To ensure compliance with internal controls and consistency with main cage procedures
TipsGratuities To ensure compliance with MGC regulations and internal controls
Cage AccessSecurity To ensure compliance with internal controls
Turnstile To ensure accuracy of turnstile count for admissions tax calculation
Ticketing To ensure comp Hance with internal controls and proper handling of stubs voids and issuance
MiscellaneousOther
Surveillance Tapes To review activity for hard soft and tip counts and drops to verify compliance with internal controls
Workpaper Preparation and To establish standardized procedures for MGC audit workpapers and audit reports Audit Reports
-
Missouri Gaming Commission 1996 AnnualReport - Page 22
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Audit Area
Monthly Financial Statement Review
Engagement Letters
Objective --shy
To perform a preliminary review ofmonthly financial statement information for proper completion of fmandal statement templates verification ofadjusted gross receipts to MGC reports and to detect any unusual items which justifY further review when conducting on-site audit
To give advance notification to each boat of the date and scope ofaudit being performed
Financial Statement Verification To determine consistency ofmonthly financial statement information submitted to MGC with boats general ledger system
Balance Sheet Accounts
CashCash Reserve Balance
Cash Receipts
Cash Disbursements
shy -- shy
To determine the existence consistency and fair presentation of the cash balance on the monthly fmancial statements
To determine the consistency and filir presentation of the cash balance on the monthly financial statements and the source of large cash receipts other than gaming revenue
___I
To determine the consistency and fair presentation of the cash balance on the monthly fmancial statements and to trace the outflow of large cash disbursements
i
I
--
AccountslN Notes Receivable
Accrued Admission and Gaming Tax Liability
Chip and Token Liability
Progressive Jackpot Liability
To determine the consistency and fair presentation of the accounts receivable andor notes receivable balance in the monthly fmancial statements
To determine the consistency and fair presentation of the accrued admissiongaming tax liability balance in the monthly financial statements
To determine the consistency and fair presentation of the chip and token liability balance in the monthly financial statements
To determine the consistency and fair presentation of the progressive jackpot liability balance in the monthly fmancial statements
---shy
Tips and Gratuities (Accrued Liability)
Customer Deposit Liability
Accounts Payable
Income Statement Accounts
Revenne - Table Games
To determine the consistency and fair presentation of the accrued tips and gratuities liability in the monthly fmancial statements
-lt ---- shy
To determine the consistency and fair presentation of the customer deposit liabilities in the monthly fiscal statements To determine the consistency and fair presentation ofaccounts payable balance in the monthly fmancial statements
--shy
To determine the consistency and fair presentation of table games revenue as reported to MGC daily and in the monthly fmandal statements
Revenue - Electronic Games To determine the consistency and fair presentation of electronic games revenue as reported to MGC daily and in the monthly financial statements
Missouri Gaming Commission 1996 Annual Report - Page 23
------------
---------
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Revenue - Admissions To detennine the consistency and fair presentation ofadmissions revenue as reported to MGC daily and in the monthly fmancial statements
Promotional Expense To determine that comps are properly recorded as expenses and not deducted from revenue in accordance with GAAP
Pre-Opening Costs To determine whether certain pre-opening and licensing costs are properly expensed or amortized over future periods in accordance with GAAP
Workpaper Preparation and Audit Reports To establish standardized procedures for MGC audit workpapers and audit reports
AissOllri Gamillg Commission 1996 Anllual Report - Page 24
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AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
c
Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
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~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
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~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
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$lot Machines 349
Introductioll The Missouri Gaming Commission was established in 1993 to regulate
riverboat gambling in Missouri In addition the Commission assumed the responsibility for regulating charitable bingo games on July I 1994
The five member Commission is charged with maintaining public confidence in legaliTed gambling and ensuring that no criminal elements are allowed to infiltrate licensed gaming operations It is important that the Commission do its job well so that public confidence in the gaming industry is established thereby allowing the industry to reach its goals ofeconomic development job creation and the promotion of Missouri as a major tourist attraction
As a state regulatory agency the Commission and its staffhold themselves to the highest ethical and professional standards and strive to conduct all business in a manner which maintains the public trust Pursuant to statute a strict Code ofEthics has been adopted prohibiting conflicts of interest and ex parte commtmications
The key regulatory responsibilities ofthe Commission are afollows
gt to conduct thorough background investigations on all key persons involved in the gaming operation including substantial owners management personnel key operational employees and suppliers
gt- to thoroughly investigate the finances ofapplicants and their key persons to determine if they have the fmancial resources and responsibility to meet their proposed obligations
gt to screen all occupational licensees including dealers slot attendants food and beverage servers security and surveillance personnel and all other employees who have access to the gaming area and investigate the background ofeach to ensure that the personnel operating the casino are of sufficient character to maintain the integrity of Missouri gaming
gt to photograph and fmgerprint each employee so as to maintain a complete and accurate database of boat personnel
gt to assign appropriate staff to each gaming operation to be present at all times when gaming is conducted Enforcement agents are charged with
ensuring tbat gaming is conducted in accordance with the Missouri gaming statute the rules and regulations of the commission and the operators own internal controls
gt to ensure that the safety of the passengers is guarded to conduct investigations of suspected wrongdoing and to receive complaints from customers
gt to review and audit the fmances of the gaming operation through the combined use ofCommission staff and independent public accounting firms that are retained by the licensee and approved by the Commission and
gt to monitor the financial integrity of gaming operators to ensure that Missouris financial interests are protected
Pursuant to statute the Commission has entered in to a Memorandum of Understanding with the Missouri State Highway Patrol to perfonn background investigations and provide enforcement personnel on the boats Under the tenus of this agreement the Patrol also provides enforcement personnel for the Division ofBingo
lbe Commission also has a Memorandum ofUnderstanding with the IRS to assist with the financial portion of the background investigation and to provide ongoing expertise with regard to the internal control procedures and the reporting and payment of taxes
At the end of 1996 ten riverboat casinos were operational at eight different developments in Missouri Sunnnaries of the operators fmancial reports that are required by the Commission are contained in Appendix C Harrahs Maryland Heights Inc and Players Maryland Heights Corporation are in the process of being investigated
Ibe Commission is also responsible for approximately 870 bingo licensees and bas successfully implemented the new requirement oflicensing hall providers In addition the commission has successfully executed the difficult task of implementing the new supplier-based bingo tax that took effect January 11995
MisWllri Gaming Commission 1996 Annual Report - Page 2
The Effect of the $500 Loss Limit on Competitiveness
For the past two years the commission bas reported that the $500 loss limit imposed by statute places Missouri riverboat gaming operations at a competitive disadvantage as opposed to similar operations in the adjoining states of Illinois and Iowa We opined at that time that the $500 loss limit contributes to a large decrease in state revenne
The commissions comments in prior years have been tempered by our knowledge that the riverboat gaming industry in Missouri was in its formative years and that little data was available to study After more than two years of Missouri operating history there is now adequate data from Missouri and its adjoining competitive states to expand our comments on the loss limits and state our findings with more precision
Negative Impact on Customer Satisfaction
The most frequent complaints to Commission staff and regulatory personnel in their contacts with the public are those dealing with the loss limit and the boarding restrictions The restriction on boarding is a method to enforce the loss limit
In addition the loss limit continues to be difficult to enforce Although the commission uses its best efforts to enforce the limit the customers desire to circumvent it consumes a tremendous amount of manpower Enforcement agents spend a significant amount of time dealing with violations and customer disputes Gaming boat sergeants regularly testifY that their most difficult problem was enforcing the $500 loss limit
The Loss Limit and the Problem Gambler
The loss limit has been described as a measure intended to deal with problem gaming However the success of the loss limit in addressing the problem ofcompulsive gambling remains undetermined
The primary argument for the $500 loss limit is that it helps deter the problem gambler Ifthe loss limit controlled the behavior of the problem gambler it would be a laudable requirement
Mental health professionals have told the commission that left untreated the problem gambler will find a way to gamble Whether it is by reboarding another cruise using some other persons loss limit card by crossing the river into another jurisdiction where there is no loss limit or gambling illegally the problem gambler will find a way to exercise the compulsion
The commission in relying on the treatment professionals has focused its battle against
problem gambling on education MissQun hasbeen()ne ofprevention and treatment Missouri has been one of the the most aggressive states most aggressive states in in c9mbatjpgproblem combating problem gambling Missouri is the first jurisdiction gambling Missouri is the to create a system whereby firstjlIrisdictiontomiddot create a problem gamblers can exclude systemwllerebyproblem themselves from casinos under threat ofarrest for trespassing gamblers can exclude In addition the commission has fhemselvesfrom casinos required operators to adopt
l)I1der threat of liITest forprograms to educate problem gamblers and has arranged trespassing~ funding for the recruitment and training oftreatment counselors who must be certified by the Missouri department ofmental health
The Loss Limit and the Typical Consumer
While treatment professionals tell the commission that loss limits do not inhibit the compulsive gambler Wall Street analysts who study the industry report that the loss limit has a negative impact on the normal consumer looking
Missouri Gaming Commission 1996 Annual Report - Page 3
for an entertainment experience Gaming is an entertainment industry In the entertainment industry the consumers demand a product that they can enjoy during their leisure time on their own terms
In Missouri there are consumers that indicate they dislike the product which they are being offered Many of these conswners will go out of their way even travel to another state to fmd a product that is more user friendly A cursory survey of the license plates in the parking lot I)fthe Casino Queen in East 8t Louis Illinois adequately demonstrates this point
Many Missouri gaming customers complain that the loss limit is inconvenient intrusive and that it detracts from the entertainment experience they seek at Missouri riverboats To have to account for ones spending during what is supposed to be a leisure activity strikes many as a personal encroachment The fact that this requirement is imposed and enforced by the government further aggravates this perception
Many Missouri consumers react to this restriction by taking their leisure time and tax dollars across the border to JIlinois Iowa or Kansas where there are no limits Furthermore it is apparent that the loss limit severely restricts Missouri riverboat operators from drawing tourist customers from other states Consumers choice as to how to spend their discretionary leisure dollars is evident in the competitive gaming arena
The Missouri gaming law was adopted by the people for its potential to generate economic development its ability to raise needed revenue for education and because it is a leisure activity that many want to pursue The loss limit detracts from aU of these goals While Missouri is currently the beneficiary ofa significant amount of capital investment and new job creation the continuing negative impact of the loss limit renders our economic future in this area uncertain Because of the loss limit Missouri riverboat operators are less competitive the state is losing money to its neighboring states there is a reduction in the number of available jobs and the number of riverboats that can successfully operate in Missouri is restricted
Tax revenues from gaming have benefited education While tax revenues from gaming are still growing after only two years Missouri has seen
~ -
How does the Loss Linlit Work
Pursuant to sect 313805 RSMo the commission is required to regulate the wagering structure to include a maximum loss of five hundred dollars per individual player per gambling excursion In order to enforce this provision the commission requires the following procedure
I In order to board an exctrrsion gambling boat a customer most stand in line to obtain a ptrrchase authorization coupon (scrip) This scrip must be signed by the customer in the presence of a licensed riverboat employee
2 After the customer receives the scrip heshe must get in another line to board the riverboat The scrip also serves as the customers boarding pass
3 The scrip which is time and date stamped must be printed with boxes of denominations ofwhich the total ofall boxes shall not exceed $500 These boxes shall be canceled by pennanent black marker at the time the patron presents the scrip in the riverboat casino lfthe scrip is not signed at the time of presentment or the date and time are not valid the scrip shall be confiscated from the customer If the scrip is valid and there are sufficient available boxes the cashier shall cancel the appropriate number of boxes with a pennanent black marker and complete the transaction
4 In a situation where a customer wishes to buy chips at a table the procedtrre is the same except that the dealer stops the game to execute the transaction On many occasions the use of the scrip to convert cash to chips will slow up the game This is another example of customer dissatisfaction arismg out of the process
Transcript Missouri gaming commission meeting November 25 1996 pages 8 II and 1~17 (Bruce Turner Salomon Brothers) pages 44-46 (Joe Coccimiglio Prodential Securities) pages 57-58 (Tom Ryan Bankers Trust) pages 65-68 (Larry Klatzkin Donaldson Lufkin ampJenrette) pages 84-90 (Richard Byrne Merrill Lynch)
Missouri Garning Commission 1996 Annual Report - Page 4
Win Per Admission CoJql8ring Mssouri and IIhlls
those revenues fall short ofpredictions Analysts from Wall Street tell the commission that we are exporting our tax dollars to other states In a recent commission meeting regarding market size a well respected gaming analyst opined that while Missouri supplies 73 ofthe gaming market in the S1 Louis area it captures only 50 ofthe revenue Z
Finally the gaming experience ofconsumers who do visit Missouri gaming operators is less desirable than the experience offered by competitive states Missouri is offering a more cumbersome and less enjoyable product The commission believes that the gaming policy for Missouri should retain the Missouri dollars in Missouri and attract dollars from other states Our current policy has the exact opposite result
The Costs 0Competitive Ineriority
Limiting the ability ofMissouri operators to offer a competitive entertainment product has direct economic costs which are easily illustrated Missouri gaming riverboats are larger more luxurious and offer more non-gaming amenities than competitors in neighboring states Yet they fail to compete in economic terms even though the bulk ofthe popUlation seeking the entertainment product lives in Missouri
For example the Casino Queen in East St Louis Illinois and the Alton Belle in Alton Illinois combined have less capital investment than St Charles Riverfront Station which has consistently expanded and reinvested since it opened in May 1994 In addition these Illinois gaming facilities consist primarily of parking facilities and the gaming casino They offer no non-gaming amenities other than limited restaurant facilities
In spite of these negative competitive factors the two Illinois facilities regularly outperform SCRS in spending per customer Similarly Illinois riverboats in the St Louis area fare significantly better in gaming revenue per square foot gaming revenue per position and admissions per square foot One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
pages 104-106 (John Maxwell Standard amp Poors) and pages 115-118 (Steve Schneider Stife Nicoaus) See also Minutes ofMissouri gaming commission meeting May 24 1995
Missouri Gaming Commission minutes November 25 1996page 27 quoting Jason Ader Bear Stems gaming analyst Examples ofsome of the non-gaming amenities included in Missouri projects include themed restaurants movie theaters botels meeting space retail shopping child
care centers micro breweries an 18th century railroad car restored to its original luxury fountain displays and theaters for live entertainment
Missouri Gaming Commission 1996Annual Report - Page 5
2
The Problem is Clear - How does Missouri Address the Problem
Missouri statutes require the commission to report annually to the Governor and the General Assembly on the competitive state of the gaming industry in Missouri For two years the commission has advised the General Assembly that we believe that there could be a problem with the structure of the gaming industry but that the data is incomplete However we now fmd the data to be clear and compelling A problem exists in the Missouri gaming industry -- the gaming product is not competitive with our neighboring states This will create negative economic results and lower tax revenues
Due to navigational safety constraints most Missouri riverboats do not cruise It has been suggested by gaming analyst and by legislation filed in prior years that the elimination of the boarding time restrictions will help Missouri gaming operators economically and be more consumer friendly The commission believes that the current boarding time restrictions are detrimental to the consumer and make little sense since the riverboats are not leaving the dock They are an artificial barrier to entry and participation Yet the boarding times are essential to enforcing the loss limit A change in the statutes which
3(()
21)Q
i a
OIl
eliminates the boarding times but maintains the loss limit would make the enforcement of the loss limit impossible
Findings
Current Missouri statutes are not competitive with our adjoining states Consequently Missouri is at a competitive disadvantage Repealing the loss limit would make the Missouri operators more competitive Without this change the Missouri gaming industry will continue to be at a competitive disadvantage and over time will decline rather than prosper
Conclusioll
Section 313837 RSMo requires the commission to report annually to the general assembly on the effects ofthe loss limit on the competitiveness of the gaming industry in Missouri The findings above are intended to satisfy this statutory mandate The enactment of any changes in policy as a result of these findings are obviously the purview of the General Assembly and the Governor
Missouri Gaming Commission 1996Annual Report - Page 6
Effect of Tax Rate on Competitiveness
The Missouri tax rate currently mirrors that of its principle competitor the State of Illinois The MissourilIlIinois tax rate consists of a 20 base tax on adjusted gross receipts (AGR) In Missouri 10 of that tax (or 2 of AGR) is a local tax imposed by state statute The funds collected from this local tax are allocated to the home dock city or county fur services necessary for the safety of the public visiting the excursion gambling boat The remaining tax on AGR (18 of gross receipts) is placed in the Gaming Proceeds for Education Fund and may be spent only for public elementary secondary and higher education
Iowa has a graduated tax tbat caps out at 20 for adjusted gross receipts over $3 million Because the graduated rate reaches its cap at the relatively low ceiling 0pound$3 million Iowas effective tax rate is not significantly
The state of Kansas has recently allowed casinos operated by native American Indians These casinos are not taxed
For your future reference a table is contained in Appendix B setting forth the tax rate in each gaming jurisdiction and the regulatory restrictions that are imposed The chart below is a generalization of the tax rates in the various gaming jurisdictions Because of the subtleties of each states tax law it is difficult to precisely chart the rates For a defmitive explanation of the tax rates refer to the aforementioned chart in Appendix B
The Commission does not feel that the 20010 tax rate currently places our licensees at a competitive disadvantage The commission will continue to monitor the performance of all licensees and report developments as they occur
different from that of Missouri and Illinois
Licensees are also responsible for a $2 admission fee for each person who participates in a gaming excursion One dollar of this fee is remitted to the home dock city or county The remaining dollar is used to fund the regulatory activities of the Commission No general revenue is used for any activity of the Commission In addition to the $2 admission fee the gaming boat is billed monthly for the full cost of the enforcement agents assigned to the boat Either through fees or direct billing the gaming operators pay for the full cost of their own regulation
The State of Mississippi assesses a tax of 12 on AGR Unlike Illinois who is limited to licensing 10 gaming operations Mississippi has not limited the number of casinos licensed but has licensed all applicants that have been found suitable The Missouri law does not specifically limit the number of licenses that may be issued but places this responsibility in the hands of the Commission through a best interests of Missouri standard
Comparison of Gaming Tax Rates TaxonAGR
25
20 m ma )(
15 IImTaxRaeJ ~ 10
5
0 NV NJ LA
----------------------------------
MS IL IN IA MO CO so State
Missouri Gamilg Commission 1996Annual Report - Page 7
Missouri Gaming Commission Contributions to Education
Fiscal Year 1995
Gaming Proceeds for Education $ 5661628204
Bingo Tax Proceeds for Education $ 625370396
FY95 Tax Revenue from Gaming $6286998600
Fiscal Year 1996
Gaming Proceeds for Education $9973032067
Bingo Tax Proceeds for Education $ 468417852
FY 96 Tax Revenue from Gaming $10441449919
Total Tax Revenue from Gaming 516728448519
Does the GamblingMoneYiReallyGoo Fund Education
This may be the question inostfrequently asked ofpublic officials The simple answer is yes it does Pursuant to aconstitution~lamendntent passed by theGeneraIAssemblyasSJk 20 in 1992 andapproved bythe voters in a subsequent general electionmiddotall state tax money derived from the proceeds ofgamblirigisspent on education
The text ofthisconstitutional provision contained inArtiete 1lISection 39(d) reads as follows
All state revenues derived from the conduct ofaUgaming activities as are now or hereafter authorized by thiscomtitution orbyJaw unless otherwise provided bylaw on the ~ffectivedateofthissectionshallbemiddot appropriated beginoingJuly 1193solely for the pl1blic instittitions of elementary secondary and higheredueatioll and shaH~ot be included within the defmitionoftotal staterevenues in sectioid 7ofarticle X of this constitution
The tax revenues derivedfimnthe proceeds ofgambling foifiscalyeart998 are estimated to be $155 millionmiddot In ~d~itionto thegamblingm~neymiddot traditional stategeneralrevelluefundingfor publicschoo~ bas Uicreased every year since riverboatgillllblingwasenacted Thetotalstatebudget for educationwhichrepresents approximately 50of the average local school budget is $2965 billion Theg~~lIDgnlOney was designedtoslipplel1lent not replace the primatySufCeS ofpqb lie school fuDding[befunds derived from gambling have be~nusedfortheOiltstandingSchools TtilStFundthemiddotmiddot SchoolDistrict Bond Fund fotmainteniuiceandcapital exp~nclilures for public colleges and universities and to supplcentmenttheschool foundlltionmiddot formula
Missouri Gaming Commission 1996 Annual Report - Page 8
for an entertainment experience Gaming is an entertainment industry In the entertainment industry the consumers demand a product that they can enjoy during their leisure time on their own terms
In Missouri there are consumers that indicate they dislike the product which they are being offered Many of these conswners will go out of their way even travel to another state to fmd a product that is more user friendly A cursory survey of the license plates in the parking lot I)fthe Casino Queen in East 8t Louis Illinois adequately demonstrates this point
Many Missouri gaming customers complain that the loss limit is inconvenient intrusive and that it detracts from the entertainment experience they seek at Missouri riverboats To have to account for ones spending during what is supposed to be a leisure activity strikes many as a personal encroachment The fact that this requirement is imposed and enforced by the government further aggravates this perception
Many Missouri consumers react to this restriction by taking their leisure time and tax dollars across the border to JIlinois Iowa or Kansas where there are no limits Furthermore it is apparent that the loss limit severely restricts Missouri riverboat operators from drawing tourist customers from other states Consumers choice as to how to spend their discretionary leisure dollars is evident in the competitive gaming arena
The Missouri gaming law was adopted by the people for its potential to generate economic development its ability to raise needed revenue for education and because it is a leisure activity that many want to pursue The loss limit detracts from aU of these goals While Missouri is currently the beneficiary ofa significant amount of capital investment and new job creation the continuing negative impact of the loss limit renders our economic future in this area uncertain Because of the loss limit Missouri riverboat operators are less competitive the state is losing money to its neighboring states there is a reduction in the number of available jobs and the number of riverboats that can successfully operate in Missouri is restricted
Tax revenues from gaming have benefited education While tax revenues from gaming are still growing after only two years Missouri has seen
~ -
How does the Loss Linlit Work
Pursuant to sect 313805 RSMo the commission is required to regulate the wagering structure to include a maximum loss of five hundred dollars per individual player per gambling excursion In order to enforce this provision the commission requires the following procedure
I In order to board an exctrrsion gambling boat a customer most stand in line to obtain a ptrrchase authorization coupon (scrip) This scrip must be signed by the customer in the presence of a licensed riverboat employee
2 After the customer receives the scrip heshe must get in another line to board the riverboat The scrip also serves as the customers boarding pass
3 The scrip which is time and date stamped must be printed with boxes of denominations ofwhich the total ofall boxes shall not exceed $500 These boxes shall be canceled by pennanent black marker at the time the patron presents the scrip in the riverboat casino lfthe scrip is not signed at the time of presentment or the date and time are not valid the scrip shall be confiscated from the customer If the scrip is valid and there are sufficient available boxes the cashier shall cancel the appropriate number of boxes with a pennanent black marker and complete the transaction
4 In a situation where a customer wishes to buy chips at a table the procedtrre is the same except that the dealer stops the game to execute the transaction On many occasions the use of the scrip to convert cash to chips will slow up the game This is another example of customer dissatisfaction arismg out of the process
Transcript Missouri gaming commission meeting November 25 1996 pages 8 II and 1~17 (Bruce Turner Salomon Brothers) pages 44-46 (Joe Coccimiglio Prodential Securities) pages 57-58 (Tom Ryan Bankers Trust) pages 65-68 (Larry Klatzkin Donaldson Lufkin ampJenrette) pages 84-90 (Richard Byrne Merrill Lynch)
Missouri Garning Commission 1996 Annual Report - Page 4
Win Per Admission CoJql8ring Mssouri and IIhlls
those revenues fall short ofpredictions Analysts from Wall Street tell the commission that we are exporting our tax dollars to other states In a recent commission meeting regarding market size a well respected gaming analyst opined that while Missouri supplies 73 ofthe gaming market in the S1 Louis area it captures only 50 ofthe revenue Z
Finally the gaming experience ofconsumers who do visit Missouri gaming operators is less desirable than the experience offered by competitive states Missouri is offering a more cumbersome and less enjoyable product The commission believes that the gaming policy for Missouri should retain the Missouri dollars in Missouri and attract dollars from other states Our current policy has the exact opposite result
The Costs 0Competitive Ineriority
Limiting the ability ofMissouri operators to offer a competitive entertainment product has direct economic costs which are easily illustrated Missouri gaming riverboats are larger more luxurious and offer more non-gaming amenities than competitors in neighboring states Yet they fail to compete in economic terms even though the bulk ofthe popUlation seeking the entertainment product lives in Missouri
For example the Casino Queen in East St Louis Illinois and the Alton Belle in Alton Illinois combined have less capital investment than St Charles Riverfront Station which has consistently expanded and reinvested since it opened in May 1994 In addition these Illinois gaming facilities consist primarily of parking facilities and the gaming casino They offer no non-gaming amenities other than limited restaurant facilities
In spite of these negative competitive factors the two Illinois facilities regularly outperform SCRS in spending per customer Similarly Illinois riverboats in the St Louis area fare significantly better in gaming revenue per square foot gaming revenue per position and admissions per square foot One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
pages 104-106 (John Maxwell Standard amp Poors) and pages 115-118 (Steve Schneider Stife Nicoaus) See also Minutes ofMissouri gaming commission meeting May 24 1995
Missouri Gaming Commission minutes November 25 1996page 27 quoting Jason Ader Bear Stems gaming analyst Examples ofsome of the non-gaming amenities included in Missouri projects include themed restaurants movie theaters botels meeting space retail shopping child
care centers micro breweries an 18th century railroad car restored to its original luxury fountain displays and theaters for live entertainment
Missouri Gaming Commission 1996Annual Report - Page 5
2
The Problem is Clear - How does Missouri Address the Problem
Missouri statutes require the commission to report annually to the Governor and the General Assembly on the competitive state of the gaming industry in Missouri For two years the commission has advised the General Assembly that we believe that there could be a problem with the structure of the gaming industry but that the data is incomplete However we now fmd the data to be clear and compelling A problem exists in the Missouri gaming industry -- the gaming product is not competitive with our neighboring states This will create negative economic results and lower tax revenues
Due to navigational safety constraints most Missouri riverboats do not cruise It has been suggested by gaming analyst and by legislation filed in prior years that the elimination of the boarding time restrictions will help Missouri gaming operators economically and be more consumer friendly The commission believes that the current boarding time restrictions are detrimental to the consumer and make little sense since the riverboats are not leaving the dock They are an artificial barrier to entry and participation Yet the boarding times are essential to enforcing the loss limit A change in the statutes which
3(()
21)Q
i a
OIl
eliminates the boarding times but maintains the loss limit would make the enforcement of the loss limit impossible
Findings
Current Missouri statutes are not competitive with our adjoining states Consequently Missouri is at a competitive disadvantage Repealing the loss limit would make the Missouri operators more competitive Without this change the Missouri gaming industry will continue to be at a competitive disadvantage and over time will decline rather than prosper
Conclusioll
Section 313837 RSMo requires the commission to report annually to the general assembly on the effects ofthe loss limit on the competitiveness of the gaming industry in Missouri The findings above are intended to satisfy this statutory mandate The enactment of any changes in policy as a result of these findings are obviously the purview of the General Assembly and the Governor
Missouri Gaming Commission 1996Annual Report - Page 6
Effect of Tax Rate on Competitiveness
The Missouri tax rate currently mirrors that of its principle competitor the State of Illinois The MissourilIlIinois tax rate consists of a 20 base tax on adjusted gross receipts (AGR) In Missouri 10 of that tax (or 2 of AGR) is a local tax imposed by state statute The funds collected from this local tax are allocated to the home dock city or county fur services necessary for the safety of the public visiting the excursion gambling boat The remaining tax on AGR (18 of gross receipts) is placed in the Gaming Proceeds for Education Fund and may be spent only for public elementary secondary and higher education
Iowa has a graduated tax tbat caps out at 20 for adjusted gross receipts over $3 million Because the graduated rate reaches its cap at the relatively low ceiling 0pound$3 million Iowas effective tax rate is not significantly
The state of Kansas has recently allowed casinos operated by native American Indians These casinos are not taxed
For your future reference a table is contained in Appendix B setting forth the tax rate in each gaming jurisdiction and the regulatory restrictions that are imposed The chart below is a generalization of the tax rates in the various gaming jurisdictions Because of the subtleties of each states tax law it is difficult to precisely chart the rates For a defmitive explanation of the tax rates refer to the aforementioned chart in Appendix B
The Commission does not feel that the 20010 tax rate currently places our licensees at a competitive disadvantage The commission will continue to monitor the performance of all licensees and report developments as they occur
different from that of Missouri and Illinois
Licensees are also responsible for a $2 admission fee for each person who participates in a gaming excursion One dollar of this fee is remitted to the home dock city or county The remaining dollar is used to fund the regulatory activities of the Commission No general revenue is used for any activity of the Commission In addition to the $2 admission fee the gaming boat is billed monthly for the full cost of the enforcement agents assigned to the boat Either through fees or direct billing the gaming operators pay for the full cost of their own regulation
The State of Mississippi assesses a tax of 12 on AGR Unlike Illinois who is limited to licensing 10 gaming operations Mississippi has not limited the number of casinos licensed but has licensed all applicants that have been found suitable The Missouri law does not specifically limit the number of licenses that may be issued but places this responsibility in the hands of the Commission through a best interests of Missouri standard
Comparison of Gaming Tax Rates TaxonAGR
25
20 m ma )(
15 IImTaxRaeJ ~ 10
5
0 NV NJ LA
----------------------------------
MS IL IN IA MO CO so State
Missouri Gamilg Commission 1996Annual Report - Page 7
Missouri Gaming Commission Contributions to Education
Fiscal Year 1995
Gaming Proceeds for Education $ 5661628204
Bingo Tax Proceeds for Education $ 625370396
FY95 Tax Revenue from Gaming $6286998600
Fiscal Year 1996
Gaming Proceeds for Education $9973032067
Bingo Tax Proceeds for Education $ 468417852
FY 96 Tax Revenue from Gaming $10441449919
Total Tax Revenue from Gaming 516728448519
Does the GamblingMoneYiReallyGoo Fund Education
This may be the question inostfrequently asked ofpublic officials The simple answer is yes it does Pursuant to aconstitution~lamendntent passed by theGeneraIAssemblyasSJk 20 in 1992 andapproved bythe voters in a subsequent general electionmiddotall state tax money derived from the proceeds ofgamblirigisspent on education
The text ofthisconstitutional provision contained inArtiete 1lISection 39(d) reads as follows
All state revenues derived from the conduct ofaUgaming activities as are now or hereafter authorized by thiscomtitution orbyJaw unless otherwise provided bylaw on the ~ffectivedateofthissectionshallbemiddot appropriated beginoingJuly 1193solely for the pl1blic instittitions of elementary secondary and higheredueatioll and shaH~ot be included within the defmitionoftotal staterevenues in sectioid 7ofarticle X of this constitution
The tax revenues derivedfimnthe proceeds ofgambling foifiscalyeart998 are estimated to be $155 millionmiddot In ~d~itionto thegamblingm~neymiddot traditional stategeneralrevelluefundingfor publicschoo~ bas Uicreased every year since riverboatgillllblingwasenacted Thetotalstatebudget for educationwhichrepresents approximately 50of the average local school budget is $2965 billion Theg~~lIDgnlOney was designedtoslipplel1lent not replace the primatySufCeS ofpqb lie school fuDding[befunds derived from gambling have be~nusedfortheOiltstandingSchools TtilStFundthemiddotmiddot SchoolDistrict Bond Fund fotmainteniuiceandcapital exp~nclilures for public colleges and universities and to supplcentmenttheschool foundlltionmiddot formula
Missouri Gaming Commission 1996 Annual Report - Page 8
middot Where Does All the middot Gaming Tox Money Go
Orgallizationai Structure OFFICE OF THE EXECUTIVE DIRECTOR
Thomas J Irwin was named Executive Director by the Commission on October 21 1993 Mr Irwin came to the Commission after serving 3 years as Executive Assistant to St Louis County Executive Buzz Westfall Mr Irwin is a graduate ofHarvard University where he earned his masters degree from the Kennedy School ofGovernment He has served as the Chief Budget Officer for the Boston Police Department and was the Executive Assistant for Intergovernmental Affairs for St Louis mayor Vince Schoemehl from 1982 to
1988 Mr Irwin is a veteran of the United States Marine Corps having served
in Vietnam in 1968
i i Mr Irwin is responsible for the day-to-day operations of the
Commission He supervises all staff activities and reports to the Commission Among the staff positions reporting to the Director is Public Information
i K Officer Harold Bailey Mr Bailey is responsible for organizing and
distributing all public documents and reports
I In addition there are six primary functions of the Commission that
it have been divided into sections that report directly to Mr Irwin including
Administration Audit Bingo Corporate Securities Enforcement amp
t ~
Investigations and Legal amp Legislative Affairs
I ADMINISTRA110N
The administration section headed by Deputy Director Deborah A Ferguson provides a range of administrative financial and technical services to
help the Commission accomplish its goals The administrative services can be divided into the following functions accounts payable accounts receivable purchasing data processing budget facility leasing and human resources Accomplishments of the administration section would not have come to pass without the assistance ofChiefAccountant Denny Hodges Persomlel Officer Vicki Glenn Records Administrator Michael Shelhnan and Data Processing Manager John Bluma The administration staff benefited from the addition ofTen a Smith Diane Riddle and Mike Brizendine
The administration section continues to be a focal point of activity with the continued growth of the gaming industry l1te highlight of this past year was the relocation of the Jefferson City office Plaooing and design for the Jefferson City office began in 1995 and culminated with the move in September 1996 Highlights of the new building include a hearing room to conduct Commission meetings adequate file space to house the Commission
records that will be relocated from the St Louis office and the merging of the Bingo and Gaming staff into one facility to enhance coordination ofdaily activities
More specifically the duties of this section are as follows
~ Billing licensees for the processing and aoouallicenses issued to Level One and level Two Occupational employees that work for each riverboat To date there are approximately 9000 licensed employees
~ Billing licensed operators for the full cost of the enforcement agents assigned to each boat
~ Maintaining all Commission fmancial and personnel records which includes the monthly reconciliation of the Gaming Commission fund balance and processing aU payments made by the Commission
gt Preparation and implementation of the Commissions annual budget to ensure compliance with legislative intent
~ Handling all personnel matters and employee training and establishing and implementing written office policies for Commission staff
gt Preparation of fiscal notes to provide estimates to proposed legislation
Data Processiltg
The Data Processing section headed by John Blunm had a busy year in 1996 which included major systems developments as well as the daunting task of moving the Jefferson City office to a new location Some ofthe accomplishments of this important section include
~ Opening new commission offices for its agents at licensed premises
~ Moving the Jefferson City offices of the Riverboat Gaming and the Bingo workgroups to the new location This involved moving all computer workstations servers communications processors and printers to the new
Missouri Gaming Commission 1996 Annual Report - Page 10
building The two separate networks were consolidated into one large network that provides email between all members ofthe two sections for the fIrSt time and allows sharing of peripheral equipment such as laser printers
gt Final testing and implementation ofa billing system for enforcement billing to reimburse the state for expenses related to regulating the casino gaming industry
~ Automation ofannual MULES checks required of the 9000 plus gaming occupational license holders eliminating hundreds ofhours ofdata entry time
gt Upgrade of the physical inventory system to provide more complete reports and to track add-on costs to major inventory items
gt Design and development ofan occupational license history tracking system to provide a complete picture of license payments changes in license status duplicate badges issued and changes in employment status
gt Enhancing existing systems to meet new statutes and rules and regulations
AUDET
The audit section is responsible for the critical function ofensuring that the operators pay their taxes promptly and accurately This section headed by Jolm Davis former Internal Revenue Service Manager developed the Commissions tax remittal system that allows the Commission to capture tax remittance data on a daily basis The operators returns are audited by compliance audit siaffheaded up by senior accountant Kara Hardaway
The audit section also develops audit programs reviews and approves each boats system ofintemal controls conducts on-site performance audits reviews the quarterly CPA audits ofAdjusted Gross Receipts Tax and Admission Tax and reviews all internal audit reports prepared by the casinos internal audit staff
During 1996 the audit section revised Minimum Internal Control Standards that all operators must meet These standards were developed by the
audit staff after a lengthy review process that involved input from the IRS enforcement officers and industry experts
The audit section also implemented a system for tracking and depositing all non-tax revenue received from applicants such as application fees from applicants and reimbursements for Commission services
A summary ofsome ofthe audit sections programs and objectives is contained on page 22
BINGO
The Bingo Division is comprised ofthree separate sections which include the Administration Licensing Audit and Enforcement The Bingo Division Supervisor is Ron Pleus The Audit Section Supervisor is Randall Cahill and the Enforcement Section Supervisor is Sergeant Dwight Franklin The bingo statutes have been revised significantly in recent years requiring many administrative changes to occur within the Division Among the more daunting projects were the establishment ofa new licensing category for hall providers and the implementation ofa new supplier-based tax Specific duties within the three sections of the Bingo Division and the recent statntory changes are briefly outlined below
AdministrativeILicensiog Section - This section is responsible for the processing ofall correspondence and the licensing and maintenance ofover 1500 operator licensees which include all regular and special event bingo operators licenses and 200 hall providers annually This section deposits and records an tax and license receipts received on a daily basis This unit maintains a data base of over 31000 records ofindividuals that are involved in the management conduct andor operation ofbingo games and 3000 records of individuals involved as owners and officers of licensed Hall Providers Currently this staff consist ofthree employees Jane Bax Pam Murphy and Tina Freese In conjunction with the data processing staff the administrative section has developed an automated renewal application system which became fully operational January 1996 This system simplifies the renewal process for the licensee and eliminates wasted steps and duplicate information The system has proven to be a tremendous time saver for the not-for-profit volunteer organizations who are required to file renewals and also helps to reduce the staffmg cost and other administrative cost for the Division
Missouri Gaming Commissioll 1996 Allnual Report ~ Page 11
Audit Section - This section is responsible for the timely audit of all Bingo Product Manufacturers and Suppliers and assisting the Enforcement Section with oil-site inspections of bingo operators The audit staff has developed a comprehensive Manufacturer and Supplier audit procedure manual and has developed procedures for the inspection ofbingo operators The procedures for the inspection of bingo operators are used by both the Enforcement and Audit Staffs The audit section has audited all of the licensed Manufacturers and Suppliers during fiscal year 1996 These audits resulted in over $32000000 in unreported taxes and penalties The auditors also assisted enforcement with inspections and investigations of unlicensed suppliers and operators The section conducts on-site inspections of formerly licensed suppliers to determine ifthe products in inventory were being disposed of in accordance with the statutes The audit staff also assists the administrative staff in auditing the operators quarterly repom
Enforeement Section - This section is headed by Sgt Dwight Franklin a 17 year veteran ofthe Missouri Highway Patrol Sgt Franklin has six (6) officers assigned to the enforcement section Their duties include background investigations of all Manufacturers and Suppliers to include all the key personnel in those companies These investigations include criminal checks fmancial checks past employment history and all litigation involving the applicant In addition the enforcement section is responsible for investigating complaints on the licensed bingo organizations The complaints range from minor rule violations to thefts of large sums of money Complaints are received on a daily basis and are investigated on the basis of severity location and available manpower An additional duty of the Enforcement Section is to complete background investigations on all new potential employees of the Gaming Commission
CORPORATE SECURITIES AND FINANCE
The Commission has established a Section of Corporate Securities and Finance to address the challenge ofregulating the complex fmancial corporate structuring and contractual transactions involving publicly traded and privately held gaming companies This section is comprised of staff trained in legal accounting and business matters to perform examinations of these transactions
The suitability issues examined by the Corporate Securities and Finance Section include complex fmancial and legal suitability issues such as fmancial soundness corporate control legal compliance and procedural licensing issues
The sections examinations are coordinated closely with the Enforcement Division for background investigations and disciplinary matters
Typical transactions that are examined by the section include mergers and acquisitions public debt and equity issuances and private financings such as bank loans and credit facilities The goal of this new section is to provide the Commission with more thorough and sophisticated investigations and analysis of the suitability ofgaming companies and with a uniform system for providing this analysis on corporate securities and fmance issues Through this section the Commission hopes to identifY suitability problems ofapplicants and licensees earlier and more efficiently and to identifY plan for and possibly even avoid potential business closures of licensees due to fmandal matters
The Corporate Securities and Finance Section is headed by the Commissions General Counsel Greg Orner who reports directly to the Executive Director on corporate securities and finance matters The section also includes a Chief Financial Analyst position to be filled soon which will oversee the work ofthe fmancial staff examining the corporate secwities and fmance transactions
The Conunissions Financial Manager Pam Brown haS handled the fmandal analysis of the reported transactions up to now and will continue to perfonn many of the more complex transaction examinations and oversee the work of an accountant Pam Wheelis and a fmancial analyst (planned to be added next year) who are also assigned to the section
ENFORCEMENT
Enforcement for the Missouri Gaming Commission is provided by officers of the Missouri State Highway Patrol and agents of the Internal Revenue Service by way of Memorandums ofUnderstanding which set forth the responsibilities ofeach entity
The enforcement section is headed by Mel Fisher former Superintendent of the Highway Patrol The Gaming Division ofthe Highway Patrol is headed by Captain Dwight Hartung There are seventy-seven officers assigned to the Gaming Division and an additional six officers assigned to the Bingo Enforcement Unit
Some of the advantages ofusing Highway Patrol Officers as gaming agents include
JtfisSOUli Gaming Commission 1996 Annual Report - Page 12
the staff assigned are trained specialists in law enforcement and investigations thus saving the Commission the time effort and expense of recruitment and training
because the agents are licensed law enforcement officers they command immediate respect when interacting with licensees and customers aboard a riverboat as well as when they are in a foreign jurisdiction conducting an investigation
~ the Commission feels that it is important to rotate enforcement staff aboard the various boats this process is much easier with seasoned law enforcement officers who are used to being rotated between assignments as well as in and out of the gaming division
gt provides the ability to access sensitive law enforcement information from other jurisdictions
gt their experience in conducting investigations and handling emergency situations has proven invaluable
The Commissions background investigation units consist of three Highway Patrol Officers and one IRS agent The background investigations conducted by the Missouri Gaming Commission are thorough and take approximately four months to complete if no unusual complications or delays emerge The Commission not only investigates the finances and activities of the company and all its key people but traces the source ofall their funds to ensure that no criminal elements are funding the operation from behind the scene An outline that provides a sketch of a typical background investigation is contained on page 20
LEGAL amp LEGISLATIVE AFFAIRS
The legal amp legislative affairs section is responsible for all legal matters presented to the commission prior to litigation Any litigation involving the commission is handled by the Attorney Generals office In addition this section which is headed by Deputy Director Kevin Mullally develops and drafts legislation endorsed by the commission as well as all rules and regulations Moreover the legal section manages an administrative appeals docket where Mullally serves as Hearing Officer
Greg Orner serves as the commissions general coWlSel and works closely with the enforcement staff reviewing incident reports investigative issues and possible disciplinary actions In addition Mr Omer heads the Corporate Securities section
Some of tbe otber responsibilities of the legal section include
~ Drafting all resolutions for all commission actions and
gt preparing disciplinary complaints and denial orders for proposed action against licensees and
gt conducting quasi-legislative hearings on issues such as continuous docking and boat design and
gt providing legal research services and
gt organizing and maintaining records ofall official commission actions and commission policies and
gt handling inquiries from legislators constituents and other state regulatory agencies
The commissions legal staff is supported by paralegal Heather Grefrath and legal secretary Susan Sundermeyer This support staff is critical to daily operations ofthe legal section and is particularly valuable in the sections role in preparing and managing the rules and regulations all documents necessary for commission meetings and all documents declaring commission policy
In 1997 the legal section will be augmented with the addition ofstaff attorney Robert Little
PENDING LITIGATION
The Missouri Gaming commission denied one occupational license in 1994 thirteen occupational licenses in 1995 and thirty-five occupational licenses in 1996 Each aplicant is presumed WlSuitable and has the burden of proof to prove his or her suitability to the Conunssion An individual may request a hearing to attempt to prove suitability to the Commission by serving
Missouri Gaming Commission 1996Annual Reporl- Page 13
such a request on the commissions Executive Director The following is a list of pending litigation
Petitioner Venue
Bingo Systems amp Supply AHC Cape Girardeau Elks Lodge 639 AHC Cape Girardeau VFW Post 3838 AHC Edwin Pete Rhodes AHC Ideal Bingo Supplies Inc AHC Mary Cracchiolo AHC Maureen L Scott AHC Meramec-Amold Eagles Auxiliary AHC Myron B Carter Sr AHC Pan-Education Institute AHC Raymond J Drury AHC Raytown Women of Today AHC Sandra Termini AHC Stanley L Turner AHC Missouri Gaming Co ~Disc Action MGC Harrahs -Disciplinary Action MGC Boyd Kansas City Inc -Disc Action MGC Jeffery Koester -Denied License MGC Gary Franklin -Denied License MGC Mark Zwolle -Disciplinary Action MGC Anthony Civella -Exclusion MGC Peter Simone -Exclusion MGC Yolanda Nettles MGC Tracy Anderson MGC Carrie Gentry MGC Jimmie B Carsey MGC Cape Girardeau Elks amp VFW Circuit Court ofCape Girardeau County MGC v Veterans Commission
st Louis Public Schools Missouri Supreme Court W Todd Akin v MGC Missouri Supreme Court William D Cmmnisano Jr Missouri Court ofAppeals-Western District Pen-Yan Investment Inc Missouri Court ofAppeals-Western District
SUMMARY OF PENDING LITIGATION
There are fourteen bingo cases pending in the Administrative Hearing Commission
There are three disciplinary cases at the Commission level against gaming licensees pending the outcome ofPen-Yon Investment Inc v Boyd Kansas City Inc and MGC
Pen-Yon Investment Inc v Boyd Kansas City Inc MGC is pending in the Missouri Court ofAppeals Western District regarding disciplinary action taken against Boyd for associating in business affairs with a person who has a felony police record The Commission imposed a fine against Boyd and prohibited Boyd from collecting or distributing any funds from the machines under its service agreement with Pen-Yan
MGC v Missouri Veterans Commission St Louis Public Schools is pending in the Missouri Supreme Court regarding funds received from fmes imposed by the Commission
In W Todd Akin et 01 v MGC the Circuit Court ofCole County ruled in favor of the commission on summary judgment The suit challenges the Commissions authority to grant or deny Harrahs Maryland Heights Corp and Players Maryland Heights LP a license for a continuously docked excursion gambling boat within a man-made basin filled by water from the Mississippi River The petitioners have appealed and the matter is now before the Missouri Supreme Court
Cape Girardeau Elks Lodge et aI v MGC is pending in the Circuit Court of Cape Girardeau County regarding the Commissions decision to suspend the Cape Girardeau Elks Lodge bingo license
In the Matler oWilliam D Cammisano Jr there is an appeal pending in the Missouri Court ofAppeals Western District regarding the Commissions decision to place Mr Cammisano on its List of Excluded Persons
MISSOURI GAMING COMMISSIONS EXCLUSION LIST
The Missouri Gaming Commissionplaced two individuals in 1994 two individuals in 1995 and two individuals in 1996 on the commissions Exclusion List Placement of these individuals on the Exclusion List has been based on prior convictions
As a result of placement on the Exclusion List each individual shall not be permitted eoby into any portion of a riverboat gaming operation within the state ofMissouri and shall be ejected ifdiscovered on such premises Furthermore Excluded Persons shall be prohibited from contact of any kind with Missouri riverboat gaming operations Persons placed on the Listmay file a written petition with the Commission to request a hearing to have their name
JlrJissOIlri Gaming Commission 1996 Annual Report - Page 14
removed from the Exclusion List Currentlyone individual has appealed to the Western District of Missouri and two otbers are pending hearings by the Missouri Gaming Commission
MISSOURI GAMING COMMISSIONS DISCIPLINARY ACTIONS AGAINSTOCCUPATIONAL LICENSEES
The Missouri Gaming Commission has taken disciplinary action against twenty-eight occupational licensees as of September 30 1996 Preliminary
Orders for Disciplinary Action set forth statements of fact that support the proposed disciplinary action and the regulatory and statutory sections involved Individuals may request a hearing by serving such a request on the Commissions Executive Director Currently four individuals have sought hearings before the Commission one ofwhich is stm pending
Occupational License Denials 1994-1996
40
l 30
lt0 c Q)
0 lt5 20 i-Q) 0 E ~ 10
o Year Licenses 1994 1995 1996 IiiI Licenses Denials 1 13 35
Voluntary Exclusions On December 30 1996 after six months of research and consultation the
commission established a unique program to combat problem gambling The List of Disassociated Persons is the result of many months ofconsultation with treatment professionals that help problem gamblers The program allows problem gamblers to exclude themselves from Missouri riverboat casinos under the threat ofarrest for trespassing
In exchange for agreeing not to patronize Missouri riverboat casinos the problem gambler is removed from all casino mailing lists and direct marketing promotions In addition the operators are required to deny persons on the List check cashing privileges and must take away their VIP or players club card
Treatment professionals have advised the commission that the only way for a problem gambler to get help is to admit that heshe has a problem and to accept personal responsibility for that problem by seeking treatment
The Disassociated Persons program is a valuable tool in addressing problem gambling because it requires the individual to admit to having a gambling problem to agree to seek treatment and stay away from gambling casinos Furthermore it includes severe consequences if the problem gambler succumbs to the temptation to gamble Moreover it offers some protection to the problem gambler from the marketing promotions that encourage people to visit the casino properties
The program operates in the following manner
~ The problem gambler must obtain an application for placement on the List ofDisassociated Persons from the commission
~ the application contains various information about the individual an admission that the person is a problem gambler and agrees to stay off Missouri riverboats and seek treatment an authorization to release this information to riverboat operators as well as a Waiver releasing the commission and the licensee from any liability associated with enforcing the rules of the program
~ the application must be personally presented to a commission agent at which time the information is verified and the rules of the program are explained
~ the application is a closed record and its contents may only be disclosed to necessary commission and riverboat personnel
~ the commission considers all applications in closed session
~ once a person is placed on the List heshe cannot petition for removal After consulting with treatment professionals the commission concluded that problem gambling requires lifetime treatment and therefore there is no procedure for removal from the List
Missouri is the frrst jurisdiction in the world to propose a program such as this We will continue to monitor and refme the program and look forward to reporting to you on its impact in next years annual report
ft-Iissouri Gaming CommissiOil 1996 Annual Report - Page 16
Brief Timeline of Riverboat Gaming in Missouri ~ May 13 1991 - General Assembly passes House Bill 149 which authorized
referendum to be submitted to the voters in the November 1992 election to determine whether the State Tourism Commission shall have the power to issue riverboat gambling licenses
gt November 31992 - Missouri voters pass referendum allowing riverboat gaming with a majority ofnearly 63
gt January 1993 - Governor Carnahan announces intentions to push legislation creating an independent Gaming Commission to oversee riverboat gambling
April 29 1993 -- SBs 10 amp 11 creating the Missouri Gaming Commission are signed into law by Governor Carnahan and five Commissioners are appointed Robert Wolfson Chairman Robert Clayton William Quinn Dr Jenice Stewart and Avis Tucker
gt April 30 1993 -- Troy Harris et al v The Missouri Gaming Commission amended petition is filed The petition challenges the constitutionality of Senate Bills 10 amp II
gt- May 17 1993 -- The Missouri Gaming Commission holds its first meeting
~ September 1 1993 -- Proposed Rules and EmergencY Rules are adopted
gt September 20 1993 - 19 riverboat gaming license applications are filed with the commission
gt September 20 1993 - Clarence E Mel Fisher hired as Deputy Director for Enforcement
gt September 24 1993 - Commission contracts with the Internal Revenue Service to perform fmancial investigations for the commission Four IRS agents are assigned to the commission
~ September 28 1993 - Commissions enters into and inter-agency agreement with the Missouri State Highway Patrol to provide enforcement services for the commission
~ October I 1993 - Debbie Ferguson joins the commission as Deputy Director for Administration
November 3 1993 - Commission hires Tom Irwin as Executive Director and Kevin Mullally as Deputy Director for Legal amp Legislative Affairs
November 30 1993 -- Commission announces that it will begin background investigations on the following companies President Riverboat Casino-Missouri St Charles Riverfront Station Inc S1 Joseph Riverboat Partners The Missouri Gaming Company GDC (Supplier) IGT (Supplier) Casino Tokens (Supplier) Paul-Son Dice amp Card Company (Supplier)
gt December 22 1993 - Governor Carnahan signs Executive Order 93-50 designating the enforcement section ofthe Missouri Gaming Commission as a criminal justice agency
1994
gt January 25 1994 -- Missouri Supreme Court in Troy Harris v Missouri Gaming Commission strikes down games of chance including slot machines The court ruled that the Commission did have the authority to issue licenses to riverboat where games ofskill are played Specifically mentioned as games ofskill are poker and blackjack The Court remanded six games to lower court for determination as to whether they are games of skill or chance baccarat craps roulette wheel klondike table faro layout and video games ofchance
~ February 1 1994 -- Rules and Regnlations become effective
February 7 1994 -- Legislature passes resolution to place constitutional amendment on the ballot which would allow the legislature to approve games of chance (slot machines) on riverboats and floating facilities on the Missouri and Mississippi Rivers
gt- April 5 1994 -- Voters defeat constitutional amendment allowing games of chance (slot machines) by an unofficial count of 1263 votes
~ April 29 1994 - Finding of Preliminary Suitability issued to President Riverboat Casino S1 Charles Riverfront Station St Joseph Riverboat Partners and The Missouri Gaming Company
Missouri Gaming Commission 1996 AnnualReport - Page 17
Brief Timeline of Riverboat Gaming in Missouri ~ May 20 1994 -- Governor signs into law SB 740 which defmes games of
chance and enacts more stringent ethics provisions The bill also allows the commission to license a barge in an artificial basin as an excursion gambling boat if it can be demonstrated that safely concerns prevent an operator from cruising from that location
~ May 27 1994 - Commission authorizes as games of skin the following Blackjack Caribbean Stud Poker Poker Double Down Stud Poker Pia Gow Poker Poker Texas Hold Em the video representations ofthese games and Craps
gt May 27 1994 -- Commission authorizes President Riverboat Casino-Missouri to operate the Admiral as a continuously docked excursion gambling boat because cruising would cause danger to the boats passengers
gt May 27 1994 -- Gaming Commission issues first two excursion gambling boat licenses to President Riverboat Casino in st Louis and St Charles Riverfront Station in st Charles
gt May 27 1994 -- Initiative petition tbat would allow voters to approve games ofchance is submitted to the Secretary of State for approval of the form ofthe petition
~ June 6 1994 -- Secretary ofState notifies referendum petitioners that the Attorney General has approved the form of their petition The Secretary of State prepared the following petition title that was approved by the Attorney General
Shall the General Assembly be authorized to permit only upon the Mississippi River and the Missouri River lotteries gift enterprises and games ofchance to be conducted on excursion gambling boats and floating facilities
gt June 9 1994 -- Commission prioritizes Aztar Missouri Corporation Boyd Kansas City Inc and Harrahs North Kansas City as companies to be investigated for licensure pursuant to 11 CSR 45-4060
gt June 22 1994 -- Gaming Commission issues licenses to St Joseph Riverboat Partners in St Joseph and The Missouri Gaming Company in Riverside
~ September 20 1994 -- Commission issues a fmding ofpreliminary suitability to Harrahs North Kansas City Corporation
gt September 20 1994 -- Commission authorizes Harrahs North Kansas City Corporation and st Charles Riverfront Stationl to operate excursion gamblillg boats as continuously docked vessels In both cases the commission found that operating a cruising vessel from the proposed site would cause danger to the boats passengers and the project will generate permanent job creation and land-based development
gt September 22 1994 -- Harrahs North Kansas City Corporation is issued an excursion gambling boat license
gt September 28 1994 - Public hearing regarding Capitol Queen and Casino Jncs application for an excursion gambling boat license results in the commission denying CQCs license and prohibiting them from reapplying for two years
gt October 7 1994 - Commission places William D Cammisano Jr and John Termini on its list of excluded persons
gt November 8 1994 -- Voters approve games ofchance
~ December 9 1994 - Games ofchance are allowed on riverboats
gt December 27 1994 - St Charles Riverfront Station is issued a license to operate the St Charles II as an excursion gambling boat This marks the fIrSt time the commission has licensed a second excursion gambling boat for a single development
The approval was for St Charles Riverfront Stations second boat The flTSt boat continued to cruise until April 16 1996
Missouri Gaming Commission 1996 Annual Report - Page 18
Brief Timeline of Riverboat Gaming in Missouri 1995
)gt- February 22 1995 -- Commission announces it will begin background investigation on Hilton Kansas City Corporation for an excursion gambling boat license
~ March 30 1995 - State Auditor releases final audit report of the Missouri Gaming Commission No major deficiencies are noted
~ April 20 1995 - Commission repays $3 million start-up loan to state general revenue fund
)gt- April 25 1995 - Commission approves continuous docking petitions for Boyd Kansas City Inc and Hilton Kansas City Corporation
~ April 25 1995 -- The commission issues a finding ofpreliminary suitability to Aztar Missouri Gaming Corporation
~ April 26 1995 -- The commission issues an excursion gambling boat license to Aztar Missouri Gaming Corporation in Caruthersville Missouri
)gt- May 24 1995 - The commission announces it will begin background investigations on the following companies Harrahs Maryland Heights Corporation Kansas City Station Inc Players Maryland Heights Inc
gt August 28 1995 - Pursuant to House Bill 574 the duties of the Missouri Horse Racing Commission are transferred to the Gaming Commission
~ September 12 1995 - The commission issues a fmding of preliminary suitability to Boyd Kansas City Inc
September 13 1995 - The commission grants the petition ofHarrahs Maryland Heights Corporation and Players Maryland Heights Inc to operate continuously docked excursion gambling boats at their joint venture in Maryland Heights
)gt- September 13 1995 - The commission issues an excursion gambling boat license to Boyd Kansas City Inc
)gtshy November 16 1995 shy The commission fines the following companies for associating with either socially or in business affairs persons with felony police records or persons with a notorious or unsavory reputation Boyd Kansas City Inc Harrahs North Kansas City Corporation The Missouri Gaming Company
1996
)gtshy February 15 1996 - The commission grants continuous docking rights to Aztar Missouri Gaming Corporation for a second boat in Caruthersville Harrahs North Kansas City for a second boat and Kansas City Station Corporation for two boats in Kansas City
~ April 16 1996 - The commission grants continuous docking rights to Argosy in Riverside Missouri S1 Joseph Riverboat Partners and 81 Charles Riverfront Station
~ May 15 1996 - The commission issues a license to Harrahs North Kansas City for the Lucky Star This is the second boat at the Harrahs North Kansas City mcility Included in the project is a 200-room hotel expanded parking and meeting space
~ June 19 1996 -- The commission places William Canunisano Jr on Exclusion List
~ June 27 1996 - The commission places Peter Simone and Anthony T Civella on Exclusion List
August 28 1996 - The commission takes disciplinary action against Boyd Kansas City Inc for periodic failure to take and report turnstile readings
~ October II 1996 - The commission issues a finding of prel iminary suitability to Hilton Kansas City Corporation and Flamingo Hilton Riverboat Casino LoP
October 18 1996 - TIle commission issues a Class B riverboat gambling license 10 HUlon KlIlIStIS City Corporation and a CltlSs A riverboat gambling license 10 Flamingo Hillon Riverboat CtlSino LP
Missouri Gaming Commission 1996Annual Report - Page 19
Outline of a Background Investigation
Review Application fin Completeneiis
~ Establish number ofkey people
~ Check disclosure forms for completeness
gt Check tax release forms
City Selection Process
~ Contact city to determine how the gaming operator was selected
gt Interview Mayor and City Council members
~ Ifa steering committee was used interview members of that committee
Determine ifany city officials own stock in the selected gaming company
~ Obtain minutes ofcouncil meetings that pertain to riverboat issues (a)selection (b) resolution and (c) ordinance
gt Contact city attorney who handled negotiations with gaming company and obtain correspondence between city and gaming company
~ Contact City Economic Development Director (if applicable)
Docksite
gt- Land selected for gaming operation
J Who was it purchased from (how long have they owned the property) J Price (copy ofcontract)J Copy of plat map and legal description J Determine ifany ofcity officials or selection committee members have
ownership interest in docksite
gt Corps ofEngineers Permit
J Status
J Any concerns by Corps J Wetlands involved
~ Contact DNR for any known concerns in area
gt Check with city for any known dwnpsites with possible hazardous material
gt Developmental agreement between city and gaming operator (obtain copy from city)
gt Detennine if development is feasible
J Is support facility land based or floating J Projected nwnber ofjobs economic aid to area J Traffic flow to area - what improvements are needed - who will pay
for improvements
Riverboat
gt Locate boat and obtain all infonnation about boat (cruise schedule liability carrier)
gt Establish design ofriverboat
gt Determine emergency medical plan for boat
gt Determine ifCoast Guard and other safety requirements have been met
Gaming Operator (Public Corporation Partnership Private Company)
gt Establish contact person with operator
J Determine attorney of record for gaming company J Any missing items from application advise contact person
gt Establish home office (Financial Headquarters)
J Determine a good date and location where all key people can be contacted for a personal interview
J Where can financial record be located
Missouri Gaming Commission 1996Annual Report - Page 20
~
Outline of a Background Investigation
J Breakdown ofmanagement (corporate Board ofDirectors major stockholders)
J Establish flow chart of key people and companies owned by gaming operator
~ Investigation ofKey People will include but not be limited to the following
J Check previous employment work records J Check state local and federal intelligence files J Check for other gaming licenses ifapplicable (check with appropriate
regulators)J Check state federal and local courts for any civil litigation J Check for any arrest record J Check personal and business credit J Check state and local tax status IRS will handle federal taxes
gt Other locations ofgaming operations (currently operating and pending locations)
J Contact gaming regulators for respective locations J Travel to sites to view operations
Establish a file for all key people investigated with summaries establish a file for financial records with summary offinancial viability ofcompany and ability to complete obligations to the city and State ofMissouri Establish a file for other locations of licensure along with summary
Associated Investigations
gt All allegations of Any nature must be investigated and a file established with a written summary
~ Associated investigations must be done in a complete and thorough manner and all reports written accurately
gt Upon completion ofall investigations complete reports and summaries a separate press releasable summary must be written This summary must be approved by Gaming Commission legal staff
Missouri Gaming Commission 1996 Annual Report - Page 21
------------
--------
-----
------
---
---------
----------
Missouri Gaming Commission Compliance Audit Objectives for Licensees
ObjectiveAudit Area ~~~~~~~~~
To ensure accuracy of ticket and turnstile counts reported to MGC including compsIVlPs stayovers and promotions
Table Games
Ticketffurnstile
To ensure accuracy of AGR for table games reported to MGC
Electronic Games To ensure accuracy of AGR for electronic games reported to MGC
Cage Accowltability To ensure accuracy ofcage accountability forms and compliance with internal controls and tax reporting regulations
Observations Cage Main Bank Pit Area Slot Area Turnstile Ticketing
PurchaselRedemptions
$500 Loss Limit
Stayover Procedures
To determine that cashiers are complying with internal controls for chips tokens gaming scrip and cash
To determine compliance with MO statutes and internal controls
To determine compliance with MGC regulations and internal controls
To ensure that manual jackpot payouts are properly handled and the required tax fomIS are completed Manual Jackpot Payouts
To ensure that hopper fills are properly handled and comply with internal controls Hopper Fills
To ensure that table fills are properly handled and comply with internal cootrols Table Fills
To ensure that table credits are properly handled and comply with internal controls Table Credits
To ensure that tracking procedures comply with internal controls and the currency transactions are properly completed Patron TrackingCurrency Transaction Reporting
Imprest Bank Balancing To ensure that proper balancing and accountability is performed during a shift change
Coin Vault To ensure proper maintenance of coin chip and token inventory
Satellite CageSSlot Booths To ensure compliance with internal controls and consistency with main cage procedures
TipsGratuities To ensure compliance with MGC regulations and internal controls
Cage AccessSecurity To ensure compliance with internal controls
Turnstile To ensure accuracy of turnstile count for admissions tax calculation
Ticketing To ensure comp Hance with internal controls and proper handling of stubs voids and issuance
MiscellaneousOther
Surveillance Tapes To review activity for hard soft and tip counts and drops to verify compliance with internal controls
Workpaper Preparation and To establish standardized procedures for MGC audit workpapers and audit reports Audit Reports
-
Missouri Gaming Commission 1996 AnnualReport - Page 22
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Audit Area
Monthly Financial Statement Review
Engagement Letters
Objective --shy
To perform a preliminary review ofmonthly financial statement information for proper completion of fmandal statement templates verification ofadjusted gross receipts to MGC reports and to detect any unusual items which justifY further review when conducting on-site audit
To give advance notification to each boat of the date and scope ofaudit being performed
Financial Statement Verification To determine consistency ofmonthly financial statement information submitted to MGC with boats general ledger system
Balance Sheet Accounts
CashCash Reserve Balance
Cash Receipts
Cash Disbursements
shy -- shy
To determine the existence consistency and fair presentation of the cash balance on the monthly fmancial statements
To determine the consistency and filir presentation of the cash balance on the monthly financial statements and the source of large cash receipts other than gaming revenue
___I
To determine the consistency and fair presentation of the cash balance on the monthly fmancial statements and to trace the outflow of large cash disbursements
i
I
--
AccountslN Notes Receivable
Accrued Admission and Gaming Tax Liability
Chip and Token Liability
Progressive Jackpot Liability
To determine the consistency and fair presentation of the accounts receivable andor notes receivable balance in the monthly fmancial statements
To determine the consistency and fair presentation of the accrued admissiongaming tax liability balance in the monthly financial statements
To determine the consistency and fair presentation of the chip and token liability balance in the monthly financial statements
To determine the consistency and fair presentation of the progressive jackpot liability balance in the monthly fmancial statements
---shy
Tips and Gratuities (Accrued Liability)
Customer Deposit Liability
Accounts Payable
Income Statement Accounts
Revenne - Table Games
To determine the consistency and fair presentation of the accrued tips and gratuities liability in the monthly fmancial statements
-lt ---- shy
To determine the consistency and fair presentation of the customer deposit liabilities in the monthly fiscal statements To determine the consistency and fair presentation ofaccounts payable balance in the monthly fmancial statements
--shy
To determine the consistency and fair presentation of table games revenue as reported to MGC daily and in the monthly fmandal statements
Revenue - Electronic Games To determine the consistency and fair presentation of electronic games revenue as reported to MGC daily and in the monthly financial statements
Missouri Gaming Commission 1996 Annual Report - Page 23
------------
---------
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Revenue - Admissions To detennine the consistency and fair presentation ofadmissions revenue as reported to MGC daily and in the monthly fmancial statements
Promotional Expense To determine that comps are properly recorded as expenses and not deducted from revenue in accordance with GAAP
Pre-Opening Costs To determine whether certain pre-opening and licensing costs are properly expensed or amortized over future periods in accordance with GAAP
Workpaper Preparation and Audit Reports To establish standardized procedures for MGC audit workpapers and audit reports
AissOllri Gamillg Commission 1996 Anllual Report - Page 24
--raquo
-c
-c
CD
l
a
gtlt
raquo
AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
c
Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
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The Effect of the $500 Loss Limit on Competitiveness
For the past two years the commission bas reported that the $500 loss limit imposed by statute places Missouri riverboat gaming operations at a competitive disadvantage as opposed to similar operations in the adjoining states of Illinois and Iowa We opined at that time that the $500 loss limit contributes to a large decrease in state revenne
The commissions comments in prior years have been tempered by our knowledge that the riverboat gaming industry in Missouri was in its formative years and that little data was available to study After more than two years of Missouri operating history there is now adequate data from Missouri and its adjoining competitive states to expand our comments on the loss limits and state our findings with more precision
Negative Impact on Customer Satisfaction
The most frequent complaints to Commission staff and regulatory personnel in their contacts with the public are those dealing with the loss limit and the boarding restrictions The restriction on boarding is a method to enforce the loss limit
In addition the loss limit continues to be difficult to enforce Although the commission uses its best efforts to enforce the limit the customers desire to circumvent it consumes a tremendous amount of manpower Enforcement agents spend a significant amount of time dealing with violations and customer disputes Gaming boat sergeants regularly testifY that their most difficult problem was enforcing the $500 loss limit
The Loss Limit and the Problem Gambler
The loss limit has been described as a measure intended to deal with problem gaming However the success of the loss limit in addressing the problem ofcompulsive gambling remains undetermined
The primary argument for the $500 loss limit is that it helps deter the problem gambler Ifthe loss limit controlled the behavior of the problem gambler it would be a laudable requirement
Mental health professionals have told the commission that left untreated the problem gambler will find a way to gamble Whether it is by reboarding another cruise using some other persons loss limit card by crossing the river into another jurisdiction where there is no loss limit or gambling illegally the problem gambler will find a way to exercise the compulsion
The commission in relying on the treatment professionals has focused its battle against
problem gambling on education MissQun hasbeen()ne ofprevention and treatment Missouri has been one of the the most aggressive states most aggressive states in in c9mbatjpgproblem combating problem gambling Missouri is the first jurisdiction gambling Missouri is the to create a system whereby firstjlIrisdictiontomiddot create a problem gamblers can exclude systemwllerebyproblem themselves from casinos under threat ofarrest for trespassing gamblers can exclude In addition the commission has fhemselvesfrom casinos required operators to adopt
l)I1der threat of liITest forprograms to educate problem gamblers and has arranged trespassing~ funding for the recruitment and training oftreatment counselors who must be certified by the Missouri department ofmental health
The Loss Limit and the Typical Consumer
While treatment professionals tell the commission that loss limits do not inhibit the compulsive gambler Wall Street analysts who study the industry report that the loss limit has a negative impact on the normal consumer looking
Missouri Gaming Commission 1996 Annual Report - Page 3
for an entertainment experience Gaming is an entertainment industry In the entertainment industry the consumers demand a product that they can enjoy during their leisure time on their own terms
In Missouri there are consumers that indicate they dislike the product which they are being offered Many of these conswners will go out of their way even travel to another state to fmd a product that is more user friendly A cursory survey of the license plates in the parking lot I)fthe Casino Queen in East 8t Louis Illinois adequately demonstrates this point
Many Missouri gaming customers complain that the loss limit is inconvenient intrusive and that it detracts from the entertainment experience they seek at Missouri riverboats To have to account for ones spending during what is supposed to be a leisure activity strikes many as a personal encroachment The fact that this requirement is imposed and enforced by the government further aggravates this perception
Many Missouri consumers react to this restriction by taking their leisure time and tax dollars across the border to JIlinois Iowa or Kansas where there are no limits Furthermore it is apparent that the loss limit severely restricts Missouri riverboat operators from drawing tourist customers from other states Consumers choice as to how to spend their discretionary leisure dollars is evident in the competitive gaming arena
The Missouri gaming law was adopted by the people for its potential to generate economic development its ability to raise needed revenue for education and because it is a leisure activity that many want to pursue The loss limit detracts from aU of these goals While Missouri is currently the beneficiary ofa significant amount of capital investment and new job creation the continuing negative impact of the loss limit renders our economic future in this area uncertain Because of the loss limit Missouri riverboat operators are less competitive the state is losing money to its neighboring states there is a reduction in the number of available jobs and the number of riverboats that can successfully operate in Missouri is restricted
Tax revenues from gaming have benefited education While tax revenues from gaming are still growing after only two years Missouri has seen
~ -
How does the Loss Linlit Work
Pursuant to sect 313805 RSMo the commission is required to regulate the wagering structure to include a maximum loss of five hundred dollars per individual player per gambling excursion In order to enforce this provision the commission requires the following procedure
I In order to board an exctrrsion gambling boat a customer most stand in line to obtain a ptrrchase authorization coupon (scrip) This scrip must be signed by the customer in the presence of a licensed riverboat employee
2 After the customer receives the scrip heshe must get in another line to board the riverboat The scrip also serves as the customers boarding pass
3 The scrip which is time and date stamped must be printed with boxes of denominations ofwhich the total ofall boxes shall not exceed $500 These boxes shall be canceled by pennanent black marker at the time the patron presents the scrip in the riverboat casino lfthe scrip is not signed at the time of presentment or the date and time are not valid the scrip shall be confiscated from the customer If the scrip is valid and there are sufficient available boxes the cashier shall cancel the appropriate number of boxes with a pennanent black marker and complete the transaction
4 In a situation where a customer wishes to buy chips at a table the procedtrre is the same except that the dealer stops the game to execute the transaction On many occasions the use of the scrip to convert cash to chips will slow up the game This is another example of customer dissatisfaction arismg out of the process
Transcript Missouri gaming commission meeting November 25 1996 pages 8 II and 1~17 (Bruce Turner Salomon Brothers) pages 44-46 (Joe Coccimiglio Prodential Securities) pages 57-58 (Tom Ryan Bankers Trust) pages 65-68 (Larry Klatzkin Donaldson Lufkin ampJenrette) pages 84-90 (Richard Byrne Merrill Lynch)
Missouri Garning Commission 1996 Annual Report - Page 4
Win Per Admission CoJql8ring Mssouri and IIhlls
those revenues fall short ofpredictions Analysts from Wall Street tell the commission that we are exporting our tax dollars to other states In a recent commission meeting regarding market size a well respected gaming analyst opined that while Missouri supplies 73 ofthe gaming market in the S1 Louis area it captures only 50 ofthe revenue Z
Finally the gaming experience ofconsumers who do visit Missouri gaming operators is less desirable than the experience offered by competitive states Missouri is offering a more cumbersome and less enjoyable product The commission believes that the gaming policy for Missouri should retain the Missouri dollars in Missouri and attract dollars from other states Our current policy has the exact opposite result
The Costs 0Competitive Ineriority
Limiting the ability ofMissouri operators to offer a competitive entertainment product has direct economic costs which are easily illustrated Missouri gaming riverboats are larger more luxurious and offer more non-gaming amenities than competitors in neighboring states Yet they fail to compete in economic terms even though the bulk ofthe popUlation seeking the entertainment product lives in Missouri
For example the Casino Queen in East St Louis Illinois and the Alton Belle in Alton Illinois combined have less capital investment than St Charles Riverfront Station which has consistently expanded and reinvested since it opened in May 1994 In addition these Illinois gaming facilities consist primarily of parking facilities and the gaming casino They offer no non-gaming amenities other than limited restaurant facilities
In spite of these negative competitive factors the two Illinois facilities regularly outperform SCRS in spending per customer Similarly Illinois riverboats in the St Louis area fare significantly better in gaming revenue per square foot gaming revenue per position and admissions per square foot One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
pages 104-106 (John Maxwell Standard amp Poors) and pages 115-118 (Steve Schneider Stife Nicoaus) See also Minutes ofMissouri gaming commission meeting May 24 1995
Missouri Gaming Commission minutes November 25 1996page 27 quoting Jason Ader Bear Stems gaming analyst Examples ofsome of the non-gaming amenities included in Missouri projects include themed restaurants movie theaters botels meeting space retail shopping child
care centers micro breweries an 18th century railroad car restored to its original luxury fountain displays and theaters for live entertainment
Missouri Gaming Commission 1996Annual Report - Page 5
2
The Problem is Clear - How does Missouri Address the Problem
Missouri statutes require the commission to report annually to the Governor and the General Assembly on the competitive state of the gaming industry in Missouri For two years the commission has advised the General Assembly that we believe that there could be a problem with the structure of the gaming industry but that the data is incomplete However we now fmd the data to be clear and compelling A problem exists in the Missouri gaming industry -- the gaming product is not competitive with our neighboring states This will create negative economic results and lower tax revenues
Due to navigational safety constraints most Missouri riverboats do not cruise It has been suggested by gaming analyst and by legislation filed in prior years that the elimination of the boarding time restrictions will help Missouri gaming operators economically and be more consumer friendly The commission believes that the current boarding time restrictions are detrimental to the consumer and make little sense since the riverboats are not leaving the dock They are an artificial barrier to entry and participation Yet the boarding times are essential to enforcing the loss limit A change in the statutes which
3(()
21)Q
i a
OIl
eliminates the boarding times but maintains the loss limit would make the enforcement of the loss limit impossible
Findings
Current Missouri statutes are not competitive with our adjoining states Consequently Missouri is at a competitive disadvantage Repealing the loss limit would make the Missouri operators more competitive Without this change the Missouri gaming industry will continue to be at a competitive disadvantage and over time will decline rather than prosper
Conclusioll
Section 313837 RSMo requires the commission to report annually to the general assembly on the effects ofthe loss limit on the competitiveness of the gaming industry in Missouri The findings above are intended to satisfy this statutory mandate The enactment of any changes in policy as a result of these findings are obviously the purview of the General Assembly and the Governor
Missouri Gaming Commission 1996Annual Report - Page 6
Effect of Tax Rate on Competitiveness
The Missouri tax rate currently mirrors that of its principle competitor the State of Illinois The MissourilIlIinois tax rate consists of a 20 base tax on adjusted gross receipts (AGR) In Missouri 10 of that tax (or 2 of AGR) is a local tax imposed by state statute The funds collected from this local tax are allocated to the home dock city or county fur services necessary for the safety of the public visiting the excursion gambling boat The remaining tax on AGR (18 of gross receipts) is placed in the Gaming Proceeds for Education Fund and may be spent only for public elementary secondary and higher education
Iowa has a graduated tax tbat caps out at 20 for adjusted gross receipts over $3 million Because the graduated rate reaches its cap at the relatively low ceiling 0pound$3 million Iowas effective tax rate is not significantly
The state of Kansas has recently allowed casinos operated by native American Indians These casinos are not taxed
For your future reference a table is contained in Appendix B setting forth the tax rate in each gaming jurisdiction and the regulatory restrictions that are imposed The chart below is a generalization of the tax rates in the various gaming jurisdictions Because of the subtleties of each states tax law it is difficult to precisely chart the rates For a defmitive explanation of the tax rates refer to the aforementioned chart in Appendix B
The Commission does not feel that the 20010 tax rate currently places our licensees at a competitive disadvantage The commission will continue to monitor the performance of all licensees and report developments as they occur
different from that of Missouri and Illinois
Licensees are also responsible for a $2 admission fee for each person who participates in a gaming excursion One dollar of this fee is remitted to the home dock city or county The remaining dollar is used to fund the regulatory activities of the Commission No general revenue is used for any activity of the Commission In addition to the $2 admission fee the gaming boat is billed monthly for the full cost of the enforcement agents assigned to the boat Either through fees or direct billing the gaming operators pay for the full cost of their own regulation
The State of Mississippi assesses a tax of 12 on AGR Unlike Illinois who is limited to licensing 10 gaming operations Mississippi has not limited the number of casinos licensed but has licensed all applicants that have been found suitable The Missouri law does not specifically limit the number of licenses that may be issued but places this responsibility in the hands of the Commission through a best interests of Missouri standard
Comparison of Gaming Tax Rates TaxonAGR
25
20 m ma )(
15 IImTaxRaeJ ~ 10
5
0 NV NJ LA
----------------------------------
MS IL IN IA MO CO so State
Missouri Gamilg Commission 1996Annual Report - Page 7
Missouri Gaming Commission Contributions to Education
Fiscal Year 1995
Gaming Proceeds for Education $ 5661628204
Bingo Tax Proceeds for Education $ 625370396
FY95 Tax Revenue from Gaming $6286998600
Fiscal Year 1996
Gaming Proceeds for Education $9973032067
Bingo Tax Proceeds for Education $ 468417852
FY 96 Tax Revenue from Gaming $10441449919
Total Tax Revenue from Gaming 516728448519
Does the GamblingMoneYiReallyGoo Fund Education
This may be the question inostfrequently asked ofpublic officials The simple answer is yes it does Pursuant to aconstitution~lamendntent passed by theGeneraIAssemblyasSJk 20 in 1992 andapproved bythe voters in a subsequent general electionmiddotall state tax money derived from the proceeds ofgamblirigisspent on education
The text ofthisconstitutional provision contained inArtiete 1lISection 39(d) reads as follows
All state revenues derived from the conduct ofaUgaming activities as are now or hereafter authorized by thiscomtitution orbyJaw unless otherwise provided bylaw on the ~ffectivedateofthissectionshallbemiddot appropriated beginoingJuly 1193solely for the pl1blic instittitions of elementary secondary and higheredueatioll and shaH~ot be included within the defmitionoftotal staterevenues in sectioid 7ofarticle X of this constitution
The tax revenues derivedfimnthe proceeds ofgambling foifiscalyeart998 are estimated to be $155 millionmiddot In ~d~itionto thegamblingm~neymiddot traditional stategeneralrevelluefundingfor publicschoo~ bas Uicreased every year since riverboatgillllblingwasenacted Thetotalstatebudget for educationwhichrepresents approximately 50of the average local school budget is $2965 billion Theg~~lIDgnlOney was designedtoslipplel1lent not replace the primatySufCeS ofpqb lie school fuDding[befunds derived from gambling have be~nusedfortheOiltstandingSchools TtilStFundthemiddotmiddot SchoolDistrict Bond Fund fotmainteniuiceandcapital exp~nclilures for public colleges and universities and to supplcentmenttheschool foundlltionmiddot formula
Missouri Gaming Commission 1996 Annual Report - Page 8
for an entertainment experience Gaming is an entertainment industry In the entertainment industry the consumers demand a product that they can enjoy during their leisure time on their own terms
In Missouri there are consumers that indicate they dislike the product which they are being offered Many of these conswners will go out of their way even travel to another state to fmd a product that is more user friendly A cursory survey of the license plates in the parking lot I)fthe Casino Queen in East 8t Louis Illinois adequately demonstrates this point
Many Missouri gaming customers complain that the loss limit is inconvenient intrusive and that it detracts from the entertainment experience they seek at Missouri riverboats To have to account for ones spending during what is supposed to be a leisure activity strikes many as a personal encroachment The fact that this requirement is imposed and enforced by the government further aggravates this perception
Many Missouri consumers react to this restriction by taking their leisure time and tax dollars across the border to JIlinois Iowa or Kansas where there are no limits Furthermore it is apparent that the loss limit severely restricts Missouri riverboat operators from drawing tourist customers from other states Consumers choice as to how to spend their discretionary leisure dollars is evident in the competitive gaming arena
The Missouri gaming law was adopted by the people for its potential to generate economic development its ability to raise needed revenue for education and because it is a leisure activity that many want to pursue The loss limit detracts from aU of these goals While Missouri is currently the beneficiary ofa significant amount of capital investment and new job creation the continuing negative impact of the loss limit renders our economic future in this area uncertain Because of the loss limit Missouri riverboat operators are less competitive the state is losing money to its neighboring states there is a reduction in the number of available jobs and the number of riverboats that can successfully operate in Missouri is restricted
Tax revenues from gaming have benefited education While tax revenues from gaming are still growing after only two years Missouri has seen
~ -
How does the Loss Linlit Work
Pursuant to sect 313805 RSMo the commission is required to regulate the wagering structure to include a maximum loss of five hundred dollars per individual player per gambling excursion In order to enforce this provision the commission requires the following procedure
I In order to board an exctrrsion gambling boat a customer most stand in line to obtain a ptrrchase authorization coupon (scrip) This scrip must be signed by the customer in the presence of a licensed riverboat employee
2 After the customer receives the scrip heshe must get in another line to board the riverboat The scrip also serves as the customers boarding pass
3 The scrip which is time and date stamped must be printed with boxes of denominations ofwhich the total ofall boxes shall not exceed $500 These boxes shall be canceled by pennanent black marker at the time the patron presents the scrip in the riverboat casino lfthe scrip is not signed at the time of presentment or the date and time are not valid the scrip shall be confiscated from the customer If the scrip is valid and there are sufficient available boxes the cashier shall cancel the appropriate number of boxes with a pennanent black marker and complete the transaction
4 In a situation where a customer wishes to buy chips at a table the procedtrre is the same except that the dealer stops the game to execute the transaction On many occasions the use of the scrip to convert cash to chips will slow up the game This is another example of customer dissatisfaction arismg out of the process
Transcript Missouri gaming commission meeting November 25 1996 pages 8 II and 1~17 (Bruce Turner Salomon Brothers) pages 44-46 (Joe Coccimiglio Prodential Securities) pages 57-58 (Tom Ryan Bankers Trust) pages 65-68 (Larry Klatzkin Donaldson Lufkin ampJenrette) pages 84-90 (Richard Byrne Merrill Lynch)
Missouri Garning Commission 1996 Annual Report - Page 4
Win Per Admission CoJql8ring Mssouri and IIhlls
those revenues fall short ofpredictions Analysts from Wall Street tell the commission that we are exporting our tax dollars to other states In a recent commission meeting regarding market size a well respected gaming analyst opined that while Missouri supplies 73 ofthe gaming market in the S1 Louis area it captures only 50 ofthe revenue Z
Finally the gaming experience ofconsumers who do visit Missouri gaming operators is less desirable than the experience offered by competitive states Missouri is offering a more cumbersome and less enjoyable product The commission believes that the gaming policy for Missouri should retain the Missouri dollars in Missouri and attract dollars from other states Our current policy has the exact opposite result
The Costs 0Competitive Ineriority
Limiting the ability ofMissouri operators to offer a competitive entertainment product has direct economic costs which are easily illustrated Missouri gaming riverboats are larger more luxurious and offer more non-gaming amenities than competitors in neighboring states Yet they fail to compete in economic terms even though the bulk ofthe popUlation seeking the entertainment product lives in Missouri
For example the Casino Queen in East St Louis Illinois and the Alton Belle in Alton Illinois combined have less capital investment than St Charles Riverfront Station which has consistently expanded and reinvested since it opened in May 1994 In addition these Illinois gaming facilities consist primarily of parking facilities and the gaming casino They offer no non-gaming amenities other than limited restaurant facilities
In spite of these negative competitive factors the two Illinois facilities regularly outperform SCRS in spending per customer Similarly Illinois riverboats in the St Louis area fare significantly better in gaming revenue per square foot gaming revenue per position and admissions per square foot One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
pages 104-106 (John Maxwell Standard amp Poors) and pages 115-118 (Steve Schneider Stife Nicoaus) See also Minutes ofMissouri gaming commission meeting May 24 1995
Missouri Gaming Commission minutes November 25 1996page 27 quoting Jason Ader Bear Stems gaming analyst Examples ofsome of the non-gaming amenities included in Missouri projects include themed restaurants movie theaters botels meeting space retail shopping child
care centers micro breweries an 18th century railroad car restored to its original luxury fountain displays and theaters for live entertainment
Missouri Gaming Commission 1996Annual Report - Page 5
2
The Problem is Clear - How does Missouri Address the Problem
Missouri statutes require the commission to report annually to the Governor and the General Assembly on the competitive state of the gaming industry in Missouri For two years the commission has advised the General Assembly that we believe that there could be a problem with the structure of the gaming industry but that the data is incomplete However we now fmd the data to be clear and compelling A problem exists in the Missouri gaming industry -- the gaming product is not competitive with our neighboring states This will create negative economic results and lower tax revenues
Due to navigational safety constraints most Missouri riverboats do not cruise It has been suggested by gaming analyst and by legislation filed in prior years that the elimination of the boarding time restrictions will help Missouri gaming operators economically and be more consumer friendly The commission believes that the current boarding time restrictions are detrimental to the consumer and make little sense since the riverboats are not leaving the dock They are an artificial barrier to entry and participation Yet the boarding times are essential to enforcing the loss limit A change in the statutes which
3(()
21)Q
i a
OIl
eliminates the boarding times but maintains the loss limit would make the enforcement of the loss limit impossible
Findings
Current Missouri statutes are not competitive with our adjoining states Consequently Missouri is at a competitive disadvantage Repealing the loss limit would make the Missouri operators more competitive Without this change the Missouri gaming industry will continue to be at a competitive disadvantage and over time will decline rather than prosper
Conclusioll
Section 313837 RSMo requires the commission to report annually to the general assembly on the effects ofthe loss limit on the competitiveness of the gaming industry in Missouri The findings above are intended to satisfy this statutory mandate The enactment of any changes in policy as a result of these findings are obviously the purview of the General Assembly and the Governor
Missouri Gaming Commission 1996Annual Report - Page 6
Effect of Tax Rate on Competitiveness
The Missouri tax rate currently mirrors that of its principle competitor the State of Illinois The MissourilIlIinois tax rate consists of a 20 base tax on adjusted gross receipts (AGR) In Missouri 10 of that tax (or 2 of AGR) is a local tax imposed by state statute The funds collected from this local tax are allocated to the home dock city or county fur services necessary for the safety of the public visiting the excursion gambling boat The remaining tax on AGR (18 of gross receipts) is placed in the Gaming Proceeds for Education Fund and may be spent only for public elementary secondary and higher education
Iowa has a graduated tax tbat caps out at 20 for adjusted gross receipts over $3 million Because the graduated rate reaches its cap at the relatively low ceiling 0pound$3 million Iowas effective tax rate is not significantly
The state of Kansas has recently allowed casinos operated by native American Indians These casinos are not taxed
For your future reference a table is contained in Appendix B setting forth the tax rate in each gaming jurisdiction and the regulatory restrictions that are imposed The chart below is a generalization of the tax rates in the various gaming jurisdictions Because of the subtleties of each states tax law it is difficult to precisely chart the rates For a defmitive explanation of the tax rates refer to the aforementioned chart in Appendix B
The Commission does not feel that the 20010 tax rate currently places our licensees at a competitive disadvantage The commission will continue to monitor the performance of all licensees and report developments as they occur
different from that of Missouri and Illinois
Licensees are also responsible for a $2 admission fee for each person who participates in a gaming excursion One dollar of this fee is remitted to the home dock city or county The remaining dollar is used to fund the regulatory activities of the Commission No general revenue is used for any activity of the Commission In addition to the $2 admission fee the gaming boat is billed monthly for the full cost of the enforcement agents assigned to the boat Either through fees or direct billing the gaming operators pay for the full cost of their own regulation
The State of Mississippi assesses a tax of 12 on AGR Unlike Illinois who is limited to licensing 10 gaming operations Mississippi has not limited the number of casinos licensed but has licensed all applicants that have been found suitable The Missouri law does not specifically limit the number of licenses that may be issued but places this responsibility in the hands of the Commission through a best interests of Missouri standard
Comparison of Gaming Tax Rates TaxonAGR
25
20 m ma )(
15 IImTaxRaeJ ~ 10
5
0 NV NJ LA
----------------------------------
MS IL IN IA MO CO so State
Missouri Gamilg Commission 1996Annual Report - Page 7
Missouri Gaming Commission Contributions to Education
Fiscal Year 1995
Gaming Proceeds for Education $ 5661628204
Bingo Tax Proceeds for Education $ 625370396
FY95 Tax Revenue from Gaming $6286998600
Fiscal Year 1996
Gaming Proceeds for Education $9973032067
Bingo Tax Proceeds for Education $ 468417852
FY 96 Tax Revenue from Gaming $10441449919
Total Tax Revenue from Gaming 516728448519
Does the GamblingMoneYiReallyGoo Fund Education
This may be the question inostfrequently asked ofpublic officials The simple answer is yes it does Pursuant to aconstitution~lamendntent passed by theGeneraIAssemblyasSJk 20 in 1992 andapproved bythe voters in a subsequent general electionmiddotall state tax money derived from the proceeds ofgamblirigisspent on education
The text ofthisconstitutional provision contained inArtiete 1lISection 39(d) reads as follows
All state revenues derived from the conduct ofaUgaming activities as are now or hereafter authorized by thiscomtitution orbyJaw unless otherwise provided bylaw on the ~ffectivedateofthissectionshallbemiddot appropriated beginoingJuly 1193solely for the pl1blic instittitions of elementary secondary and higheredueatioll and shaH~ot be included within the defmitionoftotal staterevenues in sectioid 7ofarticle X of this constitution
The tax revenues derivedfimnthe proceeds ofgambling foifiscalyeart998 are estimated to be $155 millionmiddot In ~d~itionto thegamblingm~neymiddot traditional stategeneralrevelluefundingfor publicschoo~ bas Uicreased every year since riverboatgillllblingwasenacted Thetotalstatebudget for educationwhichrepresents approximately 50of the average local school budget is $2965 billion Theg~~lIDgnlOney was designedtoslipplel1lent not replace the primatySufCeS ofpqb lie school fuDding[befunds derived from gambling have be~nusedfortheOiltstandingSchools TtilStFundthemiddotmiddot SchoolDistrict Bond Fund fotmainteniuiceandcapital exp~nclilures for public colleges and universities and to supplcentmenttheschool foundlltionmiddot formula
Missouri Gaming Commission 1996 Annual Report - Page 8
middot Where Does All the middot Gaming Tox Money Go
Orgallizationai Structure OFFICE OF THE EXECUTIVE DIRECTOR
Thomas J Irwin was named Executive Director by the Commission on October 21 1993 Mr Irwin came to the Commission after serving 3 years as Executive Assistant to St Louis County Executive Buzz Westfall Mr Irwin is a graduate ofHarvard University where he earned his masters degree from the Kennedy School ofGovernment He has served as the Chief Budget Officer for the Boston Police Department and was the Executive Assistant for Intergovernmental Affairs for St Louis mayor Vince Schoemehl from 1982 to
1988 Mr Irwin is a veteran of the United States Marine Corps having served
in Vietnam in 1968
i i Mr Irwin is responsible for the day-to-day operations of the
Commission He supervises all staff activities and reports to the Commission Among the staff positions reporting to the Director is Public Information
i K Officer Harold Bailey Mr Bailey is responsible for organizing and
distributing all public documents and reports
I In addition there are six primary functions of the Commission that
it have been divided into sections that report directly to Mr Irwin including
Administration Audit Bingo Corporate Securities Enforcement amp
t ~
Investigations and Legal amp Legislative Affairs
I ADMINISTRA110N
The administration section headed by Deputy Director Deborah A Ferguson provides a range of administrative financial and technical services to
help the Commission accomplish its goals The administrative services can be divided into the following functions accounts payable accounts receivable purchasing data processing budget facility leasing and human resources Accomplishments of the administration section would not have come to pass without the assistance ofChiefAccountant Denny Hodges Persomlel Officer Vicki Glenn Records Administrator Michael Shelhnan and Data Processing Manager John Bluma The administration staff benefited from the addition ofTen a Smith Diane Riddle and Mike Brizendine
The administration section continues to be a focal point of activity with the continued growth of the gaming industry l1te highlight of this past year was the relocation of the Jefferson City office Plaooing and design for the Jefferson City office began in 1995 and culminated with the move in September 1996 Highlights of the new building include a hearing room to conduct Commission meetings adequate file space to house the Commission
records that will be relocated from the St Louis office and the merging of the Bingo and Gaming staff into one facility to enhance coordination ofdaily activities
More specifically the duties of this section are as follows
~ Billing licensees for the processing and aoouallicenses issued to Level One and level Two Occupational employees that work for each riverboat To date there are approximately 9000 licensed employees
~ Billing licensed operators for the full cost of the enforcement agents assigned to each boat
~ Maintaining all Commission fmancial and personnel records which includes the monthly reconciliation of the Gaming Commission fund balance and processing aU payments made by the Commission
gt Preparation and implementation of the Commissions annual budget to ensure compliance with legislative intent
~ Handling all personnel matters and employee training and establishing and implementing written office policies for Commission staff
gt Preparation of fiscal notes to provide estimates to proposed legislation
Data Processiltg
The Data Processing section headed by John Blunm had a busy year in 1996 which included major systems developments as well as the daunting task of moving the Jefferson City office to a new location Some ofthe accomplishments of this important section include
~ Opening new commission offices for its agents at licensed premises
~ Moving the Jefferson City offices of the Riverboat Gaming and the Bingo workgroups to the new location This involved moving all computer workstations servers communications processors and printers to the new
Missouri Gaming Commission 1996 Annual Report - Page 10
building The two separate networks were consolidated into one large network that provides email between all members ofthe two sections for the fIrSt time and allows sharing of peripheral equipment such as laser printers
gt Final testing and implementation ofa billing system for enforcement billing to reimburse the state for expenses related to regulating the casino gaming industry
~ Automation ofannual MULES checks required of the 9000 plus gaming occupational license holders eliminating hundreds ofhours ofdata entry time
gt Upgrade of the physical inventory system to provide more complete reports and to track add-on costs to major inventory items
gt Design and development ofan occupational license history tracking system to provide a complete picture of license payments changes in license status duplicate badges issued and changes in employment status
gt Enhancing existing systems to meet new statutes and rules and regulations
AUDET
The audit section is responsible for the critical function ofensuring that the operators pay their taxes promptly and accurately This section headed by Jolm Davis former Internal Revenue Service Manager developed the Commissions tax remittal system that allows the Commission to capture tax remittance data on a daily basis The operators returns are audited by compliance audit siaffheaded up by senior accountant Kara Hardaway
The audit section also develops audit programs reviews and approves each boats system ofintemal controls conducts on-site performance audits reviews the quarterly CPA audits ofAdjusted Gross Receipts Tax and Admission Tax and reviews all internal audit reports prepared by the casinos internal audit staff
During 1996 the audit section revised Minimum Internal Control Standards that all operators must meet These standards were developed by the
audit staff after a lengthy review process that involved input from the IRS enforcement officers and industry experts
The audit section also implemented a system for tracking and depositing all non-tax revenue received from applicants such as application fees from applicants and reimbursements for Commission services
A summary ofsome ofthe audit sections programs and objectives is contained on page 22
BINGO
The Bingo Division is comprised ofthree separate sections which include the Administration Licensing Audit and Enforcement The Bingo Division Supervisor is Ron Pleus The Audit Section Supervisor is Randall Cahill and the Enforcement Section Supervisor is Sergeant Dwight Franklin The bingo statutes have been revised significantly in recent years requiring many administrative changes to occur within the Division Among the more daunting projects were the establishment ofa new licensing category for hall providers and the implementation ofa new supplier-based tax Specific duties within the three sections of the Bingo Division and the recent statntory changes are briefly outlined below
AdministrativeILicensiog Section - This section is responsible for the processing ofall correspondence and the licensing and maintenance ofover 1500 operator licensees which include all regular and special event bingo operators licenses and 200 hall providers annually This section deposits and records an tax and license receipts received on a daily basis This unit maintains a data base of over 31000 records ofindividuals that are involved in the management conduct andor operation ofbingo games and 3000 records of individuals involved as owners and officers of licensed Hall Providers Currently this staff consist ofthree employees Jane Bax Pam Murphy and Tina Freese In conjunction with the data processing staff the administrative section has developed an automated renewal application system which became fully operational January 1996 This system simplifies the renewal process for the licensee and eliminates wasted steps and duplicate information The system has proven to be a tremendous time saver for the not-for-profit volunteer organizations who are required to file renewals and also helps to reduce the staffmg cost and other administrative cost for the Division
Missouri Gaming Commissioll 1996 Allnual Report ~ Page 11
Audit Section - This section is responsible for the timely audit of all Bingo Product Manufacturers and Suppliers and assisting the Enforcement Section with oil-site inspections of bingo operators The audit staff has developed a comprehensive Manufacturer and Supplier audit procedure manual and has developed procedures for the inspection ofbingo operators The procedures for the inspection of bingo operators are used by both the Enforcement and Audit Staffs The audit section has audited all of the licensed Manufacturers and Suppliers during fiscal year 1996 These audits resulted in over $32000000 in unreported taxes and penalties The auditors also assisted enforcement with inspections and investigations of unlicensed suppliers and operators The section conducts on-site inspections of formerly licensed suppliers to determine ifthe products in inventory were being disposed of in accordance with the statutes The audit staff also assists the administrative staff in auditing the operators quarterly repom
Enforeement Section - This section is headed by Sgt Dwight Franklin a 17 year veteran ofthe Missouri Highway Patrol Sgt Franklin has six (6) officers assigned to the enforcement section Their duties include background investigations of all Manufacturers and Suppliers to include all the key personnel in those companies These investigations include criminal checks fmancial checks past employment history and all litigation involving the applicant In addition the enforcement section is responsible for investigating complaints on the licensed bingo organizations The complaints range from minor rule violations to thefts of large sums of money Complaints are received on a daily basis and are investigated on the basis of severity location and available manpower An additional duty of the Enforcement Section is to complete background investigations on all new potential employees of the Gaming Commission
CORPORATE SECURITIES AND FINANCE
The Commission has established a Section of Corporate Securities and Finance to address the challenge ofregulating the complex fmancial corporate structuring and contractual transactions involving publicly traded and privately held gaming companies This section is comprised of staff trained in legal accounting and business matters to perform examinations of these transactions
The suitability issues examined by the Corporate Securities and Finance Section include complex fmancial and legal suitability issues such as fmancial soundness corporate control legal compliance and procedural licensing issues
The sections examinations are coordinated closely with the Enforcement Division for background investigations and disciplinary matters
Typical transactions that are examined by the section include mergers and acquisitions public debt and equity issuances and private financings such as bank loans and credit facilities The goal of this new section is to provide the Commission with more thorough and sophisticated investigations and analysis of the suitability ofgaming companies and with a uniform system for providing this analysis on corporate securities and fmance issues Through this section the Commission hopes to identifY suitability problems ofapplicants and licensees earlier and more efficiently and to identifY plan for and possibly even avoid potential business closures of licensees due to fmandal matters
The Corporate Securities and Finance Section is headed by the Commissions General Counsel Greg Orner who reports directly to the Executive Director on corporate securities and finance matters The section also includes a Chief Financial Analyst position to be filled soon which will oversee the work ofthe fmancial staff examining the corporate secwities and fmance transactions
The Conunissions Financial Manager Pam Brown haS handled the fmandal analysis of the reported transactions up to now and will continue to perfonn many of the more complex transaction examinations and oversee the work of an accountant Pam Wheelis and a fmancial analyst (planned to be added next year) who are also assigned to the section
ENFORCEMENT
Enforcement for the Missouri Gaming Commission is provided by officers of the Missouri State Highway Patrol and agents of the Internal Revenue Service by way of Memorandums ofUnderstanding which set forth the responsibilities ofeach entity
The enforcement section is headed by Mel Fisher former Superintendent of the Highway Patrol The Gaming Division ofthe Highway Patrol is headed by Captain Dwight Hartung There are seventy-seven officers assigned to the Gaming Division and an additional six officers assigned to the Bingo Enforcement Unit
Some of the advantages ofusing Highway Patrol Officers as gaming agents include
JtfisSOUli Gaming Commission 1996 Annual Report - Page 12
the staff assigned are trained specialists in law enforcement and investigations thus saving the Commission the time effort and expense of recruitment and training
because the agents are licensed law enforcement officers they command immediate respect when interacting with licensees and customers aboard a riverboat as well as when they are in a foreign jurisdiction conducting an investigation
~ the Commission feels that it is important to rotate enforcement staff aboard the various boats this process is much easier with seasoned law enforcement officers who are used to being rotated between assignments as well as in and out of the gaming division
gt provides the ability to access sensitive law enforcement information from other jurisdictions
gt their experience in conducting investigations and handling emergency situations has proven invaluable
The Commissions background investigation units consist of three Highway Patrol Officers and one IRS agent The background investigations conducted by the Missouri Gaming Commission are thorough and take approximately four months to complete if no unusual complications or delays emerge The Commission not only investigates the finances and activities of the company and all its key people but traces the source ofall their funds to ensure that no criminal elements are funding the operation from behind the scene An outline that provides a sketch of a typical background investigation is contained on page 20
LEGAL amp LEGISLATIVE AFFAIRS
The legal amp legislative affairs section is responsible for all legal matters presented to the commission prior to litigation Any litigation involving the commission is handled by the Attorney Generals office In addition this section which is headed by Deputy Director Kevin Mullally develops and drafts legislation endorsed by the commission as well as all rules and regulations Moreover the legal section manages an administrative appeals docket where Mullally serves as Hearing Officer
Greg Orner serves as the commissions general coWlSel and works closely with the enforcement staff reviewing incident reports investigative issues and possible disciplinary actions In addition Mr Omer heads the Corporate Securities section
Some of tbe otber responsibilities of the legal section include
~ Drafting all resolutions for all commission actions and
gt preparing disciplinary complaints and denial orders for proposed action against licensees and
gt conducting quasi-legislative hearings on issues such as continuous docking and boat design and
gt providing legal research services and
gt organizing and maintaining records ofall official commission actions and commission policies and
gt handling inquiries from legislators constituents and other state regulatory agencies
The commissions legal staff is supported by paralegal Heather Grefrath and legal secretary Susan Sundermeyer This support staff is critical to daily operations ofthe legal section and is particularly valuable in the sections role in preparing and managing the rules and regulations all documents necessary for commission meetings and all documents declaring commission policy
In 1997 the legal section will be augmented with the addition ofstaff attorney Robert Little
PENDING LITIGATION
The Missouri Gaming commission denied one occupational license in 1994 thirteen occupational licenses in 1995 and thirty-five occupational licenses in 1996 Each aplicant is presumed WlSuitable and has the burden of proof to prove his or her suitability to the Conunssion An individual may request a hearing to attempt to prove suitability to the Commission by serving
Missouri Gaming Commission 1996Annual Reporl- Page 13
such a request on the commissions Executive Director The following is a list of pending litigation
Petitioner Venue
Bingo Systems amp Supply AHC Cape Girardeau Elks Lodge 639 AHC Cape Girardeau VFW Post 3838 AHC Edwin Pete Rhodes AHC Ideal Bingo Supplies Inc AHC Mary Cracchiolo AHC Maureen L Scott AHC Meramec-Amold Eagles Auxiliary AHC Myron B Carter Sr AHC Pan-Education Institute AHC Raymond J Drury AHC Raytown Women of Today AHC Sandra Termini AHC Stanley L Turner AHC Missouri Gaming Co ~Disc Action MGC Harrahs -Disciplinary Action MGC Boyd Kansas City Inc -Disc Action MGC Jeffery Koester -Denied License MGC Gary Franklin -Denied License MGC Mark Zwolle -Disciplinary Action MGC Anthony Civella -Exclusion MGC Peter Simone -Exclusion MGC Yolanda Nettles MGC Tracy Anderson MGC Carrie Gentry MGC Jimmie B Carsey MGC Cape Girardeau Elks amp VFW Circuit Court ofCape Girardeau County MGC v Veterans Commission
st Louis Public Schools Missouri Supreme Court W Todd Akin v MGC Missouri Supreme Court William D Cmmnisano Jr Missouri Court ofAppeals-Western District Pen-Yan Investment Inc Missouri Court ofAppeals-Western District
SUMMARY OF PENDING LITIGATION
There are fourteen bingo cases pending in the Administrative Hearing Commission
There are three disciplinary cases at the Commission level against gaming licensees pending the outcome ofPen-Yon Investment Inc v Boyd Kansas City Inc and MGC
Pen-Yon Investment Inc v Boyd Kansas City Inc MGC is pending in the Missouri Court ofAppeals Western District regarding disciplinary action taken against Boyd for associating in business affairs with a person who has a felony police record The Commission imposed a fine against Boyd and prohibited Boyd from collecting or distributing any funds from the machines under its service agreement with Pen-Yan
MGC v Missouri Veterans Commission St Louis Public Schools is pending in the Missouri Supreme Court regarding funds received from fmes imposed by the Commission
In W Todd Akin et 01 v MGC the Circuit Court ofCole County ruled in favor of the commission on summary judgment The suit challenges the Commissions authority to grant or deny Harrahs Maryland Heights Corp and Players Maryland Heights LP a license for a continuously docked excursion gambling boat within a man-made basin filled by water from the Mississippi River The petitioners have appealed and the matter is now before the Missouri Supreme Court
Cape Girardeau Elks Lodge et aI v MGC is pending in the Circuit Court of Cape Girardeau County regarding the Commissions decision to suspend the Cape Girardeau Elks Lodge bingo license
In the Matler oWilliam D Cammisano Jr there is an appeal pending in the Missouri Court ofAppeals Western District regarding the Commissions decision to place Mr Cammisano on its List of Excluded Persons
MISSOURI GAMING COMMISSIONS EXCLUSION LIST
The Missouri Gaming Commissionplaced two individuals in 1994 two individuals in 1995 and two individuals in 1996 on the commissions Exclusion List Placement of these individuals on the Exclusion List has been based on prior convictions
As a result of placement on the Exclusion List each individual shall not be permitted eoby into any portion of a riverboat gaming operation within the state ofMissouri and shall be ejected ifdiscovered on such premises Furthermore Excluded Persons shall be prohibited from contact of any kind with Missouri riverboat gaming operations Persons placed on the Listmay file a written petition with the Commission to request a hearing to have their name
JlrJissOIlri Gaming Commission 1996 Annual Report - Page 14
removed from the Exclusion List Currentlyone individual has appealed to the Western District of Missouri and two otbers are pending hearings by the Missouri Gaming Commission
MISSOURI GAMING COMMISSIONS DISCIPLINARY ACTIONS AGAINSTOCCUPATIONAL LICENSEES
The Missouri Gaming Commission has taken disciplinary action against twenty-eight occupational licensees as of September 30 1996 Preliminary
Orders for Disciplinary Action set forth statements of fact that support the proposed disciplinary action and the regulatory and statutory sections involved Individuals may request a hearing by serving such a request on the Commissions Executive Director Currently four individuals have sought hearings before the Commission one ofwhich is stm pending
Occupational License Denials 1994-1996
40
l 30
lt0 c Q)
0 lt5 20 i-Q) 0 E ~ 10
o Year Licenses 1994 1995 1996 IiiI Licenses Denials 1 13 35
Voluntary Exclusions On December 30 1996 after six months of research and consultation the
commission established a unique program to combat problem gambling The List of Disassociated Persons is the result of many months ofconsultation with treatment professionals that help problem gamblers The program allows problem gamblers to exclude themselves from Missouri riverboat casinos under the threat ofarrest for trespassing
In exchange for agreeing not to patronize Missouri riverboat casinos the problem gambler is removed from all casino mailing lists and direct marketing promotions In addition the operators are required to deny persons on the List check cashing privileges and must take away their VIP or players club card
Treatment professionals have advised the commission that the only way for a problem gambler to get help is to admit that heshe has a problem and to accept personal responsibility for that problem by seeking treatment
The Disassociated Persons program is a valuable tool in addressing problem gambling because it requires the individual to admit to having a gambling problem to agree to seek treatment and stay away from gambling casinos Furthermore it includes severe consequences if the problem gambler succumbs to the temptation to gamble Moreover it offers some protection to the problem gambler from the marketing promotions that encourage people to visit the casino properties
The program operates in the following manner
~ The problem gambler must obtain an application for placement on the List ofDisassociated Persons from the commission
~ the application contains various information about the individual an admission that the person is a problem gambler and agrees to stay off Missouri riverboats and seek treatment an authorization to release this information to riverboat operators as well as a Waiver releasing the commission and the licensee from any liability associated with enforcing the rules of the program
~ the application must be personally presented to a commission agent at which time the information is verified and the rules of the program are explained
~ the application is a closed record and its contents may only be disclosed to necessary commission and riverboat personnel
~ the commission considers all applications in closed session
~ once a person is placed on the List heshe cannot petition for removal After consulting with treatment professionals the commission concluded that problem gambling requires lifetime treatment and therefore there is no procedure for removal from the List
Missouri is the frrst jurisdiction in the world to propose a program such as this We will continue to monitor and refme the program and look forward to reporting to you on its impact in next years annual report
ft-Iissouri Gaming CommissiOil 1996 Annual Report - Page 16
Brief Timeline of Riverboat Gaming in Missouri ~ May 13 1991 - General Assembly passes House Bill 149 which authorized
referendum to be submitted to the voters in the November 1992 election to determine whether the State Tourism Commission shall have the power to issue riverboat gambling licenses
gt November 31992 - Missouri voters pass referendum allowing riverboat gaming with a majority ofnearly 63
gt January 1993 - Governor Carnahan announces intentions to push legislation creating an independent Gaming Commission to oversee riverboat gambling
April 29 1993 -- SBs 10 amp 11 creating the Missouri Gaming Commission are signed into law by Governor Carnahan and five Commissioners are appointed Robert Wolfson Chairman Robert Clayton William Quinn Dr Jenice Stewart and Avis Tucker
gt April 30 1993 -- Troy Harris et al v The Missouri Gaming Commission amended petition is filed The petition challenges the constitutionality of Senate Bills 10 amp II
gt- May 17 1993 -- The Missouri Gaming Commission holds its first meeting
~ September 1 1993 -- Proposed Rules and EmergencY Rules are adopted
gt September 20 1993 - 19 riverboat gaming license applications are filed with the commission
gt September 20 1993 - Clarence E Mel Fisher hired as Deputy Director for Enforcement
gt September 24 1993 - Commission contracts with the Internal Revenue Service to perform fmancial investigations for the commission Four IRS agents are assigned to the commission
~ September 28 1993 - Commissions enters into and inter-agency agreement with the Missouri State Highway Patrol to provide enforcement services for the commission
~ October I 1993 - Debbie Ferguson joins the commission as Deputy Director for Administration
November 3 1993 - Commission hires Tom Irwin as Executive Director and Kevin Mullally as Deputy Director for Legal amp Legislative Affairs
November 30 1993 -- Commission announces that it will begin background investigations on the following companies President Riverboat Casino-Missouri St Charles Riverfront Station Inc S1 Joseph Riverboat Partners The Missouri Gaming Company GDC (Supplier) IGT (Supplier) Casino Tokens (Supplier) Paul-Son Dice amp Card Company (Supplier)
gt December 22 1993 - Governor Carnahan signs Executive Order 93-50 designating the enforcement section ofthe Missouri Gaming Commission as a criminal justice agency
1994
gt January 25 1994 -- Missouri Supreme Court in Troy Harris v Missouri Gaming Commission strikes down games of chance including slot machines The court ruled that the Commission did have the authority to issue licenses to riverboat where games ofskill are played Specifically mentioned as games ofskill are poker and blackjack The Court remanded six games to lower court for determination as to whether they are games of skill or chance baccarat craps roulette wheel klondike table faro layout and video games ofchance
~ February 1 1994 -- Rules and Regnlations become effective
February 7 1994 -- Legislature passes resolution to place constitutional amendment on the ballot which would allow the legislature to approve games of chance (slot machines) on riverboats and floating facilities on the Missouri and Mississippi Rivers
gt- April 5 1994 -- Voters defeat constitutional amendment allowing games of chance (slot machines) by an unofficial count of 1263 votes
~ April 29 1994 - Finding of Preliminary Suitability issued to President Riverboat Casino S1 Charles Riverfront Station St Joseph Riverboat Partners and The Missouri Gaming Company
Missouri Gaming Commission 1996 AnnualReport - Page 17
Brief Timeline of Riverboat Gaming in Missouri ~ May 20 1994 -- Governor signs into law SB 740 which defmes games of
chance and enacts more stringent ethics provisions The bill also allows the commission to license a barge in an artificial basin as an excursion gambling boat if it can be demonstrated that safely concerns prevent an operator from cruising from that location
~ May 27 1994 - Commission authorizes as games of skin the following Blackjack Caribbean Stud Poker Poker Double Down Stud Poker Pia Gow Poker Poker Texas Hold Em the video representations ofthese games and Craps
gt May 27 1994 -- Commission authorizes President Riverboat Casino-Missouri to operate the Admiral as a continuously docked excursion gambling boat because cruising would cause danger to the boats passengers
gt May 27 1994 -- Gaming Commission issues first two excursion gambling boat licenses to President Riverboat Casino in st Louis and St Charles Riverfront Station in st Charles
gt May 27 1994 -- Initiative petition tbat would allow voters to approve games ofchance is submitted to the Secretary of State for approval of the form ofthe petition
~ June 6 1994 -- Secretary ofState notifies referendum petitioners that the Attorney General has approved the form of their petition The Secretary of State prepared the following petition title that was approved by the Attorney General
Shall the General Assembly be authorized to permit only upon the Mississippi River and the Missouri River lotteries gift enterprises and games ofchance to be conducted on excursion gambling boats and floating facilities
gt June 9 1994 -- Commission prioritizes Aztar Missouri Corporation Boyd Kansas City Inc and Harrahs North Kansas City as companies to be investigated for licensure pursuant to 11 CSR 45-4060
gt June 22 1994 -- Gaming Commission issues licenses to St Joseph Riverboat Partners in St Joseph and The Missouri Gaming Company in Riverside
~ September 20 1994 -- Commission issues a fmding ofpreliminary suitability to Harrahs North Kansas City Corporation
gt September 20 1994 -- Commission authorizes Harrahs North Kansas City Corporation and st Charles Riverfront Stationl to operate excursion gamblillg boats as continuously docked vessels In both cases the commission found that operating a cruising vessel from the proposed site would cause danger to the boats passengers and the project will generate permanent job creation and land-based development
gt September 22 1994 -- Harrahs North Kansas City Corporation is issued an excursion gambling boat license
gt September 28 1994 - Public hearing regarding Capitol Queen and Casino Jncs application for an excursion gambling boat license results in the commission denying CQCs license and prohibiting them from reapplying for two years
gt October 7 1994 - Commission places William D Cammisano Jr and John Termini on its list of excluded persons
gt November 8 1994 -- Voters approve games ofchance
~ December 9 1994 - Games ofchance are allowed on riverboats
gt December 27 1994 - St Charles Riverfront Station is issued a license to operate the St Charles II as an excursion gambling boat This marks the fIrSt time the commission has licensed a second excursion gambling boat for a single development
The approval was for St Charles Riverfront Stations second boat The flTSt boat continued to cruise until April 16 1996
Missouri Gaming Commission 1996 Annual Report - Page 18
Brief Timeline of Riverboat Gaming in Missouri 1995
)gt- February 22 1995 -- Commission announces it will begin background investigation on Hilton Kansas City Corporation for an excursion gambling boat license
~ March 30 1995 - State Auditor releases final audit report of the Missouri Gaming Commission No major deficiencies are noted
~ April 20 1995 - Commission repays $3 million start-up loan to state general revenue fund
)gt- April 25 1995 - Commission approves continuous docking petitions for Boyd Kansas City Inc and Hilton Kansas City Corporation
~ April 25 1995 -- The commission issues a finding ofpreliminary suitability to Aztar Missouri Gaming Corporation
~ April 26 1995 -- The commission issues an excursion gambling boat license to Aztar Missouri Gaming Corporation in Caruthersville Missouri
)gt- May 24 1995 - The commission announces it will begin background investigations on the following companies Harrahs Maryland Heights Corporation Kansas City Station Inc Players Maryland Heights Inc
gt August 28 1995 - Pursuant to House Bill 574 the duties of the Missouri Horse Racing Commission are transferred to the Gaming Commission
~ September 12 1995 - The commission issues a fmding of preliminary suitability to Boyd Kansas City Inc
September 13 1995 - The commission grants the petition ofHarrahs Maryland Heights Corporation and Players Maryland Heights Inc to operate continuously docked excursion gambling boats at their joint venture in Maryland Heights
)gt- September 13 1995 - The commission issues an excursion gambling boat license to Boyd Kansas City Inc
)gtshy November 16 1995 shy The commission fines the following companies for associating with either socially or in business affairs persons with felony police records or persons with a notorious or unsavory reputation Boyd Kansas City Inc Harrahs North Kansas City Corporation The Missouri Gaming Company
1996
)gtshy February 15 1996 - The commission grants continuous docking rights to Aztar Missouri Gaming Corporation for a second boat in Caruthersville Harrahs North Kansas City for a second boat and Kansas City Station Corporation for two boats in Kansas City
~ April 16 1996 - The commission grants continuous docking rights to Argosy in Riverside Missouri S1 Joseph Riverboat Partners and 81 Charles Riverfront Station
~ May 15 1996 - The commission issues a license to Harrahs North Kansas City for the Lucky Star This is the second boat at the Harrahs North Kansas City mcility Included in the project is a 200-room hotel expanded parking and meeting space
~ June 19 1996 -- The commission places William Canunisano Jr on Exclusion List
~ June 27 1996 - The commission places Peter Simone and Anthony T Civella on Exclusion List
August 28 1996 - The commission takes disciplinary action against Boyd Kansas City Inc for periodic failure to take and report turnstile readings
~ October II 1996 - The commission issues a finding of prel iminary suitability to Hilton Kansas City Corporation and Flamingo Hilton Riverboat Casino LoP
October 18 1996 - TIle commission issues a Class B riverboat gambling license 10 HUlon KlIlIStIS City Corporation and a CltlSs A riverboat gambling license 10 Flamingo Hillon Riverboat CtlSino LP
Missouri Gaming Commission 1996Annual Report - Page 19
Outline of a Background Investigation
Review Application fin Completeneiis
~ Establish number ofkey people
~ Check disclosure forms for completeness
gt Check tax release forms
City Selection Process
~ Contact city to determine how the gaming operator was selected
gt Interview Mayor and City Council members
~ Ifa steering committee was used interview members of that committee
Determine ifany city officials own stock in the selected gaming company
~ Obtain minutes ofcouncil meetings that pertain to riverboat issues (a)selection (b) resolution and (c) ordinance
gt Contact city attorney who handled negotiations with gaming company and obtain correspondence between city and gaming company
~ Contact City Economic Development Director (if applicable)
Docksite
gt- Land selected for gaming operation
J Who was it purchased from (how long have they owned the property) J Price (copy ofcontract)J Copy of plat map and legal description J Determine ifany ofcity officials or selection committee members have
ownership interest in docksite
gt Corps ofEngineers Permit
J Status
J Any concerns by Corps J Wetlands involved
~ Contact DNR for any known concerns in area
gt Check with city for any known dwnpsites with possible hazardous material
gt Developmental agreement between city and gaming operator (obtain copy from city)
gt Detennine if development is feasible
J Is support facility land based or floating J Projected nwnber ofjobs economic aid to area J Traffic flow to area - what improvements are needed - who will pay
for improvements
Riverboat
gt Locate boat and obtain all infonnation about boat (cruise schedule liability carrier)
gt Establish design ofriverboat
gt Determine emergency medical plan for boat
gt Determine ifCoast Guard and other safety requirements have been met
Gaming Operator (Public Corporation Partnership Private Company)
gt Establish contact person with operator
J Determine attorney of record for gaming company J Any missing items from application advise contact person
gt Establish home office (Financial Headquarters)
J Determine a good date and location where all key people can be contacted for a personal interview
J Where can financial record be located
Missouri Gaming Commission 1996Annual Report - Page 20
~
Outline of a Background Investigation
J Breakdown ofmanagement (corporate Board ofDirectors major stockholders)
J Establish flow chart of key people and companies owned by gaming operator
~ Investigation ofKey People will include but not be limited to the following
J Check previous employment work records J Check state local and federal intelligence files J Check for other gaming licenses ifapplicable (check with appropriate
regulators)J Check state federal and local courts for any civil litigation J Check for any arrest record J Check personal and business credit J Check state and local tax status IRS will handle federal taxes
gt Other locations ofgaming operations (currently operating and pending locations)
J Contact gaming regulators for respective locations J Travel to sites to view operations
Establish a file for all key people investigated with summaries establish a file for financial records with summary offinancial viability ofcompany and ability to complete obligations to the city and State ofMissouri Establish a file for other locations of licensure along with summary
Associated Investigations
gt All allegations of Any nature must be investigated and a file established with a written summary
~ Associated investigations must be done in a complete and thorough manner and all reports written accurately
gt Upon completion ofall investigations complete reports and summaries a separate press releasable summary must be written This summary must be approved by Gaming Commission legal staff
Missouri Gaming Commission 1996 Annual Report - Page 21
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Missouri Gaming Commission Compliance Audit Objectives for Licensees
ObjectiveAudit Area ~~~~~~~~~
To ensure accuracy of ticket and turnstile counts reported to MGC including compsIVlPs stayovers and promotions
Table Games
Ticketffurnstile
To ensure accuracy of AGR for table games reported to MGC
Electronic Games To ensure accuracy of AGR for electronic games reported to MGC
Cage Accowltability To ensure accuracy ofcage accountability forms and compliance with internal controls and tax reporting regulations
Observations Cage Main Bank Pit Area Slot Area Turnstile Ticketing
PurchaselRedemptions
$500 Loss Limit
Stayover Procedures
To determine that cashiers are complying with internal controls for chips tokens gaming scrip and cash
To determine compliance with MO statutes and internal controls
To determine compliance with MGC regulations and internal controls
To ensure that manual jackpot payouts are properly handled and the required tax fomIS are completed Manual Jackpot Payouts
To ensure that hopper fills are properly handled and comply with internal controls Hopper Fills
To ensure that table fills are properly handled and comply with internal cootrols Table Fills
To ensure that table credits are properly handled and comply with internal controls Table Credits
To ensure that tracking procedures comply with internal controls and the currency transactions are properly completed Patron TrackingCurrency Transaction Reporting
Imprest Bank Balancing To ensure that proper balancing and accountability is performed during a shift change
Coin Vault To ensure proper maintenance of coin chip and token inventory
Satellite CageSSlot Booths To ensure compliance with internal controls and consistency with main cage procedures
TipsGratuities To ensure compliance with MGC regulations and internal controls
Cage AccessSecurity To ensure compliance with internal controls
Turnstile To ensure accuracy of turnstile count for admissions tax calculation
Ticketing To ensure comp Hance with internal controls and proper handling of stubs voids and issuance
MiscellaneousOther
Surveillance Tapes To review activity for hard soft and tip counts and drops to verify compliance with internal controls
Workpaper Preparation and To establish standardized procedures for MGC audit workpapers and audit reports Audit Reports
-
Missouri Gaming Commission 1996 AnnualReport - Page 22
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Audit Area
Monthly Financial Statement Review
Engagement Letters
Objective --shy
To perform a preliminary review ofmonthly financial statement information for proper completion of fmandal statement templates verification ofadjusted gross receipts to MGC reports and to detect any unusual items which justifY further review when conducting on-site audit
To give advance notification to each boat of the date and scope ofaudit being performed
Financial Statement Verification To determine consistency ofmonthly financial statement information submitted to MGC with boats general ledger system
Balance Sheet Accounts
CashCash Reserve Balance
Cash Receipts
Cash Disbursements
shy -- shy
To determine the existence consistency and fair presentation of the cash balance on the monthly fmancial statements
To determine the consistency and filir presentation of the cash balance on the monthly financial statements and the source of large cash receipts other than gaming revenue
___I
To determine the consistency and fair presentation of the cash balance on the monthly fmancial statements and to trace the outflow of large cash disbursements
i
I
--
AccountslN Notes Receivable
Accrued Admission and Gaming Tax Liability
Chip and Token Liability
Progressive Jackpot Liability
To determine the consistency and fair presentation of the accounts receivable andor notes receivable balance in the monthly fmancial statements
To determine the consistency and fair presentation of the accrued admissiongaming tax liability balance in the monthly financial statements
To determine the consistency and fair presentation of the chip and token liability balance in the monthly financial statements
To determine the consistency and fair presentation of the progressive jackpot liability balance in the monthly fmancial statements
---shy
Tips and Gratuities (Accrued Liability)
Customer Deposit Liability
Accounts Payable
Income Statement Accounts
Revenne - Table Games
To determine the consistency and fair presentation of the accrued tips and gratuities liability in the monthly fmancial statements
-lt ---- shy
To determine the consistency and fair presentation of the customer deposit liabilities in the monthly fiscal statements To determine the consistency and fair presentation ofaccounts payable balance in the monthly fmancial statements
--shy
To determine the consistency and fair presentation of table games revenue as reported to MGC daily and in the monthly fmandal statements
Revenue - Electronic Games To determine the consistency and fair presentation of electronic games revenue as reported to MGC daily and in the monthly financial statements
Missouri Gaming Commission 1996 Annual Report - Page 23
------------
---------
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Revenue - Admissions To detennine the consistency and fair presentation ofadmissions revenue as reported to MGC daily and in the monthly fmancial statements
Promotional Expense To determine that comps are properly recorded as expenses and not deducted from revenue in accordance with GAAP
Pre-Opening Costs To determine whether certain pre-opening and licensing costs are properly expensed or amortized over future periods in accordance with GAAP
Workpaper Preparation and Audit Reports To establish standardized procedures for MGC audit workpapers and audit reports
AissOllri Gamillg Commission 1996 Anllual Report - Page 24
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AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
c
Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
----shy
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o
Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
raquo
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-c
CD
J
C _
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c
I IAztar Missouri Corporation
r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
j i
1
J
1 I l
I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
~
Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
for an entertainment experience Gaming is an entertainment industry In the entertainment industry the consumers demand a product that they can enjoy during their leisure time on their own terms
In Missouri there are consumers that indicate they dislike the product which they are being offered Many of these conswners will go out of their way even travel to another state to fmd a product that is more user friendly A cursory survey of the license plates in the parking lot I)fthe Casino Queen in East 8t Louis Illinois adequately demonstrates this point
Many Missouri gaming customers complain that the loss limit is inconvenient intrusive and that it detracts from the entertainment experience they seek at Missouri riverboats To have to account for ones spending during what is supposed to be a leisure activity strikes many as a personal encroachment The fact that this requirement is imposed and enforced by the government further aggravates this perception
Many Missouri consumers react to this restriction by taking their leisure time and tax dollars across the border to JIlinois Iowa or Kansas where there are no limits Furthermore it is apparent that the loss limit severely restricts Missouri riverboat operators from drawing tourist customers from other states Consumers choice as to how to spend their discretionary leisure dollars is evident in the competitive gaming arena
The Missouri gaming law was adopted by the people for its potential to generate economic development its ability to raise needed revenue for education and because it is a leisure activity that many want to pursue The loss limit detracts from aU of these goals While Missouri is currently the beneficiary ofa significant amount of capital investment and new job creation the continuing negative impact of the loss limit renders our economic future in this area uncertain Because of the loss limit Missouri riverboat operators are less competitive the state is losing money to its neighboring states there is a reduction in the number of available jobs and the number of riverboats that can successfully operate in Missouri is restricted
Tax revenues from gaming have benefited education While tax revenues from gaming are still growing after only two years Missouri has seen
~ -
How does the Loss Linlit Work
Pursuant to sect 313805 RSMo the commission is required to regulate the wagering structure to include a maximum loss of five hundred dollars per individual player per gambling excursion In order to enforce this provision the commission requires the following procedure
I In order to board an exctrrsion gambling boat a customer most stand in line to obtain a ptrrchase authorization coupon (scrip) This scrip must be signed by the customer in the presence of a licensed riverboat employee
2 After the customer receives the scrip heshe must get in another line to board the riverboat The scrip also serves as the customers boarding pass
3 The scrip which is time and date stamped must be printed with boxes of denominations ofwhich the total ofall boxes shall not exceed $500 These boxes shall be canceled by pennanent black marker at the time the patron presents the scrip in the riverboat casino lfthe scrip is not signed at the time of presentment or the date and time are not valid the scrip shall be confiscated from the customer If the scrip is valid and there are sufficient available boxes the cashier shall cancel the appropriate number of boxes with a pennanent black marker and complete the transaction
4 In a situation where a customer wishes to buy chips at a table the procedtrre is the same except that the dealer stops the game to execute the transaction On many occasions the use of the scrip to convert cash to chips will slow up the game This is another example of customer dissatisfaction arismg out of the process
Transcript Missouri gaming commission meeting November 25 1996 pages 8 II and 1~17 (Bruce Turner Salomon Brothers) pages 44-46 (Joe Coccimiglio Prodential Securities) pages 57-58 (Tom Ryan Bankers Trust) pages 65-68 (Larry Klatzkin Donaldson Lufkin ampJenrette) pages 84-90 (Richard Byrne Merrill Lynch)
Missouri Garning Commission 1996 Annual Report - Page 4
Win Per Admission CoJql8ring Mssouri and IIhlls
those revenues fall short ofpredictions Analysts from Wall Street tell the commission that we are exporting our tax dollars to other states In a recent commission meeting regarding market size a well respected gaming analyst opined that while Missouri supplies 73 ofthe gaming market in the S1 Louis area it captures only 50 ofthe revenue Z
Finally the gaming experience ofconsumers who do visit Missouri gaming operators is less desirable than the experience offered by competitive states Missouri is offering a more cumbersome and less enjoyable product The commission believes that the gaming policy for Missouri should retain the Missouri dollars in Missouri and attract dollars from other states Our current policy has the exact opposite result
The Costs 0Competitive Ineriority
Limiting the ability ofMissouri operators to offer a competitive entertainment product has direct economic costs which are easily illustrated Missouri gaming riverboats are larger more luxurious and offer more non-gaming amenities than competitors in neighboring states Yet they fail to compete in economic terms even though the bulk ofthe popUlation seeking the entertainment product lives in Missouri
For example the Casino Queen in East St Louis Illinois and the Alton Belle in Alton Illinois combined have less capital investment than St Charles Riverfront Station which has consistently expanded and reinvested since it opened in May 1994 In addition these Illinois gaming facilities consist primarily of parking facilities and the gaming casino They offer no non-gaming amenities other than limited restaurant facilities
In spite of these negative competitive factors the two Illinois facilities regularly outperform SCRS in spending per customer Similarly Illinois riverboats in the St Louis area fare significantly better in gaming revenue per square foot gaming revenue per position and admissions per square foot One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
pages 104-106 (John Maxwell Standard amp Poors) and pages 115-118 (Steve Schneider Stife Nicoaus) See also Minutes ofMissouri gaming commission meeting May 24 1995
Missouri Gaming Commission minutes November 25 1996page 27 quoting Jason Ader Bear Stems gaming analyst Examples ofsome of the non-gaming amenities included in Missouri projects include themed restaurants movie theaters botels meeting space retail shopping child
care centers micro breweries an 18th century railroad car restored to its original luxury fountain displays and theaters for live entertainment
Missouri Gaming Commission 1996Annual Report - Page 5
2
The Problem is Clear - How does Missouri Address the Problem
Missouri statutes require the commission to report annually to the Governor and the General Assembly on the competitive state of the gaming industry in Missouri For two years the commission has advised the General Assembly that we believe that there could be a problem with the structure of the gaming industry but that the data is incomplete However we now fmd the data to be clear and compelling A problem exists in the Missouri gaming industry -- the gaming product is not competitive with our neighboring states This will create negative economic results and lower tax revenues
Due to navigational safety constraints most Missouri riverboats do not cruise It has been suggested by gaming analyst and by legislation filed in prior years that the elimination of the boarding time restrictions will help Missouri gaming operators economically and be more consumer friendly The commission believes that the current boarding time restrictions are detrimental to the consumer and make little sense since the riverboats are not leaving the dock They are an artificial barrier to entry and participation Yet the boarding times are essential to enforcing the loss limit A change in the statutes which
3(()
21)Q
i a
OIl
eliminates the boarding times but maintains the loss limit would make the enforcement of the loss limit impossible
Findings
Current Missouri statutes are not competitive with our adjoining states Consequently Missouri is at a competitive disadvantage Repealing the loss limit would make the Missouri operators more competitive Without this change the Missouri gaming industry will continue to be at a competitive disadvantage and over time will decline rather than prosper
Conclusioll
Section 313837 RSMo requires the commission to report annually to the general assembly on the effects ofthe loss limit on the competitiveness of the gaming industry in Missouri The findings above are intended to satisfy this statutory mandate The enactment of any changes in policy as a result of these findings are obviously the purview of the General Assembly and the Governor
Missouri Gaming Commission 1996Annual Report - Page 6
Effect of Tax Rate on Competitiveness
The Missouri tax rate currently mirrors that of its principle competitor the State of Illinois The MissourilIlIinois tax rate consists of a 20 base tax on adjusted gross receipts (AGR) In Missouri 10 of that tax (or 2 of AGR) is a local tax imposed by state statute The funds collected from this local tax are allocated to the home dock city or county fur services necessary for the safety of the public visiting the excursion gambling boat The remaining tax on AGR (18 of gross receipts) is placed in the Gaming Proceeds for Education Fund and may be spent only for public elementary secondary and higher education
Iowa has a graduated tax tbat caps out at 20 for adjusted gross receipts over $3 million Because the graduated rate reaches its cap at the relatively low ceiling 0pound$3 million Iowas effective tax rate is not significantly
The state of Kansas has recently allowed casinos operated by native American Indians These casinos are not taxed
For your future reference a table is contained in Appendix B setting forth the tax rate in each gaming jurisdiction and the regulatory restrictions that are imposed The chart below is a generalization of the tax rates in the various gaming jurisdictions Because of the subtleties of each states tax law it is difficult to precisely chart the rates For a defmitive explanation of the tax rates refer to the aforementioned chart in Appendix B
The Commission does not feel that the 20010 tax rate currently places our licensees at a competitive disadvantage The commission will continue to monitor the performance of all licensees and report developments as they occur
different from that of Missouri and Illinois
Licensees are also responsible for a $2 admission fee for each person who participates in a gaming excursion One dollar of this fee is remitted to the home dock city or county The remaining dollar is used to fund the regulatory activities of the Commission No general revenue is used for any activity of the Commission In addition to the $2 admission fee the gaming boat is billed monthly for the full cost of the enforcement agents assigned to the boat Either through fees or direct billing the gaming operators pay for the full cost of their own regulation
The State of Mississippi assesses a tax of 12 on AGR Unlike Illinois who is limited to licensing 10 gaming operations Mississippi has not limited the number of casinos licensed but has licensed all applicants that have been found suitable The Missouri law does not specifically limit the number of licenses that may be issued but places this responsibility in the hands of the Commission through a best interests of Missouri standard
Comparison of Gaming Tax Rates TaxonAGR
25
20 m ma )(
15 IImTaxRaeJ ~ 10
5
0 NV NJ LA
----------------------------------
MS IL IN IA MO CO so State
Missouri Gamilg Commission 1996Annual Report - Page 7
Missouri Gaming Commission Contributions to Education
Fiscal Year 1995
Gaming Proceeds for Education $ 5661628204
Bingo Tax Proceeds for Education $ 625370396
FY95 Tax Revenue from Gaming $6286998600
Fiscal Year 1996
Gaming Proceeds for Education $9973032067
Bingo Tax Proceeds for Education $ 468417852
FY 96 Tax Revenue from Gaming $10441449919
Total Tax Revenue from Gaming 516728448519
Does the GamblingMoneYiReallyGoo Fund Education
This may be the question inostfrequently asked ofpublic officials The simple answer is yes it does Pursuant to aconstitution~lamendntent passed by theGeneraIAssemblyasSJk 20 in 1992 andapproved bythe voters in a subsequent general electionmiddotall state tax money derived from the proceeds ofgamblirigisspent on education
The text ofthisconstitutional provision contained inArtiete 1lISection 39(d) reads as follows
All state revenues derived from the conduct ofaUgaming activities as are now or hereafter authorized by thiscomtitution orbyJaw unless otherwise provided bylaw on the ~ffectivedateofthissectionshallbemiddot appropriated beginoingJuly 1193solely for the pl1blic instittitions of elementary secondary and higheredueatioll and shaH~ot be included within the defmitionoftotal staterevenues in sectioid 7ofarticle X of this constitution
The tax revenues derivedfimnthe proceeds ofgambling foifiscalyeart998 are estimated to be $155 millionmiddot In ~d~itionto thegamblingm~neymiddot traditional stategeneralrevelluefundingfor publicschoo~ bas Uicreased every year since riverboatgillllblingwasenacted Thetotalstatebudget for educationwhichrepresents approximately 50of the average local school budget is $2965 billion Theg~~lIDgnlOney was designedtoslipplel1lent not replace the primatySufCeS ofpqb lie school fuDding[befunds derived from gambling have be~nusedfortheOiltstandingSchools TtilStFundthemiddotmiddot SchoolDistrict Bond Fund fotmainteniuiceandcapital exp~nclilures for public colleges and universities and to supplcentmenttheschool foundlltionmiddot formula
Missouri Gaming Commission 1996 Annual Report - Page 8
for an entertainment experience Gaming is an entertainment industry In the entertainment industry the consumers demand a product that they can enjoy during their leisure time on their own terms
In Missouri there are consumers that indicate they dislike the product which they are being offered Many of these conswners will go out of their way even travel to another state to fmd a product that is more user friendly A cursory survey of the license plates in the parking lot I)fthe Casino Queen in East 8t Louis Illinois adequately demonstrates this point
Many Missouri gaming customers complain that the loss limit is inconvenient intrusive and that it detracts from the entertainment experience they seek at Missouri riverboats To have to account for ones spending during what is supposed to be a leisure activity strikes many as a personal encroachment The fact that this requirement is imposed and enforced by the government further aggravates this perception
Many Missouri consumers react to this restriction by taking their leisure time and tax dollars across the border to JIlinois Iowa or Kansas where there are no limits Furthermore it is apparent that the loss limit severely restricts Missouri riverboat operators from drawing tourist customers from other states Consumers choice as to how to spend their discretionary leisure dollars is evident in the competitive gaming arena
The Missouri gaming law was adopted by the people for its potential to generate economic development its ability to raise needed revenue for education and because it is a leisure activity that many want to pursue The loss limit detracts from aU of these goals While Missouri is currently the beneficiary ofa significant amount of capital investment and new job creation the continuing negative impact of the loss limit renders our economic future in this area uncertain Because of the loss limit Missouri riverboat operators are less competitive the state is losing money to its neighboring states there is a reduction in the number of available jobs and the number of riverboats that can successfully operate in Missouri is restricted
Tax revenues from gaming have benefited education While tax revenues from gaming are still growing after only two years Missouri has seen
~ -
How does the Loss Linlit Work
Pursuant to sect 313805 RSMo the commission is required to regulate the wagering structure to include a maximum loss of five hundred dollars per individual player per gambling excursion In order to enforce this provision the commission requires the following procedure
I In order to board an exctrrsion gambling boat a customer most stand in line to obtain a ptrrchase authorization coupon (scrip) This scrip must be signed by the customer in the presence of a licensed riverboat employee
2 After the customer receives the scrip heshe must get in another line to board the riverboat The scrip also serves as the customers boarding pass
3 The scrip which is time and date stamped must be printed with boxes of denominations ofwhich the total ofall boxes shall not exceed $500 These boxes shall be canceled by pennanent black marker at the time the patron presents the scrip in the riverboat casino lfthe scrip is not signed at the time of presentment or the date and time are not valid the scrip shall be confiscated from the customer If the scrip is valid and there are sufficient available boxes the cashier shall cancel the appropriate number of boxes with a pennanent black marker and complete the transaction
4 In a situation where a customer wishes to buy chips at a table the procedtrre is the same except that the dealer stops the game to execute the transaction On many occasions the use of the scrip to convert cash to chips will slow up the game This is another example of customer dissatisfaction arismg out of the process
Transcript Missouri gaming commission meeting November 25 1996 pages 8 II and 1~17 (Bruce Turner Salomon Brothers) pages 44-46 (Joe Coccimiglio Prodential Securities) pages 57-58 (Tom Ryan Bankers Trust) pages 65-68 (Larry Klatzkin Donaldson Lufkin ampJenrette) pages 84-90 (Richard Byrne Merrill Lynch)
Missouri Garning Commission 1996 Annual Report - Page 4
Win Per Admission CoJql8ring Mssouri and IIhlls
those revenues fall short ofpredictions Analysts from Wall Street tell the commission that we are exporting our tax dollars to other states In a recent commission meeting regarding market size a well respected gaming analyst opined that while Missouri supplies 73 ofthe gaming market in the S1 Louis area it captures only 50 ofthe revenue Z
Finally the gaming experience ofconsumers who do visit Missouri gaming operators is less desirable than the experience offered by competitive states Missouri is offering a more cumbersome and less enjoyable product The commission believes that the gaming policy for Missouri should retain the Missouri dollars in Missouri and attract dollars from other states Our current policy has the exact opposite result
The Costs 0Competitive Ineriority
Limiting the ability ofMissouri operators to offer a competitive entertainment product has direct economic costs which are easily illustrated Missouri gaming riverboats are larger more luxurious and offer more non-gaming amenities than competitors in neighboring states Yet they fail to compete in economic terms even though the bulk ofthe popUlation seeking the entertainment product lives in Missouri
For example the Casino Queen in East St Louis Illinois and the Alton Belle in Alton Illinois combined have less capital investment than St Charles Riverfront Station which has consistently expanded and reinvested since it opened in May 1994 In addition these Illinois gaming facilities consist primarily of parking facilities and the gaming casino They offer no non-gaming amenities other than limited restaurant facilities
In spite of these negative competitive factors the two Illinois facilities regularly outperform SCRS in spending per customer Similarly Illinois riverboats in the St Louis area fare significantly better in gaming revenue per square foot gaming revenue per position and admissions per square foot One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
pages 104-106 (John Maxwell Standard amp Poors) and pages 115-118 (Steve Schneider Stife Nicoaus) See also Minutes ofMissouri gaming commission meeting May 24 1995
Missouri Gaming Commission minutes November 25 1996page 27 quoting Jason Ader Bear Stems gaming analyst Examples ofsome of the non-gaming amenities included in Missouri projects include themed restaurants movie theaters botels meeting space retail shopping child
care centers micro breweries an 18th century railroad car restored to its original luxury fountain displays and theaters for live entertainment
Missouri Gaming Commission 1996Annual Report - Page 5
2
The Problem is Clear - How does Missouri Address the Problem
Missouri statutes require the commission to report annually to the Governor and the General Assembly on the competitive state of the gaming industry in Missouri For two years the commission has advised the General Assembly that we believe that there could be a problem with the structure of the gaming industry but that the data is incomplete However we now fmd the data to be clear and compelling A problem exists in the Missouri gaming industry -- the gaming product is not competitive with our neighboring states This will create negative economic results and lower tax revenues
Due to navigational safety constraints most Missouri riverboats do not cruise It has been suggested by gaming analyst and by legislation filed in prior years that the elimination of the boarding time restrictions will help Missouri gaming operators economically and be more consumer friendly The commission believes that the current boarding time restrictions are detrimental to the consumer and make little sense since the riverboats are not leaving the dock They are an artificial barrier to entry and participation Yet the boarding times are essential to enforcing the loss limit A change in the statutes which
3(()
21)Q
i a
OIl
eliminates the boarding times but maintains the loss limit would make the enforcement of the loss limit impossible
Findings
Current Missouri statutes are not competitive with our adjoining states Consequently Missouri is at a competitive disadvantage Repealing the loss limit would make the Missouri operators more competitive Without this change the Missouri gaming industry will continue to be at a competitive disadvantage and over time will decline rather than prosper
Conclusioll
Section 313837 RSMo requires the commission to report annually to the general assembly on the effects ofthe loss limit on the competitiveness of the gaming industry in Missouri The findings above are intended to satisfy this statutory mandate The enactment of any changes in policy as a result of these findings are obviously the purview of the General Assembly and the Governor
Missouri Gaming Commission 1996Annual Report - Page 6
Effect of Tax Rate on Competitiveness
The Missouri tax rate currently mirrors that of its principle competitor the State of Illinois The MissourilIlIinois tax rate consists of a 20 base tax on adjusted gross receipts (AGR) In Missouri 10 of that tax (or 2 of AGR) is a local tax imposed by state statute The funds collected from this local tax are allocated to the home dock city or county fur services necessary for the safety of the public visiting the excursion gambling boat The remaining tax on AGR (18 of gross receipts) is placed in the Gaming Proceeds for Education Fund and may be spent only for public elementary secondary and higher education
Iowa has a graduated tax tbat caps out at 20 for adjusted gross receipts over $3 million Because the graduated rate reaches its cap at the relatively low ceiling 0pound$3 million Iowas effective tax rate is not significantly
The state of Kansas has recently allowed casinos operated by native American Indians These casinos are not taxed
For your future reference a table is contained in Appendix B setting forth the tax rate in each gaming jurisdiction and the regulatory restrictions that are imposed The chart below is a generalization of the tax rates in the various gaming jurisdictions Because of the subtleties of each states tax law it is difficult to precisely chart the rates For a defmitive explanation of the tax rates refer to the aforementioned chart in Appendix B
The Commission does not feel that the 20010 tax rate currently places our licensees at a competitive disadvantage The commission will continue to monitor the performance of all licensees and report developments as they occur
different from that of Missouri and Illinois
Licensees are also responsible for a $2 admission fee for each person who participates in a gaming excursion One dollar of this fee is remitted to the home dock city or county The remaining dollar is used to fund the regulatory activities of the Commission No general revenue is used for any activity of the Commission In addition to the $2 admission fee the gaming boat is billed monthly for the full cost of the enforcement agents assigned to the boat Either through fees or direct billing the gaming operators pay for the full cost of their own regulation
The State of Mississippi assesses a tax of 12 on AGR Unlike Illinois who is limited to licensing 10 gaming operations Mississippi has not limited the number of casinos licensed but has licensed all applicants that have been found suitable The Missouri law does not specifically limit the number of licenses that may be issued but places this responsibility in the hands of the Commission through a best interests of Missouri standard
Comparison of Gaming Tax Rates TaxonAGR
25
20 m ma )(
15 IImTaxRaeJ ~ 10
5
0 NV NJ LA
----------------------------------
MS IL IN IA MO CO so State
Missouri Gamilg Commission 1996Annual Report - Page 7
Missouri Gaming Commission Contributions to Education
Fiscal Year 1995
Gaming Proceeds for Education $ 5661628204
Bingo Tax Proceeds for Education $ 625370396
FY95 Tax Revenue from Gaming $6286998600
Fiscal Year 1996
Gaming Proceeds for Education $9973032067
Bingo Tax Proceeds for Education $ 468417852
FY 96 Tax Revenue from Gaming $10441449919
Total Tax Revenue from Gaming 516728448519
Does the GamblingMoneYiReallyGoo Fund Education
This may be the question inostfrequently asked ofpublic officials The simple answer is yes it does Pursuant to aconstitution~lamendntent passed by theGeneraIAssemblyasSJk 20 in 1992 andapproved bythe voters in a subsequent general electionmiddotall state tax money derived from the proceeds ofgamblirigisspent on education
The text ofthisconstitutional provision contained inArtiete 1lISection 39(d) reads as follows
All state revenues derived from the conduct ofaUgaming activities as are now or hereafter authorized by thiscomtitution orbyJaw unless otherwise provided bylaw on the ~ffectivedateofthissectionshallbemiddot appropriated beginoingJuly 1193solely for the pl1blic instittitions of elementary secondary and higheredueatioll and shaH~ot be included within the defmitionoftotal staterevenues in sectioid 7ofarticle X of this constitution
The tax revenues derivedfimnthe proceeds ofgambling foifiscalyeart998 are estimated to be $155 millionmiddot In ~d~itionto thegamblingm~neymiddot traditional stategeneralrevelluefundingfor publicschoo~ bas Uicreased every year since riverboatgillllblingwasenacted Thetotalstatebudget for educationwhichrepresents approximately 50of the average local school budget is $2965 billion Theg~~lIDgnlOney was designedtoslipplel1lent not replace the primatySufCeS ofpqb lie school fuDding[befunds derived from gambling have be~nusedfortheOiltstandingSchools TtilStFundthemiddotmiddot SchoolDistrict Bond Fund fotmainteniuiceandcapital exp~nclilures for public colleges and universities and to supplcentmenttheschool foundlltionmiddot formula
Missouri Gaming Commission 1996 Annual Report - Page 8
middot Where Does All the middot Gaming Tox Money Go
Orgallizationai Structure OFFICE OF THE EXECUTIVE DIRECTOR
Thomas J Irwin was named Executive Director by the Commission on October 21 1993 Mr Irwin came to the Commission after serving 3 years as Executive Assistant to St Louis County Executive Buzz Westfall Mr Irwin is a graduate ofHarvard University where he earned his masters degree from the Kennedy School ofGovernment He has served as the Chief Budget Officer for the Boston Police Department and was the Executive Assistant for Intergovernmental Affairs for St Louis mayor Vince Schoemehl from 1982 to
1988 Mr Irwin is a veteran of the United States Marine Corps having served
in Vietnam in 1968
i i Mr Irwin is responsible for the day-to-day operations of the
Commission He supervises all staff activities and reports to the Commission Among the staff positions reporting to the Director is Public Information
i K Officer Harold Bailey Mr Bailey is responsible for organizing and
distributing all public documents and reports
I In addition there are six primary functions of the Commission that
it have been divided into sections that report directly to Mr Irwin including
Administration Audit Bingo Corporate Securities Enforcement amp
t ~
Investigations and Legal amp Legislative Affairs
I ADMINISTRA110N
The administration section headed by Deputy Director Deborah A Ferguson provides a range of administrative financial and technical services to
help the Commission accomplish its goals The administrative services can be divided into the following functions accounts payable accounts receivable purchasing data processing budget facility leasing and human resources Accomplishments of the administration section would not have come to pass without the assistance ofChiefAccountant Denny Hodges Persomlel Officer Vicki Glenn Records Administrator Michael Shelhnan and Data Processing Manager John Bluma The administration staff benefited from the addition ofTen a Smith Diane Riddle and Mike Brizendine
The administration section continues to be a focal point of activity with the continued growth of the gaming industry l1te highlight of this past year was the relocation of the Jefferson City office Plaooing and design for the Jefferson City office began in 1995 and culminated with the move in September 1996 Highlights of the new building include a hearing room to conduct Commission meetings adequate file space to house the Commission
records that will be relocated from the St Louis office and the merging of the Bingo and Gaming staff into one facility to enhance coordination ofdaily activities
More specifically the duties of this section are as follows
~ Billing licensees for the processing and aoouallicenses issued to Level One and level Two Occupational employees that work for each riverboat To date there are approximately 9000 licensed employees
~ Billing licensed operators for the full cost of the enforcement agents assigned to each boat
~ Maintaining all Commission fmancial and personnel records which includes the monthly reconciliation of the Gaming Commission fund balance and processing aU payments made by the Commission
gt Preparation and implementation of the Commissions annual budget to ensure compliance with legislative intent
~ Handling all personnel matters and employee training and establishing and implementing written office policies for Commission staff
gt Preparation of fiscal notes to provide estimates to proposed legislation
Data Processiltg
The Data Processing section headed by John Blunm had a busy year in 1996 which included major systems developments as well as the daunting task of moving the Jefferson City office to a new location Some ofthe accomplishments of this important section include
~ Opening new commission offices for its agents at licensed premises
~ Moving the Jefferson City offices of the Riverboat Gaming and the Bingo workgroups to the new location This involved moving all computer workstations servers communications processors and printers to the new
Missouri Gaming Commission 1996 Annual Report - Page 10
building The two separate networks were consolidated into one large network that provides email between all members ofthe two sections for the fIrSt time and allows sharing of peripheral equipment such as laser printers
gt Final testing and implementation ofa billing system for enforcement billing to reimburse the state for expenses related to regulating the casino gaming industry
~ Automation ofannual MULES checks required of the 9000 plus gaming occupational license holders eliminating hundreds ofhours ofdata entry time
gt Upgrade of the physical inventory system to provide more complete reports and to track add-on costs to major inventory items
gt Design and development ofan occupational license history tracking system to provide a complete picture of license payments changes in license status duplicate badges issued and changes in employment status
gt Enhancing existing systems to meet new statutes and rules and regulations
AUDET
The audit section is responsible for the critical function ofensuring that the operators pay their taxes promptly and accurately This section headed by Jolm Davis former Internal Revenue Service Manager developed the Commissions tax remittal system that allows the Commission to capture tax remittance data on a daily basis The operators returns are audited by compliance audit siaffheaded up by senior accountant Kara Hardaway
The audit section also develops audit programs reviews and approves each boats system ofintemal controls conducts on-site performance audits reviews the quarterly CPA audits ofAdjusted Gross Receipts Tax and Admission Tax and reviews all internal audit reports prepared by the casinos internal audit staff
During 1996 the audit section revised Minimum Internal Control Standards that all operators must meet These standards were developed by the
audit staff after a lengthy review process that involved input from the IRS enforcement officers and industry experts
The audit section also implemented a system for tracking and depositing all non-tax revenue received from applicants such as application fees from applicants and reimbursements for Commission services
A summary ofsome ofthe audit sections programs and objectives is contained on page 22
BINGO
The Bingo Division is comprised ofthree separate sections which include the Administration Licensing Audit and Enforcement The Bingo Division Supervisor is Ron Pleus The Audit Section Supervisor is Randall Cahill and the Enforcement Section Supervisor is Sergeant Dwight Franklin The bingo statutes have been revised significantly in recent years requiring many administrative changes to occur within the Division Among the more daunting projects were the establishment ofa new licensing category for hall providers and the implementation ofa new supplier-based tax Specific duties within the three sections of the Bingo Division and the recent statntory changes are briefly outlined below
AdministrativeILicensiog Section - This section is responsible for the processing ofall correspondence and the licensing and maintenance ofover 1500 operator licensees which include all regular and special event bingo operators licenses and 200 hall providers annually This section deposits and records an tax and license receipts received on a daily basis This unit maintains a data base of over 31000 records ofindividuals that are involved in the management conduct andor operation ofbingo games and 3000 records of individuals involved as owners and officers of licensed Hall Providers Currently this staff consist ofthree employees Jane Bax Pam Murphy and Tina Freese In conjunction with the data processing staff the administrative section has developed an automated renewal application system which became fully operational January 1996 This system simplifies the renewal process for the licensee and eliminates wasted steps and duplicate information The system has proven to be a tremendous time saver for the not-for-profit volunteer organizations who are required to file renewals and also helps to reduce the staffmg cost and other administrative cost for the Division
Missouri Gaming Commissioll 1996 Allnual Report ~ Page 11
Audit Section - This section is responsible for the timely audit of all Bingo Product Manufacturers and Suppliers and assisting the Enforcement Section with oil-site inspections of bingo operators The audit staff has developed a comprehensive Manufacturer and Supplier audit procedure manual and has developed procedures for the inspection ofbingo operators The procedures for the inspection of bingo operators are used by both the Enforcement and Audit Staffs The audit section has audited all of the licensed Manufacturers and Suppliers during fiscal year 1996 These audits resulted in over $32000000 in unreported taxes and penalties The auditors also assisted enforcement with inspections and investigations of unlicensed suppliers and operators The section conducts on-site inspections of formerly licensed suppliers to determine ifthe products in inventory were being disposed of in accordance with the statutes The audit staff also assists the administrative staff in auditing the operators quarterly repom
Enforeement Section - This section is headed by Sgt Dwight Franklin a 17 year veteran ofthe Missouri Highway Patrol Sgt Franklin has six (6) officers assigned to the enforcement section Their duties include background investigations of all Manufacturers and Suppliers to include all the key personnel in those companies These investigations include criminal checks fmancial checks past employment history and all litigation involving the applicant In addition the enforcement section is responsible for investigating complaints on the licensed bingo organizations The complaints range from minor rule violations to thefts of large sums of money Complaints are received on a daily basis and are investigated on the basis of severity location and available manpower An additional duty of the Enforcement Section is to complete background investigations on all new potential employees of the Gaming Commission
CORPORATE SECURITIES AND FINANCE
The Commission has established a Section of Corporate Securities and Finance to address the challenge ofregulating the complex fmancial corporate structuring and contractual transactions involving publicly traded and privately held gaming companies This section is comprised of staff trained in legal accounting and business matters to perform examinations of these transactions
The suitability issues examined by the Corporate Securities and Finance Section include complex fmancial and legal suitability issues such as fmancial soundness corporate control legal compliance and procedural licensing issues
The sections examinations are coordinated closely with the Enforcement Division for background investigations and disciplinary matters
Typical transactions that are examined by the section include mergers and acquisitions public debt and equity issuances and private financings such as bank loans and credit facilities The goal of this new section is to provide the Commission with more thorough and sophisticated investigations and analysis of the suitability ofgaming companies and with a uniform system for providing this analysis on corporate securities and fmance issues Through this section the Commission hopes to identifY suitability problems ofapplicants and licensees earlier and more efficiently and to identifY plan for and possibly even avoid potential business closures of licensees due to fmandal matters
The Corporate Securities and Finance Section is headed by the Commissions General Counsel Greg Orner who reports directly to the Executive Director on corporate securities and finance matters The section also includes a Chief Financial Analyst position to be filled soon which will oversee the work ofthe fmancial staff examining the corporate secwities and fmance transactions
The Conunissions Financial Manager Pam Brown haS handled the fmandal analysis of the reported transactions up to now and will continue to perfonn many of the more complex transaction examinations and oversee the work of an accountant Pam Wheelis and a fmancial analyst (planned to be added next year) who are also assigned to the section
ENFORCEMENT
Enforcement for the Missouri Gaming Commission is provided by officers of the Missouri State Highway Patrol and agents of the Internal Revenue Service by way of Memorandums ofUnderstanding which set forth the responsibilities ofeach entity
The enforcement section is headed by Mel Fisher former Superintendent of the Highway Patrol The Gaming Division ofthe Highway Patrol is headed by Captain Dwight Hartung There are seventy-seven officers assigned to the Gaming Division and an additional six officers assigned to the Bingo Enforcement Unit
Some of the advantages ofusing Highway Patrol Officers as gaming agents include
JtfisSOUli Gaming Commission 1996 Annual Report - Page 12
the staff assigned are trained specialists in law enforcement and investigations thus saving the Commission the time effort and expense of recruitment and training
because the agents are licensed law enforcement officers they command immediate respect when interacting with licensees and customers aboard a riverboat as well as when they are in a foreign jurisdiction conducting an investigation
~ the Commission feels that it is important to rotate enforcement staff aboard the various boats this process is much easier with seasoned law enforcement officers who are used to being rotated between assignments as well as in and out of the gaming division
gt provides the ability to access sensitive law enforcement information from other jurisdictions
gt their experience in conducting investigations and handling emergency situations has proven invaluable
The Commissions background investigation units consist of three Highway Patrol Officers and one IRS agent The background investigations conducted by the Missouri Gaming Commission are thorough and take approximately four months to complete if no unusual complications or delays emerge The Commission not only investigates the finances and activities of the company and all its key people but traces the source ofall their funds to ensure that no criminal elements are funding the operation from behind the scene An outline that provides a sketch of a typical background investigation is contained on page 20
LEGAL amp LEGISLATIVE AFFAIRS
The legal amp legislative affairs section is responsible for all legal matters presented to the commission prior to litigation Any litigation involving the commission is handled by the Attorney Generals office In addition this section which is headed by Deputy Director Kevin Mullally develops and drafts legislation endorsed by the commission as well as all rules and regulations Moreover the legal section manages an administrative appeals docket where Mullally serves as Hearing Officer
Greg Orner serves as the commissions general coWlSel and works closely with the enforcement staff reviewing incident reports investigative issues and possible disciplinary actions In addition Mr Omer heads the Corporate Securities section
Some of tbe otber responsibilities of the legal section include
~ Drafting all resolutions for all commission actions and
gt preparing disciplinary complaints and denial orders for proposed action against licensees and
gt conducting quasi-legislative hearings on issues such as continuous docking and boat design and
gt providing legal research services and
gt organizing and maintaining records ofall official commission actions and commission policies and
gt handling inquiries from legislators constituents and other state regulatory agencies
The commissions legal staff is supported by paralegal Heather Grefrath and legal secretary Susan Sundermeyer This support staff is critical to daily operations ofthe legal section and is particularly valuable in the sections role in preparing and managing the rules and regulations all documents necessary for commission meetings and all documents declaring commission policy
In 1997 the legal section will be augmented with the addition ofstaff attorney Robert Little
PENDING LITIGATION
The Missouri Gaming commission denied one occupational license in 1994 thirteen occupational licenses in 1995 and thirty-five occupational licenses in 1996 Each aplicant is presumed WlSuitable and has the burden of proof to prove his or her suitability to the Conunssion An individual may request a hearing to attempt to prove suitability to the Commission by serving
Missouri Gaming Commission 1996Annual Reporl- Page 13
such a request on the commissions Executive Director The following is a list of pending litigation
Petitioner Venue
Bingo Systems amp Supply AHC Cape Girardeau Elks Lodge 639 AHC Cape Girardeau VFW Post 3838 AHC Edwin Pete Rhodes AHC Ideal Bingo Supplies Inc AHC Mary Cracchiolo AHC Maureen L Scott AHC Meramec-Amold Eagles Auxiliary AHC Myron B Carter Sr AHC Pan-Education Institute AHC Raymond J Drury AHC Raytown Women of Today AHC Sandra Termini AHC Stanley L Turner AHC Missouri Gaming Co ~Disc Action MGC Harrahs -Disciplinary Action MGC Boyd Kansas City Inc -Disc Action MGC Jeffery Koester -Denied License MGC Gary Franklin -Denied License MGC Mark Zwolle -Disciplinary Action MGC Anthony Civella -Exclusion MGC Peter Simone -Exclusion MGC Yolanda Nettles MGC Tracy Anderson MGC Carrie Gentry MGC Jimmie B Carsey MGC Cape Girardeau Elks amp VFW Circuit Court ofCape Girardeau County MGC v Veterans Commission
st Louis Public Schools Missouri Supreme Court W Todd Akin v MGC Missouri Supreme Court William D Cmmnisano Jr Missouri Court ofAppeals-Western District Pen-Yan Investment Inc Missouri Court ofAppeals-Western District
SUMMARY OF PENDING LITIGATION
There are fourteen bingo cases pending in the Administrative Hearing Commission
There are three disciplinary cases at the Commission level against gaming licensees pending the outcome ofPen-Yon Investment Inc v Boyd Kansas City Inc and MGC
Pen-Yon Investment Inc v Boyd Kansas City Inc MGC is pending in the Missouri Court ofAppeals Western District regarding disciplinary action taken against Boyd for associating in business affairs with a person who has a felony police record The Commission imposed a fine against Boyd and prohibited Boyd from collecting or distributing any funds from the machines under its service agreement with Pen-Yan
MGC v Missouri Veterans Commission St Louis Public Schools is pending in the Missouri Supreme Court regarding funds received from fmes imposed by the Commission
In W Todd Akin et 01 v MGC the Circuit Court ofCole County ruled in favor of the commission on summary judgment The suit challenges the Commissions authority to grant or deny Harrahs Maryland Heights Corp and Players Maryland Heights LP a license for a continuously docked excursion gambling boat within a man-made basin filled by water from the Mississippi River The petitioners have appealed and the matter is now before the Missouri Supreme Court
Cape Girardeau Elks Lodge et aI v MGC is pending in the Circuit Court of Cape Girardeau County regarding the Commissions decision to suspend the Cape Girardeau Elks Lodge bingo license
In the Matler oWilliam D Cammisano Jr there is an appeal pending in the Missouri Court ofAppeals Western District regarding the Commissions decision to place Mr Cammisano on its List of Excluded Persons
MISSOURI GAMING COMMISSIONS EXCLUSION LIST
The Missouri Gaming Commissionplaced two individuals in 1994 two individuals in 1995 and two individuals in 1996 on the commissions Exclusion List Placement of these individuals on the Exclusion List has been based on prior convictions
As a result of placement on the Exclusion List each individual shall not be permitted eoby into any portion of a riverboat gaming operation within the state ofMissouri and shall be ejected ifdiscovered on such premises Furthermore Excluded Persons shall be prohibited from contact of any kind with Missouri riverboat gaming operations Persons placed on the Listmay file a written petition with the Commission to request a hearing to have their name
JlrJissOIlri Gaming Commission 1996 Annual Report - Page 14
removed from the Exclusion List Currentlyone individual has appealed to the Western District of Missouri and two otbers are pending hearings by the Missouri Gaming Commission
MISSOURI GAMING COMMISSIONS DISCIPLINARY ACTIONS AGAINSTOCCUPATIONAL LICENSEES
The Missouri Gaming Commission has taken disciplinary action against twenty-eight occupational licensees as of September 30 1996 Preliminary
Orders for Disciplinary Action set forth statements of fact that support the proposed disciplinary action and the regulatory and statutory sections involved Individuals may request a hearing by serving such a request on the Commissions Executive Director Currently four individuals have sought hearings before the Commission one ofwhich is stm pending
Occupational License Denials 1994-1996
40
l 30
lt0 c Q)
0 lt5 20 i-Q) 0 E ~ 10
o Year Licenses 1994 1995 1996 IiiI Licenses Denials 1 13 35
Voluntary Exclusions On December 30 1996 after six months of research and consultation the
commission established a unique program to combat problem gambling The List of Disassociated Persons is the result of many months ofconsultation with treatment professionals that help problem gamblers The program allows problem gamblers to exclude themselves from Missouri riverboat casinos under the threat ofarrest for trespassing
In exchange for agreeing not to patronize Missouri riverboat casinos the problem gambler is removed from all casino mailing lists and direct marketing promotions In addition the operators are required to deny persons on the List check cashing privileges and must take away their VIP or players club card
Treatment professionals have advised the commission that the only way for a problem gambler to get help is to admit that heshe has a problem and to accept personal responsibility for that problem by seeking treatment
The Disassociated Persons program is a valuable tool in addressing problem gambling because it requires the individual to admit to having a gambling problem to agree to seek treatment and stay away from gambling casinos Furthermore it includes severe consequences if the problem gambler succumbs to the temptation to gamble Moreover it offers some protection to the problem gambler from the marketing promotions that encourage people to visit the casino properties
The program operates in the following manner
~ The problem gambler must obtain an application for placement on the List ofDisassociated Persons from the commission
~ the application contains various information about the individual an admission that the person is a problem gambler and agrees to stay off Missouri riverboats and seek treatment an authorization to release this information to riverboat operators as well as a Waiver releasing the commission and the licensee from any liability associated with enforcing the rules of the program
~ the application must be personally presented to a commission agent at which time the information is verified and the rules of the program are explained
~ the application is a closed record and its contents may only be disclosed to necessary commission and riverboat personnel
~ the commission considers all applications in closed session
~ once a person is placed on the List heshe cannot petition for removal After consulting with treatment professionals the commission concluded that problem gambling requires lifetime treatment and therefore there is no procedure for removal from the List
Missouri is the frrst jurisdiction in the world to propose a program such as this We will continue to monitor and refme the program and look forward to reporting to you on its impact in next years annual report
ft-Iissouri Gaming CommissiOil 1996 Annual Report - Page 16
Brief Timeline of Riverboat Gaming in Missouri ~ May 13 1991 - General Assembly passes House Bill 149 which authorized
referendum to be submitted to the voters in the November 1992 election to determine whether the State Tourism Commission shall have the power to issue riverboat gambling licenses
gt November 31992 - Missouri voters pass referendum allowing riverboat gaming with a majority ofnearly 63
gt January 1993 - Governor Carnahan announces intentions to push legislation creating an independent Gaming Commission to oversee riverboat gambling
April 29 1993 -- SBs 10 amp 11 creating the Missouri Gaming Commission are signed into law by Governor Carnahan and five Commissioners are appointed Robert Wolfson Chairman Robert Clayton William Quinn Dr Jenice Stewart and Avis Tucker
gt April 30 1993 -- Troy Harris et al v The Missouri Gaming Commission amended petition is filed The petition challenges the constitutionality of Senate Bills 10 amp II
gt- May 17 1993 -- The Missouri Gaming Commission holds its first meeting
~ September 1 1993 -- Proposed Rules and EmergencY Rules are adopted
gt September 20 1993 - 19 riverboat gaming license applications are filed with the commission
gt September 20 1993 - Clarence E Mel Fisher hired as Deputy Director for Enforcement
gt September 24 1993 - Commission contracts with the Internal Revenue Service to perform fmancial investigations for the commission Four IRS agents are assigned to the commission
~ September 28 1993 - Commissions enters into and inter-agency agreement with the Missouri State Highway Patrol to provide enforcement services for the commission
~ October I 1993 - Debbie Ferguson joins the commission as Deputy Director for Administration
November 3 1993 - Commission hires Tom Irwin as Executive Director and Kevin Mullally as Deputy Director for Legal amp Legislative Affairs
November 30 1993 -- Commission announces that it will begin background investigations on the following companies President Riverboat Casino-Missouri St Charles Riverfront Station Inc S1 Joseph Riverboat Partners The Missouri Gaming Company GDC (Supplier) IGT (Supplier) Casino Tokens (Supplier) Paul-Son Dice amp Card Company (Supplier)
gt December 22 1993 - Governor Carnahan signs Executive Order 93-50 designating the enforcement section ofthe Missouri Gaming Commission as a criminal justice agency
1994
gt January 25 1994 -- Missouri Supreme Court in Troy Harris v Missouri Gaming Commission strikes down games of chance including slot machines The court ruled that the Commission did have the authority to issue licenses to riverboat where games ofskill are played Specifically mentioned as games ofskill are poker and blackjack The Court remanded six games to lower court for determination as to whether they are games of skill or chance baccarat craps roulette wheel klondike table faro layout and video games ofchance
~ February 1 1994 -- Rules and Regnlations become effective
February 7 1994 -- Legislature passes resolution to place constitutional amendment on the ballot which would allow the legislature to approve games of chance (slot machines) on riverboats and floating facilities on the Missouri and Mississippi Rivers
gt- April 5 1994 -- Voters defeat constitutional amendment allowing games of chance (slot machines) by an unofficial count of 1263 votes
~ April 29 1994 - Finding of Preliminary Suitability issued to President Riverboat Casino S1 Charles Riverfront Station St Joseph Riverboat Partners and The Missouri Gaming Company
Missouri Gaming Commission 1996 AnnualReport - Page 17
Brief Timeline of Riverboat Gaming in Missouri ~ May 20 1994 -- Governor signs into law SB 740 which defmes games of
chance and enacts more stringent ethics provisions The bill also allows the commission to license a barge in an artificial basin as an excursion gambling boat if it can be demonstrated that safely concerns prevent an operator from cruising from that location
~ May 27 1994 - Commission authorizes as games of skin the following Blackjack Caribbean Stud Poker Poker Double Down Stud Poker Pia Gow Poker Poker Texas Hold Em the video representations ofthese games and Craps
gt May 27 1994 -- Commission authorizes President Riverboat Casino-Missouri to operate the Admiral as a continuously docked excursion gambling boat because cruising would cause danger to the boats passengers
gt May 27 1994 -- Gaming Commission issues first two excursion gambling boat licenses to President Riverboat Casino in st Louis and St Charles Riverfront Station in st Charles
gt May 27 1994 -- Initiative petition tbat would allow voters to approve games ofchance is submitted to the Secretary of State for approval of the form ofthe petition
~ June 6 1994 -- Secretary ofState notifies referendum petitioners that the Attorney General has approved the form of their petition The Secretary of State prepared the following petition title that was approved by the Attorney General
Shall the General Assembly be authorized to permit only upon the Mississippi River and the Missouri River lotteries gift enterprises and games ofchance to be conducted on excursion gambling boats and floating facilities
gt June 9 1994 -- Commission prioritizes Aztar Missouri Corporation Boyd Kansas City Inc and Harrahs North Kansas City as companies to be investigated for licensure pursuant to 11 CSR 45-4060
gt June 22 1994 -- Gaming Commission issues licenses to St Joseph Riverboat Partners in St Joseph and The Missouri Gaming Company in Riverside
~ September 20 1994 -- Commission issues a fmding ofpreliminary suitability to Harrahs North Kansas City Corporation
gt September 20 1994 -- Commission authorizes Harrahs North Kansas City Corporation and st Charles Riverfront Stationl to operate excursion gamblillg boats as continuously docked vessels In both cases the commission found that operating a cruising vessel from the proposed site would cause danger to the boats passengers and the project will generate permanent job creation and land-based development
gt September 22 1994 -- Harrahs North Kansas City Corporation is issued an excursion gambling boat license
gt September 28 1994 - Public hearing regarding Capitol Queen and Casino Jncs application for an excursion gambling boat license results in the commission denying CQCs license and prohibiting them from reapplying for two years
gt October 7 1994 - Commission places William D Cammisano Jr and John Termini on its list of excluded persons
gt November 8 1994 -- Voters approve games ofchance
~ December 9 1994 - Games ofchance are allowed on riverboats
gt December 27 1994 - St Charles Riverfront Station is issued a license to operate the St Charles II as an excursion gambling boat This marks the fIrSt time the commission has licensed a second excursion gambling boat for a single development
The approval was for St Charles Riverfront Stations second boat The flTSt boat continued to cruise until April 16 1996
Missouri Gaming Commission 1996 Annual Report - Page 18
Brief Timeline of Riverboat Gaming in Missouri 1995
)gt- February 22 1995 -- Commission announces it will begin background investigation on Hilton Kansas City Corporation for an excursion gambling boat license
~ March 30 1995 - State Auditor releases final audit report of the Missouri Gaming Commission No major deficiencies are noted
~ April 20 1995 - Commission repays $3 million start-up loan to state general revenue fund
)gt- April 25 1995 - Commission approves continuous docking petitions for Boyd Kansas City Inc and Hilton Kansas City Corporation
~ April 25 1995 -- The commission issues a finding ofpreliminary suitability to Aztar Missouri Gaming Corporation
~ April 26 1995 -- The commission issues an excursion gambling boat license to Aztar Missouri Gaming Corporation in Caruthersville Missouri
)gt- May 24 1995 - The commission announces it will begin background investigations on the following companies Harrahs Maryland Heights Corporation Kansas City Station Inc Players Maryland Heights Inc
gt August 28 1995 - Pursuant to House Bill 574 the duties of the Missouri Horse Racing Commission are transferred to the Gaming Commission
~ September 12 1995 - The commission issues a fmding of preliminary suitability to Boyd Kansas City Inc
September 13 1995 - The commission grants the petition ofHarrahs Maryland Heights Corporation and Players Maryland Heights Inc to operate continuously docked excursion gambling boats at their joint venture in Maryland Heights
)gt- September 13 1995 - The commission issues an excursion gambling boat license to Boyd Kansas City Inc
)gtshy November 16 1995 shy The commission fines the following companies for associating with either socially or in business affairs persons with felony police records or persons with a notorious or unsavory reputation Boyd Kansas City Inc Harrahs North Kansas City Corporation The Missouri Gaming Company
1996
)gtshy February 15 1996 - The commission grants continuous docking rights to Aztar Missouri Gaming Corporation for a second boat in Caruthersville Harrahs North Kansas City for a second boat and Kansas City Station Corporation for two boats in Kansas City
~ April 16 1996 - The commission grants continuous docking rights to Argosy in Riverside Missouri S1 Joseph Riverboat Partners and 81 Charles Riverfront Station
~ May 15 1996 - The commission issues a license to Harrahs North Kansas City for the Lucky Star This is the second boat at the Harrahs North Kansas City mcility Included in the project is a 200-room hotel expanded parking and meeting space
~ June 19 1996 -- The commission places William Canunisano Jr on Exclusion List
~ June 27 1996 - The commission places Peter Simone and Anthony T Civella on Exclusion List
August 28 1996 - The commission takes disciplinary action against Boyd Kansas City Inc for periodic failure to take and report turnstile readings
~ October II 1996 - The commission issues a finding of prel iminary suitability to Hilton Kansas City Corporation and Flamingo Hilton Riverboat Casino LoP
October 18 1996 - TIle commission issues a Class B riverboat gambling license 10 HUlon KlIlIStIS City Corporation and a CltlSs A riverboat gambling license 10 Flamingo Hillon Riverboat CtlSino LP
Missouri Gaming Commission 1996Annual Report - Page 19
Outline of a Background Investigation
Review Application fin Completeneiis
~ Establish number ofkey people
~ Check disclosure forms for completeness
gt Check tax release forms
City Selection Process
~ Contact city to determine how the gaming operator was selected
gt Interview Mayor and City Council members
~ Ifa steering committee was used interview members of that committee
Determine ifany city officials own stock in the selected gaming company
~ Obtain minutes ofcouncil meetings that pertain to riverboat issues (a)selection (b) resolution and (c) ordinance
gt Contact city attorney who handled negotiations with gaming company and obtain correspondence between city and gaming company
~ Contact City Economic Development Director (if applicable)
Docksite
gt- Land selected for gaming operation
J Who was it purchased from (how long have they owned the property) J Price (copy ofcontract)J Copy of plat map and legal description J Determine ifany ofcity officials or selection committee members have
ownership interest in docksite
gt Corps ofEngineers Permit
J Status
J Any concerns by Corps J Wetlands involved
~ Contact DNR for any known concerns in area
gt Check with city for any known dwnpsites with possible hazardous material
gt Developmental agreement between city and gaming operator (obtain copy from city)
gt Detennine if development is feasible
J Is support facility land based or floating J Projected nwnber ofjobs economic aid to area J Traffic flow to area - what improvements are needed - who will pay
for improvements
Riverboat
gt Locate boat and obtain all infonnation about boat (cruise schedule liability carrier)
gt Establish design ofriverboat
gt Determine emergency medical plan for boat
gt Determine ifCoast Guard and other safety requirements have been met
Gaming Operator (Public Corporation Partnership Private Company)
gt Establish contact person with operator
J Determine attorney of record for gaming company J Any missing items from application advise contact person
gt Establish home office (Financial Headquarters)
J Determine a good date and location where all key people can be contacted for a personal interview
J Where can financial record be located
Missouri Gaming Commission 1996Annual Report - Page 20
~
Outline of a Background Investigation
J Breakdown ofmanagement (corporate Board ofDirectors major stockholders)
J Establish flow chart of key people and companies owned by gaming operator
~ Investigation ofKey People will include but not be limited to the following
J Check previous employment work records J Check state local and federal intelligence files J Check for other gaming licenses ifapplicable (check with appropriate
regulators)J Check state federal and local courts for any civil litigation J Check for any arrest record J Check personal and business credit J Check state and local tax status IRS will handle federal taxes
gt Other locations ofgaming operations (currently operating and pending locations)
J Contact gaming regulators for respective locations J Travel to sites to view operations
Establish a file for all key people investigated with summaries establish a file for financial records with summary offinancial viability ofcompany and ability to complete obligations to the city and State ofMissouri Establish a file for other locations of licensure along with summary
Associated Investigations
gt All allegations of Any nature must be investigated and a file established with a written summary
~ Associated investigations must be done in a complete and thorough manner and all reports written accurately
gt Upon completion ofall investigations complete reports and summaries a separate press releasable summary must be written This summary must be approved by Gaming Commission legal staff
Missouri Gaming Commission 1996 Annual Report - Page 21
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Missouri Gaming Commission Compliance Audit Objectives for Licensees
ObjectiveAudit Area ~~~~~~~~~
To ensure accuracy of ticket and turnstile counts reported to MGC including compsIVlPs stayovers and promotions
Table Games
Ticketffurnstile
To ensure accuracy of AGR for table games reported to MGC
Electronic Games To ensure accuracy of AGR for electronic games reported to MGC
Cage Accowltability To ensure accuracy ofcage accountability forms and compliance with internal controls and tax reporting regulations
Observations Cage Main Bank Pit Area Slot Area Turnstile Ticketing
PurchaselRedemptions
$500 Loss Limit
Stayover Procedures
To determine that cashiers are complying with internal controls for chips tokens gaming scrip and cash
To determine compliance with MO statutes and internal controls
To determine compliance with MGC regulations and internal controls
To ensure that manual jackpot payouts are properly handled and the required tax fomIS are completed Manual Jackpot Payouts
To ensure that hopper fills are properly handled and comply with internal controls Hopper Fills
To ensure that table fills are properly handled and comply with internal cootrols Table Fills
To ensure that table credits are properly handled and comply with internal controls Table Credits
To ensure that tracking procedures comply with internal controls and the currency transactions are properly completed Patron TrackingCurrency Transaction Reporting
Imprest Bank Balancing To ensure that proper balancing and accountability is performed during a shift change
Coin Vault To ensure proper maintenance of coin chip and token inventory
Satellite CageSSlot Booths To ensure compliance with internal controls and consistency with main cage procedures
TipsGratuities To ensure compliance with MGC regulations and internal controls
Cage AccessSecurity To ensure compliance with internal controls
Turnstile To ensure accuracy of turnstile count for admissions tax calculation
Ticketing To ensure comp Hance with internal controls and proper handling of stubs voids and issuance
MiscellaneousOther
Surveillance Tapes To review activity for hard soft and tip counts and drops to verify compliance with internal controls
Workpaper Preparation and To establish standardized procedures for MGC audit workpapers and audit reports Audit Reports
-
Missouri Gaming Commission 1996 AnnualReport - Page 22
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Audit Area
Monthly Financial Statement Review
Engagement Letters
Objective --shy
To perform a preliminary review ofmonthly financial statement information for proper completion of fmandal statement templates verification ofadjusted gross receipts to MGC reports and to detect any unusual items which justifY further review when conducting on-site audit
To give advance notification to each boat of the date and scope ofaudit being performed
Financial Statement Verification To determine consistency ofmonthly financial statement information submitted to MGC with boats general ledger system
Balance Sheet Accounts
CashCash Reserve Balance
Cash Receipts
Cash Disbursements
shy -- shy
To determine the existence consistency and fair presentation of the cash balance on the monthly fmancial statements
To determine the consistency and filir presentation of the cash balance on the monthly financial statements and the source of large cash receipts other than gaming revenue
___I
To determine the consistency and fair presentation of the cash balance on the monthly fmancial statements and to trace the outflow of large cash disbursements
i
I
--
AccountslN Notes Receivable
Accrued Admission and Gaming Tax Liability
Chip and Token Liability
Progressive Jackpot Liability
To determine the consistency and fair presentation of the accounts receivable andor notes receivable balance in the monthly fmancial statements
To determine the consistency and fair presentation of the accrued admissiongaming tax liability balance in the monthly financial statements
To determine the consistency and fair presentation of the chip and token liability balance in the monthly financial statements
To determine the consistency and fair presentation of the progressive jackpot liability balance in the monthly fmancial statements
---shy
Tips and Gratuities (Accrued Liability)
Customer Deposit Liability
Accounts Payable
Income Statement Accounts
Revenne - Table Games
To determine the consistency and fair presentation of the accrued tips and gratuities liability in the monthly fmancial statements
-lt ---- shy
To determine the consistency and fair presentation of the customer deposit liabilities in the monthly fiscal statements To determine the consistency and fair presentation ofaccounts payable balance in the monthly fmancial statements
--shy
To determine the consistency and fair presentation of table games revenue as reported to MGC daily and in the monthly fmandal statements
Revenue - Electronic Games To determine the consistency and fair presentation of electronic games revenue as reported to MGC daily and in the monthly financial statements
Missouri Gaming Commission 1996 Annual Report - Page 23
------------
---------
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Revenue - Admissions To detennine the consistency and fair presentation ofadmissions revenue as reported to MGC daily and in the monthly fmancial statements
Promotional Expense To determine that comps are properly recorded as expenses and not deducted from revenue in accordance with GAAP
Pre-Opening Costs To determine whether certain pre-opening and licensing costs are properly expensed or amortized over future periods in accordance with GAAP
Workpaper Preparation and Audit Reports To establish standardized procedures for MGC audit workpapers and audit reports
AissOllri Gamillg Commission 1996 Anllual Report - Page 24
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AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
c
Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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o
Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
raquo
-c
-c
CD
J
C _
gtlt
c
I IAztar Missouri Corporation
r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
j i
1
J
1 I l
I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
~
Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
Win Per Admission CoJql8ring Mssouri and IIhlls
those revenues fall short ofpredictions Analysts from Wall Street tell the commission that we are exporting our tax dollars to other states In a recent commission meeting regarding market size a well respected gaming analyst opined that while Missouri supplies 73 ofthe gaming market in the S1 Louis area it captures only 50 ofthe revenue Z
Finally the gaming experience ofconsumers who do visit Missouri gaming operators is less desirable than the experience offered by competitive states Missouri is offering a more cumbersome and less enjoyable product The commission believes that the gaming policy for Missouri should retain the Missouri dollars in Missouri and attract dollars from other states Our current policy has the exact opposite result
The Costs 0Competitive Ineriority
Limiting the ability ofMissouri operators to offer a competitive entertainment product has direct economic costs which are easily illustrated Missouri gaming riverboats are larger more luxurious and offer more non-gaming amenities than competitors in neighboring states Yet they fail to compete in economic terms even though the bulk ofthe popUlation seeking the entertainment product lives in Missouri
For example the Casino Queen in East St Louis Illinois and the Alton Belle in Alton Illinois combined have less capital investment than St Charles Riverfront Station which has consistently expanded and reinvested since it opened in May 1994 In addition these Illinois gaming facilities consist primarily of parking facilities and the gaming casino They offer no non-gaming amenities other than limited restaurant facilities
In spite of these negative competitive factors the two Illinois facilities regularly outperform SCRS in spending per customer Similarly Illinois riverboats in the St Louis area fare significantly better in gaming revenue per square foot gaming revenue per position and admissions per square foot One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
pages 104-106 (John Maxwell Standard amp Poors) and pages 115-118 (Steve Schneider Stife Nicoaus) See also Minutes ofMissouri gaming commission meeting May 24 1995
Missouri Gaming Commission minutes November 25 1996page 27 quoting Jason Ader Bear Stems gaming analyst Examples ofsome of the non-gaming amenities included in Missouri projects include themed restaurants movie theaters botels meeting space retail shopping child
care centers micro breweries an 18th century railroad car restored to its original luxury fountain displays and theaters for live entertainment
Missouri Gaming Commission 1996Annual Report - Page 5
2
The Problem is Clear - How does Missouri Address the Problem
Missouri statutes require the commission to report annually to the Governor and the General Assembly on the competitive state of the gaming industry in Missouri For two years the commission has advised the General Assembly that we believe that there could be a problem with the structure of the gaming industry but that the data is incomplete However we now fmd the data to be clear and compelling A problem exists in the Missouri gaming industry -- the gaming product is not competitive with our neighboring states This will create negative economic results and lower tax revenues
Due to navigational safety constraints most Missouri riverboats do not cruise It has been suggested by gaming analyst and by legislation filed in prior years that the elimination of the boarding time restrictions will help Missouri gaming operators economically and be more consumer friendly The commission believes that the current boarding time restrictions are detrimental to the consumer and make little sense since the riverboats are not leaving the dock They are an artificial barrier to entry and participation Yet the boarding times are essential to enforcing the loss limit A change in the statutes which
3(()
21)Q
i a
OIl
eliminates the boarding times but maintains the loss limit would make the enforcement of the loss limit impossible
Findings
Current Missouri statutes are not competitive with our adjoining states Consequently Missouri is at a competitive disadvantage Repealing the loss limit would make the Missouri operators more competitive Without this change the Missouri gaming industry will continue to be at a competitive disadvantage and over time will decline rather than prosper
Conclusioll
Section 313837 RSMo requires the commission to report annually to the general assembly on the effects ofthe loss limit on the competitiveness of the gaming industry in Missouri The findings above are intended to satisfy this statutory mandate The enactment of any changes in policy as a result of these findings are obviously the purview of the General Assembly and the Governor
Missouri Gaming Commission 1996Annual Report - Page 6
Effect of Tax Rate on Competitiveness
The Missouri tax rate currently mirrors that of its principle competitor the State of Illinois The MissourilIlIinois tax rate consists of a 20 base tax on adjusted gross receipts (AGR) In Missouri 10 of that tax (or 2 of AGR) is a local tax imposed by state statute The funds collected from this local tax are allocated to the home dock city or county fur services necessary for the safety of the public visiting the excursion gambling boat The remaining tax on AGR (18 of gross receipts) is placed in the Gaming Proceeds for Education Fund and may be spent only for public elementary secondary and higher education
Iowa has a graduated tax tbat caps out at 20 for adjusted gross receipts over $3 million Because the graduated rate reaches its cap at the relatively low ceiling 0pound$3 million Iowas effective tax rate is not significantly
The state of Kansas has recently allowed casinos operated by native American Indians These casinos are not taxed
For your future reference a table is contained in Appendix B setting forth the tax rate in each gaming jurisdiction and the regulatory restrictions that are imposed The chart below is a generalization of the tax rates in the various gaming jurisdictions Because of the subtleties of each states tax law it is difficult to precisely chart the rates For a defmitive explanation of the tax rates refer to the aforementioned chart in Appendix B
The Commission does not feel that the 20010 tax rate currently places our licensees at a competitive disadvantage The commission will continue to monitor the performance of all licensees and report developments as they occur
different from that of Missouri and Illinois
Licensees are also responsible for a $2 admission fee for each person who participates in a gaming excursion One dollar of this fee is remitted to the home dock city or county The remaining dollar is used to fund the regulatory activities of the Commission No general revenue is used for any activity of the Commission In addition to the $2 admission fee the gaming boat is billed monthly for the full cost of the enforcement agents assigned to the boat Either through fees or direct billing the gaming operators pay for the full cost of their own regulation
The State of Mississippi assesses a tax of 12 on AGR Unlike Illinois who is limited to licensing 10 gaming operations Mississippi has not limited the number of casinos licensed but has licensed all applicants that have been found suitable The Missouri law does not specifically limit the number of licenses that may be issued but places this responsibility in the hands of the Commission through a best interests of Missouri standard
Comparison of Gaming Tax Rates TaxonAGR
25
20 m ma )(
15 IImTaxRaeJ ~ 10
5
0 NV NJ LA
----------------------------------
MS IL IN IA MO CO so State
Missouri Gamilg Commission 1996Annual Report - Page 7
Missouri Gaming Commission Contributions to Education
Fiscal Year 1995
Gaming Proceeds for Education $ 5661628204
Bingo Tax Proceeds for Education $ 625370396
FY95 Tax Revenue from Gaming $6286998600
Fiscal Year 1996
Gaming Proceeds for Education $9973032067
Bingo Tax Proceeds for Education $ 468417852
FY 96 Tax Revenue from Gaming $10441449919
Total Tax Revenue from Gaming 516728448519
Does the GamblingMoneYiReallyGoo Fund Education
This may be the question inostfrequently asked ofpublic officials The simple answer is yes it does Pursuant to aconstitution~lamendntent passed by theGeneraIAssemblyasSJk 20 in 1992 andapproved bythe voters in a subsequent general electionmiddotall state tax money derived from the proceeds ofgamblirigisspent on education
The text ofthisconstitutional provision contained inArtiete 1lISection 39(d) reads as follows
All state revenues derived from the conduct ofaUgaming activities as are now or hereafter authorized by thiscomtitution orbyJaw unless otherwise provided bylaw on the ~ffectivedateofthissectionshallbemiddot appropriated beginoingJuly 1193solely for the pl1blic instittitions of elementary secondary and higheredueatioll and shaH~ot be included within the defmitionoftotal staterevenues in sectioid 7ofarticle X of this constitution
The tax revenues derivedfimnthe proceeds ofgambling foifiscalyeart998 are estimated to be $155 millionmiddot In ~d~itionto thegamblingm~neymiddot traditional stategeneralrevelluefundingfor publicschoo~ bas Uicreased every year since riverboatgillllblingwasenacted Thetotalstatebudget for educationwhichrepresents approximately 50of the average local school budget is $2965 billion Theg~~lIDgnlOney was designedtoslipplel1lent not replace the primatySufCeS ofpqb lie school fuDding[befunds derived from gambling have be~nusedfortheOiltstandingSchools TtilStFundthemiddotmiddot SchoolDistrict Bond Fund fotmainteniuiceandcapital exp~nclilures for public colleges and universities and to supplcentmenttheschool foundlltionmiddot formula
Missouri Gaming Commission 1996 Annual Report - Page 8
for an entertainment experience Gaming is an entertainment industry In the entertainment industry the consumers demand a product that they can enjoy during their leisure time on their own terms
In Missouri there are consumers that indicate they dislike the product which they are being offered Many of these conswners will go out of their way even travel to another state to fmd a product that is more user friendly A cursory survey of the license plates in the parking lot I)fthe Casino Queen in East 8t Louis Illinois adequately demonstrates this point
Many Missouri gaming customers complain that the loss limit is inconvenient intrusive and that it detracts from the entertainment experience they seek at Missouri riverboats To have to account for ones spending during what is supposed to be a leisure activity strikes many as a personal encroachment The fact that this requirement is imposed and enforced by the government further aggravates this perception
Many Missouri consumers react to this restriction by taking their leisure time and tax dollars across the border to JIlinois Iowa or Kansas where there are no limits Furthermore it is apparent that the loss limit severely restricts Missouri riverboat operators from drawing tourist customers from other states Consumers choice as to how to spend their discretionary leisure dollars is evident in the competitive gaming arena
The Missouri gaming law was adopted by the people for its potential to generate economic development its ability to raise needed revenue for education and because it is a leisure activity that many want to pursue The loss limit detracts from aU of these goals While Missouri is currently the beneficiary ofa significant amount of capital investment and new job creation the continuing negative impact of the loss limit renders our economic future in this area uncertain Because of the loss limit Missouri riverboat operators are less competitive the state is losing money to its neighboring states there is a reduction in the number of available jobs and the number of riverboats that can successfully operate in Missouri is restricted
Tax revenues from gaming have benefited education While tax revenues from gaming are still growing after only two years Missouri has seen
~ -
How does the Loss Linlit Work
Pursuant to sect 313805 RSMo the commission is required to regulate the wagering structure to include a maximum loss of five hundred dollars per individual player per gambling excursion In order to enforce this provision the commission requires the following procedure
I In order to board an exctrrsion gambling boat a customer most stand in line to obtain a ptrrchase authorization coupon (scrip) This scrip must be signed by the customer in the presence of a licensed riverboat employee
2 After the customer receives the scrip heshe must get in another line to board the riverboat The scrip also serves as the customers boarding pass
3 The scrip which is time and date stamped must be printed with boxes of denominations ofwhich the total ofall boxes shall not exceed $500 These boxes shall be canceled by pennanent black marker at the time the patron presents the scrip in the riverboat casino lfthe scrip is not signed at the time of presentment or the date and time are not valid the scrip shall be confiscated from the customer If the scrip is valid and there are sufficient available boxes the cashier shall cancel the appropriate number of boxes with a pennanent black marker and complete the transaction
4 In a situation where a customer wishes to buy chips at a table the procedtrre is the same except that the dealer stops the game to execute the transaction On many occasions the use of the scrip to convert cash to chips will slow up the game This is another example of customer dissatisfaction arismg out of the process
Transcript Missouri gaming commission meeting November 25 1996 pages 8 II and 1~17 (Bruce Turner Salomon Brothers) pages 44-46 (Joe Coccimiglio Prodential Securities) pages 57-58 (Tom Ryan Bankers Trust) pages 65-68 (Larry Klatzkin Donaldson Lufkin ampJenrette) pages 84-90 (Richard Byrne Merrill Lynch)
Missouri Garning Commission 1996 Annual Report - Page 4
Win Per Admission CoJql8ring Mssouri and IIhlls
those revenues fall short ofpredictions Analysts from Wall Street tell the commission that we are exporting our tax dollars to other states In a recent commission meeting regarding market size a well respected gaming analyst opined that while Missouri supplies 73 ofthe gaming market in the S1 Louis area it captures only 50 ofthe revenue Z
Finally the gaming experience ofconsumers who do visit Missouri gaming operators is less desirable than the experience offered by competitive states Missouri is offering a more cumbersome and less enjoyable product The commission believes that the gaming policy for Missouri should retain the Missouri dollars in Missouri and attract dollars from other states Our current policy has the exact opposite result
The Costs 0Competitive Ineriority
Limiting the ability ofMissouri operators to offer a competitive entertainment product has direct economic costs which are easily illustrated Missouri gaming riverboats are larger more luxurious and offer more non-gaming amenities than competitors in neighboring states Yet they fail to compete in economic terms even though the bulk ofthe popUlation seeking the entertainment product lives in Missouri
For example the Casino Queen in East St Louis Illinois and the Alton Belle in Alton Illinois combined have less capital investment than St Charles Riverfront Station which has consistently expanded and reinvested since it opened in May 1994 In addition these Illinois gaming facilities consist primarily of parking facilities and the gaming casino They offer no non-gaming amenities other than limited restaurant facilities
In spite of these negative competitive factors the two Illinois facilities regularly outperform SCRS in spending per customer Similarly Illinois riverboats in the St Louis area fare significantly better in gaming revenue per square foot gaming revenue per position and admissions per square foot One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
pages 104-106 (John Maxwell Standard amp Poors) and pages 115-118 (Steve Schneider Stife Nicoaus) See also Minutes ofMissouri gaming commission meeting May 24 1995
Missouri Gaming Commission minutes November 25 1996page 27 quoting Jason Ader Bear Stems gaming analyst Examples ofsome of the non-gaming amenities included in Missouri projects include themed restaurants movie theaters botels meeting space retail shopping child
care centers micro breweries an 18th century railroad car restored to its original luxury fountain displays and theaters for live entertainment
Missouri Gaming Commission 1996Annual Report - Page 5
2
The Problem is Clear - How does Missouri Address the Problem
Missouri statutes require the commission to report annually to the Governor and the General Assembly on the competitive state of the gaming industry in Missouri For two years the commission has advised the General Assembly that we believe that there could be a problem with the structure of the gaming industry but that the data is incomplete However we now fmd the data to be clear and compelling A problem exists in the Missouri gaming industry -- the gaming product is not competitive with our neighboring states This will create negative economic results and lower tax revenues
Due to navigational safety constraints most Missouri riverboats do not cruise It has been suggested by gaming analyst and by legislation filed in prior years that the elimination of the boarding time restrictions will help Missouri gaming operators economically and be more consumer friendly The commission believes that the current boarding time restrictions are detrimental to the consumer and make little sense since the riverboats are not leaving the dock They are an artificial barrier to entry and participation Yet the boarding times are essential to enforcing the loss limit A change in the statutes which
3(()
21)Q
i a
OIl
eliminates the boarding times but maintains the loss limit would make the enforcement of the loss limit impossible
Findings
Current Missouri statutes are not competitive with our adjoining states Consequently Missouri is at a competitive disadvantage Repealing the loss limit would make the Missouri operators more competitive Without this change the Missouri gaming industry will continue to be at a competitive disadvantage and over time will decline rather than prosper
Conclusioll
Section 313837 RSMo requires the commission to report annually to the general assembly on the effects ofthe loss limit on the competitiveness of the gaming industry in Missouri The findings above are intended to satisfy this statutory mandate The enactment of any changes in policy as a result of these findings are obviously the purview of the General Assembly and the Governor
Missouri Gaming Commission 1996Annual Report - Page 6
Effect of Tax Rate on Competitiveness
The Missouri tax rate currently mirrors that of its principle competitor the State of Illinois The MissourilIlIinois tax rate consists of a 20 base tax on adjusted gross receipts (AGR) In Missouri 10 of that tax (or 2 of AGR) is a local tax imposed by state statute The funds collected from this local tax are allocated to the home dock city or county fur services necessary for the safety of the public visiting the excursion gambling boat The remaining tax on AGR (18 of gross receipts) is placed in the Gaming Proceeds for Education Fund and may be spent only for public elementary secondary and higher education
Iowa has a graduated tax tbat caps out at 20 for adjusted gross receipts over $3 million Because the graduated rate reaches its cap at the relatively low ceiling 0pound$3 million Iowas effective tax rate is not significantly
The state of Kansas has recently allowed casinos operated by native American Indians These casinos are not taxed
For your future reference a table is contained in Appendix B setting forth the tax rate in each gaming jurisdiction and the regulatory restrictions that are imposed The chart below is a generalization of the tax rates in the various gaming jurisdictions Because of the subtleties of each states tax law it is difficult to precisely chart the rates For a defmitive explanation of the tax rates refer to the aforementioned chart in Appendix B
The Commission does not feel that the 20010 tax rate currently places our licensees at a competitive disadvantage The commission will continue to monitor the performance of all licensees and report developments as they occur
different from that of Missouri and Illinois
Licensees are also responsible for a $2 admission fee for each person who participates in a gaming excursion One dollar of this fee is remitted to the home dock city or county The remaining dollar is used to fund the regulatory activities of the Commission No general revenue is used for any activity of the Commission In addition to the $2 admission fee the gaming boat is billed monthly for the full cost of the enforcement agents assigned to the boat Either through fees or direct billing the gaming operators pay for the full cost of their own regulation
The State of Mississippi assesses a tax of 12 on AGR Unlike Illinois who is limited to licensing 10 gaming operations Mississippi has not limited the number of casinos licensed but has licensed all applicants that have been found suitable The Missouri law does not specifically limit the number of licenses that may be issued but places this responsibility in the hands of the Commission through a best interests of Missouri standard
Comparison of Gaming Tax Rates TaxonAGR
25
20 m ma )(
15 IImTaxRaeJ ~ 10
5
0 NV NJ LA
----------------------------------
MS IL IN IA MO CO so State
Missouri Gamilg Commission 1996Annual Report - Page 7
Missouri Gaming Commission Contributions to Education
Fiscal Year 1995
Gaming Proceeds for Education $ 5661628204
Bingo Tax Proceeds for Education $ 625370396
FY95 Tax Revenue from Gaming $6286998600
Fiscal Year 1996
Gaming Proceeds for Education $9973032067
Bingo Tax Proceeds for Education $ 468417852
FY 96 Tax Revenue from Gaming $10441449919
Total Tax Revenue from Gaming 516728448519
Does the GamblingMoneYiReallyGoo Fund Education
This may be the question inostfrequently asked ofpublic officials The simple answer is yes it does Pursuant to aconstitution~lamendntent passed by theGeneraIAssemblyasSJk 20 in 1992 andapproved bythe voters in a subsequent general electionmiddotall state tax money derived from the proceeds ofgamblirigisspent on education
The text ofthisconstitutional provision contained inArtiete 1lISection 39(d) reads as follows
All state revenues derived from the conduct ofaUgaming activities as are now or hereafter authorized by thiscomtitution orbyJaw unless otherwise provided bylaw on the ~ffectivedateofthissectionshallbemiddot appropriated beginoingJuly 1193solely for the pl1blic instittitions of elementary secondary and higheredueatioll and shaH~ot be included within the defmitionoftotal staterevenues in sectioid 7ofarticle X of this constitution
The tax revenues derivedfimnthe proceeds ofgambling foifiscalyeart998 are estimated to be $155 millionmiddot In ~d~itionto thegamblingm~neymiddot traditional stategeneralrevelluefundingfor publicschoo~ bas Uicreased every year since riverboatgillllblingwasenacted Thetotalstatebudget for educationwhichrepresents approximately 50of the average local school budget is $2965 billion Theg~~lIDgnlOney was designedtoslipplel1lent not replace the primatySufCeS ofpqb lie school fuDding[befunds derived from gambling have be~nusedfortheOiltstandingSchools TtilStFundthemiddotmiddot SchoolDistrict Bond Fund fotmainteniuiceandcapital exp~nclilures for public colleges and universities and to supplcentmenttheschool foundlltionmiddot formula
Missouri Gaming Commission 1996 Annual Report - Page 8
middot Where Does All the middot Gaming Tox Money Go
Orgallizationai Structure OFFICE OF THE EXECUTIVE DIRECTOR
Thomas J Irwin was named Executive Director by the Commission on October 21 1993 Mr Irwin came to the Commission after serving 3 years as Executive Assistant to St Louis County Executive Buzz Westfall Mr Irwin is a graduate ofHarvard University where he earned his masters degree from the Kennedy School ofGovernment He has served as the Chief Budget Officer for the Boston Police Department and was the Executive Assistant for Intergovernmental Affairs for St Louis mayor Vince Schoemehl from 1982 to
1988 Mr Irwin is a veteran of the United States Marine Corps having served
in Vietnam in 1968
i i Mr Irwin is responsible for the day-to-day operations of the
Commission He supervises all staff activities and reports to the Commission Among the staff positions reporting to the Director is Public Information
i K Officer Harold Bailey Mr Bailey is responsible for organizing and
distributing all public documents and reports
I In addition there are six primary functions of the Commission that
it have been divided into sections that report directly to Mr Irwin including
Administration Audit Bingo Corporate Securities Enforcement amp
t ~
Investigations and Legal amp Legislative Affairs
I ADMINISTRA110N
The administration section headed by Deputy Director Deborah A Ferguson provides a range of administrative financial and technical services to
help the Commission accomplish its goals The administrative services can be divided into the following functions accounts payable accounts receivable purchasing data processing budget facility leasing and human resources Accomplishments of the administration section would not have come to pass without the assistance ofChiefAccountant Denny Hodges Persomlel Officer Vicki Glenn Records Administrator Michael Shelhnan and Data Processing Manager John Bluma The administration staff benefited from the addition ofTen a Smith Diane Riddle and Mike Brizendine
The administration section continues to be a focal point of activity with the continued growth of the gaming industry l1te highlight of this past year was the relocation of the Jefferson City office Plaooing and design for the Jefferson City office began in 1995 and culminated with the move in September 1996 Highlights of the new building include a hearing room to conduct Commission meetings adequate file space to house the Commission
records that will be relocated from the St Louis office and the merging of the Bingo and Gaming staff into one facility to enhance coordination ofdaily activities
More specifically the duties of this section are as follows
~ Billing licensees for the processing and aoouallicenses issued to Level One and level Two Occupational employees that work for each riverboat To date there are approximately 9000 licensed employees
~ Billing licensed operators for the full cost of the enforcement agents assigned to each boat
~ Maintaining all Commission fmancial and personnel records which includes the monthly reconciliation of the Gaming Commission fund balance and processing aU payments made by the Commission
gt Preparation and implementation of the Commissions annual budget to ensure compliance with legislative intent
~ Handling all personnel matters and employee training and establishing and implementing written office policies for Commission staff
gt Preparation of fiscal notes to provide estimates to proposed legislation
Data Processiltg
The Data Processing section headed by John Blunm had a busy year in 1996 which included major systems developments as well as the daunting task of moving the Jefferson City office to a new location Some ofthe accomplishments of this important section include
~ Opening new commission offices for its agents at licensed premises
~ Moving the Jefferson City offices of the Riverboat Gaming and the Bingo workgroups to the new location This involved moving all computer workstations servers communications processors and printers to the new
Missouri Gaming Commission 1996 Annual Report - Page 10
building The two separate networks were consolidated into one large network that provides email between all members ofthe two sections for the fIrSt time and allows sharing of peripheral equipment such as laser printers
gt Final testing and implementation ofa billing system for enforcement billing to reimburse the state for expenses related to regulating the casino gaming industry
~ Automation ofannual MULES checks required of the 9000 plus gaming occupational license holders eliminating hundreds ofhours ofdata entry time
gt Upgrade of the physical inventory system to provide more complete reports and to track add-on costs to major inventory items
gt Design and development ofan occupational license history tracking system to provide a complete picture of license payments changes in license status duplicate badges issued and changes in employment status
gt Enhancing existing systems to meet new statutes and rules and regulations
AUDET
The audit section is responsible for the critical function ofensuring that the operators pay their taxes promptly and accurately This section headed by Jolm Davis former Internal Revenue Service Manager developed the Commissions tax remittal system that allows the Commission to capture tax remittance data on a daily basis The operators returns are audited by compliance audit siaffheaded up by senior accountant Kara Hardaway
The audit section also develops audit programs reviews and approves each boats system ofintemal controls conducts on-site performance audits reviews the quarterly CPA audits ofAdjusted Gross Receipts Tax and Admission Tax and reviews all internal audit reports prepared by the casinos internal audit staff
During 1996 the audit section revised Minimum Internal Control Standards that all operators must meet These standards were developed by the
audit staff after a lengthy review process that involved input from the IRS enforcement officers and industry experts
The audit section also implemented a system for tracking and depositing all non-tax revenue received from applicants such as application fees from applicants and reimbursements for Commission services
A summary ofsome ofthe audit sections programs and objectives is contained on page 22
BINGO
The Bingo Division is comprised ofthree separate sections which include the Administration Licensing Audit and Enforcement The Bingo Division Supervisor is Ron Pleus The Audit Section Supervisor is Randall Cahill and the Enforcement Section Supervisor is Sergeant Dwight Franklin The bingo statutes have been revised significantly in recent years requiring many administrative changes to occur within the Division Among the more daunting projects were the establishment ofa new licensing category for hall providers and the implementation ofa new supplier-based tax Specific duties within the three sections of the Bingo Division and the recent statntory changes are briefly outlined below
AdministrativeILicensiog Section - This section is responsible for the processing ofall correspondence and the licensing and maintenance ofover 1500 operator licensees which include all regular and special event bingo operators licenses and 200 hall providers annually This section deposits and records an tax and license receipts received on a daily basis This unit maintains a data base of over 31000 records ofindividuals that are involved in the management conduct andor operation ofbingo games and 3000 records of individuals involved as owners and officers of licensed Hall Providers Currently this staff consist ofthree employees Jane Bax Pam Murphy and Tina Freese In conjunction with the data processing staff the administrative section has developed an automated renewal application system which became fully operational January 1996 This system simplifies the renewal process for the licensee and eliminates wasted steps and duplicate information The system has proven to be a tremendous time saver for the not-for-profit volunteer organizations who are required to file renewals and also helps to reduce the staffmg cost and other administrative cost for the Division
Missouri Gaming Commissioll 1996 Allnual Report ~ Page 11
Audit Section - This section is responsible for the timely audit of all Bingo Product Manufacturers and Suppliers and assisting the Enforcement Section with oil-site inspections of bingo operators The audit staff has developed a comprehensive Manufacturer and Supplier audit procedure manual and has developed procedures for the inspection ofbingo operators The procedures for the inspection of bingo operators are used by both the Enforcement and Audit Staffs The audit section has audited all of the licensed Manufacturers and Suppliers during fiscal year 1996 These audits resulted in over $32000000 in unreported taxes and penalties The auditors also assisted enforcement with inspections and investigations of unlicensed suppliers and operators The section conducts on-site inspections of formerly licensed suppliers to determine ifthe products in inventory were being disposed of in accordance with the statutes The audit staff also assists the administrative staff in auditing the operators quarterly repom
Enforeement Section - This section is headed by Sgt Dwight Franklin a 17 year veteran ofthe Missouri Highway Patrol Sgt Franklin has six (6) officers assigned to the enforcement section Their duties include background investigations of all Manufacturers and Suppliers to include all the key personnel in those companies These investigations include criminal checks fmancial checks past employment history and all litigation involving the applicant In addition the enforcement section is responsible for investigating complaints on the licensed bingo organizations The complaints range from minor rule violations to thefts of large sums of money Complaints are received on a daily basis and are investigated on the basis of severity location and available manpower An additional duty of the Enforcement Section is to complete background investigations on all new potential employees of the Gaming Commission
CORPORATE SECURITIES AND FINANCE
The Commission has established a Section of Corporate Securities and Finance to address the challenge ofregulating the complex fmancial corporate structuring and contractual transactions involving publicly traded and privately held gaming companies This section is comprised of staff trained in legal accounting and business matters to perform examinations of these transactions
The suitability issues examined by the Corporate Securities and Finance Section include complex fmancial and legal suitability issues such as fmancial soundness corporate control legal compliance and procedural licensing issues
The sections examinations are coordinated closely with the Enforcement Division for background investigations and disciplinary matters
Typical transactions that are examined by the section include mergers and acquisitions public debt and equity issuances and private financings such as bank loans and credit facilities The goal of this new section is to provide the Commission with more thorough and sophisticated investigations and analysis of the suitability ofgaming companies and with a uniform system for providing this analysis on corporate securities and fmance issues Through this section the Commission hopes to identifY suitability problems ofapplicants and licensees earlier and more efficiently and to identifY plan for and possibly even avoid potential business closures of licensees due to fmandal matters
The Corporate Securities and Finance Section is headed by the Commissions General Counsel Greg Orner who reports directly to the Executive Director on corporate securities and finance matters The section also includes a Chief Financial Analyst position to be filled soon which will oversee the work ofthe fmancial staff examining the corporate secwities and fmance transactions
The Conunissions Financial Manager Pam Brown haS handled the fmandal analysis of the reported transactions up to now and will continue to perfonn many of the more complex transaction examinations and oversee the work of an accountant Pam Wheelis and a fmancial analyst (planned to be added next year) who are also assigned to the section
ENFORCEMENT
Enforcement for the Missouri Gaming Commission is provided by officers of the Missouri State Highway Patrol and agents of the Internal Revenue Service by way of Memorandums ofUnderstanding which set forth the responsibilities ofeach entity
The enforcement section is headed by Mel Fisher former Superintendent of the Highway Patrol The Gaming Division ofthe Highway Patrol is headed by Captain Dwight Hartung There are seventy-seven officers assigned to the Gaming Division and an additional six officers assigned to the Bingo Enforcement Unit
Some of the advantages ofusing Highway Patrol Officers as gaming agents include
JtfisSOUli Gaming Commission 1996 Annual Report - Page 12
the staff assigned are trained specialists in law enforcement and investigations thus saving the Commission the time effort and expense of recruitment and training
because the agents are licensed law enforcement officers they command immediate respect when interacting with licensees and customers aboard a riverboat as well as when they are in a foreign jurisdiction conducting an investigation
~ the Commission feels that it is important to rotate enforcement staff aboard the various boats this process is much easier with seasoned law enforcement officers who are used to being rotated between assignments as well as in and out of the gaming division
gt provides the ability to access sensitive law enforcement information from other jurisdictions
gt their experience in conducting investigations and handling emergency situations has proven invaluable
The Commissions background investigation units consist of three Highway Patrol Officers and one IRS agent The background investigations conducted by the Missouri Gaming Commission are thorough and take approximately four months to complete if no unusual complications or delays emerge The Commission not only investigates the finances and activities of the company and all its key people but traces the source ofall their funds to ensure that no criminal elements are funding the operation from behind the scene An outline that provides a sketch of a typical background investigation is contained on page 20
LEGAL amp LEGISLATIVE AFFAIRS
The legal amp legislative affairs section is responsible for all legal matters presented to the commission prior to litigation Any litigation involving the commission is handled by the Attorney Generals office In addition this section which is headed by Deputy Director Kevin Mullally develops and drafts legislation endorsed by the commission as well as all rules and regulations Moreover the legal section manages an administrative appeals docket where Mullally serves as Hearing Officer
Greg Orner serves as the commissions general coWlSel and works closely with the enforcement staff reviewing incident reports investigative issues and possible disciplinary actions In addition Mr Omer heads the Corporate Securities section
Some of tbe otber responsibilities of the legal section include
~ Drafting all resolutions for all commission actions and
gt preparing disciplinary complaints and denial orders for proposed action against licensees and
gt conducting quasi-legislative hearings on issues such as continuous docking and boat design and
gt providing legal research services and
gt organizing and maintaining records ofall official commission actions and commission policies and
gt handling inquiries from legislators constituents and other state regulatory agencies
The commissions legal staff is supported by paralegal Heather Grefrath and legal secretary Susan Sundermeyer This support staff is critical to daily operations ofthe legal section and is particularly valuable in the sections role in preparing and managing the rules and regulations all documents necessary for commission meetings and all documents declaring commission policy
In 1997 the legal section will be augmented with the addition ofstaff attorney Robert Little
PENDING LITIGATION
The Missouri Gaming commission denied one occupational license in 1994 thirteen occupational licenses in 1995 and thirty-five occupational licenses in 1996 Each aplicant is presumed WlSuitable and has the burden of proof to prove his or her suitability to the Conunssion An individual may request a hearing to attempt to prove suitability to the Commission by serving
Missouri Gaming Commission 1996Annual Reporl- Page 13
such a request on the commissions Executive Director The following is a list of pending litigation
Petitioner Venue
Bingo Systems amp Supply AHC Cape Girardeau Elks Lodge 639 AHC Cape Girardeau VFW Post 3838 AHC Edwin Pete Rhodes AHC Ideal Bingo Supplies Inc AHC Mary Cracchiolo AHC Maureen L Scott AHC Meramec-Amold Eagles Auxiliary AHC Myron B Carter Sr AHC Pan-Education Institute AHC Raymond J Drury AHC Raytown Women of Today AHC Sandra Termini AHC Stanley L Turner AHC Missouri Gaming Co ~Disc Action MGC Harrahs -Disciplinary Action MGC Boyd Kansas City Inc -Disc Action MGC Jeffery Koester -Denied License MGC Gary Franklin -Denied License MGC Mark Zwolle -Disciplinary Action MGC Anthony Civella -Exclusion MGC Peter Simone -Exclusion MGC Yolanda Nettles MGC Tracy Anderson MGC Carrie Gentry MGC Jimmie B Carsey MGC Cape Girardeau Elks amp VFW Circuit Court ofCape Girardeau County MGC v Veterans Commission
st Louis Public Schools Missouri Supreme Court W Todd Akin v MGC Missouri Supreme Court William D Cmmnisano Jr Missouri Court ofAppeals-Western District Pen-Yan Investment Inc Missouri Court ofAppeals-Western District
SUMMARY OF PENDING LITIGATION
There are fourteen bingo cases pending in the Administrative Hearing Commission
There are three disciplinary cases at the Commission level against gaming licensees pending the outcome ofPen-Yon Investment Inc v Boyd Kansas City Inc and MGC
Pen-Yon Investment Inc v Boyd Kansas City Inc MGC is pending in the Missouri Court ofAppeals Western District regarding disciplinary action taken against Boyd for associating in business affairs with a person who has a felony police record The Commission imposed a fine against Boyd and prohibited Boyd from collecting or distributing any funds from the machines under its service agreement with Pen-Yan
MGC v Missouri Veterans Commission St Louis Public Schools is pending in the Missouri Supreme Court regarding funds received from fmes imposed by the Commission
In W Todd Akin et 01 v MGC the Circuit Court ofCole County ruled in favor of the commission on summary judgment The suit challenges the Commissions authority to grant or deny Harrahs Maryland Heights Corp and Players Maryland Heights LP a license for a continuously docked excursion gambling boat within a man-made basin filled by water from the Mississippi River The petitioners have appealed and the matter is now before the Missouri Supreme Court
Cape Girardeau Elks Lodge et aI v MGC is pending in the Circuit Court of Cape Girardeau County regarding the Commissions decision to suspend the Cape Girardeau Elks Lodge bingo license
In the Matler oWilliam D Cammisano Jr there is an appeal pending in the Missouri Court ofAppeals Western District regarding the Commissions decision to place Mr Cammisano on its List of Excluded Persons
MISSOURI GAMING COMMISSIONS EXCLUSION LIST
The Missouri Gaming Commissionplaced two individuals in 1994 two individuals in 1995 and two individuals in 1996 on the commissions Exclusion List Placement of these individuals on the Exclusion List has been based on prior convictions
As a result of placement on the Exclusion List each individual shall not be permitted eoby into any portion of a riverboat gaming operation within the state ofMissouri and shall be ejected ifdiscovered on such premises Furthermore Excluded Persons shall be prohibited from contact of any kind with Missouri riverboat gaming operations Persons placed on the Listmay file a written petition with the Commission to request a hearing to have their name
JlrJissOIlri Gaming Commission 1996 Annual Report - Page 14
removed from the Exclusion List Currentlyone individual has appealed to the Western District of Missouri and two otbers are pending hearings by the Missouri Gaming Commission
MISSOURI GAMING COMMISSIONS DISCIPLINARY ACTIONS AGAINSTOCCUPATIONAL LICENSEES
The Missouri Gaming Commission has taken disciplinary action against twenty-eight occupational licensees as of September 30 1996 Preliminary
Orders for Disciplinary Action set forth statements of fact that support the proposed disciplinary action and the regulatory and statutory sections involved Individuals may request a hearing by serving such a request on the Commissions Executive Director Currently four individuals have sought hearings before the Commission one ofwhich is stm pending
Occupational License Denials 1994-1996
40
l 30
lt0 c Q)
0 lt5 20 i-Q) 0 E ~ 10
o Year Licenses 1994 1995 1996 IiiI Licenses Denials 1 13 35
Voluntary Exclusions On December 30 1996 after six months of research and consultation the
commission established a unique program to combat problem gambling The List of Disassociated Persons is the result of many months ofconsultation with treatment professionals that help problem gamblers The program allows problem gamblers to exclude themselves from Missouri riverboat casinos under the threat ofarrest for trespassing
In exchange for agreeing not to patronize Missouri riverboat casinos the problem gambler is removed from all casino mailing lists and direct marketing promotions In addition the operators are required to deny persons on the List check cashing privileges and must take away their VIP or players club card
Treatment professionals have advised the commission that the only way for a problem gambler to get help is to admit that heshe has a problem and to accept personal responsibility for that problem by seeking treatment
The Disassociated Persons program is a valuable tool in addressing problem gambling because it requires the individual to admit to having a gambling problem to agree to seek treatment and stay away from gambling casinos Furthermore it includes severe consequences if the problem gambler succumbs to the temptation to gamble Moreover it offers some protection to the problem gambler from the marketing promotions that encourage people to visit the casino properties
The program operates in the following manner
~ The problem gambler must obtain an application for placement on the List ofDisassociated Persons from the commission
~ the application contains various information about the individual an admission that the person is a problem gambler and agrees to stay off Missouri riverboats and seek treatment an authorization to release this information to riverboat operators as well as a Waiver releasing the commission and the licensee from any liability associated with enforcing the rules of the program
~ the application must be personally presented to a commission agent at which time the information is verified and the rules of the program are explained
~ the application is a closed record and its contents may only be disclosed to necessary commission and riverboat personnel
~ the commission considers all applications in closed session
~ once a person is placed on the List heshe cannot petition for removal After consulting with treatment professionals the commission concluded that problem gambling requires lifetime treatment and therefore there is no procedure for removal from the List
Missouri is the frrst jurisdiction in the world to propose a program such as this We will continue to monitor and refme the program and look forward to reporting to you on its impact in next years annual report
ft-Iissouri Gaming CommissiOil 1996 Annual Report - Page 16
Brief Timeline of Riverboat Gaming in Missouri ~ May 13 1991 - General Assembly passes House Bill 149 which authorized
referendum to be submitted to the voters in the November 1992 election to determine whether the State Tourism Commission shall have the power to issue riverboat gambling licenses
gt November 31992 - Missouri voters pass referendum allowing riverboat gaming with a majority ofnearly 63
gt January 1993 - Governor Carnahan announces intentions to push legislation creating an independent Gaming Commission to oversee riverboat gambling
April 29 1993 -- SBs 10 amp 11 creating the Missouri Gaming Commission are signed into law by Governor Carnahan and five Commissioners are appointed Robert Wolfson Chairman Robert Clayton William Quinn Dr Jenice Stewart and Avis Tucker
gt April 30 1993 -- Troy Harris et al v The Missouri Gaming Commission amended petition is filed The petition challenges the constitutionality of Senate Bills 10 amp II
gt- May 17 1993 -- The Missouri Gaming Commission holds its first meeting
~ September 1 1993 -- Proposed Rules and EmergencY Rules are adopted
gt September 20 1993 - 19 riverboat gaming license applications are filed with the commission
gt September 20 1993 - Clarence E Mel Fisher hired as Deputy Director for Enforcement
gt September 24 1993 - Commission contracts with the Internal Revenue Service to perform fmancial investigations for the commission Four IRS agents are assigned to the commission
~ September 28 1993 - Commissions enters into and inter-agency agreement with the Missouri State Highway Patrol to provide enforcement services for the commission
~ October I 1993 - Debbie Ferguson joins the commission as Deputy Director for Administration
November 3 1993 - Commission hires Tom Irwin as Executive Director and Kevin Mullally as Deputy Director for Legal amp Legislative Affairs
November 30 1993 -- Commission announces that it will begin background investigations on the following companies President Riverboat Casino-Missouri St Charles Riverfront Station Inc S1 Joseph Riverboat Partners The Missouri Gaming Company GDC (Supplier) IGT (Supplier) Casino Tokens (Supplier) Paul-Son Dice amp Card Company (Supplier)
gt December 22 1993 - Governor Carnahan signs Executive Order 93-50 designating the enforcement section ofthe Missouri Gaming Commission as a criminal justice agency
1994
gt January 25 1994 -- Missouri Supreme Court in Troy Harris v Missouri Gaming Commission strikes down games of chance including slot machines The court ruled that the Commission did have the authority to issue licenses to riverboat where games ofskill are played Specifically mentioned as games ofskill are poker and blackjack The Court remanded six games to lower court for determination as to whether they are games of skill or chance baccarat craps roulette wheel klondike table faro layout and video games ofchance
~ February 1 1994 -- Rules and Regnlations become effective
February 7 1994 -- Legislature passes resolution to place constitutional amendment on the ballot which would allow the legislature to approve games of chance (slot machines) on riverboats and floating facilities on the Missouri and Mississippi Rivers
gt- April 5 1994 -- Voters defeat constitutional amendment allowing games of chance (slot machines) by an unofficial count of 1263 votes
~ April 29 1994 - Finding of Preliminary Suitability issued to President Riverboat Casino S1 Charles Riverfront Station St Joseph Riverboat Partners and The Missouri Gaming Company
Missouri Gaming Commission 1996 AnnualReport - Page 17
Brief Timeline of Riverboat Gaming in Missouri ~ May 20 1994 -- Governor signs into law SB 740 which defmes games of
chance and enacts more stringent ethics provisions The bill also allows the commission to license a barge in an artificial basin as an excursion gambling boat if it can be demonstrated that safely concerns prevent an operator from cruising from that location
~ May 27 1994 - Commission authorizes as games of skin the following Blackjack Caribbean Stud Poker Poker Double Down Stud Poker Pia Gow Poker Poker Texas Hold Em the video representations ofthese games and Craps
gt May 27 1994 -- Commission authorizes President Riverboat Casino-Missouri to operate the Admiral as a continuously docked excursion gambling boat because cruising would cause danger to the boats passengers
gt May 27 1994 -- Gaming Commission issues first two excursion gambling boat licenses to President Riverboat Casino in st Louis and St Charles Riverfront Station in st Charles
gt May 27 1994 -- Initiative petition tbat would allow voters to approve games ofchance is submitted to the Secretary of State for approval of the form ofthe petition
~ June 6 1994 -- Secretary ofState notifies referendum petitioners that the Attorney General has approved the form of their petition The Secretary of State prepared the following petition title that was approved by the Attorney General
Shall the General Assembly be authorized to permit only upon the Mississippi River and the Missouri River lotteries gift enterprises and games ofchance to be conducted on excursion gambling boats and floating facilities
gt June 9 1994 -- Commission prioritizes Aztar Missouri Corporation Boyd Kansas City Inc and Harrahs North Kansas City as companies to be investigated for licensure pursuant to 11 CSR 45-4060
gt June 22 1994 -- Gaming Commission issues licenses to St Joseph Riverboat Partners in St Joseph and The Missouri Gaming Company in Riverside
~ September 20 1994 -- Commission issues a fmding ofpreliminary suitability to Harrahs North Kansas City Corporation
gt September 20 1994 -- Commission authorizes Harrahs North Kansas City Corporation and st Charles Riverfront Stationl to operate excursion gamblillg boats as continuously docked vessels In both cases the commission found that operating a cruising vessel from the proposed site would cause danger to the boats passengers and the project will generate permanent job creation and land-based development
gt September 22 1994 -- Harrahs North Kansas City Corporation is issued an excursion gambling boat license
gt September 28 1994 - Public hearing regarding Capitol Queen and Casino Jncs application for an excursion gambling boat license results in the commission denying CQCs license and prohibiting them from reapplying for two years
gt October 7 1994 - Commission places William D Cammisano Jr and John Termini on its list of excluded persons
gt November 8 1994 -- Voters approve games ofchance
~ December 9 1994 - Games ofchance are allowed on riverboats
gt December 27 1994 - St Charles Riverfront Station is issued a license to operate the St Charles II as an excursion gambling boat This marks the fIrSt time the commission has licensed a second excursion gambling boat for a single development
The approval was for St Charles Riverfront Stations second boat The flTSt boat continued to cruise until April 16 1996
Missouri Gaming Commission 1996 Annual Report - Page 18
Brief Timeline of Riverboat Gaming in Missouri 1995
)gt- February 22 1995 -- Commission announces it will begin background investigation on Hilton Kansas City Corporation for an excursion gambling boat license
~ March 30 1995 - State Auditor releases final audit report of the Missouri Gaming Commission No major deficiencies are noted
~ April 20 1995 - Commission repays $3 million start-up loan to state general revenue fund
)gt- April 25 1995 - Commission approves continuous docking petitions for Boyd Kansas City Inc and Hilton Kansas City Corporation
~ April 25 1995 -- The commission issues a finding ofpreliminary suitability to Aztar Missouri Gaming Corporation
~ April 26 1995 -- The commission issues an excursion gambling boat license to Aztar Missouri Gaming Corporation in Caruthersville Missouri
)gt- May 24 1995 - The commission announces it will begin background investigations on the following companies Harrahs Maryland Heights Corporation Kansas City Station Inc Players Maryland Heights Inc
gt August 28 1995 - Pursuant to House Bill 574 the duties of the Missouri Horse Racing Commission are transferred to the Gaming Commission
~ September 12 1995 - The commission issues a fmding of preliminary suitability to Boyd Kansas City Inc
September 13 1995 - The commission grants the petition ofHarrahs Maryland Heights Corporation and Players Maryland Heights Inc to operate continuously docked excursion gambling boats at their joint venture in Maryland Heights
)gt- September 13 1995 - The commission issues an excursion gambling boat license to Boyd Kansas City Inc
)gtshy November 16 1995 shy The commission fines the following companies for associating with either socially or in business affairs persons with felony police records or persons with a notorious or unsavory reputation Boyd Kansas City Inc Harrahs North Kansas City Corporation The Missouri Gaming Company
1996
)gtshy February 15 1996 - The commission grants continuous docking rights to Aztar Missouri Gaming Corporation for a second boat in Caruthersville Harrahs North Kansas City for a second boat and Kansas City Station Corporation for two boats in Kansas City
~ April 16 1996 - The commission grants continuous docking rights to Argosy in Riverside Missouri S1 Joseph Riverboat Partners and 81 Charles Riverfront Station
~ May 15 1996 - The commission issues a license to Harrahs North Kansas City for the Lucky Star This is the second boat at the Harrahs North Kansas City mcility Included in the project is a 200-room hotel expanded parking and meeting space
~ June 19 1996 -- The commission places William Canunisano Jr on Exclusion List
~ June 27 1996 - The commission places Peter Simone and Anthony T Civella on Exclusion List
August 28 1996 - The commission takes disciplinary action against Boyd Kansas City Inc for periodic failure to take and report turnstile readings
~ October II 1996 - The commission issues a finding of prel iminary suitability to Hilton Kansas City Corporation and Flamingo Hilton Riverboat Casino LoP
October 18 1996 - TIle commission issues a Class B riverboat gambling license 10 HUlon KlIlIStIS City Corporation and a CltlSs A riverboat gambling license 10 Flamingo Hillon Riverboat CtlSino LP
Missouri Gaming Commission 1996Annual Report - Page 19
Outline of a Background Investigation
Review Application fin Completeneiis
~ Establish number ofkey people
~ Check disclosure forms for completeness
gt Check tax release forms
City Selection Process
~ Contact city to determine how the gaming operator was selected
gt Interview Mayor and City Council members
~ Ifa steering committee was used interview members of that committee
Determine ifany city officials own stock in the selected gaming company
~ Obtain minutes ofcouncil meetings that pertain to riverboat issues (a)selection (b) resolution and (c) ordinance
gt Contact city attorney who handled negotiations with gaming company and obtain correspondence between city and gaming company
~ Contact City Economic Development Director (if applicable)
Docksite
gt- Land selected for gaming operation
J Who was it purchased from (how long have they owned the property) J Price (copy ofcontract)J Copy of plat map and legal description J Determine ifany ofcity officials or selection committee members have
ownership interest in docksite
gt Corps ofEngineers Permit
J Status
J Any concerns by Corps J Wetlands involved
~ Contact DNR for any known concerns in area
gt Check with city for any known dwnpsites with possible hazardous material
gt Developmental agreement between city and gaming operator (obtain copy from city)
gt Detennine if development is feasible
J Is support facility land based or floating J Projected nwnber ofjobs economic aid to area J Traffic flow to area - what improvements are needed - who will pay
for improvements
Riverboat
gt Locate boat and obtain all infonnation about boat (cruise schedule liability carrier)
gt Establish design ofriverboat
gt Determine emergency medical plan for boat
gt Determine ifCoast Guard and other safety requirements have been met
Gaming Operator (Public Corporation Partnership Private Company)
gt Establish contact person with operator
J Determine attorney of record for gaming company J Any missing items from application advise contact person
gt Establish home office (Financial Headquarters)
J Determine a good date and location where all key people can be contacted for a personal interview
J Where can financial record be located
Missouri Gaming Commission 1996Annual Report - Page 20
~
Outline of a Background Investigation
J Breakdown ofmanagement (corporate Board ofDirectors major stockholders)
J Establish flow chart of key people and companies owned by gaming operator
~ Investigation ofKey People will include but not be limited to the following
J Check previous employment work records J Check state local and federal intelligence files J Check for other gaming licenses ifapplicable (check with appropriate
regulators)J Check state federal and local courts for any civil litigation J Check for any arrest record J Check personal and business credit J Check state and local tax status IRS will handle federal taxes
gt Other locations ofgaming operations (currently operating and pending locations)
J Contact gaming regulators for respective locations J Travel to sites to view operations
Establish a file for all key people investigated with summaries establish a file for financial records with summary offinancial viability ofcompany and ability to complete obligations to the city and State ofMissouri Establish a file for other locations of licensure along with summary
Associated Investigations
gt All allegations of Any nature must be investigated and a file established with a written summary
~ Associated investigations must be done in a complete and thorough manner and all reports written accurately
gt Upon completion ofall investigations complete reports and summaries a separate press releasable summary must be written This summary must be approved by Gaming Commission legal staff
Missouri Gaming Commission 1996 Annual Report - Page 21
------------
--------
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------
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----------
Missouri Gaming Commission Compliance Audit Objectives for Licensees
ObjectiveAudit Area ~~~~~~~~~
To ensure accuracy of ticket and turnstile counts reported to MGC including compsIVlPs stayovers and promotions
Table Games
Ticketffurnstile
To ensure accuracy of AGR for table games reported to MGC
Electronic Games To ensure accuracy of AGR for electronic games reported to MGC
Cage Accowltability To ensure accuracy ofcage accountability forms and compliance with internal controls and tax reporting regulations
Observations Cage Main Bank Pit Area Slot Area Turnstile Ticketing
PurchaselRedemptions
$500 Loss Limit
Stayover Procedures
To determine that cashiers are complying with internal controls for chips tokens gaming scrip and cash
To determine compliance with MO statutes and internal controls
To determine compliance with MGC regulations and internal controls
To ensure that manual jackpot payouts are properly handled and the required tax fomIS are completed Manual Jackpot Payouts
To ensure that hopper fills are properly handled and comply with internal controls Hopper Fills
To ensure that table fills are properly handled and comply with internal cootrols Table Fills
To ensure that table credits are properly handled and comply with internal controls Table Credits
To ensure that tracking procedures comply with internal controls and the currency transactions are properly completed Patron TrackingCurrency Transaction Reporting
Imprest Bank Balancing To ensure that proper balancing and accountability is performed during a shift change
Coin Vault To ensure proper maintenance of coin chip and token inventory
Satellite CageSSlot Booths To ensure compliance with internal controls and consistency with main cage procedures
TipsGratuities To ensure compliance with MGC regulations and internal controls
Cage AccessSecurity To ensure compliance with internal controls
Turnstile To ensure accuracy of turnstile count for admissions tax calculation
Ticketing To ensure comp Hance with internal controls and proper handling of stubs voids and issuance
MiscellaneousOther
Surveillance Tapes To review activity for hard soft and tip counts and drops to verify compliance with internal controls
Workpaper Preparation and To establish standardized procedures for MGC audit workpapers and audit reports Audit Reports
-
Missouri Gaming Commission 1996 AnnualReport - Page 22
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Audit Area
Monthly Financial Statement Review
Engagement Letters
Objective --shy
To perform a preliminary review ofmonthly financial statement information for proper completion of fmandal statement templates verification ofadjusted gross receipts to MGC reports and to detect any unusual items which justifY further review when conducting on-site audit
To give advance notification to each boat of the date and scope ofaudit being performed
Financial Statement Verification To determine consistency ofmonthly financial statement information submitted to MGC with boats general ledger system
Balance Sheet Accounts
CashCash Reserve Balance
Cash Receipts
Cash Disbursements
shy -- shy
To determine the existence consistency and fair presentation of the cash balance on the monthly fmancial statements
To determine the consistency and filir presentation of the cash balance on the monthly financial statements and the source of large cash receipts other than gaming revenue
___I
To determine the consistency and fair presentation of the cash balance on the monthly fmancial statements and to trace the outflow of large cash disbursements
i
I
--
AccountslN Notes Receivable
Accrued Admission and Gaming Tax Liability
Chip and Token Liability
Progressive Jackpot Liability
To determine the consistency and fair presentation of the accounts receivable andor notes receivable balance in the monthly fmancial statements
To determine the consistency and fair presentation of the accrued admissiongaming tax liability balance in the monthly financial statements
To determine the consistency and fair presentation of the chip and token liability balance in the monthly financial statements
To determine the consistency and fair presentation of the progressive jackpot liability balance in the monthly fmancial statements
---shy
Tips and Gratuities (Accrued Liability)
Customer Deposit Liability
Accounts Payable
Income Statement Accounts
Revenne - Table Games
To determine the consistency and fair presentation of the accrued tips and gratuities liability in the monthly fmancial statements
-lt ---- shy
To determine the consistency and fair presentation of the customer deposit liabilities in the monthly fiscal statements To determine the consistency and fair presentation ofaccounts payable balance in the monthly fmancial statements
--shy
To determine the consistency and fair presentation of table games revenue as reported to MGC daily and in the monthly fmandal statements
Revenue - Electronic Games To determine the consistency and fair presentation of electronic games revenue as reported to MGC daily and in the monthly financial statements
Missouri Gaming Commission 1996 Annual Report - Page 23
------------
---------
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Revenue - Admissions To detennine the consistency and fair presentation ofadmissions revenue as reported to MGC daily and in the monthly fmancial statements
Promotional Expense To determine that comps are properly recorded as expenses and not deducted from revenue in accordance with GAAP
Pre-Opening Costs To determine whether certain pre-opening and licensing costs are properly expensed or amortized over future periods in accordance with GAAP
Workpaper Preparation and Audit Reports To establish standardized procedures for MGC audit workpapers and audit reports
AissOllri Gamillg Commission 1996 Anllual Report - Page 24
--raquo
-c
-c
CD
l
a
gtlt
raquo
AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
c
Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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I IAztar Missouri Corporation
r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
j i
1
J
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
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~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
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~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
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$lot Machines 349
The Problem is Clear - How does Missouri Address the Problem
Missouri statutes require the commission to report annually to the Governor and the General Assembly on the competitive state of the gaming industry in Missouri For two years the commission has advised the General Assembly that we believe that there could be a problem with the structure of the gaming industry but that the data is incomplete However we now fmd the data to be clear and compelling A problem exists in the Missouri gaming industry -- the gaming product is not competitive with our neighboring states This will create negative economic results and lower tax revenues
Due to navigational safety constraints most Missouri riverboats do not cruise It has been suggested by gaming analyst and by legislation filed in prior years that the elimination of the boarding time restrictions will help Missouri gaming operators economically and be more consumer friendly The commission believes that the current boarding time restrictions are detrimental to the consumer and make little sense since the riverboats are not leaving the dock They are an artificial barrier to entry and participation Yet the boarding times are essential to enforcing the loss limit A change in the statutes which
3(()
21)Q
i a
OIl
eliminates the boarding times but maintains the loss limit would make the enforcement of the loss limit impossible
Findings
Current Missouri statutes are not competitive with our adjoining states Consequently Missouri is at a competitive disadvantage Repealing the loss limit would make the Missouri operators more competitive Without this change the Missouri gaming industry will continue to be at a competitive disadvantage and over time will decline rather than prosper
Conclusioll
Section 313837 RSMo requires the commission to report annually to the general assembly on the effects ofthe loss limit on the competitiveness of the gaming industry in Missouri The findings above are intended to satisfy this statutory mandate The enactment of any changes in policy as a result of these findings are obviously the purview of the General Assembly and the Governor
Missouri Gaming Commission 1996Annual Report - Page 6
Effect of Tax Rate on Competitiveness
The Missouri tax rate currently mirrors that of its principle competitor the State of Illinois The MissourilIlIinois tax rate consists of a 20 base tax on adjusted gross receipts (AGR) In Missouri 10 of that tax (or 2 of AGR) is a local tax imposed by state statute The funds collected from this local tax are allocated to the home dock city or county fur services necessary for the safety of the public visiting the excursion gambling boat The remaining tax on AGR (18 of gross receipts) is placed in the Gaming Proceeds for Education Fund and may be spent only for public elementary secondary and higher education
Iowa has a graduated tax tbat caps out at 20 for adjusted gross receipts over $3 million Because the graduated rate reaches its cap at the relatively low ceiling 0pound$3 million Iowas effective tax rate is not significantly
The state of Kansas has recently allowed casinos operated by native American Indians These casinos are not taxed
For your future reference a table is contained in Appendix B setting forth the tax rate in each gaming jurisdiction and the regulatory restrictions that are imposed The chart below is a generalization of the tax rates in the various gaming jurisdictions Because of the subtleties of each states tax law it is difficult to precisely chart the rates For a defmitive explanation of the tax rates refer to the aforementioned chart in Appendix B
The Commission does not feel that the 20010 tax rate currently places our licensees at a competitive disadvantage The commission will continue to monitor the performance of all licensees and report developments as they occur
different from that of Missouri and Illinois
Licensees are also responsible for a $2 admission fee for each person who participates in a gaming excursion One dollar of this fee is remitted to the home dock city or county The remaining dollar is used to fund the regulatory activities of the Commission No general revenue is used for any activity of the Commission In addition to the $2 admission fee the gaming boat is billed monthly for the full cost of the enforcement agents assigned to the boat Either through fees or direct billing the gaming operators pay for the full cost of their own regulation
The State of Mississippi assesses a tax of 12 on AGR Unlike Illinois who is limited to licensing 10 gaming operations Mississippi has not limited the number of casinos licensed but has licensed all applicants that have been found suitable The Missouri law does not specifically limit the number of licenses that may be issued but places this responsibility in the hands of the Commission through a best interests of Missouri standard
Comparison of Gaming Tax Rates TaxonAGR
25
20 m ma )(
15 IImTaxRaeJ ~ 10
5
0 NV NJ LA
----------------------------------
MS IL IN IA MO CO so State
Missouri Gamilg Commission 1996Annual Report - Page 7
Missouri Gaming Commission Contributions to Education
Fiscal Year 1995
Gaming Proceeds for Education $ 5661628204
Bingo Tax Proceeds for Education $ 625370396
FY95 Tax Revenue from Gaming $6286998600
Fiscal Year 1996
Gaming Proceeds for Education $9973032067
Bingo Tax Proceeds for Education $ 468417852
FY 96 Tax Revenue from Gaming $10441449919
Total Tax Revenue from Gaming 516728448519
Does the GamblingMoneYiReallyGoo Fund Education
This may be the question inostfrequently asked ofpublic officials The simple answer is yes it does Pursuant to aconstitution~lamendntent passed by theGeneraIAssemblyasSJk 20 in 1992 andapproved bythe voters in a subsequent general electionmiddotall state tax money derived from the proceeds ofgamblirigisspent on education
The text ofthisconstitutional provision contained inArtiete 1lISection 39(d) reads as follows
All state revenues derived from the conduct ofaUgaming activities as are now or hereafter authorized by thiscomtitution orbyJaw unless otherwise provided bylaw on the ~ffectivedateofthissectionshallbemiddot appropriated beginoingJuly 1193solely for the pl1blic instittitions of elementary secondary and higheredueatioll and shaH~ot be included within the defmitionoftotal staterevenues in sectioid 7ofarticle X of this constitution
The tax revenues derivedfimnthe proceeds ofgambling foifiscalyeart998 are estimated to be $155 millionmiddot In ~d~itionto thegamblingm~neymiddot traditional stategeneralrevelluefundingfor publicschoo~ bas Uicreased every year since riverboatgillllblingwasenacted Thetotalstatebudget for educationwhichrepresents approximately 50of the average local school budget is $2965 billion Theg~~lIDgnlOney was designedtoslipplel1lent not replace the primatySufCeS ofpqb lie school fuDding[befunds derived from gambling have be~nusedfortheOiltstandingSchools TtilStFundthemiddotmiddot SchoolDistrict Bond Fund fotmainteniuiceandcapital exp~nclilures for public colleges and universities and to supplcentmenttheschool foundlltionmiddot formula
Missouri Gaming Commission 1996 Annual Report - Page 8
for an entertainment experience Gaming is an entertainment industry In the entertainment industry the consumers demand a product that they can enjoy during their leisure time on their own terms
In Missouri there are consumers that indicate they dislike the product which they are being offered Many of these conswners will go out of their way even travel to another state to fmd a product that is more user friendly A cursory survey of the license plates in the parking lot I)fthe Casino Queen in East 8t Louis Illinois adequately demonstrates this point
Many Missouri gaming customers complain that the loss limit is inconvenient intrusive and that it detracts from the entertainment experience they seek at Missouri riverboats To have to account for ones spending during what is supposed to be a leisure activity strikes many as a personal encroachment The fact that this requirement is imposed and enforced by the government further aggravates this perception
Many Missouri consumers react to this restriction by taking their leisure time and tax dollars across the border to JIlinois Iowa or Kansas where there are no limits Furthermore it is apparent that the loss limit severely restricts Missouri riverboat operators from drawing tourist customers from other states Consumers choice as to how to spend their discretionary leisure dollars is evident in the competitive gaming arena
The Missouri gaming law was adopted by the people for its potential to generate economic development its ability to raise needed revenue for education and because it is a leisure activity that many want to pursue The loss limit detracts from aU of these goals While Missouri is currently the beneficiary ofa significant amount of capital investment and new job creation the continuing negative impact of the loss limit renders our economic future in this area uncertain Because of the loss limit Missouri riverboat operators are less competitive the state is losing money to its neighboring states there is a reduction in the number of available jobs and the number of riverboats that can successfully operate in Missouri is restricted
Tax revenues from gaming have benefited education While tax revenues from gaming are still growing after only two years Missouri has seen
~ -
How does the Loss Linlit Work
Pursuant to sect 313805 RSMo the commission is required to regulate the wagering structure to include a maximum loss of five hundred dollars per individual player per gambling excursion In order to enforce this provision the commission requires the following procedure
I In order to board an exctrrsion gambling boat a customer most stand in line to obtain a ptrrchase authorization coupon (scrip) This scrip must be signed by the customer in the presence of a licensed riverboat employee
2 After the customer receives the scrip heshe must get in another line to board the riverboat The scrip also serves as the customers boarding pass
3 The scrip which is time and date stamped must be printed with boxes of denominations ofwhich the total ofall boxes shall not exceed $500 These boxes shall be canceled by pennanent black marker at the time the patron presents the scrip in the riverboat casino lfthe scrip is not signed at the time of presentment or the date and time are not valid the scrip shall be confiscated from the customer If the scrip is valid and there are sufficient available boxes the cashier shall cancel the appropriate number of boxes with a pennanent black marker and complete the transaction
4 In a situation where a customer wishes to buy chips at a table the procedtrre is the same except that the dealer stops the game to execute the transaction On many occasions the use of the scrip to convert cash to chips will slow up the game This is another example of customer dissatisfaction arismg out of the process
Transcript Missouri gaming commission meeting November 25 1996 pages 8 II and 1~17 (Bruce Turner Salomon Brothers) pages 44-46 (Joe Coccimiglio Prodential Securities) pages 57-58 (Tom Ryan Bankers Trust) pages 65-68 (Larry Klatzkin Donaldson Lufkin ampJenrette) pages 84-90 (Richard Byrne Merrill Lynch)
Missouri Garning Commission 1996 Annual Report - Page 4
Win Per Admission CoJql8ring Mssouri and IIhlls
those revenues fall short ofpredictions Analysts from Wall Street tell the commission that we are exporting our tax dollars to other states In a recent commission meeting regarding market size a well respected gaming analyst opined that while Missouri supplies 73 ofthe gaming market in the S1 Louis area it captures only 50 ofthe revenue Z
Finally the gaming experience ofconsumers who do visit Missouri gaming operators is less desirable than the experience offered by competitive states Missouri is offering a more cumbersome and less enjoyable product The commission believes that the gaming policy for Missouri should retain the Missouri dollars in Missouri and attract dollars from other states Our current policy has the exact opposite result
The Costs 0Competitive Ineriority
Limiting the ability ofMissouri operators to offer a competitive entertainment product has direct economic costs which are easily illustrated Missouri gaming riverboats are larger more luxurious and offer more non-gaming amenities than competitors in neighboring states Yet they fail to compete in economic terms even though the bulk ofthe popUlation seeking the entertainment product lives in Missouri
For example the Casino Queen in East St Louis Illinois and the Alton Belle in Alton Illinois combined have less capital investment than St Charles Riverfront Station which has consistently expanded and reinvested since it opened in May 1994 In addition these Illinois gaming facilities consist primarily of parking facilities and the gaming casino They offer no non-gaming amenities other than limited restaurant facilities
In spite of these negative competitive factors the two Illinois facilities regularly outperform SCRS in spending per customer Similarly Illinois riverboats in the St Louis area fare significantly better in gaming revenue per square foot gaming revenue per position and admissions per square foot One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
pages 104-106 (John Maxwell Standard amp Poors) and pages 115-118 (Steve Schneider Stife Nicoaus) See also Minutes ofMissouri gaming commission meeting May 24 1995
Missouri Gaming Commission minutes November 25 1996page 27 quoting Jason Ader Bear Stems gaming analyst Examples ofsome of the non-gaming amenities included in Missouri projects include themed restaurants movie theaters botels meeting space retail shopping child
care centers micro breweries an 18th century railroad car restored to its original luxury fountain displays and theaters for live entertainment
Missouri Gaming Commission 1996Annual Report - Page 5
2
The Problem is Clear - How does Missouri Address the Problem
Missouri statutes require the commission to report annually to the Governor and the General Assembly on the competitive state of the gaming industry in Missouri For two years the commission has advised the General Assembly that we believe that there could be a problem with the structure of the gaming industry but that the data is incomplete However we now fmd the data to be clear and compelling A problem exists in the Missouri gaming industry -- the gaming product is not competitive with our neighboring states This will create negative economic results and lower tax revenues
Due to navigational safety constraints most Missouri riverboats do not cruise It has been suggested by gaming analyst and by legislation filed in prior years that the elimination of the boarding time restrictions will help Missouri gaming operators economically and be more consumer friendly The commission believes that the current boarding time restrictions are detrimental to the consumer and make little sense since the riverboats are not leaving the dock They are an artificial barrier to entry and participation Yet the boarding times are essential to enforcing the loss limit A change in the statutes which
3(()
21)Q
i a
OIl
eliminates the boarding times but maintains the loss limit would make the enforcement of the loss limit impossible
Findings
Current Missouri statutes are not competitive with our adjoining states Consequently Missouri is at a competitive disadvantage Repealing the loss limit would make the Missouri operators more competitive Without this change the Missouri gaming industry will continue to be at a competitive disadvantage and over time will decline rather than prosper
Conclusioll
Section 313837 RSMo requires the commission to report annually to the general assembly on the effects ofthe loss limit on the competitiveness of the gaming industry in Missouri The findings above are intended to satisfy this statutory mandate The enactment of any changes in policy as a result of these findings are obviously the purview of the General Assembly and the Governor
Missouri Gaming Commission 1996Annual Report - Page 6
Effect of Tax Rate on Competitiveness
The Missouri tax rate currently mirrors that of its principle competitor the State of Illinois The MissourilIlIinois tax rate consists of a 20 base tax on adjusted gross receipts (AGR) In Missouri 10 of that tax (or 2 of AGR) is a local tax imposed by state statute The funds collected from this local tax are allocated to the home dock city or county fur services necessary for the safety of the public visiting the excursion gambling boat The remaining tax on AGR (18 of gross receipts) is placed in the Gaming Proceeds for Education Fund and may be spent only for public elementary secondary and higher education
Iowa has a graduated tax tbat caps out at 20 for adjusted gross receipts over $3 million Because the graduated rate reaches its cap at the relatively low ceiling 0pound$3 million Iowas effective tax rate is not significantly
The state of Kansas has recently allowed casinos operated by native American Indians These casinos are not taxed
For your future reference a table is contained in Appendix B setting forth the tax rate in each gaming jurisdiction and the regulatory restrictions that are imposed The chart below is a generalization of the tax rates in the various gaming jurisdictions Because of the subtleties of each states tax law it is difficult to precisely chart the rates For a defmitive explanation of the tax rates refer to the aforementioned chart in Appendix B
The Commission does not feel that the 20010 tax rate currently places our licensees at a competitive disadvantage The commission will continue to monitor the performance of all licensees and report developments as they occur
different from that of Missouri and Illinois
Licensees are also responsible for a $2 admission fee for each person who participates in a gaming excursion One dollar of this fee is remitted to the home dock city or county The remaining dollar is used to fund the regulatory activities of the Commission No general revenue is used for any activity of the Commission In addition to the $2 admission fee the gaming boat is billed monthly for the full cost of the enforcement agents assigned to the boat Either through fees or direct billing the gaming operators pay for the full cost of their own regulation
The State of Mississippi assesses a tax of 12 on AGR Unlike Illinois who is limited to licensing 10 gaming operations Mississippi has not limited the number of casinos licensed but has licensed all applicants that have been found suitable The Missouri law does not specifically limit the number of licenses that may be issued but places this responsibility in the hands of the Commission through a best interests of Missouri standard
Comparison of Gaming Tax Rates TaxonAGR
25
20 m ma )(
15 IImTaxRaeJ ~ 10
5
0 NV NJ LA
----------------------------------
MS IL IN IA MO CO so State
Missouri Gamilg Commission 1996Annual Report - Page 7
Missouri Gaming Commission Contributions to Education
Fiscal Year 1995
Gaming Proceeds for Education $ 5661628204
Bingo Tax Proceeds for Education $ 625370396
FY95 Tax Revenue from Gaming $6286998600
Fiscal Year 1996
Gaming Proceeds for Education $9973032067
Bingo Tax Proceeds for Education $ 468417852
FY 96 Tax Revenue from Gaming $10441449919
Total Tax Revenue from Gaming 516728448519
Does the GamblingMoneYiReallyGoo Fund Education
This may be the question inostfrequently asked ofpublic officials The simple answer is yes it does Pursuant to aconstitution~lamendntent passed by theGeneraIAssemblyasSJk 20 in 1992 andapproved bythe voters in a subsequent general electionmiddotall state tax money derived from the proceeds ofgamblirigisspent on education
The text ofthisconstitutional provision contained inArtiete 1lISection 39(d) reads as follows
All state revenues derived from the conduct ofaUgaming activities as are now or hereafter authorized by thiscomtitution orbyJaw unless otherwise provided bylaw on the ~ffectivedateofthissectionshallbemiddot appropriated beginoingJuly 1193solely for the pl1blic instittitions of elementary secondary and higheredueatioll and shaH~ot be included within the defmitionoftotal staterevenues in sectioid 7ofarticle X of this constitution
The tax revenues derivedfimnthe proceeds ofgambling foifiscalyeart998 are estimated to be $155 millionmiddot In ~d~itionto thegamblingm~neymiddot traditional stategeneralrevelluefundingfor publicschoo~ bas Uicreased every year since riverboatgillllblingwasenacted Thetotalstatebudget for educationwhichrepresents approximately 50of the average local school budget is $2965 billion Theg~~lIDgnlOney was designedtoslipplel1lent not replace the primatySufCeS ofpqb lie school fuDding[befunds derived from gambling have be~nusedfortheOiltstandingSchools TtilStFundthemiddotmiddot SchoolDistrict Bond Fund fotmainteniuiceandcapital exp~nclilures for public colleges and universities and to supplcentmenttheschool foundlltionmiddot formula
Missouri Gaming Commission 1996 Annual Report - Page 8
middot Where Does All the middot Gaming Tox Money Go
Orgallizationai Structure OFFICE OF THE EXECUTIVE DIRECTOR
Thomas J Irwin was named Executive Director by the Commission on October 21 1993 Mr Irwin came to the Commission after serving 3 years as Executive Assistant to St Louis County Executive Buzz Westfall Mr Irwin is a graduate ofHarvard University where he earned his masters degree from the Kennedy School ofGovernment He has served as the Chief Budget Officer for the Boston Police Department and was the Executive Assistant for Intergovernmental Affairs for St Louis mayor Vince Schoemehl from 1982 to
1988 Mr Irwin is a veteran of the United States Marine Corps having served
in Vietnam in 1968
i i Mr Irwin is responsible for the day-to-day operations of the
Commission He supervises all staff activities and reports to the Commission Among the staff positions reporting to the Director is Public Information
i K Officer Harold Bailey Mr Bailey is responsible for organizing and
distributing all public documents and reports
I In addition there are six primary functions of the Commission that
it have been divided into sections that report directly to Mr Irwin including
Administration Audit Bingo Corporate Securities Enforcement amp
t ~
Investigations and Legal amp Legislative Affairs
I ADMINISTRA110N
The administration section headed by Deputy Director Deborah A Ferguson provides a range of administrative financial and technical services to
help the Commission accomplish its goals The administrative services can be divided into the following functions accounts payable accounts receivable purchasing data processing budget facility leasing and human resources Accomplishments of the administration section would not have come to pass without the assistance ofChiefAccountant Denny Hodges Persomlel Officer Vicki Glenn Records Administrator Michael Shelhnan and Data Processing Manager John Bluma The administration staff benefited from the addition ofTen a Smith Diane Riddle and Mike Brizendine
The administration section continues to be a focal point of activity with the continued growth of the gaming industry l1te highlight of this past year was the relocation of the Jefferson City office Plaooing and design for the Jefferson City office began in 1995 and culminated with the move in September 1996 Highlights of the new building include a hearing room to conduct Commission meetings adequate file space to house the Commission
records that will be relocated from the St Louis office and the merging of the Bingo and Gaming staff into one facility to enhance coordination ofdaily activities
More specifically the duties of this section are as follows
~ Billing licensees for the processing and aoouallicenses issued to Level One and level Two Occupational employees that work for each riverboat To date there are approximately 9000 licensed employees
~ Billing licensed operators for the full cost of the enforcement agents assigned to each boat
~ Maintaining all Commission fmancial and personnel records which includes the monthly reconciliation of the Gaming Commission fund balance and processing aU payments made by the Commission
gt Preparation and implementation of the Commissions annual budget to ensure compliance with legislative intent
~ Handling all personnel matters and employee training and establishing and implementing written office policies for Commission staff
gt Preparation of fiscal notes to provide estimates to proposed legislation
Data Processiltg
The Data Processing section headed by John Blunm had a busy year in 1996 which included major systems developments as well as the daunting task of moving the Jefferson City office to a new location Some ofthe accomplishments of this important section include
~ Opening new commission offices for its agents at licensed premises
~ Moving the Jefferson City offices of the Riverboat Gaming and the Bingo workgroups to the new location This involved moving all computer workstations servers communications processors and printers to the new
Missouri Gaming Commission 1996 Annual Report - Page 10
building The two separate networks were consolidated into one large network that provides email between all members ofthe two sections for the fIrSt time and allows sharing of peripheral equipment such as laser printers
gt Final testing and implementation ofa billing system for enforcement billing to reimburse the state for expenses related to regulating the casino gaming industry
~ Automation ofannual MULES checks required of the 9000 plus gaming occupational license holders eliminating hundreds ofhours ofdata entry time
gt Upgrade of the physical inventory system to provide more complete reports and to track add-on costs to major inventory items
gt Design and development ofan occupational license history tracking system to provide a complete picture of license payments changes in license status duplicate badges issued and changes in employment status
gt Enhancing existing systems to meet new statutes and rules and regulations
AUDET
The audit section is responsible for the critical function ofensuring that the operators pay their taxes promptly and accurately This section headed by Jolm Davis former Internal Revenue Service Manager developed the Commissions tax remittal system that allows the Commission to capture tax remittance data on a daily basis The operators returns are audited by compliance audit siaffheaded up by senior accountant Kara Hardaway
The audit section also develops audit programs reviews and approves each boats system ofintemal controls conducts on-site performance audits reviews the quarterly CPA audits ofAdjusted Gross Receipts Tax and Admission Tax and reviews all internal audit reports prepared by the casinos internal audit staff
During 1996 the audit section revised Minimum Internal Control Standards that all operators must meet These standards were developed by the
audit staff after a lengthy review process that involved input from the IRS enforcement officers and industry experts
The audit section also implemented a system for tracking and depositing all non-tax revenue received from applicants such as application fees from applicants and reimbursements for Commission services
A summary ofsome ofthe audit sections programs and objectives is contained on page 22
BINGO
The Bingo Division is comprised ofthree separate sections which include the Administration Licensing Audit and Enforcement The Bingo Division Supervisor is Ron Pleus The Audit Section Supervisor is Randall Cahill and the Enforcement Section Supervisor is Sergeant Dwight Franklin The bingo statutes have been revised significantly in recent years requiring many administrative changes to occur within the Division Among the more daunting projects were the establishment ofa new licensing category for hall providers and the implementation ofa new supplier-based tax Specific duties within the three sections of the Bingo Division and the recent statntory changes are briefly outlined below
AdministrativeILicensiog Section - This section is responsible for the processing ofall correspondence and the licensing and maintenance ofover 1500 operator licensees which include all regular and special event bingo operators licenses and 200 hall providers annually This section deposits and records an tax and license receipts received on a daily basis This unit maintains a data base of over 31000 records ofindividuals that are involved in the management conduct andor operation ofbingo games and 3000 records of individuals involved as owners and officers of licensed Hall Providers Currently this staff consist ofthree employees Jane Bax Pam Murphy and Tina Freese In conjunction with the data processing staff the administrative section has developed an automated renewal application system which became fully operational January 1996 This system simplifies the renewal process for the licensee and eliminates wasted steps and duplicate information The system has proven to be a tremendous time saver for the not-for-profit volunteer organizations who are required to file renewals and also helps to reduce the staffmg cost and other administrative cost for the Division
Missouri Gaming Commissioll 1996 Allnual Report ~ Page 11
Audit Section - This section is responsible for the timely audit of all Bingo Product Manufacturers and Suppliers and assisting the Enforcement Section with oil-site inspections of bingo operators The audit staff has developed a comprehensive Manufacturer and Supplier audit procedure manual and has developed procedures for the inspection ofbingo operators The procedures for the inspection of bingo operators are used by both the Enforcement and Audit Staffs The audit section has audited all of the licensed Manufacturers and Suppliers during fiscal year 1996 These audits resulted in over $32000000 in unreported taxes and penalties The auditors also assisted enforcement with inspections and investigations of unlicensed suppliers and operators The section conducts on-site inspections of formerly licensed suppliers to determine ifthe products in inventory were being disposed of in accordance with the statutes The audit staff also assists the administrative staff in auditing the operators quarterly repom
Enforeement Section - This section is headed by Sgt Dwight Franklin a 17 year veteran ofthe Missouri Highway Patrol Sgt Franklin has six (6) officers assigned to the enforcement section Their duties include background investigations of all Manufacturers and Suppliers to include all the key personnel in those companies These investigations include criminal checks fmancial checks past employment history and all litigation involving the applicant In addition the enforcement section is responsible for investigating complaints on the licensed bingo organizations The complaints range from minor rule violations to thefts of large sums of money Complaints are received on a daily basis and are investigated on the basis of severity location and available manpower An additional duty of the Enforcement Section is to complete background investigations on all new potential employees of the Gaming Commission
CORPORATE SECURITIES AND FINANCE
The Commission has established a Section of Corporate Securities and Finance to address the challenge ofregulating the complex fmancial corporate structuring and contractual transactions involving publicly traded and privately held gaming companies This section is comprised of staff trained in legal accounting and business matters to perform examinations of these transactions
The suitability issues examined by the Corporate Securities and Finance Section include complex fmancial and legal suitability issues such as fmancial soundness corporate control legal compliance and procedural licensing issues
The sections examinations are coordinated closely with the Enforcement Division for background investigations and disciplinary matters
Typical transactions that are examined by the section include mergers and acquisitions public debt and equity issuances and private financings such as bank loans and credit facilities The goal of this new section is to provide the Commission with more thorough and sophisticated investigations and analysis of the suitability ofgaming companies and with a uniform system for providing this analysis on corporate securities and fmance issues Through this section the Commission hopes to identifY suitability problems ofapplicants and licensees earlier and more efficiently and to identifY plan for and possibly even avoid potential business closures of licensees due to fmandal matters
The Corporate Securities and Finance Section is headed by the Commissions General Counsel Greg Orner who reports directly to the Executive Director on corporate securities and finance matters The section also includes a Chief Financial Analyst position to be filled soon which will oversee the work ofthe fmancial staff examining the corporate secwities and fmance transactions
The Conunissions Financial Manager Pam Brown haS handled the fmandal analysis of the reported transactions up to now and will continue to perfonn many of the more complex transaction examinations and oversee the work of an accountant Pam Wheelis and a fmancial analyst (planned to be added next year) who are also assigned to the section
ENFORCEMENT
Enforcement for the Missouri Gaming Commission is provided by officers of the Missouri State Highway Patrol and agents of the Internal Revenue Service by way of Memorandums ofUnderstanding which set forth the responsibilities ofeach entity
The enforcement section is headed by Mel Fisher former Superintendent of the Highway Patrol The Gaming Division ofthe Highway Patrol is headed by Captain Dwight Hartung There are seventy-seven officers assigned to the Gaming Division and an additional six officers assigned to the Bingo Enforcement Unit
Some of the advantages ofusing Highway Patrol Officers as gaming agents include
JtfisSOUli Gaming Commission 1996 Annual Report - Page 12
the staff assigned are trained specialists in law enforcement and investigations thus saving the Commission the time effort and expense of recruitment and training
because the agents are licensed law enforcement officers they command immediate respect when interacting with licensees and customers aboard a riverboat as well as when they are in a foreign jurisdiction conducting an investigation
~ the Commission feels that it is important to rotate enforcement staff aboard the various boats this process is much easier with seasoned law enforcement officers who are used to being rotated between assignments as well as in and out of the gaming division
gt provides the ability to access sensitive law enforcement information from other jurisdictions
gt their experience in conducting investigations and handling emergency situations has proven invaluable
The Commissions background investigation units consist of three Highway Patrol Officers and one IRS agent The background investigations conducted by the Missouri Gaming Commission are thorough and take approximately four months to complete if no unusual complications or delays emerge The Commission not only investigates the finances and activities of the company and all its key people but traces the source ofall their funds to ensure that no criminal elements are funding the operation from behind the scene An outline that provides a sketch of a typical background investigation is contained on page 20
LEGAL amp LEGISLATIVE AFFAIRS
The legal amp legislative affairs section is responsible for all legal matters presented to the commission prior to litigation Any litigation involving the commission is handled by the Attorney Generals office In addition this section which is headed by Deputy Director Kevin Mullally develops and drafts legislation endorsed by the commission as well as all rules and regulations Moreover the legal section manages an administrative appeals docket where Mullally serves as Hearing Officer
Greg Orner serves as the commissions general coWlSel and works closely with the enforcement staff reviewing incident reports investigative issues and possible disciplinary actions In addition Mr Omer heads the Corporate Securities section
Some of tbe otber responsibilities of the legal section include
~ Drafting all resolutions for all commission actions and
gt preparing disciplinary complaints and denial orders for proposed action against licensees and
gt conducting quasi-legislative hearings on issues such as continuous docking and boat design and
gt providing legal research services and
gt organizing and maintaining records ofall official commission actions and commission policies and
gt handling inquiries from legislators constituents and other state regulatory agencies
The commissions legal staff is supported by paralegal Heather Grefrath and legal secretary Susan Sundermeyer This support staff is critical to daily operations ofthe legal section and is particularly valuable in the sections role in preparing and managing the rules and regulations all documents necessary for commission meetings and all documents declaring commission policy
In 1997 the legal section will be augmented with the addition ofstaff attorney Robert Little
PENDING LITIGATION
The Missouri Gaming commission denied one occupational license in 1994 thirteen occupational licenses in 1995 and thirty-five occupational licenses in 1996 Each aplicant is presumed WlSuitable and has the burden of proof to prove his or her suitability to the Conunssion An individual may request a hearing to attempt to prove suitability to the Commission by serving
Missouri Gaming Commission 1996Annual Reporl- Page 13
such a request on the commissions Executive Director The following is a list of pending litigation
Petitioner Venue
Bingo Systems amp Supply AHC Cape Girardeau Elks Lodge 639 AHC Cape Girardeau VFW Post 3838 AHC Edwin Pete Rhodes AHC Ideal Bingo Supplies Inc AHC Mary Cracchiolo AHC Maureen L Scott AHC Meramec-Amold Eagles Auxiliary AHC Myron B Carter Sr AHC Pan-Education Institute AHC Raymond J Drury AHC Raytown Women of Today AHC Sandra Termini AHC Stanley L Turner AHC Missouri Gaming Co ~Disc Action MGC Harrahs -Disciplinary Action MGC Boyd Kansas City Inc -Disc Action MGC Jeffery Koester -Denied License MGC Gary Franklin -Denied License MGC Mark Zwolle -Disciplinary Action MGC Anthony Civella -Exclusion MGC Peter Simone -Exclusion MGC Yolanda Nettles MGC Tracy Anderson MGC Carrie Gentry MGC Jimmie B Carsey MGC Cape Girardeau Elks amp VFW Circuit Court ofCape Girardeau County MGC v Veterans Commission
st Louis Public Schools Missouri Supreme Court W Todd Akin v MGC Missouri Supreme Court William D Cmmnisano Jr Missouri Court ofAppeals-Western District Pen-Yan Investment Inc Missouri Court ofAppeals-Western District
SUMMARY OF PENDING LITIGATION
There are fourteen bingo cases pending in the Administrative Hearing Commission
There are three disciplinary cases at the Commission level against gaming licensees pending the outcome ofPen-Yon Investment Inc v Boyd Kansas City Inc and MGC
Pen-Yon Investment Inc v Boyd Kansas City Inc MGC is pending in the Missouri Court ofAppeals Western District regarding disciplinary action taken against Boyd for associating in business affairs with a person who has a felony police record The Commission imposed a fine against Boyd and prohibited Boyd from collecting or distributing any funds from the machines under its service agreement with Pen-Yan
MGC v Missouri Veterans Commission St Louis Public Schools is pending in the Missouri Supreme Court regarding funds received from fmes imposed by the Commission
In W Todd Akin et 01 v MGC the Circuit Court ofCole County ruled in favor of the commission on summary judgment The suit challenges the Commissions authority to grant or deny Harrahs Maryland Heights Corp and Players Maryland Heights LP a license for a continuously docked excursion gambling boat within a man-made basin filled by water from the Mississippi River The petitioners have appealed and the matter is now before the Missouri Supreme Court
Cape Girardeau Elks Lodge et aI v MGC is pending in the Circuit Court of Cape Girardeau County regarding the Commissions decision to suspend the Cape Girardeau Elks Lodge bingo license
In the Matler oWilliam D Cammisano Jr there is an appeal pending in the Missouri Court ofAppeals Western District regarding the Commissions decision to place Mr Cammisano on its List of Excluded Persons
MISSOURI GAMING COMMISSIONS EXCLUSION LIST
The Missouri Gaming Commissionplaced two individuals in 1994 two individuals in 1995 and two individuals in 1996 on the commissions Exclusion List Placement of these individuals on the Exclusion List has been based on prior convictions
As a result of placement on the Exclusion List each individual shall not be permitted eoby into any portion of a riverboat gaming operation within the state ofMissouri and shall be ejected ifdiscovered on such premises Furthermore Excluded Persons shall be prohibited from contact of any kind with Missouri riverboat gaming operations Persons placed on the Listmay file a written petition with the Commission to request a hearing to have their name
JlrJissOIlri Gaming Commission 1996 Annual Report - Page 14
removed from the Exclusion List Currentlyone individual has appealed to the Western District of Missouri and two otbers are pending hearings by the Missouri Gaming Commission
MISSOURI GAMING COMMISSIONS DISCIPLINARY ACTIONS AGAINSTOCCUPATIONAL LICENSEES
The Missouri Gaming Commission has taken disciplinary action against twenty-eight occupational licensees as of September 30 1996 Preliminary
Orders for Disciplinary Action set forth statements of fact that support the proposed disciplinary action and the regulatory and statutory sections involved Individuals may request a hearing by serving such a request on the Commissions Executive Director Currently four individuals have sought hearings before the Commission one ofwhich is stm pending
Occupational License Denials 1994-1996
40
l 30
lt0 c Q)
0 lt5 20 i-Q) 0 E ~ 10
o Year Licenses 1994 1995 1996 IiiI Licenses Denials 1 13 35
Voluntary Exclusions On December 30 1996 after six months of research and consultation the
commission established a unique program to combat problem gambling The List of Disassociated Persons is the result of many months ofconsultation with treatment professionals that help problem gamblers The program allows problem gamblers to exclude themselves from Missouri riverboat casinos under the threat ofarrest for trespassing
In exchange for agreeing not to patronize Missouri riverboat casinos the problem gambler is removed from all casino mailing lists and direct marketing promotions In addition the operators are required to deny persons on the List check cashing privileges and must take away their VIP or players club card
Treatment professionals have advised the commission that the only way for a problem gambler to get help is to admit that heshe has a problem and to accept personal responsibility for that problem by seeking treatment
The Disassociated Persons program is a valuable tool in addressing problem gambling because it requires the individual to admit to having a gambling problem to agree to seek treatment and stay away from gambling casinos Furthermore it includes severe consequences if the problem gambler succumbs to the temptation to gamble Moreover it offers some protection to the problem gambler from the marketing promotions that encourage people to visit the casino properties
The program operates in the following manner
~ The problem gambler must obtain an application for placement on the List ofDisassociated Persons from the commission
~ the application contains various information about the individual an admission that the person is a problem gambler and agrees to stay off Missouri riverboats and seek treatment an authorization to release this information to riverboat operators as well as a Waiver releasing the commission and the licensee from any liability associated with enforcing the rules of the program
~ the application must be personally presented to a commission agent at which time the information is verified and the rules of the program are explained
~ the application is a closed record and its contents may only be disclosed to necessary commission and riverboat personnel
~ the commission considers all applications in closed session
~ once a person is placed on the List heshe cannot petition for removal After consulting with treatment professionals the commission concluded that problem gambling requires lifetime treatment and therefore there is no procedure for removal from the List
Missouri is the frrst jurisdiction in the world to propose a program such as this We will continue to monitor and refme the program and look forward to reporting to you on its impact in next years annual report
ft-Iissouri Gaming CommissiOil 1996 Annual Report - Page 16
Brief Timeline of Riverboat Gaming in Missouri ~ May 13 1991 - General Assembly passes House Bill 149 which authorized
referendum to be submitted to the voters in the November 1992 election to determine whether the State Tourism Commission shall have the power to issue riverboat gambling licenses
gt November 31992 - Missouri voters pass referendum allowing riverboat gaming with a majority ofnearly 63
gt January 1993 - Governor Carnahan announces intentions to push legislation creating an independent Gaming Commission to oversee riverboat gambling
April 29 1993 -- SBs 10 amp 11 creating the Missouri Gaming Commission are signed into law by Governor Carnahan and five Commissioners are appointed Robert Wolfson Chairman Robert Clayton William Quinn Dr Jenice Stewart and Avis Tucker
gt April 30 1993 -- Troy Harris et al v The Missouri Gaming Commission amended petition is filed The petition challenges the constitutionality of Senate Bills 10 amp II
gt- May 17 1993 -- The Missouri Gaming Commission holds its first meeting
~ September 1 1993 -- Proposed Rules and EmergencY Rules are adopted
gt September 20 1993 - 19 riverboat gaming license applications are filed with the commission
gt September 20 1993 - Clarence E Mel Fisher hired as Deputy Director for Enforcement
gt September 24 1993 - Commission contracts with the Internal Revenue Service to perform fmancial investigations for the commission Four IRS agents are assigned to the commission
~ September 28 1993 - Commissions enters into and inter-agency agreement with the Missouri State Highway Patrol to provide enforcement services for the commission
~ October I 1993 - Debbie Ferguson joins the commission as Deputy Director for Administration
November 3 1993 - Commission hires Tom Irwin as Executive Director and Kevin Mullally as Deputy Director for Legal amp Legislative Affairs
November 30 1993 -- Commission announces that it will begin background investigations on the following companies President Riverboat Casino-Missouri St Charles Riverfront Station Inc S1 Joseph Riverboat Partners The Missouri Gaming Company GDC (Supplier) IGT (Supplier) Casino Tokens (Supplier) Paul-Son Dice amp Card Company (Supplier)
gt December 22 1993 - Governor Carnahan signs Executive Order 93-50 designating the enforcement section ofthe Missouri Gaming Commission as a criminal justice agency
1994
gt January 25 1994 -- Missouri Supreme Court in Troy Harris v Missouri Gaming Commission strikes down games of chance including slot machines The court ruled that the Commission did have the authority to issue licenses to riverboat where games ofskill are played Specifically mentioned as games ofskill are poker and blackjack The Court remanded six games to lower court for determination as to whether they are games of skill or chance baccarat craps roulette wheel klondike table faro layout and video games ofchance
~ February 1 1994 -- Rules and Regnlations become effective
February 7 1994 -- Legislature passes resolution to place constitutional amendment on the ballot which would allow the legislature to approve games of chance (slot machines) on riverboats and floating facilities on the Missouri and Mississippi Rivers
gt- April 5 1994 -- Voters defeat constitutional amendment allowing games of chance (slot machines) by an unofficial count of 1263 votes
~ April 29 1994 - Finding of Preliminary Suitability issued to President Riverboat Casino S1 Charles Riverfront Station St Joseph Riverboat Partners and The Missouri Gaming Company
Missouri Gaming Commission 1996 AnnualReport - Page 17
Brief Timeline of Riverboat Gaming in Missouri ~ May 20 1994 -- Governor signs into law SB 740 which defmes games of
chance and enacts more stringent ethics provisions The bill also allows the commission to license a barge in an artificial basin as an excursion gambling boat if it can be demonstrated that safely concerns prevent an operator from cruising from that location
~ May 27 1994 - Commission authorizes as games of skin the following Blackjack Caribbean Stud Poker Poker Double Down Stud Poker Pia Gow Poker Poker Texas Hold Em the video representations ofthese games and Craps
gt May 27 1994 -- Commission authorizes President Riverboat Casino-Missouri to operate the Admiral as a continuously docked excursion gambling boat because cruising would cause danger to the boats passengers
gt May 27 1994 -- Gaming Commission issues first two excursion gambling boat licenses to President Riverboat Casino in st Louis and St Charles Riverfront Station in st Charles
gt May 27 1994 -- Initiative petition tbat would allow voters to approve games ofchance is submitted to the Secretary of State for approval of the form ofthe petition
~ June 6 1994 -- Secretary ofState notifies referendum petitioners that the Attorney General has approved the form of their petition The Secretary of State prepared the following petition title that was approved by the Attorney General
Shall the General Assembly be authorized to permit only upon the Mississippi River and the Missouri River lotteries gift enterprises and games ofchance to be conducted on excursion gambling boats and floating facilities
gt June 9 1994 -- Commission prioritizes Aztar Missouri Corporation Boyd Kansas City Inc and Harrahs North Kansas City as companies to be investigated for licensure pursuant to 11 CSR 45-4060
gt June 22 1994 -- Gaming Commission issues licenses to St Joseph Riverboat Partners in St Joseph and The Missouri Gaming Company in Riverside
~ September 20 1994 -- Commission issues a fmding ofpreliminary suitability to Harrahs North Kansas City Corporation
gt September 20 1994 -- Commission authorizes Harrahs North Kansas City Corporation and st Charles Riverfront Stationl to operate excursion gamblillg boats as continuously docked vessels In both cases the commission found that operating a cruising vessel from the proposed site would cause danger to the boats passengers and the project will generate permanent job creation and land-based development
gt September 22 1994 -- Harrahs North Kansas City Corporation is issued an excursion gambling boat license
gt September 28 1994 - Public hearing regarding Capitol Queen and Casino Jncs application for an excursion gambling boat license results in the commission denying CQCs license and prohibiting them from reapplying for two years
gt October 7 1994 - Commission places William D Cammisano Jr and John Termini on its list of excluded persons
gt November 8 1994 -- Voters approve games ofchance
~ December 9 1994 - Games ofchance are allowed on riverboats
gt December 27 1994 - St Charles Riverfront Station is issued a license to operate the St Charles II as an excursion gambling boat This marks the fIrSt time the commission has licensed a second excursion gambling boat for a single development
The approval was for St Charles Riverfront Stations second boat The flTSt boat continued to cruise until April 16 1996
Missouri Gaming Commission 1996 Annual Report - Page 18
Brief Timeline of Riverboat Gaming in Missouri 1995
)gt- February 22 1995 -- Commission announces it will begin background investigation on Hilton Kansas City Corporation for an excursion gambling boat license
~ March 30 1995 - State Auditor releases final audit report of the Missouri Gaming Commission No major deficiencies are noted
~ April 20 1995 - Commission repays $3 million start-up loan to state general revenue fund
)gt- April 25 1995 - Commission approves continuous docking petitions for Boyd Kansas City Inc and Hilton Kansas City Corporation
~ April 25 1995 -- The commission issues a finding ofpreliminary suitability to Aztar Missouri Gaming Corporation
~ April 26 1995 -- The commission issues an excursion gambling boat license to Aztar Missouri Gaming Corporation in Caruthersville Missouri
)gt- May 24 1995 - The commission announces it will begin background investigations on the following companies Harrahs Maryland Heights Corporation Kansas City Station Inc Players Maryland Heights Inc
gt August 28 1995 - Pursuant to House Bill 574 the duties of the Missouri Horse Racing Commission are transferred to the Gaming Commission
~ September 12 1995 - The commission issues a fmding of preliminary suitability to Boyd Kansas City Inc
September 13 1995 - The commission grants the petition ofHarrahs Maryland Heights Corporation and Players Maryland Heights Inc to operate continuously docked excursion gambling boats at their joint venture in Maryland Heights
)gt- September 13 1995 - The commission issues an excursion gambling boat license to Boyd Kansas City Inc
)gtshy November 16 1995 shy The commission fines the following companies for associating with either socially or in business affairs persons with felony police records or persons with a notorious or unsavory reputation Boyd Kansas City Inc Harrahs North Kansas City Corporation The Missouri Gaming Company
1996
)gtshy February 15 1996 - The commission grants continuous docking rights to Aztar Missouri Gaming Corporation for a second boat in Caruthersville Harrahs North Kansas City for a second boat and Kansas City Station Corporation for two boats in Kansas City
~ April 16 1996 - The commission grants continuous docking rights to Argosy in Riverside Missouri S1 Joseph Riverboat Partners and 81 Charles Riverfront Station
~ May 15 1996 - The commission issues a license to Harrahs North Kansas City for the Lucky Star This is the second boat at the Harrahs North Kansas City mcility Included in the project is a 200-room hotel expanded parking and meeting space
~ June 19 1996 -- The commission places William Canunisano Jr on Exclusion List
~ June 27 1996 - The commission places Peter Simone and Anthony T Civella on Exclusion List
August 28 1996 - The commission takes disciplinary action against Boyd Kansas City Inc for periodic failure to take and report turnstile readings
~ October II 1996 - The commission issues a finding of prel iminary suitability to Hilton Kansas City Corporation and Flamingo Hilton Riverboat Casino LoP
October 18 1996 - TIle commission issues a Class B riverboat gambling license 10 HUlon KlIlIStIS City Corporation and a CltlSs A riverboat gambling license 10 Flamingo Hillon Riverboat CtlSino LP
Missouri Gaming Commission 1996Annual Report - Page 19
Outline of a Background Investigation
Review Application fin Completeneiis
~ Establish number ofkey people
~ Check disclosure forms for completeness
gt Check tax release forms
City Selection Process
~ Contact city to determine how the gaming operator was selected
gt Interview Mayor and City Council members
~ Ifa steering committee was used interview members of that committee
Determine ifany city officials own stock in the selected gaming company
~ Obtain minutes ofcouncil meetings that pertain to riverboat issues (a)selection (b) resolution and (c) ordinance
gt Contact city attorney who handled negotiations with gaming company and obtain correspondence between city and gaming company
~ Contact City Economic Development Director (if applicable)
Docksite
gt- Land selected for gaming operation
J Who was it purchased from (how long have they owned the property) J Price (copy ofcontract)J Copy of plat map and legal description J Determine ifany ofcity officials or selection committee members have
ownership interest in docksite
gt Corps ofEngineers Permit
J Status
J Any concerns by Corps J Wetlands involved
~ Contact DNR for any known concerns in area
gt Check with city for any known dwnpsites with possible hazardous material
gt Developmental agreement between city and gaming operator (obtain copy from city)
gt Detennine if development is feasible
J Is support facility land based or floating J Projected nwnber ofjobs economic aid to area J Traffic flow to area - what improvements are needed - who will pay
for improvements
Riverboat
gt Locate boat and obtain all infonnation about boat (cruise schedule liability carrier)
gt Establish design ofriverboat
gt Determine emergency medical plan for boat
gt Determine ifCoast Guard and other safety requirements have been met
Gaming Operator (Public Corporation Partnership Private Company)
gt Establish contact person with operator
J Determine attorney of record for gaming company J Any missing items from application advise contact person
gt Establish home office (Financial Headquarters)
J Determine a good date and location where all key people can be contacted for a personal interview
J Where can financial record be located
Missouri Gaming Commission 1996Annual Report - Page 20
~
Outline of a Background Investigation
J Breakdown ofmanagement (corporate Board ofDirectors major stockholders)
J Establish flow chart of key people and companies owned by gaming operator
~ Investigation ofKey People will include but not be limited to the following
J Check previous employment work records J Check state local and federal intelligence files J Check for other gaming licenses ifapplicable (check with appropriate
regulators)J Check state federal and local courts for any civil litigation J Check for any arrest record J Check personal and business credit J Check state and local tax status IRS will handle federal taxes
gt Other locations ofgaming operations (currently operating and pending locations)
J Contact gaming regulators for respective locations J Travel to sites to view operations
Establish a file for all key people investigated with summaries establish a file for financial records with summary offinancial viability ofcompany and ability to complete obligations to the city and State ofMissouri Establish a file for other locations of licensure along with summary
Associated Investigations
gt All allegations of Any nature must be investigated and a file established with a written summary
~ Associated investigations must be done in a complete and thorough manner and all reports written accurately
gt Upon completion ofall investigations complete reports and summaries a separate press releasable summary must be written This summary must be approved by Gaming Commission legal staff
Missouri Gaming Commission 1996 Annual Report - Page 21
------------
--------
-----
------
---
---------
----------
Missouri Gaming Commission Compliance Audit Objectives for Licensees
ObjectiveAudit Area ~~~~~~~~~
To ensure accuracy of ticket and turnstile counts reported to MGC including compsIVlPs stayovers and promotions
Table Games
Ticketffurnstile
To ensure accuracy of AGR for table games reported to MGC
Electronic Games To ensure accuracy of AGR for electronic games reported to MGC
Cage Accowltability To ensure accuracy ofcage accountability forms and compliance with internal controls and tax reporting regulations
Observations Cage Main Bank Pit Area Slot Area Turnstile Ticketing
PurchaselRedemptions
$500 Loss Limit
Stayover Procedures
To determine that cashiers are complying with internal controls for chips tokens gaming scrip and cash
To determine compliance with MO statutes and internal controls
To determine compliance with MGC regulations and internal controls
To ensure that manual jackpot payouts are properly handled and the required tax fomIS are completed Manual Jackpot Payouts
To ensure that hopper fills are properly handled and comply with internal controls Hopper Fills
To ensure that table fills are properly handled and comply with internal cootrols Table Fills
To ensure that table credits are properly handled and comply with internal controls Table Credits
To ensure that tracking procedures comply with internal controls and the currency transactions are properly completed Patron TrackingCurrency Transaction Reporting
Imprest Bank Balancing To ensure that proper balancing and accountability is performed during a shift change
Coin Vault To ensure proper maintenance of coin chip and token inventory
Satellite CageSSlot Booths To ensure compliance with internal controls and consistency with main cage procedures
TipsGratuities To ensure compliance with MGC regulations and internal controls
Cage AccessSecurity To ensure compliance with internal controls
Turnstile To ensure accuracy of turnstile count for admissions tax calculation
Ticketing To ensure comp Hance with internal controls and proper handling of stubs voids and issuance
MiscellaneousOther
Surveillance Tapes To review activity for hard soft and tip counts and drops to verify compliance with internal controls
Workpaper Preparation and To establish standardized procedures for MGC audit workpapers and audit reports Audit Reports
-
Missouri Gaming Commission 1996 AnnualReport - Page 22
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Audit Area
Monthly Financial Statement Review
Engagement Letters
Objective --shy
To perform a preliminary review ofmonthly financial statement information for proper completion of fmandal statement templates verification ofadjusted gross receipts to MGC reports and to detect any unusual items which justifY further review when conducting on-site audit
To give advance notification to each boat of the date and scope ofaudit being performed
Financial Statement Verification To determine consistency ofmonthly financial statement information submitted to MGC with boats general ledger system
Balance Sheet Accounts
CashCash Reserve Balance
Cash Receipts
Cash Disbursements
shy -- shy
To determine the existence consistency and fair presentation of the cash balance on the monthly fmancial statements
To determine the consistency and filir presentation of the cash balance on the monthly financial statements and the source of large cash receipts other than gaming revenue
___I
To determine the consistency and fair presentation of the cash balance on the monthly fmancial statements and to trace the outflow of large cash disbursements
i
I
--
AccountslN Notes Receivable
Accrued Admission and Gaming Tax Liability
Chip and Token Liability
Progressive Jackpot Liability
To determine the consistency and fair presentation of the accounts receivable andor notes receivable balance in the monthly fmancial statements
To determine the consistency and fair presentation of the accrued admissiongaming tax liability balance in the monthly financial statements
To determine the consistency and fair presentation of the chip and token liability balance in the monthly financial statements
To determine the consistency and fair presentation of the progressive jackpot liability balance in the monthly fmancial statements
---shy
Tips and Gratuities (Accrued Liability)
Customer Deposit Liability
Accounts Payable
Income Statement Accounts
Revenne - Table Games
To determine the consistency and fair presentation of the accrued tips and gratuities liability in the monthly fmancial statements
-lt ---- shy
To determine the consistency and fair presentation of the customer deposit liabilities in the monthly fiscal statements To determine the consistency and fair presentation ofaccounts payable balance in the monthly fmancial statements
--shy
To determine the consistency and fair presentation of table games revenue as reported to MGC daily and in the monthly fmandal statements
Revenue - Electronic Games To determine the consistency and fair presentation of electronic games revenue as reported to MGC daily and in the monthly financial statements
Missouri Gaming Commission 1996 Annual Report - Page 23
------------
---------
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Revenue - Admissions To detennine the consistency and fair presentation ofadmissions revenue as reported to MGC daily and in the monthly fmancial statements
Promotional Expense To determine that comps are properly recorded as expenses and not deducted from revenue in accordance with GAAP
Pre-Opening Costs To determine whether certain pre-opening and licensing costs are properly expensed or amortized over future periods in accordance with GAAP
Workpaper Preparation and Audit Reports To establish standardized procedures for MGC audit workpapers and audit reports
AissOllri Gamillg Commission 1996 Anllual Report - Page 24
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AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
c
Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
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~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
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~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
Effect of Tax Rate on Competitiveness
The Missouri tax rate currently mirrors that of its principle competitor the State of Illinois The MissourilIlIinois tax rate consists of a 20 base tax on adjusted gross receipts (AGR) In Missouri 10 of that tax (or 2 of AGR) is a local tax imposed by state statute The funds collected from this local tax are allocated to the home dock city or county fur services necessary for the safety of the public visiting the excursion gambling boat The remaining tax on AGR (18 of gross receipts) is placed in the Gaming Proceeds for Education Fund and may be spent only for public elementary secondary and higher education
Iowa has a graduated tax tbat caps out at 20 for adjusted gross receipts over $3 million Because the graduated rate reaches its cap at the relatively low ceiling 0pound$3 million Iowas effective tax rate is not significantly
The state of Kansas has recently allowed casinos operated by native American Indians These casinos are not taxed
For your future reference a table is contained in Appendix B setting forth the tax rate in each gaming jurisdiction and the regulatory restrictions that are imposed The chart below is a generalization of the tax rates in the various gaming jurisdictions Because of the subtleties of each states tax law it is difficult to precisely chart the rates For a defmitive explanation of the tax rates refer to the aforementioned chart in Appendix B
The Commission does not feel that the 20010 tax rate currently places our licensees at a competitive disadvantage The commission will continue to monitor the performance of all licensees and report developments as they occur
different from that of Missouri and Illinois
Licensees are also responsible for a $2 admission fee for each person who participates in a gaming excursion One dollar of this fee is remitted to the home dock city or county The remaining dollar is used to fund the regulatory activities of the Commission No general revenue is used for any activity of the Commission In addition to the $2 admission fee the gaming boat is billed monthly for the full cost of the enforcement agents assigned to the boat Either through fees or direct billing the gaming operators pay for the full cost of their own regulation
The State of Mississippi assesses a tax of 12 on AGR Unlike Illinois who is limited to licensing 10 gaming operations Mississippi has not limited the number of casinos licensed but has licensed all applicants that have been found suitable The Missouri law does not specifically limit the number of licenses that may be issued but places this responsibility in the hands of the Commission through a best interests of Missouri standard
Comparison of Gaming Tax Rates TaxonAGR
25
20 m ma )(
15 IImTaxRaeJ ~ 10
5
0 NV NJ LA
----------------------------------
MS IL IN IA MO CO so State
Missouri Gamilg Commission 1996Annual Report - Page 7
Missouri Gaming Commission Contributions to Education
Fiscal Year 1995
Gaming Proceeds for Education $ 5661628204
Bingo Tax Proceeds for Education $ 625370396
FY95 Tax Revenue from Gaming $6286998600
Fiscal Year 1996
Gaming Proceeds for Education $9973032067
Bingo Tax Proceeds for Education $ 468417852
FY 96 Tax Revenue from Gaming $10441449919
Total Tax Revenue from Gaming 516728448519
Does the GamblingMoneYiReallyGoo Fund Education
This may be the question inostfrequently asked ofpublic officials The simple answer is yes it does Pursuant to aconstitution~lamendntent passed by theGeneraIAssemblyasSJk 20 in 1992 andapproved bythe voters in a subsequent general electionmiddotall state tax money derived from the proceeds ofgamblirigisspent on education
The text ofthisconstitutional provision contained inArtiete 1lISection 39(d) reads as follows
All state revenues derived from the conduct ofaUgaming activities as are now or hereafter authorized by thiscomtitution orbyJaw unless otherwise provided bylaw on the ~ffectivedateofthissectionshallbemiddot appropriated beginoingJuly 1193solely for the pl1blic instittitions of elementary secondary and higheredueatioll and shaH~ot be included within the defmitionoftotal staterevenues in sectioid 7ofarticle X of this constitution
The tax revenues derivedfimnthe proceeds ofgambling foifiscalyeart998 are estimated to be $155 millionmiddot In ~d~itionto thegamblingm~neymiddot traditional stategeneralrevelluefundingfor publicschoo~ bas Uicreased every year since riverboatgillllblingwasenacted Thetotalstatebudget for educationwhichrepresents approximately 50of the average local school budget is $2965 billion Theg~~lIDgnlOney was designedtoslipplel1lent not replace the primatySufCeS ofpqb lie school fuDding[befunds derived from gambling have be~nusedfortheOiltstandingSchools TtilStFundthemiddotmiddot SchoolDistrict Bond Fund fotmainteniuiceandcapital exp~nclilures for public colleges and universities and to supplcentmenttheschool foundlltionmiddot formula
Missouri Gaming Commission 1996 Annual Report - Page 8
for an entertainment experience Gaming is an entertainment industry In the entertainment industry the consumers demand a product that they can enjoy during their leisure time on their own terms
In Missouri there are consumers that indicate they dislike the product which they are being offered Many of these conswners will go out of their way even travel to another state to fmd a product that is more user friendly A cursory survey of the license plates in the parking lot I)fthe Casino Queen in East 8t Louis Illinois adequately demonstrates this point
Many Missouri gaming customers complain that the loss limit is inconvenient intrusive and that it detracts from the entertainment experience they seek at Missouri riverboats To have to account for ones spending during what is supposed to be a leisure activity strikes many as a personal encroachment The fact that this requirement is imposed and enforced by the government further aggravates this perception
Many Missouri consumers react to this restriction by taking their leisure time and tax dollars across the border to JIlinois Iowa or Kansas where there are no limits Furthermore it is apparent that the loss limit severely restricts Missouri riverboat operators from drawing tourist customers from other states Consumers choice as to how to spend their discretionary leisure dollars is evident in the competitive gaming arena
The Missouri gaming law was adopted by the people for its potential to generate economic development its ability to raise needed revenue for education and because it is a leisure activity that many want to pursue The loss limit detracts from aU of these goals While Missouri is currently the beneficiary ofa significant amount of capital investment and new job creation the continuing negative impact of the loss limit renders our economic future in this area uncertain Because of the loss limit Missouri riverboat operators are less competitive the state is losing money to its neighboring states there is a reduction in the number of available jobs and the number of riverboats that can successfully operate in Missouri is restricted
Tax revenues from gaming have benefited education While tax revenues from gaming are still growing after only two years Missouri has seen
~ -
How does the Loss Linlit Work
Pursuant to sect 313805 RSMo the commission is required to regulate the wagering structure to include a maximum loss of five hundred dollars per individual player per gambling excursion In order to enforce this provision the commission requires the following procedure
I In order to board an exctrrsion gambling boat a customer most stand in line to obtain a ptrrchase authorization coupon (scrip) This scrip must be signed by the customer in the presence of a licensed riverboat employee
2 After the customer receives the scrip heshe must get in another line to board the riverboat The scrip also serves as the customers boarding pass
3 The scrip which is time and date stamped must be printed with boxes of denominations ofwhich the total ofall boxes shall not exceed $500 These boxes shall be canceled by pennanent black marker at the time the patron presents the scrip in the riverboat casino lfthe scrip is not signed at the time of presentment or the date and time are not valid the scrip shall be confiscated from the customer If the scrip is valid and there are sufficient available boxes the cashier shall cancel the appropriate number of boxes with a pennanent black marker and complete the transaction
4 In a situation where a customer wishes to buy chips at a table the procedtrre is the same except that the dealer stops the game to execute the transaction On many occasions the use of the scrip to convert cash to chips will slow up the game This is another example of customer dissatisfaction arismg out of the process
Transcript Missouri gaming commission meeting November 25 1996 pages 8 II and 1~17 (Bruce Turner Salomon Brothers) pages 44-46 (Joe Coccimiglio Prodential Securities) pages 57-58 (Tom Ryan Bankers Trust) pages 65-68 (Larry Klatzkin Donaldson Lufkin ampJenrette) pages 84-90 (Richard Byrne Merrill Lynch)
Missouri Garning Commission 1996 Annual Report - Page 4
Win Per Admission CoJql8ring Mssouri and IIhlls
those revenues fall short ofpredictions Analysts from Wall Street tell the commission that we are exporting our tax dollars to other states In a recent commission meeting regarding market size a well respected gaming analyst opined that while Missouri supplies 73 ofthe gaming market in the S1 Louis area it captures only 50 ofthe revenue Z
Finally the gaming experience ofconsumers who do visit Missouri gaming operators is less desirable than the experience offered by competitive states Missouri is offering a more cumbersome and less enjoyable product The commission believes that the gaming policy for Missouri should retain the Missouri dollars in Missouri and attract dollars from other states Our current policy has the exact opposite result
The Costs 0Competitive Ineriority
Limiting the ability ofMissouri operators to offer a competitive entertainment product has direct economic costs which are easily illustrated Missouri gaming riverboats are larger more luxurious and offer more non-gaming amenities than competitors in neighboring states Yet they fail to compete in economic terms even though the bulk ofthe popUlation seeking the entertainment product lives in Missouri
For example the Casino Queen in East St Louis Illinois and the Alton Belle in Alton Illinois combined have less capital investment than St Charles Riverfront Station which has consistently expanded and reinvested since it opened in May 1994 In addition these Illinois gaming facilities consist primarily of parking facilities and the gaming casino They offer no non-gaming amenities other than limited restaurant facilities
In spite of these negative competitive factors the two Illinois facilities regularly outperform SCRS in spending per customer Similarly Illinois riverboats in the St Louis area fare significantly better in gaming revenue per square foot gaming revenue per position and admissions per square foot One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
pages 104-106 (John Maxwell Standard amp Poors) and pages 115-118 (Steve Schneider Stife Nicoaus) See also Minutes ofMissouri gaming commission meeting May 24 1995
Missouri Gaming Commission minutes November 25 1996page 27 quoting Jason Ader Bear Stems gaming analyst Examples ofsome of the non-gaming amenities included in Missouri projects include themed restaurants movie theaters botels meeting space retail shopping child
care centers micro breweries an 18th century railroad car restored to its original luxury fountain displays and theaters for live entertainment
Missouri Gaming Commission 1996Annual Report - Page 5
2
The Problem is Clear - How does Missouri Address the Problem
Missouri statutes require the commission to report annually to the Governor and the General Assembly on the competitive state of the gaming industry in Missouri For two years the commission has advised the General Assembly that we believe that there could be a problem with the structure of the gaming industry but that the data is incomplete However we now fmd the data to be clear and compelling A problem exists in the Missouri gaming industry -- the gaming product is not competitive with our neighboring states This will create negative economic results and lower tax revenues
Due to navigational safety constraints most Missouri riverboats do not cruise It has been suggested by gaming analyst and by legislation filed in prior years that the elimination of the boarding time restrictions will help Missouri gaming operators economically and be more consumer friendly The commission believes that the current boarding time restrictions are detrimental to the consumer and make little sense since the riverboats are not leaving the dock They are an artificial barrier to entry and participation Yet the boarding times are essential to enforcing the loss limit A change in the statutes which
3(()
21)Q
i a
OIl
eliminates the boarding times but maintains the loss limit would make the enforcement of the loss limit impossible
Findings
Current Missouri statutes are not competitive with our adjoining states Consequently Missouri is at a competitive disadvantage Repealing the loss limit would make the Missouri operators more competitive Without this change the Missouri gaming industry will continue to be at a competitive disadvantage and over time will decline rather than prosper
Conclusioll
Section 313837 RSMo requires the commission to report annually to the general assembly on the effects ofthe loss limit on the competitiveness of the gaming industry in Missouri The findings above are intended to satisfy this statutory mandate The enactment of any changes in policy as a result of these findings are obviously the purview of the General Assembly and the Governor
Missouri Gaming Commission 1996Annual Report - Page 6
Effect of Tax Rate on Competitiveness
The Missouri tax rate currently mirrors that of its principle competitor the State of Illinois The MissourilIlIinois tax rate consists of a 20 base tax on adjusted gross receipts (AGR) In Missouri 10 of that tax (or 2 of AGR) is a local tax imposed by state statute The funds collected from this local tax are allocated to the home dock city or county fur services necessary for the safety of the public visiting the excursion gambling boat The remaining tax on AGR (18 of gross receipts) is placed in the Gaming Proceeds for Education Fund and may be spent only for public elementary secondary and higher education
Iowa has a graduated tax tbat caps out at 20 for adjusted gross receipts over $3 million Because the graduated rate reaches its cap at the relatively low ceiling 0pound$3 million Iowas effective tax rate is not significantly
The state of Kansas has recently allowed casinos operated by native American Indians These casinos are not taxed
For your future reference a table is contained in Appendix B setting forth the tax rate in each gaming jurisdiction and the regulatory restrictions that are imposed The chart below is a generalization of the tax rates in the various gaming jurisdictions Because of the subtleties of each states tax law it is difficult to precisely chart the rates For a defmitive explanation of the tax rates refer to the aforementioned chart in Appendix B
The Commission does not feel that the 20010 tax rate currently places our licensees at a competitive disadvantage The commission will continue to monitor the performance of all licensees and report developments as they occur
different from that of Missouri and Illinois
Licensees are also responsible for a $2 admission fee for each person who participates in a gaming excursion One dollar of this fee is remitted to the home dock city or county The remaining dollar is used to fund the regulatory activities of the Commission No general revenue is used for any activity of the Commission In addition to the $2 admission fee the gaming boat is billed monthly for the full cost of the enforcement agents assigned to the boat Either through fees or direct billing the gaming operators pay for the full cost of their own regulation
The State of Mississippi assesses a tax of 12 on AGR Unlike Illinois who is limited to licensing 10 gaming operations Mississippi has not limited the number of casinos licensed but has licensed all applicants that have been found suitable The Missouri law does not specifically limit the number of licenses that may be issued but places this responsibility in the hands of the Commission through a best interests of Missouri standard
Comparison of Gaming Tax Rates TaxonAGR
25
20 m ma )(
15 IImTaxRaeJ ~ 10
5
0 NV NJ LA
----------------------------------
MS IL IN IA MO CO so State
Missouri Gamilg Commission 1996Annual Report - Page 7
Missouri Gaming Commission Contributions to Education
Fiscal Year 1995
Gaming Proceeds for Education $ 5661628204
Bingo Tax Proceeds for Education $ 625370396
FY95 Tax Revenue from Gaming $6286998600
Fiscal Year 1996
Gaming Proceeds for Education $9973032067
Bingo Tax Proceeds for Education $ 468417852
FY 96 Tax Revenue from Gaming $10441449919
Total Tax Revenue from Gaming 516728448519
Does the GamblingMoneYiReallyGoo Fund Education
This may be the question inostfrequently asked ofpublic officials The simple answer is yes it does Pursuant to aconstitution~lamendntent passed by theGeneraIAssemblyasSJk 20 in 1992 andapproved bythe voters in a subsequent general electionmiddotall state tax money derived from the proceeds ofgamblirigisspent on education
The text ofthisconstitutional provision contained inArtiete 1lISection 39(d) reads as follows
All state revenues derived from the conduct ofaUgaming activities as are now or hereafter authorized by thiscomtitution orbyJaw unless otherwise provided bylaw on the ~ffectivedateofthissectionshallbemiddot appropriated beginoingJuly 1193solely for the pl1blic instittitions of elementary secondary and higheredueatioll and shaH~ot be included within the defmitionoftotal staterevenues in sectioid 7ofarticle X of this constitution
The tax revenues derivedfimnthe proceeds ofgambling foifiscalyeart998 are estimated to be $155 millionmiddot In ~d~itionto thegamblingm~neymiddot traditional stategeneralrevelluefundingfor publicschoo~ bas Uicreased every year since riverboatgillllblingwasenacted Thetotalstatebudget for educationwhichrepresents approximately 50of the average local school budget is $2965 billion Theg~~lIDgnlOney was designedtoslipplel1lent not replace the primatySufCeS ofpqb lie school fuDding[befunds derived from gambling have be~nusedfortheOiltstandingSchools TtilStFundthemiddotmiddot SchoolDistrict Bond Fund fotmainteniuiceandcapital exp~nclilures for public colleges and universities and to supplcentmenttheschool foundlltionmiddot formula
Missouri Gaming Commission 1996 Annual Report - Page 8
middot Where Does All the middot Gaming Tox Money Go
Orgallizationai Structure OFFICE OF THE EXECUTIVE DIRECTOR
Thomas J Irwin was named Executive Director by the Commission on October 21 1993 Mr Irwin came to the Commission after serving 3 years as Executive Assistant to St Louis County Executive Buzz Westfall Mr Irwin is a graduate ofHarvard University where he earned his masters degree from the Kennedy School ofGovernment He has served as the Chief Budget Officer for the Boston Police Department and was the Executive Assistant for Intergovernmental Affairs for St Louis mayor Vince Schoemehl from 1982 to
1988 Mr Irwin is a veteran of the United States Marine Corps having served
in Vietnam in 1968
i i Mr Irwin is responsible for the day-to-day operations of the
Commission He supervises all staff activities and reports to the Commission Among the staff positions reporting to the Director is Public Information
i K Officer Harold Bailey Mr Bailey is responsible for organizing and
distributing all public documents and reports
I In addition there are six primary functions of the Commission that
it have been divided into sections that report directly to Mr Irwin including
Administration Audit Bingo Corporate Securities Enforcement amp
t ~
Investigations and Legal amp Legislative Affairs
I ADMINISTRA110N
The administration section headed by Deputy Director Deborah A Ferguson provides a range of administrative financial and technical services to
help the Commission accomplish its goals The administrative services can be divided into the following functions accounts payable accounts receivable purchasing data processing budget facility leasing and human resources Accomplishments of the administration section would not have come to pass without the assistance ofChiefAccountant Denny Hodges Persomlel Officer Vicki Glenn Records Administrator Michael Shelhnan and Data Processing Manager John Bluma The administration staff benefited from the addition ofTen a Smith Diane Riddle and Mike Brizendine
The administration section continues to be a focal point of activity with the continued growth of the gaming industry l1te highlight of this past year was the relocation of the Jefferson City office Plaooing and design for the Jefferson City office began in 1995 and culminated with the move in September 1996 Highlights of the new building include a hearing room to conduct Commission meetings adequate file space to house the Commission
records that will be relocated from the St Louis office and the merging of the Bingo and Gaming staff into one facility to enhance coordination ofdaily activities
More specifically the duties of this section are as follows
~ Billing licensees for the processing and aoouallicenses issued to Level One and level Two Occupational employees that work for each riverboat To date there are approximately 9000 licensed employees
~ Billing licensed operators for the full cost of the enforcement agents assigned to each boat
~ Maintaining all Commission fmancial and personnel records which includes the monthly reconciliation of the Gaming Commission fund balance and processing aU payments made by the Commission
gt Preparation and implementation of the Commissions annual budget to ensure compliance with legislative intent
~ Handling all personnel matters and employee training and establishing and implementing written office policies for Commission staff
gt Preparation of fiscal notes to provide estimates to proposed legislation
Data Processiltg
The Data Processing section headed by John Blunm had a busy year in 1996 which included major systems developments as well as the daunting task of moving the Jefferson City office to a new location Some ofthe accomplishments of this important section include
~ Opening new commission offices for its agents at licensed premises
~ Moving the Jefferson City offices of the Riverboat Gaming and the Bingo workgroups to the new location This involved moving all computer workstations servers communications processors and printers to the new
Missouri Gaming Commission 1996 Annual Report - Page 10
building The two separate networks were consolidated into one large network that provides email between all members ofthe two sections for the fIrSt time and allows sharing of peripheral equipment such as laser printers
gt Final testing and implementation ofa billing system for enforcement billing to reimburse the state for expenses related to regulating the casino gaming industry
~ Automation ofannual MULES checks required of the 9000 plus gaming occupational license holders eliminating hundreds ofhours ofdata entry time
gt Upgrade of the physical inventory system to provide more complete reports and to track add-on costs to major inventory items
gt Design and development ofan occupational license history tracking system to provide a complete picture of license payments changes in license status duplicate badges issued and changes in employment status
gt Enhancing existing systems to meet new statutes and rules and regulations
AUDET
The audit section is responsible for the critical function ofensuring that the operators pay their taxes promptly and accurately This section headed by Jolm Davis former Internal Revenue Service Manager developed the Commissions tax remittal system that allows the Commission to capture tax remittance data on a daily basis The operators returns are audited by compliance audit siaffheaded up by senior accountant Kara Hardaway
The audit section also develops audit programs reviews and approves each boats system ofintemal controls conducts on-site performance audits reviews the quarterly CPA audits ofAdjusted Gross Receipts Tax and Admission Tax and reviews all internal audit reports prepared by the casinos internal audit staff
During 1996 the audit section revised Minimum Internal Control Standards that all operators must meet These standards were developed by the
audit staff after a lengthy review process that involved input from the IRS enforcement officers and industry experts
The audit section also implemented a system for tracking and depositing all non-tax revenue received from applicants such as application fees from applicants and reimbursements for Commission services
A summary ofsome ofthe audit sections programs and objectives is contained on page 22
BINGO
The Bingo Division is comprised ofthree separate sections which include the Administration Licensing Audit and Enforcement The Bingo Division Supervisor is Ron Pleus The Audit Section Supervisor is Randall Cahill and the Enforcement Section Supervisor is Sergeant Dwight Franklin The bingo statutes have been revised significantly in recent years requiring many administrative changes to occur within the Division Among the more daunting projects were the establishment ofa new licensing category for hall providers and the implementation ofa new supplier-based tax Specific duties within the three sections of the Bingo Division and the recent statntory changes are briefly outlined below
AdministrativeILicensiog Section - This section is responsible for the processing ofall correspondence and the licensing and maintenance ofover 1500 operator licensees which include all regular and special event bingo operators licenses and 200 hall providers annually This section deposits and records an tax and license receipts received on a daily basis This unit maintains a data base of over 31000 records ofindividuals that are involved in the management conduct andor operation ofbingo games and 3000 records of individuals involved as owners and officers of licensed Hall Providers Currently this staff consist ofthree employees Jane Bax Pam Murphy and Tina Freese In conjunction with the data processing staff the administrative section has developed an automated renewal application system which became fully operational January 1996 This system simplifies the renewal process for the licensee and eliminates wasted steps and duplicate information The system has proven to be a tremendous time saver for the not-for-profit volunteer organizations who are required to file renewals and also helps to reduce the staffmg cost and other administrative cost for the Division
Missouri Gaming Commissioll 1996 Allnual Report ~ Page 11
Audit Section - This section is responsible for the timely audit of all Bingo Product Manufacturers and Suppliers and assisting the Enforcement Section with oil-site inspections of bingo operators The audit staff has developed a comprehensive Manufacturer and Supplier audit procedure manual and has developed procedures for the inspection ofbingo operators The procedures for the inspection of bingo operators are used by both the Enforcement and Audit Staffs The audit section has audited all of the licensed Manufacturers and Suppliers during fiscal year 1996 These audits resulted in over $32000000 in unreported taxes and penalties The auditors also assisted enforcement with inspections and investigations of unlicensed suppliers and operators The section conducts on-site inspections of formerly licensed suppliers to determine ifthe products in inventory were being disposed of in accordance with the statutes The audit staff also assists the administrative staff in auditing the operators quarterly repom
Enforeement Section - This section is headed by Sgt Dwight Franklin a 17 year veteran ofthe Missouri Highway Patrol Sgt Franklin has six (6) officers assigned to the enforcement section Their duties include background investigations of all Manufacturers and Suppliers to include all the key personnel in those companies These investigations include criminal checks fmancial checks past employment history and all litigation involving the applicant In addition the enforcement section is responsible for investigating complaints on the licensed bingo organizations The complaints range from minor rule violations to thefts of large sums of money Complaints are received on a daily basis and are investigated on the basis of severity location and available manpower An additional duty of the Enforcement Section is to complete background investigations on all new potential employees of the Gaming Commission
CORPORATE SECURITIES AND FINANCE
The Commission has established a Section of Corporate Securities and Finance to address the challenge ofregulating the complex fmancial corporate structuring and contractual transactions involving publicly traded and privately held gaming companies This section is comprised of staff trained in legal accounting and business matters to perform examinations of these transactions
The suitability issues examined by the Corporate Securities and Finance Section include complex fmancial and legal suitability issues such as fmancial soundness corporate control legal compliance and procedural licensing issues
The sections examinations are coordinated closely with the Enforcement Division for background investigations and disciplinary matters
Typical transactions that are examined by the section include mergers and acquisitions public debt and equity issuances and private financings such as bank loans and credit facilities The goal of this new section is to provide the Commission with more thorough and sophisticated investigations and analysis of the suitability ofgaming companies and with a uniform system for providing this analysis on corporate securities and fmance issues Through this section the Commission hopes to identifY suitability problems ofapplicants and licensees earlier and more efficiently and to identifY plan for and possibly even avoid potential business closures of licensees due to fmandal matters
The Corporate Securities and Finance Section is headed by the Commissions General Counsel Greg Orner who reports directly to the Executive Director on corporate securities and finance matters The section also includes a Chief Financial Analyst position to be filled soon which will oversee the work ofthe fmancial staff examining the corporate secwities and fmance transactions
The Conunissions Financial Manager Pam Brown haS handled the fmandal analysis of the reported transactions up to now and will continue to perfonn many of the more complex transaction examinations and oversee the work of an accountant Pam Wheelis and a fmancial analyst (planned to be added next year) who are also assigned to the section
ENFORCEMENT
Enforcement for the Missouri Gaming Commission is provided by officers of the Missouri State Highway Patrol and agents of the Internal Revenue Service by way of Memorandums ofUnderstanding which set forth the responsibilities ofeach entity
The enforcement section is headed by Mel Fisher former Superintendent of the Highway Patrol The Gaming Division ofthe Highway Patrol is headed by Captain Dwight Hartung There are seventy-seven officers assigned to the Gaming Division and an additional six officers assigned to the Bingo Enforcement Unit
Some of the advantages ofusing Highway Patrol Officers as gaming agents include
JtfisSOUli Gaming Commission 1996 Annual Report - Page 12
the staff assigned are trained specialists in law enforcement and investigations thus saving the Commission the time effort and expense of recruitment and training
because the agents are licensed law enforcement officers they command immediate respect when interacting with licensees and customers aboard a riverboat as well as when they are in a foreign jurisdiction conducting an investigation
~ the Commission feels that it is important to rotate enforcement staff aboard the various boats this process is much easier with seasoned law enforcement officers who are used to being rotated between assignments as well as in and out of the gaming division
gt provides the ability to access sensitive law enforcement information from other jurisdictions
gt their experience in conducting investigations and handling emergency situations has proven invaluable
The Commissions background investigation units consist of three Highway Patrol Officers and one IRS agent The background investigations conducted by the Missouri Gaming Commission are thorough and take approximately four months to complete if no unusual complications or delays emerge The Commission not only investigates the finances and activities of the company and all its key people but traces the source ofall their funds to ensure that no criminal elements are funding the operation from behind the scene An outline that provides a sketch of a typical background investigation is contained on page 20
LEGAL amp LEGISLATIVE AFFAIRS
The legal amp legislative affairs section is responsible for all legal matters presented to the commission prior to litigation Any litigation involving the commission is handled by the Attorney Generals office In addition this section which is headed by Deputy Director Kevin Mullally develops and drafts legislation endorsed by the commission as well as all rules and regulations Moreover the legal section manages an administrative appeals docket where Mullally serves as Hearing Officer
Greg Orner serves as the commissions general coWlSel and works closely with the enforcement staff reviewing incident reports investigative issues and possible disciplinary actions In addition Mr Omer heads the Corporate Securities section
Some of tbe otber responsibilities of the legal section include
~ Drafting all resolutions for all commission actions and
gt preparing disciplinary complaints and denial orders for proposed action against licensees and
gt conducting quasi-legislative hearings on issues such as continuous docking and boat design and
gt providing legal research services and
gt organizing and maintaining records ofall official commission actions and commission policies and
gt handling inquiries from legislators constituents and other state regulatory agencies
The commissions legal staff is supported by paralegal Heather Grefrath and legal secretary Susan Sundermeyer This support staff is critical to daily operations ofthe legal section and is particularly valuable in the sections role in preparing and managing the rules and regulations all documents necessary for commission meetings and all documents declaring commission policy
In 1997 the legal section will be augmented with the addition ofstaff attorney Robert Little
PENDING LITIGATION
The Missouri Gaming commission denied one occupational license in 1994 thirteen occupational licenses in 1995 and thirty-five occupational licenses in 1996 Each aplicant is presumed WlSuitable and has the burden of proof to prove his or her suitability to the Conunssion An individual may request a hearing to attempt to prove suitability to the Commission by serving
Missouri Gaming Commission 1996Annual Reporl- Page 13
such a request on the commissions Executive Director The following is a list of pending litigation
Petitioner Venue
Bingo Systems amp Supply AHC Cape Girardeau Elks Lodge 639 AHC Cape Girardeau VFW Post 3838 AHC Edwin Pete Rhodes AHC Ideal Bingo Supplies Inc AHC Mary Cracchiolo AHC Maureen L Scott AHC Meramec-Amold Eagles Auxiliary AHC Myron B Carter Sr AHC Pan-Education Institute AHC Raymond J Drury AHC Raytown Women of Today AHC Sandra Termini AHC Stanley L Turner AHC Missouri Gaming Co ~Disc Action MGC Harrahs -Disciplinary Action MGC Boyd Kansas City Inc -Disc Action MGC Jeffery Koester -Denied License MGC Gary Franklin -Denied License MGC Mark Zwolle -Disciplinary Action MGC Anthony Civella -Exclusion MGC Peter Simone -Exclusion MGC Yolanda Nettles MGC Tracy Anderson MGC Carrie Gentry MGC Jimmie B Carsey MGC Cape Girardeau Elks amp VFW Circuit Court ofCape Girardeau County MGC v Veterans Commission
st Louis Public Schools Missouri Supreme Court W Todd Akin v MGC Missouri Supreme Court William D Cmmnisano Jr Missouri Court ofAppeals-Western District Pen-Yan Investment Inc Missouri Court ofAppeals-Western District
SUMMARY OF PENDING LITIGATION
There are fourteen bingo cases pending in the Administrative Hearing Commission
There are three disciplinary cases at the Commission level against gaming licensees pending the outcome ofPen-Yon Investment Inc v Boyd Kansas City Inc and MGC
Pen-Yon Investment Inc v Boyd Kansas City Inc MGC is pending in the Missouri Court ofAppeals Western District regarding disciplinary action taken against Boyd for associating in business affairs with a person who has a felony police record The Commission imposed a fine against Boyd and prohibited Boyd from collecting or distributing any funds from the machines under its service agreement with Pen-Yan
MGC v Missouri Veterans Commission St Louis Public Schools is pending in the Missouri Supreme Court regarding funds received from fmes imposed by the Commission
In W Todd Akin et 01 v MGC the Circuit Court ofCole County ruled in favor of the commission on summary judgment The suit challenges the Commissions authority to grant or deny Harrahs Maryland Heights Corp and Players Maryland Heights LP a license for a continuously docked excursion gambling boat within a man-made basin filled by water from the Mississippi River The petitioners have appealed and the matter is now before the Missouri Supreme Court
Cape Girardeau Elks Lodge et aI v MGC is pending in the Circuit Court of Cape Girardeau County regarding the Commissions decision to suspend the Cape Girardeau Elks Lodge bingo license
In the Matler oWilliam D Cammisano Jr there is an appeal pending in the Missouri Court ofAppeals Western District regarding the Commissions decision to place Mr Cammisano on its List of Excluded Persons
MISSOURI GAMING COMMISSIONS EXCLUSION LIST
The Missouri Gaming Commissionplaced two individuals in 1994 two individuals in 1995 and two individuals in 1996 on the commissions Exclusion List Placement of these individuals on the Exclusion List has been based on prior convictions
As a result of placement on the Exclusion List each individual shall not be permitted eoby into any portion of a riverboat gaming operation within the state ofMissouri and shall be ejected ifdiscovered on such premises Furthermore Excluded Persons shall be prohibited from contact of any kind with Missouri riverboat gaming operations Persons placed on the Listmay file a written petition with the Commission to request a hearing to have their name
JlrJissOIlri Gaming Commission 1996 Annual Report - Page 14
removed from the Exclusion List Currentlyone individual has appealed to the Western District of Missouri and two otbers are pending hearings by the Missouri Gaming Commission
MISSOURI GAMING COMMISSIONS DISCIPLINARY ACTIONS AGAINSTOCCUPATIONAL LICENSEES
The Missouri Gaming Commission has taken disciplinary action against twenty-eight occupational licensees as of September 30 1996 Preliminary
Orders for Disciplinary Action set forth statements of fact that support the proposed disciplinary action and the regulatory and statutory sections involved Individuals may request a hearing by serving such a request on the Commissions Executive Director Currently four individuals have sought hearings before the Commission one ofwhich is stm pending
Occupational License Denials 1994-1996
40
l 30
lt0 c Q)
0 lt5 20 i-Q) 0 E ~ 10
o Year Licenses 1994 1995 1996 IiiI Licenses Denials 1 13 35
Voluntary Exclusions On December 30 1996 after six months of research and consultation the
commission established a unique program to combat problem gambling The List of Disassociated Persons is the result of many months ofconsultation with treatment professionals that help problem gamblers The program allows problem gamblers to exclude themselves from Missouri riverboat casinos under the threat ofarrest for trespassing
In exchange for agreeing not to patronize Missouri riverboat casinos the problem gambler is removed from all casino mailing lists and direct marketing promotions In addition the operators are required to deny persons on the List check cashing privileges and must take away their VIP or players club card
Treatment professionals have advised the commission that the only way for a problem gambler to get help is to admit that heshe has a problem and to accept personal responsibility for that problem by seeking treatment
The Disassociated Persons program is a valuable tool in addressing problem gambling because it requires the individual to admit to having a gambling problem to agree to seek treatment and stay away from gambling casinos Furthermore it includes severe consequences if the problem gambler succumbs to the temptation to gamble Moreover it offers some protection to the problem gambler from the marketing promotions that encourage people to visit the casino properties
The program operates in the following manner
~ The problem gambler must obtain an application for placement on the List ofDisassociated Persons from the commission
~ the application contains various information about the individual an admission that the person is a problem gambler and agrees to stay off Missouri riverboats and seek treatment an authorization to release this information to riverboat operators as well as a Waiver releasing the commission and the licensee from any liability associated with enforcing the rules of the program
~ the application must be personally presented to a commission agent at which time the information is verified and the rules of the program are explained
~ the application is a closed record and its contents may only be disclosed to necessary commission and riverboat personnel
~ the commission considers all applications in closed session
~ once a person is placed on the List heshe cannot petition for removal After consulting with treatment professionals the commission concluded that problem gambling requires lifetime treatment and therefore there is no procedure for removal from the List
Missouri is the frrst jurisdiction in the world to propose a program such as this We will continue to monitor and refme the program and look forward to reporting to you on its impact in next years annual report
ft-Iissouri Gaming CommissiOil 1996 Annual Report - Page 16
Brief Timeline of Riverboat Gaming in Missouri ~ May 13 1991 - General Assembly passes House Bill 149 which authorized
referendum to be submitted to the voters in the November 1992 election to determine whether the State Tourism Commission shall have the power to issue riverboat gambling licenses
gt November 31992 - Missouri voters pass referendum allowing riverboat gaming with a majority ofnearly 63
gt January 1993 - Governor Carnahan announces intentions to push legislation creating an independent Gaming Commission to oversee riverboat gambling
April 29 1993 -- SBs 10 amp 11 creating the Missouri Gaming Commission are signed into law by Governor Carnahan and five Commissioners are appointed Robert Wolfson Chairman Robert Clayton William Quinn Dr Jenice Stewart and Avis Tucker
gt April 30 1993 -- Troy Harris et al v The Missouri Gaming Commission amended petition is filed The petition challenges the constitutionality of Senate Bills 10 amp II
gt- May 17 1993 -- The Missouri Gaming Commission holds its first meeting
~ September 1 1993 -- Proposed Rules and EmergencY Rules are adopted
gt September 20 1993 - 19 riverboat gaming license applications are filed with the commission
gt September 20 1993 - Clarence E Mel Fisher hired as Deputy Director for Enforcement
gt September 24 1993 - Commission contracts with the Internal Revenue Service to perform fmancial investigations for the commission Four IRS agents are assigned to the commission
~ September 28 1993 - Commissions enters into and inter-agency agreement with the Missouri State Highway Patrol to provide enforcement services for the commission
~ October I 1993 - Debbie Ferguson joins the commission as Deputy Director for Administration
November 3 1993 - Commission hires Tom Irwin as Executive Director and Kevin Mullally as Deputy Director for Legal amp Legislative Affairs
November 30 1993 -- Commission announces that it will begin background investigations on the following companies President Riverboat Casino-Missouri St Charles Riverfront Station Inc S1 Joseph Riverboat Partners The Missouri Gaming Company GDC (Supplier) IGT (Supplier) Casino Tokens (Supplier) Paul-Son Dice amp Card Company (Supplier)
gt December 22 1993 - Governor Carnahan signs Executive Order 93-50 designating the enforcement section ofthe Missouri Gaming Commission as a criminal justice agency
1994
gt January 25 1994 -- Missouri Supreme Court in Troy Harris v Missouri Gaming Commission strikes down games of chance including slot machines The court ruled that the Commission did have the authority to issue licenses to riverboat where games ofskill are played Specifically mentioned as games ofskill are poker and blackjack The Court remanded six games to lower court for determination as to whether they are games of skill or chance baccarat craps roulette wheel klondike table faro layout and video games ofchance
~ February 1 1994 -- Rules and Regnlations become effective
February 7 1994 -- Legislature passes resolution to place constitutional amendment on the ballot which would allow the legislature to approve games of chance (slot machines) on riverboats and floating facilities on the Missouri and Mississippi Rivers
gt- April 5 1994 -- Voters defeat constitutional amendment allowing games of chance (slot machines) by an unofficial count of 1263 votes
~ April 29 1994 - Finding of Preliminary Suitability issued to President Riverboat Casino S1 Charles Riverfront Station St Joseph Riverboat Partners and The Missouri Gaming Company
Missouri Gaming Commission 1996 AnnualReport - Page 17
Brief Timeline of Riverboat Gaming in Missouri ~ May 20 1994 -- Governor signs into law SB 740 which defmes games of
chance and enacts more stringent ethics provisions The bill also allows the commission to license a barge in an artificial basin as an excursion gambling boat if it can be demonstrated that safely concerns prevent an operator from cruising from that location
~ May 27 1994 - Commission authorizes as games of skin the following Blackjack Caribbean Stud Poker Poker Double Down Stud Poker Pia Gow Poker Poker Texas Hold Em the video representations ofthese games and Craps
gt May 27 1994 -- Commission authorizes President Riverboat Casino-Missouri to operate the Admiral as a continuously docked excursion gambling boat because cruising would cause danger to the boats passengers
gt May 27 1994 -- Gaming Commission issues first two excursion gambling boat licenses to President Riverboat Casino in st Louis and St Charles Riverfront Station in st Charles
gt May 27 1994 -- Initiative petition tbat would allow voters to approve games ofchance is submitted to the Secretary of State for approval of the form ofthe petition
~ June 6 1994 -- Secretary ofState notifies referendum petitioners that the Attorney General has approved the form of their petition The Secretary of State prepared the following petition title that was approved by the Attorney General
Shall the General Assembly be authorized to permit only upon the Mississippi River and the Missouri River lotteries gift enterprises and games ofchance to be conducted on excursion gambling boats and floating facilities
gt June 9 1994 -- Commission prioritizes Aztar Missouri Corporation Boyd Kansas City Inc and Harrahs North Kansas City as companies to be investigated for licensure pursuant to 11 CSR 45-4060
gt June 22 1994 -- Gaming Commission issues licenses to St Joseph Riverboat Partners in St Joseph and The Missouri Gaming Company in Riverside
~ September 20 1994 -- Commission issues a fmding ofpreliminary suitability to Harrahs North Kansas City Corporation
gt September 20 1994 -- Commission authorizes Harrahs North Kansas City Corporation and st Charles Riverfront Stationl to operate excursion gamblillg boats as continuously docked vessels In both cases the commission found that operating a cruising vessel from the proposed site would cause danger to the boats passengers and the project will generate permanent job creation and land-based development
gt September 22 1994 -- Harrahs North Kansas City Corporation is issued an excursion gambling boat license
gt September 28 1994 - Public hearing regarding Capitol Queen and Casino Jncs application for an excursion gambling boat license results in the commission denying CQCs license and prohibiting them from reapplying for two years
gt October 7 1994 - Commission places William D Cammisano Jr and John Termini on its list of excluded persons
gt November 8 1994 -- Voters approve games ofchance
~ December 9 1994 - Games ofchance are allowed on riverboats
gt December 27 1994 - St Charles Riverfront Station is issued a license to operate the St Charles II as an excursion gambling boat This marks the fIrSt time the commission has licensed a second excursion gambling boat for a single development
The approval was for St Charles Riverfront Stations second boat The flTSt boat continued to cruise until April 16 1996
Missouri Gaming Commission 1996 Annual Report - Page 18
Brief Timeline of Riverboat Gaming in Missouri 1995
)gt- February 22 1995 -- Commission announces it will begin background investigation on Hilton Kansas City Corporation for an excursion gambling boat license
~ March 30 1995 - State Auditor releases final audit report of the Missouri Gaming Commission No major deficiencies are noted
~ April 20 1995 - Commission repays $3 million start-up loan to state general revenue fund
)gt- April 25 1995 - Commission approves continuous docking petitions for Boyd Kansas City Inc and Hilton Kansas City Corporation
~ April 25 1995 -- The commission issues a finding ofpreliminary suitability to Aztar Missouri Gaming Corporation
~ April 26 1995 -- The commission issues an excursion gambling boat license to Aztar Missouri Gaming Corporation in Caruthersville Missouri
)gt- May 24 1995 - The commission announces it will begin background investigations on the following companies Harrahs Maryland Heights Corporation Kansas City Station Inc Players Maryland Heights Inc
gt August 28 1995 - Pursuant to House Bill 574 the duties of the Missouri Horse Racing Commission are transferred to the Gaming Commission
~ September 12 1995 - The commission issues a fmding of preliminary suitability to Boyd Kansas City Inc
September 13 1995 - The commission grants the petition ofHarrahs Maryland Heights Corporation and Players Maryland Heights Inc to operate continuously docked excursion gambling boats at their joint venture in Maryland Heights
)gt- September 13 1995 - The commission issues an excursion gambling boat license to Boyd Kansas City Inc
)gtshy November 16 1995 shy The commission fines the following companies for associating with either socially or in business affairs persons with felony police records or persons with a notorious or unsavory reputation Boyd Kansas City Inc Harrahs North Kansas City Corporation The Missouri Gaming Company
1996
)gtshy February 15 1996 - The commission grants continuous docking rights to Aztar Missouri Gaming Corporation for a second boat in Caruthersville Harrahs North Kansas City for a second boat and Kansas City Station Corporation for two boats in Kansas City
~ April 16 1996 - The commission grants continuous docking rights to Argosy in Riverside Missouri S1 Joseph Riverboat Partners and 81 Charles Riverfront Station
~ May 15 1996 - The commission issues a license to Harrahs North Kansas City for the Lucky Star This is the second boat at the Harrahs North Kansas City mcility Included in the project is a 200-room hotel expanded parking and meeting space
~ June 19 1996 -- The commission places William Canunisano Jr on Exclusion List
~ June 27 1996 - The commission places Peter Simone and Anthony T Civella on Exclusion List
August 28 1996 - The commission takes disciplinary action against Boyd Kansas City Inc for periodic failure to take and report turnstile readings
~ October II 1996 - The commission issues a finding of prel iminary suitability to Hilton Kansas City Corporation and Flamingo Hilton Riverboat Casino LoP
October 18 1996 - TIle commission issues a Class B riverboat gambling license 10 HUlon KlIlIStIS City Corporation and a CltlSs A riverboat gambling license 10 Flamingo Hillon Riverboat CtlSino LP
Missouri Gaming Commission 1996Annual Report - Page 19
Outline of a Background Investigation
Review Application fin Completeneiis
~ Establish number ofkey people
~ Check disclosure forms for completeness
gt Check tax release forms
City Selection Process
~ Contact city to determine how the gaming operator was selected
gt Interview Mayor and City Council members
~ Ifa steering committee was used interview members of that committee
Determine ifany city officials own stock in the selected gaming company
~ Obtain minutes ofcouncil meetings that pertain to riverboat issues (a)selection (b) resolution and (c) ordinance
gt Contact city attorney who handled negotiations with gaming company and obtain correspondence between city and gaming company
~ Contact City Economic Development Director (if applicable)
Docksite
gt- Land selected for gaming operation
J Who was it purchased from (how long have they owned the property) J Price (copy ofcontract)J Copy of plat map and legal description J Determine ifany ofcity officials or selection committee members have
ownership interest in docksite
gt Corps ofEngineers Permit
J Status
J Any concerns by Corps J Wetlands involved
~ Contact DNR for any known concerns in area
gt Check with city for any known dwnpsites with possible hazardous material
gt Developmental agreement between city and gaming operator (obtain copy from city)
gt Detennine if development is feasible
J Is support facility land based or floating J Projected nwnber ofjobs economic aid to area J Traffic flow to area - what improvements are needed - who will pay
for improvements
Riverboat
gt Locate boat and obtain all infonnation about boat (cruise schedule liability carrier)
gt Establish design ofriverboat
gt Determine emergency medical plan for boat
gt Determine ifCoast Guard and other safety requirements have been met
Gaming Operator (Public Corporation Partnership Private Company)
gt Establish contact person with operator
J Determine attorney of record for gaming company J Any missing items from application advise contact person
gt Establish home office (Financial Headquarters)
J Determine a good date and location where all key people can be contacted for a personal interview
J Where can financial record be located
Missouri Gaming Commission 1996Annual Report - Page 20
~
Outline of a Background Investigation
J Breakdown ofmanagement (corporate Board ofDirectors major stockholders)
J Establish flow chart of key people and companies owned by gaming operator
~ Investigation ofKey People will include but not be limited to the following
J Check previous employment work records J Check state local and federal intelligence files J Check for other gaming licenses ifapplicable (check with appropriate
regulators)J Check state federal and local courts for any civil litigation J Check for any arrest record J Check personal and business credit J Check state and local tax status IRS will handle federal taxes
gt Other locations ofgaming operations (currently operating and pending locations)
J Contact gaming regulators for respective locations J Travel to sites to view operations
Establish a file for all key people investigated with summaries establish a file for financial records with summary offinancial viability ofcompany and ability to complete obligations to the city and State ofMissouri Establish a file for other locations of licensure along with summary
Associated Investigations
gt All allegations of Any nature must be investigated and a file established with a written summary
~ Associated investigations must be done in a complete and thorough manner and all reports written accurately
gt Upon completion ofall investigations complete reports and summaries a separate press releasable summary must be written This summary must be approved by Gaming Commission legal staff
Missouri Gaming Commission 1996 Annual Report - Page 21
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Missouri Gaming Commission Compliance Audit Objectives for Licensees
ObjectiveAudit Area ~~~~~~~~~
To ensure accuracy of ticket and turnstile counts reported to MGC including compsIVlPs stayovers and promotions
Table Games
Ticketffurnstile
To ensure accuracy of AGR for table games reported to MGC
Electronic Games To ensure accuracy of AGR for electronic games reported to MGC
Cage Accowltability To ensure accuracy ofcage accountability forms and compliance with internal controls and tax reporting regulations
Observations Cage Main Bank Pit Area Slot Area Turnstile Ticketing
PurchaselRedemptions
$500 Loss Limit
Stayover Procedures
To determine that cashiers are complying with internal controls for chips tokens gaming scrip and cash
To determine compliance with MO statutes and internal controls
To determine compliance with MGC regulations and internal controls
To ensure that manual jackpot payouts are properly handled and the required tax fomIS are completed Manual Jackpot Payouts
To ensure that hopper fills are properly handled and comply with internal controls Hopper Fills
To ensure that table fills are properly handled and comply with internal cootrols Table Fills
To ensure that table credits are properly handled and comply with internal controls Table Credits
To ensure that tracking procedures comply with internal controls and the currency transactions are properly completed Patron TrackingCurrency Transaction Reporting
Imprest Bank Balancing To ensure that proper balancing and accountability is performed during a shift change
Coin Vault To ensure proper maintenance of coin chip and token inventory
Satellite CageSSlot Booths To ensure compliance with internal controls and consistency with main cage procedures
TipsGratuities To ensure compliance with MGC regulations and internal controls
Cage AccessSecurity To ensure compliance with internal controls
Turnstile To ensure accuracy of turnstile count for admissions tax calculation
Ticketing To ensure comp Hance with internal controls and proper handling of stubs voids and issuance
MiscellaneousOther
Surveillance Tapes To review activity for hard soft and tip counts and drops to verify compliance with internal controls
Workpaper Preparation and To establish standardized procedures for MGC audit workpapers and audit reports Audit Reports
-
Missouri Gaming Commission 1996 AnnualReport - Page 22
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Audit Area
Monthly Financial Statement Review
Engagement Letters
Objective --shy
To perform a preliminary review ofmonthly financial statement information for proper completion of fmandal statement templates verification ofadjusted gross receipts to MGC reports and to detect any unusual items which justifY further review when conducting on-site audit
To give advance notification to each boat of the date and scope ofaudit being performed
Financial Statement Verification To determine consistency ofmonthly financial statement information submitted to MGC with boats general ledger system
Balance Sheet Accounts
CashCash Reserve Balance
Cash Receipts
Cash Disbursements
shy -- shy
To determine the existence consistency and fair presentation of the cash balance on the monthly fmancial statements
To determine the consistency and filir presentation of the cash balance on the monthly financial statements and the source of large cash receipts other than gaming revenue
___I
To determine the consistency and fair presentation of the cash balance on the monthly fmancial statements and to trace the outflow of large cash disbursements
i
I
--
AccountslN Notes Receivable
Accrued Admission and Gaming Tax Liability
Chip and Token Liability
Progressive Jackpot Liability
To determine the consistency and fair presentation of the accounts receivable andor notes receivable balance in the monthly fmancial statements
To determine the consistency and fair presentation of the accrued admissiongaming tax liability balance in the monthly financial statements
To determine the consistency and fair presentation of the chip and token liability balance in the monthly financial statements
To determine the consistency and fair presentation of the progressive jackpot liability balance in the monthly fmancial statements
---shy
Tips and Gratuities (Accrued Liability)
Customer Deposit Liability
Accounts Payable
Income Statement Accounts
Revenne - Table Games
To determine the consistency and fair presentation of the accrued tips and gratuities liability in the monthly fmancial statements
-lt ---- shy
To determine the consistency and fair presentation of the customer deposit liabilities in the monthly fiscal statements To determine the consistency and fair presentation ofaccounts payable balance in the monthly fmancial statements
--shy
To determine the consistency and fair presentation of table games revenue as reported to MGC daily and in the monthly fmandal statements
Revenue - Electronic Games To determine the consistency and fair presentation of electronic games revenue as reported to MGC daily and in the monthly financial statements
Missouri Gaming Commission 1996 Annual Report - Page 23
------------
---------
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Revenue - Admissions To detennine the consistency and fair presentation ofadmissions revenue as reported to MGC daily and in the monthly fmancial statements
Promotional Expense To determine that comps are properly recorded as expenses and not deducted from revenue in accordance with GAAP
Pre-Opening Costs To determine whether certain pre-opening and licensing costs are properly expensed or amortized over future periods in accordance with GAAP
Workpaper Preparation and Audit Reports To establish standardized procedures for MGC audit workpapers and audit reports
AissOllri Gamillg Commission 1996 Anllual Report - Page 24
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AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
c
Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
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Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
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$lot Machines 349
Missouri Gaming Commission Contributions to Education
Fiscal Year 1995
Gaming Proceeds for Education $ 5661628204
Bingo Tax Proceeds for Education $ 625370396
FY95 Tax Revenue from Gaming $6286998600
Fiscal Year 1996
Gaming Proceeds for Education $9973032067
Bingo Tax Proceeds for Education $ 468417852
FY 96 Tax Revenue from Gaming $10441449919
Total Tax Revenue from Gaming 516728448519
Does the GamblingMoneYiReallyGoo Fund Education
This may be the question inostfrequently asked ofpublic officials The simple answer is yes it does Pursuant to aconstitution~lamendntent passed by theGeneraIAssemblyasSJk 20 in 1992 andapproved bythe voters in a subsequent general electionmiddotall state tax money derived from the proceeds ofgamblirigisspent on education
The text ofthisconstitutional provision contained inArtiete 1lISection 39(d) reads as follows
All state revenues derived from the conduct ofaUgaming activities as are now or hereafter authorized by thiscomtitution orbyJaw unless otherwise provided bylaw on the ~ffectivedateofthissectionshallbemiddot appropriated beginoingJuly 1193solely for the pl1blic instittitions of elementary secondary and higheredueatioll and shaH~ot be included within the defmitionoftotal staterevenues in sectioid 7ofarticle X of this constitution
The tax revenues derivedfimnthe proceeds ofgambling foifiscalyeart998 are estimated to be $155 millionmiddot In ~d~itionto thegamblingm~neymiddot traditional stategeneralrevelluefundingfor publicschoo~ bas Uicreased every year since riverboatgillllblingwasenacted Thetotalstatebudget for educationwhichrepresents approximately 50of the average local school budget is $2965 billion Theg~~lIDgnlOney was designedtoslipplel1lent not replace the primatySufCeS ofpqb lie school fuDding[befunds derived from gambling have be~nusedfortheOiltstandingSchools TtilStFundthemiddotmiddot SchoolDistrict Bond Fund fotmainteniuiceandcapital exp~nclilures for public colleges and universities and to supplcentmenttheschool foundlltionmiddot formula
Missouri Gaming Commission 1996 Annual Report - Page 8
for an entertainment experience Gaming is an entertainment industry In the entertainment industry the consumers demand a product that they can enjoy during their leisure time on their own terms
In Missouri there are consumers that indicate they dislike the product which they are being offered Many of these conswners will go out of their way even travel to another state to fmd a product that is more user friendly A cursory survey of the license plates in the parking lot I)fthe Casino Queen in East 8t Louis Illinois adequately demonstrates this point
Many Missouri gaming customers complain that the loss limit is inconvenient intrusive and that it detracts from the entertainment experience they seek at Missouri riverboats To have to account for ones spending during what is supposed to be a leisure activity strikes many as a personal encroachment The fact that this requirement is imposed and enforced by the government further aggravates this perception
Many Missouri consumers react to this restriction by taking their leisure time and tax dollars across the border to JIlinois Iowa or Kansas where there are no limits Furthermore it is apparent that the loss limit severely restricts Missouri riverboat operators from drawing tourist customers from other states Consumers choice as to how to spend their discretionary leisure dollars is evident in the competitive gaming arena
The Missouri gaming law was adopted by the people for its potential to generate economic development its ability to raise needed revenue for education and because it is a leisure activity that many want to pursue The loss limit detracts from aU of these goals While Missouri is currently the beneficiary ofa significant amount of capital investment and new job creation the continuing negative impact of the loss limit renders our economic future in this area uncertain Because of the loss limit Missouri riverboat operators are less competitive the state is losing money to its neighboring states there is a reduction in the number of available jobs and the number of riverboats that can successfully operate in Missouri is restricted
Tax revenues from gaming have benefited education While tax revenues from gaming are still growing after only two years Missouri has seen
~ -
How does the Loss Linlit Work
Pursuant to sect 313805 RSMo the commission is required to regulate the wagering structure to include a maximum loss of five hundred dollars per individual player per gambling excursion In order to enforce this provision the commission requires the following procedure
I In order to board an exctrrsion gambling boat a customer most stand in line to obtain a ptrrchase authorization coupon (scrip) This scrip must be signed by the customer in the presence of a licensed riverboat employee
2 After the customer receives the scrip heshe must get in another line to board the riverboat The scrip also serves as the customers boarding pass
3 The scrip which is time and date stamped must be printed with boxes of denominations ofwhich the total ofall boxes shall not exceed $500 These boxes shall be canceled by pennanent black marker at the time the patron presents the scrip in the riverboat casino lfthe scrip is not signed at the time of presentment or the date and time are not valid the scrip shall be confiscated from the customer If the scrip is valid and there are sufficient available boxes the cashier shall cancel the appropriate number of boxes with a pennanent black marker and complete the transaction
4 In a situation where a customer wishes to buy chips at a table the procedtrre is the same except that the dealer stops the game to execute the transaction On many occasions the use of the scrip to convert cash to chips will slow up the game This is another example of customer dissatisfaction arismg out of the process
Transcript Missouri gaming commission meeting November 25 1996 pages 8 II and 1~17 (Bruce Turner Salomon Brothers) pages 44-46 (Joe Coccimiglio Prodential Securities) pages 57-58 (Tom Ryan Bankers Trust) pages 65-68 (Larry Klatzkin Donaldson Lufkin ampJenrette) pages 84-90 (Richard Byrne Merrill Lynch)
Missouri Garning Commission 1996 Annual Report - Page 4
Win Per Admission CoJql8ring Mssouri and IIhlls
those revenues fall short ofpredictions Analysts from Wall Street tell the commission that we are exporting our tax dollars to other states In a recent commission meeting regarding market size a well respected gaming analyst opined that while Missouri supplies 73 ofthe gaming market in the S1 Louis area it captures only 50 ofthe revenue Z
Finally the gaming experience ofconsumers who do visit Missouri gaming operators is less desirable than the experience offered by competitive states Missouri is offering a more cumbersome and less enjoyable product The commission believes that the gaming policy for Missouri should retain the Missouri dollars in Missouri and attract dollars from other states Our current policy has the exact opposite result
The Costs 0Competitive Ineriority
Limiting the ability ofMissouri operators to offer a competitive entertainment product has direct economic costs which are easily illustrated Missouri gaming riverboats are larger more luxurious and offer more non-gaming amenities than competitors in neighboring states Yet they fail to compete in economic terms even though the bulk ofthe popUlation seeking the entertainment product lives in Missouri
For example the Casino Queen in East St Louis Illinois and the Alton Belle in Alton Illinois combined have less capital investment than St Charles Riverfront Station which has consistently expanded and reinvested since it opened in May 1994 In addition these Illinois gaming facilities consist primarily of parking facilities and the gaming casino They offer no non-gaming amenities other than limited restaurant facilities
In spite of these negative competitive factors the two Illinois facilities regularly outperform SCRS in spending per customer Similarly Illinois riverboats in the St Louis area fare significantly better in gaming revenue per square foot gaming revenue per position and admissions per square foot One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
pages 104-106 (John Maxwell Standard amp Poors) and pages 115-118 (Steve Schneider Stife Nicoaus) See also Minutes ofMissouri gaming commission meeting May 24 1995
Missouri Gaming Commission minutes November 25 1996page 27 quoting Jason Ader Bear Stems gaming analyst Examples ofsome of the non-gaming amenities included in Missouri projects include themed restaurants movie theaters botels meeting space retail shopping child
care centers micro breweries an 18th century railroad car restored to its original luxury fountain displays and theaters for live entertainment
Missouri Gaming Commission 1996Annual Report - Page 5
2
The Problem is Clear - How does Missouri Address the Problem
Missouri statutes require the commission to report annually to the Governor and the General Assembly on the competitive state of the gaming industry in Missouri For two years the commission has advised the General Assembly that we believe that there could be a problem with the structure of the gaming industry but that the data is incomplete However we now fmd the data to be clear and compelling A problem exists in the Missouri gaming industry -- the gaming product is not competitive with our neighboring states This will create negative economic results and lower tax revenues
Due to navigational safety constraints most Missouri riverboats do not cruise It has been suggested by gaming analyst and by legislation filed in prior years that the elimination of the boarding time restrictions will help Missouri gaming operators economically and be more consumer friendly The commission believes that the current boarding time restrictions are detrimental to the consumer and make little sense since the riverboats are not leaving the dock They are an artificial barrier to entry and participation Yet the boarding times are essential to enforcing the loss limit A change in the statutes which
3(()
21)Q
i a
OIl
eliminates the boarding times but maintains the loss limit would make the enforcement of the loss limit impossible
Findings
Current Missouri statutes are not competitive with our adjoining states Consequently Missouri is at a competitive disadvantage Repealing the loss limit would make the Missouri operators more competitive Without this change the Missouri gaming industry will continue to be at a competitive disadvantage and over time will decline rather than prosper
Conclusioll
Section 313837 RSMo requires the commission to report annually to the general assembly on the effects ofthe loss limit on the competitiveness of the gaming industry in Missouri The findings above are intended to satisfy this statutory mandate The enactment of any changes in policy as a result of these findings are obviously the purview of the General Assembly and the Governor
Missouri Gaming Commission 1996Annual Report - Page 6
Effect of Tax Rate on Competitiveness
The Missouri tax rate currently mirrors that of its principle competitor the State of Illinois The MissourilIlIinois tax rate consists of a 20 base tax on adjusted gross receipts (AGR) In Missouri 10 of that tax (or 2 of AGR) is a local tax imposed by state statute The funds collected from this local tax are allocated to the home dock city or county fur services necessary for the safety of the public visiting the excursion gambling boat The remaining tax on AGR (18 of gross receipts) is placed in the Gaming Proceeds for Education Fund and may be spent only for public elementary secondary and higher education
Iowa has a graduated tax tbat caps out at 20 for adjusted gross receipts over $3 million Because the graduated rate reaches its cap at the relatively low ceiling 0pound$3 million Iowas effective tax rate is not significantly
The state of Kansas has recently allowed casinos operated by native American Indians These casinos are not taxed
For your future reference a table is contained in Appendix B setting forth the tax rate in each gaming jurisdiction and the regulatory restrictions that are imposed The chart below is a generalization of the tax rates in the various gaming jurisdictions Because of the subtleties of each states tax law it is difficult to precisely chart the rates For a defmitive explanation of the tax rates refer to the aforementioned chart in Appendix B
The Commission does not feel that the 20010 tax rate currently places our licensees at a competitive disadvantage The commission will continue to monitor the performance of all licensees and report developments as they occur
different from that of Missouri and Illinois
Licensees are also responsible for a $2 admission fee for each person who participates in a gaming excursion One dollar of this fee is remitted to the home dock city or county The remaining dollar is used to fund the regulatory activities of the Commission No general revenue is used for any activity of the Commission In addition to the $2 admission fee the gaming boat is billed monthly for the full cost of the enforcement agents assigned to the boat Either through fees or direct billing the gaming operators pay for the full cost of their own regulation
The State of Mississippi assesses a tax of 12 on AGR Unlike Illinois who is limited to licensing 10 gaming operations Mississippi has not limited the number of casinos licensed but has licensed all applicants that have been found suitable The Missouri law does not specifically limit the number of licenses that may be issued but places this responsibility in the hands of the Commission through a best interests of Missouri standard
Comparison of Gaming Tax Rates TaxonAGR
25
20 m ma )(
15 IImTaxRaeJ ~ 10
5
0 NV NJ LA
----------------------------------
MS IL IN IA MO CO so State
Missouri Gamilg Commission 1996Annual Report - Page 7
Missouri Gaming Commission Contributions to Education
Fiscal Year 1995
Gaming Proceeds for Education $ 5661628204
Bingo Tax Proceeds for Education $ 625370396
FY95 Tax Revenue from Gaming $6286998600
Fiscal Year 1996
Gaming Proceeds for Education $9973032067
Bingo Tax Proceeds for Education $ 468417852
FY 96 Tax Revenue from Gaming $10441449919
Total Tax Revenue from Gaming 516728448519
Does the GamblingMoneYiReallyGoo Fund Education
This may be the question inostfrequently asked ofpublic officials The simple answer is yes it does Pursuant to aconstitution~lamendntent passed by theGeneraIAssemblyasSJk 20 in 1992 andapproved bythe voters in a subsequent general electionmiddotall state tax money derived from the proceeds ofgamblirigisspent on education
The text ofthisconstitutional provision contained inArtiete 1lISection 39(d) reads as follows
All state revenues derived from the conduct ofaUgaming activities as are now or hereafter authorized by thiscomtitution orbyJaw unless otherwise provided bylaw on the ~ffectivedateofthissectionshallbemiddot appropriated beginoingJuly 1193solely for the pl1blic instittitions of elementary secondary and higheredueatioll and shaH~ot be included within the defmitionoftotal staterevenues in sectioid 7ofarticle X of this constitution
The tax revenues derivedfimnthe proceeds ofgambling foifiscalyeart998 are estimated to be $155 millionmiddot In ~d~itionto thegamblingm~neymiddot traditional stategeneralrevelluefundingfor publicschoo~ bas Uicreased every year since riverboatgillllblingwasenacted Thetotalstatebudget for educationwhichrepresents approximately 50of the average local school budget is $2965 billion Theg~~lIDgnlOney was designedtoslipplel1lent not replace the primatySufCeS ofpqb lie school fuDding[befunds derived from gambling have be~nusedfortheOiltstandingSchools TtilStFundthemiddotmiddot SchoolDistrict Bond Fund fotmainteniuiceandcapital exp~nclilures for public colleges and universities and to supplcentmenttheschool foundlltionmiddot formula
Missouri Gaming Commission 1996 Annual Report - Page 8
middot Where Does All the middot Gaming Tox Money Go
Orgallizationai Structure OFFICE OF THE EXECUTIVE DIRECTOR
Thomas J Irwin was named Executive Director by the Commission on October 21 1993 Mr Irwin came to the Commission after serving 3 years as Executive Assistant to St Louis County Executive Buzz Westfall Mr Irwin is a graduate ofHarvard University where he earned his masters degree from the Kennedy School ofGovernment He has served as the Chief Budget Officer for the Boston Police Department and was the Executive Assistant for Intergovernmental Affairs for St Louis mayor Vince Schoemehl from 1982 to
1988 Mr Irwin is a veteran of the United States Marine Corps having served
in Vietnam in 1968
i i Mr Irwin is responsible for the day-to-day operations of the
Commission He supervises all staff activities and reports to the Commission Among the staff positions reporting to the Director is Public Information
i K Officer Harold Bailey Mr Bailey is responsible for organizing and
distributing all public documents and reports
I In addition there are six primary functions of the Commission that
it have been divided into sections that report directly to Mr Irwin including
Administration Audit Bingo Corporate Securities Enforcement amp
t ~
Investigations and Legal amp Legislative Affairs
I ADMINISTRA110N
The administration section headed by Deputy Director Deborah A Ferguson provides a range of administrative financial and technical services to
help the Commission accomplish its goals The administrative services can be divided into the following functions accounts payable accounts receivable purchasing data processing budget facility leasing and human resources Accomplishments of the administration section would not have come to pass without the assistance ofChiefAccountant Denny Hodges Persomlel Officer Vicki Glenn Records Administrator Michael Shelhnan and Data Processing Manager John Bluma The administration staff benefited from the addition ofTen a Smith Diane Riddle and Mike Brizendine
The administration section continues to be a focal point of activity with the continued growth of the gaming industry l1te highlight of this past year was the relocation of the Jefferson City office Plaooing and design for the Jefferson City office began in 1995 and culminated with the move in September 1996 Highlights of the new building include a hearing room to conduct Commission meetings adequate file space to house the Commission
records that will be relocated from the St Louis office and the merging of the Bingo and Gaming staff into one facility to enhance coordination ofdaily activities
More specifically the duties of this section are as follows
~ Billing licensees for the processing and aoouallicenses issued to Level One and level Two Occupational employees that work for each riverboat To date there are approximately 9000 licensed employees
~ Billing licensed operators for the full cost of the enforcement agents assigned to each boat
~ Maintaining all Commission fmancial and personnel records which includes the monthly reconciliation of the Gaming Commission fund balance and processing aU payments made by the Commission
gt Preparation and implementation of the Commissions annual budget to ensure compliance with legislative intent
~ Handling all personnel matters and employee training and establishing and implementing written office policies for Commission staff
gt Preparation of fiscal notes to provide estimates to proposed legislation
Data Processiltg
The Data Processing section headed by John Blunm had a busy year in 1996 which included major systems developments as well as the daunting task of moving the Jefferson City office to a new location Some ofthe accomplishments of this important section include
~ Opening new commission offices for its agents at licensed premises
~ Moving the Jefferson City offices of the Riverboat Gaming and the Bingo workgroups to the new location This involved moving all computer workstations servers communications processors and printers to the new
Missouri Gaming Commission 1996 Annual Report - Page 10
building The two separate networks were consolidated into one large network that provides email between all members ofthe two sections for the fIrSt time and allows sharing of peripheral equipment such as laser printers
gt Final testing and implementation ofa billing system for enforcement billing to reimburse the state for expenses related to regulating the casino gaming industry
~ Automation ofannual MULES checks required of the 9000 plus gaming occupational license holders eliminating hundreds ofhours ofdata entry time
gt Upgrade of the physical inventory system to provide more complete reports and to track add-on costs to major inventory items
gt Design and development ofan occupational license history tracking system to provide a complete picture of license payments changes in license status duplicate badges issued and changes in employment status
gt Enhancing existing systems to meet new statutes and rules and regulations
AUDET
The audit section is responsible for the critical function ofensuring that the operators pay their taxes promptly and accurately This section headed by Jolm Davis former Internal Revenue Service Manager developed the Commissions tax remittal system that allows the Commission to capture tax remittance data on a daily basis The operators returns are audited by compliance audit siaffheaded up by senior accountant Kara Hardaway
The audit section also develops audit programs reviews and approves each boats system ofintemal controls conducts on-site performance audits reviews the quarterly CPA audits ofAdjusted Gross Receipts Tax and Admission Tax and reviews all internal audit reports prepared by the casinos internal audit staff
During 1996 the audit section revised Minimum Internal Control Standards that all operators must meet These standards were developed by the
audit staff after a lengthy review process that involved input from the IRS enforcement officers and industry experts
The audit section also implemented a system for tracking and depositing all non-tax revenue received from applicants such as application fees from applicants and reimbursements for Commission services
A summary ofsome ofthe audit sections programs and objectives is contained on page 22
BINGO
The Bingo Division is comprised ofthree separate sections which include the Administration Licensing Audit and Enforcement The Bingo Division Supervisor is Ron Pleus The Audit Section Supervisor is Randall Cahill and the Enforcement Section Supervisor is Sergeant Dwight Franklin The bingo statutes have been revised significantly in recent years requiring many administrative changes to occur within the Division Among the more daunting projects were the establishment ofa new licensing category for hall providers and the implementation ofa new supplier-based tax Specific duties within the three sections of the Bingo Division and the recent statntory changes are briefly outlined below
AdministrativeILicensiog Section - This section is responsible for the processing ofall correspondence and the licensing and maintenance ofover 1500 operator licensees which include all regular and special event bingo operators licenses and 200 hall providers annually This section deposits and records an tax and license receipts received on a daily basis This unit maintains a data base of over 31000 records ofindividuals that are involved in the management conduct andor operation ofbingo games and 3000 records of individuals involved as owners and officers of licensed Hall Providers Currently this staff consist ofthree employees Jane Bax Pam Murphy and Tina Freese In conjunction with the data processing staff the administrative section has developed an automated renewal application system which became fully operational January 1996 This system simplifies the renewal process for the licensee and eliminates wasted steps and duplicate information The system has proven to be a tremendous time saver for the not-for-profit volunteer organizations who are required to file renewals and also helps to reduce the staffmg cost and other administrative cost for the Division
Missouri Gaming Commissioll 1996 Allnual Report ~ Page 11
Audit Section - This section is responsible for the timely audit of all Bingo Product Manufacturers and Suppliers and assisting the Enforcement Section with oil-site inspections of bingo operators The audit staff has developed a comprehensive Manufacturer and Supplier audit procedure manual and has developed procedures for the inspection ofbingo operators The procedures for the inspection of bingo operators are used by both the Enforcement and Audit Staffs The audit section has audited all of the licensed Manufacturers and Suppliers during fiscal year 1996 These audits resulted in over $32000000 in unreported taxes and penalties The auditors also assisted enforcement with inspections and investigations of unlicensed suppliers and operators The section conducts on-site inspections of formerly licensed suppliers to determine ifthe products in inventory were being disposed of in accordance with the statutes The audit staff also assists the administrative staff in auditing the operators quarterly repom
Enforeement Section - This section is headed by Sgt Dwight Franklin a 17 year veteran ofthe Missouri Highway Patrol Sgt Franklin has six (6) officers assigned to the enforcement section Their duties include background investigations of all Manufacturers and Suppliers to include all the key personnel in those companies These investigations include criminal checks fmancial checks past employment history and all litigation involving the applicant In addition the enforcement section is responsible for investigating complaints on the licensed bingo organizations The complaints range from minor rule violations to thefts of large sums of money Complaints are received on a daily basis and are investigated on the basis of severity location and available manpower An additional duty of the Enforcement Section is to complete background investigations on all new potential employees of the Gaming Commission
CORPORATE SECURITIES AND FINANCE
The Commission has established a Section of Corporate Securities and Finance to address the challenge ofregulating the complex fmancial corporate structuring and contractual transactions involving publicly traded and privately held gaming companies This section is comprised of staff trained in legal accounting and business matters to perform examinations of these transactions
The suitability issues examined by the Corporate Securities and Finance Section include complex fmancial and legal suitability issues such as fmancial soundness corporate control legal compliance and procedural licensing issues
The sections examinations are coordinated closely with the Enforcement Division for background investigations and disciplinary matters
Typical transactions that are examined by the section include mergers and acquisitions public debt and equity issuances and private financings such as bank loans and credit facilities The goal of this new section is to provide the Commission with more thorough and sophisticated investigations and analysis of the suitability ofgaming companies and with a uniform system for providing this analysis on corporate securities and fmance issues Through this section the Commission hopes to identifY suitability problems ofapplicants and licensees earlier and more efficiently and to identifY plan for and possibly even avoid potential business closures of licensees due to fmandal matters
The Corporate Securities and Finance Section is headed by the Commissions General Counsel Greg Orner who reports directly to the Executive Director on corporate securities and finance matters The section also includes a Chief Financial Analyst position to be filled soon which will oversee the work ofthe fmancial staff examining the corporate secwities and fmance transactions
The Conunissions Financial Manager Pam Brown haS handled the fmandal analysis of the reported transactions up to now and will continue to perfonn many of the more complex transaction examinations and oversee the work of an accountant Pam Wheelis and a fmancial analyst (planned to be added next year) who are also assigned to the section
ENFORCEMENT
Enforcement for the Missouri Gaming Commission is provided by officers of the Missouri State Highway Patrol and agents of the Internal Revenue Service by way of Memorandums ofUnderstanding which set forth the responsibilities ofeach entity
The enforcement section is headed by Mel Fisher former Superintendent of the Highway Patrol The Gaming Division ofthe Highway Patrol is headed by Captain Dwight Hartung There are seventy-seven officers assigned to the Gaming Division and an additional six officers assigned to the Bingo Enforcement Unit
Some of the advantages ofusing Highway Patrol Officers as gaming agents include
JtfisSOUli Gaming Commission 1996 Annual Report - Page 12
the staff assigned are trained specialists in law enforcement and investigations thus saving the Commission the time effort and expense of recruitment and training
because the agents are licensed law enforcement officers they command immediate respect when interacting with licensees and customers aboard a riverboat as well as when they are in a foreign jurisdiction conducting an investigation
~ the Commission feels that it is important to rotate enforcement staff aboard the various boats this process is much easier with seasoned law enforcement officers who are used to being rotated between assignments as well as in and out of the gaming division
gt provides the ability to access sensitive law enforcement information from other jurisdictions
gt their experience in conducting investigations and handling emergency situations has proven invaluable
The Commissions background investigation units consist of three Highway Patrol Officers and one IRS agent The background investigations conducted by the Missouri Gaming Commission are thorough and take approximately four months to complete if no unusual complications or delays emerge The Commission not only investigates the finances and activities of the company and all its key people but traces the source ofall their funds to ensure that no criminal elements are funding the operation from behind the scene An outline that provides a sketch of a typical background investigation is contained on page 20
LEGAL amp LEGISLATIVE AFFAIRS
The legal amp legislative affairs section is responsible for all legal matters presented to the commission prior to litigation Any litigation involving the commission is handled by the Attorney Generals office In addition this section which is headed by Deputy Director Kevin Mullally develops and drafts legislation endorsed by the commission as well as all rules and regulations Moreover the legal section manages an administrative appeals docket where Mullally serves as Hearing Officer
Greg Orner serves as the commissions general coWlSel and works closely with the enforcement staff reviewing incident reports investigative issues and possible disciplinary actions In addition Mr Omer heads the Corporate Securities section
Some of tbe otber responsibilities of the legal section include
~ Drafting all resolutions for all commission actions and
gt preparing disciplinary complaints and denial orders for proposed action against licensees and
gt conducting quasi-legislative hearings on issues such as continuous docking and boat design and
gt providing legal research services and
gt organizing and maintaining records ofall official commission actions and commission policies and
gt handling inquiries from legislators constituents and other state regulatory agencies
The commissions legal staff is supported by paralegal Heather Grefrath and legal secretary Susan Sundermeyer This support staff is critical to daily operations ofthe legal section and is particularly valuable in the sections role in preparing and managing the rules and regulations all documents necessary for commission meetings and all documents declaring commission policy
In 1997 the legal section will be augmented with the addition ofstaff attorney Robert Little
PENDING LITIGATION
The Missouri Gaming commission denied one occupational license in 1994 thirteen occupational licenses in 1995 and thirty-five occupational licenses in 1996 Each aplicant is presumed WlSuitable and has the burden of proof to prove his or her suitability to the Conunssion An individual may request a hearing to attempt to prove suitability to the Commission by serving
Missouri Gaming Commission 1996Annual Reporl- Page 13
such a request on the commissions Executive Director The following is a list of pending litigation
Petitioner Venue
Bingo Systems amp Supply AHC Cape Girardeau Elks Lodge 639 AHC Cape Girardeau VFW Post 3838 AHC Edwin Pete Rhodes AHC Ideal Bingo Supplies Inc AHC Mary Cracchiolo AHC Maureen L Scott AHC Meramec-Amold Eagles Auxiliary AHC Myron B Carter Sr AHC Pan-Education Institute AHC Raymond J Drury AHC Raytown Women of Today AHC Sandra Termini AHC Stanley L Turner AHC Missouri Gaming Co ~Disc Action MGC Harrahs -Disciplinary Action MGC Boyd Kansas City Inc -Disc Action MGC Jeffery Koester -Denied License MGC Gary Franklin -Denied License MGC Mark Zwolle -Disciplinary Action MGC Anthony Civella -Exclusion MGC Peter Simone -Exclusion MGC Yolanda Nettles MGC Tracy Anderson MGC Carrie Gentry MGC Jimmie B Carsey MGC Cape Girardeau Elks amp VFW Circuit Court ofCape Girardeau County MGC v Veterans Commission
st Louis Public Schools Missouri Supreme Court W Todd Akin v MGC Missouri Supreme Court William D Cmmnisano Jr Missouri Court ofAppeals-Western District Pen-Yan Investment Inc Missouri Court ofAppeals-Western District
SUMMARY OF PENDING LITIGATION
There are fourteen bingo cases pending in the Administrative Hearing Commission
There are three disciplinary cases at the Commission level against gaming licensees pending the outcome ofPen-Yon Investment Inc v Boyd Kansas City Inc and MGC
Pen-Yon Investment Inc v Boyd Kansas City Inc MGC is pending in the Missouri Court ofAppeals Western District regarding disciplinary action taken against Boyd for associating in business affairs with a person who has a felony police record The Commission imposed a fine against Boyd and prohibited Boyd from collecting or distributing any funds from the machines under its service agreement with Pen-Yan
MGC v Missouri Veterans Commission St Louis Public Schools is pending in the Missouri Supreme Court regarding funds received from fmes imposed by the Commission
In W Todd Akin et 01 v MGC the Circuit Court ofCole County ruled in favor of the commission on summary judgment The suit challenges the Commissions authority to grant or deny Harrahs Maryland Heights Corp and Players Maryland Heights LP a license for a continuously docked excursion gambling boat within a man-made basin filled by water from the Mississippi River The petitioners have appealed and the matter is now before the Missouri Supreme Court
Cape Girardeau Elks Lodge et aI v MGC is pending in the Circuit Court of Cape Girardeau County regarding the Commissions decision to suspend the Cape Girardeau Elks Lodge bingo license
In the Matler oWilliam D Cammisano Jr there is an appeal pending in the Missouri Court ofAppeals Western District regarding the Commissions decision to place Mr Cammisano on its List of Excluded Persons
MISSOURI GAMING COMMISSIONS EXCLUSION LIST
The Missouri Gaming Commissionplaced two individuals in 1994 two individuals in 1995 and two individuals in 1996 on the commissions Exclusion List Placement of these individuals on the Exclusion List has been based on prior convictions
As a result of placement on the Exclusion List each individual shall not be permitted eoby into any portion of a riverboat gaming operation within the state ofMissouri and shall be ejected ifdiscovered on such premises Furthermore Excluded Persons shall be prohibited from contact of any kind with Missouri riverboat gaming operations Persons placed on the Listmay file a written petition with the Commission to request a hearing to have their name
JlrJissOIlri Gaming Commission 1996 Annual Report - Page 14
removed from the Exclusion List Currentlyone individual has appealed to the Western District of Missouri and two otbers are pending hearings by the Missouri Gaming Commission
MISSOURI GAMING COMMISSIONS DISCIPLINARY ACTIONS AGAINSTOCCUPATIONAL LICENSEES
The Missouri Gaming Commission has taken disciplinary action against twenty-eight occupational licensees as of September 30 1996 Preliminary
Orders for Disciplinary Action set forth statements of fact that support the proposed disciplinary action and the regulatory and statutory sections involved Individuals may request a hearing by serving such a request on the Commissions Executive Director Currently four individuals have sought hearings before the Commission one ofwhich is stm pending
Occupational License Denials 1994-1996
40
l 30
lt0 c Q)
0 lt5 20 i-Q) 0 E ~ 10
o Year Licenses 1994 1995 1996 IiiI Licenses Denials 1 13 35
Voluntary Exclusions On December 30 1996 after six months of research and consultation the
commission established a unique program to combat problem gambling The List of Disassociated Persons is the result of many months ofconsultation with treatment professionals that help problem gamblers The program allows problem gamblers to exclude themselves from Missouri riverboat casinos under the threat ofarrest for trespassing
In exchange for agreeing not to patronize Missouri riverboat casinos the problem gambler is removed from all casino mailing lists and direct marketing promotions In addition the operators are required to deny persons on the List check cashing privileges and must take away their VIP or players club card
Treatment professionals have advised the commission that the only way for a problem gambler to get help is to admit that heshe has a problem and to accept personal responsibility for that problem by seeking treatment
The Disassociated Persons program is a valuable tool in addressing problem gambling because it requires the individual to admit to having a gambling problem to agree to seek treatment and stay away from gambling casinos Furthermore it includes severe consequences if the problem gambler succumbs to the temptation to gamble Moreover it offers some protection to the problem gambler from the marketing promotions that encourage people to visit the casino properties
The program operates in the following manner
~ The problem gambler must obtain an application for placement on the List ofDisassociated Persons from the commission
~ the application contains various information about the individual an admission that the person is a problem gambler and agrees to stay off Missouri riverboats and seek treatment an authorization to release this information to riverboat operators as well as a Waiver releasing the commission and the licensee from any liability associated with enforcing the rules of the program
~ the application must be personally presented to a commission agent at which time the information is verified and the rules of the program are explained
~ the application is a closed record and its contents may only be disclosed to necessary commission and riverboat personnel
~ the commission considers all applications in closed session
~ once a person is placed on the List heshe cannot petition for removal After consulting with treatment professionals the commission concluded that problem gambling requires lifetime treatment and therefore there is no procedure for removal from the List
Missouri is the frrst jurisdiction in the world to propose a program such as this We will continue to monitor and refme the program and look forward to reporting to you on its impact in next years annual report
ft-Iissouri Gaming CommissiOil 1996 Annual Report - Page 16
Brief Timeline of Riverboat Gaming in Missouri ~ May 13 1991 - General Assembly passes House Bill 149 which authorized
referendum to be submitted to the voters in the November 1992 election to determine whether the State Tourism Commission shall have the power to issue riverboat gambling licenses
gt November 31992 - Missouri voters pass referendum allowing riverboat gaming with a majority ofnearly 63
gt January 1993 - Governor Carnahan announces intentions to push legislation creating an independent Gaming Commission to oversee riverboat gambling
April 29 1993 -- SBs 10 amp 11 creating the Missouri Gaming Commission are signed into law by Governor Carnahan and five Commissioners are appointed Robert Wolfson Chairman Robert Clayton William Quinn Dr Jenice Stewart and Avis Tucker
gt April 30 1993 -- Troy Harris et al v The Missouri Gaming Commission amended petition is filed The petition challenges the constitutionality of Senate Bills 10 amp II
gt- May 17 1993 -- The Missouri Gaming Commission holds its first meeting
~ September 1 1993 -- Proposed Rules and EmergencY Rules are adopted
gt September 20 1993 - 19 riverboat gaming license applications are filed with the commission
gt September 20 1993 - Clarence E Mel Fisher hired as Deputy Director for Enforcement
gt September 24 1993 - Commission contracts with the Internal Revenue Service to perform fmancial investigations for the commission Four IRS agents are assigned to the commission
~ September 28 1993 - Commissions enters into and inter-agency agreement with the Missouri State Highway Patrol to provide enforcement services for the commission
~ October I 1993 - Debbie Ferguson joins the commission as Deputy Director for Administration
November 3 1993 - Commission hires Tom Irwin as Executive Director and Kevin Mullally as Deputy Director for Legal amp Legislative Affairs
November 30 1993 -- Commission announces that it will begin background investigations on the following companies President Riverboat Casino-Missouri St Charles Riverfront Station Inc S1 Joseph Riverboat Partners The Missouri Gaming Company GDC (Supplier) IGT (Supplier) Casino Tokens (Supplier) Paul-Son Dice amp Card Company (Supplier)
gt December 22 1993 - Governor Carnahan signs Executive Order 93-50 designating the enforcement section ofthe Missouri Gaming Commission as a criminal justice agency
1994
gt January 25 1994 -- Missouri Supreme Court in Troy Harris v Missouri Gaming Commission strikes down games of chance including slot machines The court ruled that the Commission did have the authority to issue licenses to riverboat where games ofskill are played Specifically mentioned as games ofskill are poker and blackjack The Court remanded six games to lower court for determination as to whether they are games of skill or chance baccarat craps roulette wheel klondike table faro layout and video games ofchance
~ February 1 1994 -- Rules and Regnlations become effective
February 7 1994 -- Legislature passes resolution to place constitutional amendment on the ballot which would allow the legislature to approve games of chance (slot machines) on riverboats and floating facilities on the Missouri and Mississippi Rivers
gt- April 5 1994 -- Voters defeat constitutional amendment allowing games of chance (slot machines) by an unofficial count of 1263 votes
~ April 29 1994 - Finding of Preliminary Suitability issued to President Riverboat Casino S1 Charles Riverfront Station St Joseph Riverboat Partners and The Missouri Gaming Company
Missouri Gaming Commission 1996 AnnualReport - Page 17
Brief Timeline of Riverboat Gaming in Missouri ~ May 20 1994 -- Governor signs into law SB 740 which defmes games of
chance and enacts more stringent ethics provisions The bill also allows the commission to license a barge in an artificial basin as an excursion gambling boat if it can be demonstrated that safely concerns prevent an operator from cruising from that location
~ May 27 1994 - Commission authorizes as games of skin the following Blackjack Caribbean Stud Poker Poker Double Down Stud Poker Pia Gow Poker Poker Texas Hold Em the video representations ofthese games and Craps
gt May 27 1994 -- Commission authorizes President Riverboat Casino-Missouri to operate the Admiral as a continuously docked excursion gambling boat because cruising would cause danger to the boats passengers
gt May 27 1994 -- Gaming Commission issues first two excursion gambling boat licenses to President Riverboat Casino in st Louis and St Charles Riverfront Station in st Charles
gt May 27 1994 -- Initiative petition tbat would allow voters to approve games ofchance is submitted to the Secretary of State for approval of the form ofthe petition
~ June 6 1994 -- Secretary ofState notifies referendum petitioners that the Attorney General has approved the form of their petition The Secretary of State prepared the following petition title that was approved by the Attorney General
Shall the General Assembly be authorized to permit only upon the Mississippi River and the Missouri River lotteries gift enterprises and games ofchance to be conducted on excursion gambling boats and floating facilities
gt June 9 1994 -- Commission prioritizes Aztar Missouri Corporation Boyd Kansas City Inc and Harrahs North Kansas City as companies to be investigated for licensure pursuant to 11 CSR 45-4060
gt June 22 1994 -- Gaming Commission issues licenses to St Joseph Riverboat Partners in St Joseph and The Missouri Gaming Company in Riverside
~ September 20 1994 -- Commission issues a fmding ofpreliminary suitability to Harrahs North Kansas City Corporation
gt September 20 1994 -- Commission authorizes Harrahs North Kansas City Corporation and st Charles Riverfront Stationl to operate excursion gamblillg boats as continuously docked vessels In both cases the commission found that operating a cruising vessel from the proposed site would cause danger to the boats passengers and the project will generate permanent job creation and land-based development
gt September 22 1994 -- Harrahs North Kansas City Corporation is issued an excursion gambling boat license
gt September 28 1994 - Public hearing regarding Capitol Queen and Casino Jncs application for an excursion gambling boat license results in the commission denying CQCs license and prohibiting them from reapplying for two years
gt October 7 1994 - Commission places William D Cammisano Jr and John Termini on its list of excluded persons
gt November 8 1994 -- Voters approve games ofchance
~ December 9 1994 - Games ofchance are allowed on riverboats
gt December 27 1994 - St Charles Riverfront Station is issued a license to operate the St Charles II as an excursion gambling boat This marks the fIrSt time the commission has licensed a second excursion gambling boat for a single development
The approval was for St Charles Riverfront Stations second boat The flTSt boat continued to cruise until April 16 1996
Missouri Gaming Commission 1996 Annual Report - Page 18
Brief Timeline of Riverboat Gaming in Missouri 1995
)gt- February 22 1995 -- Commission announces it will begin background investigation on Hilton Kansas City Corporation for an excursion gambling boat license
~ March 30 1995 - State Auditor releases final audit report of the Missouri Gaming Commission No major deficiencies are noted
~ April 20 1995 - Commission repays $3 million start-up loan to state general revenue fund
)gt- April 25 1995 - Commission approves continuous docking petitions for Boyd Kansas City Inc and Hilton Kansas City Corporation
~ April 25 1995 -- The commission issues a finding ofpreliminary suitability to Aztar Missouri Gaming Corporation
~ April 26 1995 -- The commission issues an excursion gambling boat license to Aztar Missouri Gaming Corporation in Caruthersville Missouri
)gt- May 24 1995 - The commission announces it will begin background investigations on the following companies Harrahs Maryland Heights Corporation Kansas City Station Inc Players Maryland Heights Inc
gt August 28 1995 - Pursuant to House Bill 574 the duties of the Missouri Horse Racing Commission are transferred to the Gaming Commission
~ September 12 1995 - The commission issues a fmding of preliminary suitability to Boyd Kansas City Inc
September 13 1995 - The commission grants the petition ofHarrahs Maryland Heights Corporation and Players Maryland Heights Inc to operate continuously docked excursion gambling boats at their joint venture in Maryland Heights
)gt- September 13 1995 - The commission issues an excursion gambling boat license to Boyd Kansas City Inc
)gtshy November 16 1995 shy The commission fines the following companies for associating with either socially or in business affairs persons with felony police records or persons with a notorious or unsavory reputation Boyd Kansas City Inc Harrahs North Kansas City Corporation The Missouri Gaming Company
1996
)gtshy February 15 1996 - The commission grants continuous docking rights to Aztar Missouri Gaming Corporation for a second boat in Caruthersville Harrahs North Kansas City for a second boat and Kansas City Station Corporation for two boats in Kansas City
~ April 16 1996 - The commission grants continuous docking rights to Argosy in Riverside Missouri S1 Joseph Riverboat Partners and 81 Charles Riverfront Station
~ May 15 1996 - The commission issues a license to Harrahs North Kansas City for the Lucky Star This is the second boat at the Harrahs North Kansas City mcility Included in the project is a 200-room hotel expanded parking and meeting space
~ June 19 1996 -- The commission places William Canunisano Jr on Exclusion List
~ June 27 1996 - The commission places Peter Simone and Anthony T Civella on Exclusion List
August 28 1996 - The commission takes disciplinary action against Boyd Kansas City Inc for periodic failure to take and report turnstile readings
~ October II 1996 - The commission issues a finding of prel iminary suitability to Hilton Kansas City Corporation and Flamingo Hilton Riverboat Casino LoP
October 18 1996 - TIle commission issues a Class B riverboat gambling license 10 HUlon KlIlIStIS City Corporation and a CltlSs A riverboat gambling license 10 Flamingo Hillon Riverboat CtlSino LP
Missouri Gaming Commission 1996Annual Report - Page 19
Outline of a Background Investigation
Review Application fin Completeneiis
~ Establish number ofkey people
~ Check disclosure forms for completeness
gt Check tax release forms
City Selection Process
~ Contact city to determine how the gaming operator was selected
gt Interview Mayor and City Council members
~ Ifa steering committee was used interview members of that committee
Determine ifany city officials own stock in the selected gaming company
~ Obtain minutes ofcouncil meetings that pertain to riverboat issues (a)selection (b) resolution and (c) ordinance
gt Contact city attorney who handled negotiations with gaming company and obtain correspondence between city and gaming company
~ Contact City Economic Development Director (if applicable)
Docksite
gt- Land selected for gaming operation
J Who was it purchased from (how long have they owned the property) J Price (copy ofcontract)J Copy of plat map and legal description J Determine ifany ofcity officials or selection committee members have
ownership interest in docksite
gt Corps ofEngineers Permit
J Status
J Any concerns by Corps J Wetlands involved
~ Contact DNR for any known concerns in area
gt Check with city for any known dwnpsites with possible hazardous material
gt Developmental agreement between city and gaming operator (obtain copy from city)
gt Detennine if development is feasible
J Is support facility land based or floating J Projected nwnber ofjobs economic aid to area J Traffic flow to area - what improvements are needed - who will pay
for improvements
Riverboat
gt Locate boat and obtain all infonnation about boat (cruise schedule liability carrier)
gt Establish design ofriverboat
gt Determine emergency medical plan for boat
gt Determine ifCoast Guard and other safety requirements have been met
Gaming Operator (Public Corporation Partnership Private Company)
gt Establish contact person with operator
J Determine attorney of record for gaming company J Any missing items from application advise contact person
gt Establish home office (Financial Headquarters)
J Determine a good date and location where all key people can be contacted for a personal interview
J Where can financial record be located
Missouri Gaming Commission 1996Annual Report - Page 20
~
Outline of a Background Investigation
J Breakdown ofmanagement (corporate Board ofDirectors major stockholders)
J Establish flow chart of key people and companies owned by gaming operator
~ Investigation ofKey People will include but not be limited to the following
J Check previous employment work records J Check state local and federal intelligence files J Check for other gaming licenses ifapplicable (check with appropriate
regulators)J Check state federal and local courts for any civil litigation J Check for any arrest record J Check personal and business credit J Check state and local tax status IRS will handle federal taxes
gt Other locations ofgaming operations (currently operating and pending locations)
J Contact gaming regulators for respective locations J Travel to sites to view operations
Establish a file for all key people investigated with summaries establish a file for financial records with summary offinancial viability ofcompany and ability to complete obligations to the city and State ofMissouri Establish a file for other locations of licensure along with summary
Associated Investigations
gt All allegations of Any nature must be investigated and a file established with a written summary
~ Associated investigations must be done in a complete and thorough manner and all reports written accurately
gt Upon completion ofall investigations complete reports and summaries a separate press releasable summary must be written This summary must be approved by Gaming Commission legal staff
Missouri Gaming Commission 1996 Annual Report - Page 21
------------
--------
-----
------
---
---------
----------
Missouri Gaming Commission Compliance Audit Objectives for Licensees
ObjectiveAudit Area ~~~~~~~~~
To ensure accuracy of ticket and turnstile counts reported to MGC including compsIVlPs stayovers and promotions
Table Games
Ticketffurnstile
To ensure accuracy of AGR for table games reported to MGC
Electronic Games To ensure accuracy of AGR for electronic games reported to MGC
Cage Accowltability To ensure accuracy ofcage accountability forms and compliance with internal controls and tax reporting regulations
Observations Cage Main Bank Pit Area Slot Area Turnstile Ticketing
PurchaselRedemptions
$500 Loss Limit
Stayover Procedures
To determine that cashiers are complying with internal controls for chips tokens gaming scrip and cash
To determine compliance with MO statutes and internal controls
To determine compliance with MGC regulations and internal controls
To ensure that manual jackpot payouts are properly handled and the required tax fomIS are completed Manual Jackpot Payouts
To ensure that hopper fills are properly handled and comply with internal controls Hopper Fills
To ensure that table fills are properly handled and comply with internal cootrols Table Fills
To ensure that table credits are properly handled and comply with internal controls Table Credits
To ensure that tracking procedures comply with internal controls and the currency transactions are properly completed Patron TrackingCurrency Transaction Reporting
Imprest Bank Balancing To ensure that proper balancing and accountability is performed during a shift change
Coin Vault To ensure proper maintenance of coin chip and token inventory
Satellite CageSSlot Booths To ensure compliance with internal controls and consistency with main cage procedures
TipsGratuities To ensure compliance with MGC regulations and internal controls
Cage AccessSecurity To ensure compliance with internal controls
Turnstile To ensure accuracy of turnstile count for admissions tax calculation
Ticketing To ensure comp Hance with internal controls and proper handling of stubs voids and issuance
MiscellaneousOther
Surveillance Tapes To review activity for hard soft and tip counts and drops to verify compliance with internal controls
Workpaper Preparation and To establish standardized procedures for MGC audit workpapers and audit reports Audit Reports
-
Missouri Gaming Commission 1996 AnnualReport - Page 22
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Audit Area
Monthly Financial Statement Review
Engagement Letters
Objective --shy
To perform a preliminary review ofmonthly financial statement information for proper completion of fmandal statement templates verification ofadjusted gross receipts to MGC reports and to detect any unusual items which justifY further review when conducting on-site audit
To give advance notification to each boat of the date and scope ofaudit being performed
Financial Statement Verification To determine consistency ofmonthly financial statement information submitted to MGC with boats general ledger system
Balance Sheet Accounts
CashCash Reserve Balance
Cash Receipts
Cash Disbursements
shy -- shy
To determine the existence consistency and fair presentation of the cash balance on the monthly fmancial statements
To determine the consistency and filir presentation of the cash balance on the monthly financial statements and the source of large cash receipts other than gaming revenue
___I
To determine the consistency and fair presentation of the cash balance on the monthly fmancial statements and to trace the outflow of large cash disbursements
i
I
--
AccountslN Notes Receivable
Accrued Admission and Gaming Tax Liability
Chip and Token Liability
Progressive Jackpot Liability
To determine the consistency and fair presentation of the accounts receivable andor notes receivable balance in the monthly fmancial statements
To determine the consistency and fair presentation of the accrued admissiongaming tax liability balance in the monthly financial statements
To determine the consistency and fair presentation of the chip and token liability balance in the monthly financial statements
To determine the consistency and fair presentation of the progressive jackpot liability balance in the monthly fmancial statements
---shy
Tips and Gratuities (Accrued Liability)
Customer Deposit Liability
Accounts Payable
Income Statement Accounts
Revenne - Table Games
To determine the consistency and fair presentation of the accrued tips and gratuities liability in the monthly fmancial statements
-lt ---- shy
To determine the consistency and fair presentation of the customer deposit liabilities in the monthly fiscal statements To determine the consistency and fair presentation ofaccounts payable balance in the monthly fmancial statements
--shy
To determine the consistency and fair presentation of table games revenue as reported to MGC daily and in the monthly fmandal statements
Revenue - Electronic Games To determine the consistency and fair presentation of electronic games revenue as reported to MGC daily and in the monthly financial statements
Missouri Gaming Commission 1996 Annual Report - Page 23
------------
---------
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Revenue - Admissions To detennine the consistency and fair presentation ofadmissions revenue as reported to MGC daily and in the monthly fmancial statements
Promotional Expense To determine that comps are properly recorded as expenses and not deducted from revenue in accordance with GAAP
Pre-Opening Costs To determine whether certain pre-opening and licensing costs are properly expensed or amortized over future periods in accordance with GAAP
Workpaper Preparation and Audit Reports To establish standardized procedures for MGC audit workpapers and audit reports
AissOllri Gamillg Commission 1996 Anllual Report - Page 24
--raquo
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AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
c
Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
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ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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I IAztar Missouri Corporation
r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
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Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
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$lot Machines 349
for an entertainment experience Gaming is an entertainment industry In the entertainment industry the consumers demand a product that they can enjoy during their leisure time on their own terms
In Missouri there are consumers that indicate they dislike the product which they are being offered Many of these conswners will go out of their way even travel to another state to fmd a product that is more user friendly A cursory survey of the license plates in the parking lot I)fthe Casino Queen in East 8t Louis Illinois adequately demonstrates this point
Many Missouri gaming customers complain that the loss limit is inconvenient intrusive and that it detracts from the entertainment experience they seek at Missouri riverboats To have to account for ones spending during what is supposed to be a leisure activity strikes many as a personal encroachment The fact that this requirement is imposed and enforced by the government further aggravates this perception
Many Missouri consumers react to this restriction by taking their leisure time and tax dollars across the border to JIlinois Iowa or Kansas where there are no limits Furthermore it is apparent that the loss limit severely restricts Missouri riverboat operators from drawing tourist customers from other states Consumers choice as to how to spend their discretionary leisure dollars is evident in the competitive gaming arena
The Missouri gaming law was adopted by the people for its potential to generate economic development its ability to raise needed revenue for education and because it is a leisure activity that many want to pursue The loss limit detracts from aU of these goals While Missouri is currently the beneficiary ofa significant amount of capital investment and new job creation the continuing negative impact of the loss limit renders our economic future in this area uncertain Because of the loss limit Missouri riverboat operators are less competitive the state is losing money to its neighboring states there is a reduction in the number of available jobs and the number of riverboats that can successfully operate in Missouri is restricted
Tax revenues from gaming have benefited education While tax revenues from gaming are still growing after only two years Missouri has seen
~ -
How does the Loss Linlit Work
Pursuant to sect 313805 RSMo the commission is required to regulate the wagering structure to include a maximum loss of five hundred dollars per individual player per gambling excursion In order to enforce this provision the commission requires the following procedure
I In order to board an exctrrsion gambling boat a customer most stand in line to obtain a ptrrchase authorization coupon (scrip) This scrip must be signed by the customer in the presence of a licensed riverboat employee
2 After the customer receives the scrip heshe must get in another line to board the riverboat The scrip also serves as the customers boarding pass
3 The scrip which is time and date stamped must be printed with boxes of denominations ofwhich the total ofall boxes shall not exceed $500 These boxes shall be canceled by pennanent black marker at the time the patron presents the scrip in the riverboat casino lfthe scrip is not signed at the time of presentment or the date and time are not valid the scrip shall be confiscated from the customer If the scrip is valid and there are sufficient available boxes the cashier shall cancel the appropriate number of boxes with a pennanent black marker and complete the transaction
4 In a situation where a customer wishes to buy chips at a table the procedtrre is the same except that the dealer stops the game to execute the transaction On many occasions the use of the scrip to convert cash to chips will slow up the game This is another example of customer dissatisfaction arismg out of the process
Transcript Missouri gaming commission meeting November 25 1996 pages 8 II and 1~17 (Bruce Turner Salomon Brothers) pages 44-46 (Joe Coccimiglio Prodential Securities) pages 57-58 (Tom Ryan Bankers Trust) pages 65-68 (Larry Klatzkin Donaldson Lufkin ampJenrette) pages 84-90 (Richard Byrne Merrill Lynch)
Missouri Garning Commission 1996 Annual Report - Page 4
Win Per Admission CoJql8ring Mssouri and IIhlls
those revenues fall short ofpredictions Analysts from Wall Street tell the commission that we are exporting our tax dollars to other states In a recent commission meeting regarding market size a well respected gaming analyst opined that while Missouri supplies 73 ofthe gaming market in the S1 Louis area it captures only 50 ofthe revenue Z
Finally the gaming experience ofconsumers who do visit Missouri gaming operators is less desirable than the experience offered by competitive states Missouri is offering a more cumbersome and less enjoyable product The commission believes that the gaming policy for Missouri should retain the Missouri dollars in Missouri and attract dollars from other states Our current policy has the exact opposite result
The Costs 0Competitive Ineriority
Limiting the ability ofMissouri operators to offer a competitive entertainment product has direct economic costs which are easily illustrated Missouri gaming riverboats are larger more luxurious and offer more non-gaming amenities than competitors in neighboring states Yet they fail to compete in economic terms even though the bulk ofthe popUlation seeking the entertainment product lives in Missouri
For example the Casino Queen in East St Louis Illinois and the Alton Belle in Alton Illinois combined have less capital investment than St Charles Riverfront Station which has consistently expanded and reinvested since it opened in May 1994 In addition these Illinois gaming facilities consist primarily of parking facilities and the gaming casino They offer no non-gaming amenities other than limited restaurant facilities
In spite of these negative competitive factors the two Illinois facilities regularly outperform SCRS in spending per customer Similarly Illinois riverboats in the St Louis area fare significantly better in gaming revenue per square foot gaming revenue per position and admissions per square foot One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
pages 104-106 (John Maxwell Standard amp Poors) and pages 115-118 (Steve Schneider Stife Nicoaus) See also Minutes ofMissouri gaming commission meeting May 24 1995
Missouri Gaming Commission minutes November 25 1996page 27 quoting Jason Ader Bear Stems gaming analyst Examples ofsome of the non-gaming amenities included in Missouri projects include themed restaurants movie theaters botels meeting space retail shopping child
care centers micro breweries an 18th century railroad car restored to its original luxury fountain displays and theaters for live entertainment
Missouri Gaming Commission 1996Annual Report - Page 5
2
The Problem is Clear - How does Missouri Address the Problem
Missouri statutes require the commission to report annually to the Governor and the General Assembly on the competitive state of the gaming industry in Missouri For two years the commission has advised the General Assembly that we believe that there could be a problem with the structure of the gaming industry but that the data is incomplete However we now fmd the data to be clear and compelling A problem exists in the Missouri gaming industry -- the gaming product is not competitive with our neighboring states This will create negative economic results and lower tax revenues
Due to navigational safety constraints most Missouri riverboats do not cruise It has been suggested by gaming analyst and by legislation filed in prior years that the elimination of the boarding time restrictions will help Missouri gaming operators economically and be more consumer friendly The commission believes that the current boarding time restrictions are detrimental to the consumer and make little sense since the riverboats are not leaving the dock They are an artificial barrier to entry and participation Yet the boarding times are essential to enforcing the loss limit A change in the statutes which
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eliminates the boarding times but maintains the loss limit would make the enforcement of the loss limit impossible
Findings
Current Missouri statutes are not competitive with our adjoining states Consequently Missouri is at a competitive disadvantage Repealing the loss limit would make the Missouri operators more competitive Without this change the Missouri gaming industry will continue to be at a competitive disadvantage and over time will decline rather than prosper
Conclusioll
Section 313837 RSMo requires the commission to report annually to the general assembly on the effects ofthe loss limit on the competitiveness of the gaming industry in Missouri The findings above are intended to satisfy this statutory mandate The enactment of any changes in policy as a result of these findings are obviously the purview of the General Assembly and the Governor
Missouri Gaming Commission 1996Annual Report - Page 6
Effect of Tax Rate on Competitiveness
The Missouri tax rate currently mirrors that of its principle competitor the State of Illinois The MissourilIlIinois tax rate consists of a 20 base tax on adjusted gross receipts (AGR) In Missouri 10 of that tax (or 2 of AGR) is a local tax imposed by state statute The funds collected from this local tax are allocated to the home dock city or county fur services necessary for the safety of the public visiting the excursion gambling boat The remaining tax on AGR (18 of gross receipts) is placed in the Gaming Proceeds for Education Fund and may be spent only for public elementary secondary and higher education
Iowa has a graduated tax tbat caps out at 20 for adjusted gross receipts over $3 million Because the graduated rate reaches its cap at the relatively low ceiling 0pound$3 million Iowas effective tax rate is not significantly
The state of Kansas has recently allowed casinos operated by native American Indians These casinos are not taxed
For your future reference a table is contained in Appendix B setting forth the tax rate in each gaming jurisdiction and the regulatory restrictions that are imposed The chart below is a generalization of the tax rates in the various gaming jurisdictions Because of the subtleties of each states tax law it is difficult to precisely chart the rates For a defmitive explanation of the tax rates refer to the aforementioned chart in Appendix B
The Commission does not feel that the 20010 tax rate currently places our licensees at a competitive disadvantage The commission will continue to monitor the performance of all licensees and report developments as they occur
different from that of Missouri and Illinois
Licensees are also responsible for a $2 admission fee for each person who participates in a gaming excursion One dollar of this fee is remitted to the home dock city or county The remaining dollar is used to fund the regulatory activities of the Commission No general revenue is used for any activity of the Commission In addition to the $2 admission fee the gaming boat is billed monthly for the full cost of the enforcement agents assigned to the boat Either through fees or direct billing the gaming operators pay for the full cost of their own regulation
The State of Mississippi assesses a tax of 12 on AGR Unlike Illinois who is limited to licensing 10 gaming operations Mississippi has not limited the number of casinos licensed but has licensed all applicants that have been found suitable The Missouri law does not specifically limit the number of licenses that may be issued but places this responsibility in the hands of the Commission through a best interests of Missouri standard
Comparison of Gaming Tax Rates TaxonAGR
25
20 m ma )(
15 IImTaxRaeJ ~ 10
5
0 NV NJ LA
----------------------------------
MS IL IN IA MO CO so State
Missouri Gamilg Commission 1996Annual Report - Page 7
Missouri Gaming Commission Contributions to Education
Fiscal Year 1995
Gaming Proceeds for Education $ 5661628204
Bingo Tax Proceeds for Education $ 625370396
FY95 Tax Revenue from Gaming $6286998600
Fiscal Year 1996
Gaming Proceeds for Education $9973032067
Bingo Tax Proceeds for Education $ 468417852
FY 96 Tax Revenue from Gaming $10441449919
Total Tax Revenue from Gaming 516728448519
Does the GamblingMoneYiReallyGoo Fund Education
This may be the question inostfrequently asked ofpublic officials The simple answer is yes it does Pursuant to aconstitution~lamendntent passed by theGeneraIAssemblyasSJk 20 in 1992 andapproved bythe voters in a subsequent general electionmiddotall state tax money derived from the proceeds ofgamblirigisspent on education
The text ofthisconstitutional provision contained inArtiete 1lISection 39(d) reads as follows
All state revenues derived from the conduct ofaUgaming activities as are now or hereafter authorized by thiscomtitution orbyJaw unless otherwise provided bylaw on the ~ffectivedateofthissectionshallbemiddot appropriated beginoingJuly 1193solely for the pl1blic instittitions of elementary secondary and higheredueatioll and shaH~ot be included within the defmitionoftotal staterevenues in sectioid 7ofarticle X of this constitution
The tax revenues derivedfimnthe proceeds ofgambling foifiscalyeart998 are estimated to be $155 millionmiddot In ~d~itionto thegamblingm~neymiddot traditional stategeneralrevelluefundingfor publicschoo~ bas Uicreased every year since riverboatgillllblingwasenacted Thetotalstatebudget for educationwhichrepresents approximately 50of the average local school budget is $2965 billion Theg~~lIDgnlOney was designedtoslipplel1lent not replace the primatySufCeS ofpqb lie school fuDding[befunds derived from gambling have be~nusedfortheOiltstandingSchools TtilStFundthemiddotmiddot SchoolDistrict Bond Fund fotmainteniuiceandcapital exp~nclilures for public colleges and universities and to supplcentmenttheschool foundlltionmiddot formula
Missouri Gaming Commission 1996 Annual Report - Page 8
middot Where Does All the middot Gaming Tox Money Go
Orgallizationai Structure OFFICE OF THE EXECUTIVE DIRECTOR
Thomas J Irwin was named Executive Director by the Commission on October 21 1993 Mr Irwin came to the Commission after serving 3 years as Executive Assistant to St Louis County Executive Buzz Westfall Mr Irwin is a graduate ofHarvard University where he earned his masters degree from the Kennedy School ofGovernment He has served as the Chief Budget Officer for the Boston Police Department and was the Executive Assistant for Intergovernmental Affairs for St Louis mayor Vince Schoemehl from 1982 to
1988 Mr Irwin is a veteran of the United States Marine Corps having served
in Vietnam in 1968
i i Mr Irwin is responsible for the day-to-day operations of the
Commission He supervises all staff activities and reports to the Commission Among the staff positions reporting to the Director is Public Information
i K Officer Harold Bailey Mr Bailey is responsible for organizing and
distributing all public documents and reports
I In addition there are six primary functions of the Commission that
it have been divided into sections that report directly to Mr Irwin including
Administration Audit Bingo Corporate Securities Enforcement amp
t ~
Investigations and Legal amp Legislative Affairs
I ADMINISTRA110N
The administration section headed by Deputy Director Deborah A Ferguson provides a range of administrative financial and technical services to
help the Commission accomplish its goals The administrative services can be divided into the following functions accounts payable accounts receivable purchasing data processing budget facility leasing and human resources Accomplishments of the administration section would not have come to pass without the assistance ofChiefAccountant Denny Hodges Persomlel Officer Vicki Glenn Records Administrator Michael Shelhnan and Data Processing Manager John Bluma The administration staff benefited from the addition ofTen a Smith Diane Riddle and Mike Brizendine
The administration section continues to be a focal point of activity with the continued growth of the gaming industry l1te highlight of this past year was the relocation of the Jefferson City office Plaooing and design for the Jefferson City office began in 1995 and culminated with the move in September 1996 Highlights of the new building include a hearing room to conduct Commission meetings adequate file space to house the Commission
records that will be relocated from the St Louis office and the merging of the Bingo and Gaming staff into one facility to enhance coordination ofdaily activities
More specifically the duties of this section are as follows
~ Billing licensees for the processing and aoouallicenses issued to Level One and level Two Occupational employees that work for each riverboat To date there are approximately 9000 licensed employees
~ Billing licensed operators for the full cost of the enforcement agents assigned to each boat
~ Maintaining all Commission fmancial and personnel records which includes the monthly reconciliation of the Gaming Commission fund balance and processing aU payments made by the Commission
gt Preparation and implementation of the Commissions annual budget to ensure compliance with legislative intent
~ Handling all personnel matters and employee training and establishing and implementing written office policies for Commission staff
gt Preparation of fiscal notes to provide estimates to proposed legislation
Data Processiltg
The Data Processing section headed by John Blunm had a busy year in 1996 which included major systems developments as well as the daunting task of moving the Jefferson City office to a new location Some ofthe accomplishments of this important section include
~ Opening new commission offices for its agents at licensed premises
~ Moving the Jefferson City offices of the Riverboat Gaming and the Bingo workgroups to the new location This involved moving all computer workstations servers communications processors and printers to the new
Missouri Gaming Commission 1996 Annual Report - Page 10
building The two separate networks were consolidated into one large network that provides email between all members ofthe two sections for the fIrSt time and allows sharing of peripheral equipment such as laser printers
gt Final testing and implementation ofa billing system for enforcement billing to reimburse the state for expenses related to regulating the casino gaming industry
~ Automation ofannual MULES checks required of the 9000 plus gaming occupational license holders eliminating hundreds ofhours ofdata entry time
gt Upgrade of the physical inventory system to provide more complete reports and to track add-on costs to major inventory items
gt Design and development ofan occupational license history tracking system to provide a complete picture of license payments changes in license status duplicate badges issued and changes in employment status
gt Enhancing existing systems to meet new statutes and rules and regulations
AUDET
The audit section is responsible for the critical function ofensuring that the operators pay their taxes promptly and accurately This section headed by Jolm Davis former Internal Revenue Service Manager developed the Commissions tax remittal system that allows the Commission to capture tax remittance data on a daily basis The operators returns are audited by compliance audit siaffheaded up by senior accountant Kara Hardaway
The audit section also develops audit programs reviews and approves each boats system ofintemal controls conducts on-site performance audits reviews the quarterly CPA audits ofAdjusted Gross Receipts Tax and Admission Tax and reviews all internal audit reports prepared by the casinos internal audit staff
During 1996 the audit section revised Minimum Internal Control Standards that all operators must meet These standards were developed by the
audit staff after a lengthy review process that involved input from the IRS enforcement officers and industry experts
The audit section also implemented a system for tracking and depositing all non-tax revenue received from applicants such as application fees from applicants and reimbursements for Commission services
A summary ofsome ofthe audit sections programs and objectives is contained on page 22
BINGO
The Bingo Division is comprised ofthree separate sections which include the Administration Licensing Audit and Enforcement The Bingo Division Supervisor is Ron Pleus The Audit Section Supervisor is Randall Cahill and the Enforcement Section Supervisor is Sergeant Dwight Franklin The bingo statutes have been revised significantly in recent years requiring many administrative changes to occur within the Division Among the more daunting projects were the establishment ofa new licensing category for hall providers and the implementation ofa new supplier-based tax Specific duties within the three sections of the Bingo Division and the recent statntory changes are briefly outlined below
AdministrativeILicensiog Section - This section is responsible for the processing ofall correspondence and the licensing and maintenance ofover 1500 operator licensees which include all regular and special event bingo operators licenses and 200 hall providers annually This section deposits and records an tax and license receipts received on a daily basis This unit maintains a data base of over 31000 records ofindividuals that are involved in the management conduct andor operation ofbingo games and 3000 records of individuals involved as owners and officers of licensed Hall Providers Currently this staff consist ofthree employees Jane Bax Pam Murphy and Tina Freese In conjunction with the data processing staff the administrative section has developed an automated renewal application system which became fully operational January 1996 This system simplifies the renewal process for the licensee and eliminates wasted steps and duplicate information The system has proven to be a tremendous time saver for the not-for-profit volunteer organizations who are required to file renewals and also helps to reduce the staffmg cost and other administrative cost for the Division
Missouri Gaming Commissioll 1996 Allnual Report ~ Page 11
Audit Section - This section is responsible for the timely audit of all Bingo Product Manufacturers and Suppliers and assisting the Enforcement Section with oil-site inspections of bingo operators The audit staff has developed a comprehensive Manufacturer and Supplier audit procedure manual and has developed procedures for the inspection ofbingo operators The procedures for the inspection of bingo operators are used by both the Enforcement and Audit Staffs The audit section has audited all of the licensed Manufacturers and Suppliers during fiscal year 1996 These audits resulted in over $32000000 in unreported taxes and penalties The auditors also assisted enforcement with inspections and investigations of unlicensed suppliers and operators The section conducts on-site inspections of formerly licensed suppliers to determine ifthe products in inventory were being disposed of in accordance with the statutes The audit staff also assists the administrative staff in auditing the operators quarterly repom
Enforeement Section - This section is headed by Sgt Dwight Franklin a 17 year veteran ofthe Missouri Highway Patrol Sgt Franklin has six (6) officers assigned to the enforcement section Their duties include background investigations of all Manufacturers and Suppliers to include all the key personnel in those companies These investigations include criminal checks fmancial checks past employment history and all litigation involving the applicant In addition the enforcement section is responsible for investigating complaints on the licensed bingo organizations The complaints range from minor rule violations to thefts of large sums of money Complaints are received on a daily basis and are investigated on the basis of severity location and available manpower An additional duty of the Enforcement Section is to complete background investigations on all new potential employees of the Gaming Commission
CORPORATE SECURITIES AND FINANCE
The Commission has established a Section of Corporate Securities and Finance to address the challenge ofregulating the complex fmancial corporate structuring and contractual transactions involving publicly traded and privately held gaming companies This section is comprised of staff trained in legal accounting and business matters to perform examinations of these transactions
The suitability issues examined by the Corporate Securities and Finance Section include complex fmancial and legal suitability issues such as fmancial soundness corporate control legal compliance and procedural licensing issues
The sections examinations are coordinated closely with the Enforcement Division for background investigations and disciplinary matters
Typical transactions that are examined by the section include mergers and acquisitions public debt and equity issuances and private financings such as bank loans and credit facilities The goal of this new section is to provide the Commission with more thorough and sophisticated investigations and analysis of the suitability ofgaming companies and with a uniform system for providing this analysis on corporate securities and fmance issues Through this section the Commission hopes to identifY suitability problems ofapplicants and licensees earlier and more efficiently and to identifY plan for and possibly even avoid potential business closures of licensees due to fmandal matters
The Corporate Securities and Finance Section is headed by the Commissions General Counsel Greg Orner who reports directly to the Executive Director on corporate securities and finance matters The section also includes a Chief Financial Analyst position to be filled soon which will oversee the work ofthe fmancial staff examining the corporate secwities and fmance transactions
The Conunissions Financial Manager Pam Brown haS handled the fmandal analysis of the reported transactions up to now and will continue to perfonn many of the more complex transaction examinations and oversee the work of an accountant Pam Wheelis and a fmancial analyst (planned to be added next year) who are also assigned to the section
ENFORCEMENT
Enforcement for the Missouri Gaming Commission is provided by officers of the Missouri State Highway Patrol and agents of the Internal Revenue Service by way of Memorandums ofUnderstanding which set forth the responsibilities ofeach entity
The enforcement section is headed by Mel Fisher former Superintendent of the Highway Patrol The Gaming Division ofthe Highway Patrol is headed by Captain Dwight Hartung There are seventy-seven officers assigned to the Gaming Division and an additional six officers assigned to the Bingo Enforcement Unit
Some of the advantages ofusing Highway Patrol Officers as gaming agents include
JtfisSOUli Gaming Commission 1996 Annual Report - Page 12
the staff assigned are trained specialists in law enforcement and investigations thus saving the Commission the time effort and expense of recruitment and training
because the agents are licensed law enforcement officers they command immediate respect when interacting with licensees and customers aboard a riverboat as well as when they are in a foreign jurisdiction conducting an investigation
~ the Commission feels that it is important to rotate enforcement staff aboard the various boats this process is much easier with seasoned law enforcement officers who are used to being rotated between assignments as well as in and out of the gaming division
gt provides the ability to access sensitive law enforcement information from other jurisdictions
gt their experience in conducting investigations and handling emergency situations has proven invaluable
The Commissions background investigation units consist of three Highway Patrol Officers and one IRS agent The background investigations conducted by the Missouri Gaming Commission are thorough and take approximately four months to complete if no unusual complications or delays emerge The Commission not only investigates the finances and activities of the company and all its key people but traces the source ofall their funds to ensure that no criminal elements are funding the operation from behind the scene An outline that provides a sketch of a typical background investigation is contained on page 20
LEGAL amp LEGISLATIVE AFFAIRS
The legal amp legislative affairs section is responsible for all legal matters presented to the commission prior to litigation Any litigation involving the commission is handled by the Attorney Generals office In addition this section which is headed by Deputy Director Kevin Mullally develops and drafts legislation endorsed by the commission as well as all rules and regulations Moreover the legal section manages an administrative appeals docket where Mullally serves as Hearing Officer
Greg Orner serves as the commissions general coWlSel and works closely with the enforcement staff reviewing incident reports investigative issues and possible disciplinary actions In addition Mr Omer heads the Corporate Securities section
Some of tbe otber responsibilities of the legal section include
~ Drafting all resolutions for all commission actions and
gt preparing disciplinary complaints and denial orders for proposed action against licensees and
gt conducting quasi-legislative hearings on issues such as continuous docking and boat design and
gt providing legal research services and
gt organizing and maintaining records ofall official commission actions and commission policies and
gt handling inquiries from legislators constituents and other state regulatory agencies
The commissions legal staff is supported by paralegal Heather Grefrath and legal secretary Susan Sundermeyer This support staff is critical to daily operations ofthe legal section and is particularly valuable in the sections role in preparing and managing the rules and regulations all documents necessary for commission meetings and all documents declaring commission policy
In 1997 the legal section will be augmented with the addition ofstaff attorney Robert Little
PENDING LITIGATION
The Missouri Gaming commission denied one occupational license in 1994 thirteen occupational licenses in 1995 and thirty-five occupational licenses in 1996 Each aplicant is presumed WlSuitable and has the burden of proof to prove his or her suitability to the Conunssion An individual may request a hearing to attempt to prove suitability to the Commission by serving
Missouri Gaming Commission 1996Annual Reporl- Page 13
such a request on the commissions Executive Director The following is a list of pending litigation
Petitioner Venue
Bingo Systems amp Supply AHC Cape Girardeau Elks Lodge 639 AHC Cape Girardeau VFW Post 3838 AHC Edwin Pete Rhodes AHC Ideal Bingo Supplies Inc AHC Mary Cracchiolo AHC Maureen L Scott AHC Meramec-Amold Eagles Auxiliary AHC Myron B Carter Sr AHC Pan-Education Institute AHC Raymond J Drury AHC Raytown Women of Today AHC Sandra Termini AHC Stanley L Turner AHC Missouri Gaming Co ~Disc Action MGC Harrahs -Disciplinary Action MGC Boyd Kansas City Inc -Disc Action MGC Jeffery Koester -Denied License MGC Gary Franklin -Denied License MGC Mark Zwolle -Disciplinary Action MGC Anthony Civella -Exclusion MGC Peter Simone -Exclusion MGC Yolanda Nettles MGC Tracy Anderson MGC Carrie Gentry MGC Jimmie B Carsey MGC Cape Girardeau Elks amp VFW Circuit Court ofCape Girardeau County MGC v Veterans Commission
st Louis Public Schools Missouri Supreme Court W Todd Akin v MGC Missouri Supreme Court William D Cmmnisano Jr Missouri Court ofAppeals-Western District Pen-Yan Investment Inc Missouri Court ofAppeals-Western District
SUMMARY OF PENDING LITIGATION
There are fourteen bingo cases pending in the Administrative Hearing Commission
There are three disciplinary cases at the Commission level against gaming licensees pending the outcome ofPen-Yon Investment Inc v Boyd Kansas City Inc and MGC
Pen-Yon Investment Inc v Boyd Kansas City Inc MGC is pending in the Missouri Court ofAppeals Western District regarding disciplinary action taken against Boyd for associating in business affairs with a person who has a felony police record The Commission imposed a fine against Boyd and prohibited Boyd from collecting or distributing any funds from the machines under its service agreement with Pen-Yan
MGC v Missouri Veterans Commission St Louis Public Schools is pending in the Missouri Supreme Court regarding funds received from fmes imposed by the Commission
In W Todd Akin et 01 v MGC the Circuit Court ofCole County ruled in favor of the commission on summary judgment The suit challenges the Commissions authority to grant or deny Harrahs Maryland Heights Corp and Players Maryland Heights LP a license for a continuously docked excursion gambling boat within a man-made basin filled by water from the Mississippi River The petitioners have appealed and the matter is now before the Missouri Supreme Court
Cape Girardeau Elks Lodge et aI v MGC is pending in the Circuit Court of Cape Girardeau County regarding the Commissions decision to suspend the Cape Girardeau Elks Lodge bingo license
In the Matler oWilliam D Cammisano Jr there is an appeal pending in the Missouri Court ofAppeals Western District regarding the Commissions decision to place Mr Cammisano on its List of Excluded Persons
MISSOURI GAMING COMMISSIONS EXCLUSION LIST
The Missouri Gaming Commissionplaced two individuals in 1994 two individuals in 1995 and two individuals in 1996 on the commissions Exclusion List Placement of these individuals on the Exclusion List has been based on prior convictions
As a result of placement on the Exclusion List each individual shall not be permitted eoby into any portion of a riverboat gaming operation within the state ofMissouri and shall be ejected ifdiscovered on such premises Furthermore Excluded Persons shall be prohibited from contact of any kind with Missouri riverboat gaming operations Persons placed on the Listmay file a written petition with the Commission to request a hearing to have their name
JlrJissOIlri Gaming Commission 1996 Annual Report - Page 14
removed from the Exclusion List Currentlyone individual has appealed to the Western District of Missouri and two otbers are pending hearings by the Missouri Gaming Commission
MISSOURI GAMING COMMISSIONS DISCIPLINARY ACTIONS AGAINSTOCCUPATIONAL LICENSEES
The Missouri Gaming Commission has taken disciplinary action against twenty-eight occupational licensees as of September 30 1996 Preliminary
Orders for Disciplinary Action set forth statements of fact that support the proposed disciplinary action and the regulatory and statutory sections involved Individuals may request a hearing by serving such a request on the Commissions Executive Director Currently four individuals have sought hearings before the Commission one ofwhich is stm pending
Occupational License Denials 1994-1996
40
l 30
lt0 c Q)
0 lt5 20 i-Q) 0 E ~ 10
o Year Licenses 1994 1995 1996 IiiI Licenses Denials 1 13 35
Voluntary Exclusions On December 30 1996 after six months of research and consultation the
commission established a unique program to combat problem gambling The List of Disassociated Persons is the result of many months ofconsultation with treatment professionals that help problem gamblers The program allows problem gamblers to exclude themselves from Missouri riverboat casinos under the threat ofarrest for trespassing
In exchange for agreeing not to patronize Missouri riverboat casinos the problem gambler is removed from all casino mailing lists and direct marketing promotions In addition the operators are required to deny persons on the List check cashing privileges and must take away their VIP or players club card
Treatment professionals have advised the commission that the only way for a problem gambler to get help is to admit that heshe has a problem and to accept personal responsibility for that problem by seeking treatment
The Disassociated Persons program is a valuable tool in addressing problem gambling because it requires the individual to admit to having a gambling problem to agree to seek treatment and stay away from gambling casinos Furthermore it includes severe consequences if the problem gambler succumbs to the temptation to gamble Moreover it offers some protection to the problem gambler from the marketing promotions that encourage people to visit the casino properties
The program operates in the following manner
~ The problem gambler must obtain an application for placement on the List ofDisassociated Persons from the commission
~ the application contains various information about the individual an admission that the person is a problem gambler and agrees to stay off Missouri riverboats and seek treatment an authorization to release this information to riverboat operators as well as a Waiver releasing the commission and the licensee from any liability associated with enforcing the rules of the program
~ the application must be personally presented to a commission agent at which time the information is verified and the rules of the program are explained
~ the application is a closed record and its contents may only be disclosed to necessary commission and riverboat personnel
~ the commission considers all applications in closed session
~ once a person is placed on the List heshe cannot petition for removal After consulting with treatment professionals the commission concluded that problem gambling requires lifetime treatment and therefore there is no procedure for removal from the List
Missouri is the frrst jurisdiction in the world to propose a program such as this We will continue to monitor and refme the program and look forward to reporting to you on its impact in next years annual report
ft-Iissouri Gaming CommissiOil 1996 Annual Report - Page 16
Brief Timeline of Riverboat Gaming in Missouri ~ May 13 1991 - General Assembly passes House Bill 149 which authorized
referendum to be submitted to the voters in the November 1992 election to determine whether the State Tourism Commission shall have the power to issue riverboat gambling licenses
gt November 31992 - Missouri voters pass referendum allowing riverboat gaming with a majority ofnearly 63
gt January 1993 - Governor Carnahan announces intentions to push legislation creating an independent Gaming Commission to oversee riverboat gambling
April 29 1993 -- SBs 10 amp 11 creating the Missouri Gaming Commission are signed into law by Governor Carnahan and five Commissioners are appointed Robert Wolfson Chairman Robert Clayton William Quinn Dr Jenice Stewart and Avis Tucker
gt April 30 1993 -- Troy Harris et al v The Missouri Gaming Commission amended petition is filed The petition challenges the constitutionality of Senate Bills 10 amp II
gt- May 17 1993 -- The Missouri Gaming Commission holds its first meeting
~ September 1 1993 -- Proposed Rules and EmergencY Rules are adopted
gt September 20 1993 - 19 riverboat gaming license applications are filed with the commission
gt September 20 1993 - Clarence E Mel Fisher hired as Deputy Director for Enforcement
gt September 24 1993 - Commission contracts with the Internal Revenue Service to perform fmancial investigations for the commission Four IRS agents are assigned to the commission
~ September 28 1993 - Commissions enters into and inter-agency agreement with the Missouri State Highway Patrol to provide enforcement services for the commission
~ October I 1993 - Debbie Ferguson joins the commission as Deputy Director for Administration
November 3 1993 - Commission hires Tom Irwin as Executive Director and Kevin Mullally as Deputy Director for Legal amp Legislative Affairs
November 30 1993 -- Commission announces that it will begin background investigations on the following companies President Riverboat Casino-Missouri St Charles Riverfront Station Inc S1 Joseph Riverboat Partners The Missouri Gaming Company GDC (Supplier) IGT (Supplier) Casino Tokens (Supplier) Paul-Son Dice amp Card Company (Supplier)
gt December 22 1993 - Governor Carnahan signs Executive Order 93-50 designating the enforcement section ofthe Missouri Gaming Commission as a criminal justice agency
1994
gt January 25 1994 -- Missouri Supreme Court in Troy Harris v Missouri Gaming Commission strikes down games of chance including slot machines The court ruled that the Commission did have the authority to issue licenses to riverboat where games ofskill are played Specifically mentioned as games ofskill are poker and blackjack The Court remanded six games to lower court for determination as to whether they are games of skill or chance baccarat craps roulette wheel klondike table faro layout and video games ofchance
~ February 1 1994 -- Rules and Regnlations become effective
February 7 1994 -- Legislature passes resolution to place constitutional amendment on the ballot which would allow the legislature to approve games of chance (slot machines) on riverboats and floating facilities on the Missouri and Mississippi Rivers
gt- April 5 1994 -- Voters defeat constitutional amendment allowing games of chance (slot machines) by an unofficial count of 1263 votes
~ April 29 1994 - Finding of Preliminary Suitability issued to President Riverboat Casino S1 Charles Riverfront Station St Joseph Riverboat Partners and The Missouri Gaming Company
Missouri Gaming Commission 1996 AnnualReport - Page 17
Brief Timeline of Riverboat Gaming in Missouri ~ May 20 1994 -- Governor signs into law SB 740 which defmes games of
chance and enacts more stringent ethics provisions The bill also allows the commission to license a barge in an artificial basin as an excursion gambling boat if it can be demonstrated that safely concerns prevent an operator from cruising from that location
~ May 27 1994 - Commission authorizes as games of skin the following Blackjack Caribbean Stud Poker Poker Double Down Stud Poker Pia Gow Poker Poker Texas Hold Em the video representations ofthese games and Craps
gt May 27 1994 -- Commission authorizes President Riverboat Casino-Missouri to operate the Admiral as a continuously docked excursion gambling boat because cruising would cause danger to the boats passengers
gt May 27 1994 -- Gaming Commission issues first two excursion gambling boat licenses to President Riverboat Casino in st Louis and St Charles Riverfront Station in st Charles
gt May 27 1994 -- Initiative petition tbat would allow voters to approve games ofchance is submitted to the Secretary of State for approval of the form ofthe petition
~ June 6 1994 -- Secretary ofState notifies referendum petitioners that the Attorney General has approved the form of their petition The Secretary of State prepared the following petition title that was approved by the Attorney General
Shall the General Assembly be authorized to permit only upon the Mississippi River and the Missouri River lotteries gift enterprises and games ofchance to be conducted on excursion gambling boats and floating facilities
gt June 9 1994 -- Commission prioritizes Aztar Missouri Corporation Boyd Kansas City Inc and Harrahs North Kansas City as companies to be investigated for licensure pursuant to 11 CSR 45-4060
gt June 22 1994 -- Gaming Commission issues licenses to St Joseph Riverboat Partners in St Joseph and The Missouri Gaming Company in Riverside
~ September 20 1994 -- Commission issues a fmding ofpreliminary suitability to Harrahs North Kansas City Corporation
gt September 20 1994 -- Commission authorizes Harrahs North Kansas City Corporation and st Charles Riverfront Stationl to operate excursion gamblillg boats as continuously docked vessels In both cases the commission found that operating a cruising vessel from the proposed site would cause danger to the boats passengers and the project will generate permanent job creation and land-based development
gt September 22 1994 -- Harrahs North Kansas City Corporation is issued an excursion gambling boat license
gt September 28 1994 - Public hearing regarding Capitol Queen and Casino Jncs application for an excursion gambling boat license results in the commission denying CQCs license and prohibiting them from reapplying for two years
gt October 7 1994 - Commission places William D Cammisano Jr and John Termini on its list of excluded persons
gt November 8 1994 -- Voters approve games ofchance
~ December 9 1994 - Games ofchance are allowed on riverboats
gt December 27 1994 - St Charles Riverfront Station is issued a license to operate the St Charles II as an excursion gambling boat This marks the fIrSt time the commission has licensed a second excursion gambling boat for a single development
The approval was for St Charles Riverfront Stations second boat The flTSt boat continued to cruise until April 16 1996
Missouri Gaming Commission 1996 Annual Report - Page 18
Brief Timeline of Riverboat Gaming in Missouri 1995
)gt- February 22 1995 -- Commission announces it will begin background investigation on Hilton Kansas City Corporation for an excursion gambling boat license
~ March 30 1995 - State Auditor releases final audit report of the Missouri Gaming Commission No major deficiencies are noted
~ April 20 1995 - Commission repays $3 million start-up loan to state general revenue fund
)gt- April 25 1995 - Commission approves continuous docking petitions for Boyd Kansas City Inc and Hilton Kansas City Corporation
~ April 25 1995 -- The commission issues a finding ofpreliminary suitability to Aztar Missouri Gaming Corporation
~ April 26 1995 -- The commission issues an excursion gambling boat license to Aztar Missouri Gaming Corporation in Caruthersville Missouri
)gt- May 24 1995 - The commission announces it will begin background investigations on the following companies Harrahs Maryland Heights Corporation Kansas City Station Inc Players Maryland Heights Inc
gt August 28 1995 - Pursuant to House Bill 574 the duties of the Missouri Horse Racing Commission are transferred to the Gaming Commission
~ September 12 1995 - The commission issues a fmding of preliminary suitability to Boyd Kansas City Inc
September 13 1995 - The commission grants the petition ofHarrahs Maryland Heights Corporation and Players Maryland Heights Inc to operate continuously docked excursion gambling boats at their joint venture in Maryland Heights
)gt- September 13 1995 - The commission issues an excursion gambling boat license to Boyd Kansas City Inc
)gtshy November 16 1995 shy The commission fines the following companies for associating with either socially or in business affairs persons with felony police records or persons with a notorious or unsavory reputation Boyd Kansas City Inc Harrahs North Kansas City Corporation The Missouri Gaming Company
1996
)gtshy February 15 1996 - The commission grants continuous docking rights to Aztar Missouri Gaming Corporation for a second boat in Caruthersville Harrahs North Kansas City for a second boat and Kansas City Station Corporation for two boats in Kansas City
~ April 16 1996 - The commission grants continuous docking rights to Argosy in Riverside Missouri S1 Joseph Riverboat Partners and 81 Charles Riverfront Station
~ May 15 1996 - The commission issues a license to Harrahs North Kansas City for the Lucky Star This is the second boat at the Harrahs North Kansas City mcility Included in the project is a 200-room hotel expanded parking and meeting space
~ June 19 1996 -- The commission places William Canunisano Jr on Exclusion List
~ June 27 1996 - The commission places Peter Simone and Anthony T Civella on Exclusion List
August 28 1996 - The commission takes disciplinary action against Boyd Kansas City Inc for periodic failure to take and report turnstile readings
~ October II 1996 - The commission issues a finding of prel iminary suitability to Hilton Kansas City Corporation and Flamingo Hilton Riverboat Casino LoP
October 18 1996 - TIle commission issues a Class B riverboat gambling license 10 HUlon KlIlIStIS City Corporation and a CltlSs A riverboat gambling license 10 Flamingo Hillon Riverboat CtlSino LP
Missouri Gaming Commission 1996Annual Report - Page 19
Outline of a Background Investigation
Review Application fin Completeneiis
~ Establish number ofkey people
~ Check disclosure forms for completeness
gt Check tax release forms
City Selection Process
~ Contact city to determine how the gaming operator was selected
gt Interview Mayor and City Council members
~ Ifa steering committee was used interview members of that committee
Determine ifany city officials own stock in the selected gaming company
~ Obtain minutes ofcouncil meetings that pertain to riverboat issues (a)selection (b) resolution and (c) ordinance
gt Contact city attorney who handled negotiations with gaming company and obtain correspondence between city and gaming company
~ Contact City Economic Development Director (if applicable)
Docksite
gt- Land selected for gaming operation
J Who was it purchased from (how long have they owned the property) J Price (copy ofcontract)J Copy of plat map and legal description J Determine ifany ofcity officials or selection committee members have
ownership interest in docksite
gt Corps ofEngineers Permit
J Status
J Any concerns by Corps J Wetlands involved
~ Contact DNR for any known concerns in area
gt Check with city for any known dwnpsites with possible hazardous material
gt Developmental agreement between city and gaming operator (obtain copy from city)
gt Detennine if development is feasible
J Is support facility land based or floating J Projected nwnber ofjobs economic aid to area J Traffic flow to area - what improvements are needed - who will pay
for improvements
Riverboat
gt Locate boat and obtain all infonnation about boat (cruise schedule liability carrier)
gt Establish design ofriverboat
gt Determine emergency medical plan for boat
gt Determine ifCoast Guard and other safety requirements have been met
Gaming Operator (Public Corporation Partnership Private Company)
gt Establish contact person with operator
J Determine attorney of record for gaming company J Any missing items from application advise contact person
gt Establish home office (Financial Headquarters)
J Determine a good date and location where all key people can be contacted for a personal interview
J Where can financial record be located
Missouri Gaming Commission 1996Annual Report - Page 20
~
Outline of a Background Investigation
J Breakdown ofmanagement (corporate Board ofDirectors major stockholders)
J Establish flow chart of key people and companies owned by gaming operator
~ Investigation ofKey People will include but not be limited to the following
J Check previous employment work records J Check state local and federal intelligence files J Check for other gaming licenses ifapplicable (check with appropriate
regulators)J Check state federal and local courts for any civil litigation J Check for any arrest record J Check personal and business credit J Check state and local tax status IRS will handle federal taxes
gt Other locations ofgaming operations (currently operating and pending locations)
J Contact gaming regulators for respective locations J Travel to sites to view operations
Establish a file for all key people investigated with summaries establish a file for financial records with summary offinancial viability ofcompany and ability to complete obligations to the city and State ofMissouri Establish a file for other locations of licensure along with summary
Associated Investigations
gt All allegations of Any nature must be investigated and a file established with a written summary
~ Associated investigations must be done in a complete and thorough manner and all reports written accurately
gt Upon completion ofall investigations complete reports and summaries a separate press releasable summary must be written This summary must be approved by Gaming Commission legal staff
Missouri Gaming Commission 1996 Annual Report - Page 21
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--------
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Missouri Gaming Commission Compliance Audit Objectives for Licensees
ObjectiveAudit Area ~~~~~~~~~
To ensure accuracy of ticket and turnstile counts reported to MGC including compsIVlPs stayovers and promotions
Table Games
Ticketffurnstile
To ensure accuracy of AGR for table games reported to MGC
Electronic Games To ensure accuracy of AGR for electronic games reported to MGC
Cage Accowltability To ensure accuracy ofcage accountability forms and compliance with internal controls and tax reporting regulations
Observations Cage Main Bank Pit Area Slot Area Turnstile Ticketing
PurchaselRedemptions
$500 Loss Limit
Stayover Procedures
To determine that cashiers are complying with internal controls for chips tokens gaming scrip and cash
To determine compliance with MO statutes and internal controls
To determine compliance with MGC regulations and internal controls
To ensure that manual jackpot payouts are properly handled and the required tax fomIS are completed Manual Jackpot Payouts
To ensure that hopper fills are properly handled and comply with internal controls Hopper Fills
To ensure that table fills are properly handled and comply with internal cootrols Table Fills
To ensure that table credits are properly handled and comply with internal controls Table Credits
To ensure that tracking procedures comply with internal controls and the currency transactions are properly completed Patron TrackingCurrency Transaction Reporting
Imprest Bank Balancing To ensure that proper balancing and accountability is performed during a shift change
Coin Vault To ensure proper maintenance of coin chip and token inventory
Satellite CageSSlot Booths To ensure compliance with internal controls and consistency with main cage procedures
TipsGratuities To ensure compliance with MGC regulations and internal controls
Cage AccessSecurity To ensure compliance with internal controls
Turnstile To ensure accuracy of turnstile count for admissions tax calculation
Ticketing To ensure comp Hance with internal controls and proper handling of stubs voids and issuance
MiscellaneousOther
Surveillance Tapes To review activity for hard soft and tip counts and drops to verify compliance with internal controls
Workpaper Preparation and To establish standardized procedures for MGC audit workpapers and audit reports Audit Reports
-
Missouri Gaming Commission 1996 AnnualReport - Page 22
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Audit Area
Monthly Financial Statement Review
Engagement Letters
Objective --shy
To perform a preliminary review ofmonthly financial statement information for proper completion of fmandal statement templates verification ofadjusted gross receipts to MGC reports and to detect any unusual items which justifY further review when conducting on-site audit
To give advance notification to each boat of the date and scope ofaudit being performed
Financial Statement Verification To determine consistency ofmonthly financial statement information submitted to MGC with boats general ledger system
Balance Sheet Accounts
CashCash Reserve Balance
Cash Receipts
Cash Disbursements
shy -- shy
To determine the existence consistency and fair presentation of the cash balance on the monthly fmancial statements
To determine the consistency and filir presentation of the cash balance on the monthly financial statements and the source of large cash receipts other than gaming revenue
___I
To determine the consistency and fair presentation of the cash balance on the monthly fmancial statements and to trace the outflow of large cash disbursements
i
I
--
AccountslN Notes Receivable
Accrued Admission and Gaming Tax Liability
Chip and Token Liability
Progressive Jackpot Liability
To determine the consistency and fair presentation of the accounts receivable andor notes receivable balance in the monthly fmancial statements
To determine the consistency and fair presentation of the accrued admissiongaming tax liability balance in the monthly financial statements
To determine the consistency and fair presentation of the chip and token liability balance in the monthly financial statements
To determine the consistency and fair presentation of the progressive jackpot liability balance in the monthly fmancial statements
---shy
Tips and Gratuities (Accrued Liability)
Customer Deposit Liability
Accounts Payable
Income Statement Accounts
Revenne - Table Games
To determine the consistency and fair presentation of the accrued tips and gratuities liability in the monthly fmancial statements
-lt ---- shy
To determine the consistency and fair presentation of the customer deposit liabilities in the monthly fiscal statements To determine the consistency and fair presentation ofaccounts payable balance in the monthly fmancial statements
--shy
To determine the consistency and fair presentation of table games revenue as reported to MGC daily and in the monthly fmandal statements
Revenue - Electronic Games To determine the consistency and fair presentation of electronic games revenue as reported to MGC daily and in the monthly financial statements
Missouri Gaming Commission 1996 Annual Report - Page 23
------------
---------
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Revenue - Admissions To detennine the consistency and fair presentation ofadmissions revenue as reported to MGC daily and in the monthly fmancial statements
Promotional Expense To determine that comps are properly recorded as expenses and not deducted from revenue in accordance with GAAP
Pre-Opening Costs To determine whether certain pre-opening and licensing costs are properly expensed or amortized over future periods in accordance with GAAP
Workpaper Preparation and Audit Reports To establish standardized procedures for MGC audit workpapers and audit reports
AissOllri Gamillg Commission 1996 Anllual Report - Page 24
--raquo
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l
a
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raquo
AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
c
Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
----shy
_ gtlt
o
Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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I IAztar Missouri Corporation
r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
j i
1
J
1 I l
I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
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Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
Win Per Admission CoJql8ring Mssouri and IIhlls
those revenues fall short ofpredictions Analysts from Wall Street tell the commission that we are exporting our tax dollars to other states In a recent commission meeting regarding market size a well respected gaming analyst opined that while Missouri supplies 73 ofthe gaming market in the S1 Louis area it captures only 50 ofthe revenue Z
Finally the gaming experience ofconsumers who do visit Missouri gaming operators is less desirable than the experience offered by competitive states Missouri is offering a more cumbersome and less enjoyable product The commission believes that the gaming policy for Missouri should retain the Missouri dollars in Missouri and attract dollars from other states Our current policy has the exact opposite result
The Costs 0Competitive Ineriority
Limiting the ability ofMissouri operators to offer a competitive entertainment product has direct economic costs which are easily illustrated Missouri gaming riverboats are larger more luxurious and offer more non-gaming amenities than competitors in neighboring states Yet they fail to compete in economic terms even though the bulk ofthe popUlation seeking the entertainment product lives in Missouri
For example the Casino Queen in East St Louis Illinois and the Alton Belle in Alton Illinois combined have less capital investment than St Charles Riverfront Station which has consistently expanded and reinvested since it opened in May 1994 In addition these Illinois gaming facilities consist primarily of parking facilities and the gaming casino They offer no non-gaming amenities other than limited restaurant facilities
In spite of these negative competitive factors the two Illinois facilities regularly outperform SCRS in spending per customer Similarly Illinois riverboats in the St Louis area fare significantly better in gaming revenue per square foot gaming revenue per position and admissions per square foot One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
One must question why Missouri residents will drive a longer distance to an inferior facility to spend their entertainment dollar The answer is to spend their money on the product which they consider superior
pages 104-106 (John Maxwell Standard amp Poors) and pages 115-118 (Steve Schneider Stife Nicoaus) See also Minutes ofMissouri gaming commission meeting May 24 1995
Missouri Gaming Commission minutes November 25 1996page 27 quoting Jason Ader Bear Stems gaming analyst Examples ofsome of the non-gaming amenities included in Missouri projects include themed restaurants movie theaters botels meeting space retail shopping child
care centers micro breweries an 18th century railroad car restored to its original luxury fountain displays and theaters for live entertainment
Missouri Gaming Commission 1996Annual Report - Page 5
2
The Problem is Clear - How does Missouri Address the Problem
Missouri statutes require the commission to report annually to the Governor and the General Assembly on the competitive state of the gaming industry in Missouri For two years the commission has advised the General Assembly that we believe that there could be a problem with the structure of the gaming industry but that the data is incomplete However we now fmd the data to be clear and compelling A problem exists in the Missouri gaming industry -- the gaming product is not competitive with our neighboring states This will create negative economic results and lower tax revenues
Due to navigational safety constraints most Missouri riverboats do not cruise It has been suggested by gaming analyst and by legislation filed in prior years that the elimination of the boarding time restrictions will help Missouri gaming operators economically and be more consumer friendly The commission believes that the current boarding time restrictions are detrimental to the consumer and make little sense since the riverboats are not leaving the dock They are an artificial barrier to entry and participation Yet the boarding times are essential to enforcing the loss limit A change in the statutes which
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eliminates the boarding times but maintains the loss limit would make the enforcement of the loss limit impossible
Findings
Current Missouri statutes are not competitive with our adjoining states Consequently Missouri is at a competitive disadvantage Repealing the loss limit would make the Missouri operators more competitive Without this change the Missouri gaming industry will continue to be at a competitive disadvantage and over time will decline rather than prosper
Conclusioll
Section 313837 RSMo requires the commission to report annually to the general assembly on the effects ofthe loss limit on the competitiveness of the gaming industry in Missouri The findings above are intended to satisfy this statutory mandate The enactment of any changes in policy as a result of these findings are obviously the purview of the General Assembly and the Governor
Missouri Gaming Commission 1996Annual Report - Page 6
Effect of Tax Rate on Competitiveness
The Missouri tax rate currently mirrors that of its principle competitor the State of Illinois The MissourilIlIinois tax rate consists of a 20 base tax on adjusted gross receipts (AGR) In Missouri 10 of that tax (or 2 of AGR) is a local tax imposed by state statute The funds collected from this local tax are allocated to the home dock city or county fur services necessary for the safety of the public visiting the excursion gambling boat The remaining tax on AGR (18 of gross receipts) is placed in the Gaming Proceeds for Education Fund and may be spent only for public elementary secondary and higher education
Iowa has a graduated tax tbat caps out at 20 for adjusted gross receipts over $3 million Because the graduated rate reaches its cap at the relatively low ceiling 0pound$3 million Iowas effective tax rate is not significantly
The state of Kansas has recently allowed casinos operated by native American Indians These casinos are not taxed
For your future reference a table is contained in Appendix B setting forth the tax rate in each gaming jurisdiction and the regulatory restrictions that are imposed The chart below is a generalization of the tax rates in the various gaming jurisdictions Because of the subtleties of each states tax law it is difficult to precisely chart the rates For a defmitive explanation of the tax rates refer to the aforementioned chart in Appendix B
The Commission does not feel that the 20010 tax rate currently places our licensees at a competitive disadvantage The commission will continue to monitor the performance of all licensees and report developments as they occur
different from that of Missouri and Illinois
Licensees are also responsible for a $2 admission fee for each person who participates in a gaming excursion One dollar of this fee is remitted to the home dock city or county The remaining dollar is used to fund the regulatory activities of the Commission No general revenue is used for any activity of the Commission In addition to the $2 admission fee the gaming boat is billed monthly for the full cost of the enforcement agents assigned to the boat Either through fees or direct billing the gaming operators pay for the full cost of their own regulation
The State of Mississippi assesses a tax of 12 on AGR Unlike Illinois who is limited to licensing 10 gaming operations Mississippi has not limited the number of casinos licensed but has licensed all applicants that have been found suitable The Missouri law does not specifically limit the number of licenses that may be issued but places this responsibility in the hands of the Commission through a best interests of Missouri standard
Comparison of Gaming Tax Rates TaxonAGR
25
20 m ma )(
15 IImTaxRaeJ ~ 10
5
0 NV NJ LA
----------------------------------
MS IL IN IA MO CO so State
Missouri Gamilg Commission 1996Annual Report - Page 7
Missouri Gaming Commission Contributions to Education
Fiscal Year 1995
Gaming Proceeds for Education $ 5661628204
Bingo Tax Proceeds for Education $ 625370396
FY95 Tax Revenue from Gaming $6286998600
Fiscal Year 1996
Gaming Proceeds for Education $9973032067
Bingo Tax Proceeds for Education $ 468417852
FY 96 Tax Revenue from Gaming $10441449919
Total Tax Revenue from Gaming 516728448519
Does the GamblingMoneYiReallyGoo Fund Education
This may be the question inostfrequently asked ofpublic officials The simple answer is yes it does Pursuant to aconstitution~lamendntent passed by theGeneraIAssemblyasSJk 20 in 1992 andapproved bythe voters in a subsequent general electionmiddotall state tax money derived from the proceeds ofgamblirigisspent on education
The text ofthisconstitutional provision contained inArtiete 1lISection 39(d) reads as follows
All state revenues derived from the conduct ofaUgaming activities as are now or hereafter authorized by thiscomtitution orbyJaw unless otherwise provided bylaw on the ~ffectivedateofthissectionshallbemiddot appropriated beginoingJuly 1193solely for the pl1blic instittitions of elementary secondary and higheredueatioll and shaH~ot be included within the defmitionoftotal staterevenues in sectioid 7ofarticle X of this constitution
The tax revenues derivedfimnthe proceeds ofgambling foifiscalyeart998 are estimated to be $155 millionmiddot In ~d~itionto thegamblingm~neymiddot traditional stategeneralrevelluefundingfor publicschoo~ bas Uicreased every year since riverboatgillllblingwasenacted Thetotalstatebudget for educationwhichrepresents approximately 50of the average local school budget is $2965 billion Theg~~lIDgnlOney was designedtoslipplel1lent not replace the primatySufCeS ofpqb lie school fuDding[befunds derived from gambling have be~nusedfortheOiltstandingSchools TtilStFundthemiddotmiddot SchoolDistrict Bond Fund fotmainteniuiceandcapital exp~nclilures for public colleges and universities and to supplcentmenttheschool foundlltionmiddot formula
Missouri Gaming Commission 1996 Annual Report - Page 8
middot Where Does All the middot Gaming Tox Money Go
Orgallizationai Structure OFFICE OF THE EXECUTIVE DIRECTOR
Thomas J Irwin was named Executive Director by the Commission on October 21 1993 Mr Irwin came to the Commission after serving 3 years as Executive Assistant to St Louis County Executive Buzz Westfall Mr Irwin is a graduate ofHarvard University where he earned his masters degree from the Kennedy School ofGovernment He has served as the Chief Budget Officer for the Boston Police Department and was the Executive Assistant for Intergovernmental Affairs for St Louis mayor Vince Schoemehl from 1982 to
1988 Mr Irwin is a veteran of the United States Marine Corps having served
in Vietnam in 1968
i i Mr Irwin is responsible for the day-to-day operations of the
Commission He supervises all staff activities and reports to the Commission Among the staff positions reporting to the Director is Public Information
i K Officer Harold Bailey Mr Bailey is responsible for organizing and
distributing all public documents and reports
I In addition there are six primary functions of the Commission that
it have been divided into sections that report directly to Mr Irwin including
Administration Audit Bingo Corporate Securities Enforcement amp
t ~
Investigations and Legal amp Legislative Affairs
I ADMINISTRA110N
The administration section headed by Deputy Director Deborah A Ferguson provides a range of administrative financial and technical services to
help the Commission accomplish its goals The administrative services can be divided into the following functions accounts payable accounts receivable purchasing data processing budget facility leasing and human resources Accomplishments of the administration section would not have come to pass without the assistance ofChiefAccountant Denny Hodges Persomlel Officer Vicki Glenn Records Administrator Michael Shelhnan and Data Processing Manager John Bluma The administration staff benefited from the addition ofTen a Smith Diane Riddle and Mike Brizendine
The administration section continues to be a focal point of activity with the continued growth of the gaming industry l1te highlight of this past year was the relocation of the Jefferson City office Plaooing and design for the Jefferson City office began in 1995 and culminated with the move in September 1996 Highlights of the new building include a hearing room to conduct Commission meetings adequate file space to house the Commission
records that will be relocated from the St Louis office and the merging of the Bingo and Gaming staff into one facility to enhance coordination ofdaily activities
More specifically the duties of this section are as follows
~ Billing licensees for the processing and aoouallicenses issued to Level One and level Two Occupational employees that work for each riverboat To date there are approximately 9000 licensed employees
~ Billing licensed operators for the full cost of the enforcement agents assigned to each boat
~ Maintaining all Commission fmancial and personnel records which includes the monthly reconciliation of the Gaming Commission fund balance and processing aU payments made by the Commission
gt Preparation and implementation of the Commissions annual budget to ensure compliance with legislative intent
~ Handling all personnel matters and employee training and establishing and implementing written office policies for Commission staff
gt Preparation of fiscal notes to provide estimates to proposed legislation
Data Processiltg
The Data Processing section headed by John Blunm had a busy year in 1996 which included major systems developments as well as the daunting task of moving the Jefferson City office to a new location Some ofthe accomplishments of this important section include
~ Opening new commission offices for its agents at licensed premises
~ Moving the Jefferson City offices of the Riverboat Gaming and the Bingo workgroups to the new location This involved moving all computer workstations servers communications processors and printers to the new
Missouri Gaming Commission 1996 Annual Report - Page 10
building The two separate networks were consolidated into one large network that provides email between all members ofthe two sections for the fIrSt time and allows sharing of peripheral equipment such as laser printers
gt Final testing and implementation ofa billing system for enforcement billing to reimburse the state for expenses related to regulating the casino gaming industry
~ Automation ofannual MULES checks required of the 9000 plus gaming occupational license holders eliminating hundreds ofhours ofdata entry time
gt Upgrade of the physical inventory system to provide more complete reports and to track add-on costs to major inventory items
gt Design and development ofan occupational license history tracking system to provide a complete picture of license payments changes in license status duplicate badges issued and changes in employment status
gt Enhancing existing systems to meet new statutes and rules and regulations
AUDET
The audit section is responsible for the critical function ofensuring that the operators pay their taxes promptly and accurately This section headed by Jolm Davis former Internal Revenue Service Manager developed the Commissions tax remittal system that allows the Commission to capture tax remittance data on a daily basis The operators returns are audited by compliance audit siaffheaded up by senior accountant Kara Hardaway
The audit section also develops audit programs reviews and approves each boats system ofintemal controls conducts on-site performance audits reviews the quarterly CPA audits ofAdjusted Gross Receipts Tax and Admission Tax and reviews all internal audit reports prepared by the casinos internal audit staff
During 1996 the audit section revised Minimum Internal Control Standards that all operators must meet These standards were developed by the
audit staff after a lengthy review process that involved input from the IRS enforcement officers and industry experts
The audit section also implemented a system for tracking and depositing all non-tax revenue received from applicants such as application fees from applicants and reimbursements for Commission services
A summary ofsome ofthe audit sections programs and objectives is contained on page 22
BINGO
The Bingo Division is comprised ofthree separate sections which include the Administration Licensing Audit and Enforcement The Bingo Division Supervisor is Ron Pleus The Audit Section Supervisor is Randall Cahill and the Enforcement Section Supervisor is Sergeant Dwight Franklin The bingo statutes have been revised significantly in recent years requiring many administrative changes to occur within the Division Among the more daunting projects were the establishment ofa new licensing category for hall providers and the implementation ofa new supplier-based tax Specific duties within the three sections of the Bingo Division and the recent statntory changes are briefly outlined below
AdministrativeILicensiog Section - This section is responsible for the processing ofall correspondence and the licensing and maintenance ofover 1500 operator licensees which include all regular and special event bingo operators licenses and 200 hall providers annually This section deposits and records an tax and license receipts received on a daily basis This unit maintains a data base of over 31000 records ofindividuals that are involved in the management conduct andor operation ofbingo games and 3000 records of individuals involved as owners and officers of licensed Hall Providers Currently this staff consist ofthree employees Jane Bax Pam Murphy and Tina Freese In conjunction with the data processing staff the administrative section has developed an automated renewal application system which became fully operational January 1996 This system simplifies the renewal process for the licensee and eliminates wasted steps and duplicate information The system has proven to be a tremendous time saver for the not-for-profit volunteer organizations who are required to file renewals and also helps to reduce the staffmg cost and other administrative cost for the Division
Missouri Gaming Commissioll 1996 Allnual Report ~ Page 11
Audit Section - This section is responsible for the timely audit of all Bingo Product Manufacturers and Suppliers and assisting the Enforcement Section with oil-site inspections of bingo operators The audit staff has developed a comprehensive Manufacturer and Supplier audit procedure manual and has developed procedures for the inspection ofbingo operators The procedures for the inspection of bingo operators are used by both the Enforcement and Audit Staffs The audit section has audited all of the licensed Manufacturers and Suppliers during fiscal year 1996 These audits resulted in over $32000000 in unreported taxes and penalties The auditors also assisted enforcement with inspections and investigations of unlicensed suppliers and operators The section conducts on-site inspections of formerly licensed suppliers to determine ifthe products in inventory were being disposed of in accordance with the statutes The audit staff also assists the administrative staff in auditing the operators quarterly repom
Enforeement Section - This section is headed by Sgt Dwight Franklin a 17 year veteran ofthe Missouri Highway Patrol Sgt Franklin has six (6) officers assigned to the enforcement section Their duties include background investigations of all Manufacturers and Suppliers to include all the key personnel in those companies These investigations include criminal checks fmancial checks past employment history and all litigation involving the applicant In addition the enforcement section is responsible for investigating complaints on the licensed bingo organizations The complaints range from minor rule violations to thefts of large sums of money Complaints are received on a daily basis and are investigated on the basis of severity location and available manpower An additional duty of the Enforcement Section is to complete background investigations on all new potential employees of the Gaming Commission
CORPORATE SECURITIES AND FINANCE
The Commission has established a Section of Corporate Securities and Finance to address the challenge ofregulating the complex fmancial corporate structuring and contractual transactions involving publicly traded and privately held gaming companies This section is comprised of staff trained in legal accounting and business matters to perform examinations of these transactions
The suitability issues examined by the Corporate Securities and Finance Section include complex fmancial and legal suitability issues such as fmancial soundness corporate control legal compliance and procedural licensing issues
The sections examinations are coordinated closely with the Enforcement Division for background investigations and disciplinary matters
Typical transactions that are examined by the section include mergers and acquisitions public debt and equity issuances and private financings such as bank loans and credit facilities The goal of this new section is to provide the Commission with more thorough and sophisticated investigations and analysis of the suitability ofgaming companies and with a uniform system for providing this analysis on corporate securities and fmance issues Through this section the Commission hopes to identifY suitability problems ofapplicants and licensees earlier and more efficiently and to identifY plan for and possibly even avoid potential business closures of licensees due to fmandal matters
The Corporate Securities and Finance Section is headed by the Commissions General Counsel Greg Orner who reports directly to the Executive Director on corporate securities and finance matters The section also includes a Chief Financial Analyst position to be filled soon which will oversee the work ofthe fmancial staff examining the corporate secwities and fmance transactions
The Conunissions Financial Manager Pam Brown haS handled the fmandal analysis of the reported transactions up to now and will continue to perfonn many of the more complex transaction examinations and oversee the work of an accountant Pam Wheelis and a fmancial analyst (planned to be added next year) who are also assigned to the section
ENFORCEMENT
Enforcement for the Missouri Gaming Commission is provided by officers of the Missouri State Highway Patrol and agents of the Internal Revenue Service by way of Memorandums ofUnderstanding which set forth the responsibilities ofeach entity
The enforcement section is headed by Mel Fisher former Superintendent of the Highway Patrol The Gaming Division ofthe Highway Patrol is headed by Captain Dwight Hartung There are seventy-seven officers assigned to the Gaming Division and an additional six officers assigned to the Bingo Enforcement Unit
Some of the advantages ofusing Highway Patrol Officers as gaming agents include
JtfisSOUli Gaming Commission 1996 Annual Report - Page 12
the staff assigned are trained specialists in law enforcement and investigations thus saving the Commission the time effort and expense of recruitment and training
because the agents are licensed law enforcement officers they command immediate respect when interacting with licensees and customers aboard a riverboat as well as when they are in a foreign jurisdiction conducting an investigation
~ the Commission feels that it is important to rotate enforcement staff aboard the various boats this process is much easier with seasoned law enforcement officers who are used to being rotated between assignments as well as in and out of the gaming division
gt provides the ability to access sensitive law enforcement information from other jurisdictions
gt their experience in conducting investigations and handling emergency situations has proven invaluable
The Commissions background investigation units consist of three Highway Patrol Officers and one IRS agent The background investigations conducted by the Missouri Gaming Commission are thorough and take approximately four months to complete if no unusual complications or delays emerge The Commission not only investigates the finances and activities of the company and all its key people but traces the source ofall their funds to ensure that no criminal elements are funding the operation from behind the scene An outline that provides a sketch of a typical background investigation is contained on page 20
LEGAL amp LEGISLATIVE AFFAIRS
The legal amp legislative affairs section is responsible for all legal matters presented to the commission prior to litigation Any litigation involving the commission is handled by the Attorney Generals office In addition this section which is headed by Deputy Director Kevin Mullally develops and drafts legislation endorsed by the commission as well as all rules and regulations Moreover the legal section manages an administrative appeals docket where Mullally serves as Hearing Officer
Greg Orner serves as the commissions general coWlSel and works closely with the enforcement staff reviewing incident reports investigative issues and possible disciplinary actions In addition Mr Omer heads the Corporate Securities section
Some of tbe otber responsibilities of the legal section include
~ Drafting all resolutions for all commission actions and
gt preparing disciplinary complaints and denial orders for proposed action against licensees and
gt conducting quasi-legislative hearings on issues such as continuous docking and boat design and
gt providing legal research services and
gt organizing and maintaining records ofall official commission actions and commission policies and
gt handling inquiries from legislators constituents and other state regulatory agencies
The commissions legal staff is supported by paralegal Heather Grefrath and legal secretary Susan Sundermeyer This support staff is critical to daily operations ofthe legal section and is particularly valuable in the sections role in preparing and managing the rules and regulations all documents necessary for commission meetings and all documents declaring commission policy
In 1997 the legal section will be augmented with the addition ofstaff attorney Robert Little
PENDING LITIGATION
The Missouri Gaming commission denied one occupational license in 1994 thirteen occupational licenses in 1995 and thirty-five occupational licenses in 1996 Each aplicant is presumed WlSuitable and has the burden of proof to prove his or her suitability to the Conunssion An individual may request a hearing to attempt to prove suitability to the Commission by serving
Missouri Gaming Commission 1996Annual Reporl- Page 13
such a request on the commissions Executive Director The following is a list of pending litigation
Petitioner Venue
Bingo Systems amp Supply AHC Cape Girardeau Elks Lodge 639 AHC Cape Girardeau VFW Post 3838 AHC Edwin Pete Rhodes AHC Ideal Bingo Supplies Inc AHC Mary Cracchiolo AHC Maureen L Scott AHC Meramec-Amold Eagles Auxiliary AHC Myron B Carter Sr AHC Pan-Education Institute AHC Raymond J Drury AHC Raytown Women of Today AHC Sandra Termini AHC Stanley L Turner AHC Missouri Gaming Co ~Disc Action MGC Harrahs -Disciplinary Action MGC Boyd Kansas City Inc -Disc Action MGC Jeffery Koester -Denied License MGC Gary Franklin -Denied License MGC Mark Zwolle -Disciplinary Action MGC Anthony Civella -Exclusion MGC Peter Simone -Exclusion MGC Yolanda Nettles MGC Tracy Anderson MGC Carrie Gentry MGC Jimmie B Carsey MGC Cape Girardeau Elks amp VFW Circuit Court ofCape Girardeau County MGC v Veterans Commission
st Louis Public Schools Missouri Supreme Court W Todd Akin v MGC Missouri Supreme Court William D Cmmnisano Jr Missouri Court ofAppeals-Western District Pen-Yan Investment Inc Missouri Court ofAppeals-Western District
SUMMARY OF PENDING LITIGATION
There are fourteen bingo cases pending in the Administrative Hearing Commission
There are three disciplinary cases at the Commission level against gaming licensees pending the outcome ofPen-Yon Investment Inc v Boyd Kansas City Inc and MGC
Pen-Yon Investment Inc v Boyd Kansas City Inc MGC is pending in the Missouri Court ofAppeals Western District regarding disciplinary action taken against Boyd for associating in business affairs with a person who has a felony police record The Commission imposed a fine against Boyd and prohibited Boyd from collecting or distributing any funds from the machines under its service agreement with Pen-Yan
MGC v Missouri Veterans Commission St Louis Public Schools is pending in the Missouri Supreme Court regarding funds received from fmes imposed by the Commission
In W Todd Akin et 01 v MGC the Circuit Court ofCole County ruled in favor of the commission on summary judgment The suit challenges the Commissions authority to grant or deny Harrahs Maryland Heights Corp and Players Maryland Heights LP a license for a continuously docked excursion gambling boat within a man-made basin filled by water from the Mississippi River The petitioners have appealed and the matter is now before the Missouri Supreme Court
Cape Girardeau Elks Lodge et aI v MGC is pending in the Circuit Court of Cape Girardeau County regarding the Commissions decision to suspend the Cape Girardeau Elks Lodge bingo license
In the Matler oWilliam D Cammisano Jr there is an appeal pending in the Missouri Court ofAppeals Western District regarding the Commissions decision to place Mr Cammisano on its List of Excluded Persons
MISSOURI GAMING COMMISSIONS EXCLUSION LIST
The Missouri Gaming Commissionplaced two individuals in 1994 two individuals in 1995 and two individuals in 1996 on the commissions Exclusion List Placement of these individuals on the Exclusion List has been based on prior convictions
As a result of placement on the Exclusion List each individual shall not be permitted eoby into any portion of a riverboat gaming operation within the state ofMissouri and shall be ejected ifdiscovered on such premises Furthermore Excluded Persons shall be prohibited from contact of any kind with Missouri riverboat gaming operations Persons placed on the Listmay file a written petition with the Commission to request a hearing to have their name
JlrJissOIlri Gaming Commission 1996 Annual Report - Page 14
removed from the Exclusion List Currentlyone individual has appealed to the Western District of Missouri and two otbers are pending hearings by the Missouri Gaming Commission
MISSOURI GAMING COMMISSIONS DISCIPLINARY ACTIONS AGAINSTOCCUPATIONAL LICENSEES
The Missouri Gaming Commission has taken disciplinary action against twenty-eight occupational licensees as of September 30 1996 Preliminary
Orders for Disciplinary Action set forth statements of fact that support the proposed disciplinary action and the regulatory and statutory sections involved Individuals may request a hearing by serving such a request on the Commissions Executive Director Currently four individuals have sought hearings before the Commission one ofwhich is stm pending
Occupational License Denials 1994-1996
40
l 30
lt0 c Q)
0 lt5 20 i-Q) 0 E ~ 10
o Year Licenses 1994 1995 1996 IiiI Licenses Denials 1 13 35
Voluntary Exclusions On December 30 1996 after six months of research and consultation the
commission established a unique program to combat problem gambling The List of Disassociated Persons is the result of many months ofconsultation with treatment professionals that help problem gamblers The program allows problem gamblers to exclude themselves from Missouri riverboat casinos under the threat ofarrest for trespassing
In exchange for agreeing not to patronize Missouri riverboat casinos the problem gambler is removed from all casino mailing lists and direct marketing promotions In addition the operators are required to deny persons on the List check cashing privileges and must take away their VIP or players club card
Treatment professionals have advised the commission that the only way for a problem gambler to get help is to admit that heshe has a problem and to accept personal responsibility for that problem by seeking treatment
The Disassociated Persons program is a valuable tool in addressing problem gambling because it requires the individual to admit to having a gambling problem to agree to seek treatment and stay away from gambling casinos Furthermore it includes severe consequences if the problem gambler succumbs to the temptation to gamble Moreover it offers some protection to the problem gambler from the marketing promotions that encourage people to visit the casino properties
The program operates in the following manner
~ The problem gambler must obtain an application for placement on the List ofDisassociated Persons from the commission
~ the application contains various information about the individual an admission that the person is a problem gambler and agrees to stay off Missouri riverboats and seek treatment an authorization to release this information to riverboat operators as well as a Waiver releasing the commission and the licensee from any liability associated with enforcing the rules of the program
~ the application must be personally presented to a commission agent at which time the information is verified and the rules of the program are explained
~ the application is a closed record and its contents may only be disclosed to necessary commission and riverboat personnel
~ the commission considers all applications in closed session
~ once a person is placed on the List heshe cannot petition for removal After consulting with treatment professionals the commission concluded that problem gambling requires lifetime treatment and therefore there is no procedure for removal from the List
Missouri is the frrst jurisdiction in the world to propose a program such as this We will continue to monitor and refme the program and look forward to reporting to you on its impact in next years annual report
ft-Iissouri Gaming CommissiOil 1996 Annual Report - Page 16
Brief Timeline of Riverboat Gaming in Missouri ~ May 13 1991 - General Assembly passes House Bill 149 which authorized
referendum to be submitted to the voters in the November 1992 election to determine whether the State Tourism Commission shall have the power to issue riverboat gambling licenses
gt November 31992 - Missouri voters pass referendum allowing riverboat gaming with a majority ofnearly 63
gt January 1993 - Governor Carnahan announces intentions to push legislation creating an independent Gaming Commission to oversee riverboat gambling
April 29 1993 -- SBs 10 amp 11 creating the Missouri Gaming Commission are signed into law by Governor Carnahan and five Commissioners are appointed Robert Wolfson Chairman Robert Clayton William Quinn Dr Jenice Stewart and Avis Tucker
gt April 30 1993 -- Troy Harris et al v The Missouri Gaming Commission amended petition is filed The petition challenges the constitutionality of Senate Bills 10 amp II
gt- May 17 1993 -- The Missouri Gaming Commission holds its first meeting
~ September 1 1993 -- Proposed Rules and EmergencY Rules are adopted
gt September 20 1993 - 19 riverboat gaming license applications are filed with the commission
gt September 20 1993 - Clarence E Mel Fisher hired as Deputy Director for Enforcement
gt September 24 1993 - Commission contracts with the Internal Revenue Service to perform fmancial investigations for the commission Four IRS agents are assigned to the commission
~ September 28 1993 - Commissions enters into and inter-agency agreement with the Missouri State Highway Patrol to provide enforcement services for the commission
~ October I 1993 - Debbie Ferguson joins the commission as Deputy Director for Administration
November 3 1993 - Commission hires Tom Irwin as Executive Director and Kevin Mullally as Deputy Director for Legal amp Legislative Affairs
November 30 1993 -- Commission announces that it will begin background investigations on the following companies President Riverboat Casino-Missouri St Charles Riverfront Station Inc S1 Joseph Riverboat Partners The Missouri Gaming Company GDC (Supplier) IGT (Supplier) Casino Tokens (Supplier) Paul-Son Dice amp Card Company (Supplier)
gt December 22 1993 - Governor Carnahan signs Executive Order 93-50 designating the enforcement section ofthe Missouri Gaming Commission as a criminal justice agency
1994
gt January 25 1994 -- Missouri Supreme Court in Troy Harris v Missouri Gaming Commission strikes down games of chance including slot machines The court ruled that the Commission did have the authority to issue licenses to riverboat where games ofskill are played Specifically mentioned as games ofskill are poker and blackjack The Court remanded six games to lower court for determination as to whether they are games of skill or chance baccarat craps roulette wheel klondike table faro layout and video games ofchance
~ February 1 1994 -- Rules and Regnlations become effective
February 7 1994 -- Legislature passes resolution to place constitutional amendment on the ballot which would allow the legislature to approve games of chance (slot machines) on riverboats and floating facilities on the Missouri and Mississippi Rivers
gt- April 5 1994 -- Voters defeat constitutional amendment allowing games of chance (slot machines) by an unofficial count of 1263 votes
~ April 29 1994 - Finding of Preliminary Suitability issued to President Riverboat Casino S1 Charles Riverfront Station St Joseph Riverboat Partners and The Missouri Gaming Company
Missouri Gaming Commission 1996 AnnualReport - Page 17
Brief Timeline of Riverboat Gaming in Missouri ~ May 20 1994 -- Governor signs into law SB 740 which defmes games of
chance and enacts more stringent ethics provisions The bill also allows the commission to license a barge in an artificial basin as an excursion gambling boat if it can be demonstrated that safely concerns prevent an operator from cruising from that location
~ May 27 1994 - Commission authorizes as games of skin the following Blackjack Caribbean Stud Poker Poker Double Down Stud Poker Pia Gow Poker Poker Texas Hold Em the video representations ofthese games and Craps
gt May 27 1994 -- Commission authorizes President Riverboat Casino-Missouri to operate the Admiral as a continuously docked excursion gambling boat because cruising would cause danger to the boats passengers
gt May 27 1994 -- Gaming Commission issues first two excursion gambling boat licenses to President Riverboat Casino in st Louis and St Charles Riverfront Station in st Charles
gt May 27 1994 -- Initiative petition tbat would allow voters to approve games ofchance is submitted to the Secretary of State for approval of the form ofthe petition
~ June 6 1994 -- Secretary ofState notifies referendum petitioners that the Attorney General has approved the form of their petition The Secretary of State prepared the following petition title that was approved by the Attorney General
Shall the General Assembly be authorized to permit only upon the Mississippi River and the Missouri River lotteries gift enterprises and games ofchance to be conducted on excursion gambling boats and floating facilities
gt June 9 1994 -- Commission prioritizes Aztar Missouri Corporation Boyd Kansas City Inc and Harrahs North Kansas City as companies to be investigated for licensure pursuant to 11 CSR 45-4060
gt June 22 1994 -- Gaming Commission issues licenses to St Joseph Riverboat Partners in St Joseph and The Missouri Gaming Company in Riverside
~ September 20 1994 -- Commission issues a fmding ofpreliminary suitability to Harrahs North Kansas City Corporation
gt September 20 1994 -- Commission authorizes Harrahs North Kansas City Corporation and st Charles Riverfront Stationl to operate excursion gamblillg boats as continuously docked vessels In both cases the commission found that operating a cruising vessel from the proposed site would cause danger to the boats passengers and the project will generate permanent job creation and land-based development
gt September 22 1994 -- Harrahs North Kansas City Corporation is issued an excursion gambling boat license
gt September 28 1994 - Public hearing regarding Capitol Queen and Casino Jncs application for an excursion gambling boat license results in the commission denying CQCs license and prohibiting them from reapplying for two years
gt October 7 1994 - Commission places William D Cammisano Jr and John Termini on its list of excluded persons
gt November 8 1994 -- Voters approve games ofchance
~ December 9 1994 - Games ofchance are allowed on riverboats
gt December 27 1994 - St Charles Riverfront Station is issued a license to operate the St Charles II as an excursion gambling boat This marks the fIrSt time the commission has licensed a second excursion gambling boat for a single development
The approval was for St Charles Riverfront Stations second boat The flTSt boat continued to cruise until April 16 1996
Missouri Gaming Commission 1996 Annual Report - Page 18
Brief Timeline of Riverboat Gaming in Missouri 1995
)gt- February 22 1995 -- Commission announces it will begin background investigation on Hilton Kansas City Corporation for an excursion gambling boat license
~ March 30 1995 - State Auditor releases final audit report of the Missouri Gaming Commission No major deficiencies are noted
~ April 20 1995 - Commission repays $3 million start-up loan to state general revenue fund
)gt- April 25 1995 - Commission approves continuous docking petitions for Boyd Kansas City Inc and Hilton Kansas City Corporation
~ April 25 1995 -- The commission issues a finding ofpreliminary suitability to Aztar Missouri Gaming Corporation
~ April 26 1995 -- The commission issues an excursion gambling boat license to Aztar Missouri Gaming Corporation in Caruthersville Missouri
)gt- May 24 1995 - The commission announces it will begin background investigations on the following companies Harrahs Maryland Heights Corporation Kansas City Station Inc Players Maryland Heights Inc
gt August 28 1995 - Pursuant to House Bill 574 the duties of the Missouri Horse Racing Commission are transferred to the Gaming Commission
~ September 12 1995 - The commission issues a fmding of preliminary suitability to Boyd Kansas City Inc
September 13 1995 - The commission grants the petition ofHarrahs Maryland Heights Corporation and Players Maryland Heights Inc to operate continuously docked excursion gambling boats at their joint venture in Maryland Heights
)gt- September 13 1995 - The commission issues an excursion gambling boat license to Boyd Kansas City Inc
)gtshy November 16 1995 shy The commission fines the following companies for associating with either socially or in business affairs persons with felony police records or persons with a notorious or unsavory reputation Boyd Kansas City Inc Harrahs North Kansas City Corporation The Missouri Gaming Company
1996
)gtshy February 15 1996 - The commission grants continuous docking rights to Aztar Missouri Gaming Corporation for a second boat in Caruthersville Harrahs North Kansas City for a second boat and Kansas City Station Corporation for two boats in Kansas City
~ April 16 1996 - The commission grants continuous docking rights to Argosy in Riverside Missouri S1 Joseph Riverboat Partners and 81 Charles Riverfront Station
~ May 15 1996 - The commission issues a license to Harrahs North Kansas City for the Lucky Star This is the second boat at the Harrahs North Kansas City mcility Included in the project is a 200-room hotel expanded parking and meeting space
~ June 19 1996 -- The commission places William Canunisano Jr on Exclusion List
~ June 27 1996 - The commission places Peter Simone and Anthony T Civella on Exclusion List
August 28 1996 - The commission takes disciplinary action against Boyd Kansas City Inc for periodic failure to take and report turnstile readings
~ October II 1996 - The commission issues a finding of prel iminary suitability to Hilton Kansas City Corporation and Flamingo Hilton Riverboat Casino LoP
October 18 1996 - TIle commission issues a Class B riverboat gambling license 10 HUlon KlIlIStIS City Corporation and a CltlSs A riverboat gambling license 10 Flamingo Hillon Riverboat CtlSino LP
Missouri Gaming Commission 1996Annual Report - Page 19
Outline of a Background Investigation
Review Application fin Completeneiis
~ Establish number ofkey people
~ Check disclosure forms for completeness
gt Check tax release forms
City Selection Process
~ Contact city to determine how the gaming operator was selected
gt Interview Mayor and City Council members
~ Ifa steering committee was used interview members of that committee
Determine ifany city officials own stock in the selected gaming company
~ Obtain minutes ofcouncil meetings that pertain to riverboat issues (a)selection (b) resolution and (c) ordinance
gt Contact city attorney who handled negotiations with gaming company and obtain correspondence between city and gaming company
~ Contact City Economic Development Director (if applicable)
Docksite
gt- Land selected for gaming operation
J Who was it purchased from (how long have they owned the property) J Price (copy ofcontract)J Copy of plat map and legal description J Determine ifany ofcity officials or selection committee members have
ownership interest in docksite
gt Corps ofEngineers Permit
J Status
J Any concerns by Corps J Wetlands involved
~ Contact DNR for any known concerns in area
gt Check with city for any known dwnpsites with possible hazardous material
gt Developmental agreement between city and gaming operator (obtain copy from city)
gt Detennine if development is feasible
J Is support facility land based or floating J Projected nwnber ofjobs economic aid to area J Traffic flow to area - what improvements are needed - who will pay
for improvements
Riverboat
gt Locate boat and obtain all infonnation about boat (cruise schedule liability carrier)
gt Establish design ofriverboat
gt Determine emergency medical plan for boat
gt Determine ifCoast Guard and other safety requirements have been met
Gaming Operator (Public Corporation Partnership Private Company)
gt Establish contact person with operator
J Determine attorney of record for gaming company J Any missing items from application advise contact person
gt Establish home office (Financial Headquarters)
J Determine a good date and location where all key people can be contacted for a personal interview
J Where can financial record be located
Missouri Gaming Commission 1996Annual Report - Page 20
~
Outline of a Background Investigation
J Breakdown ofmanagement (corporate Board ofDirectors major stockholders)
J Establish flow chart of key people and companies owned by gaming operator
~ Investigation ofKey People will include but not be limited to the following
J Check previous employment work records J Check state local and federal intelligence files J Check for other gaming licenses ifapplicable (check with appropriate
regulators)J Check state federal and local courts for any civil litigation J Check for any arrest record J Check personal and business credit J Check state and local tax status IRS will handle federal taxes
gt Other locations ofgaming operations (currently operating and pending locations)
J Contact gaming regulators for respective locations J Travel to sites to view operations
Establish a file for all key people investigated with summaries establish a file for financial records with summary offinancial viability ofcompany and ability to complete obligations to the city and State ofMissouri Establish a file for other locations of licensure along with summary
Associated Investigations
gt All allegations of Any nature must be investigated and a file established with a written summary
~ Associated investigations must be done in a complete and thorough manner and all reports written accurately
gt Upon completion ofall investigations complete reports and summaries a separate press releasable summary must be written This summary must be approved by Gaming Commission legal staff
Missouri Gaming Commission 1996 Annual Report - Page 21
------------
--------
-----
------
---
---------
----------
Missouri Gaming Commission Compliance Audit Objectives for Licensees
ObjectiveAudit Area ~~~~~~~~~
To ensure accuracy of ticket and turnstile counts reported to MGC including compsIVlPs stayovers and promotions
Table Games
Ticketffurnstile
To ensure accuracy of AGR for table games reported to MGC
Electronic Games To ensure accuracy of AGR for electronic games reported to MGC
Cage Accowltability To ensure accuracy ofcage accountability forms and compliance with internal controls and tax reporting regulations
Observations Cage Main Bank Pit Area Slot Area Turnstile Ticketing
PurchaselRedemptions
$500 Loss Limit
Stayover Procedures
To determine that cashiers are complying with internal controls for chips tokens gaming scrip and cash
To determine compliance with MO statutes and internal controls
To determine compliance with MGC regulations and internal controls
To ensure that manual jackpot payouts are properly handled and the required tax fomIS are completed Manual Jackpot Payouts
To ensure that hopper fills are properly handled and comply with internal controls Hopper Fills
To ensure that table fills are properly handled and comply with internal cootrols Table Fills
To ensure that table credits are properly handled and comply with internal controls Table Credits
To ensure that tracking procedures comply with internal controls and the currency transactions are properly completed Patron TrackingCurrency Transaction Reporting
Imprest Bank Balancing To ensure that proper balancing and accountability is performed during a shift change
Coin Vault To ensure proper maintenance of coin chip and token inventory
Satellite CageSSlot Booths To ensure compliance with internal controls and consistency with main cage procedures
TipsGratuities To ensure compliance with MGC regulations and internal controls
Cage AccessSecurity To ensure compliance with internal controls
Turnstile To ensure accuracy of turnstile count for admissions tax calculation
Ticketing To ensure comp Hance with internal controls and proper handling of stubs voids and issuance
MiscellaneousOther
Surveillance Tapes To review activity for hard soft and tip counts and drops to verify compliance with internal controls
Workpaper Preparation and To establish standardized procedures for MGC audit workpapers and audit reports Audit Reports
-
Missouri Gaming Commission 1996 AnnualReport - Page 22
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Audit Area
Monthly Financial Statement Review
Engagement Letters
Objective --shy
To perform a preliminary review ofmonthly financial statement information for proper completion of fmandal statement templates verification ofadjusted gross receipts to MGC reports and to detect any unusual items which justifY further review when conducting on-site audit
To give advance notification to each boat of the date and scope ofaudit being performed
Financial Statement Verification To determine consistency ofmonthly financial statement information submitted to MGC with boats general ledger system
Balance Sheet Accounts
CashCash Reserve Balance
Cash Receipts
Cash Disbursements
shy -- shy
To determine the existence consistency and fair presentation of the cash balance on the monthly fmancial statements
To determine the consistency and filir presentation of the cash balance on the monthly financial statements and the source of large cash receipts other than gaming revenue
___I
To determine the consistency and fair presentation of the cash balance on the monthly fmancial statements and to trace the outflow of large cash disbursements
i
I
--
AccountslN Notes Receivable
Accrued Admission and Gaming Tax Liability
Chip and Token Liability
Progressive Jackpot Liability
To determine the consistency and fair presentation of the accounts receivable andor notes receivable balance in the monthly fmancial statements
To determine the consistency and fair presentation of the accrued admissiongaming tax liability balance in the monthly financial statements
To determine the consistency and fair presentation of the chip and token liability balance in the monthly financial statements
To determine the consistency and fair presentation of the progressive jackpot liability balance in the monthly fmancial statements
---shy
Tips and Gratuities (Accrued Liability)
Customer Deposit Liability
Accounts Payable
Income Statement Accounts
Revenne - Table Games
To determine the consistency and fair presentation of the accrued tips and gratuities liability in the monthly fmancial statements
-lt ---- shy
To determine the consistency and fair presentation of the customer deposit liabilities in the monthly fiscal statements To determine the consistency and fair presentation ofaccounts payable balance in the monthly fmancial statements
--shy
To determine the consistency and fair presentation of table games revenue as reported to MGC daily and in the monthly fmandal statements
Revenue - Electronic Games To determine the consistency and fair presentation of electronic games revenue as reported to MGC daily and in the monthly financial statements
Missouri Gaming Commission 1996 Annual Report - Page 23
------------
---------
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Revenue - Admissions To detennine the consistency and fair presentation ofadmissions revenue as reported to MGC daily and in the monthly fmancial statements
Promotional Expense To determine that comps are properly recorded as expenses and not deducted from revenue in accordance with GAAP
Pre-Opening Costs To determine whether certain pre-opening and licensing costs are properly expensed or amortized over future periods in accordance with GAAP
Workpaper Preparation and Audit Reports To establish standardized procedures for MGC audit workpapers and audit reports
AissOllri Gamillg Commission 1996 Anllual Report - Page 24
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AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
c
Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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I IAztar Missouri Corporation
r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
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Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
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$lot Machines 349
The Problem is Clear - How does Missouri Address the Problem
Missouri statutes require the commission to report annually to the Governor and the General Assembly on the competitive state of the gaming industry in Missouri For two years the commission has advised the General Assembly that we believe that there could be a problem with the structure of the gaming industry but that the data is incomplete However we now fmd the data to be clear and compelling A problem exists in the Missouri gaming industry -- the gaming product is not competitive with our neighboring states This will create negative economic results and lower tax revenues
Due to navigational safety constraints most Missouri riverboats do not cruise It has been suggested by gaming analyst and by legislation filed in prior years that the elimination of the boarding time restrictions will help Missouri gaming operators economically and be more consumer friendly The commission believes that the current boarding time restrictions are detrimental to the consumer and make little sense since the riverboats are not leaving the dock They are an artificial barrier to entry and participation Yet the boarding times are essential to enforcing the loss limit A change in the statutes which
3(()
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eliminates the boarding times but maintains the loss limit would make the enforcement of the loss limit impossible
Findings
Current Missouri statutes are not competitive with our adjoining states Consequently Missouri is at a competitive disadvantage Repealing the loss limit would make the Missouri operators more competitive Without this change the Missouri gaming industry will continue to be at a competitive disadvantage and over time will decline rather than prosper
Conclusioll
Section 313837 RSMo requires the commission to report annually to the general assembly on the effects ofthe loss limit on the competitiveness of the gaming industry in Missouri The findings above are intended to satisfy this statutory mandate The enactment of any changes in policy as a result of these findings are obviously the purview of the General Assembly and the Governor
Missouri Gaming Commission 1996Annual Report - Page 6
Effect of Tax Rate on Competitiveness
The Missouri tax rate currently mirrors that of its principle competitor the State of Illinois The MissourilIlIinois tax rate consists of a 20 base tax on adjusted gross receipts (AGR) In Missouri 10 of that tax (or 2 of AGR) is a local tax imposed by state statute The funds collected from this local tax are allocated to the home dock city or county fur services necessary for the safety of the public visiting the excursion gambling boat The remaining tax on AGR (18 of gross receipts) is placed in the Gaming Proceeds for Education Fund and may be spent only for public elementary secondary and higher education
Iowa has a graduated tax tbat caps out at 20 for adjusted gross receipts over $3 million Because the graduated rate reaches its cap at the relatively low ceiling 0pound$3 million Iowas effective tax rate is not significantly
The state of Kansas has recently allowed casinos operated by native American Indians These casinos are not taxed
For your future reference a table is contained in Appendix B setting forth the tax rate in each gaming jurisdiction and the regulatory restrictions that are imposed The chart below is a generalization of the tax rates in the various gaming jurisdictions Because of the subtleties of each states tax law it is difficult to precisely chart the rates For a defmitive explanation of the tax rates refer to the aforementioned chart in Appendix B
The Commission does not feel that the 20010 tax rate currently places our licensees at a competitive disadvantage The commission will continue to monitor the performance of all licensees and report developments as they occur
different from that of Missouri and Illinois
Licensees are also responsible for a $2 admission fee for each person who participates in a gaming excursion One dollar of this fee is remitted to the home dock city or county The remaining dollar is used to fund the regulatory activities of the Commission No general revenue is used for any activity of the Commission In addition to the $2 admission fee the gaming boat is billed monthly for the full cost of the enforcement agents assigned to the boat Either through fees or direct billing the gaming operators pay for the full cost of their own regulation
The State of Mississippi assesses a tax of 12 on AGR Unlike Illinois who is limited to licensing 10 gaming operations Mississippi has not limited the number of casinos licensed but has licensed all applicants that have been found suitable The Missouri law does not specifically limit the number of licenses that may be issued but places this responsibility in the hands of the Commission through a best interests of Missouri standard
Comparison of Gaming Tax Rates TaxonAGR
25
20 m ma )(
15 IImTaxRaeJ ~ 10
5
0 NV NJ LA
----------------------------------
MS IL IN IA MO CO so State
Missouri Gamilg Commission 1996Annual Report - Page 7
Missouri Gaming Commission Contributions to Education
Fiscal Year 1995
Gaming Proceeds for Education $ 5661628204
Bingo Tax Proceeds for Education $ 625370396
FY95 Tax Revenue from Gaming $6286998600
Fiscal Year 1996
Gaming Proceeds for Education $9973032067
Bingo Tax Proceeds for Education $ 468417852
FY 96 Tax Revenue from Gaming $10441449919
Total Tax Revenue from Gaming 516728448519
Does the GamblingMoneYiReallyGoo Fund Education
This may be the question inostfrequently asked ofpublic officials The simple answer is yes it does Pursuant to aconstitution~lamendntent passed by theGeneraIAssemblyasSJk 20 in 1992 andapproved bythe voters in a subsequent general electionmiddotall state tax money derived from the proceeds ofgamblirigisspent on education
The text ofthisconstitutional provision contained inArtiete 1lISection 39(d) reads as follows
All state revenues derived from the conduct ofaUgaming activities as are now or hereafter authorized by thiscomtitution orbyJaw unless otherwise provided bylaw on the ~ffectivedateofthissectionshallbemiddot appropriated beginoingJuly 1193solely for the pl1blic instittitions of elementary secondary and higheredueatioll and shaH~ot be included within the defmitionoftotal staterevenues in sectioid 7ofarticle X of this constitution
The tax revenues derivedfimnthe proceeds ofgambling foifiscalyeart998 are estimated to be $155 millionmiddot In ~d~itionto thegamblingm~neymiddot traditional stategeneralrevelluefundingfor publicschoo~ bas Uicreased every year since riverboatgillllblingwasenacted Thetotalstatebudget for educationwhichrepresents approximately 50of the average local school budget is $2965 billion Theg~~lIDgnlOney was designedtoslipplel1lent not replace the primatySufCeS ofpqb lie school fuDding[befunds derived from gambling have be~nusedfortheOiltstandingSchools TtilStFundthemiddotmiddot SchoolDistrict Bond Fund fotmainteniuiceandcapital exp~nclilures for public colleges and universities and to supplcentmenttheschool foundlltionmiddot formula
Missouri Gaming Commission 1996 Annual Report - Page 8
middot Where Does All the middot Gaming Tox Money Go
Orgallizationai Structure OFFICE OF THE EXECUTIVE DIRECTOR
Thomas J Irwin was named Executive Director by the Commission on October 21 1993 Mr Irwin came to the Commission after serving 3 years as Executive Assistant to St Louis County Executive Buzz Westfall Mr Irwin is a graduate ofHarvard University where he earned his masters degree from the Kennedy School ofGovernment He has served as the Chief Budget Officer for the Boston Police Department and was the Executive Assistant for Intergovernmental Affairs for St Louis mayor Vince Schoemehl from 1982 to
1988 Mr Irwin is a veteran of the United States Marine Corps having served
in Vietnam in 1968
i i Mr Irwin is responsible for the day-to-day operations of the
Commission He supervises all staff activities and reports to the Commission Among the staff positions reporting to the Director is Public Information
i K Officer Harold Bailey Mr Bailey is responsible for organizing and
distributing all public documents and reports
I In addition there are six primary functions of the Commission that
it have been divided into sections that report directly to Mr Irwin including
Administration Audit Bingo Corporate Securities Enforcement amp
t ~
Investigations and Legal amp Legislative Affairs
I ADMINISTRA110N
The administration section headed by Deputy Director Deborah A Ferguson provides a range of administrative financial and technical services to
help the Commission accomplish its goals The administrative services can be divided into the following functions accounts payable accounts receivable purchasing data processing budget facility leasing and human resources Accomplishments of the administration section would not have come to pass without the assistance ofChiefAccountant Denny Hodges Persomlel Officer Vicki Glenn Records Administrator Michael Shelhnan and Data Processing Manager John Bluma The administration staff benefited from the addition ofTen a Smith Diane Riddle and Mike Brizendine
The administration section continues to be a focal point of activity with the continued growth of the gaming industry l1te highlight of this past year was the relocation of the Jefferson City office Plaooing and design for the Jefferson City office began in 1995 and culminated with the move in September 1996 Highlights of the new building include a hearing room to conduct Commission meetings adequate file space to house the Commission
records that will be relocated from the St Louis office and the merging of the Bingo and Gaming staff into one facility to enhance coordination ofdaily activities
More specifically the duties of this section are as follows
~ Billing licensees for the processing and aoouallicenses issued to Level One and level Two Occupational employees that work for each riverboat To date there are approximately 9000 licensed employees
~ Billing licensed operators for the full cost of the enforcement agents assigned to each boat
~ Maintaining all Commission fmancial and personnel records which includes the monthly reconciliation of the Gaming Commission fund balance and processing aU payments made by the Commission
gt Preparation and implementation of the Commissions annual budget to ensure compliance with legislative intent
~ Handling all personnel matters and employee training and establishing and implementing written office policies for Commission staff
gt Preparation of fiscal notes to provide estimates to proposed legislation
Data Processiltg
The Data Processing section headed by John Blunm had a busy year in 1996 which included major systems developments as well as the daunting task of moving the Jefferson City office to a new location Some ofthe accomplishments of this important section include
~ Opening new commission offices for its agents at licensed premises
~ Moving the Jefferson City offices of the Riverboat Gaming and the Bingo workgroups to the new location This involved moving all computer workstations servers communications processors and printers to the new
Missouri Gaming Commission 1996 Annual Report - Page 10
building The two separate networks were consolidated into one large network that provides email between all members ofthe two sections for the fIrSt time and allows sharing of peripheral equipment such as laser printers
gt Final testing and implementation ofa billing system for enforcement billing to reimburse the state for expenses related to regulating the casino gaming industry
~ Automation ofannual MULES checks required of the 9000 plus gaming occupational license holders eliminating hundreds ofhours ofdata entry time
gt Upgrade of the physical inventory system to provide more complete reports and to track add-on costs to major inventory items
gt Design and development ofan occupational license history tracking system to provide a complete picture of license payments changes in license status duplicate badges issued and changes in employment status
gt Enhancing existing systems to meet new statutes and rules and regulations
AUDET
The audit section is responsible for the critical function ofensuring that the operators pay their taxes promptly and accurately This section headed by Jolm Davis former Internal Revenue Service Manager developed the Commissions tax remittal system that allows the Commission to capture tax remittance data on a daily basis The operators returns are audited by compliance audit siaffheaded up by senior accountant Kara Hardaway
The audit section also develops audit programs reviews and approves each boats system ofintemal controls conducts on-site performance audits reviews the quarterly CPA audits ofAdjusted Gross Receipts Tax and Admission Tax and reviews all internal audit reports prepared by the casinos internal audit staff
During 1996 the audit section revised Minimum Internal Control Standards that all operators must meet These standards were developed by the
audit staff after a lengthy review process that involved input from the IRS enforcement officers and industry experts
The audit section also implemented a system for tracking and depositing all non-tax revenue received from applicants such as application fees from applicants and reimbursements for Commission services
A summary ofsome ofthe audit sections programs and objectives is contained on page 22
BINGO
The Bingo Division is comprised ofthree separate sections which include the Administration Licensing Audit and Enforcement The Bingo Division Supervisor is Ron Pleus The Audit Section Supervisor is Randall Cahill and the Enforcement Section Supervisor is Sergeant Dwight Franklin The bingo statutes have been revised significantly in recent years requiring many administrative changes to occur within the Division Among the more daunting projects were the establishment ofa new licensing category for hall providers and the implementation ofa new supplier-based tax Specific duties within the three sections of the Bingo Division and the recent statntory changes are briefly outlined below
AdministrativeILicensiog Section - This section is responsible for the processing ofall correspondence and the licensing and maintenance ofover 1500 operator licensees which include all regular and special event bingo operators licenses and 200 hall providers annually This section deposits and records an tax and license receipts received on a daily basis This unit maintains a data base of over 31000 records ofindividuals that are involved in the management conduct andor operation ofbingo games and 3000 records of individuals involved as owners and officers of licensed Hall Providers Currently this staff consist ofthree employees Jane Bax Pam Murphy and Tina Freese In conjunction with the data processing staff the administrative section has developed an automated renewal application system which became fully operational January 1996 This system simplifies the renewal process for the licensee and eliminates wasted steps and duplicate information The system has proven to be a tremendous time saver for the not-for-profit volunteer organizations who are required to file renewals and also helps to reduce the staffmg cost and other administrative cost for the Division
Missouri Gaming Commissioll 1996 Allnual Report ~ Page 11
Audit Section - This section is responsible for the timely audit of all Bingo Product Manufacturers and Suppliers and assisting the Enforcement Section with oil-site inspections of bingo operators The audit staff has developed a comprehensive Manufacturer and Supplier audit procedure manual and has developed procedures for the inspection ofbingo operators The procedures for the inspection of bingo operators are used by both the Enforcement and Audit Staffs The audit section has audited all of the licensed Manufacturers and Suppliers during fiscal year 1996 These audits resulted in over $32000000 in unreported taxes and penalties The auditors also assisted enforcement with inspections and investigations of unlicensed suppliers and operators The section conducts on-site inspections of formerly licensed suppliers to determine ifthe products in inventory were being disposed of in accordance with the statutes The audit staff also assists the administrative staff in auditing the operators quarterly repom
Enforeement Section - This section is headed by Sgt Dwight Franklin a 17 year veteran ofthe Missouri Highway Patrol Sgt Franklin has six (6) officers assigned to the enforcement section Their duties include background investigations of all Manufacturers and Suppliers to include all the key personnel in those companies These investigations include criminal checks fmancial checks past employment history and all litigation involving the applicant In addition the enforcement section is responsible for investigating complaints on the licensed bingo organizations The complaints range from minor rule violations to thefts of large sums of money Complaints are received on a daily basis and are investigated on the basis of severity location and available manpower An additional duty of the Enforcement Section is to complete background investigations on all new potential employees of the Gaming Commission
CORPORATE SECURITIES AND FINANCE
The Commission has established a Section of Corporate Securities and Finance to address the challenge ofregulating the complex fmancial corporate structuring and contractual transactions involving publicly traded and privately held gaming companies This section is comprised of staff trained in legal accounting and business matters to perform examinations of these transactions
The suitability issues examined by the Corporate Securities and Finance Section include complex fmancial and legal suitability issues such as fmancial soundness corporate control legal compliance and procedural licensing issues
The sections examinations are coordinated closely with the Enforcement Division for background investigations and disciplinary matters
Typical transactions that are examined by the section include mergers and acquisitions public debt and equity issuances and private financings such as bank loans and credit facilities The goal of this new section is to provide the Commission with more thorough and sophisticated investigations and analysis of the suitability ofgaming companies and with a uniform system for providing this analysis on corporate securities and fmance issues Through this section the Commission hopes to identifY suitability problems ofapplicants and licensees earlier and more efficiently and to identifY plan for and possibly even avoid potential business closures of licensees due to fmandal matters
The Corporate Securities and Finance Section is headed by the Commissions General Counsel Greg Orner who reports directly to the Executive Director on corporate securities and finance matters The section also includes a Chief Financial Analyst position to be filled soon which will oversee the work ofthe fmancial staff examining the corporate secwities and fmance transactions
The Conunissions Financial Manager Pam Brown haS handled the fmandal analysis of the reported transactions up to now and will continue to perfonn many of the more complex transaction examinations and oversee the work of an accountant Pam Wheelis and a fmancial analyst (planned to be added next year) who are also assigned to the section
ENFORCEMENT
Enforcement for the Missouri Gaming Commission is provided by officers of the Missouri State Highway Patrol and agents of the Internal Revenue Service by way of Memorandums ofUnderstanding which set forth the responsibilities ofeach entity
The enforcement section is headed by Mel Fisher former Superintendent of the Highway Patrol The Gaming Division ofthe Highway Patrol is headed by Captain Dwight Hartung There are seventy-seven officers assigned to the Gaming Division and an additional six officers assigned to the Bingo Enforcement Unit
Some of the advantages ofusing Highway Patrol Officers as gaming agents include
JtfisSOUli Gaming Commission 1996 Annual Report - Page 12
the staff assigned are trained specialists in law enforcement and investigations thus saving the Commission the time effort and expense of recruitment and training
because the agents are licensed law enforcement officers they command immediate respect when interacting with licensees and customers aboard a riverboat as well as when they are in a foreign jurisdiction conducting an investigation
~ the Commission feels that it is important to rotate enforcement staff aboard the various boats this process is much easier with seasoned law enforcement officers who are used to being rotated between assignments as well as in and out of the gaming division
gt provides the ability to access sensitive law enforcement information from other jurisdictions
gt their experience in conducting investigations and handling emergency situations has proven invaluable
The Commissions background investigation units consist of three Highway Patrol Officers and one IRS agent The background investigations conducted by the Missouri Gaming Commission are thorough and take approximately four months to complete if no unusual complications or delays emerge The Commission not only investigates the finances and activities of the company and all its key people but traces the source ofall their funds to ensure that no criminal elements are funding the operation from behind the scene An outline that provides a sketch of a typical background investigation is contained on page 20
LEGAL amp LEGISLATIVE AFFAIRS
The legal amp legislative affairs section is responsible for all legal matters presented to the commission prior to litigation Any litigation involving the commission is handled by the Attorney Generals office In addition this section which is headed by Deputy Director Kevin Mullally develops and drafts legislation endorsed by the commission as well as all rules and regulations Moreover the legal section manages an administrative appeals docket where Mullally serves as Hearing Officer
Greg Orner serves as the commissions general coWlSel and works closely with the enforcement staff reviewing incident reports investigative issues and possible disciplinary actions In addition Mr Omer heads the Corporate Securities section
Some of tbe otber responsibilities of the legal section include
~ Drafting all resolutions for all commission actions and
gt preparing disciplinary complaints and denial orders for proposed action against licensees and
gt conducting quasi-legislative hearings on issues such as continuous docking and boat design and
gt providing legal research services and
gt organizing and maintaining records ofall official commission actions and commission policies and
gt handling inquiries from legislators constituents and other state regulatory agencies
The commissions legal staff is supported by paralegal Heather Grefrath and legal secretary Susan Sundermeyer This support staff is critical to daily operations ofthe legal section and is particularly valuable in the sections role in preparing and managing the rules and regulations all documents necessary for commission meetings and all documents declaring commission policy
In 1997 the legal section will be augmented with the addition ofstaff attorney Robert Little
PENDING LITIGATION
The Missouri Gaming commission denied one occupational license in 1994 thirteen occupational licenses in 1995 and thirty-five occupational licenses in 1996 Each aplicant is presumed WlSuitable and has the burden of proof to prove his or her suitability to the Conunssion An individual may request a hearing to attempt to prove suitability to the Commission by serving
Missouri Gaming Commission 1996Annual Reporl- Page 13
such a request on the commissions Executive Director The following is a list of pending litigation
Petitioner Venue
Bingo Systems amp Supply AHC Cape Girardeau Elks Lodge 639 AHC Cape Girardeau VFW Post 3838 AHC Edwin Pete Rhodes AHC Ideal Bingo Supplies Inc AHC Mary Cracchiolo AHC Maureen L Scott AHC Meramec-Amold Eagles Auxiliary AHC Myron B Carter Sr AHC Pan-Education Institute AHC Raymond J Drury AHC Raytown Women of Today AHC Sandra Termini AHC Stanley L Turner AHC Missouri Gaming Co ~Disc Action MGC Harrahs -Disciplinary Action MGC Boyd Kansas City Inc -Disc Action MGC Jeffery Koester -Denied License MGC Gary Franklin -Denied License MGC Mark Zwolle -Disciplinary Action MGC Anthony Civella -Exclusion MGC Peter Simone -Exclusion MGC Yolanda Nettles MGC Tracy Anderson MGC Carrie Gentry MGC Jimmie B Carsey MGC Cape Girardeau Elks amp VFW Circuit Court ofCape Girardeau County MGC v Veterans Commission
st Louis Public Schools Missouri Supreme Court W Todd Akin v MGC Missouri Supreme Court William D Cmmnisano Jr Missouri Court ofAppeals-Western District Pen-Yan Investment Inc Missouri Court ofAppeals-Western District
SUMMARY OF PENDING LITIGATION
There are fourteen bingo cases pending in the Administrative Hearing Commission
There are three disciplinary cases at the Commission level against gaming licensees pending the outcome ofPen-Yon Investment Inc v Boyd Kansas City Inc and MGC
Pen-Yon Investment Inc v Boyd Kansas City Inc MGC is pending in the Missouri Court ofAppeals Western District regarding disciplinary action taken against Boyd for associating in business affairs with a person who has a felony police record The Commission imposed a fine against Boyd and prohibited Boyd from collecting or distributing any funds from the machines under its service agreement with Pen-Yan
MGC v Missouri Veterans Commission St Louis Public Schools is pending in the Missouri Supreme Court regarding funds received from fmes imposed by the Commission
In W Todd Akin et 01 v MGC the Circuit Court ofCole County ruled in favor of the commission on summary judgment The suit challenges the Commissions authority to grant or deny Harrahs Maryland Heights Corp and Players Maryland Heights LP a license for a continuously docked excursion gambling boat within a man-made basin filled by water from the Mississippi River The petitioners have appealed and the matter is now before the Missouri Supreme Court
Cape Girardeau Elks Lodge et aI v MGC is pending in the Circuit Court of Cape Girardeau County regarding the Commissions decision to suspend the Cape Girardeau Elks Lodge bingo license
In the Matler oWilliam D Cammisano Jr there is an appeal pending in the Missouri Court ofAppeals Western District regarding the Commissions decision to place Mr Cammisano on its List of Excluded Persons
MISSOURI GAMING COMMISSIONS EXCLUSION LIST
The Missouri Gaming Commissionplaced two individuals in 1994 two individuals in 1995 and two individuals in 1996 on the commissions Exclusion List Placement of these individuals on the Exclusion List has been based on prior convictions
As a result of placement on the Exclusion List each individual shall not be permitted eoby into any portion of a riverboat gaming operation within the state ofMissouri and shall be ejected ifdiscovered on such premises Furthermore Excluded Persons shall be prohibited from contact of any kind with Missouri riverboat gaming operations Persons placed on the Listmay file a written petition with the Commission to request a hearing to have their name
JlrJissOIlri Gaming Commission 1996 Annual Report - Page 14
removed from the Exclusion List Currentlyone individual has appealed to the Western District of Missouri and two otbers are pending hearings by the Missouri Gaming Commission
MISSOURI GAMING COMMISSIONS DISCIPLINARY ACTIONS AGAINSTOCCUPATIONAL LICENSEES
The Missouri Gaming Commission has taken disciplinary action against twenty-eight occupational licensees as of September 30 1996 Preliminary
Orders for Disciplinary Action set forth statements of fact that support the proposed disciplinary action and the regulatory and statutory sections involved Individuals may request a hearing by serving such a request on the Commissions Executive Director Currently four individuals have sought hearings before the Commission one ofwhich is stm pending
Occupational License Denials 1994-1996
40
l 30
lt0 c Q)
0 lt5 20 i-Q) 0 E ~ 10
o Year Licenses 1994 1995 1996 IiiI Licenses Denials 1 13 35
Voluntary Exclusions On December 30 1996 after six months of research and consultation the
commission established a unique program to combat problem gambling The List of Disassociated Persons is the result of many months ofconsultation with treatment professionals that help problem gamblers The program allows problem gamblers to exclude themselves from Missouri riverboat casinos under the threat ofarrest for trespassing
In exchange for agreeing not to patronize Missouri riverboat casinos the problem gambler is removed from all casino mailing lists and direct marketing promotions In addition the operators are required to deny persons on the List check cashing privileges and must take away their VIP or players club card
Treatment professionals have advised the commission that the only way for a problem gambler to get help is to admit that heshe has a problem and to accept personal responsibility for that problem by seeking treatment
The Disassociated Persons program is a valuable tool in addressing problem gambling because it requires the individual to admit to having a gambling problem to agree to seek treatment and stay away from gambling casinos Furthermore it includes severe consequences if the problem gambler succumbs to the temptation to gamble Moreover it offers some protection to the problem gambler from the marketing promotions that encourage people to visit the casino properties
The program operates in the following manner
~ The problem gambler must obtain an application for placement on the List ofDisassociated Persons from the commission
~ the application contains various information about the individual an admission that the person is a problem gambler and agrees to stay off Missouri riverboats and seek treatment an authorization to release this information to riverboat operators as well as a Waiver releasing the commission and the licensee from any liability associated with enforcing the rules of the program
~ the application must be personally presented to a commission agent at which time the information is verified and the rules of the program are explained
~ the application is a closed record and its contents may only be disclosed to necessary commission and riverboat personnel
~ the commission considers all applications in closed session
~ once a person is placed on the List heshe cannot petition for removal After consulting with treatment professionals the commission concluded that problem gambling requires lifetime treatment and therefore there is no procedure for removal from the List
Missouri is the frrst jurisdiction in the world to propose a program such as this We will continue to monitor and refme the program and look forward to reporting to you on its impact in next years annual report
ft-Iissouri Gaming CommissiOil 1996 Annual Report - Page 16
Brief Timeline of Riverboat Gaming in Missouri ~ May 13 1991 - General Assembly passes House Bill 149 which authorized
referendum to be submitted to the voters in the November 1992 election to determine whether the State Tourism Commission shall have the power to issue riverboat gambling licenses
gt November 31992 - Missouri voters pass referendum allowing riverboat gaming with a majority ofnearly 63
gt January 1993 - Governor Carnahan announces intentions to push legislation creating an independent Gaming Commission to oversee riverboat gambling
April 29 1993 -- SBs 10 amp 11 creating the Missouri Gaming Commission are signed into law by Governor Carnahan and five Commissioners are appointed Robert Wolfson Chairman Robert Clayton William Quinn Dr Jenice Stewart and Avis Tucker
gt April 30 1993 -- Troy Harris et al v The Missouri Gaming Commission amended petition is filed The petition challenges the constitutionality of Senate Bills 10 amp II
gt- May 17 1993 -- The Missouri Gaming Commission holds its first meeting
~ September 1 1993 -- Proposed Rules and EmergencY Rules are adopted
gt September 20 1993 - 19 riverboat gaming license applications are filed with the commission
gt September 20 1993 - Clarence E Mel Fisher hired as Deputy Director for Enforcement
gt September 24 1993 - Commission contracts with the Internal Revenue Service to perform fmancial investigations for the commission Four IRS agents are assigned to the commission
~ September 28 1993 - Commissions enters into and inter-agency agreement with the Missouri State Highway Patrol to provide enforcement services for the commission
~ October I 1993 - Debbie Ferguson joins the commission as Deputy Director for Administration
November 3 1993 - Commission hires Tom Irwin as Executive Director and Kevin Mullally as Deputy Director for Legal amp Legislative Affairs
November 30 1993 -- Commission announces that it will begin background investigations on the following companies President Riverboat Casino-Missouri St Charles Riverfront Station Inc S1 Joseph Riverboat Partners The Missouri Gaming Company GDC (Supplier) IGT (Supplier) Casino Tokens (Supplier) Paul-Son Dice amp Card Company (Supplier)
gt December 22 1993 - Governor Carnahan signs Executive Order 93-50 designating the enforcement section ofthe Missouri Gaming Commission as a criminal justice agency
1994
gt January 25 1994 -- Missouri Supreme Court in Troy Harris v Missouri Gaming Commission strikes down games of chance including slot machines The court ruled that the Commission did have the authority to issue licenses to riverboat where games ofskill are played Specifically mentioned as games ofskill are poker and blackjack The Court remanded six games to lower court for determination as to whether they are games of skill or chance baccarat craps roulette wheel klondike table faro layout and video games ofchance
~ February 1 1994 -- Rules and Regnlations become effective
February 7 1994 -- Legislature passes resolution to place constitutional amendment on the ballot which would allow the legislature to approve games of chance (slot machines) on riverboats and floating facilities on the Missouri and Mississippi Rivers
gt- April 5 1994 -- Voters defeat constitutional amendment allowing games of chance (slot machines) by an unofficial count of 1263 votes
~ April 29 1994 - Finding of Preliminary Suitability issued to President Riverboat Casino S1 Charles Riverfront Station St Joseph Riverboat Partners and The Missouri Gaming Company
Missouri Gaming Commission 1996 AnnualReport - Page 17
Brief Timeline of Riverboat Gaming in Missouri ~ May 20 1994 -- Governor signs into law SB 740 which defmes games of
chance and enacts more stringent ethics provisions The bill also allows the commission to license a barge in an artificial basin as an excursion gambling boat if it can be demonstrated that safely concerns prevent an operator from cruising from that location
~ May 27 1994 - Commission authorizes as games of skin the following Blackjack Caribbean Stud Poker Poker Double Down Stud Poker Pia Gow Poker Poker Texas Hold Em the video representations ofthese games and Craps
gt May 27 1994 -- Commission authorizes President Riverboat Casino-Missouri to operate the Admiral as a continuously docked excursion gambling boat because cruising would cause danger to the boats passengers
gt May 27 1994 -- Gaming Commission issues first two excursion gambling boat licenses to President Riverboat Casino in st Louis and St Charles Riverfront Station in st Charles
gt May 27 1994 -- Initiative petition tbat would allow voters to approve games ofchance is submitted to the Secretary of State for approval of the form ofthe petition
~ June 6 1994 -- Secretary ofState notifies referendum petitioners that the Attorney General has approved the form of their petition The Secretary of State prepared the following petition title that was approved by the Attorney General
Shall the General Assembly be authorized to permit only upon the Mississippi River and the Missouri River lotteries gift enterprises and games ofchance to be conducted on excursion gambling boats and floating facilities
gt June 9 1994 -- Commission prioritizes Aztar Missouri Corporation Boyd Kansas City Inc and Harrahs North Kansas City as companies to be investigated for licensure pursuant to 11 CSR 45-4060
gt June 22 1994 -- Gaming Commission issues licenses to St Joseph Riverboat Partners in St Joseph and The Missouri Gaming Company in Riverside
~ September 20 1994 -- Commission issues a fmding ofpreliminary suitability to Harrahs North Kansas City Corporation
gt September 20 1994 -- Commission authorizes Harrahs North Kansas City Corporation and st Charles Riverfront Stationl to operate excursion gamblillg boats as continuously docked vessels In both cases the commission found that operating a cruising vessel from the proposed site would cause danger to the boats passengers and the project will generate permanent job creation and land-based development
gt September 22 1994 -- Harrahs North Kansas City Corporation is issued an excursion gambling boat license
gt September 28 1994 - Public hearing regarding Capitol Queen and Casino Jncs application for an excursion gambling boat license results in the commission denying CQCs license and prohibiting them from reapplying for two years
gt October 7 1994 - Commission places William D Cammisano Jr and John Termini on its list of excluded persons
gt November 8 1994 -- Voters approve games ofchance
~ December 9 1994 - Games ofchance are allowed on riverboats
gt December 27 1994 - St Charles Riverfront Station is issued a license to operate the St Charles II as an excursion gambling boat This marks the fIrSt time the commission has licensed a second excursion gambling boat for a single development
The approval was for St Charles Riverfront Stations second boat The flTSt boat continued to cruise until April 16 1996
Missouri Gaming Commission 1996 Annual Report - Page 18
Brief Timeline of Riverboat Gaming in Missouri 1995
)gt- February 22 1995 -- Commission announces it will begin background investigation on Hilton Kansas City Corporation for an excursion gambling boat license
~ March 30 1995 - State Auditor releases final audit report of the Missouri Gaming Commission No major deficiencies are noted
~ April 20 1995 - Commission repays $3 million start-up loan to state general revenue fund
)gt- April 25 1995 - Commission approves continuous docking petitions for Boyd Kansas City Inc and Hilton Kansas City Corporation
~ April 25 1995 -- The commission issues a finding ofpreliminary suitability to Aztar Missouri Gaming Corporation
~ April 26 1995 -- The commission issues an excursion gambling boat license to Aztar Missouri Gaming Corporation in Caruthersville Missouri
)gt- May 24 1995 - The commission announces it will begin background investigations on the following companies Harrahs Maryland Heights Corporation Kansas City Station Inc Players Maryland Heights Inc
gt August 28 1995 - Pursuant to House Bill 574 the duties of the Missouri Horse Racing Commission are transferred to the Gaming Commission
~ September 12 1995 - The commission issues a fmding of preliminary suitability to Boyd Kansas City Inc
September 13 1995 - The commission grants the petition ofHarrahs Maryland Heights Corporation and Players Maryland Heights Inc to operate continuously docked excursion gambling boats at their joint venture in Maryland Heights
)gt- September 13 1995 - The commission issues an excursion gambling boat license to Boyd Kansas City Inc
)gtshy November 16 1995 shy The commission fines the following companies for associating with either socially or in business affairs persons with felony police records or persons with a notorious or unsavory reputation Boyd Kansas City Inc Harrahs North Kansas City Corporation The Missouri Gaming Company
1996
)gtshy February 15 1996 - The commission grants continuous docking rights to Aztar Missouri Gaming Corporation for a second boat in Caruthersville Harrahs North Kansas City for a second boat and Kansas City Station Corporation for two boats in Kansas City
~ April 16 1996 - The commission grants continuous docking rights to Argosy in Riverside Missouri S1 Joseph Riverboat Partners and 81 Charles Riverfront Station
~ May 15 1996 - The commission issues a license to Harrahs North Kansas City for the Lucky Star This is the second boat at the Harrahs North Kansas City mcility Included in the project is a 200-room hotel expanded parking and meeting space
~ June 19 1996 -- The commission places William Canunisano Jr on Exclusion List
~ June 27 1996 - The commission places Peter Simone and Anthony T Civella on Exclusion List
August 28 1996 - The commission takes disciplinary action against Boyd Kansas City Inc for periodic failure to take and report turnstile readings
~ October II 1996 - The commission issues a finding of prel iminary suitability to Hilton Kansas City Corporation and Flamingo Hilton Riverboat Casino LoP
October 18 1996 - TIle commission issues a Class B riverboat gambling license 10 HUlon KlIlIStIS City Corporation and a CltlSs A riverboat gambling license 10 Flamingo Hillon Riverboat CtlSino LP
Missouri Gaming Commission 1996Annual Report - Page 19
Outline of a Background Investigation
Review Application fin Completeneiis
~ Establish number ofkey people
~ Check disclosure forms for completeness
gt Check tax release forms
City Selection Process
~ Contact city to determine how the gaming operator was selected
gt Interview Mayor and City Council members
~ Ifa steering committee was used interview members of that committee
Determine ifany city officials own stock in the selected gaming company
~ Obtain minutes ofcouncil meetings that pertain to riverboat issues (a)selection (b) resolution and (c) ordinance
gt Contact city attorney who handled negotiations with gaming company and obtain correspondence between city and gaming company
~ Contact City Economic Development Director (if applicable)
Docksite
gt- Land selected for gaming operation
J Who was it purchased from (how long have they owned the property) J Price (copy ofcontract)J Copy of plat map and legal description J Determine ifany ofcity officials or selection committee members have
ownership interest in docksite
gt Corps ofEngineers Permit
J Status
J Any concerns by Corps J Wetlands involved
~ Contact DNR for any known concerns in area
gt Check with city for any known dwnpsites with possible hazardous material
gt Developmental agreement between city and gaming operator (obtain copy from city)
gt Detennine if development is feasible
J Is support facility land based or floating J Projected nwnber ofjobs economic aid to area J Traffic flow to area - what improvements are needed - who will pay
for improvements
Riverboat
gt Locate boat and obtain all infonnation about boat (cruise schedule liability carrier)
gt Establish design ofriverboat
gt Determine emergency medical plan for boat
gt Determine ifCoast Guard and other safety requirements have been met
Gaming Operator (Public Corporation Partnership Private Company)
gt Establish contact person with operator
J Determine attorney of record for gaming company J Any missing items from application advise contact person
gt Establish home office (Financial Headquarters)
J Determine a good date and location where all key people can be contacted for a personal interview
J Where can financial record be located
Missouri Gaming Commission 1996Annual Report - Page 20
~
Outline of a Background Investigation
J Breakdown ofmanagement (corporate Board ofDirectors major stockholders)
J Establish flow chart of key people and companies owned by gaming operator
~ Investigation ofKey People will include but not be limited to the following
J Check previous employment work records J Check state local and federal intelligence files J Check for other gaming licenses ifapplicable (check with appropriate
regulators)J Check state federal and local courts for any civil litigation J Check for any arrest record J Check personal and business credit J Check state and local tax status IRS will handle federal taxes
gt Other locations ofgaming operations (currently operating and pending locations)
J Contact gaming regulators for respective locations J Travel to sites to view operations
Establish a file for all key people investigated with summaries establish a file for financial records with summary offinancial viability ofcompany and ability to complete obligations to the city and State ofMissouri Establish a file for other locations of licensure along with summary
Associated Investigations
gt All allegations of Any nature must be investigated and a file established with a written summary
~ Associated investigations must be done in a complete and thorough manner and all reports written accurately
gt Upon completion ofall investigations complete reports and summaries a separate press releasable summary must be written This summary must be approved by Gaming Commission legal staff
Missouri Gaming Commission 1996 Annual Report - Page 21
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Missouri Gaming Commission Compliance Audit Objectives for Licensees
ObjectiveAudit Area ~~~~~~~~~
To ensure accuracy of ticket and turnstile counts reported to MGC including compsIVlPs stayovers and promotions
Table Games
Ticketffurnstile
To ensure accuracy of AGR for table games reported to MGC
Electronic Games To ensure accuracy of AGR for electronic games reported to MGC
Cage Accowltability To ensure accuracy ofcage accountability forms and compliance with internal controls and tax reporting regulations
Observations Cage Main Bank Pit Area Slot Area Turnstile Ticketing
PurchaselRedemptions
$500 Loss Limit
Stayover Procedures
To determine that cashiers are complying with internal controls for chips tokens gaming scrip and cash
To determine compliance with MO statutes and internal controls
To determine compliance with MGC regulations and internal controls
To ensure that manual jackpot payouts are properly handled and the required tax fomIS are completed Manual Jackpot Payouts
To ensure that hopper fills are properly handled and comply with internal controls Hopper Fills
To ensure that table fills are properly handled and comply with internal cootrols Table Fills
To ensure that table credits are properly handled and comply with internal controls Table Credits
To ensure that tracking procedures comply with internal controls and the currency transactions are properly completed Patron TrackingCurrency Transaction Reporting
Imprest Bank Balancing To ensure that proper balancing and accountability is performed during a shift change
Coin Vault To ensure proper maintenance of coin chip and token inventory
Satellite CageSSlot Booths To ensure compliance with internal controls and consistency with main cage procedures
TipsGratuities To ensure compliance with MGC regulations and internal controls
Cage AccessSecurity To ensure compliance with internal controls
Turnstile To ensure accuracy of turnstile count for admissions tax calculation
Ticketing To ensure comp Hance with internal controls and proper handling of stubs voids and issuance
MiscellaneousOther
Surveillance Tapes To review activity for hard soft and tip counts and drops to verify compliance with internal controls
Workpaper Preparation and To establish standardized procedures for MGC audit workpapers and audit reports Audit Reports
-
Missouri Gaming Commission 1996 AnnualReport - Page 22
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Audit Area
Monthly Financial Statement Review
Engagement Letters
Objective --shy
To perform a preliminary review ofmonthly financial statement information for proper completion of fmandal statement templates verification ofadjusted gross receipts to MGC reports and to detect any unusual items which justifY further review when conducting on-site audit
To give advance notification to each boat of the date and scope ofaudit being performed
Financial Statement Verification To determine consistency ofmonthly financial statement information submitted to MGC with boats general ledger system
Balance Sheet Accounts
CashCash Reserve Balance
Cash Receipts
Cash Disbursements
shy -- shy
To determine the existence consistency and fair presentation of the cash balance on the monthly fmancial statements
To determine the consistency and filir presentation of the cash balance on the monthly financial statements and the source of large cash receipts other than gaming revenue
___I
To determine the consistency and fair presentation of the cash balance on the monthly fmancial statements and to trace the outflow of large cash disbursements
i
I
--
AccountslN Notes Receivable
Accrued Admission and Gaming Tax Liability
Chip and Token Liability
Progressive Jackpot Liability
To determine the consistency and fair presentation of the accounts receivable andor notes receivable balance in the monthly fmancial statements
To determine the consistency and fair presentation of the accrued admissiongaming tax liability balance in the monthly financial statements
To determine the consistency and fair presentation of the chip and token liability balance in the monthly financial statements
To determine the consistency and fair presentation of the progressive jackpot liability balance in the monthly fmancial statements
---shy
Tips and Gratuities (Accrued Liability)
Customer Deposit Liability
Accounts Payable
Income Statement Accounts
Revenne - Table Games
To determine the consistency and fair presentation of the accrued tips and gratuities liability in the monthly fmancial statements
-lt ---- shy
To determine the consistency and fair presentation of the customer deposit liabilities in the monthly fiscal statements To determine the consistency and fair presentation ofaccounts payable balance in the monthly fmancial statements
--shy
To determine the consistency and fair presentation of table games revenue as reported to MGC daily and in the monthly fmandal statements
Revenue - Electronic Games To determine the consistency and fair presentation of electronic games revenue as reported to MGC daily and in the monthly financial statements
Missouri Gaming Commission 1996 Annual Report - Page 23
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---------
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Revenue - Admissions To detennine the consistency and fair presentation ofadmissions revenue as reported to MGC daily and in the monthly fmancial statements
Promotional Expense To determine that comps are properly recorded as expenses and not deducted from revenue in accordance with GAAP
Pre-Opening Costs To determine whether certain pre-opening and licensing costs are properly expensed or amortized over future periods in accordance with GAAP
Workpaper Preparation and Audit Reports To establish standardized procedures for MGC audit workpapers and audit reports
AissOllri Gamillg Commission 1996 Anllual Report - Page 24
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AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
c
Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
----shy
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o
Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
raquo
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-c
CD
J
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I IAztar Missouri Corporation
r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
j i
1
J
1 I l
I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
~
Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
Effect of Tax Rate on Competitiveness
The Missouri tax rate currently mirrors that of its principle competitor the State of Illinois The MissourilIlIinois tax rate consists of a 20 base tax on adjusted gross receipts (AGR) In Missouri 10 of that tax (or 2 of AGR) is a local tax imposed by state statute The funds collected from this local tax are allocated to the home dock city or county fur services necessary for the safety of the public visiting the excursion gambling boat The remaining tax on AGR (18 of gross receipts) is placed in the Gaming Proceeds for Education Fund and may be spent only for public elementary secondary and higher education
Iowa has a graduated tax tbat caps out at 20 for adjusted gross receipts over $3 million Because the graduated rate reaches its cap at the relatively low ceiling 0pound$3 million Iowas effective tax rate is not significantly
The state of Kansas has recently allowed casinos operated by native American Indians These casinos are not taxed
For your future reference a table is contained in Appendix B setting forth the tax rate in each gaming jurisdiction and the regulatory restrictions that are imposed The chart below is a generalization of the tax rates in the various gaming jurisdictions Because of the subtleties of each states tax law it is difficult to precisely chart the rates For a defmitive explanation of the tax rates refer to the aforementioned chart in Appendix B
The Commission does not feel that the 20010 tax rate currently places our licensees at a competitive disadvantage The commission will continue to monitor the performance of all licensees and report developments as they occur
different from that of Missouri and Illinois
Licensees are also responsible for a $2 admission fee for each person who participates in a gaming excursion One dollar of this fee is remitted to the home dock city or county The remaining dollar is used to fund the regulatory activities of the Commission No general revenue is used for any activity of the Commission In addition to the $2 admission fee the gaming boat is billed monthly for the full cost of the enforcement agents assigned to the boat Either through fees or direct billing the gaming operators pay for the full cost of their own regulation
The State of Mississippi assesses a tax of 12 on AGR Unlike Illinois who is limited to licensing 10 gaming operations Mississippi has not limited the number of casinos licensed but has licensed all applicants that have been found suitable The Missouri law does not specifically limit the number of licenses that may be issued but places this responsibility in the hands of the Commission through a best interests of Missouri standard
Comparison of Gaming Tax Rates TaxonAGR
25
20 m ma )(
15 IImTaxRaeJ ~ 10
5
0 NV NJ LA
----------------------------------
MS IL IN IA MO CO so State
Missouri Gamilg Commission 1996Annual Report - Page 7
Missouri Gaming Commission Contributions to Education
Fiscal Year 1995
Gaming Proceeds for Education $ 5661628204
Bingo Tax Proceeds for Education $ 625370396
FY95 Tax Revenue from Gaming $6286998600
Fiscal Year 1996
Gaming Proceeds for Education $9973032067
Bingo Tax Proceeds for Education $ 468417852
FY 96 Tax Revenue from Gaming $10441449919
Total Tax Revenue from Gaming 516728448519
Does the GamblingMoneYiReallyGoo Fund Education
This may be the question inostfrequently asked ofpublic officials The simple answer is yes it does Pursuant to aconstitution~lamendntent passed by theGeneraIAssemblyasSJk 20 in 1992 andapproved bythe voters in a subsequent general electionmiddotall state tax money derived from the proceeds ofgamblirigisspent on education
The text ofthisconstitutional provision contained inArtiete 1lISection 39(d) reads as follows
All state revenues derived from the conduct ofaUgaming activities as are now or hereafter authorized by thiscomtitution orbyJaw unless otherwise provided bylaw on the ~ffectivedateofthissectionshallbemiddot appropriated beginoingJuly 1193solely for the pl1blic instittitions of elementary secondary and higheredueatioll and shaH~ot be included within the defmitionoftotal staterevenues in sectioid 7ofarticle X of this constitution
The tax revenues derivedfimnthe proceeds ofgambling foifiscalyeart998 are estimated to be $155 millionmiddot In ~d~itionto thegamblingm~neymiddot traditional stategeneralrevelluefundingfor publicschoo~ bas Uicreased every year since riverboatgillllblingwasenacted Thetotalstatebudget for educationwhichrepresents approximately 50of the average local school budget is $2965 billion Theg~~lIDgnlOney was designedtoslipplel1lent not replace the primatySufCeS ofpqb lie school fuDding[befunds derived from gambling have be~nusedfortheOiltstandingSchools TtilStFundthemiddotmiddot SchoolDistrict Bond Fund fotmainteniuiceandcapital exp~nclilures for public colleges and universities and to supplcentmenttheschool foundlltionmiddot formula
Missouri Gaming Commission 1996 Annual Report - Page 8
middot Where Does All the middot Gaming Tox Money Go
Orgallizationai Structure OFFICE OF THE EXECUTIVE DIRECTOR
Thomas J Irwin was named Executive Director by the Commission on October 21 1993 Mr Irwin came to the Commission after serving 3 years as Executive Assistant to St Louis County Executive Buzz Westfall Mr Irwin is a graduate ofHarvard University where he earned his masters degree from the Kennedy School ofGovernment He has served as the Chief Budget Officer for the Boston Police Department and was the Executive Assistant for Intergovernmental Affairs for St Louis mayor Vince Schoemehl from 1982 to
1988 Mr Irwin is a veteran of the United States Marine Corps having served
in Vietnam in 1968
i i Mr Irwin is responsible for the day-to-day operations of the
Commission He supervises all staff activities and reports to the Commission Among the staff positions reporting to the Director is Public Information
i K Officer Harold Bailey Mr Bailey is responsible for organizing and
distributing all public documents and reports
I In addition there are six primary functions of the Commission that
it have been divided into sections that report directly to Mr Irwin including
Administration Audit Bingo Corporate Securities Enforcement amp
t ~
Investigations and Legal amp Legislative Affairs
I ADMINISTRA110N
The administration section headed by Deputy Director Deborah A Ferguson provides a range of administrative financial and technical services to
help the Commission accomplish its goals The administrative services can be divided into the following functions accounts payable accounts receivable purchasing data processing budget facility leasing and human resources Accomplishments of the administration section would not have come to pass without the assistance ofChiefAccountant Denny Hodges Persomlel Officer Vicki Glenn Records Administrator Michael Shelhnan and Data Processing Manager John Bluma The administration staff benefited from the addition ofTen a Smith Diane Riddle and Mike Brizendine
The administration section continues to be a focal point of activity with the continued growth of the gaming industry l1te highlight of this past year was the relocation of the Jefferson City office Plaooing and design for the Jefferson City office began in 1995 and culminated with the move in September 1996 Highlights of the new building include a hearing room to conduct Commission meetings adequate file space to house the Commission
records that will be relocated from the St Louis office and the merging of the Bingo and Gaming staff into one facility to enhance coordination ofdaily activities
More specifically the duties of this section are as follows
~ Billing licensees for the processing and aoouallicenses issued to Level One and level Two Occupational employees that work for each riverboat To date there are approximately 9000 licensed employees
~ Billing licensed operators for the full cost of the enforcement agents assigned to each boat
~ Maintaining all Commission fmancial and personnel records which includes the monthly reconciliation of the Gaming Commission fund balance and processing aU payments made by the Commission
gt Preparation and implementation of the Commissions annual budget to ensure compliance with legislative intent
~ Handling all personnel matters and employee training and establishing and implementing written office policies for Commission staff
gt Preparation of fiscal notes to provide estimates to proposed legislation
Data Processiltg
The Data Processing section headed by John Blunm had a busy year in 1996 which included major systems developments as well as the daunting task of moving the Jefferson City office to a new location Some ofthe accomplishments of this important section include
~ Opening new commission offices for its agents at licensed premises
~ Moving the Jefferson City offices of the Riverboat Gaming and the Bingo workgroups to the new location This involved moving all computer workstations servers communications processors and printers to the new
Missouri Gaming Commission 1996 Annual Report - Page 10
building The two separate networks were consolidated into one large network that provides email between all members ofthe two sections for the fIrSt time and allows sharing of peripheral equipment such as laser printers
gt Final testing and implementation ofa billing system for enforcement billing to reimburse the state for expenses related to regulating the casino gaming industry
~ Automation ofannual MULES checks required of the 9000 plus gaming occupational license holders eliminating hundreds ofhours ofdata entry time
gt Upgrade of the physical inventory system to provide more complete reports and to track add-on costs to major inventory items
gt Design and development ofan occupational license history tracking system to provide a complete picture of license payments changes in license status duplicate badges issued and changes in employment status
gt Enhancing existing systems to meet new statutes and rules and regulations
AUDET
The audit section is responsible for the critical function ofensuring that the operators pay their taxes promptly and accurately This section headed by Jolm Davis former Internal Revenue Service Manager developed the Commissions tax remittal system that allows the Commission to capture tax remittance data on a daily basis The operators returns are audited by compliance audit siaffheaded up by senior accountant Kara Hardaway
The audit section also develops audit programs reviews and approves each boats system ofintemal controls conducts on-site performance audits reviews the quarterly CPA audits ofAdjusted Gross Receipts Tax and Admission Tax and reviews all internal audit reports prepared by the casinos internal audit staff
During 1996 the audit section revised Minimum Internal Control Standards that all operators must meet These standards were developed by the
audit staff after a lengthy review process that involved input from the IRS enforcement officers and industry experts
The audit section also implemented a system for tracking and depositing all non-tax revenue received from applicants such as application fees from applicants and reimbursements for Commission services
A summary ofsome ofthe audit sections programs and objectives is contained on page 22
BINGO
The Bingo Division is comprised ofthree separate sections which include the Administration Licensing Audit and Enforcement The Bingo Division Supervisor is Ron Pleus The Audit Section Supervisor is Randall Cahill and the Enforcement Section Supervisor is Sergeant Dwight Franklin The bingo statutes have been revised significantly in recent years requiring many administrative changes to occur within the Division Among the more daunting projects were the establishment ofa new licensing category for hall providers and the implementation ofa new supplier-based tax Specific duties within the three sections of the Bingo Division and the recent statntory changes are briefly outlined below
AdministrativeILicensiog Section - This section is responsible for the processing ofall correspondence and the licensing and maintenance ofover 1500 operator licensees which include all regular and special event bingo operators licenses and 200 hall providers annually This section deposits and records an tax and license receipts received on a daily basis This unit maintains a data base of over 31000 records ofindividuals that are involved in the management conduct andor operation ofbingo games and 3000 records of individuals involved as owners and officers of licensed Hall Providers Currently this staff consist ofthree employees Jane Bax Pam Murphy and Tina Freese In conjunction with the data processing staff the administrative section has developed an automated renewal application system which became fully operational January 1996 This system simplifies the renewal process for the licensee and eliminates wasted steps and duplicate information The system has proven to be a tremendous time saver for the not-for-profit volunteer organizations who are required to file renewals and also helps to reduce the staffmg cost and other administrative cost for the Division
Missouri Gaming Commissioll 1996 Allnual Report ~ Page 11
Audit Section - This section is responsible for the timely audit of all Bingo Product Manufacturers and Suppliers and assisting the Enforcement Section with oil-site inspections of bingo operators The audit staff has developed a comprehensive Manufacturer and Supplier audit procedure manual and has developed procedures for the inspection ofbingo operators The procedures for the inspection of bingo operators are used by both the Enforcement and Audit Staffs The audit section has audited all of the licensed Manufacturers and Suppliers during fiscal year 1996 These audits resulted in over $32000000 in unreported taxes and penalties The auditors also assisted enforcement with inspections and investigations of unlicensed suppliers and operators The section conducts on-site inspections of formerly licensed suppliers to determine ifthe products in inventory were being disposed of in accordance with the statutes The audit staff also assists the administrative staff in auditing the operators quarterly repom
Enforeement Section - This section is headed by Sgt Dwight Franklin a 17 year veteran ofthe Missouri Highway Patrol Sgt Franklin has six (6) officers assigned to the enforcement section Their duties include background investigations of all Manufacturers and Suppliers to include all the key personnel in those companies These investigations include criminal checks fmancial checks past employment history and all litigation involving the applicant In addition the enforcement section is responsible for investigating complaints on the licensed bingo organizations The complaints range from minor rule violations to thefts of large sums of money Complaints are received on a daily basis and are investigated on the basis of severity location and available manpower An additional duty of the Enforcement Section is to complete background investigations on all new potential employees of the Gaming Commission
CORPORATE SECURITIES AND FINANCE
The Commission has established a Section of Corporate Securities and Finance to address the challenge ofregulating the complex fmancial corporate structuring and contractual transactions involving publicly traded and privately held gaming companies This section is comprised of staff trained in legal accounting and business matters to perform examinations of these transactions
The suitability issues examined by the Corporate Securities and Finance Section include complex fmancial and legal suitability issues such as fmancial soundness corporate control legal compliance and procedural licensing issues
The sections examinations are coordinated closely with the Enforcement Division for background investigations and disciplinary matters
Typical transactions that are examined by the section include mergers and acquisitions public debt and equity issuances and private financings such as bank loans and credit facilities The goal of this new section is to provide the Commission with more thorough and sophisticated investigations and analysis of the suitability ofgaming companies and with a uniform system for providing this analysis on corporate securities and fmance issues Through this section the Commission hopes to identifY suitability problems ofapplicants and licensees earlier and more efficiently and to identifY plan for and possibly even avoid potential business closures of licensees due to fmandal matters
The Corporate Securities and Finance Section is headed by the Commissions General Counsel Greg Orner who reports directly to the Executive Director on corporate securities and finance matters The section also includes a Chief Financial Analyst position to be filled soon which will oversee the work ofthe fmancial staff examining the corporate secwities and fmance transactions
The Conunissions Financial Manager Pam Brown haS handled the fmandal analysis of the reported transactions up to now and will continue to perfonn many of the more complex transaction examinations and oversee the work of an accountant Pam Wheelis and a fmancial analyst (planned to be added next year) who are also assigned to the section
ENFORCEMENT
Enforcement for the Missouri Gaming Commission is provided by officers of the Missouri State Highway Patrol and agents of the Internal Revenue Service by way of Memorandums ofUnderstanding which set forth the responsibilities ofeach entity
The enforcement section is headed by Mel Fisher former Superintendent of the Highway Patrol The Gaming Division ofthe Highway Patrol is headed by Captain Dwight Hartung There are seventy-seven officers assigned to the Gaming Division and an additional six officers assigned to the Bingo Enforcement Unit
Some of the advantages ofusing Highway Patrol Officers as gaming agents include
JtfisSOUli Gaming Commission 1996 Annual Report - Page 12
the staff assigned are trained specialists in law enforcement and investigations thus saving the Commission the time effort and expense of recruitment and training
because the agents are licensed law enforcement officers they command immediate respect when interacting with licensees and customers aboard a riverboat as well as when they are in a foreign jurisdiction conducting an investigation
~ the Commission feels that it is important to rotate enforcement staff aboard the various boats this process is much easier with seasoned law enforcement officers who are used to being rotated between assignments as well as in and out of the gaming division
gt provides the ability to access sensitive law enforcement information from other jurisdictions
gt their experience in conducting investigations and handling emergency situations has proven invaluable
The Commissions background investigation units consist of three Highway Patrol Officers and one IRS agent The background investigations conducted by the Missouri Gaming Commission are thorough and take approximately four months to complete if no unusual complications or delays emerge The Commission not only investigates the finances and activities of the company and all its key people but traces the source ofall their funds to ensure that no criminal elements are funding the operation from behind the scene An outline that provides a sketch of a typical background investigation is contained on page 20
LEGAL amp LEGISLATIVE AFFAIRS
The legal amp legislative affairs section is responsible for all legal matters presented to the commission prior to litigation Any litigation involving the commission is handled by the Attorney Generals office In addition this section which is headed by Deputy Director Kevin Mullally develops and drafts legislation endorsed by the commission as well as all rules and regulations Moreover the legal section manages an administrative appeals docket where Mullally serves as Hearing Officer
Greg Orner serves as the commissions general coWlSel and works closely with the enforcement staff reviewing incident reports investigative issues and possible disciplinary actions In addition Mr Omer heads the Corporate Securities section
Some of tbe otber responsibilities of the legal section include
~ Drafting all resolutions for all commission actions and
gt preparing disciplinary complaints and denial orders for proposed action against licensees and
gt conducting quasi-legislative hearings on issues such as continuous docking and boat design and
gt providing legal research services and
gt organizing and maintaining records ofall official commission actions and commission policies and
gt handling inquiries from legislators constituents and other state regulatory agencies
The commissions legal staff is supported by paralegal Heather Grefrath and legal secretary Susan Sundermeyer This support staff is critical to daily operations ofthe legal section and is particularly valuable in the sections role in preparing and managing the rules and regulations all documents necessary for commission meetings and all documents declaring commission policy
In 1997 the legal section will be augmented with the addition ofstaff attorney Robert Little
PENDING LITIGATION
The Missouri Gaming commission denied one occupational license in 1994 thirteen occupational licenses in 1995 and thirty-five occupational licenses in 1996 Each aplicant is presumed WlSuitable and has the burden of proof to prove his or her suitability to the Conunssion An individual may request a hearing to attempt to prove suitability to the Commission by serving
Missouri Gaming Commission 1996Annual Reporl- Page 13
such a request on the commissions Executive Director The following is a list of pending litigation
Petitioner Venue
Bingo Systems amp Supply AHC Cape Girardeau Elks Lodge 639 AHC Cape Girardeau VFW Post 3838 AHC Edwin Pete Rhodes AHC Ideal Bingo Supplies Inc AHC Mary Cracchiolo AHC Maureen L Scott AHC Meramec-Amold Eagles Auxiliary AHC Myron B Carter Sr AHC Pan-Education Institute AHC Raymond J Drury AHC Raytown Women of Today AHC Sandra Termini AHC Stanley L Turner AHC Missouri Gaming Co ~Disc Action MGC Harrahs -Disciplinary Action MGC Boyd Kansas City Inc -Disc Action MGC Jeffery Koester -Denied License MGC Gary Franklin -Denied License MGC Mark Zwolle -Disciplinary Action MGC Anthony Civella -Exclusion MGC Peter Simone -Exclusion MGC Yolanda Nettles MGC Tracy Anderson MGC Carrie Gentry MGC Jimmie B Carsey MGC Cape Girardeau Elks amp VFW Circuit Court ofCape Girardeau County MGC v Veterans Commission
st Louis Public Schools Missouri Supreme Court W Todd Akin v MGC Missouri Supreme Court William D Cmmnisano Jr Missouri Court ofAppeals-Western District Pen-Yan Investment Inc Missouri Court ofAppeals-Western District
SUMMARY OF PENDING LITIGATION
There are fourteen bingo cases pending in the Administrative Hearing Commission
There are three disciplinary cases at the Commission level against gaming licensees pending the outcome ofPen-Yon Investment Inc v Boyd Kansas City Inc and MGC
Pen-Yon Investment Inc v Boyd Kansas City Inc MGC is pending in the Missouri Court ofAppeals Western District regarding disciplinary action taken against Boyd for associating in business affairs with a person who has a felony police record The Commission imposed a fine against Boyd and prohibited Boyd from collecting or distributing any funds from the machines under its service agreement with Pen-Yan
MGC v Missouri Veterans Commission St Louis Public Schools is pending in the Missouri Supreme Court regarding funds received from fmes imposed by the Commission
In W Todd Akin et 01 v MGC the Circuit Court ofCole County ruled in favor of the commission on summary judgment The suit challenges the Commissions authority to grant or deny Harrahs Maryland Heights Corp and Players Maryland Heights LP a license for a continuously docked excursion gambling boat within a man-made basin filled by water from the Mississippi River The petitioners have appealed and the matter is now before the Missouri Supreme Court
Cape Girardeau Elks Lodge et aI v MGC is pending in the Circuit Court of Cape Girardeau County regarding the Commissions decision to suspend the Cape Girardeau Elks Lodge bingo license
In the Matler oWilliam D Cammisano Jr there is an appeal pending in the Missouri Court ofAppeals Western District regarding the Commissions decision to place Mr Cammisano on its List of Excluded Persons
MISSOURI GAMING COMMISSIONS EXCLUSION LIST
The Missouri Gaming Commissionplaced two individuals in 1994 two individuals in 1995 and two individuals in 1996 on the commissions Exclusion List Placement of these individuals on the Exclusion List has been based on prior convictions
As a result of placement on the Exclusion List each individual shall not be permitted eoby into any portion of a riverboat gaming operation within the state ofMissouri and shall be ejected ifdiscovered on such premises Furthermore Excluded Persons shall be prohibited from contact of any kind with Missouri riverboat gaming operations Persons placed on the Listmay file a written petition with the Commission to request a hearing to have their name
JlrJissOIlri Gaming Commission 1996 Annual Report - Page 14
removed from the Exclusion List Currentlyone individual has appealed to the Western District of Missouri and two otbers are pending hearings by the Missouri Gaming Commission
MISSOURI GAMING COMMISSIONS DISCIPLINARY ACTIONS AGAINSTOCCUPATIONAL LICENSEES
The Missouri Gaming Commission has taken disciplinary action against twenty-eight occupational licensees as of September 30 1996 Preliminary
Orders for Disciplinary Action set forth statements of fact that support the proposed disciplinary action and the regulatory and statutory sections involved Individuals may request a hearing by serving such a request on the Commissions Executive Director Currently four individuals have sought hearings before the Commission one ofwhich is stm pending
Occupational License Denials 1994-1996
40
l 30
lt0 c Q)
0 lt5 20 i-Q) 0 E ~ 10
o Year Licenses 1994 1995 1996 IiiI Licenses Denials 1 13 35
Voluntary Exclusions On December 30 1996 after six months of research and consultation the
commission established a unique program to combat problem gambling The List of Disassociated Persons is the result of many months ofconsultation with treatment professionals that help problem gamblers The program allows problem gamblers to exclude themselves from Missouri riverboat casinos under the threat ofarrest for trespassing
In exchange for agreeing not to patronize Missouri riverboat casinos the problem gambler is removed from all casino mailing lists and direct marketing promotions In addition the operators are required to deny persons on the List check cashing privileges and must take away their VIP or players club card
Treatment professionals have advised the commission that the only way for a problem gambler to get help is to admit that heshe has a problem and to accept personal responsibility for that problem by seeking treatment
The Disassociated Persons program is a valuable tool in addressing problem gambling because it requires the individual to admit to having a gambling problem to agree to seek treatment and stay away from gambling casinos Furthermore it includes severe consequences if the problem gambler succumbs to the temptation to gamble Moreover it offers some protection to the problem gambler from the marketing promotions that encourage people to visit the casino properties
The program operates in the following manner
~ The problem gambler must obtain an application for placement on the List ofDisassociated Persons from the commission
~ the application contains various information about the individual an admission that the person is a problem gambler and agrees to stay off Missouri riverboats and seek treatment an authorization to release this information to riverboat operators as well as a Waiver releasing the commission and the licensee from any liability associated with enforcing the rules of the program
~ the application must be personally presented to a commission agent at which time the information is verified and the rules of the program are explained
~ the application is a closed record and its contents may only be disclosed to necessary commission and riverboat personnel
~ the commission considers all applications in closed session
~ once a person is placed on the List heshe cannot petition for removal After consulting with treatment professionals the commission concluded that problem gambling requires lifetime treatment and therefore there is no procedure for removal from the List
Missouri is the frrst jurisdiction in the world to propose a program such as this We will continue to monitor and refme the program and look forward to reporting to you on its impact in next years annual report
ft-Iissouri Gaming CommissiOil 1996 Annual Report - Page 16
Brief Timeline of Riverboat Gaming in Missouri ~ May 13 1991 - General Assembly passes House Bill 149 which authorized
referendum to be submitted to the voters in the November 1992 election to determine whether the State Tourism Commission shall have the power to issue riverboat gambling licenses
gt November 31992 - Missouri voters pass referendum allowing riverboat gaming with a majority ofnearly 63
gt January 1993 - Governor Carnahan announces intentions to push legislation creating an independent Gaming Commission to oversee riverboat gambling
April 29 1993 -- SBs 10 amp 11 creating the Missouri Gaming Commission are signed into law by Governor Carnahan and five Commissioners are appointed Robert Wolfson Chairman Robert Clayton William Quinn Dr Jenice Stewart and Avis Tucker
gt April 30 1993 -- Troy Harris et al v The Missouri Gaming Commission amended petition is filed The petition challenges the constitutionality of Senate Bills 10 amp II
gt- May 17 1993 -- The Missouri Gaming Commission holds its first meeting
~ September 1 1993 -- Proposed Rules and EmergencY Rules are adopted
gt September 20 1993 - 19 riverboat gaming license applications are filed with the commission
gt September 20 1993 - Clarence E Mel Fisher hired as Deputy Director for Enforcement
gt September 24 1993 - Commission contracts with the Internal Revenue Service to perform fmancial investigations for the commission Four IRS agents are assigned to the commission
~ September 28 1993 - Commissions enters into and inter-agency agreement with the Missouri State Highway Patrol to provide enforcement services for the commission
~ October I 1993 - Debbie Ferguson joins the commission as Deputy Director for Administration
November 3 1993 - Commission hires Tom Irwin as Executive Director and Kevin Mullally as Deputy Director for Legal amp Legislative Affairs
November 30 1993 -- Commission announces that it will begin background investigations on the following companies President Riverboat Casino-Missouri St Charles Riverfront Station Inc S1 Joseph Riverboat Partners The Missouri Gaming Company GDC (Supplier) IGT (Supplier) Casino Tokens (Supplier) Paul-Son Dice amp Card Company (Supplier)
gt December 22 1993 - Governor Carnahan signs Executive Order 93-50 designating the enforcement section ofthe Missouri Gaming Commission as a criminal justice agency
1994
gt January 25 1994 -- Missouri Supreme Court in Troy Harris v Missouri Gaming Commission strikes down games of chance including slot machines The court ruled that the Commission did have the authority to issue licenses to riverboat where games ofskill are played Specifically mentioned as games ofskill are poker and blackjack The Court remanded six games to lower court for determination as to whether they are games of skill or chance baccarat craps roulette wheel klondike table faro layout and video games ofchance
~ February 1 1994 -- Rules and Regnlations become effective
February 7 1994 -- Legislature passes resolution to place constitutional amendment on the ballot which would allow the legislature to approve games of chance (slot machines) on riverboats and floating facilities on the Missouri and Mississippi Rivers
gt- April 5 1994 -- Voters defeat constitutional amendment allowing games of chance (slot machines) by an unofficial count of 1263 votes
~ April 29 1994 - Finding of Preliminary Suitability issued to President Riverboat Casino S1 Charles Riverfront Station St Joseph Riverboat Partners and The Missouri Gaming Company
Missouri Gaming Commission 1996 AnnualReport - Page 17
Brief Timeline of Riverboat Gaming in Missouri ~ May 20 1994 -- Governor signs into law SB 740 which defmes games of
chance and enacts more stringent ethics provisions The bill also allows the commission to license a barge in an artificial basin as an excursion gambling boat if it can be demonstrated that safely concerns prevent an operator from cruising from that location
~ May 27 1994 - Commission authorizes as games of skin the following Blackjack Caribbean Stud Poker Poker Double Down Stud Poker Pia Gow Poker Poker Texas Hold Em the video representations ofthese games and Craps
gt May 27 1994 -- Commission authorizes President Riverboat Casino-Missouri to operate the Admiral as a continuously docked excursion gambling boat because cruising would cause danger to the boats passengers
gt May 27 1994 -- Gaming Commission issues first two excursion gambling boat licenses to President Riverboat Casino in st Louis and St Charles Riverfront Station in st Charles
gt May 27 1994 -- Initiative petition tbat would allow voters to approve games ofchance is submitted to the Secretary of State for approval of the form ofthe petition
~ June 6 1994 -- Secretary ofState notifies referendum petitioners that the Attorney General has approved the form of their petition The Secretary of State prepared the following petition title that was approved by the Attorney General
Shall the General Assembly be authorized to permit only upon the Mississippi River and the Missouri River lotteries gift enterprises and games ofchance to be conducted on excursion gambling boats and floating facilities
gt June 9 1994 -- Commission prioritizes Aztar Missouri Corporation Boyd Kansas City Inc and Harrahs North Kansas City as companies to be investigated for licensure pursuant to 11 CSR 45-4060
gt June 22 1994 -- Gaming Commission issues licenses to St Joseph Riverboat Partners in St Joseph and The Missouri Gaming Company in Riverside
~ September 20 1994 -- Commission issues a fmding ofpreliminary suitability to Harrahs North Kansas City Corporation
gt September 20 1994 -- Commission authorizes Harrahs North Kansas City Corporation and st Charles Riverfront Stationl to operate excursion gamblillg boats as continuously docked vessels In both cases the commission found that operating a cruising vessel from the proposed site would cause danger to the boats passengers and the project will generate permanent job creation and land-based development
gt September 22 1994 -- Harrahs North Kansas City Corporation is issued an excursion gambling boat license
gt September 28 1994 - Public hearing regarding Capitol Queen and Casino Jncs application for an excursion gambling boat license results in the commission denying CQCs license and prohibiting them from reapplying for two years
gt October 7 1994 - Commission places William D Cammisano Jr and John Termini on its list of excluded persons
gt November 8 1994 -- Voters approve games ofchance
~ December 9 1994 - Games ofchance are allowed on riverboats
gt December 27 1994 - St Charles Riverfront Station is issued a license to operate the St Charles II as an excursion gambling boat This marks the fIrSt time the commission has licensed a second excursion gambling boat for a single development
The approval was for St Charles Riverfront Stations second boat The flTSt boat continued to cruise until April 16 1996
Missouri Gaming Commission 1996 Annual Report - Page 18
Brief Timeline of Riverboat Gaming in Missouri 1995
)gt- February 22 1995 -- Commission announces it will begin background investigation on Hilton Kansas City Corporation for an excursion gambling boat license
~ March 30 1995 - State Auditor releases final audit report of the Missouri Gaming Commission No major deficiencies are noted
~ April 20 1995 - Commission repays $3 million start-up loan to state general revenue fund
)gt- April 25 1995 - Commission approves continuous docking petitions for Boyd Kansas City Inc and Hilton Kansas City Corporation
~ April 25 1995 -- The commission issues a finding ofpreliminary suitability to Aztar Missouri Gaming Corporation
~ April 26 1995 -- The commission issues an excursion gambling boat license to Aztar Missouri Gaming Corporation in Caruthersville Missouri
)gt- May 24 1995 - The commission announces it will begin background investigations on the following companies Harrahs Maryland Heights Corporation Kansas City Station Inc Players Maryland Heights Inc
gt August 28 1995 - Pursuant to House Bill 574 the duties of the Missouri Horse Racing Commission are transferred to the Gaming Commission
~ September 12 1995 - The commission issues a fmding of preliminary suitability to Boyd Kansas City Inc
September 13 1995 - The commission grants the petition ofHarrahs Maryland Heights Corporation and Players Maryland Heights Inc to operate continuously docked excursion gambling boats at their joint venture in Maryland Heights
)gt- September 13 1995 - The commission issues an excursion gambling boat license to Boyd Kansas City Inc
)gtshy November 16 1995 shy The commission fines the following companies for associating with either socially or in business affairs persons with felony police records or persons with a notorious or unsavory reputation Boyd Kansas City Inc Harrahs North Kansas City Corporation The Missouri Gaming Company
1996
)gtshy February 15 1996 - The commission grants continuous docking rights to Aztar Missouri Gaming Corporation for a second boat in Caruthersville Harrahs North Kansas City for a second boat and Kansas City Station Corporation for two boats in Kansas City
~ April 16 1996 - The commission grants continuous docking rights to Argosy in Riverside Missouri S1 Joseph Riverboat Partners and 81 Charles Riverfront Station
~ May 15 1996 - The commission issues a license to Harrahs North Kansas City for the Lucky Star This is the second boat at the Harrahs North Kansas City mcility Included in the project is a 200-room hotel expanded parking and meeting space
~ June 19 1996 -- The commission places William Canunisano Jr on Exclusion List
~ June 27 1996 - The commission places Peter Simone and Anthony T Civella on Exclusion List
August 28 1996 - The commission takes disciplinary action against Boyd Kansas City Inc for periodic failure to take and report turnstile readings
~ October II 1996 - The commission issues a finding of prel iminary suitability to Hilton Kansas City Corporation and Flamingo Hilton Riverboat Casino LoP
October 18 1996 - TIle commission issues a Class B riverboat gambling license 10 HUlon KlIlIStIS City Corporation and a CltlSs A riverboat gambling license 10 Flamingo Hillon Riverboat CtlSino LP
Missouri Gaming Commission 1996Annual Report - Page 19
Outline of a Background Investigation
Review Application fin Completeneiis
~ Establish number ofkey people
~ Check disclosure forms for completeness
gt Check tax release forms
City Selection Process
~ Contact city to determine how the gaming operator was selected
gt Interview Mayor and City Council members
~ Ifa steering committee was used interview members of that committee
Determine ifany city officials own stock in the selected gaming company
~ Obtain minutes ofcouncil meetings that pertain to riverboat issues (a)selection (b) resolution and (c) ordinance
gt Contact city attorney who handled negotiations with gaming company and obtain correspondence between city and gaming company
~ Contact City Economic Development Director (if applicable)
Docksite
gt- Land selected for gaming operation
J Who was it purchased from (how long have they owned the property) J Price (copy ofcontract)J Copy of plat map and legal description J Determine ifany ofcity officials or selection committee members have
ownership interest in docksite
gt Corps ofEngineers Permit
J Status
J Any concerns by Corps J Wetlands involved
~ Contact DNR for any known concerns in area
gt Check with city for any known dwnpsites with possible hazardous material
gt Developmental agreement between city and gaming operator (obtain copy from city)
gt Detennine if development is feasible
J Is support facility land based or floating J Projected nwnber ofjobs economic aid to area J Traffic flow to area - what improvements are needed - who will pay
for improvements
Riverboat
gt Locate boat and obtain all infonnation about boat (cruise schedule liability carrier)
gt Establish design ofriverboat
gt Determine emergency medical plan for boat
gt Determine ifCoast Guard and other safety requirements have been met
Gaming Operator (Public Corporation Partnership Private Company)
gt Establish contact person with operator
J Determine attorney of record for gaming company J Any missing items from application advise contact person
gt Establish home office (Financial Headquarters)
J Determine a good date and location where all key people can be contacted for a personal interview
J Where can financial record be located
Missouri Gaming Commission 1996Annual Report - Page 20
~
Outline of a Background Investigation
J Breakdown ofmanagement (corporate Board ofDirectors major stockholders)
J Establish flow chart of key people and companies owned by gaming operator
~ Investigation ofKey People will include but not be limited to the following
J Check previous employment work records J Check state local and federal intelligence files J Check for other gaming licenses ifapplicable (check with appropriate
regulators)J Check state federal and local courts for any civil litigation J Check for any arrest record J Check personal and business credit J Check state and local tax status IRS will handle federal taxes
gt Other locations ofgaming operations (currently operating and pending locations)
J Contact gaming regulators for respective locations J Travel to sites to view operations
Establish a file for all key people investigated with summaries establish a file for financial records with summary offinancial viability ofcompany and ability to complete obligations to the city and State ofMissouri Establish a file for other locations of licensure along with summary
Associated Investigations
gt All allegations of Any nature must be investigated and a file established with a written summary
~ Associated investigations must be done in a complete and thorough manner and all reports written accurately
gt Upon completion ofall investigations complete reports and summaries a separate press releasable summary must be written This summary must be approved by Gaming Commission legal staff
Missouri Gaming Commission 1996 Annual Report - Page 21
------------
--------
-----
------
---
---------
----------
Missouri Gaming Commission Compliance Audit Objectives for Licensees
ObjectiveAudit Area ~~~~~~~~~
To ensure accuracy of ticket and turnstile counts reported to MGC including compsIVlPs stayovers and promotions
Table Games
Ticketffurnstile
To ensure accuracy of AGR for table games reported to MGC
Electronic Games To ensure accuracy of AGR for electronic games reported to MGC
Cage Accowltability To ensure accuracy ofcage accountability forms and compliance with internal controls and tax reporting regulations
Observations Cage Main Bank Pit Area Slot Area Turnstile Ticketing
PurchaselRedemptions
$500 Loss Limit
Stayover Procedures
To determine that cashiers are complying with internal controls for chips tokens gaming scrip and cash
To determine compliance with MO statutes and internal controls
To determine compliance with MGC regulations and internal controls
To ensure that manual jackpot payouts are properly handled and the required tax fomIS are completed Manual Jackpot Payouts
To ensure that hopper fills are properly handled and comply with internal controls Hopper Fills
To ensure that table fills are properly handled and comply with internal cootrols Table Fills
To ensure that table credits are properly handled and comply with internal controls Table Credits
To ensure that tracking procedures comply with internal controls and the currency transactions are properly completed Patron TrackingCurrency Transaction Reporting
Imprest Bank Balancing To ensure that proper balancing and accountability is performed during a shift change
Coin Vault To ensure proper maintenance of coin chip and token inventory
Satellite CageSSlot Booths To ensure compliance with internal controls and consistency with main cage procedures
TipsGratuities To ensure compliance with MGC regulations and internal controls
Cage AccessSecurity To ensure compliance with internal controls
Turnstile To ensure accuracy of turnstile count for admissions tax calculation
Ticketing To ensure comp Hance with internal controls and proper handling of stubs voids and issuance
MiscellaneousOther
Surveillance Tapes To review activity for hard soft and tip counts and drops to verify compliance with internal controls
Workpaper Preparation and To establish standardized procedures for MGC audit workpapers and audit reports Audit Reports
-
Missouri Gaming Commission 1996 AnnualReport - Page 22
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Audit Area
Monthly Financial Statement Review
Engagement Letters
Objective --shy
To perform a preliminary review ofmonthly financial statement information for proper completion of fmandal statement templates verification ofadjusted gross receipts to MGC reports and to detect any unusual items which justifY further review when conducting on-site audit
To give advance notification to each boat of the date and scope ofaudit being performed
Financial Statement Verification To determine consistency ofmonthly financial statement information submitted to MGC with boats general ledger system
Balance Sheet Accounts
CashCash Reserve Balance
Cash Receipts
Cash Disbursements
shy -- shy
To determine the existence consistency and fair presentation of the cash balance on the monthly fmancial statements
To determine the consistency and filir presentation of the cash balance on the monthly financial statements and the source of large cash receipts other than gaming revenue
___I
To determine the consistency and fair presentation of the cash balance on the monthly fmancial statements and to trace the outflow of large cash disbursements
i
I
--
AccountslN Notes Receivable
Accrued Admission and Gaming Tax Liability
Chip and Token Liability
Progressive Jackpot Liability
To determine the consistency and fair presentation of the accounts receivable andor notes receivable balance in the monthly fmancial statements
To determine the consistency and fair presentation of the accrued admissiongaming tax liability balance in the monthly financial statements
To determine the consistency and fair presentation of the chip and token liability balance in the monthly financial statements
To determine the consistency and fair presentation of the progressive jackpot liability balance in the monthly fmancial statements
---shy
Tips and Gratuities (Accrued Liability)
Customer Deposit Liability
Accounts Payable
Income Statement Accounts
Revenne - Table Games
To determine the consistency and fair presentation of the accrued tips and gratuities liability in the monthly fmancial statements
-lt ---- shy
To determine the consistency and fair presentation of the customer deposit liabilities in the monthly fiscal statements To determine the consistency and fair presentation ofaccounts payable balance in the monthly fmancial statements
--shy
To determine the consistency and fair presentation of table games revenue as reported to MGC daily and in the monthly fmandal statements
Revenue - Electronic Games To determine the consistency and fair presentation of electronic games revenue as reported to MGC daily and in the monthly financial statements
Missouri Gaming Commission 1996 Annual Report - Page 23
------------
---------
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Revenue - Admissions To detennine the consistency and fair presentation ofadmissions revenue as reported to MGC daily and in the monthly fmancial statements
Promotional Expense To determine that comps are properly recorded as expenses and not deducted from revenue in accordance with GAAP
Pre-Opening Costs To determine whether certain pre-opening and licensing costs are properly expensed or amortized over future periods in accordance with GAAP
Workpaper Preparation and Audit Reports To establish standardized procedures for MGC audit workpapers and audit reports
AissOllri Gamillg Commission 1996 Anllual Report - Page 24
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AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
c
Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
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I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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I IAztar Missouri Corporation
r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
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Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
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$lot Machines 349
Missouri Gaming Commission Contributions to Education
Fiscal Year 1995
Gaming Proceeds for Education $ 5661628204
Bingo Tax Proceeds for Education $ 625370396
FY95 Tax Revenue from Gaming $6286998600
Fiscal Year 1996
Gaming Proceeds for Education $9973032067
Bingo Tax Proceeds for Education $ 468417852
FY 96 Tax Revenue from Gaming $10441449919
Total Tax Revenue from Gaming 516728448519
Does the GamblingMoneYiReallyGoo Fund Education
This may be the question inostfrequently asked ofpublic officials The simple answer is yes it does Pursuant to aconstitution~lamendntent passed by theGeneraIAssemblyasSJk 20 in 1992 andapproved bythe voters in a subsequent general electionmiddotall state tax money derived from the proceeds ofgamblirigisspent on education
The text ofthisconstitutional provision contained inArtiete 1lISection 39(d) reads as follows
All state revenues derived from the conduct ofaUgaming activities as are now or hereafter authorized by thiscomtitution orbyJaw unless otherwise provided bylaw on the ~ffectivedateofthissectionshallbemiddot appropriated beginoingJuly 1193solely for the pl1blic instittitions of elementary secondary and higheredueatioll and shaH~ot be included within the defmitionoftotal staterevenues in sectioid 7ofarticle X of this constitution
The tax revenues derivedfimnthe proceeds ofgambling foifiscalyeart998 are estimated to be $155 millionmiddot In ~d~itionto thegamblingm~neymiddot traditional stategeneralrevelluefundingfor publicschoo~ bas Uicreased every year since riverboatgillllblingwasenacted Thetotalstatebudget for educationwhichrepresents approximately 50of the average local school budget is $2965 billion Theg~~lIDgnlOney was designedtoslipplel1lent not replace the primatySufCeS ofpqb lie school fuDding[befunds derived from gambling have be~nusedfortheOiltstandingSchools TtilStFundthemiddotmiddot SchoolDistrict Bond Fund fotmainteniuiceandcapital exp~nclilures for public colleges and universities and to supplcentmenttheschool foundlltionmiddot formula
Missouri Gaming Commission 1996 Annual Report - Page 8
middot Where Does All the middot Gaming Tox Money Go
Orgallizationai Structure OFFICE OF THE EXECUTIVE DIRECTOR
Thomas J Irwin was named Executive Director by the Commission on October 21 1993 Mr Irwin came to the Commission after serving 3 years as Executive Assistant to St Louis County Executive Buzz Westfall Mr Irwin is a graduate ofHarvard University where he earned his masters degree from the Kennedy School ofGovernment He has served as the Chief Budget Officer for the Boston Police Department and was the Executive Assistant for Intergovernmental Affairs for St Louis mayor Vince Schoemehl from 1982 to
1988 Mr Irwin is a veteran of the United States Marine Corps having served
in Vietnam in 1968
i i Mr Irwin is responsible for the day-to-day operations of the
Commission He supervises all staff activities and reports to the Commission Among the staff positions reporting to the Director is Public Information
i K Officer Harold Bailey Mr Bailey is responsible for organizing and
distributing all public documents and reports
I In addition there are six primary functions of the Commission that
it have been divided into sections that report directly to Mr Irwin including
Administration Audit Bingo Corporate Securities Enforcement amp
t ~
Investigations and Legal amp Legislative Affairs
I ADMINISTRA110N
The administration section headed by Deputy Director Deborah A Ferguson provides a range of administrative financial and technical services to
help the Commission accomplish its goals The administrative services can be divided into the following functions accounts payable accounts receivable purchasing data processing budget facility leasing and human resources Accomplishments of the administration section would not have come to pass without the assistance ofChiefAccountant Denny Hodges Persomlel Officer Vicki Glenn Records Administrator Michael Shelhnan and Data Processing Manager John Bluma The administration staff benefited from the addition ofTen a Smith Diane Riddle and Mike Brizendine
The administration section continues to be a focal point of activity with the continued growth of the gaming industry l1te highlight of this past year was the relocation of the Jefferson City office Plaooing and design for the Jefferson City office began in 1995 and culminated with the move in September 1996 Highlights of the new building include a hearing room to conduct Commission meetings adequate file space to house the Commission
records that will be relocated from the St Louis office and the merging of the Bingo and Gaming staff into one facility to enhance coordination ofdaily activities
More specifically the duties of this section are as follows
~ Billing licensees for the processing and aoouallicenses issued to Level One and level Two Occupational employees that work for each riverboat To date there are approximately 9000 licensed employees
~ Billing licensed operators for the full cost of the enforcement agents assigned to each boat
~ Maintaining all Commission fmancial and personnel records which includes the monthly reconciliation of the Gaming Commission fund balance and processing aU payments made by the Commission
gt Preparation and implementation of the Commissions annual budget to ensure compliance with legislative intent
~ Handling all personnel matters and employee training and establishing and implementing written office policies for Commission staff
gt Preparation of fiscal notes to provide estimates to proposed legislation
Data Processiltg
The Data Processing section headed by John Blunm had a busy year in 1996 which included major systems developments as well as the daunting task of moving the Jefferson City office to a new location Some ofthe accomplishments of this important section include
~ Opening new commission offices for its agents at licensed premises
~ Moving the Jefferson City offices of the Riverboat Gaming and the Bingo workgroups to the new location This involved moving all computer workstations servers communications processors and printers to the new
Missouri Gaming Commission 1996 Annual Report - Page 10
building The two separate networks were consolidated into one large network that provides email between all members ofthe two sections for the fIrSt time and allows sharing of peripheral equipment such as laser printers
gt Final testing and implementation ofa billing system for enforcement billing to reimburse the state for expenses related to regulating the casino gaming industry
~ Automation ofannual MULES checks required of the 9000 plus gaming occupational license holders eliminating hundreds ofhours ofdata entry time
gt Upgrade of the physical inventory system to provide more complete reports and to track add-on costs to major inventory items
gt Design and development ofan occupational license history tracking system to provide a complete picture of license payments changes in license status duplicate badges issued and changes in employment status
gt Enhancing existing systems to meet new statutes and rules and regulations
AUDET
The audit section is responsible for the critical function ofensuring that the operators pay their taxes promptly and accurately This section headed by Jolm Davis former Internal Revenue Service Manager developed the Commissions tax remittal system that allows the Commission to capture tax remittance data on a daily basis The operators returns are audited by compliance audit siaffheaded up by senior accountant Kara Hardaway
The audit section also develops audit programs reviews and approves each boats system ofintemal controls conducts on-site performance audits reviews the quarterly CPA audits ofAdjusted Gross Receipts Tax and Admission Tax and reviews all internal audit reports prepared by the casinos internal audit staff
During 1996 the audit section revised Minimum Internal Control Standards that all operators must meet These standards were developed by the
audit staff after a lengthy review process that involved input from the IRS enforcement officers and industry experts
The audit section also implemented a system for tracking and depositing all non-tax revenue received from applicants such as application fees from applicants and reimbursements for Commission services
A summary ofsome ofthe audit sections programs and objectives is contained on page 22
BINGO
The Bingo Division is comprised ofthree separate sections which include the Administration Licensing Audit and Enforcement The Bingo Division Supervisor is Ron Pleus The Audit Section Supervisor is Randall Cahill and the Enforcement Section Supervisor is Sergeant Dwight Franklin The bingo statutes have been revised significantly in recent years requiring many administrative changes to occur within the Division Among the more daunting projects were the establishment ofa new licensing category for hall providers and the implementation ofa new supplier-based tax Specific duties within the three sections of the Bingo Division and the recent statntory changes are briefly outlined below
AdministrativeILicensiog Section - This section is responsible for the processing ofall correspondence and the licensing and maintenance ofover 1500 operator licensees which include all regular and special event bingo operators licenses and 200 hall providers annually This section deposits and records an tax and license receipts received on a daily basis This unit maintains a data base of over 31000 records ofindividuals that are involved in the management conduct andor operation ofbingo games and 3000 records of individuals involved as owners and officers of licensed Hall Providers Currently this staff consist ofthree employees Jane Bax Pam Murphy and Tina Freese In conjunction with the data processing staff the administrative section has developed an automated renewal application system which became fully operational January 1996 This system simplifies the renewal process for the licensee and eliminates wasted steps and duplicate information The system has proven to be a tremendous time saver for the not-for-profit volunteer organizations who are required to file renewals and also helps to reduce the staffmg cost and other administrative cost for the Division
Missouri Gaming Commissioll 1996 Allnual Report ~ Page 11
Audit Section - This section is responsible for the timely audit of all Bingo Product Manufacturers and Suppliers and assisting the Enforcement Section with oil-site inspections of bingo operators The audit staff has developed a comprehensive Manufacturer and Supplier audit procedure manual and has developed procedures for the inspection ofbingo operators The procedures for the inspection of bingo operators are used by both the Enforcement and Audit Staffs The audit section has audited all of the licensed Manufacturers and Suppliers during fiscal year 1996 These audits resulted in over $32000000 in unreported taxes and penalties The auditors also assisted enforcement with inspections and investigations of unlicensed suppliers and operators The section conducts on-site inspections of formerly licensed suppliers to determine ifthe products in inventory were being disposed of in accordance with the statutes The audit staff also assists the administrative staff in auditing the operators quarterly repom
Enforeement Section - This section is headed by Sgt Dwight Franklin a 17 year veteran ofthe Missouri Highway Patrol Sgt Franklin has six (6) officers assigned to the enforcement section Their duties include background investigations of all Manufacturers and Suppliers to include all the key personnel in those companies These investigations include criminal checks fmancial checks past employment history and all litigation involving the applicant In addition the enforcement section is responsible for investigating complaints on the licensed bingo organizations The complaints range from minor rule violations to thefts of large sums of money Complaints are received on a daily basis and are investigated on the basis of severity location and available manpower An additional duty of the Enforcement Section is to complete background investigations on all new potential employees of the Gaming Commission
CORPORATE SECURITIES AND FINANCE
The Commission has established a Section of Corporate Securities and Finance to address the challenge ofregulating the complex fmancial corporate structuring and contractual transactions involving publicly traded and privately held gaming companies This section is comprised of staff trained in legal accounting and business matters to perform examinations of these transactions
The suitability issues examined by the Corporate Securities and Finance Section include complex fmancial and legal suitability issues such as fmancial soundness corporate control legal compliance and procedural licensing issues
The sections examinations are coordinated closely with the Enforcement Division for background investigations and disciplinary matters
Typical transactions that are examined by the section include mergers and acquisitions public debt and equity issuances and private financings such as bank loans and credit facilities The goal of this new section is to provide the Commission with more thorough and sophisticated investigations and analysis of the suitability ofgaming companies and with a uniform system for providing this analysis on corporate securities and fmance issues Through this section the Commission hopes to identifY suitability problems ofapplicants and licensees earlier and more efficiently and to identifY plan for and possibly even avoid potential business closures of licensees due to fmandal matters
The Corporate Securities and Finance Section is headed by the Commissions General Counsel Greg Orner who reports directly to the Executive Director on corporate securities and finance matters The section also includes a Chief Financial Analyst position to be filled soon which will oversee the work ofthe fmancial staff examining the corporate secwities and fmance transactions
The Conunissions Financial Manager Pam Brown haS handled the fmandal analysis of the reported transactions up to now and will continue to perfonn many of the more complex transaction examinations and oversee the work of an accountant Pam Wheelis and a fmancial analyst (planned to be added next year) who are also assigned to the section
ENFORCEMENT
Enforcement for the Missouri Gaming Commission is provided by officers of the Missouri State Highway Patrol and agents of the Internal Revenue Service by way of Memorandums ofUnderstanding which set forth the responsibilities ofeach entity
The enforcement section is headed by Mel Fisher former Superintendent of the Highway Patrol The Gaming Division ofthe Highway Patrol is headed by Captain Dwight Hartung There are seventy-seven officers assigned to the Gaming Division and an additional six officers assigned to the Bingo Enforcement Unit
Some of the advantages ofusing Highway Patrol Officers as gaming agents include
JtfisSOUli Gaming Commission 1996 Annual Report - Page 12
the staff assigned are trained specialists in law enforcement and investigations thus saving the Commission the time effort and expense of recruitment and training
because the agents are licensed law enforcement officers they command immediate respect when interacting with licensees and customers aboard a riverboat as well as when they are in a foreign jurisdiction conducting an investigation
~ the Commission feels that it is important to rotate enforcement staff aboard the various boats this process is much easier with seasoned law enforcement officers who are used to being rotated between assignments as well as in and out of the gaming division
gt provides the ability to access sensitive law enforcement information from other jurisdictions
gt their experience in conducting investigations and handling emergency situations has proven invaluable
The Commissions background investigation units consist of three Highway Patrol Officers and one IRS agent The background investigations conducted by the Missouri Gaming Commission are thorough and take approximately four months to complete if no unusual complications or delays emerge The Commission not only investigates the finances and activities of the company and all its key people but traces the source ofall their funds to ensure that no criminal elements are funding the operation from behind the scene An outline that provides a sketch of a typical background investigation is contained on page 20
LEGAL amp LEGISLATIVE AFFAIRS
The legal amp legislative affairs section is responsible for all legal matters presented to the commission prior to litigation Any litigation involving the commission is handled by the Attorney Generals office In addition this section which is headed by Deputy Director Kevin Mullally develops and drafts legislation endorsed by the commission as well as all rules and regulations Moreover the legal section manages an administrative appeals docket where Mullally serves as Hearing Officer
Greg Orner serves as the commissions general coWlSel and works closely with the enforcement staff reviewing incident reports investigative issues and possible disciplinary actions In addition Mr Omer heads the Corporate Securities section
Some of tbe otber responsibilities of the legal section include
~ Drafting all resolutions for all commission actions and
gt preparing disciplinary complaints and denial orders for proposed action against licensees and
gt conducting quasi-legislative hearings on issues such as continuous docking and boat design and
gt providing legal research services and
gt organizing and maintaining records ofall official commission actions and commission policies and
gt handling inquiries from legislators constituents and other state regulatory agencies
The commissions legal staff is supported by paralegal Heather Grefrath and legal secretary Susan Sundermeyer This support staff is critical to daily operations ofthe legal section and is particularly valuable in the sections role in preparing and managing the rules and regulations all documents necessary for commission meetings and all documents declaring commission policy
In 1997 the legal section will be augmented with the addition ofstaff attorney Robert Little
PENDING LITIGATION
The Missouri Gaming commission denied one occupational license in 1994 thirteen occupational licenses in 1995 and thirty-five occupational licenses in 1996 Each aplicant is presumed WlSuitable and has the burden of proof to prove his or her suitability to the Conunssion An individual may request a hearing to attempt to prove suitability to the Commission by serving
Missouri Gaming Commission 1996Annual Reporl- Page 13
such a request on the commissions Executive Director The following is a list of pending litigation
Petitioner Venue
Bingo Systems amp Supply AHC Cape Girardeau Elks Lodge 639 AHC Cape Girardeau VFW Post 3838 AHC Edwin Pete Rhodes AHC Ideal Bingo Supplies Inc AHC Mary Cracchiolo AHC Maureen L Scott AHC Meramec-Amold Eagles Auxiliary AHC Myron B Carter Sr AHC Pan-Education Institute AHC Raymond J Drury AHC Raytown Women of Today AHC Sandra Termini AHC Stanley L Turner AHC Missouri Gaming Co ~Disc Action MGC Harrahs -Disciplinary Action MGC Boyd Kansas City Inc -Disc Action MGC Jeffery Koester -Denied License MGC Gary Franklin -Denied License MGC Mark Zwolle -Disciplinary Action MGC Anthony Civella -Exclusion MGC Peter Simone -Exclusion MGC Yolanda Nettles MGC Tracy Anderson MGC Carrie Gentry MGC Jimmie B Carsey MGC Cape Girardeau Elks amp VFW Circuit Court ofCape Girardeau County MGC v Veterans Commission
st Louis Public Schools Missouri Supreme Court W Todd Akin v MGC Missouri Supreme Court William D Cmmnisano Jr Missouri Court ofAppeals-Western District Pen-Yan Investment Inc Missouri Court ofAppeals-Western District
SUMMARY OF PENDING LITIGATION
There are fourteen bingo cases pending in the Administrative Hearing Commission
There are three disciplinary cases at the Commission level against gaming licensees pending the outcome ofPen-Yon Investment Inc v Boyd Kansas City Inc and MGC
Pen-Yon Investment Inc v Boyd Kansas City Inc MGC is pending in the Missouri Court ofAppeals Western District regarding disciplinary action taken against Boyd for associating in business affairs with a person who has a felony police record The Commission imposed a fine against Boyd and prohibited Boyd from collecting or distributing any funds from the machines under its service agreement with Pen-Yan
MGC v Missouri Veterans Commission St Louis Public Schools is pending in the Missouri Supreme Court regarding funds received from fmes imposed by the Commission
In W Todd Akin et 01 v MGC the Circuit Court ofCole County ruled in favor of the commission on summary judgment The suit challenges the Commissions authority to grant or deny Harrahs Maryland Heights Corp and Players Maryland Heights LP a license for a continuously docked excursion gambling boat within a man-made basin filled by water from the Mississippi River The petitioners have appealed and the matter is now before the Missouri Supreme Court
Cape Girardeau Elks Lodge et aI v MGC is pending in the Circuit Court of Cape Girardeau County regarding the Commissions decision to suspend the Cape Girardeau Elks Lodge bingo license
In the Matler oWilliam D Cammisano Jr there is an appeal pending in the Missouri Court ofAppeals Western District regarding the Commissions decision to place Mr Cammisano on its List of Excluded Persons
MISSOURI GAMING COMMISSIONS EXCLUSION LIST
The Missouri Gaming Commissionplaced two individuals in 1994 two individuals in 1995 and two individuals in 1996 on the commissions Exclusion List Placement of these individuals on the Exclusion List has been based on prior convictions
As a result of placement on the Exclusion List each individual shall not be permitted eoby into any portion of a riverboat gaming operation within the state ofMissouri and shall be ejected ifdiscovered on such premises Furthermore Excluded Persons shall be prohibited from contact of any kind with Missouri riverboat gaming operations Persons placed on the Listmay file a written petition with the Commission to request a hearing to have their name
JlrJissOIlri Gaming Commission 1996 Annual Report - Page 14
removed from the Exclusion List Currentlyone individual has appealed to the Western District of Missouri and two otbers are pending hearings by the Missouri Gaming Commission
MISSOURI GAMING COMMISSIONS DISCIPLINARY ACTIONS AGAINSTOCCUPATIONAL LICENSEES
The Missouri Gaming Commission has taken disciplinary action against twenty-eight occupational licensees as of September 30 1996 Preliminary
Orders for Disciplinary Action set forth statements of fact that support the proposed disciplinary action and the regulatory and statutory sections involved Individuals may request a hearing by serving such a request on the Commissions Executive Director Currently four individuals have sought hearings before the Commission one ofwhich is stm pending
Occupational License Denials 1994-1996
40
l 30
lt0 c Q)
0 lt5 20 i-Q) 0 E ~ 10
o Year Licenses 1994 1995 1996 IiiI Licenses Denials 1 13 35
Voluntary Exclusions On December 30 1996 after six months of research and consultation the
commission established a unique program to combat problem gambling The List of Disassociated Persons is the result of many months ofconsultation with treatment professionals that help problem gamblers The program allows problem gamblers to exclude themselves from Missouri riverboat casinos under the threat ofarrest for trespassing
In exchange for agreeing not to patronize Missouri riverboat casinos the problem gambler is removed from all casino mailing lists and direct marketing promotions In addition the operators are required to deny persons on the List check cashing privileges and must take away their VIP or players club card
Treatment professionals have advised the commission that the only way for a problem gambler to get help is to admit that heshe has a problem and to accept personal responsibility for that problem by seeking treatment
The Disassociated Persons program is a valuable tool in addressing problem gambling because it requires the individual to admit to having a gambling problem to agree to seek treatment and stay away from gambling casinos Furthermore it includes severe consequences if the problem gambler succumbs to the temptation to gamble Moreover it offers some protection to the problem gambler from the marketing promotions that encourage people to visit the casino properties
The program operates in the following manner
~ The problem gambler must obtain an application for placement on the List ofDisassociated Persons from the commission
~ the application contains various information about the individual an admission that the person is a problem gambler and agrees to stay off Missouri riverboats and seek treatment an authorization to release this information to riverboat operators as well as a Waiver releasing the commission and the licensee from any liability associated with enforcing the rules of the program
~ the application must be personally presented to a commission agent at which time the information is verified and the rules of the program are explained
~ the application is a closed record and its contents may only be disclosed to necessary commission and riverboat personnel
~ the commission considers all applications in closed session
~ once a person is placed on the List heshe cannot petition for removal After consulting with treatment professionals the commission concluded that problem gambling requires lifetime treatment and therefore there is no procedure for removal from the List
Missouri is the frrst jurisdiction in the world to propose a program such as this We will continue to monitor and refme the program and look forward to reporting to you on its impact in next years annual report
ft-Iissouri Gaming CommissiOil 1996 Annual Report - Page 16
Brief Timeline of Riverboat Gaming in Missouri ~ May 13 1991 - General Assembly passes House Bill 149 which authorized
referendum to be submitted to the voters in the November 1992 election to determine whether the State Tourism Commission shall have the power to issue riverboat gambling licenses
gt November 31992 - Missouri voters pass referendum allowing riverboat gaming with a majority ofnearly 63
gt January 1993 - Governor Carnahan announces intentions to push legislation creating an independent Gaming Commission to oversee riverboat gambling
April 29 1993 -- SBs 10 amp 11 creating the Missouri Gaming Commission are signed into law by Governor Carnahan and five Commissioners are appointed Robert Wolfson Chairman Robert Clayton William Quinn Dr Jenice Stewart and Avis Tucker
gt April 30 1993 -- Troy Harris et al v The Missouri Gaming Commission amended petition is filed The petition challenges the constitutionality of Senate Bills 10 amp II
gt- May 17 1993 -- The Missouri Gaming Commission holds its first meeting
~ September 1 1993 -- Proposed Rules and EmergencY Rules are adopted
gt September 20 1993 - 19 riverboat gaming license applications are filed with the commission
gt September 20 1993 - Clarence E Mel Fisher hired as Deputy Director for Enforcement
gt September 24 1993 - Commission contracts with the Internal Revenue Service to perform fmancial investigations for the commission Four IRS agents are assigned to the commission
~ September 28 1993 - Commissions enters into and inter-agency agreement with the Missouri State Highway Patrol to provide enforcement services for the commission
~ October I 1993 - Debbie Ferguson joins the commission as Deputy Director for Administration
November 3 1993 - Commission hires Tom Irwin as Executive Director and Kevin Mullally as Deputy Director for Legal amp Legislative Affairs
November 30 1993 -- Commission announces that it will begin background investigations on the following companies President Riverboat Casino-Missouri St Charles Riverfront Station Inc S1 Joseph Riverboat Partners The Missouri Gaming Company GDC (Supplier) IGT (Supplier) Casino Tokens (Supplier) Paul-Son Dice amp Card Company (Supplier)
gt December 22 1993 - Governor Carnahan signs Executive Order 93-50 designating the enforcement section ofthe Missouri Gaming Commission as a criminal justice agency
1994
gt January 25 1994 -- Missouri Supreme Court in Troy Harris v Missouri Gaming Commission strikes down games of chance including slot machines The court ruled that the Commission did have the authority to issue licenses to riverboat where games ofskill are played Specifically mentioned as games ofskill are poker and blackjack The Court remanded six games to lower court for determination as to whether they are games of skill or chance baccarat craps roulette wheel klondike table faro layout and video games ofchance
~ February 1 1994 -- Rules and Regnlations become effective
February 7 1994 -- Legislature passes resolution to place constitutional amendment on the ballot which would allow the legislature to approve games of chance (slot machines) on riverboats and floating facilities on the Missouri and Mississippi Rivers
gt- April 5 1994 -- Voters defeat constitutional amendment allowing games of chance (slot machines) by an unofficial count of 1263 votes
~ April 29 1994 - Finding of Preliminary Suitability issued to President Riverboat Casino S1 Charles Riverfront Station St Joseph Riverboat Partners and The Missouri Gaming Company
Missouri Gaming Commission 1996 AnnualReport - Page 17
Brief Timeline of Riverboat Gaming in Missouri ~ May 20 1994 -- Governor signs into law SB 740 which defmes games of
chance and enacts more stringent ethics provisions The bill also allows the commission to license a barge in an artificial basin as an excursion gambling boat if it can be demonstrated that safely concerns prevent an operator from cruising from that location
~ May 27 1994 - Commission authorizes as games of skin the following Blackjack Caribbean Stud Poker Poker Double Down Stud Poker Pia Gow Poker Poker Texas Hold Em the video representations ofthese games and Craps
gt May 27 1994 -- Commission authorizes President Riverboat Casino-Missouri to operate the Admiral as a continuously docked excursion gambling boat because cruising would cause danger to the boats passengers
gt May 27 1994 -- Gaming Commission issues first two excursion gambling boat licenses to President Riverboat Casino in st Louis and St Charles Riverfront Station in st Charles
gt May 27 1994 -- Initiative petition tbat would allow voters to approve games ofchance is submitted to the Secretary of State for approval of the form ofthe petition
~ June 6 1994 -- Secretary ofState notifies referendum petitioners that the Attorney General has approved the form of their petition The Secretary of State prepared the following petition title that was approved by the Attorney General
Shall the General Assembly be authorized to permit only upon the Mississippi River and the Missouri River lotteries gift enterprises and games ofchance to be conducted on excursion gambling boats and floating facilities
gt June 9 1994 -- Commission prioritizes Aztar Missouri Corporation Boyd Kansas City Inc and Harrahs North Kansas City as companies to be investigated for licensure pursuant to 11 CSR 45-4060
gt June 22 1994 -- Gaming Commission issues licenses to St Joseph Riverboat Partners in St Joseph and The Missouri Gaming Company in Riverside
~ September 20 1994 -- Commission issues a fmding ofpreliminary suitability to Harrahs North Kansas City Corporation
gt September 20 1994 -- Commission authorizes Harrahs North Kansas City Corporation and st Charles Riverfront Stationl to operate excursion gamblillg boats as continuously docked vessels In both cases the commission found that operating a cruising vessel from the proposed site would cause danger to the boats passengers and the project will generate permanent job creation and land-based development
gt September 22 1994 -- Harrahs North Kansas City Corporation is issued an excursion gambling boat license
gt September 28 1994 - Public hearing regarding Capitol Queen and Casino Jncs application for an excursion gambling boat license results in the commission denying CQCs license and prohibiting them from reapplying for two years
gt October 7 1994 - Commission places William D Cammisano Jr and John Termini on its list of excluded persons
gt November 8 1994 -- Voters approve games ofchance
~ December 9 1994 - Games ofchance are allowed on riverboats
gt December 27 1994 - St Charles Riverfront Station is issued a license to operate the St Charles II as an excursion gambling boat This marks the fIrSt time the commission has licensed a second excursion gambling boat for a single development
The approval was for St Charles Riverfront Stations second boat The flTSt boat continued to cruise until April 16 1996
Missouri Gaming Commission 1996 Annual Report - Page 18
Brief Timeline of Riverboat Gaming in Missouri 1995
)gt- February 22 1995 -- Commission announces it will begin background investigation on Hilton Kansas City Corporation for an excursion gambling boat license
~ March 30 1995 - State Auditor releases final audit report of the Missouri Gaming Commission No major deficiencies are noted
~ April 20 1995 - Commission repays $3 million start-up loan to state general revenue fund
)gt- April 25 1995 - Commission approves continuous docking petitions for Boyd Kansas City Inc and Hilton Kansas City Corporation
~ April 25 1995 -- The commission issues a finding ofpreliminary suitability to Aztar Missouri Gaming Corporation
~ April 26 1995 -- The commission issues an excursion gambling boat license to Aztar Missouri Gaming Corporation in Caruthersville Missouri
)gt- May 24 1995 - The commission announces it will begin background investigations on the following companies Harrahs Maryland Heights Corporation Kansas City Station Inc Players Maryland Heights Inc
gt August 28 1995 - Pursuant to House Bill 574 the duties of the Missouri Horse Racing Commission are transferred to the Gaming Commission
~ September 12 1995 - The commission issues a fmding of preliminary suitability to Boyd Kansas City Inc
September 13 1995 - The commission grants the petition ofHarrahs Maryland Heights Corporation and Players Maryland Heights Inc to operate continuously docked excursion gambling boats at their joint venture in Maryland Heights
)gt- September 13 1995 - The commission issues an excursion gambling boat license to Boyd Kansas City Inc
)gtshy November 16 1995 shy The commission fines the following companies for associating with either socially or in business affairs persons with felony police records or persons with a notorious or unsavory reputation Boyd Kansas City Inc Harrahs North Kansas City Corporation The Missouri Gaming Company
1996
)gtshy February 15 1996 - The commission grants continuous docking rights to Aztar Missouri Gaming Corporation for a second boat in Caruthersville Harrahs North Kansas City for a second boat and Kansas City Station Corporation for two boats in Kansas City
~ April 16 1996 - The commission grants continuous docking rights to Argosy in Riverside Missouri S1 Joseph Riverboat Partners and 81 Charles Riverfront Station
~ May 15 1996 - The commission issues a license to Harrahs North Kansas City for the Lucky Star This is the second boat at the Harrahs North Kansas City mcility Included in the project is a 200-room hotel expanded parking and meeting space
~ June 19 1996 -- The commission places William Canunisano Jr on Exclusion List
~ June 27 1996 - The commission places Peter Simone and Anthony T Civella on Exclusion List
August 28 1996 - The commission takes disciplinary action against Boyd Kansas City Inc for periodic failure to take and report turnstile readings
~ October II 1996 - The commission issues a finding of prel iminary suitability to Hilton Kansas City Corporation and Flamingo Hilton Riverboat Casino LoP
October 18 1996 - TIle commission issues a Class B riverboat gambling license 10 HUlon KlIlIStIS City Corporation and a CltlSs A riverboat gambling license 10 Flamingo Hillon Riverboat CtlSino LP
Missouri Gaming Commission 1996Annual Report - Page 19
Outline of a Background Investigation
Review Application fin Completeneiis
~ Establish number ofkey people
~ Check disclosure forms for completeness
gt Check tax release forms
City Selection Process
~ Contact city to determine how the gaming operator was selected
gt Interview Mayor and City Council members
~ Ifa steering committee was used interview members of that committee
Determine ifany city officials own stock in the selected gaming company
~ Obtain minutes ofcouncil meetings that pertain to riverboat issues (a)selection (b) resolution and (c) ordinance
gt Contact city attorney who handled negotiations with gaming company and obtain correspondence between city and gaming company
~ Contact City Economic Development Director (if applicable)
Docksite
gt- Land selected for gaming operation
J Who was it purchased from (how long have they owned the property) J Price (copy ofcontract)J Copy of plat map and legal description J Determine ifany ofcity officials or selection committee members have
ownership interest in docksite
gt Corps ofEngineers Permit
J Status
J Any concerns by Corps J Wetlands involved
~ Contact DNR for any known concerns in area
gt Check with city for any known dwnpsites with possible hazardous material
gt Developmental agreement between city and gaming operator (obtain copy from city)
gt Detennine if development is feasible
J Is support facility land based or floating J Projected nwnber ofjobs economic aid to area J Traffic flow to area - what improvements are needed - who will pay
for improvements
Riverboat
gt Locate boat and obtain all infonnation about boat (cruise schedule liability carrier)
gt Establish design ofriverboat
gt Determine emergency medical plan for boat
gt Determine ifCoast Guard and other safety requirements have been met
Gaming Operator (Public Corporation Partnership Private Company)
gt Establish contact person with operator
J Determine attorney of record for gaming company J Any missing items from application advise contact person
gt Establish home office (Financial Headquarters)
J Determine a good date and location where all key people can be contacted for a personal interview
J Where can financial record be located
Missouri Gaming Commission 1996Annual Report - Page 20
~
Outline of a Background Investigation
J Breakdown ofmanagement (corporate Board ofDirectors major stockholders)
J Establish flow chart of key people and companies owned by gaming operator
~ Investigation ofKey People will include but not be limited to the following
J Check previous employment work records J Check state local and federal intelligence files J Check for other gaming licenses ifapplicable (check with appropriate
regulators)J Check state federal and local courts for any civil litigation J Check for any arrest record J Check personal and business credit J Check state and local tax status IRS will handle federal taxes
gt Other locations ofgaming operations (currently operating and pending locations)
J Contact gaming regulators for respective locations J Travel to sites to view operations
Establish a file for all key people investigated with summaries establish a file for financial records with summary offinancial viability ofcompany and ability to complete obligations to the city and State ofMissouri Establish a file for other locations of licensure along with summary
Associated Investigations
gt All allegations of Any nature must be investigated and a file established with a written summary
~ Associated investigations must be done in a complete and thorough manner and all reports written accurately
gt Upon completion ofall investigations complete reports and summaries a separate press releasable summary must be written This summary must be approved by Gaming Commission legal staff
Missouri Gaming Commission 1996 Annual Report - Page 21
------------
--------
-----
------
---
---------
----------
Missouri Gaming Commission Compliance Audit Objectives for Licensees
ObjectiveAudit Area ~~~~~~~~~
To ensure accuracy of ticket and turnstile counts reported to MGC including compsIVlPs stayovers and promotions
Table Games
Ticketffurnstile
To ensure accuracy of AGR for table games reported to MGC
Electronic Games To ensure accuracy of AGR for electronic games reported to MGC
Cage Accowltability To ensure accuracy ofcage accountability forms and compliance with internal controls and tax reporting regulations
Observations Cage Main Bank Pit Area Slot Area Turnstile Ticketing
PurchaselRedemptions
$500 Loss Limit
Stayover Procedures
To determine that cashiers are complying with internal controls for chips tokens gaming scrip and cash
To determine compliance with MO statutes and internal controls
To determine compliance with MGC regulations and internal controls
To ensure that manual jackpot payouts are properly handled and the required tax fomIS are completed Manual Jackpot Payouts
To ensure that hopper fills are properly handled and comply with internal controls Hopper Fills
To ensure that table fills are properly handled and comply with internal cootrols Table Fills
To ensure that table credits are properly handled and comply with internal controls Table Credits
To ensure that tracking procedures comply with internal controls and the currency transactions are properly completed Patron TrackingCurrency Transaction Reporting
Imprest Bank Balancing To ensure that proper balancing and accountability is performed during a shift change
Coin Vault To ensure proper maintenance of coin chip and token inventory
Satellite CageSSlot Booths To ensure compliance with internal controls and consistency with main cage procedures
TipsGratuities To ensure compliance with MGC regulations and internal controls
Cage AccessSecurity To ensure compliance with internal controls
Turnstile To ensure accuracy of turnstile count for admissions tax calculation
Ticketing To ensure comp Hance with internal controls and proper handling of stubs voids and issuance
MiscellaneousOther
Surveillance Tapes To review activity for hard soft and tip counts and drops to verify compliance with internal controls
Workpaper Preparation and To establish standardized procedures for MGC audit workpapers and audit reports Audit Reports
-
Missouri Gaming Commission 1996 AnnualReport - Page 22
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Audit Area
Monthly Financial Statement Review
Engagement Letters
Objective --shy
To perform a preliminary review ofmonthly financial statement information for proper completion of fmandal statement templates verification ofadjusted gross receipts to MGC reports and to detect any unusual items which justifY further review when conducting on-site audit
To give advance notification to each boat of the date and scope ofaudit being performed
Financial Statement Verification To determine consistency ofmonthly financial statement information submitted to MGC with boats general ledger system
Balance Sheet Accounts
CashCash Reserve Balance
Cash Receipts
Cash Disbursements
shy -- shy
To determine the existence consistency and fair presentation of the cash balance on the monthly fmancial statements
To determine the consistency and filir presentation of the cash balance on the monthly financial statements and the source of large cash receipts other than gaming revenue
___I
To determine the consistency and fair presentation of the cash balance on the monthly fmancial statements and to trace the outflow of large cash disbursements
i
I
--
AccountslN Notes Receivable
Accrued Admission and Gaming Tax Liability
Chip and Token Liability
Progressive Jackpot Liability
To determine the consistency and fair presentation of the accounts receivable andor notes receivable balance in the monthly fmancial statements
To determine the consistency and fair presentation of the accrued admissiongaming tax liability balance in the monthly financial statements
To determine the consistency and fair presentation of the chip and token liability balance in the monthly financial statements
To determine the consistency and fair presentation of the progressive jackpot liability balance in the monthly fmancial statements
---shy
Tips and Gratuities (Accrued Liability)
Customer Deposit Liability
Accounts Payable
Income Statement Accounts
Revenne - Table Games
To determine the consistency and fair presentation of the accrued tips and gratuities liability in the monthly fmancial statements
-lt ---- shy
To determine the consistency and fair presentation of the customer deposit liabilities in the monthly fiscal statements To determine the consistency and fair presentation ofaccounts payable balance in the monthly fmancial statements
--shy
To determine the consistency and fair presentation of table games revenue as reported to MGC daily and in the monthly fmandal statements
Revenue - Electronic Games To determine the consistency and fair presentation of electronic games revenue as reported to MGC daily and in the monthly financial statements
Missouri Gaming Commission 1996 Annual Report - Page 23
------------
---------
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Revenue - Admissions To detennine the consistency and fair presentation ofadmissions revenue as reported to MGC daily and in the monthly fmancial statements
Promotional Expense To determine that comps are properly recorded as expenses and not deducted from revenue in accordance with GAAP
Pre-Opening Costs To determine whether certain pre-opening and licensing costs are properly expensed or amortized over future periods in accordance with GAAP
Workpaper Preparation and Audit Reports To establish standardized procedures for MGC audit workpapers and audit reports
AissOllri Gamillg Commission 1996 Anllual Report - Page 24
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AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
c
Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
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Orgallizationai Structure OFFICE OF THE EXECUTIVE DIRECTOR
Thomas J Irwin was named Executive Director by the Commission on October 21 1993 Mr Irwin came to the Commission after serving 3 years as Executive Assistant to St Louis County Executive Buzz Westfall Mr Irwin is a graduate ofHarvard University where he earned his masters degree from the Kennedy School ofGovernment He has served as the Chief Budget Officer for the Boston Police Department and was the Executive Assistant for Intergovernmental Affairs for St Louis mayor Vince Schoemehl from 1982 to
1988 Mr Irwin is a veteran of the United States Marine Corps having served
in Vietnam in 1968
i i Mr Irwin is responsible for the day-to-day operations of the
Commission He supervises all staff activities and reports to the Commission Among the staff positions reporting to the Director is Public Information
i K Officer Harold Bailey Mr Bailey is responsible for organizing and
distributing all public documents and reports
I In addition there are six primary functions of the Commission that
it have been divided into sections that report directly to Mr Irwin including
Administration Audit Bingo Corporate Securities Enforcement amp
t ~
Investigations and Legal amp Legislative Affairs
I ADMINISTRA110N
The administration section headed by Deputy Director Deborah A Ferguson provides a range of administrative financial and technical services to
help the Commission accomplish its goals The administrative services can be divided into the following functions accounts payable accounts receivable purchasing data processing budget facility leasing and human resources Accomplishments of the administration section would not have come to pass without the assistance ofChiefAccountant Denny Hodges Persomlel Officer Vicki Glenn Records Administrator Michael Shelhnan and Data Processing Manager John Bluma The administration staff benefited from the addition ofTen a Smith Diane Riddle and Mike Brizendine
The administration section continues to be a focal point of activity with the continued growth of the gaming industry l1te highlight of this past year was the relocation of the Jefferson City office Plaooing and design for the Jefferson City office began in 1995 and culminated with the move in September 1996 Highlights of the new building include a hearing room to conduct Commission meetings adequate file space to house the Commission
records that will be relocated from the St Louis office and the merging of the Bingo and Gaming staff into one facility to enhance coordination ofdaily activities
More specifically the duties of this section are as follows
~ Billing licensees for the processing and aoouallicenses issued to Level One and level Two Occupational employees that work for each riverboat To date there are approximately 9000 licensed employees
~ Billing licensed operators for the full cost of the enforcement agents assigned to each boat
~ Maintaining all Commission fmancial and personnel records which includes the monthly reconciliation of the Gaming Commission fund balance and processing aU payments made by the Commission
gt Preparation and implementation of the Commissions annual budget to ensure compliance with legislative intent
~ Handling all personnel matters and employee training and establishing and implementing written office policies for Commission staff
gt Preparation of fiscal notes to provide estimates to proposed legislation
Data Processiltg
The Data Processing section headed by John Blunm had a busy year in 1996 which included major systems developments as well as the daunting task of moving the Jefferson City office to a new location Some ofthe accomplishments of this important section include
~ Opening new commission offices for its agents at licensed premises
~ Moving the Jefferson City offices of the Riverboat Gaming and the Bingo workgroups to the new location This involved moving all computer workstations servers communications processors and printers to the new
Missouri Gaming Commission 1996 Annual Report - Page 10
building The two separate networks were consolidated into one large network that provides email between all members ofthe two sections for the fIrSt time and allows sharing of peripheral equipment such as laser printers
gt Final testing and implementation ofa billing system for enforcement billing to reimburse the state for expenses related to regulating the casino gaming industry
~ Automation ofannual MULES checks required of the 9000 plus gaming occupational license holders eliminating hundreds ofhours ofdata entry time
gt Upgrade of the physical inventory system to provide more complete reports and to track add-on costs to major inventory items
gt Design and development ofan occupational license history tracking system to provide a complete picture of license payments changes in license status duplicate badges issued and changes in employment status
gt Enhancing existing systems to meet new statutes and rules and regulations
AUDET
The audit section is responsible for the critical function ofensuring that the operators pay their taxes promptly and accurately This section headed by Jolm Davis former Internal Revenue Service Manager developed the Commissions tax remittal system that allows the Commission to capture tax remittance data on a daily basis The operators returns are audited by compliance audit siaffheaded up by senior accountant Kara Hardaway
The audit section also develops audit programs reviews and approves each boats system ofintemal controls conducts on-site performance audits reviews the quarterly CPA audits ofAdjusted Gross Receipts Tax and Admission Tax and reviews all internal audit reports prepared by the casinos internal audit staff
During 1996 the audit section revised Minimum Internal Control Standards that all operators must meet These standards were developed by the
audit staff after a lengthy review process that involved input from the IRS enforcement officers and industry experts
The audit section also implemented a system for tracking and depositing all non-tax revenue received from applicants such as application fees from applicants and reimbursements for Commission services
A summary ofsome ofthe audit sections programs and objectives is contained on page 22
BINGO
The Bingo Division is comprised ofthree separate sections which include the Administration Licensing Audit and Enforcement The Bingo Division Supervisor is Ron Pleus The Audit Section Supervisor is Randall Cahill and the Enforcement Section Supervisor is Sergeant Dwight Franklin The bingo statutes have been revised significantly in recent years requiring many administrative changes to occur within the Division Among the more daunting projects were the establishment ofa new licensing category for hall providers and the implementation ofa new supplier-based tax Specific duties within the three sections of the Bingo Division and the recent statntory changes are briefly outlined below
AdministrativeILicensiog Section - This section is responsible for the processing ofall correspondence and the licensing and maintenance ofover 1500 operator licensees which include all regular and special event bingo operators licenses and 200 hall providers annually This section deposits and records an tax and license receipts received on a daily basis This unit maintains a data base of over 31000 records ofindividuals that are involved in the management conduct andor operation ofbingo games and 3000 records of individuals involved as owners and officers of licensed Hall Providers Currently this staff consist ofthree employees Jane Bax Pam Murphy and Tina Freese In conjunction with the data processing staff the administrative section has developed an automated renewal application system which became fully operational January 1996 This system simplifies the renewal process for the licensee and eliminates wasted steps and duplicate information The system has proven to be a tremendous time saver for the not-for-profit volunteer organizations who are required to file renewals and also helps to reduce the staffmg cost and other administrative cost for the Division
Missouri Gaming Commissioll 1996 Allnual Report ~ Page 11
Audit Section - This section is responsible for the timely audit of all Bingo Product Manufacturers and Suppliers and assisting the Enforcement Section with oil-site inspections of bingo operators The audit staff has developed a comprehensive Manufacturer and Supplier audit procedure manual and has developed procedures for the inspection ofbingo operators The procedures for the inspection of bingo operators are used by both the Enforcement and Audit Staffs The audit section has audited all of the licensed Manufacturers and Suppliers during fiscal year 1996 These audits resulted in over $32000000 in unreported taxes and penalties The auditors also assisted enforcement with inspections and investigations of unlicensed suppliers and operators The section conducts on-site inspections of formerly licensed suppliers to determine ifthe products in inventory were being disposed of in accordance with the statutes The audit staff also assists the administrative staff in auditing the operators quarterly repom
Enforeement Section - This section is headed by Sgt Dwight Franklin a 17 year veteran ofthe Missouri Highway Patrol Sgt Franklin has six (6) officers assigned to the enforcement section Their duties include background investigations of all Manufacturers and Suppliers to include all the key personnel in those companies These investigations include criminal checks fmancial checks past employment history and all litigation involving the applicant In addition the enforcement section is responsible for investigating complaints on the licensed bingo organizations The complaints range from minor rule violations to thefts of large sums of money Complaints are received on a daily basis and are investigated on the basis of severity location and available manpower An additional duty of the Enforcement Section is to complete background investigations on all new potential employees of the Gaming Commission
CORPORATE SECURITIES AND FINANCE
The Commission has established a Section of Corporate Securities and Finance to address the challenge ofregulating the complex fmancial corporate structuring and contractual transactions involving publicly traded and privately held gaming companies This section is comprised of staff trained in legal accounting and business matters to perform examinations of these transactions
The suitability issues examined by the Corporate Securities and Finance Section include complex fmancial and legal suitability issues such as fmancial soundness corporate control legal compliance and procedural licensing issues
The sections examinations are coordinated closely with the Enforcement Division for background investigations and disciplinary matters
Typical transactions that are examined by the section include mergers and acquisitions public debt and equity issuances and private financings such as bank loans and credit facilities The goal of this new section is to provide the Commission with more thorough and sophisticated investigations and analysis of the suitability ofgaming companies and with a uniform system for providing this analysis on corporate securities and fmance issues Through this section the Commission hopes to identifY suitability problems ofapplicants and licensees earlier and more efficiently and to identifY plan for and possibly even avoid potential business closures of licensees due to fmandal matters
The Corporate Securities and Finance Section is headed by the Commissions General Counsel Greg Orner who reports directly to the Executive Director on corporate securities and finance matters The section also includes a Chief Financial Analyst position to be filled soon which will oversee the work ofthe fmancial staff examining the corporate secwities and fmance transactions
The Conunissions Financial Manager Pam Brown haS handled the fmandal analysis of the reported transactions up to now and will continue to perfonn many of the more complex transaction examinations and oversee the work of an accountant Pam Wheelis and a fmancial analyst (planned to be added next year) who are also assigned to the section
ENFORCEMENT
Enforcement for the Missouri Gaming Commission is provided by officers of the Missouri State Highway Patrol and agents of the Internal Revenue Service by way of Memorandums ofUnderstanding which set forth the responsibilities ofeach entity
The enforcement section is headed by Mel Fisher former Superintendent of the Highway Patrol The Gaming Division ofthe Highway Patrol is headed by Captain Dwight Hartung There are seventy-seven officers assigned to the Gaming Division and an additional six officers assigned to the Bingo Enforcement Unit
Some of the advantages ofusing Highway Patrol Officers as gaming agents include
JtfisSOUli Gaming Commission 1996 Annual Report - Page 12
the staff assigned are trained specialists in law enforcement and investigations thus saving the Commission the time effort and expense of recruitment and training
because the agents are licensed law enforcement officers they command immediate respect when interacting with licensees and customers aboard a riverboat as well as when they are in a foreign jurisdiction conducting an investigation
~ the Commission feels that it is important to rotate enforcement staff aboard the various boats this process is much easier with seasoned law enforcement officers who are used to being rotated between assignments as well as in and out of the gaming division
gt provides the ability to access sensitive law enforcement information from other jurisdictions
gt their experience in conducting investigations and handling emergency situations has proven invaluable
The Commissions background investigation units consist of three Highway Patrol Officers and one IRS agent The background investigations conducted by the Missouri Gaming Commission are thorough and take approximately four months to complete if no unusual complications or delays emerge The Commission not only investigates the finances and activities of the company and all its key people but traces the source ofall their funds to ensure that no criminal elements are funding the operation from behind the scene An outline that provides a sketch of a typical background investigation is contained on page 20
LEGAL amp LEGISLATIVE AFFAIRS
The legal amp legislative affairs section is responsible for all legal matters presented to the commission prior to litigation Any litigation involving the commission is handled by the Attorney Generals office In addition this section which is headed by Deputy Director Kevin Mullally develops and drafts legislation endorsed by the commission as well as all rules and regulations Moreover the legal section manages an administrative appeals docket where Mullally serves as Hearing Officer
Greg Orner serves as the commissions general coWlSel and works closely with the enforcement staff reviewing incident reports investigative issues and possible disciplinary actions In addition Mr Omer heads the Corporate Securities section
Some of tbe otber responsibilities of the legal section include
~ Drafting all resolutions for all commission actions and
gt preparing disciplinary complaints and denial orders for proposed action against licensees and
gt conducting quasi-legislative hearings on issues such as continuous docking and boat design and
gt providing legal research services and
gt organizing and maintaining records ofall official commission actions and commission policies and
gt handling inquiries from legislators constituents and other state regulatory agencies
The commissions legal staff is supported by paralegal Heather Grefrath and legal secretary Susan Sundermeyer This support staff is critical to daily operations ofthe legal section and is particularly valuable in the sections role in preparing and managing the rules and regulations all documents necessary for commission meetings and all documents declaring commission policy
In 1997 the legal section will be augmented with the addition ofstaff attorney Robert Little
PENDING LITIGATION
The Missouri Gaming commission denied one occupational license in 1994 thirteen occupational licenses in 1995 and thirty-five occupational licenses in 1996 Each aplicant is presumed WlSuitable and has the burden of proof to prove his or her suitability to the Conunssion An individual may request a hearing to attempt to prove suitability to the Commission by serving
Missouri Gaming Commission 1996Annual Reporl- Page 13
such a request on the commissions Executive Director The following is a list of pending litigation
Petitioner Venue
Bingo Systems amp Supply AHC Cape Girardeau Elks Lodge 639 AHC Cape Girardeau VFW Post 3838 AHC Edwin Pete Rhodes AHC Ideal Bingo Supplies Inc AHC Mary Cracchiolo AHC Maureen L Scott AHC Meramec-Amold Eagles Auxiliary AHC Myron B Carter Sr AHC Pan-Education Institute AHC Raymond J Drury AHC Raytown Women of Today AHC Sandra Termini AHC Stanley L Turner AHC Missouri Gaming Co ~Disc Action MGC Harrahs -Disciplinary Action MGC Boyd Kansas City Inc -Disc Action MGC Jeffery Koester -Denied License MGC Gary Franklin -Denied License MGC Mark Zwolle -Disciplinary Action MGC Anthony Civella -Exclusion MGC Peter Simone -Exclusion MGC Yolanda Nettles MGC Tracy Anderson MGC Carrie Gentry MGC Jimmie B Carsey MGC Cape Girardeau Elks amp VFW Circuit Court ofCape Girardeau County MGC v Veterans Commission
st Louis Public Schools Missouri Supreme Court W Todd Akin v MGC Missouri Supreme Court William D Cmmnisano Jr Missouri Court ofAppeals-Western District Pen-Yan Investment Inc Missouri Court ofAppeals-Western District
SUMMARY OF PENDING LITIGATION
There are fourteen bingo cases pending in the Administrative Hearing Commission
There are three disciplinary cases at the Commission level against gaming licensees pending the outcome ofPen-Yon Investment Inc v Boyd Kansas City Inc and MGC
Pen-Yon Investment Inc v Boyd Kansas City Inc MGC is pending in the Missouri Court ofAppeals Western District regarding disciplinary action taken against Boyd for associating in business affairs with a person who has a felony police record The Commission imposed a fine against Boyd and prohibited Boyd from collecting or distributing any funds from the machines under its service agreement with Pen-Yan
MGC v Missouri Veterans Commission St Louis Public Schools is pending in the Missouri Supreme Court regarding funds received from fmes imposed by the Commission
In W Todd Akin et 01 v MGC the Circuit Court ofCole County ruled in favor of the commission on summary judgment The suit challenges the Commissions authority to grant or deny Harrahs Maryland Heights Corp and Players Maryland Heights LP a license for a continuously docked excursion gambling boat within a man-made basin filled by water from the Mississippi River The petitioners have appealed and the matter is now before the Missouri Supreme Court
Cape Girardeau Elks Lodge et aI v MGC is pending in the Circuit Court of Cape Girardeau County regarding the Commissions decision to suspend the Cape Girardeau Elks Lodge bingo license
In the Matler oWilliam D Cammisano Jr there is an appeal pending in the Missouri Court ofAppeals Western District regarding the Commissions decision to place Mr Cammisano on its List of Excluded Persons
MISSOURI GAMING COMMISSIONS EXCLUSION LIST
The Missouri Gaming Commissionplaced two individuals in 1994 two individuals in 1995 and two individuals in 1996 on the commissions Exclusion List Placement of these individuals on the Exclusion List has been based on prior convictions
As a result of placement on the Exclusion List each individual shall not be permitted eoby into any portion of a riverboat gaming operation within the state ofMissouri and shall be ejected ifdiscovered on such premises Furthermore Excluded Persons shall be prohibited from contact of any kind with Missouri riverboat gaming operations Persons placed on the Listmay file a written petition with the Commission to request a hearing to have their name
JlrJissOIlri Gaming Commission 1996 Annual Report - Page 14
removed from the Exclusion List Currentlyone individual has appealed to the Western District of Missouri and two otbers are pending hearings by the Missouri Gaming Commission
MISSOURI GAMING COMMISSIONS DISCIPLINARY ACTIONS AGAINSTOCCUPATIONAL LICENSEES
The Missouri Gaming Commission has taken disciplinary action against twenty-eight occupational licensees as of September 30 1996 Preliminary
Orders for Disciplinary Action set forth statements of fact that support the proposed disciplinary action and the regulatory and statutory sections involved Individuals may request a hearing by serving such a request on the Commissions Executive Director Currently four individuals have sought hearings before the Commission one ofwhich is stm pending
Occupational License Denials 1994-1996
40
l 30
lt0 c Q)
0 lt5 20 i-Q) 0 E ~ 10
o Year Licenses 1994 1995 1996 IiiI Licenses Denials 1 13 35
Voluntary Exclusions On December 30 1996 after six months of research and consultation the
commission established a unique program to combat problem gambling The List of Disassociated Persons is the result of many months ofconsultation with treatment professionals that help problem gamblers The program allows problem gamblers to exclude themselves from Missouri riverboat casinos under the threat ofarrest for trespassing
In exchange for agreeing not to patronize Missouri riverboat casinos the problem gambler is removed from all casino mailing lists and direct marketing promotions In addition the operators are required to deny persons on the List check cashing privileges and must take away their VIP or players club card
Treatment professionals have advised the commission that the only way for a problem gambler to get help is to admit that heshe has a problem and to accept personal responsibility for that problem by seeking treatment
The Disassociated Persons program is a valuable tool in addressing problem gambling because it requires the individual to admit to having a gambling problem to agree to seek treatment and stay away from gambling casinos Furthermore it includes severe consequences if the problem gambler succumbs to the temptation to gamble Moreover it offers some protection to the problem gambler from the marketing promotions that encourage people to visit the casino properties
The program operates in the following manner
~ The problem gambler must obtain an application for placement on the List ofDisassociated Persons from the commission
~ the application contains various information about the individual an admission that the person is a problem gambler and agrees to stay off Missouri riverboats and seek treatment an authorization to release this information to riverboat operators as well as a Waiver releasing the commission and the licensee from any liability associated with enforcing the rules of the program
~ the application must be personally presented to a commission agent at which time the information is verified and the rules of the program are explained
~ the application is a closed record and its contents may only be disclosed to necessary commission and riverboat personnel
~ the commission considers all applications in closed session
~ once a person is placed on the List heshe cannot petition for removal After consulting with treatment professionals the commission concluded that problem gambling requires lifetime treatment and therefore there is no procedure for removal from the List
Missouri is the frrst jurisdiction in the world to propose a program such as this We will continue to monitor and refme the program and look forward to reporting to you on its impact in next years annual report
ft-Iissouri Gaming CommissiOil 1996 Annual Report - Page 16
Brief Timeline of Riverboat Gaming in Missouri ~ May 13 1991 - General Assembly passes House Bill 149 which authorized
referendum to be submitted to the voters in the November 1992 election to determine whether the State Tourism Commission shall have the power to issue riverboat gambling licenses
gt November 31992 - Missouri voters pass referendum allowing riverboat gaming with a majority ofnearly 63
gt January 1993 - Governor Carnahan announces intentions to push legislation creating an independent Gaming Commission to oversee riverboat gambling
April 29 1993 -- SBs 10 amp 11 creating the Missouri Gaming Commission are signed into law by Governor Carnahan and five Commissioners are appointed Robert Wolfson Chairman Robert Clayton William Quinn Dr Jenice Stewart and Avis Tucker
gt April 30 1993 -- Troy Harris et al v The Missouri Gaming Commission amended petition is filed The petition challenges the constitutionality of Senate Bills 10 amp II
gt- May 17 1993 -- The Missouri Gaming Commission holds its first meeting
~ September 1 1993 -- Proposed Rules and EmergencY Rules are adopted
gt September 20 1993 - 19 riverboat gaming license applications are filed with the commission
gt September 20 1993 - Clarence E Mel Fisher hired as Deputy Director for Enforcement
gt September 24 1993 - Commission contracts with the Internal Revenue Service to perform fmancial investigations for the commission Four IRS agents are assigned to the commission
~ September 28 1993 - Commissions enters into and inter-agency agreement with the Missouri State Highway Patrol to provide enforcement services for the commission
~ October I 1993 - Debbie Ferguson joins the commission as Deputy Director for Administration
November 3 1993 - Commission hires Tom Irwin as Executive Director and Kevin Mullally as Deputy Director for Legal amp Legislative Affairs
November 30 1993 -- Commission announces that it will begin background investigations on the following companies President Riverboat Casino-Missouri St Charles Riverfront Station Inc S1 Joseph Riverboat Partners The Missouri Gaming Company GDC (Supplier) IGT (Supplier) Casino Tokens (Supplier) Paul-Son Dice amp Card Company (Supplier)
gt December 22 1993 - Governor Carnahan signs Executive Order 93-50 designating the enforcement section ofthe Missouri Gaming Commission as a criminal justice agency
1994
gt January 25 1994 -- Missouri Supreme Court in Troy Harris v Missouri Gaming Commission strikes down games of chance including slot machines The court ruled that the Commission did have the authority to issue licenses to riverboat where games ofskill are played Specifically mentioned as games ofskill are poker and blackjack The Court remanded six games to lower court for determination as to whether they are games of skill or chance baccarat craps roulette wheel klondike table faro layout and video games ofchance
~ February 1 1994 -- Rules and Regnlations become effective
February 7 1994 -- Legislature passes resolution to place constitutional amendment on the ballot which would allow the legislature to approve games of chance (slot machines) on riverboats and floating facilities on the Missouri and Mississippi Rivers
gt- April 5 1994 -- Voters defeat constitutional amendment allowing games of chance (slot machines) by an unofficial count of 1263 votes
~ April 29 1994 - Finding of Preliminary Suitability issued to President Riverboat Casino S1 Charles Riverfront Station St Joseph Riverboat Partners and The Missouri Gaming Company
Missouri Gaming Commission 1996 AnnualReport - Page 17
Brief Timeline of Riverboat Gaming in Missouri ~ May 20 1994 -- Governor signs into law SB 740 which defmes games of
chance and enacts more stringent ethics provisions The bill also allows the commission to license a barge in an artificial basin as an excursion gambling boat if it can be demonstrated that safely concerns prevent an operator from cruising from that location
~ May 27 1994 - Commission authorizes as games of skin the following Blackjack Caribbean Stud Poker Poker Double Down Stud Poker Pia Gow Poker Poker Texas Hold Em the video representations ofthese games and Craps
gt May 27 1994 -- Commission authorizes President Riverboat Casino-Missouri to operate the Admiral as a continuously docked excursion gambling boat because cruising would cause danger to the boats passengers
gt May 27 1994 -- Gaming Commission issues first two excursion gambling boat licenses to President Riverboat Casino in st Louis and St Charles Riverfront Station in st Charles
gt May 27 1994 -- Initiative petition tbat would allow voters to approve games ofchance is submitted to the Secretary of State for approval of the form ofthe petition
~ June 6 1994 -- Secretary ofState notifies referendum petitioners that the Attorney General has approved the form of their petition The Secretary of State prepared the following petition title that was approved by the Attorney General
Shall the General Assembly be authorized to permit only upon the Mississippi River and the Missouri River lotteries gift enterprises and games ofchance to be conducted on excursion gambling boats and floating facilities
gt June 9 1994 -- Commission prioritizes Aztar Missouri Corporation Boyd Kansas City Inc and Harrahs North Kansas City as companies to be investigated for licensure pursuant to 11 CSR 45-4060
gt June 22 1994 -- Gaming Commission issues licenses to St Joseph Riverboat Partners in St Joseph and The Missouri Gaming Company in Riverside
~ September 20 1994 -- Commission issues a fmding ofpreliminary suitability to Harrahs North Kansas City Corporation
gt September 20 1994 -- Commission authorizes Harrahs North Kansas City Corporation and st Charles Riverfront Stationl to operate excursion gamblillg boats as continuously docked vessels In both cases the commission found that operating a cruising vessel from the proposed site would cause danger to the boats passengers and the project will generate permanent job creation and land-based development
gt September 22 1994 -- Harrahs North Kansas City Corporation is issued an excursion gambling boat license
gt September 28 1994 - Public hearing regarding Capitol Queen and Casino Jncs application for an excursion gambling boat license results in the commission denying CQCs license and prohibiting them from reapplying for two years
gt October 7 1994 - Commission places William D Cammisano Jr and John Termini on its list of excluded persons
gt November 8 1994 -- Voters approve games ofchance
~ December 9 1994 - Games ofchance are allowed on riverboats
gt December 27 1994 - St Charles Riverfront Station is issued a license to operate the St Charles II as an excursion gambling boat This marks the fIrSt time the commission has licensed a second excursion gambling boat for a single development
The approval was for St Charles Riverfront Stations second boat The flTSt boat continued to cruise until April 16 1996
Missouri Gaming Commission 1996 Annual Report - Page 18
Brief Timeline of Riverboat Gaming in Missouri 1995
)gt- February 22 1995 -- Commission announces it will begin background investigation on Hilton Kansas City Corporation for an excursion gambling boat license
~ March 30 1995 - State Auditor releases final audit report of the Missouri Gaming Commission No major deficiencies are noted
~ April 20 1995 - Commission repays $3 million start-up loan to state general revenue fund
)gt- April 25 1995 - Commission approves continuous docking petitions for Boyd Kansas City Inc and Hilton Kansas City Corporation
~ April 25 1995 -- The commission issues a finding ofpreliminary suitability to Aztar Missouri Gaming Corporation
~ April 26 1995 -- The commission issues an excursion gambling boat license to Aztar Missouri Gaming Corporation in Caruthersville Missouri
)gt- May 24 1995 - The commission announces it will begin background investigations on the following companies Harrahs Maryland Heights Corporation Kansas City Station Inc Players Maryland Heights Inc
gt August 28 1995 - Pursuant to House Bill 574 the duties of the Missouri Horse Racing Commission are transferred to the Gaming Commission
~ September 12 1995 - The commission issues a fmding of preliminary suitability to Boyd Kansas City Inc
September 13 1995 - The commission grants the petition ofHarrahs Maryland Heights Corporation and Players Maryland Heights Inc to operate continuously docked excursion gambling boats at their joint venture in Maryland Heights
)gt- September 13 1995 - The commission issues an excursion gambling boat license to Boyd Kansas City Inc
)gtshy November 16 1995 shy The commission fines the following companies for associating with either socially or in business affairs persons with felony police records or persons with a notorious or unsavory reputation Boyd Kansas City Inc Harrahs North Kansas City Corporation The Missouri Gaming Company
1996
)gtshy February 15 1996 - The commission grants continuous docking rights to Aztar Missouri Gaming Corporation for a second boat in Caruthersville Harrahs North Kansas City for a second boat and Kansas City Station Corporation for two boats in Kansas City
~ April 16 1996 - The commission grants continuous docking rights to Argosy in Riverside Missouri S1 Joseph Riverboat Partners and 81 Charles Riverfront Station
~ May 15 1996 - The commission issues a license to Harrahs North Kansas City for the Lucky Star This is the second boat at the Harrahs North Kansas City mcility Included in the project is a 200-room hotel expanded parking and meeting space
~ June 19 1996 -- The commission places William Canunisano Jr on Exclusion List
~ June 27 1996 - The commission places Peter Simone and Anthony T Civella on Exclusion List
August 28 1996 - The commission takes disciplinary action against Boyd Kansas City Inc for periodic failure to take and report turnstile readings
~ October II 1996 - The commission issues a finding of prel iminary suitability to Hilton Kansas City Corporation and Flamingo Hilton Riverboat Casino LoP
October 18 1996 - TIle commission issues a Class B riverboat gambling license 10 HUlon KlIlIStIS City Corporation and a CltlSs A riverboat gambling license 10 Flamingo Hillon Riverboat CtlSino LP
Missouri Gaming Commission 1996Annual Report - Page 19
Outline of a Background Investigation
Review Application fin Completeneiis
~ Establish number ofkey people
~ Check disclosure forms for completeness
gt Check tax release forms
City Selection Process
~ Contact city to determine how the gaming operator was selected
gt Interview Mayor and City Council members
~ Ifa steering committee was used interview members of that committee
Determine ifany city officials own stock in the selected gaming company
~ Obtain minutes ofcouncil meetings that pertain to riverboat issues (a)selection (b) resolution and (c) ordinance
gt Contact city attorney who handled negotiations with gaming company and obtain correspondence between city and gaming company
~ Contact City Economic Development Director (if applicable)
Docksite
gt- Land selected for gaming operation
J Who was it purchased from (how long have they owned the property) J Price (copy ofcontract)J Copy of plat map and legal description J Determine ifany ofcity officials or selection committee members have
ownership interest in docksite
gt Corps ofEngineers Permit
J Status
J Any concerns by Corps J Wetlands involved
~ Contact DNR for any known concerns in area
gt Check with city for any known dwnpsites with possible hazardous material
gt Developmental agreement between city and gaming operator (obtain copy from city)
gt Detennine if development is feasible
J Is support facility land based or floating J Projected nwnber ofjobs economic aid to area J Traffic flow to area - what improvements are needed - who will pay
for improvements
Riverboat
gt Locate boat and obtain all infonnation about boat (cruise schedule liability carrier)
gt Establish design ofriverboat
gt Determine emergency medical plan for boat
gt Determine ifCoast Guard and other safety requirements have been met
Gaming Operator (Public Corporation Partnership Private Company)
gt Establish contact person with operator
J Determine attorney of record for gaming company J Any missing items from application advise contact person
gt Establish home office (Financial Headquarters)
J Determine a good date and location where all key people can be contacted for a personal interview
J Where can financial record be located
Missouri Gaming Commission 1996Annual Report - Page 20
~
Outline of a Background Investigation
J Breakdown ofmanagement (corporate Board ofDirectors major stockholders)
J Establish flow chart of key people and companies owned by gaming operator
~ Investigation ofKey People will include but not be limited to the following
J Check previous employment work records J Check state local and federal intelligence files J Check for other gaming licenses ifapplicable (check with appropriate
regulators)J Check state federal and local courts for any civil litigation J Check for any arrest record J Check personal and business credit J Check state and local tax status IRS will handle federal taxes
gt Other locations ofgaming operations (currently operating and pending locations)
J Contact gaming regulators for respective locations J Travel to sites to view operations
Establish a file for all key people investigated with summaries establish a file for financial records with summary offinancial viability ofcompany and ability to complete obligations to the city and State ofMissouri Establish a file for other locations of licensure along with summary
Associated Investigations
gt All allegations of Any nature must be investigated and a file established with a written summary
~ Associated investigations must be done in a complete and thorough manner and all reports written accurately
gt Upon completion ofall investigations complete reports and summaries a separate press releasable summary must be written This summary must be approved by Gaming Commission legal staff
Missouri Gaming Commission 1996 Annual Report - Page 21
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Missouri Gaming Commission Compliance Audit Objectives for Licensees
ObjectiveAudit Area ~~~~~~~~~
To ensure accuracy of ticket and turnstile counts reported to MGC including compsIVlPs stayovers and promotions
Table Games
Ticketffurnstile
To ensure accuracy of AGR for table games reported to MGC
Electronic Games To ensure accuracy of AGR for electronic games reported to MGC
Cage Accowltability To ensure accuracy ofcage accountability forms and compliance with internal controls and tax reporting regulations
Observations Cage Main Bank Pit Area Slot Area Turnstile Ticketing
PurchaselRedemptions
$500 Loss Limit
Stayover Procedures
To determine that cashiers are complying with internal controls for chips tokens gaming scrip and cash
To determine compliance with MO statutes and internal controls
To determine compliance with MGC regulations and internal controls
To ensure that manual jackpot payouts are properly handled and the required tax fomIS are completed Manual Jackpot Payouts
To ensure that hopper fills are properly handled and comply with internal controls Hopper Fills
To ensure that table fills are properly handled and comply with internal cootrols Table Fills
To ensure that table credits are properly handled and comply with internal controls Table Credits
To ensure that tracking procedures comply with internal controls and the currency transactions are properly completed Patron TrackingCurrency Transaction Reporting
Imprest Bank Balancing To ensure that proper balancing and accountability is performed during a shift change
Coin Vault To ensure proper maintenance of coin chip and token inventory
Satellite CageSSlot Booths To ensure compliance with internal controls and consistency with main cage procedures
TipsGratuities To ensure compliance with MGC regulations and internal controls
Cage AccessSecurity To ensure compliance with internal controls
Turnstile To ensure accuracy of turnstile count for admissions tax calculation
Ticketing To ensure comp Hance with internal controls and proper handling of stubs voids and issuance
MiscellaneousOther
Surveillance Tapes To review activity for hard soft and tip counts and drops to verify compliance with internal controls
Workpaper Preparation and To establish standardized procedures for MGC audit workpapers and audit reports Audit Reports
-
Missouri Gaming Commission 1996 AnnualReport - Page 22
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Audit Area
Monthly Financial Statement Review
Engagement Letters
Objective --shy
To perform a preliminary review ofmonthly financial statement information for proper completion of fmandal statement templates verification ofadjusted gross receipts to MGC reports and to detect any unusual items which justifY further review when conducting on-site audit
To give advance notification to each boat of the date and scope ofaudit being performed
Financial Statement Verification To determine consistency ofmonthly financial statement information submitted to MGC with boats general ledger system
Balance Sheet Accounts
CashCash Reserve Balance
Cash Receipts
Cash Disbursements
shy -- shy
To determine the existence consistency and fair presentation of the cash balance on the monthly fmancial statements
To determine the consistency and filir presentation of the cash balance on the monthly financial statements and the source of large cash receipts other than gaming revenue
___I
To determine the consistency and fair presentation of the cash balance on the monthly fmancial statements and to trace the outflow of large cash disbursements
i
I
--
AccountslN Notes Receivable
Accrued Admission and Gaming Tax Liability
Chip and Token Liability
Progressive Jackpot Liability
To determine the consistency and fair presentation of the accounts receivable andor notes receivable balance in the monthly fmancial statements
To determine the consistency and fair presentation of the accrued admissiongaming tax liability balance in the monthly financial statements
To determine the consistency and fair presentation of the chip and token liability balance in the monthly financial statements
To determine the consistency and fair presentation of the progressive jackpot liability balance in the monthly fmancial statements
---shy
Tips and Gratuities (Accrued Liability)
Customer Deposit Liability
Accounts Payable
Income Statement Accounts
Revenne - Table Games
To determine the consistency and fair presentation of the accrued tips and gratuities liability in the monthly fmancial statements
-lt ---- shy
To determine the consistency and fair presentation of the customer deposit liabilities in the monthly fiscal statements To determine the consistency and fair presentation ofaccounts payable balance in the monthly fmancial statements
--shy
To determine the consistency and fair presentation of table games revenue as reported to MGC daily and in the monthly fmandal statements
Revenue - Electronic Games To determine the consistency and fair presentation of electronic games revenue as reported to MGC daily and in the monthly financial statements
Missouri Gaming Commission 1996 Annual Report - Page 23
------------
---------
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Revenue - Admissions To detennine the consistency and fair presentation ofadmissions revenue as reported to MGC daily and in the monthly fmancial statements
Promotional Expense To determine that comps are properly recorded as expenses and not deducted from revenue in accordance with GAAP
Pre-Opening Costs To determine whether certain pre-opening and licensing costs are properly expensed or amortized over future periods in accordance with GAAP
Workpaper Preparation and Audit Reports To establish standardized procedures for MGC audit workpapers and audit reports
AissOllri Gamillg Commission 1996 Anllual Report - Page 24
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AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
c
Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
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Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
----shy
_ gtlt
o
Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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I IAztar Missouri Corporation
r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
j i
1
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
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Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
Orgallizationai Structure OFFICE OF THE EXECUTIVE DIRECTOR
Thomas J Irwin was named Executive Director by the Commission on October 21 1993 Mr Irwin came to the Commission after serving 3 years as Executive Assistant to St Louis County Executive Buzz Westfall Mr Irwin is a graduate ofHarvard University where he earned his masters degree from the Kennedy School ofGovernment He has served as the Chief Budget Officer for the Boston Police Department and was the Executive Assistant for Intergovernmental Affairs for St Louis mayor Vince Schoemehl from 1982 to
1988 Mr Irwin is a veteran of the United States Marine Corps having served
in Vietnam in 1968
i i Mr Irwin is responsible for the day-to-day operations of the
Commission He supervises all staff activities and reports to the Commission Among the staff positions reporting to the Director is Public Information
i K Officer Harold Bailey Mr Bailey is responsible for organizing and
distributing all public documents and reports
I In addition there are six primary functions of the Commission that
it have been divided into sections that report directly to Mr Irwin including
Administration Audit Bingo Corporate Securities Enforcement amp
t ~
Investigations and Legal amp Legislative Affairs
I ADMINISTRA110N
The administration section headed by Deputy Director Deborah A Ferguson provides a range of administrative financial and technical services to
help the Commission accomplish its goals The administrative services can be divided into the following functions accounts payable accounts receivable purchasing data processing budget facility leasing and human resources Accomplishments of the administration section would not have come to pass without the assistance ofChiefAccountant Denny Hodges Persomlel Officer Vicki Glenn Records Administrator Michael Shelhnan and Data Processing Manager John Bluma The administration staff benefited from the addition ofTen a Smith Diane Riddle and Mike Brizendine
The administration section continues to be a focal point of activity with the continued growth of the gaming industry l1te highlight of this past year was the relocation of the Jefferson City office Plaooing and design for the Jefferson City office began in 1995 and culminated with the move in September 1996 Highlights of the new building include a hearing room to conduct Commission meetings adequate file space to house the Commission
records that will be relocated from the St Louis office and the merging of the Bingo and Gaming staff into one facility to enhance coordination ofdaily activities
More specifically the duties of this section are as follows
~ Billing licensees for the processing and aoouallicenses issued to Level One and level Two Occupational employees that work for each riverboat To date there are approximately 9000 licensed employees
~ Billing licensed operators for the full cost of the enforcement agents assigned to each boat
~ Maintaining all Commission fmancial and personnel records which includes the monthly reconciliation of the Gaming Commission fund balance and processing aU payments made by the Commission
gt Preparation and implementation of the Commissions annual budget to ensure compliance with legislative intent
~ Handling all personnel matters and employee training and establishing and implementing written office policies for Commission staff
gt Preparation of fiscal notes to provide estimates to proposed legislation
Data Processiltg
The Data Processing section headed by John Blunm had a busy year in 1996 which included major systems developments as well as the daunting task of moving the Jefferson City office to a new location Some ofthe accomplishments of this important section include
~ Opening new commission offices for its agents at licensed premises
~ Moving the Jefferson City offices of the Riverboat Gaming and the Bingo workgroups to the new location This involved moving all computer workstations servers communications processors and printers to the new
Missouri Gaming Commission 1996 Annual Report - Page 10
building The two separate networks were consolidated into one large network that provides email between all members ofthe two sections for the fIrSt time and allows sharing of peripheral equipment such as laser printers
gt Final testing and implementation ofa billing system for enforcement billing to reimburse the state for expenses related to regulating the casino gaming industry
~ Automation ofannual MULES checks required of the 9000 plus gaming occupational license holders eliminating hundreds ofhours ofdata entry time
gt Upgrade of the physical inventory system to provide more complete reports and to track add-on costs to major inventory items
gt Design and development ofan occupational license history tracking system to provide a complete picture of license payments changes in license status duplicate badges issued and changes in employment status
gt Enhancing existing systems to meet new statutes and rules and regulations
AUDET
The audit section is responsible for the critical function ofensuring that the operators pay their taxes promptly and accurately This section headed by Jolm Davis former Internal Revenue Service Manager developed the Commissions tax remittal system that allows the Commission to capture tax remittance data on a daily basis The operators returns are audited by compliance audit siaffheaded up by senior accountant Kara Hardaway
The audit section also develops audit programs reviews and approves each boats system ofintemal controls conducts on-site performance audits reviews the quarterly CPA audits ofAdjusted Gross Receipts Tax and Admission Tax and reviews all internal audit reports prepared by the casinos internal audit staff
During 1996 the audit section revised Minimum Internal Control Standards that all operators must meet These standards were developed by the
audit staff after a lengthy review process that involved input from the IRS enforcement officers and industry experts
The audit section also implemented a system for tracking and depositing all non-tax revenue received from applicants such as application fees from applicants and reimbursements for Commission services
A summary ofsome ofthe audit sections programs and objectives is contained on page 22
BINGO
The Bingo Division is comprised ofthree separate sections which include the Administration Licensing Audit and Enforcement The Bingo Division Supervisor is Ron Pleus The Audit Section Supervisor is Randall Cahill and the Enforcement Section Supervisor is Sergeant Dwight Franklin The bingo statutes have been revised significantly in recent years requiring many administrative changes to occur within the Division Among the more daunting projects were the establishment ofa new licensing category for hall providers and the implementation ofa new supplier-based tax Specific duties within the three sections of the Bingo Division and the recent statntory changes are briefly outlined below
AdministrativeILicensiog Section - This section is responsible for the processing ofall correspondence and the licensing and maintenance ofover 1500 operator licensees which include all regular and special event bingo operators licenses and 200 hall providers annually This section deposits and records an tax and license receipts received on a daily basis This unit maintains a data base of over 31000 records ofindividuals that are involved in the management conduct andor operation ofbingo games and 3000 records of individuals involved as owners and officers of licensed Hall Providers Currently this staff consist ofthree employees Jane Bax Pam Murphy and Tina Freese In conjunction with the data processing staff the administrative section has developed an automated renewal application system which became fully operational January 1996 This system simplifies the renewal process for the licensee and eliminates wasted steps and duplicate information The system has proven to be a tremendous time saver for the not-for-profit volunteer organizations who are required to file renewals and also helps to reduce the staffmg cost and other administrative cost for the Division
Missouri Gaming Commissioll 1996 Allnual Report ~ Page 11
Audit Section - This section is responsible for the timely audit of all Bingo Product Manufacturers and Suppliers and assisting the Enforcement Section with oil-site inspections of bingo operators The audit staff has developed a comprehensive Manufacturer and Supplier audit procedure manual and has developed procedures for the inspection ofbingo operators The procedures for the inspection of bingo operators are used by both the Enforcement and Audit Staffs The audit section has audited all of the licensed Manufacturers and Suppliers during fiscal year 1996 These audits resulted in over $32000000 in unreported taxes and penalties The auditors also assisted enforcement with inspections and investigations of unlicensed suppliers and operators The section conducts on-site inspections of formerly licensed suppliers to determine ifthe products in inventory were being disposed of in accordance with the statutes The audit staff also assists the administrative staff in auditing the operators quarterly repom
Enforeement Section - This section is headed by Sgt Dwight Franklin a 17 year veteran ofthe Missouri Highway Patrol Sgt Franklin has six (6) officers assigned to the enforcement section Their duties include background investigations of all Manufacturers and Suppliers to include all the key personnel in those companies These investigations include criminal checks fmancial checks past employment history and all litigation involving the applicant In addition the enforcement section is responsible for investigating complaints on the licensed bingo organizations The complaints range from minor rule violations to thefts of large sums of money Complaints are received on a daily basis and are investigated on the basis of severity location and available manpower An additional duty of the Enforcement Section is to complete background investigations on all new potential employees of the Gaming Commission
CORPORATE SECURITIES AND FINANCE
The Commission has established a Section of Corporate Securities and Finance to address the challenge ofregulating the complex fmancial corporate structuring and contractual transactions involving publicly traded and privately held gaming companies This section is comprised of staff trained in legal accounting and business matters to perform examinations of these transactions
The suitability issues examined by the Corporate Securities and Finance Section include complex fmancial and legal suitability issues such as fmancial soundness corporate control legal compliance and procedural licensing issues
The sections examinations are coordinated closely with the Enforcement Division for background investigations and disciplinary matters
Typical transactions that are examined by the section include mergers and acquisitions public debt and equity issuances and private financings such as bank loans and credit facilities The goal of this new section is to provide the Commission with more thorough and sophisticated investigations and analysis of the suitability ofgaming companies and with a uniform system for providing this analysis on corporate securities and fmance issues Through this section the Commission hopes to identifY suitability problems ofapplicants and licensees earlier and more efficiently and to identifY plan for and possibly even avoid potential business closures of licensees due to fmandal matters
The Corporate Securities and Finance Section is headed by the Commissions General Counsel Greg Orner who reports directly to the Executive Director on corporate securities and finance matters The section also includes a Chief Financial Analyst position to be filled soon which will oversee the work ofthe fmancial staff examining the corporate secwities and fmance transactions
The Conunissions Financial Manager Pam Brown haS handled the fmandal analysis of the reported transactions up to now and will continue to perfonn many of the more complex transaction examinations and oversee the work of an accountant Pam Wheelis and a fmancial analyst (planned to be added next year) who are also assigned to the section
ENFORCEMENT
Enforcement for the Missouri Gaming Commission is provided by officers of the Missouri State Highway Patrol and agents of the Internal Revenue Service by way of Memorandums ofUnderstanding which set forth the responsibilities ofeach entity
The enforcement section is headed by Mel Fisher former Superintendent of the Highway Patrol The Gaming Division ofthe Highway Patrol is headed by Captain Dwight Hartung There are seventy-seven officers assigned to the Gaming Division and an additional six officers assigned to the Bingo Enforcement Unit
Some of the advantages ofusing Highway Patrol Officers as gaming agents include
JtfisSOUli Gaming Commission 1996 Annual Report - Page 12
the staff assigned are trained specialists in law enforcement and investigations thus saving the Commission the time effort and expense of recruitment and training
because the agents are licensed law enforcement officers they command immediate respect when interacting with licensees and customers aboard a riverboat as well as when they are in a foreign jurisdiction conducting an investigation
~ the Commission feels that it is important to rotate enforcement staff aboard the various boats this process is much easier with seasoned law enforcement officers who are used to being rotated between assignments as well as in and out of the gaming division
gt provides the ability to access sensitive law enforcement information from other jurisdictions
gt their experience in conducting investigations and handling emergency situations has proven invaluable
The Commissions background investigation units consist of three Highway Patrol Officers and one IRS agent The background investigations conducted by the Missouri Gaming Commission are thorough and take approximately four months to complete if no unusual complications or delays emerge The Commission not only investigates the finances and activities of the company and all its key people but traces the source ofall their funds to ensure that no criminal elements are funding the operation from behind the scene An outline that provides a sketch of a typical background investigation is contained on page 20
LEGAL amp LEGISLATIVE AFFAIRS
The legal amp legislative affairs section is responsible for all legal matters presented to the commission prior to litigation Any litigation involving the commission is handled by the Attorney Generals office In addition this section which is headed by Deputy Director Kevin Mullally develops and drafts legislation endorsed by the commission as well as all rules and regulations Moreover the legal section manages an administrative appeals docket where Mullally serves as Hearing Officer
Greg Orner serves as the commissions general coWlSel and works closely with the enforcement staff reviewing incident reports investigative issues and possible disciplinary actions In addition Mr Omer heads the Corporate Securities section
Some of tbe otber responsibilities of the legal section include
~ Drafting all resolutions for all commission actions and
gt preparing disciplinary complaints and denial orders for proposed action against licensees and
gt conducting quasi-legislative hearings on issues such as continuous docking and boat design and
gt providing legal research services and
gt organizing and maintaining records ofall official commission actions and commission policies and
gt handling inquiries from legislators constituents and other state regulatory agencies
The commissions legal staff is supported by paralegal Heather Grefrath and legal secretary Susan Sundermeyer This support staff is critical to daily operations ofthe legal section and is particularly valuable in the sections role in preparing and managing the rules and regulations all documents necessary for commission meetings and all documents declaring commission policy
In 1997 the legal section will be augmented with the addition ofstaff attorney Robert Little
PENDING LITIGATION
The Missouri Gaming commission denied one occupational license in 1994 thirteen occupational licenses in 1995 and thirty-five occupational licenses in 1996 Each aplicant is presumed WlSuitable and has the burden of proof to prove his or her suitability to the Conunssion An individual may request a hearing to attempt to prove suitability to the Commission by serving
Missouri Gaming Commission 1996Annual Reporl- Page 13
such a request on the commissions Executive Director The following is a list of pending litigation
Petitioner Venue
Bingo Systems amp Supply AHC Cape Girardeau Elks Lodge 639 AHC Cape Girardeau VFW Post 3838 AHC Edwin Pete Rhodes AHC Ideal Bingo Supplies Inc AHC Mary Cracchiolo AHC Maureen L Scott AHC Meramec-Amold Eagles Auxiliary AHC Myron B Carter Sr AHC Pan-Education Institute AHC Raymond J Drury AHC Raytown Women of Today AHC Sandra Termini AHC Stanley L Turner AHC Missouri Gaming Co ~Disc Action MGC Harrahs -Disciplinary Action MGC Boyd Kansas City Inc -Disc Action MGC Jeffery Koester -Denied License MGC Gary Franklin -Denied License MGC Mark Zwolle -Disciplinary Action MGC Anthony Civella -Exclusion MGC Peter Simone -Exclusion MGC Yolanda Nettles MGC Tracy Anderson MGC Carrie Gentry MGC Jimmie B Carsey MGC Cape Girardeau Elks amp VFW Circuit Court ofCape Girardeau County MGC v Veterans Commission
st Louis Public Schools Missouri Supreme Court W Todd Akin v MGC Missouri Supreme Court William D Cmmnisano Jr Missouri Court ofAppeals-Western District Pen-Yan Investment Inc Missouri Court ofAppeals-Western District
SUMMARY OF PENDING LITIGATION
There are fourteen bingo cases pending in the Administrative Hearing Commission
There are three disciplinary cases at the Commission level against gaming licensees pending the outcome ofPen-Yon Investment Inc v Boyd Kansas City Inc and MGC
Pen-Yon Investment Inc v Boyd Kansas City Inc MGC is pending in the Missouri Court ofAppeals Western District regarding disciplinary action taken against Boyd for associating in business affairs with a person who has a felony police record The Commission imposed a fine against Boyd and prohibited Boyd from collecting or distributing any funds from the machines under its service agreement with Pen-Yan
MGC v Missouri Veterans Commission St Louis Public Schools is pending in the Missouri Supreme Court regarding funds received from fmes imposed by the Commission
In W Todd Akin et 01 v MGC the Circuit Court ofCole County ruled in favor of the commission on summary judgment The suit challenges the Commissions authority to grant or deny Harrahs Maryland Heights Corp and Players Maryland Heights LP a license for a continuously docked excursion gambling boat within a man-made basin filled by water from the Mississippi River The petitioners have appealed and the matter is now before the Missouri Supreme Court
Cape Girardeau Elks Lodge et aI v MGC is pending in the Circuit Court of Cape Girardeau County regarding the Commissions decision to suspend the Cape Girardeau Elks Lodge bingo license
In the Matler oWilliam D Cammisano Jr there is an appeal pending in the Missouri Court ofAppeals Western District regarding the Commissions decision to place Mr Cammisano on its List of Excluded Persons
MISSOURI GAMING COMMISSIONS EXCLUSION LIST
The Missouri Gaming Commissionplaced two individuals in 1994 two individuals in 1995 and two individuals in 1996 on the commissions Exclusion List Placement of these individuals on the Exclusion List has been based on prior convictions
As a result of placement on the Exclusion List each individual shall not be permitted eoby into any portion of a riverboat gaming operation within the state ofMissouri and shall be ejected ifdiscovered on such premises Furthermore Excluded Persons shall be prohibited from contact of any kind with Missouri riverboat gaming operations Persons placed on the Listmay file a written petition with the Commission to request a hearing to have their name
JlrJissOIlri Gaming Commission 1996 Annual Report - Page 14
removed from the Exclusion List Currentlyone individual has appealed to the Western District of Missouri and two otbers are pending hearings by the Missouri Gaming Commission
MISSOURI GAMING COMMISSIONS DISCIPLINARY ACTIONS AGAINSTOCCUPATIONAL LICENSEES
The Missouri Gaming Commission has taken disciplinary action against twenty-eight occupational licensees as of September 30 1996 Preliminary
Orders for Disciplinary Action set forth statements of fact that support the proposed disciplinary action and the regulatory and statutory sections involved Individuals may request a hearing by serving such a request on the Commissions Executive Director Currently four individuals have sought hearings before the Commission one ofwhich is stm pending
Occupational License Denials 1994-1996
40
l 30
lt0 c Q)
0 lt5 20 i-Q) 0 E ~ 10
o Year Licenses 1994 1995 1996 IiiI Licenses Denials 1 13 35
Voluntary Exclusions On December 30 1996 after six months of research and consultation the
commission established a unique program to combat problem gambling The List of Disassociated Persons is the result of many months ofconsultation with treatment professionals that help problem gamblers The program allows problem gamblers to exclude themselves from Missouri riverboat casinos under the threat ofarrest for trespassing
In exchange for agreeing not to patronize Missouri riverboat casinos the problem gambler is removed from all casino mailing lists and direct marketing promotions In addition the operators are required to deny persons on the List check cashing privileges and must take away their VIP or players club card
Treatment professionals have advised the commission that the only way for a problem gambler to get help is to admit that heshe has a problem and to accept personal responsibility for that problem by seeking treatment
The Disassociated Persons program is a valuable tool in addressing problem gambling because it requires the individual to admit to having a gambling problem to agree to seek treatment and stay away from gambling casinos Furthermore it includes severe consequences if the problem gambler succumbs to the temptation to gamble Moreover it offers some protection to the problem gambler from the marketing promotions that encourage people to visit the casino properties
The program operates in the following manner
~ The problem gambler must obtain an application for placement on the List ofDisassociated Persons from the commission
~ the application contains various information about the individual an admission that the person is a problem gambler and agrees to stay off Missouri riverboats and seek treatment an authorization to release this information to riverboat operators as well as a Waiver releasing the commission and the licensee from any liability associated with enforcing the rules of the program
~ the application must be personally presented to a commission agent at which time the information is verified and the rules of the program are explained
~ the application is a closed record and its contents may only be disclosed to necessary commission and riverboat personnel
~ the commission considers all applications in closed session
~ once a person is placed on the List heshe cannot petition for removal After consulting with treatment professionals the commission concluded that problem gambling requires lifetime treatment and therefore there is no procedure for removal from the List
Missouri is the frrst jurisdiction in the world to propose a program such as this We will continue to monitor and refme the program and look forward to reporting to you on its impact in next years annual report
ft-Iissouri Gaming CommissiOil 1996 Annual Report - Page 16
Brief Timeline of Riverboat Gaming in Missouri ~ May 13 1991 - General Assembly passes House Bill 149 which authorized
referendum to be submitted to the voters in the November 1992 election to determine whether the State Tourism Commission shall have the power to issue riverboat gambling licenses
gt November 31992 - Missouri voters pass referendum allowing riverboat gaming with a majority ofnearly 63
gt January 1993 - Governor Carnahan announces intentions to push legislation creating an independent Gaming Commission to oversee riverboat gambling
April 29 1993 -- SBs 10 amp 11 creating the Missouri Gaming Commission are signed into law by Governor Carnahan and five Commissioners are appointed Robert Wolfson Chairman Robert Clayton William Quinn Dr Jenice Stewart and Avis Tucker
gt April 30 1993 -- Troy Harris et al v The Missouri Gaming Commission amended petition is filed The petition challenges the constitutionality of Senate Bills 10 amp II
gt- May 17 1993 -- The Missouri Gaming Commission holds its first meeting
~ September 1 1993 -- Proposed Rules and EmergencY Rules are adopted
gt September 20 1993 - 19 riverboat gaming license applications are filed with the commission
gt September 20 1993 - Clarence E Mel Fisher hired as Deputy Director for Enforcement
gt September 24 1993 - Commission contracts with the Internal Revenue Service to perform fmancial investigations for the commission Four IRS agents are assigned to the commission
~ September 28 1993 - Commissions enters into and inter-agency agreement with the Missouri State Highway Patrol to provide enforcement services for the commission
~ October I 1993 - Debbie Ferguson joins the commission as Deputy Director for Administration
November 3 1993 - Commission hires Tom Irwin as Executive Director and Kevin Mullally as Deputy Director for Legal amp Legislative Affairs
November 30 1993 -- Commission announces that it will begin background investigations on the following companies President Riverboat Casino-Missouri St Charles Riverfront Station Inc S1 Joseph Riverboat Partners The Missouri Gaming Company GDC (Supplier) IGT (Supplier) Casino Tokens (Supplier) Paul-Son Dice amp Card Company (Supplier)
gt December 22 1993 - Governor Carnahan signs Executive Order 93-50 designating the enforcement section ofthe Missouri Gaming Commission as a criminal justice agency
1994
gt January 25 1994 -- Missouri Supreme Court in Troy Harris v Missouri Gaming Commission strikes down games of chance including slot machines The court ruled that the Commission did have the authority to issue licenses to riverboat where games ofskill are played Specifically mentioned as games ofskill are poker and blackjack The Court remanded six games to lower court for determination as to whether they are games of skill or chance baccarat craps roulette wheel klondike table faro layout and video games ofchance
~ February 1 1994 -- Rules and Regnlations become effective
February 7 1994 -- Legislature passes resolution to place constitutional amendment on the ballot which would allow the legislature to approve games of chance (slot machines) on riverboats and floating facilities on the Missouri and Mississippi Rivers
gt- April 5 1994 -- Voters defeat constitutional amendment allowing games of chance (slot machines) by an unofficial count of 1263 votes
~ April 29 1994 - Finding of Preliminary Suitability issued to President Riverboat Casino S1 Charles Riverfront Station St Joseph Riverboat Partners and The Missouri Gaming Company
Missouri Gaming Commission 1996 AnnualReport - Page 17
Brief Timeline of Riverboat Gaming in Missouri ~ May 20 1994 -- Governor signs into law SB 740 which defmes games of
chance and enacts more stringent ethics provisions The bill also allows the commission to license a barge in an artificial basin as an excursion gambling boat if it can be demonstrated that safely concerns prevent an operator from cruising from that location
~ May 27 1994 - Commission authorizes as games of skin the following Blackjack Caribbean Stud Poker Poker Double Down Stud Poker Pia Gow Poker Poker Texas Hold Em the video representations ofthese games and Craps
gt May 27 1994 -- Commission authorizes President Riverboat Casino-Missouri to operate the Admiral as a continuously docked excursion gambling boat because cruising would cause danger to the boats passengers
gt May 27 1994 -- Gaming Commission issues first two excursion gambling boat licenses to President Riverboat Casino in st Louis and St Charles Riverfront Station in st Charles
gt May 27 1994 -- Initiative petition tbat would allow voters to approve games ofchance is submitted to the Secretary of State for approval of the form ofthe petition
~ June 6 1994 -- Secretary ofState notifies referendum petitioners that the Attorney General has approved the form of their petition The Secretary of State prepared the following petition title that was approved by the Attorney General
Shall the General Assembly be authorized to permit only upon the Mississippi River and the Missouri River lotteries gift enterprises and games ofchance to be conducted on excursion gambling boats and floating facilities
gt June 9 1994 -- Commission prioritizes Aztar Missouri Corporation Boyd Kansas City Inc and Harrahs North Kansas City as companies to be investigated for licensure pursuant to 11 CSR 45-4060
gt June 22 1994 -- Gaming Commission issues licenses to St Joseph Riverboat Partners in St Joseph and The Missouri Gaming Company in Riverside
~ September 20 1994 -- Commission issues a fmding ofpreliminary suitability to Harrahs North Kansas City Corporation
gt September 20 1994 -- Commission authorizes Harrahs North Kansas City Corporation and st Charles Riverfront Stationl to operate excursion gamblillg boats as continuously docked vessels In both cases the commission found that operating a cruising vessel from the proposed site would cause danger to the boats passengers and the project will generate permanent job creation and land-based development
gt September 22 1994 -- Harrahs North Kansas City Corporation is issued an excursion gambling boat license
gt September 28 1994 - Public hearing regarding Capitol Queen and Casino Jncs application for an excursion gambling boat license results in the commission denying CQCs license and prohibiting them from reapplying for two years
gt October 7 1994 - Commission places William D Cammisano Jr and John Termini on its list of excluded persons
gt November 8 1994 -- Voters approve games ofchance
~ December 9 1994 - Games ofchance are allowed on riverboats
gt December 27 1994 - St Charles Riverfront Station is issued a license to operate the St Charles II as an excursion gambling boat This marks the fIrSt time the commission has licensed a second excursion gambling boat for a single development
The approval was for St Charles Riverfront Stations second boat The flTSt boat continued to cruise until April 16 1996
Missouri Gaming Commission 1996 Annual Report - Page 18
Brief Timeline of Riverboat Gaming in Missouri 1995
)gt- February 22 1995 -- Commission announces it will begin background investigation on Hilton Kansas City Corporation for an excursion gambling boat license
~ March 30 1995 - State Auditor releases final audit report of the Missouri Gaming Commission No major deficiencies are noted
~ April 20 1995 - Commission repays $3 million start-up loan to state general revenue fund
)gt- April 25 1995 - Commission approves continuous docking petitions for Boyd Kansas City Inc and Hilton Kansas City Corporation
~ April 25 1995 -- The commission issues a finding ofpreliminary suitability to Aztar Missouri Gaming Corporation
~ April 26 1995 -- The commission issues an excursion gambling boat license to Aztar Missouri Gaming Corporation in Caruthersville Missouri
)gt- May 24 1995 - The commission announces it will begin background investigations on the following companies Harrahs Maryland Heights Corporation Kansas City Station Inc Players Maryland Heights Inc
gt August 28 1995 - Pursuant to House Bill 574 the duties of the Missouri Horse Racing Commission are transferred to the Gaming Commission
~ September 12 1995 - The commission issues a fmding of preliminary suitability to Boyd Kansas City Inc
September 13 1995 - The commission grants the petition ofHarrahs Maryland Heights Corporation and Players Maryland Heights Inc to operate continuously docked excursion gambling boats at their joint venture in Maryland Heights
)gt- September 13 1995 - The commission issues an excursion gambling boat license to Boyd Kansas City Inc
)gtshy November 16 1995 shy The commission fines the following companies for associating with either socially or in business affairs persons with felony police records or persons with a notorious or unsavory reputation Boyd Kansas City Inc Harrahs North Kansas City Corporation The Missouri Gaming Company
1996
)gtshy February 15 1996 - The commission grants continuous docking rights to Aztar Missouri Gaming Corporation for a second boat in Caruthersville Harrahs North Kansas City for a second boat and Kansas City Station Corporation for two boats in Kansas City
~ April 16 1996 - The commission grants continuous docking rights to Argosy in Riverside Missouri S1 Joseph Riverboat Partners and 81 Charles Riverfront Station
~ May 15 1996 - The commission issues a license to Harrahs North Kansas City for the Lucky Star This is the second boat at the Harrahs North Kansas City mcility Included in the project is a 200-room hotel expanded parking and meeting space
~ June 19 1996 -- The commission places William Canunisano Jr on Exclusion List
~ June 27 1996 - The commission places Peter Simone and Anthony T Civella on Exclusion List
August 28 1996 - The commission takes disciplinary action against Boyd Kansas City Inc for periodic failure to take and report turnstile readings
~ October II 1996 - The commission issues a finding of prel iminary suitability to Hilton Kansas City Corporation and Flamingo Hilton Riverboat Casino LoP
October 18 1996 - TIle commission issues a Class B riverboat gambling license 10 HUlon KlIlIStIS City Corporation and a CltlSs A riverboat gambling license 10 Flamingo Hillon Riverboat CtlSino LP
Missouri Gaming Commission 1996Annual Report - Page 19
Outline of a Background Investigation
Review Application fin Completeneiis
~ Establish number ofkey people
~ Check disclosure forms for completeness
gt Check tax release forms
City Selection Process
~ Contact city to determine how the gaming operator was selected
gt Interview Mayor and City Council members
~ Ifa steering committee was used interview members of that committee
Determine ifany city officials own stock in the selected gaming company
~ Obtain minutes ofcouncil meetings that pertain to riverboat issues (a)selection (b) resolution and (c) ordinance
gt Contact city attorney who handled negotiations with gaming company and obtain correspondence between city and gaming company
~ Contact City Economic Development Director (if applicable)
Docksite
gt- Land selected for gaming operation
J Who was it purchased from (how long have they owned the property) J Price (copy ofcontract)J Copy of plat map and legal description J Determine ifany ofcity officials or selection committee members have
ownership interest in docksite
gt Corps ofEngineers Permit
J Status
J Any concerns by Corps J Wetlands involved
~ Contact DNR for any known concerns in area
gt Check with city for any known dwnpsites with possible hazardous material
gt Developmental agreement between city and gaming operator (obtain copy from city)
gt Detennine if development is feasible
J Is support facility land based or floating J Projected nwnber ofjobs economic aid to area J Traffic flow to area - what improvements are needed - who will pay
for improvements
Riverboat
gt Locate boat and obtain all infonnation about boat (cruise schedule liability carrier)
gt Establish design ofriverboat
gt Determine emergency medical plan for boat
gt Determine ifCoast Guard and other safety requirements have been met
Gaming Operator (Public Corporation Partnership Private Company)
gt Establish contact person with operator
J Determine attorney of record for gaming company J Any missing items from application advise contact person
gt Establish home office (Financial Headquarters)
J Determine a good date and location where all key people can be contacted for a personal interview
J Where can financial record be located
Missouri Gaming Commission 1996Annual Report - Page 20
~
Outline of a Background Investigation
J Breakdown ofmanagement (corporate Board ofDirectors major stockholders)
J Establish flow chart of key people and companies owned by gaming operator
~ Investigation ofKey People will include but not be limited to the following
J Check previous employment work records J Check state local and federal intelligence files J Check for other gaming licenses ifapplicable (check with appropriate
regulators)J Check state federal and local courts for any civil litigation J Check for any arrest record J Check personal and business credit J Check state and local tax status IRS will handle federal taxes
gt Other locations ofgaming operations (currently operating and pending locations)
J Contact gaming regulators for respective locations J Travel to sites to view operations
Establish a file for all key people investigated with summaries establish a file for financial records with summary offinancial viability ofcompany and ability to complete obligations to the city and State ofMissouri Establish a file for other locations of licensure along with summary
Associated Investigations
gt All allegations of Any nature must be investigated and a file established with a written summary
~ Associated investigations must be done in a complete and thorough manner and all reports written accurately
gt Upon completion ofall investigations complete reports and summaries a separate press releasable summary must be written This summary must be approved by Gaming Commission legal staff
Missouri Gaming Commission 1996 Annual Report - Page 21
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Missouri Gaming Commission Compliance Audit Objectives for Licensees
ObjectiveAudit Area ~~~~~~~~~
To ensure accuracy of ticket and turnstile counts reported to MGC including compsIVlPs stayovers and promotions
Table Games
Ticketffurnstile
To ensure accuracy of AGR for table games reported to MGC
Electronic Games To ensure accuracy of AGR for electronic games reported to MGC
Cage Accowltability To ensure accuracy ofcage accountability forms and compliance with internal controls and tax reporting regulations
Observations Cage Main Bank Pit Area Slot Area Turnstile Ticketing
PurchaselRedemptions
$500 Loss Limit
Stayover Procedures
To determine that cashiers are complying with internal controls for chips tokens gaming scrip and cash
To determine compliance with MO statutes and internal controls
To determine compliance with MGC regulations and internal controls
To ensure that manual jackpot payouts are properly handled and the required tax fomIS are completed Manual Jackpot Payouts
To ensure that hopper fills are properly handled and comply with internal controls Hopper Fills
To ensure that table fills are properly handled and comply with internal cootrols Table Fills
To ensure that table credits are properly handled and comply with internal controls Table Credits
To ensure that tracking procedures comply with internal controls and the currency transactions are properly completed Patron TrackingCurrency Transaction Reporting
Imprest Bank Balancing To ensure that proper balancing and accountability is performed during a shift change
Coin Vault To ensure proper maintenance of coin chip and token inventory
Satellite CageSSlot Booths To ensure compliance with internal controls and consistency with main cage procedures
TipsGratuities To ensure compliance with MGC regulations and internal controls
Cage AccessSecurity To ensure compliance with internal controls
Turnstile To ensure accuracy of turnstile count for admissions tax calculation
Ticketing To ensure comp Hance with internal controls and proper handling of stubs voids and issuance
MiscellaneousOther
Surveillance Tapes To review activity for hard soft and tip counts and drops to verify compliance with internal controls
Workpaper Preparation and To establish standardized procedures for MGC audit workpapers and audit reports Audit Reports
-
Missouri Gaming Commission 1996 AnnualReport - Page 22
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Audit Area
Monthly Financial Statement Review
Engagement Letters
Objective --shy
To perform a preliminary review ofmonthly financial statement information for proper completion of fmandal statement templates verification ofadjusted gross receipts to MGC reports and to detect any unusual items which justifY further review when conducting on-site audit
To give advance notification to each boat of the date and scope ofaudit being performed
Financial Statement Verification To determine consistency ofmonthly financial statement information submitted to MGC with boats general ledger system
Balance Sheet Accounts
CashCash Reserve Balance
Cash Receipts
Cash Disbursements
shy -- shy
To determine the existence consistency and fair presentation of the cash balance on the monthly fmancial statements
To determine the consistency and filir presentation of the cash balance on the monthly financial statements and the source of large cash receipts other than gaming revenue
___I
To determine the consistency and fair presentation of the cash balance on the monthly fmancial statements and to trace the outflow of large cash disbursements
i
I
--
AccountslN Notes Receivable
Accrued Admission and Gaming Tax Liability
Chip and Token Liability
Progressive Jackpot Liability
To determine the consistency and fair presentation of the accounts receivable andor notes receivable balance in the monthly fmancial statements
To determine the consistency and fair presentation of the accrued admissiongaming tax liability balance in the monthly financial statements
To determine the consistency and fair presentation of the chip and token liability balance in the monthly financial statements
To determine the consistency and fair presentation of the progressive jackpot liability balance in the monthly fmancial statements
---shy
Tips and Gratuities (Accrued Liability)
Customer Deposit Liability
Accounts Payable
Income Statement Accounts
Revenne - Table Games
To determine the consistency and fair presentation of the accrued tips and gratuities liability in the monthly fmancial statements
-lt ---- shy
To determine the consistency and fair presentation of the customer deposit liabilities in the monthly fiscal statements To determine the consistency and fair presentation ofaccounts payable balance in the monthly fmancial statements
--shy
To determine the consistency and fair presentation of table games revenue as reported to MGC daily and in the monthly fmandal statements
Revenue - Electronic Games To determine the consistency and fair presentation of electronic games revenue as reported to MGC daily and in the monthly financial statements
Missouri Gaming Commission 1996 Annual Report - Page 23
------------
---------
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Revenue - Admissions To detennine the consistency and fair presentation ofadmissions revenue as reported to MGC daily and in the monthly fmancial statements
Promotional Expense To determine that comps are properly recorded as expenses and not deducted from revenue in accordance with GAAP
Pre-Opening Costs To determine whether certain pre-opening and licensing costs are properly expensed or amortized over future periods in accordance with GAAP
Workpaper Preparation and Audit Reports To establish standardized procedures for MGC audit workpapers and audit reports
AissOllri Gamillg Commission 1996 Anllual Report - Page 24
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AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
c
Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
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f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
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I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
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ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
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~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
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building The two separate networks were consolidated into one large network that provides email between all members ofthe two sections for the fIrSt time and allows sharing of peripheral equipment such as laser printers
gt Final testing and implementation ofa billing system for enforcement billing to reimburse the state for expenses related to regulating the casino gaming industry
~ Automation ofannual MULES checks required of the 9000 plus gaming occupational license holders eliminating hundreds ofhours ofdata entry time
gt Upgrade of the physical inventory system to provide more complete reports and to track add-on costs to major inventory items
gt Design and development ofan occupational license history tracking system to provide a complete picture of license payments changes in license status duplicate badges issued and changes in employment status
gt Enhancing existing systems to meet new statutes and rules and regulations
AUDET
The audit section is responsible for the critical function ofensuring that the operators pay their taxes promptly and accurately This section headed by Jolm Davis former Internal Revenue Service Manager developed the Commissions tax remittal system that allows the Commission to capture tax remittance data on a daily basis The operators returns are audited by compliance audit siaffheaded up by senior accountant Kara Hardaway
The audit section also develops audit programs reviews and approves each boats system ofintemal controls conducts on-site performance audits reviews the quarterly CPA audits ofAdjusted Gross Receipts Tax and Admission Tax and reviews all internal audit reports prepared by the casinos internal audit staff
During 1996 the audit section revised Minimum Internal Control Standards that all operators must meet These standards were developed by the
audit staff after a lengthy review process that involved input from the IRS enforcement officers and industry experts
The audit section also implemented a system for tracking and depositing all non-tax revenue received from applicants such as application fees from applicants and reimbursements for Commission services
A summary ofsome ofthe audit sections programs and objectives is contained on page 22
BINGO
The Bingo Division is comprised ofthree separate sections which include the Administration Licensing Audit and Enforcement The Bingo Division Supervisor is Ron Pleus The Audit Section Supervisor is Randall Cahill and the Enforcement Section Supervisor is Sergeant Dwight Franklin The bingo statutes have been revised significantly in recent years requiring many administrative changes to occur within the Division Among the more daunting projects were the establishment ofa new licensing category for hall providers and the implementation ofa new supplier-based tax Specific duties within the three sections of the Bingo Division and the recent statntory changes are briefly outlined below
AdministrativeILicensiog Section - This section is responsible for the processing ofall correspondence and the licensing and maintenance ofover 1500 operator licensees which include all regular and special event bingo operators licenses and 200 hall providers annually This section deposits and records an tax and license receipts received on a daily basis This unit maintains a data base of over 31000 records ofindividuals that are involved in the management conduct andor operation ofbingo games and 3000 records of individuals involved as owners and officers of licensed Hall Providers Currently this staff consist ofthree employees Jane Bax Pam Murphy and Tina Freese In conjunction with the data processing staff the administrative section has developed an automated renewal application system which became fully operational January 1996 This system simplifies the renewal process for the licensee and eliminates wasted steps and duplicate information The system has proven to be a tremendous time saver for the not-for-profit volunteer organizations who are required to file renewals and also helps to reduce the staffmg cost and other administrative cost for the Division
Missouri Gaming Commissioll 1996 Allnual Report ~ Page 11
Audit Section - This section is responsible for the timely audit of all Bingo Product Manufacturers and Suppliers and assisting the Enforcement Section with oil-site inspections of bingo operators The audit staff has developed a comprehensive Manufacturer and Supplier audit procedure manual and has developed procedures for the inspection ofbingo operators The procedures for the inspection of bingo operators are used by both the Enforcement and Audit Staffs The audit section has audited all of the licensed Manufacturers and Suppliers during fiscal year 1996 These audits resulted in over $32000000 in unreported taxes and penalties The auditors also assisted enforcement with inspections and investigations of unlicensed suppliers and operators The section conducts on-site inspections of formerly licensed suppliers to determine ifthe products in inventory were being disposed of in accordance with the statutes The audit staff also assists the administrative staff in auditing the operators quarterly repom
Enforeement Section - This section is headed by Sgt Dwight Franklin a 17 year veteran ofthe Missouri Highway Patrol Sgt Franklin has six (6) officers assigned to the enforcement section Their duties include background investigations of all Manufacturers and Suppliers to include all the key personnel in those companies These investigations include criminal checks fmancial checks past employment history and all litigation involving the applicant In addition the enforcement section is responsible for investigating complaints on the licensed bingo organizations The complaints range from minor rule violations to thefts of large sums of money Complaints are received on a daily basis and are investigated on the basis of severity location and available manpower An additional duty of the Enforcement Section is to complete background investigations on all new potential employees of the Gaming Commission
CORPORATE SECURITIES AND FINANCE
The Commission has established a Section of Corporate Securities and Finance to address the challenge ofregulating the complex fmancial corporate structuring and contractual transactions involving publicly traded and privately held gaming companies This section is comprised of staff trained in legal accounting and business matters to perform examinations of these transactions
The suitability issues examined by the Corporate Securities and Finance Section include complex fmancial and legal suitability issues such as fmancial soundness corporate control legal compliance and procedural licensing issues
The sections examinations are coordinated closely with the Enforcement Division for background investigations and disciplinary matters
Typical transactions that are examined by the section include mergers and acquisitions public debt and equity issuances and private financings such as bank loans and credit facilities The goal of this new section is to provide the Commission with more thorough and sophisticated investigations and analysis of the suitability ofgaming companies and with a uniform system for providing this analysis on corporate securities and fmance issues Through this section the Commission hopes to identifY suitability problems ofapplicants and licensees earlier and more efficiently and to identifY plan for and possibly even avoid potential business closures of licensees due to fmandal matters
The Corporate Securities and Finance Section is headed by the Commissions General Counsel Greg Orner who reports directly to the Executive Director on corporate securities and finance matters The section also includes a Chief Financial Analyst position to be filled soon which will oversee the work ofthe fmancial staff examining the corporate secwities and fmance transactions
The Conunissions Financial Manager Pam Brown haS handled the fmandal analysis of the reported transactions up to now and will continue to perfonn many of the more complex transaction examinations and oversee the work of an accountant Pam Wheelis and a fmancial analyst (planned to be added next year) who are also assigned to the section
ENFORCEMENT
Enforcement for the Missouri Gaming Commission is provided by officers of the Missouri State Highway Patrol and agents of the Internal Revenue Service by way of Memorandums ofUnderstanding which set forth the responsibilities ofeach entity
The enforcement section is headed by Mel Fisher former Superintendent of the Highway Patrol The Gaming Division ofthe Highway Patrol is headed by Captain Dwight Hartung There are seventy-seven officers assigned to the Gaming Division and an additional six officers assigned to the Bingo Enforcement Unit
Some of the advantages ofusing Highway Patrol Officers as gaming agents include
JtfisSOUli Gaming Commission 1996 Annual Report - Page 12
the staff assigned are trained specialists in law enforcement and investigations thus saving the Commission the time effort and expense of recruitment and training
because the agents are licensed law enforcement officers they command immediate respect when interacting with licensees and customers aboard a riverboat as well as when they are in a foreign jurisdiction conducting an investigation
~ the Commission feels that it is important to rotate enforcement staff aboard the various boats this process is much easier with seasoned law enforcement officers who are used to being rotated between assignments as well as in and out of the gaming division
gt provides the ability to access sensitive law enforcement information from other jurisdictions
gt their experience in conducting investigations and handling emergency situations has proven invaluable
The Commissions background investigation units consist of three Highway Patrol Officers and one IRS agent The background investigations conducted by the Missouri Gaming Commission are thorough and take approximately four months to complete if no unusual complications or delays emerge The Commission not only investigates the finances and activities of the company and all its key people but traces the source ofall their funds to ensure that no criminal elements are funding the operation from behind the scene An outline that provides a sketch of a typical background investigation is contained on page 20
LEGAL amp LEGISLATIVE AFFAIRS
The legal amp legislative affairs section is responsible for all legal matters presented to the commission prior to litigation Any litigation involving the commission is handled by the Attorney Generals office In addition this section which is headed by Deputy Director Kevin Mullally develops and drafts legislation endorsed by the commission as well as all rules and regulations Moreover the legal section manages an administrative appeals docket where Mullally serves as Hearing Officer
Greg Orner serves as the commissions general coWlSel and works closely with the enforcement staff reviewing incident reports investigative issues and possible disciplinary actions In addition Mr Omer heads the Corporate Securities section
Some of tbe otber responsibilities of the legal section include
~ Drafting all resolutions for all commission actions and
gt preparing disciplinary complaints and denial orders for proposed action against licensees and
gt conducting quasi-legislative hearings on issues such as continuous docking and boat design and
gt providing legal research services and
gt organizing and maintaining records ofall official commission actions and commission policies and
gt handling inquiries from legislators constituents and other state regulatory agencies
The commissions legal staff is supported by paralegal Heather Grefrath and legal secretary Susan Sundermeyer This support staff is critical to daily operations ofthe legal section and is particularly valuable in the sections role in preparing and managing the rules and regulations all documents necessary for commission meetings and all documents declaring commission policy
In 1997 the legal section will be augmented with the addition ofstaff attorney Robert Little
PENDING LITIGATION
The Missouri Gaming commission denied one occupational license in 1994 thirteen occupational licenses in 1995 and thirty-five occupational licenses in 1996 Each aplicant is presumed WlSuitable and has the burden of proof to prove his or her suitability to the Conunssion An individual may request a hearing to attempt to prove suitability to the Commission by serving
Missouri Gaming Commission 1996Annual Reporl- Page 13
such a request on the commissions Executive Director The following is a list of pending litigation
Petitioner Venue
Bingo Systems amp Supply AHC Cape Girardeau Elks Lodge 639 AHC Cape Girardeau VFW Post 3838 AHC Edwin Pete Rhodes AHC Ideal Bingo Supplies Inc AHC Mary Cracchiolo AHC Maureen L Scott AHC Meramec-Amold Eagles Auxiliary AHC Myron B Carter Sr AHC Pan-Education Institute AHC Raymond J Drury AHC Raytown Women of Today AHC Sandra Termini AHC Stanley L Turner AHC Missouri Gaming Co ~Disc Action MGC Harrahs -Disciplinary Action MGC Boyd Kansas City Inc -Disc Action MGC Jeffery Koester -Denied License MGC Gary Franklin -Denied License MGC Mark Zwolle -Disciplinary Action MGC Anthony Civella -Exclusion MGC Peter Simone -Exclusion MGC Yolanda Nettles MGC Tracy Anderson MGC Carrie Gentry MGC Jimmie B Carsey MGC Cape Girardeau Elks amp VFW Circuit Court ofCape Girardeau County MGC v Veterans Commission
st Louis Public Schools Missouri Supreme Court W Todd Akin v MGC Missouri Supreme Court William D Cmmnisano Jr Missouri Court ofAppeals-Western District Pen-Yan Investment Inc Missouri Court ofAppeals-Western District
SUMMARY OF PENDING LITIGATION
There are fourteen bingo cases pending in the Administrative Hearing Commission
There are three disciplinary cases at the Commission level against gaming licensees pending the outcome ofPen-Yon Investment Inc v Boyd Kansas City Inc and MGC
Pen-Yon Investment Inc v Boyd Kansas City Inc MGC is pending in the Missouri Court ofAppeals Western District regarding disciplinary action taken against Boyd for associating in business affairs with a person who has a felony police record The Commission imposed a fine against Boyd and prohibited Boyd from collecting or distributing any funds from the machines under its service agreement with Pen-Yan
MGC v Missouri Veterans Commission St Louis Public Schools is pending in the Missouri Supreme Court regarding funds received from fmes imposed by the Commission
In W Todd Akin et 01 v MGC the Circuit Court ofCole County ruled in favor of the commission on summary judgment The suit challenges the Commissions authority to grant or deny Harrahs Maryland Heights Corp and Players Maryland Heights LP a license for a continuously docked excursion gambling boat within a man-made basin filled by water from the Mississippi River The petitioners have appealed and the matter is now before the Missouri Supreme Court
Cape Girardeau Elks Lodge et aI v MGC is pending in the Circuit Court of Cape Girardeau County regarding the Commissions decision to suspend the Cape Girardeau Elks Lodge bingo license
In the Matler oWilliam D Cammisano Jr there is an appeal pending in the Missouri Court ofAppeals Western District regarding the Commissions decision to place Mr Cammisano on its List of Excluded Persons
MISSOURI GAMING COMMISSIONS EXCLUSION LIST
The Missouri Gaming Commissionplaced two individuals in 1994 two individuals in 1995 and two individuals in 1996 on the commissions Exclusion List Placement of these individuals on the Exclusion List has been based on prior convictions
As a result of placement on the Exclusion List each individual shall not be permitted eoby into any portion of a riverboat gaming operation within the state ofMissouri and shall be ejected ifdiscovered on such premises Furthermore Excluded Persons shall be prohibited from contact of any kind with Missouri riverboat gaming operations Persons placed on the Listmay file a written petition with the Commission to request a hearing to have their name
JlrJissOIlri Gaming Commission 1996 Annual Report - Page 14
removed from the Exclusion List Currentlyone individual has appealed to the Western District of Missouri and two otbers are pending hearings by the Missouri Gaming Commission
MISSOURI GAMING COMMISSIONS DISCIPLINARY ACTIONS AGAINSTOCCUPATIONAL LICENSEES
The Missouri Gaming Commission has taken disciplinary action against twenty-eight occupational licensees as of September 30 1996 Preliminary
Orders for Disciplinary Action set forth statements of fact that support the proposed disciplinary action and the regulatory and statutory sections involved Individuals may request a hearing by serving such a request on the Commissions Executive Director Currently four individuals have sought hearings before the Commission one ofwhich is stm pending
Occupational License Denials 1994-1996
40
l 30
lt0 c Q)
0 lt5 20 i-Q) 0 E ~ 10
o Year Licenses 1994 1995 1996 IiiI Licenses Denials 1 13 35
Voluntary Exclusions On December 30 1996 after six months of research and consultation the
commission established a unique program to combat problem gambling The List of Disassociated Persons is the result of many months ofconsultation with treatment professionals that help problem gamblers The program allows problem gamblers to exclude themselves from Missouri riverboat casinos under the threat ofarrest for trespassing
In exchange for agreeing not to patronize Missouri riverboat casinos the problem gambler is removed from all casino mailing lists and direct marketing promotions In addition the operators are required to deny persons on the List check cashing privileges and must take away their VIP or players club card
Treatment professionals have advised the commission that the only way for a problem gambler to get help is to admit that heshe has a problem and to accept personal responsibility for that problem by seeking treatment
The Disassociated Persons program is a valuable tool in addressing problem gambling because it requires the individual to admit to having a gambling problem to agree to seek treatment and stay away from gambling casinos Furthermore it includes severe consequences if the problem gambler succumbs to the temptation to gamble Moreover it offers some protection to the problem gambler from the marketing promotions that encourage people to visit the casino properties
The program operates in the following manner
~ The problem gambler must obtain an application for placement on the List ofDisassociated Persons from the commission
~ the application contains various information about the individual an admission that the person is a problem gambler and agrees to stay off Missouri riverboats and seek treatment an authorization to release this information to riverboat operators as well as a Waiver releasing the commission and the licensee from any liability associated with enforcing the rules of the program
~ the application must be personally presented to a commission agent at which time the information is verified and the rules of the program are explained
~ the application is a closed record and its contents may only be disclosed to necessary commission and riverboat personnel
~ the commission considers all applications in closed session
~ once a person is placed on the List heshe cannot petition for removal After consulting with treatment professionals the commission concluded that problem gambling requires lifetime treatment and therefore there is no procedure for removal from the List
Missouri is the frrst jurisdiction in the world to propose a program such as this We will continue to monitor and refme the program and look forward to reporting to you on its impact in next years annual report
ft-Iissouri Gaming CommissiOil 1996 Annual Report - Page 16
Brief Timeline of Riverboat Gaming in Missouri ~ May 13 1991 - General Assembly passes House Bill 149 which authorized
referendum to be submitted to the voters in the November 1992 election to determine whether the State Tourism Commission shall have the power to issue riverboat gambling licenses
gt November 31992 - Missouri voters pass referendum allowing riverboat gaming with a majority ofnearly 63
gt January 1993 - Governor Carnahan announces intentions to push legislation creating an independent Gaming Commission to oversee riverboat gambling
April 29 1993 -- SBs 10 amp 11 creating the Missouri Gaming Commission are signed into law by Governor Carnahan and five Commissioners are appointed Robert Wolfson Chairman Robert Clayton William Quinn Dr Jenice Stewart and Avis Tucker
gt April 30 1993 -- Troy Harris et al v The Missouri Gaming Commission amended petition is filed The petition challenges the constitutionality of Senate Bills 10 amp II
gt- May 17 1993 -- The Missouri Gaming Commission holds its first meeting
~ September 1 1993 -- Proposed Rules and EmergencY Rules are adopted
gt September 20 1993 - 19 riverboat gaming license applications are filed with the commission
gt September 20 1993 - Clarence E Mel Fisher hired as Deputy Director for Enforcement
gt September 24 1993 - Commission contracts with the Internal Revenue Service to perform fmancial investigations for the commission Four IRS agents are assigned to the commission
~ September 28 1993 - Commissions enters into and inter-agency agreement with the Missouri State Highway Patrol to provide enforcement services for the commission
~ October I 1993 - Debbie Ferguson joins the commission as Deputy Director for Administration
November 3 1993 - Commission hires Tom Irwin as Executive Director and Kevin Mullally as Deputy Director for Legal amp Legislative Affairs
November 30 1993 -- Commission announces that it will begin background investigations on the following companies President Riverboat Casino-Missouri St Charles Riverfront Station Inc S1 Joseph Riverboat Partners The Missouri Gaming Company GDC (Supplier) IGT (Supplier) Casino Tokens (Supplier) Paul-Son Dice amp Card Company (Supplier)
gt December 22 1993 - Governor Carnahan signs Executive Order 93-50 designating the enforcement section ofthe Missouri Gaming Commission as a criminal justice agency
1994
gt January 25 1994 -- Missouri Supreme Court in Troy Harris v Missouri Gaming Commission strikes down games of chance including slot machines The court ruled that the Commission did have the authority to issue licenses to riverboat where games ofskill are played Specifically mentioned as games ofskill are poker and blackjack The Court remanded six games to lower court for determination as to whether they are games of skill or chance baccarat craps roulette wheel klondike table faro layout and video games ofchance
~ February 1 1994 -- Rules and Regnlations become effective
February 7 1994 -- Legislature passes resolution to place constitutional amendment on the ballot which would allow the legislature to approve games of chance (slot machines) on riverboats and floating facilities on the Missouri and Mississippi Rivers
gt- April 5 1994 -- Voters defeat constitutional amendment allowing games of chance (slot machines) by an unofficial count of 1263 votes
~ April 29 1994 - Finding of Preliminary Suitability issued to President Riverboat Casino S1 Charles Riverfront Station St Joseph Riverboat Partners and The Missouri Gaming Company
Missouri Gaming Commission 1996 AnnualReport - Page 17
Brief Timeline of Riverboat Gaming in Missouri ~ May 20 1994 -- Governor signs into law SB 740 which defmes games of
chance and enacts more stringent ethics provisions The bill also allows the commission to license a barge in an artificial basin as an excursion gambling boat if it can be demonstrated that safely concerns prevent an operator from cruising from that location
~ May 27 1994 - Commission authorizes as games of skin the following Blackjack Caribbean Stud Poker Poker Double Down Stud Poker Pia Gow Poker Poker Texas Hold Em the video representations ofthese games and Craps
gt May 27 1994 -- Commission authorizes President Riverboat Casino-Missouri to operate the Admiral as a continuously docked excursion gambling boat because cruising would cause danger to the boats passengers
gt May 27 1994 -- Gaming Commission issues first two excursion gambling boat licenses to President Riverboat Casino in st Louis and St Charles Riverfront Station in st Charles
gt May 27 1994 -- Initiative petition tbat would allow voters to approve games ofchance is submitted to the Secretary of State for approval of the form ofthe petition
~ June 6 1994 -- Secretary ofState notifies referendum petitioners that the Attorney General has approved the form of their petition The Secretary of State prepared the following petition title that was approved by the Attorney General
Shall the General Assembly be authorized to permit only upon the Mississippi River and the Missouri River lotteries gift enterprises and games ofchance to be conducted on excursion gambling boats and floating facilities
gt June 9 1994 -- Commission prioritizes Aztar Missouri Corporation Boyd Kansas City Inc and Harrahs North Kansas City as companies to be investigated for licensure pursuant to 11 CSR 45-4060
gt June 22 1994 -- Gaming Commission issues licenses to St Joseph Riverboat Partners in St Joseph and The Missouri Gaming Company in Riverside
~ September 20 1994 -- Commission issues a fmding ofpreliminary suitability to Harrahs North Kansas City Corporation
gt September 20 1994 -- Commission authorizes Harrahs North Kansas City Corporation and st Charles Riverfront Stationl to operate excursion gamblillg boats as continuously docked vessels In both cases the commission found that operating a cruising vessel from the proposed site would cause danger to the boats passengers and the project will generate permanent job creation and land-based development
gt September 22 1994 -- Harrahs North Kansas City Corporation is issued an excursion gambling boat license
gt September 28 1994 - Public hearing regarding Capitol Queen and Casino Jncs application for an excursion gambling boat license results in the commission denying CQCs license and prohibiting them from reapplying for two years
gt October 7 1994 - Commission places William D Cammisano Jr and John Termini on its list of excluded persons
gt November 8 1994 -- Voters approve games ofchance
~ December 9 1994 - Games ofchance are allowed on riverboats
gt December 27 1994 - St Charles Riverfront Station is issued a license to operate the St Charles II as an excursion gambling boat This marks the fIrSt time the commission has licensed a second excursion gambling boat for a single development
The approval was for St Charles Riverfront Stations second boat The flTSt boat continued to cruise until April 16 1996
Missouri Gaming Commission 1996 Annual Report - Page 18
Brief Timeline of Riverboat Gaming in Missouri 1995
)gt- February 22 1995 -- Commission announces it will begin background investigation on Hilton Kansas City Corporation for an excursion gambling boat license
~ March 30 1995 - State Auditor releases final audit report of the Missouri Gaming Commission No major deficiencies are noted
~ April 20 1995 - Commission repays $3 million start-up loan to state general revenue fund
)gt- April 25 1995 - Commission approves continuous docking petitions for Boyd Kansas City Inc and Hilton Kansas City Corporation
~ April 25 1995 -- The commission issues a finding ofpreliminary suitability to Aztar Missouri Gaming Corporation
~ April 26 1995 -- The commission issues an excursion gambling boat license to Aztar Missouri Gaming Corporation in Caruthersville Missouri
)gt- May 24 1995 - The commission announces it will begin background investigations on the following companies Harrahs Maryland Heights Corporation Kansas City Station Inc Players Maryland Heights Inc
gt August 28 1995 - Pursuant to House Bill 574 the duties of the Missouri Horse Racing Commission are transferred to the Gaming Commission
~ September 12 1995 - The commission issues a fmding of preliminary suitability to Boyd Kansas City Inc
September 13 1995 - The commission grants the petition ofHarrahs Maryland Heights Corporation and Players Maryland Heights Inc to operate continuously docked excursion gambling boats at their joint venture in Maryland Heights
)gt- September 13 1995 - The commission issues an excursion gambling boat license to Boyd Kansas City Inc
)gtshy November 16 1995 shy The commission fines the following companies for associating with either socially or in business affairs persons with felony police records or persons with a notorious or unsavory reputation Boyd Kansas City Inc Harrahs North Kansas City Corporation The Missouri Gaming Company
1996
)gtshy February 15 1996 - The commission grants continuous docking rights to Aztar Missouri Gaming Corporation for a second boat in Caruthersville Harrahs North Kansas City for a second boat and Kansas City Station Corporation for two boats in Kansas City
~ April 16 1996 - The commission grants continuous docking rights to Argosy in Riverside Missouri S1 Joseph Riverboat Partners and 81 Charles Riverfront Station
~ May 15 1996 - The commission issues a license to Harrahs North Kansas City for the Lucky Star This is the second boat at the Harrahs North Kansas City mcility Included in the project is a 200-room hotel expanded parking and meeting space
~ June 19 1996 -- The commission places William Canunisano Jr on Exclusion List
~ June 27 1996 - The commission places Peter Simone and Anthony T Civella on Exclusion List
August 28 1996 - The commission takes disciplinary action against Boyd Kansas City Inc for periodic failure to take and report turnstile readings
~ October II 1996 - The commission issues a finding of prel iminary suitability to Hilton Kansas City Corporation and Flamingo Hilton Riverboat Casino LoP
October 18 1996 - TIle commission issues a Class B riverboat gambling license 10 HUlon KlIlIStIS City Corporation and a CltlSs A riverboat gambling license 10 Flamingo Hillon Riverboat CtlSino LP
Missouri Gaming Commission 1996Annual Report - Page 19
Outline of a Background Investigation
Review Application fin Completeneiis
~ Establish number ofkey people
~ Check disclosure forms for completeness
gt Check tax release forms
City Selection Process
~ Contact city to determine how the gaming operator was selected
gt Interview Mayor and City Council members
~ Ifa steering committee was used interview members of that committee
Determine ifany city officials own stock in the selected gaming company
~ Obtain minutes ofcouncil meetings that pertain to riverboat issues (a)selection (b) resolution and (c) ordinance
gt Contact city attorney who handled negotiations with gaming company and obtain correspondence between city and gaming company
~ Contact City Economic Development Director (if applicable)
Docksite
gt- Land selected for gaming operation
J Who was it purchased from (how long have they owned the property) J Price (copy ofcontract)J Copy of plat map and legal description J Determine ifany ofcity officials or selection committee members have
ownership interest in docksite
gt Corps ofEngineers Permit
J Status
J Any concerns by Corps J Wetlands involved
~ Contact DNR for any known concerns in area
gt Check with city for any known dwnpsites with possible hazardous material
gt Developmental agreement between city and gaming operator (obtain copy from city)
gt Detennine if development is feasible
J Is support facility land based or floating J Projected nwnber ofjobs economic aid to area J Traffic flow to area - what improvements are needed - who will pay
for improvements
Riverboat
gt Locate boat and obtain all infonnation about boat (cruise schedule liability carrier)
gt Establish design ofriverboat
gt Determine emergency medical plan for boat
gt Determine ifCoast Guard and other safety requirements have been met
Gaming Operator (Public Corporation Partnership Private Company)
gt Establish contact person with operator
J Determine attorney of record for gaming company J Any missing items from application advise contact person
gt Establish home office (Financial Headquarters)
J Determine a good date and location where all key people can be contacted for a personal interview
J Where can financial record be located
Missouri Gaming Commission 1996Annual Report - Page 20
~
Outline of a Background Investigation
J Breakdown ofmanagement (corporate Board ofDirectors major stockholders)
J Establish flow chart of key people and companies owned by gaming operator
~ Investigation ofKey People will include but not be limited to the following
J Check previous employment work records J Check state local and federal intelligence files J Check for other gaming licenses ifapplicable (check with appropriate
regulators)J Check state federal and local courts for any civil litigation J Check for any arrest record J Check personal and business credit J Check state and local tax status IRS will handle federal taxes
gt Other locations ofgaming operations (currently operating and pending locations)
J Contact gaming regulators for respective locations J Travel to sites to view operations
Establish a file for all key people investigated with summaries establish a file for financial records with summary offinancial viability ofcompany and ability to complete obligations to the city and State ofMissouri Establish a file for other locations of licensure along with summary
Associated Investigations
gt All allegations of Any nature must be investigated and a file established with a written summary
~ Associated investigations must be done in a complete and thorough manner and all reports written accurately
gt Upon completion ofall investigations complete reports and summaries a separate press releasable summary must be written This summary must be approved by Gaming Commission legal staff
Missouri Gaming Commission 1996 Annual Report - Page 21
------------
--------
-----
------
---
---------
----------
Missouri Gaming Commission Compliance Audit Objectives for Licensees
ObjectiveAudit Area ~~~~~~~~~
To ensure accuracy of ticket and turnstile counts reported to MGC including compsIVlPs stayovers and promotions
Table Games
Ticketffurnstile
To ensure accuracy of AGR for table games reported to MGC
Electronic Games To ensure accuracy of AGR for electronic games reported to MGC
Cage Accowltability To ensure accuracy ofcage accountability forms and compliance with internal controls and tax reporting regulations
Observations Cage Main Bank Pit Area Slot Area Turnstile Ticketing
PurchaselRedemptions
$500 Loss Limit
Stayover Procedures
To determine that cashiers are complying with internal controls for chips tokens gaming scrip and cash
To determine compliance with MO statutes and internal controls
To determine compliance with MGC regulations and internal controls
To ensure that manual jackpot payouts are properly handled and the required tax fomIS are completed Manual Jackpot Payouts
To ensure that hopper fills are properly handled and comply with internal controls Hopper Fills
To ensure that table fills are properly handled and comply with internal cootrols Table Fills
To ensure that table credits are properly handled and comply with internal controls Table Credits
To ensure that tracking procedures comply with internal controls and the currency transactions are properly completed Patron TrackingCurrency Transaction Reporting
Imprest Bank Balancing To ensure that proper balancing and accountability is performed during a shift change
Coin Vault To ensure proper maintenance of coin chip and token inventory
Satellite CageSSlot Booths To ensure compliance with internal controls and consistency with main cage procedures
TipsGratuities To ensure compliance with MGC regulations and internal controls
Cage AccessSecurity To ensure compliance with internal controls
Turnstile To ensure accuracy of turnstile count for admissions tax calculation
Ticketing To ensure comp Hance with internal controls and proper handling of stubs voids and issuance
MiscellaneousOther
Surveillance Tapes To review activity for hard soft and tip counts and drops to verify compliance with internal controls
Workpaper Preparation and To establish standardized procedures for MGC audit workpapers and audit reports Audit Reports
-
Missouri Gaming Commission 1996 AnnualReport - Page 22
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Audit Area
Monthly Financial Statement Review
Engagement Letters
Objective --shy
To perform a preliminary review ofmonthly financial statement information for proper completion of fmandal statement templates verification ofadjusted gross receipts to MGC reports and to detect any unusual items which justifY further review when conducting on-site audit
To give advance notification to each boat of the date and scope ofaudit being performed
Financial Statement Verification To determine consistency ofmonthly financial statement information submitted to MGC with boats general ledger system
Balance Sheet Accounts
CashCash Reserve Balance
Cash Receipts
Cash Disbursements
shy -- shy
To determine the existence consistency and fair presentation of the cash balance on the monthly fmancial statements
To determine the consistency and filir presentation of the cash balance on the monthly financial statements and the source of large cash receipts other than gaming revenue
___I
To determine the consistency and fair presentation of the cash balance on the monthly fmancial statements and to trace the outflow of large cash disbursements
i
I
--
AccountslN Notes Receivable
Accrued Admission and Gaming Tax Liability
Chip and Token Liability
Progressive Jackpot Liability
To determine the consistency and fair presentation of the accounts receivable andor notes receivable balance in the monthly fmancial statements
To determine the consistency and fair presentation of the accrued admissiongaming tax liability balance in the monthly financial statements
To determine the consistency and fair presentation of the chip and token liability balance in the monthly financial statements
To determine the consistency and fair presentation of the progressive jackpot liability balance in the monthly fmancial statements
---shy
Tips and Gratuities (Accrued Liability)
Customer Deposit Liability
Accounts Payable
Income Statement Accounts
Revenne - Table Games
To determine the consistency and fair presentation of the accrued tips and gratuities liability in the monthly fmancial statements
-lt ---- shy
To determine the consistency and fair presentation of the customer deposit liabilities in the monthly fiscal statements To determine the consistency and fair presentation ofaccounts payable balance in the monthly fmancial statements
--shy
To determine the consistency and fair presentation of table games revenue as reported to MGC daily and in the monthly fmandal statements
Revenue - Electronic Games To determine the consistency and fair presentation of electronic games revenue as reported to MGC daily and in the monthly financial statements
Missouri Gaming Commission 1996 Annual Report - Page 23
------------
---------
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Revenue - Admissions To detennine the consistency and fair presentation ofadmissions revenue as reported to MGC daily and in the monthly fmancial statements
Promotional Expense To determine that comps are properly recorded as expenses and not deducted from revenue in accordance with GAAP
Pre-Opening Costs To determine whether certain pre-opening and licensing costs are properly expensed or amortized over future periods in accordance with GAAP
Workpaper Preparation and Audit Reports To establish standardized procedures for MGC audit workpapers and audit reports
AissOllri Gamillg Commission 1996 Anllual Report - Page 24
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AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
c
Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
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I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
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~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
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$lot Machines 349
Audit Section - This section is responsible for the timely audit of all Bingo Product Manufacturers and Suppliers and assisting the Enforcement Section with oil-site inspections of bingo operators The audit staff has developed a comprehensive Manufacturer and Supplier audit procedure manual and has developed procedures for the inspection ofbingo operators The procedures for the inspection of bingo operators are used by both the Enforcement and Audit Staffs The audit section has audited all of the licensed Manufacturers and Suppliers during fiscal year 1996 These audits resulted in over $32000000 in unreported taxes and penalties The auditors also assisted enforcement with inspections and investigations of unlicensed suppliers and operators The section conducts on-site inspections of formerly licensed suppliers to determine ifthe products in inventory were being disposed of in accordance with the statutes The audit staff also assists the administrative staff in auditing the operators quarterly repom
Enforeement Section - This section is headed by Sgt Dwight Franklin a 17 year veteran ofthe Missouri Highway Patrol Sgt Franklin has six (6) officers assigned to the enforcement section Their duties include background investigations of all Manufacturers and Suppliers to include all the key personnel in those companies These investigations include criminal checks fmancial checks past employment history and all litigation involving the applicant In addition the enforcement section is responsible for investigating complaints on the licensed bingo organizations The complaints range from minor rule violations to thefts of large sums of money Complaints are received on a daily basis and are investigated on the basis of severity location and available manpower An additional duty of the Enforcement Section is to complete background investigations on all new potential employees of the Gaming Commission
CORPORATE SECURITIES AND FINANCE
The Commission has established a Section of Corporate Securities and Finance to address the challenge ofregulating the complex fmancial corporate structuring and contractual transactions involving publicly traded and privately held gaming companies This section is comprised of staff trained in legal accounting and business matters to perform examinations of these transactions
The suitability issues examined by the Corporate Securities and Finance Section include complex fmancial and legal suitability issues such as fmancial soundness corporate control legal compliance and procedural licensing issues
The sections examinations are coordinated closely with the Enforcement Division for background investigations and disciplinary matters
Typical transactions that are examined by the section include mergers and acquisitions public debt and equity issuances and private financings such as bank loans and credit facilities The goal of this new section is to provide the Commission with more thorough and sophisticated investigations and analysis of the suitability ofgaming companies and with a uniform system for providing this analysis on corporate securities and fmance issues Through this section the Commission hopes to identifY suitability problems ofapplicants and licensees earlier and more efficiently and to identifY plan for and possibly even avoid potential business closures of licensees due to fmandal matters
The Corporate Securities and Finance Section is headed by the Commissions General Counsel Greg Orner who reports directly to the Executive Director on corporate securities and finance matters The section also includes a Chief Financial Analyst position to be filled soon which will oversee the work ofthe fmancial staff examining the corporate secwities and fmance transactions
The Conunissions Financial Manager Pam Brown haS handled the fmandal analysis of the reported transactions up to now and will continue to perfonn many of the more complex transaction examinations and oversee the work of an accountant Pam Wheelis and a fmancial analyst (planned to be added next year) who are also assigned to the section
ENFORCEMENT
Enforcement for the Missouri Gaming Commission is provided by officers of the Missouri State Highway Patrol and agents of the Internal Revenue Service by way of Memorandums ofUnderstanding which set forth the responsibilities ofeach entity
The enforcement section is headed by Mel Fisher former Superintendent of the Highway Patrol The Gaming Division ofthe Highway Patrol is headed by Captain Dwight Hartung There are seventy-seven officers assigned to the Gaming Division and an additional six officers assigned to the Bingo Enforcement Unit
Some of the advantages ofusing Highway Patrol Officers as gaming agents include
JtfisSOUli Gaming Commission 1996 Annual Report - Page 12
the staff assigned are trained specialists in law enforcement and investigations thus saving the Commission the time effort and expense of recruitment and training
because the agents are licensed law enforcement officers they command immediate respect when interacting with licensees and customers aboard a riverboat as well as when they are in a foreign jurisdiction conducting an investigation
~ the Commission feels that it is important to rotate enforcement staff aboard the various boats this process is much easier with seasoned law enforcement officers who are used to being rotated between assignments as well as in and out of the gaming division
gt provides the ability to access sensitive law enforcement information from other jurisdictions
gt their experience in conducting investigations and handling emergency situations has proven invaluable
The Commissions background investigation units consist of three Highway Patrol Officers and one IRS agent The background investigations conducted by the Missouri Gaming Commission are thorough and take approximately four months to complete if no unusual complications or delays emerge The Commission not only investigates the finances and activities of the company and all its key people but traces the source ofall their funds to ensure that no criminal elements are funding the operation from behind the scene An outline that provides a sketch of a typical background investigation is contained on page 20
LEGAL amp LEGISLATIVE AFFAIRS
The legal amp legislative affairs section is responsible for all legal matters presented to the commission prior to litigation Any litigation involving the commission is handled by the Attorney Generals office In addition this section which is headed by Deputy Director Kevin Mullally develops and drafts legislation endorsed by the commission as well as all rules and regulations Moreover the legal section manages an administrative appeals docket where Mullally serves as Hearing Officer
Greg Orner serves as the commissions general coWlSel and works closely with the enforcement staff reviewing incident reports investigative issues and possible disciplinary actions In addition Mr Omer heads the Corporate Securities section
Some of tbe otber responsibilities of the legal section include
~ Drafting all resolutions for all commission actions and
gt preparing disciplinary complaints and denial orders for proposed action against licensees and
gt conducting quasi-legislative hearings on issues such as continuous docking and boat design and
gt providing legal research services and
gt organizing and maintaining records ofall official commission actions and commission policies and
gt handling inquiries from legislators constituents and other state regulatory agencies
The commissions legal staff is supported by paralegal Heather Grefrath and legal secretary Susan Sundermeyer This support staff is critical to daily operations ofthe legal section and is particularly valuable in the sections role in preparing and managing the rules and regulations all documents necessary for commission meetings and all documents declaring commission policy
In 1997 the legal section will be augmented with the addition ofstaff attorney Robert Little
PENDING LITIGATION
The Missouri Gaming commission denied one occupational license in 1994 thirteen occupational licenses in 1995 and thirty-five occupational licenses in 1996 Each aplicant is presumed WlSuitable and has the burden of proof to prove his or her suitability to the Conunssion An individual may request a hearing to attempt to prove suitability to the Commission by serving
Missouri Gaming Commission 1996Annual Reporl- Page 13
such a request on the commissions Executive Director The following is a list of pending litigation
Petitioner Venue
Bingo Systems amp Supply AHC Cape Girardeau Elks Lodge 639 AHC Cape Girardeau VFW Post 3838 AHC Edwin Pete Rhodes AHC Ideal Bingo Supplies Inc AHC Mary Cracchiolo AHC Maureen L Scott AHC Meramec-Amold Eagles Auxiliary AHC Myron B Carter Sr AHC Pan-Education Institute AHC Raymond J Drury AHC Raytown Women of Today AHC Sandra Termini AHC Stanley L Turner AHC Missouri Gaming Co ~Disc Action MGC Harrahs -Disciplinary Action MGC Boyd Kansas City Inc -Disc Action MGC Jeffery Koester -Denied License MGC Gary Franklin -Denied License MGC Mark Zwolle -Disciplinary Action MGC Anthony Civella -Exclusion MGC Peter Simone -Exclusion MGC Yolanda Nettles MGC Tracy Anderson MGC Carrie Gentry MGC Jimmie B Carsey MGC Cape Girardeau Elks amp VFW Circuit Court ofCape Girardeau County MGC v Veterans Commission
st Louis Public Schools Missouri Supreme Court W Todd Akin v MGC Missouri Supreme Court William D Cmmnisano Jr Missouri Court ofAppeals-Western District Pen-Yan Investment Inc Missouri Court ofAppeals-Western District
SUMMARY OF PENDING LITIGATION
There are fourteen bingo cases pending in the Administrative Hearing Commission
There are three disciplinary cases at the Commission level against gaming licensees pending the outcome ofPen-Yon Investment Inc v Boyd Kansas City Inc and MGC
Pen-Yon Investment Inc v Boyd Kansas City Inc MGC is pending in the Missouri Court ofAppeals Western District regarding disciplinary action taken against Boyd for associating in business affairs with a person who has a felony police record The Commission imposed a fine against Boyd and prohibited Boyd from collecting or distributing any funds from the machines under its service agreement with Pen-Yan
MGC v Missouri Veterans Commission St Louis Public Schools is pending in the Missouri Supreme Court regarding funds received from fmes imposed by the Commission
In W Todd Akin et 01 v MGC the Circuit Court ofCole County ruled in favor of the commission on summary judgment The suit challenges the Commissions authority to grant or deny Harrahs Maryland Heights Corp and Players Maryland Heights LP a license for a continuously docked excursion gambling boat within a man-made basin filled by water from the Mississippi River The petitioners have appealed and the matter is now before the Missouri Supreme Court
Cape Girardeau Elks Lodge et aI v MGC is pending in the Circuit Court of Cape Girardeau County regarding the Commissions decision to suspend the Cape Girardeau Elks Lodge bingo license
In the Matler oWilliam D Cammisano Jr there is an appeal pending in the Missouri Court ofAppeals Western District regarding the Commissions decision to place Mr Cammisano on its List of Excluded Persons
MISSOURI GAMING COMMISSIONS EXCLUSION LIST
The Missouri Gaming Commissionplaced two individuals in 1994 two individuals in 1995 and two individuals in 1996 on the commissions Exclusion List Placement of these individuals on the Exclusion List has been based on prior convictions
As a result of placement on the Exclusion List each individual shall not be permitted eoby into any portion of a riverboat gaming operation within the state ofMissouri and shall be ejected ifdiscovered on such premises Furthermore Excluded Persons shall be prohibited from contact of any kind with Missouri riverboat gaming operations Persons placed on the Listmay file a written petition with the Commission to request a hearing to have their name
JlrJissOIlri Gaming Commission 1996 Annual Report - Page 14
removed from the Exclusion List Currentlyone individual has appealed to the Western District of Missouri and two otbers are pending hearings by the Missouri Gaming Commission
MISSOURI GAMING COMMISSIONS DISCIPLINARY ACTIONS AGAINSTOCCUPATIONAL LICENSEES
The Missouri Gaming Commission has taken disciplinary action against twenty-eight occupational licensees as of September 30 1996 Preliminary
Orders for Disciplinary Action set forth statements of fact that support the proposed disciplinary action and the regulatory and statutory sections involved Individuals may request a hearing by serving such a request on the Commissions Executive Director Currently four individuals have sought hearings before the Commission one ofwhich is stm pending
Occupational License Denials 1994-1996
40
l 30
lt0 c Q)
0 lt5 20 i-Q) 0 E ~ 10
o Year Licenses 1994 1995 1996 IiiI Licenses Denials 1 13 35
Voluntary Exclusions On December 30 1996 after six months of research and consultation the
commission established a unique program to combat problem gambling The List of Disassociated Persons is the result of many months ofconsultation with treatment professionals that help problem gamblers The program allows problem gamblers to exclude themselves from Missouri riverboat casinos under the threat ofarrest for trespassing
In exchange for agreeing not to patronize Missouri riverboat casinos the problem gambler is removed from all casino mailing lists and direct marketing promotions In addition the operators are required to deny persons on the List check cashing privileges and must take away their VIP or players club card
Treatment professionals have advised the commission that the only way for a problem gambler to get help is to admit that heshe has a problem and to accept personal responsibility for that problem by seeking treatment
The Disassociated Persons program is a valuable tool in addressing problem gambling because it requires the individual to admit to having a gambling problem to agree to seek treatment and stay away from gambling casinos Furthermore it includes severe consequences if the problem gambler succumbs to the temptation to gamble Moreover it offers some protection to the problem gambler from the marketing promotions that encourage people to visit the casino properties
The program operates in the following manner
~ The problem gambler must obtain an application for placement on the List ofDisassociated Persons from the commission
~ the application contains various information about the individual an admission that the person is a problem gambler and agrees to stay off Missouri riverboats and seek treatment an authorization to release this information to riverboat operators as well as a Waiver releasing the commission and the licensee from any liability associated with enforcing the rules of the program
~ the application must be personally presented to a commission agent at which time the information is verified and the rules of the program are explained
~ the application is a closed record and its contents may only be disclosed to necessary commission and riverboat personnel
~ the commission considers all applications in closed session
~ once a person is placed on the List heshe cannot petition for removal After consulting with treatment professionals the commission concluded that problem gambling requires lifetime treatment and therefore there is no procedure for removal from the List
Missouri is the frrst jurisdiction in the world to propose a program such as this We will continue to monitor and refme the program and look forward to reporting to you on its impact in next years annual report
ft-Iissouri Gaming CommissiOil 1996 Annual Report - Page 16
Brief Timeline of Riverboat Gaming in Missouri ~ May 13 1991 - General Assembly passes House Bill 149 which authorized
referendum to be submitted to the voters in the November 1992 election to determine whether the State Tourism Commission shall have the power to issue riverboat gambling licenses
gt November 31992 - Missouri voters pass referendum allowing riverboat gaming with a majority ofnearly 63
gt January 1993 - Governor Carnahan announces intentions to push legislation creating an independent Gaming Commission to oversee riverboat gambling
April 29 1993 -- SBs 10 amp 11 creating the Missouri Gaming Commission are signed into law by Governor Carnahan and five Commissioners are appointed Robert Wolfson Chairman Robert Clayton William Quinn Dr Jenice Stewart and Avis Tucker
gt April 30 1993 -- Troy Harris et al v The Missouri Gaming Commission amended petition is filed The petition challenges the constitutionality of Senate Bills 10 amp II
gt- May 17 1993 -- The Missouri Gaming Commission holds its first meeting
~ September 1 1993 -- Proposed Rules and EmergencY Rules are adopted
gt September 20 1993 - 19 riverboat gaming license applications are filed with the commission
gt September 20 1993 - Clarence E Mel Fisher hired as Deputy Director for Enforcement
gt September 24 1993 - Commission contracts with the Internal Revenue Service to perform fmancial investigations for the commission Four IRS agents are assigned to the commission
~ September 28 1993 - Commissions enters into and inter-agency agreement with the Missouri State Highway Patrol to provide enforcement services for the commission
~ October I 1993 - Debbie Ferguson joins the commission as Deputy Director for Administration
November 3 1993 - Commission hires Tom Irwin as Executive Director and Kevin Mullally as Deputy Director for Legal amp Legislative Affairs
November 30 1993 -- Commission announces that it will begin background investigations on the following companies President Riverboat Casino-Missouri St Charles Riverfront Station Inc S1 Joseph Riverboat Partners The Missouri Gaming Company GDC (Supplier) IGT (Supplier) Casino Tokens (Supplier) Paul-Son Dice amp Card Company (Supplier)
gt December 22 1993 - Governor Carnahan signs Executive Order 93-50 designating the enforcement section ofthe Missouri Gaming Commission as a criminal justice agency
1994
gt January 25 1994 -- Missouri Supreme Court in Troy Harris v Missouri Gaming Commission strikes down games of chance including slot machines The court ruled that the Commission did have the authority to issue licenses to riverboat where games ofskill are played Specifically mentioned as games ofskill are poker and blackjack The Court remanded six games to lower court for determination as to whether they are games of skill or chance baccarat craps roulette wheel klondike table faro layout and video games ofchance
~ February 1 1994 -- Rules and Regnlations become effective
February 7 1994 -- Legislature passes resolution to place constitutional amendment on the ballot which would allow the legislature to approve games of chance (slot machines) on riverboats and floating facilities on the Missouri and Mississippi Rivers
gt- April 5 1994 -- Voters defeat constitutional amendment allowing games of chance (slot machines) by an unofficial count of 1263 votes
~ April 29 1994 - Finding of Preliminary Suitability issued to President Riverboat Casino S1 Charles Riverfront Station St Joseph Riverboat Partners and The Missouri Gaming Company
Missouri Gaming Commission 1996 AnnualReport - Page 17
Brief Timeline of Riverboat Gaming in Missouri ~ May 20 1994 -- Governor signs into law SB 740 which defmes games of
chance and enacts more stringent ethics provisions The bill also allows the commission to license a barge in an artificial basin as an excursion gambling boat if it can be demonstrated that safely concerns prevent an operator from cruising from that location
~ May 27 1994 - Commission authorizes as games of skin the following Blackjack Caribbean Stud Poker Poker Double Down Stud Poker Pia Gow Poker Poker Texas Hold Em the video representations ofthese games and Craps
gt May 27 1994 -- Commission authorizes President Riverboat Casino-Missouri to operate the Admiral as a continuously docked excursion gambling boat because cruising would cause danger to the boats passengers
gt May 27 1994 -- Gaming Commission issues first two excursion gambling boat licenses to President Riverboat Casino in st Louis and St Charles Riverfront Station in st Charles
gt May 27 1994 -- Initiative petition tbat would allow voters to approve games ofchance is submitted to the Secretary of State for approval of the form ofthe petition
~ June 6 1994 -- Secretary ofState notifies referendum petitioners that the Attorney General has approved the form of their petition The Secretary of State prepared the following petition title that was approved by the Attorney General
Shall the General Assembly be authorized to permit only upon the Mississippi River and the Missouri River lotteries gift enterprises and games ofchance to be conducted on excursion gambling boats and floating facilities
gt June 9 1994 -- Commission prioritizes Aztar Missouri Corporation Boyd Kansas City Inc and Harrahs North Kansas City as companies to be investigated for licensure pursuant to 11 CSR 45-4060
gt June 22 1994 -- Gaming Commission issues licenses to St Joseph Riverboat Partners in St Joseph and The Missouri Gaming Company in Riverside
~ September 20 1994 -- Commission issues a fmding ofpreliminary suitability to Harrahs North Kansas City Corporation
gt September 20 1994 -- Commission authorizes Harrahs North Kansas City Corporation and st Charles Riverfront Stationl to operate excursion gamblillg boats as continuously docked vessels In both cases the commission found that operating a cruising vessel from the proposed site would cause danger to the boats passengers and the project will generate permanent job creation and land-based development
gt September 22 1994 -- Harrahs North Kansas City Corporation is issued an excursion gambling boat license
gt September 28 1994 - Public hearing regarding Capitol Queen and Casino Jncs application for an excursion gambling boat license results in the commission denying CQCs license and prohibiting them from reapplying for two years
gt October 7 1994 - Commission places William D Cammisano Jr and John Termini on its list of excluded persons
gt November 8 1994 -- Voters approve games ofchance
~ December 9 1994 - Games ofchance are allowed on riverboats
gt December 27 1994 - St Charles Riverfront Station is issued a license to operate the St Charles II as an excursion gambling boat This marks the fIrSt time the commission has licensed a second excursion gambling boat for a single development
The approval was for St Charles Riverfront Stations second boat The flTSt boat continued to cruise until April 16 1996
Missouri Gaming Commission 1996 Annual Report - Page 18
Brief Timeline of Riverboat Gaming in Missouri 1995
)gt- February 22 1995 -- Commission announces it will begin background investigation on Hilton Kansas City Corporation for an excursion gambling boat license
~ March 30 1995 - State Auditor releases final audit report of the Missouri Gaming Commission No major deficiencies are noted
~ April 20 1995 - Commission repays $3 million start-up loan to state general revenue fund
)gt- April 25 1995 - Commission approves continuous docking petitions for Boyd Kansas City Inc and Hilton Kansas City Corporation
~ April 25 1995 -- The commission issues a finding ofpreliminary suitability to Aztar Missouri Gaming Corporation
~ April 26 1995 -- The commission issues an excursion gambling boat license to Aztar Missouri Gaming Corporation in Caruthersville Missouri
)gt- May 24 1995 - The commission announces it will begin background investigations on the following companies Harrahs Maryland Heights Corporation Kansas City Station Inc Players Maryland Heights Inc
gt August 28 1995 - Pursuant to House Bill 574 the duties of the Missouri Horse Racing Commission are transferred to the Gaming Commission
~ September 12 1995 - The commission issues a fmding of preliminary suitability to Boyd Kansas City Inc
September 13 1995 - The commission grants the petition ofHarrahs Maryland Heights Corporation and Players Maryland Heights Inc to operate continuously docked excursion gambling boats at their joint venture in Maryland Heights
)gt- September 13 1995 - The commission issues an excursion gambling boat license to Boyd Kansas City Inc
)gtshy November 16 1995 shy The commission fines the following companies for associating with either socially or in business affairs persons with felony police records or persons with a notorious or unsavory reputation Boyd Kansas City Inc Harrahs North Kansas City Corporation The Missouri Gaming Company
1996
)gtshy February 15 1996 - The commission grants continuous docking rights to Aztar Missouri Gaming Corporation for a second boat in Caruthersville Harrahs North Kansas City for a second boat and Kansas City Station Corporation for two boats in Kansas City
~ April 16 1996 - The commission grants continuous docking rights to Argosy in Riverside Missouri S1 Joseph Riverboat Partners and 81 Charles Riverfront Station
~ May 15 1996 - The commission issues a license to Harrahs North Kansas City for the Lucky Star This is the second boat at the Harrahs North Kansas City mcility Included in the project is a 200-room hotel expanded parking and meeting space
~ June 19 1996 -- The commission places William Canunisano Jr on Exclusion List
~ June 27 1996 - The commission places Peter Simone and Anthony T Civella on Exclusion List
August 28 1996 - The commission takes disciplinary action against Boyd Kansas City Inc for periodic failure to take and report turnstile readings
~ October II 1996 - The commission issues a finding of prel iminary suitability to Hilton Kansas City Corporation and Flamingo Hilton Riverboat Casino LoP
October 18 1996 - TIle commission issues a Class B riverboat gambling license 10 HUlon KlIlIStIS City Corporation and a CltlSs A riverboat gambling license 10 Flamingo Hillon Riverboat CtlSino LP
Missouri Gaming Commission 1996Annual Report - Page 19
Outline of a Background Investigation
Review Application fin Completeneiis
~ Establish number ofkey people
~ Check disclosure forms for completeness
gt Check tax release forms
City Selection Process
~ Contact city to determine how the gaming operator was selected
gt Interview Mayor and City Council members
~ Ifa steering committee was used interview members of that committee
Determine ifany city officials own stock in the selected gaming company
~ Obtain minutes ofcouncil meetings that pertain to riverboat issues (a)selection (b) resolution and (c) ordinance
gt Contact city attorney who handled negotiations with gaming company and obtain correspondence between city and gaming company
~ Contact City Economic Development Director (if applicable)
Docksite
gt- Land selected for gaming operation
J Who was it purchased from (how long have they owned the property) J Price (copy ofcontract)J Copy of plat map and legal description J Determine ifany ofcity officials or selection committee members have
ownership interest in docksite
gt Corps ofEngineers Permit
J Status
J Any concerns by Corps J Wetlands involved
~ Contact DNR for any known concerns in area
gt Check with city for any known dwnpsites with possible hazardous material
gt Developmental agreement between city and gaming operator (obtain copy from city)
gt Detennine if development is feasible
J Is support facility land based or floating J Projected nwnber ofjobs economic aid to area J Traffic flow to area - what improvements are needed - who will pay
for improvements
Riverboat
gt Locate boat and obtain all infonnation about boat (cruise schedule liability carrier)
gt Establish design ofriverboat
gt Determine emergency medical plan for boat
gt Determine ifCoast Guard and other safety requirements have been met
Gaming Operator (Public Corporation Partnership Private Company)
gt Establish contact person with operator
J Determine attorney of record for gaming company J Any missing items from application advise contact person
gt Establish home office (Financial Headquarters)
J Determine a good date and location where all key people can be contacted for a personal interview
J Where can financial record be located
Missouri Gaming Commission 1996Annual Report - Page 20
~
Outline of a Background Investigation
J Breakdown ofmanagement (corporate Board ofDirectors major stockholders)
J Establish flow chart of key people and companies owned by gaming operator
~ Investigation ofKey People will include but not be limited to the following
J Check previous employment work records J Check state local and federal intelligence files J Check for other gaming licenses ifapplicable (check with appropriate
regulators)J Check state federal and local courts for any civil litigation J Check for any arrest record J Check personal and business credit J Check state and local tax status IRS will handle federal taxes
gt Other locations ofgaming operations (currently operating and pending locations)
J Contact gaming regulators for respective locations J Travel to sites to view operations
Establish a file for all key people investigated with summaries establish a file for financial records with summary offinancial viability ofcompany and ability to complete obligations to the city and State ofMissouri Establish a file for other locations of licensure along with summary
Associated Investigations
gt All allegations of Any nature must be investigated and a file established with a written summary
~ Associated investigations must be done in a complete and thorough manner and all reports written accurately
gt Upon completion ofall investigations complete reports and summaries a separate press releasable summary must be written This summary must be approved by Gaming Commission legal staff
Missouri Gaming Commission 1996 Annual Report - Page 21
------------
--------
-----
------
---
---------
----------
Missouri Gaming Commission Compliance Audit Objectives for Licensees
ObjectiveAudit Area ~~~~~~~~~
To ensure accuracy of ticket and turnstile counts reported to MGC including compsIVlPs stayovers and promotions
Table Games
Ticketffurnstile
To ensure accuracy of AGR for table games reported to MGC
Electronic Games To ensure accuracy of AGR for electronic games reported to MGC
Cage Accowltability To ensure accuracy ofcage accountability forms and compliance with internal controls and tax reporting regulations
Observations Cage Main Bank Pit Area Slot Area Turnstile Ticketing
PurchaselRedemptions
$500 Loss Limit
Stayover Procedures
To determine that cashiers are complying with internal controls for chips tokens gaming scrip and cash
To determine compliance with MO statutes and internal controls
To determine compliance with MGC regulations and internal controls
To ensure that manual jackpot payouts are properly handled and the required tax fomIS are completed Manual Jackpot Payouts
To ensure that hopper fills are properly handled and comply with internal controls Hopper Fills
To ensure that table fills are properly handled and comply with internal cootrols Table Fills
To ensure that table credits are properly handled and comply with internal controls Table Credits
To ensure that tracking procedures comply with internal controls and the currency transactions are properly completed Patron TrackingCurrency Transaction Reporting
Imprest Bank Balancing To ensure that proper balancing and accountability is performed during a shift change
Coin Vault To ensure proper maintenance of coin chip and token inventory
Satellite CageSSlot Booths To ensure compliance with internal controls and consistency with main cage procedures
TipsGratuities To ensure compliance with MGC regulations and internal controls
Cage AccessSecurity To ensure compliance with internal controls
Turnstile To ensure accuracy of turnstile count for admissions tax calculation
Ticketing To ensure comp Hance with internal controls and proper handling of stubs voids and issuance
MiscellaneousOther
Surveillance Tapes To review activity for hard soft and tip counts and drops to verify compliance with internal controls
Workpaper Preparation and To establish standardized procedures for MGC audit workpapers and audit reports Audit Reports
-
Missouri Gaming Commission 1996 AnnualReport - Page 22
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Audit Area
Monthly Financial Statement Review
Engagement Letters
Objective --shy
To perform a preliminary review ofmonthly financial statement information for proper completion of fmandal statement templates verification ofadjusted gross receipts to MGC reports and to detect any unusual items which justifY further review when conducting on-site audit
To give advance notification to each boat of the date and scope ofaudit being performed
Financial Statement Verification To determine consistency ofmonthly financial statement information submitted to MGC with boats general ledger system
Balance Sheet Accounts
CashCash Reserve Balance
Cash Receipts
Cash Disbursements
shy -- shy
To determine the existence consistency and fair presentation of the cash balance on the monthly fmancial statements
To determine the consistency and filir presentation of the cash balance on the monthly financial statements and the source of large cash receipts other than gaming revenue
___I
To determine the consistency and fair presentation of the cash balance on the monthly fmancial statements and to trace the outflow of large cash disbursements
i
I
--
AccountslN Notes Receivable
Accrued Admission and Gaming Tax Liability
Chip and Token Liability
Progressive Jackpot Liability
To determine the consistency and fair presentation of the accounts receivable andor notes receivable balance in the monthly fmancial statements
To determine the consistency and fair presentation of the accrued admissiongaming tax liability balance in the monthly financial statements
To determine the consistency and fair presentation of the chip and token liability balance in the monthly financial statements
To determine the consistency and fair presentation of the progressive jackpot liability balance in the monthly fmancial statements
---shy
Tips and Gratuities (Accrued Liability)
Customer Deposit Liability
Accounts Payable
Income Statement Accounts
Revenne - Table Games
To determine the consistency and fair presentation of the accrued tips and gratuities liability in the monthly fmancial statements
-lt ---- shy
To determine the consistency and fair presentation of the customer deposit liabilities in the monthly fiscal statements To determine the consistency and fair presentation ofaccounts payable balance in the monthly fmancial statements
--shy
To determine the consistency and fair presentation of table games revenue as reported to MGC daily and in the monthly fmandal statements
Revenue - Electronic Games To determine the consistency and fair presentation of electronic games revenue as reported to MGC daily and in the monthly financial statements
Missouri Gaming Commission 1996 Annual Report - Page 23
------------
---------
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Revenue - Admissions To detennine the consistency and fair presentation ofadmissions revenue as reported to MGC daily and in the monthly fmancial statements
Promotional Expense To determine that comps are properly recorded as expenses and not deducted from revenue in accordance with GAAP
Pre-Opening Costs To determine whether certain pre-opening and licensing costs are properly expensed or amortized over future periods in accordance with GAAP
Workpaper Preparation and Audit Reports To establish standardized procedures for MGC audit workpapers and audit reports
AissOllri Gamillg Commission 1996 Anllual Report - Page 24
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AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
c
Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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I IAztar Missouri Corporation
r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
j i
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
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Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
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$lot Machines 349
the staff assigned are trained specialists in law enforcement and investigations thus saving the Commission the time effort and expense of recruitment and training
because the agents are licensed law enforcement officers they command immediate respect when interacting with licensees and customers aboard a riverboat as well as when they are in a foreign jurisdiction conducting an investigation
~ the Commission feels that it is important to rotate enforcement staff aboard the various boats this process is much easier with seasoned law enforcement officers who are used to being rotated between assignments as well as in and out of the gaming division
gt provides the ability to access sensitive law enforcement information from other jurisdictions
gt their experience in conducting investigations and handling emergency situations has proven invaluable
The Commissions background investigation units consist of three Highway Patrol Officers and one IRS agent The background investigations conducted by the Missouri Gaming Commission are thorough and take approximately four months to complete if no unusual complications or delays emerge The Commission not only investigates the finances and activities of the company and all its key people but traces the source ofall their funds to ensure that no criminal elements are funding the operation from behind the scene An outline that provides a sketch of a typical background investigation is contained on page 20
LEGAL amp LEGISLATIVE AFFAIRS
The legal amp legislative affairs section is responsible for all legal matters presented to the commission prior to litigation Any litigation involving the commission is handled by the Attorney Generals office In addition this section which is headed by Deputy Director Kevin Mullally develops and drafts legislation endorsed by the commission as well as all rules and regulations Moreover the legal section manages an administrative appeals docket where Mullally serves as Hearing Officer
Greg Orner serves as the commissions general coWlSel and works closely with the enforcement staff reviewing incident reports investigative issues and possible disciplinary actions In addition Mr Omer heads the Corporate Securities section
Some of tbe otber responsibilities of the legal section include
~ Drafting all resolutions for all commission actions and
gt preparing disciplinary complaints and denial orders for proposed action against licensees and
gt conducting quasi-legislative hearings on issues such as continuous docking and boat design and
gt providing legal research services and
gt organizing and maintaining records ofall official commission actions and commission policies and
gt handling inquiries from legislators constituents and other state regulatory agencies
The commissions legal staff is supported by paralegal Heather Grefrath and legal secretary Susan Sundermeyer This support staff is critical to daily operations ofthe legal section and is particularly valuable in the sections role in preparing and managing the rules and regulations all documents necessary for commission meetings and all documents declaring commission policy
In 1997 the legal section will be augmented with the addition ofstaff attorney Robert Little
PENDING LITIGATION
The Missouri Gaming commission denied one occupational license in 1994 thirteen occupational licenses in 1995 and thirty-five occupational licenses in 1996 Each aplicant is presumed WlSuitable and has the burden of proof to prove his or her suitability to the Conunssion An individual may request a hearing to attempt to prove suitability to the Commission by serving
Missouri Gaming Commission 1996Annual Reporl- Page 13
such a request on the commissions Executive Director The following is a list of pending litigation
Petitioner Venue
Bingo Systems amp Supply AHC Cape Girardeau Elks Lodge 639 AHC Cape Girardeau VFW Post 3838 AHC Edwin Pete Rhodes AHC Ideal Bingo Supplies Inc AHC Mary Cracchiolo AHC Maureen L Scott AHC Meramec-Amold Eagles Auxiliary AHC Myron B Carter Sr AHC Pan-Education Institute AHC Raymond J Drury AHC Raytown Women of Today AHC Sandra Termini AHC Stanley L Turner AHC Missouri Gaming Co ~Disc Action MGC Harrahs -Disciplinary Action MGC Boyd Kansas City Inc -Disc Action MGC Jeffery Koester -Denied License MGC Gary Franklin -Denied License MGC Mark Zwolle -Disciplinary Action MGC Anthony Civella -Exclusion MGC Peter Simone -Exclusion MGC Yolanda Nettles MGC Tracy Anderson MGC Carrie Gentry MGC Jimmie B Carsey MGC Cape Girardeau Elks amp VFW Circuit Court ofCape Girardeau County MGC v Veterans Commission
st Louis Public Schools Missouri Supreme Court W Todd Akin v MGC Missouri Supreme Court William D Cmmnisano Jr Missouri Court ofAppeals-Western District Pen-Yan Investment Inc Missouri Court ofAppeals-Western District
SUMMARY OF PENDING LITIGATION
There are fourteen bingo cases pending in the Administrative Hearing Commission
There are three disciplinary cases at the Commission level against gaming licensees pending the outcome ofPen-Yon Investment Inc v Boyd Kansas City Inc and MGC
Pen-Yon Investment Inc v Boyd Kansas City Inc MGC is pending in the Missouri Court ofAppeals Western District regarding disciplinary action taken against Boyd for associating in business affairs with a person who has a felony police record The Commission imposed a fine against Boyd and prohibited Boyd from collecting or distributing any funds from the machines under its service agreement with Pen-Yan
MGC v Missouri Veterans Commission St Louis Public Schools is pending in the Missouri Supreme Court regarding funds received from fmes imposed by the Commission
In W Todd Akin et 01 v MGC the Circuit Court ofCole County ruled in favor of the commission on summary judgment The suit challenges the Commissions authority to grant or deny Harrahs Maryland Heights Corp and Players Maryland Heights LP a license for a continuously docked excursion gambling boat within a man-made basin filled by water from the Mississippi River The petitioners have appealed and the matter is now before the Missouri Supreme Court
Cape Girardeau Elks Lodge et aI v MGC is pending in the Circuit Court of Cape Girardeau County regarding the Commissions decision to suspend the Cape Girardeau Elks Lodge bingo license
In the Matler oWilliam D Cammisano Jr there is an appeal pending in the Missouri Court ofAppeals Western District regarding the Commissions decision to place Mr Cammisano on its List of Excluded Persons
MISSOURI GAMING COMMISSIONS EXCLUSION LIST
The Missouri Gaming Commissionplaced two individuals in 1994 two individuals in 1995 and two individuals in 1996 on the commissions Exclusion List Placement of these individuals on the Exclusion List has been based on prior convictions
As a result of placement on the Exclusion List each individual shall not be permitted eoby into any portion of a riverboat gaming operation within the state ofMissouri and shall be ejected ifdiscovered on such premises Furthermore Excluded Persons shall be prohibited from contact of any kind with Missouri riverboat gaming operations Persons placed on the Listmay file a written petition with the Commission to request a hearing to have their name
JlrJissOIlri Gaming Commission 1996 Annual Report - Page 14
removed from the Exclusion List Currentlyone individual has appealed to the Western District of Missouri and two otbers are pending hearings by the Missouri Gaming Commission
MISSOURI GAMING COMMISSIONS DISCIPLINARY ACTIONS AGAINSTOCCUPATIONAL LICENSEES
The Missouri Gaming Commission has taken disciplinary action against twenty-eight occupational licensees as of September 30 1996 Preliminary
Orders for Disciplinary Action set forth statements of fact that support the proposed disciplinary action and the regulatory and statutory sections involved Individuals may request a hearing by serving such a request on the Commissions Executive Director Currently four individuals have sought hearings before the Commission one ofwhich is stm pending
Occupational License Denials 1994-1996
40
l 30
lt0 c Q)
0 lt5 20 i-Q) 0 E ~ 10
o Year Licenses 1994 1995 1996 IiiI Licenses Denials 1 13 35
Voluntary Exclusions On December 30 1996 after six months of research and consultation the
commission established a unique program to combat problem gambling The List of Disassociated Persons is the result of many months ofconsultation with treatment professionals that help problem gamblers The program allows problem gamblers to exclude themselves from Missouri riverboat casinos under the threat ofarrest for trespassing
In exchange for agreeing not to patronize Missouri riverboat casinos the problem gambler is removed from all casino mailing lists and direct marketing promotions In addition the operators are required to deny persons on the List check cashing privileges and must take away their VIP or players club card
Treatment professionals have advised the commission that the only way for a problem gambler to get help is to admit that heshe has a problem and to accept personal responsibility for that problem by seeking treatment
The Disassociated Persons program is a valuable tool in addressing problem gambling because it requires the individual to admit to having a gambling problem to agree to seek treatment and stay away from gambling casinos Furthermore it includes severe consequences if the problem gambler succumbs to the temptation to gamble Moreover it offers some protection to the problem gambler from the marketing promotions that encourage people to visit the casino properties
The program operates in the following manner
~ The problem gambler must obtain an application for placement on the List ofDisassociated Persons from the commission
~ the application contains various information about the individual an admission that the person is a problem gambler and agrees to stay off Missouri riverboats and seek treatment an authorization to release this information to riverboat operators as well as a Waiver releasing the commission and the licensee from any liability associated with enforcing the rules of the program
~ the application must be personally presented to a commission agent at which time the information is verified and the rules of the program are explained
~ the application is a closed record and its contents may only be disclosed to necessary commission and riverboat personnel
~ the commission considers all applications in closed session
~ once a person is placed on the List heshe cannot petition for removal After consulting with treatment professionals the commission concluded that problem gambling requires lifetime treatment and therefore there is no procedure for removal from the List
Missouri is the frrst jurisdiction in the world to propose a program such as this We will continue to monitor and refme the program and look forward to reporting to you on its impact in next years annual report
ft-Iissouri Gaming CommissiOil 1996 Annual Report - Page 16
Brief Timeline of Riverboat Gaming in Missouri ~ May 13 1991 - General Assembly passes House Bill 149 which authorized
referendum to be submitted to the voters in the November 1992 election to determine whether the State Tourism Commission shall have the power to issue riverboat gambling licenses
gt November 31992 - Missouri voters pass referendum allowing riverboat gaming with a majority ofnearly 63
gt January 1993 - Governor Carnahan announces intentions to push legislation creating an independent Gaming Commission to oversee riverboat gambling
April 29 1993 -- SBs 10 amp 11 creating the Missouri Gaming Commission are signed into law by Governor Carnahan and five Commissioners are appointed Robert Wolfson Chairman Robert Clayton William Quinn Dr Jenice Stewart and Avis Tucker
gt April 30 1993 -- Troy Harris et al v The Missouri Gaming Commission amended petition is filed The petition challenges the constitutionality of Senate Bills 10 amp II
gt- May 17 1993 -- The Missouri Gaming Commission holds its first meeting
~ September 1 1993 -- Proposed Rules and EmergencY Rules are adopted
gt September 20 1993 - 19 riverboat gaming license applications are filed with the commission
gt September 20 1993 - Clarence E Mel Fisher hired as Deputy Director for Enforcement
gt September 24 1993 - Commission contracts with the Internal Revenue Service to perform fmancial investigations for the commission Four IRS agents are assigned to the commission
~ September 28 1993 - Commissions enters into and inter-agency agreement with the Missouri State Highway Patrol to provide enforcement services for the commission
~ October I 1993 - Debbie Ferguson joins the commission as Deputy Director for Administration
November 3 1993 - Commission hires Tom Irwin as Executive Director and Kevin Mullally as Deputy Director for Legal amp Legislative Affairs
November 30 1993 -- Commission announces that it will begin background investigations on the following companies President Riverboat Casino-Missouri St Charles Riverfront Station Inc S1 Joseph Riverboat Partners The Missouri Gaming Company GDC (Supplier) IGT (Supplier) Casino Tokens (Supplier) Paul-Son Dice amp Card Company (Supplier)
gt December 22 1993 - Governor Carnahan signs Executive Order 93-50 designating the enforcement section ofthe Missouri Gaming Commission as a criminal justice agency
1994
gt January 25 1994 -- Missouri Supreme Court in Troy Harris v Missouri Gaming Commission strikes down games of chance including slot machines The court ruled that the Commission did have the authority to issue licenses to riverboat where games ofskill are played Specifically mentioned as games ofskill are poker and blackjack The Court remanded six games to lower court for determination as to whether they are games of skill or chance baccarat craps roulette wheel klondike table faro layout and video games ofchance
~ February 1 1994 -- Rules and Regnlations become effective
February 7 1994 -- Legislature passes resolution to place constitutional amendment on the ballot which would allow the legislature to approve games of chance (slot machines) on riverboats and floating facilities on the Missouri and Mississippi Rivers
gt- April 5 1994 -- Voters defeat constitutional amendment allowing games of chance (slot machines) by an unofficial count of 1263 votes
~ April 29 1994 - Finding of Preliminary Suitability issued to President Riverboat Casino S1 Charles Riverfront Station St Joseph Riverboat Partners and The Missouri Gaming Company
Missouri Gaming Commission 1996 AnnualReport - Page 17
Brief Timeline of Riverboat Gaming in Missouri ~ May 20 1994 -- Governor signs into law SB 740 which defmes games of
chance and enacts more stringent ethics provisions The bill also allows the commission to license a barge in an artificial basin as an excursion gambling boat if it can be demonstrated that safely concerns prevent an operator from cruising from that location
~ May 27 1994 - Commission authorizes as games of skin the following Blackjack Caribbean Stud Poker Poker Double Down Stud Poker Pia Gow Poker Poker Texas Hold Em the video representations ofthese games and Craps
gt May 27 1994 -- Commission authorizes President Riverboat Casino-Missouri to operate the Admiral as a continuously docked excursion gambling boat because cruising would cause danger to the boats passengers
gt May 27 1994 -- Gaming Commission issues first two excursion gambling boat licenses to President Riverboat Casino in st Louis and St Charles Riverfront Station in st Charles
gt May 27 1994 -- Initiative petition tbat would allow voters to approve games ofchance is submitted to the Secretary of State for approval of the form ofthe petition
~ June 6 1994 -- Secretary ofState notifies referendum petitioners that the Attorney General has approved the form of their petition The Secretary of State prepared the following petition title that was approved by the Attorney General
Shall the General Assembly be authorized to permit only upon the Mississippi River and the Missouri River lotteries gift enterprises and games ofchance to be conducted on excursion gambling boats and floating facilities
gt June 9 1994 -- Commission prioritizes Aztar Missouri Corporation Boyd Kansas City Inc and Harrahs North Kansas City as companies to be investigated for licensure pursuant to 11 CSR 45-4060
gt June 22 1994 -- Gaming Commission issues licenses to St Joseph Riverboat Partners in St Joseph and The Missouri Gaming Company in Riverside
~ September 20 1994 -- Commission issues a fmding ofpreliminary suitability to Harrahs North Kansas City Corporation
gt September 20 1994 -- Commission authorizes Harrahs North Kansas City Corporation and st Charles Riverfront Stationl to operate excursion gamblillg boats as continuously docked vessels In both cases the commission found that operating a cruising vessel from the proposed site would cause danger to the boats passengers and the project will generate permanent job creation and land-based development
gt September 22 1994 -- Harrahs North Kansas City Corporation is issued an excursion gambling boat license
gt September 28 1994 - Public hearing regarding Capitol Queen and Casino Jncs application for an excursion gambling boat license results in the commission denying CQCs license and prohibiting them from reapplying for two years
gt October 7 1994 - Commission places William D Cammisano Jr and John Termini on its list of excluded persons
gt November 8 1994 -- Voters approve games ofchance
~ December 9 1994 - Games ofchance are allowed on riverboats
gt December 27 1994 - St Charles Riverfront Station is issued a license to operate the St Charles II as an excursion gambling boat This marks the fIrSt time the commission has licensed a second excursion gambling boat for a single development
The approval was for St Charles Riverfront Stations second boat The flTSt boat continued to cruise until April 16 1996
Missouri Gaming Commission 1996 Annual Report - Page 18
Brief Timeline of Riverboat Gaming in Missouri 1995
)gt- February 22 1995 -- Commission announces it will begin background investigation on Hilton Kansas City Corporation for an excursion gambling boat license
~ March 30 1995 - State Auditor releases final audit report of the Missouri Gaming Commission No major deficiencies are noted
~ April 20 1995 - Commission repays $3 million start-up loan to state general revenue fund
)gt- April 25 1995 - Commission approves continuous docking petitions for Boyd Kansas City Inc and Hilton Kansas City Corporation
~ April 25 1995 -- The commission issues a finding ofpreliminary suitability to Aztar Missouri Gaming Corporation
~ April 26 1995 -- The commission issues an excursion gambling boat license to Aztar Missouri Gaming Corporation in Caruthersville Missouri
)gt- May 24 1995 - The commission announces it will begin background investigations on the following companies Harrahs Maryland Heights Corporation Kansas City Station Inc Players Maryland Heights Inc
gt August 28 1995 - Pursuant to House Bill 574 the duties of the Missouri Horse Racing Commission are transferred to the Gaming Commission
~ September 12 1995 - The commission issues a fmding of preliminary suitability to Boyd Kansas City Inc
September 13 1995 - The commission grants the petition ofHarrahs Maryland Heights Corporation and Players Maryland Heights Inc to operate continuously docked excursion gambling boats at their joint venture in Maryland Heights
)gt- September 13 1995 - The commission issues an excursion gambling boat license to Boyd Kansas City Inc
)gtshy November 16 1995 shy The commission fines the following companies for associating with either socially or in business affairs persons with felony police records or persons with a notorious or unsavory reputation Boyd Kansas City Inc Harrahs North Kansas City Corporation The Missouri Gaming Company
1996
)gtshy February 15 1996 - The commission grants continuous docking rights to Aztar Missouri Gaming Corporation for a second boat in Caruthersville Harrahs North Kansas City for a second boat and Kansas City Station Corporation for two boats in Kansas City
~ April 16 1996 - The commission grants continuous docking rights to Argosy in Riverside Missouri S1 Joseph Riverboat Partners and 81 Charles Riverfront Station
~ May 15 1996 - The commission issues a license to Harrahs North Kansas City for the Lucky Star This is the second boat at the Harrahs North Kansas City mcility Included in the project is a 200-room hotel expanded parking and meeting space
~ June 19 1996 -- The commission places William Canunisano Jr on Exclusion List
~ June 27 1996 - The commission places Peter Simone and Anthony T Civella on Exclusion List
August 28 1996 - The commission takes disciplinary action against Boyd Kansas City Inc for periodic failure to take and report turnstile readings
~ October II 1996 - The commission issues a finding of prel iminary suitability to Hilton Kansas City Corporation and Flamingo Hilton Riverboat Casino LoP
October 18 1996 - TIle commission issues a Class B riverboat gambling license 10 HUlon KlIlIStIS City Corporation and a CltlSs A riverboat gambling license 10 Flamingo Hillon Riverboat CtlSino LP
Missouri Gaming Commission 1996Annual Report - Page 19
Outline of a Background Investigation
Review Application fin Completeneiis
~ Establish number ofkey people
~ Check disclosure forms for completeness
gt Check tax release forms
City Selection Process
~ Contact city to determine how the gaming operator was selected
gt Interview Mayor and City Council members
~ Ifa steering committee was used interview members of that committee
Determine ifany city officials own stock in the selected gaming company
~ Obtain minutes ofcouncil meetings that pertain to riverboat issues (a)selection (b) resolution and (c) ordinance
gt Contact city attorney who handled negotiations with gaming company and obtain correspondence between city and gaming company
~ Contact City Economic Development Director (if applicable)
Docksite
gt- Land selected for gaming operation
J Who was it purchased from (how long have they owned the property) J Price (copy ofcontract)J Copy of plat map and legal description J Determine ifany ofcity officials or selection committee members have
ownership interest in docksite
gt Corps ofEngineers Permit
J Status
J Any concerns by Corps J Wetlands involved
~ Contact DNR for any known concerns in area
gt Check with city for any known dwnpsites with possible hazardous material
gt Developmental agreement between city and gaming operator (obtain copy from city)
gt Detennine if development is feasible
J Is support facility land based or floating J Projected nwnber ofjobs economic aid to area J Traffic flow to area - what improvements are needed - who will pay
for improvements
Riverboat
gt Locate boat and obtain all infonnation about boat (cruise schedule liability carrier)
gt Establish design ofriverboat
gt Determine emergency medical plan for boat
gt Determine ifCoast Guard and other safety requirements have been met
Gaming Operator (Public Corporation Partnership Private Company)
gt Establish contact person with operator
J Determine attorney of record for gaming company J Any missing items from application advise contact person
gt Establish home office (Financial Headquarters)
J Determine a good date and location where all key people can be contacted for a personal interview
J Where can financial record be located
Missouri Gaming Commission 1996Annual Report - Page 20
~
Outline of a Background Investigation
J Breakdown ofmanagement (corporate Board ofDirectors major stockholders)
J Establish flow chart of key people and companies owned by gaming operator
~ Investigation ofKey People will include but not be limited to the following
J Check previous employment work records J Check state local and federal intelligence files J Check for other gaming licenses ifapplicable (check with appropriate
regulators)J Check state federal and local courts for any civil litigation J Check for any arrest record J Check personal and business credit J Check state and local tax status IRS will handle federal taxes
gt Other locations ofgaming operations (currently operating and pending locations)
J Contact gaming regulators for respective locations J Travel to sites to view operations
Establish a file for all key people investigated with summaries establish a file for financial records with summary offinancial viability ofcompany and ability to complete obligations to the city and State ofMissouri Establish a file for other locations of licensure along with summary
Associated Investigations
gt All allegations of Any nature must be investigated and a file established with a written summary
~ Associated investigations must be done in a complete and thorough manner and all reports written accurately
gt Upon completion ofall investigations complete reports and summaries a separate press releasable summary must be written This summary must be approved by Gaming Commission legal staff
Missouri Gaming Commission 1996 Annual Report - Page 21
------------
--------
-----
------
---
---------
----------
Missouri Gaming Commission Compliance Audit Objectives for Licensees
ObjectiveAudit Area ~~~~~~~~~
To ensure accuracy of ticket and turnstile counts reported to MGC including compsIVlPs stayovers and promotions
Table Games
Ticketffurnstile
To ensure accuracy of AGR for table games reported to MGC
Electronic Games To ensure accuracy of AGR for electronic games reported to MGC
Cage Accowltability To ensure accuracy ofcage accountability forms and compliance with internal controls and tax reporting regulations
Observations Cage Main Bank Pit Area Slot Area Turnstile Ticketing
PurchaselRedemptions
$500 Loss Limit
Stayover Procedures
To determine that cashiers are complying with internal controls for chips tokens gaming scrip and cash
To determine compliance with MO statutes and internal controls
To determine compliance with MGC regulations and internal controls
To ensure that manual jackpot payouts are properly handled and the required tax fomIS are completed Manual Jackpot Payouts
To ensure that hopper fills are properly handled and comply with internal controls Hopper Fills
To ensure that table fills are properly handled and comply with internal cootrols Table Fills
To ensure that table credits are properly handled and comply with internal controls Table Credits
To ensure that tracking procedures comply with internal controls and the currency transactions are properly completed Patron TrackingCurrency Transaction Reporting
Imprest Bank Balancing To ensure that proper balancing and accountability is performed during a shift change
Coin Vault To ensure proper maintenance of coin chip and token inventory
Satellite CageSSlot Booths To ensure compliance with internal controls and consistency with main cage procedures
TipsGratuities To ensure compliance with MGC regulations and internal controls
Cage AccessSecurity To ensure compliance with internal controls
Turnstile To ensure accuracy of turnstile count for admissions tax calculation
Ticketing To ensure comp Hance with internal controls and proper handling of stubs voids and issuance
MiscellaneousOther
Surveillance Tapes To review activity for hard soft and tip counts and drops to verify compliance with internal controls
Workpaper Preparation and To establish standardized procedures for MGC audit workpapers and audit reports Audit Reports
-
Missouri Gaming Commission 1996 AnnualReport - Page 22
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Audit Area
Monthly Financial Statement Review
Engagement Letters
Objective --shy
To perform a preliminary review ofmonthly financial statement information for proper completion of fmandal statement templates verification ofadjusted gross receipts to MGC reports and to detect any unusual items which justifY further review when conducting on-site audit
To give advance notification to each boat of the date and scope ofaudit being performed
Financial Statement Verification To determine consistency ofmonthly financial statement information submitted to MGC with boats general ledger system
Balance Sheet Accounts
CashCash Reserve Balance
Cash Receipts
Cash Disbursements
shy -- shy
To determine the existence consistency and fair presentation of the cash balance on the monthly fmancial statements
To determine the consistency and filir presentation of the cash balance on the monthly financial statements and the source of large cash receipts other than gaming revenue
___I
To determine the consistency and fair presentation of the cash balance on the monthly fmancial statements and to trace the outflow of large cash disbursements
i
I
--
AccountslN Notes Receivable
Accrued Admission and Gaming Tax Liability
Chip and Token Liability
Progressive Jackpot Liability
To determine the consistency and fair presentation of the accounts receivable andor notes receivable balance in the monthly fmancial statements
To determine the consistency and fair presentation of the accrued admissiongaming tax liability balance in the monthly financial statements
To determine the consistency and fair presentation of the chip and token liability balance in the monthly financial statements
To determine the consistency and fair presentation of the progressive jackpot liability balance in the monthly fmancial statements
---shy
Tips and Gratuities (Accrued Liability)
Customer Deposit Liability
Accounts Payable
Income Statement Accounts
Revenne - Table Games
To determine the consistency and fair presentation of the accrued tips and gratuities liability in the monthly fmancial statements
-lt ---- shy
To determine the consistency and fair presentation of the customer deposit liabilities in the monthly fiscal statements To determine the consistency and fair presentation ofaccounts payable balance in the monthly fmancial statements
--shy
To determine the consistency and fair presentation of table games revenue as reported to MGC daily and in the monthly fmandal statements
Revenue - Electronic Games To determine the consistency and fair presentation of electronic games revenue as reported to MGC daily and in the monthly financial statements
Missouri Gaming Commission 1996 Annual Report - Page 23
------------
---------
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Revenue - Admissions To detennine the consistency and fair presentation ofadmissions revenue as reported to MGC daily and in the monthly fmancial statements
Promotional Expense To determine that comps are properly recorded as expenses and not deducted from revenue in accordance with GAAP
Pre-Opening Costs To determine whether certain pre-opening and licensing costs are properly expensed or amortized over future periods in accordance with GAAP
Workpaper Preparation and Audit Reports To establish standardized procedures for MGC audit workpapers and audit reports
AissOllri Gamillg Commission 1996 Anllual Report - Page 24
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AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
c
Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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I IAztar Missouri Corporation
r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
j i
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
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Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
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$lot Machines 349
such a request on the commissions Executive Director The following is a list of pending litigation
Petitioner Venue
Bingo Systems amp Supply AHC Cape Girardeau Elks Lodge 639 AHC Cape Girardeau VFW Post 3838 AHC Edwin Pete Rhodes AHC Ideal Bingo Supplies Inc AHC Mary Cracchiolo AHC Maureen L Scott AHC Meramec-Amold Eagles Auxiliary AHC Myron B Carter Sr AHC Pan-Education Institute AHC Raymond J Drury AHC Raytown Women of Today AHC Sandra Termini AHC Stanley L Turner AHC Missouri Gaming Co ~Disc Action MGC Harrahs -Disciplinary Action MGC Boyd Kansas City Inc -Disc Action MGC Jeffery Koester -Denied License MGC Gary Franklin -Denied License MGC Mark Zwolle -Disciplinary Action MGC Anthony Civella -Exclusion MGC Peter Simone -Exclusion MGC Yolanda Nettles MGC Tracy Anderson MGC Carrie Gentry MGC Jimmie B Carsey MGC Cape Girardeau Elks amp VFW Circuit Court ofCape Girardeau County MGC v Veterans Commission
st Louis Public Schools Missouri Supreme Court W Todd Akin v MGC Missouri Supreme Court William D Cmmnisano Jr Missouri Court ofAppeals-Western District Pen-Yan Investment Inc Missouri Court ofAppeals-Western District
SUMMARY OF PENDING LITIGATION
There are fourteen bingo cases pending in the Administrative Hearing Commission
There are three disciplinary cases at the Commission level against gaming licensees pending the outcome ofPen-Yon Investment Inc v Boyd Kansas City Inc and MGC
Pen-Yon Investment Inc v Boyd Kansas City Inc MGC is pending in the Missouri Court ofAppeals Western District regarding disciplinary action taken against Boyd for associating in business affairs with a person who has a felony police record The Commission imposed a fine against Boyd and prohibited Boyd from collecting or distributing any funds from the machines under its service agreement with Pen-Yan
MGC v Missouri Veterans Commission St Louis Public Schools is pending in the Missouri Supreme Court regarding funds received from fmes imposed by the Commission
In W Todd Akin et 01 v MGC the Circuit Court ofCole County ruled in favor of the commission on summary judgment The suit challenges the Commissions authority to grant or deny Harrahs Maryland Heights Corp and Players Maryland Heights LP a license for a continuously docked excursion gambling boat within a man-made basin filled by water from the Mississippi River The petitioners have appealed and the matter is now before the Missouri Supreme Court
Cape Girardeau Elks Lodge et aI v MGC is pending in the Circuit Court of Cape Girardeau County regarding the Commissions decision to suspend the Cape Girardeau Elks Lodge bingo license
In the Matler oWilliam D Cammisano Jr there is an appeal pending in the Missouri Court ofAppeals Western District regarding the Commissions decision to place Mr Cammisano on its List of Excluded Persons
MISSOURI GAMING COMMISSIONS EXCLUSION LIST
The Missouri Gaming Commissionplaced two individuals in 1994 two individuals in 1995 and two individuals in 1996 on the commissions Exclusion List Placement of these individuals on the Exclusion List has been based on prior convictions
As a result of placement on the Exclusion List each individual shall not be permitted eoby into any portion of a riverboat gaming operation within the state ofMissouri and shall be ejected ifdiscovered on such premises Furthermore Excluded Persons shall be prohibited from contact of any kind with Missouri riverboat gaming operations Persons placed on the Listmay file a written petition with the Commission to request a hearing to have their name
JlrJissOIlri Gaming Commission 1996 Annual Report - Page 14
removed from the Exclusion List Currentlyone individual has appealed to the Western District of Missouri and two otbers are pending hearings by the Missouri Gaming Commission
MISSOURI GAMING COMMISSIONS DISCIPLINARY ACTIONS AGAINSTOCCUPATIONAL LICENSEES
The Missouri Gaming Commission has taken disciplinary action against twenty-eight occupational licensees as of September 30 1996 Preliminary
Orders for Disciplinary Action set forth statements of fact that support the proposed disciplinary action and the regulatory and statutory sections involved Individuals may request a hearing by serving such a request on the Commissions Executive Director Currently four individuals have sought hearings before the Commission one ofwhich is stm pending
Occupational License Denials 1994-1996
40
l 30
lt0 c Q)
0 lt5 20 i-Q) 0 E ~ 10
o Year Licenses 1994 1995 1996 IiiI Licenses Denials 1 13 35
Voluntary Exclusions On December 30 1996 after six months of research and consultation the
commission established a unique program to combat problem gambling The List of Disassociated Persons is the result of many months ofconsultation with treatment professionals that help problem gamblers The program allows problem gamblers to exclude themselves from Missouri riverboat casinos under the threat ofarrest for trespassing
In exchange for agreeing not to patronize Missouri riverboat casinos the problem gambler is removed from all casino mailing lists and direct marketing promotions In addition the operators are required to deny persons on the List check cashing privileges and must take away their VIP or players club card
Treatment professionals have advised the commission that the only way for a problem gambler to get help is to admit that heshe has a problem and to accept personal responsibility for that problem by seeking treatment
The Disassociated Persons program is a valuable tool in addressing problem gambling because it requires the individual to admit to having a gambling problem to agree to seek treatment and stay away from gambling casinos Furthermore it includes severe consequences if the problem gambler succumbs to the temptation to gamble Moreover it offers some protection to the problem gambler from the marketing promotions that encourage people to visit the casino properties
The program operates in the following manner
~ The problem gambler must obtain an application for placement on the List ofDisassociated Persons from the commission
~ the application contains various information about the individual an admission that the person is a problem gambler and agrees to stay off Missouri riverboats and seek treatment an authorization to release this information to riverboat operators as well as a Waiver releasing the commission and the licensee from any liability associated with enforcing the rules of the program
~ the application must be personally presented to a commission agent at which time the information is verified and the rules of the program are explained
~ the application is a closed record and its contents may only be disclosed to necessary commission and riverboat personnel
~ the commission considers all applications in closed session
~ once a person is placed on the List heshe cannot petition for removal After consulting with treatment professionals the commission concluded that problem gambling requires lifetime treatment and therefore there is no procedure for removal from the List
Missouri is the frrst jurisdiction in the world to propose a program such as this We will continue to monitor and refme the program and look forward to reporting to you on its impact in next years annual report
ft-Iissouri Gaming CommissiOil 1996 Annual Report - Page 16
Brief Timeline of Riverboat Gaming in Missouri ~ May 13 1991 - General Assembly passes House Bill 149 which authorized
referendum to be submitted to the voters in the November 1992 election to determine whether the State Tourism Commission shall have the power to issue riverboat gambling licenses
gt November 31992 - Missouri voters pass referendum allowing riverboat gaming with a majority ofnearly 63
gt January 1993 - Governor Carnahan announces intentions to push legislation creating an independent Gaming Commission to oversee riverboat gambling
April 29 1993 -- SBs 10 amp 11 creating the Missouri Gaming Commission are signed into law by Governor Carnahan and five Commissioners are appointed Robert Wolfson Chairman Robert Clayton William Quinn Dr Jenice Stewart and Avis Tucker
gt April 30 1993 -- Troy Harris et al v The Missouri Gaming Commission amended petition is filed The petition challenges the constitutionality of Senate Bills 10 amp II
gt- May 17 1993 -- The Missouri Gaming Commission holds its first meeting
~ September 1 1993 -- Proposed Rules and EmergencY Rules are adopted
gt September 20 1993 - 19 riverboat gaming license applications are filed with the commission
gt September 20 1993 - Clarence E Mel Fisher hired as Deputy Director for Enforcement
gt September 24 1993 - Commission contracts with the Internal Revenue Service to perform fmancial investigations for the commission Four IRS agents are assigned to the commission
~ September 28 1993 - Commissions enters into and inter-agency agreement with the Missouri State Highway Patrol to provide enforcement services for the commission
~ October I 1993 - Debbie Ferguson joins the commission as Deputy Director for Administration
November 3 1993 - Commission hires Tom Irwin as Executive Director and Kevin Mullally as Deputy Director for Legal amp Legislative Affairs
November 30 1993 -- Commission announces that it will begin background investigations on the following companies President Riverboat Casino-Missouri St Charles Riverfront Station Inc S1 Joseph Riverboat Partners The Missouri Gaming Company GDC (Supplier) IGT (Supplier) Casino Tokens (Supplier) Paul-Son Dice amp Card Company (Supplier)
gt December 22 1993 - Governor Carnahan signs Executive Order 93-50 designating the enforcement section ofthe Missouri Gaming Commission as a criminal justice agency
1994
gt January 25 1994 -- Missouri Supreme Court in Troy Harris v Missouri Gaming Commission strikes down games of chance including slot machines The court ruled that the Commission did have the authority to issue licenses to riverboat where games ofskill are played Specifically mentioned as games ofskill are poker and blackjack The Court remanded six games to lower court for determination as to whether they are games of skill or chance baccarat craps roulette wheel klondike table faro layout and video games ofchance
~ February 1 1994 -- Rules and Regnlations become effective
February 7 1994 -- Legislature passes resolution to place constitutional amendment on the ballot which would allow the legislature to approve games of chance (slot machines) on riverboats and floating facilities on the Missouri and Mississippi Rivers
gt- April 5 1994 -- Voters defeat constitutional amendment allowing games of chance (slot machines) by an unofficial count of 1263 votes
~ April 29 1994 - Finding of Preliminary Suitability issued to President Riverboat Casino S1 Charles Riverfront Station St Joseph Riverboat Partners and The Missouri Gaming Company
Missouri Gaming Commission 1996 AnnualReport - Page 17
Brief Timeline of Riverboat Gaming in Missouri ~ May 20 1994 -- Governor signs into law SB 740 which defmes games of
chance and enacts more stringent ethics provisions The bill also allows the commission to license a barge in an artificial basin as an excursion gambling boat if it can be demonstrated that safely concerns prevent an operator from cruising from that location
~ May 27 1994 - Commission authorizes as games of skin the following Blackjack Caribbean Stud Poker Poker Double Down Stud Poker Pia Gow Poker Poker Texas Hold Em the video representations ofthese games and Craps
gt May 27 1994 -- Commission authorizes President Riverboat Casino-Missouri to operate the Admiral as a continuously docked excursion gambling boat because cruising would cause danger to the boats passengers
gt May 27 1994 -- Gaming Commission issues first two excursion gambling boat licenses to President Riverboat Casino in st Louis and St Charles Riverfront Station in st Charles
gt May 27 1994 -- Initiative petition tbat would allow voters to approve games ofchance is submitted to the Secretary of State for approval of the form ofthe petition
~ June 6 1994 -- Secretary ofState notifies referendum petitioners that the Attorney General has approved the form of their petition The Secretary of State prepared the following petition title that was approved by the Attorney General
Shall the General Assembly be authorized to permit only upon the Mississippi River and the Missouri River lotteries gift enterprises and games ofchance to be conducted on excursion gambling boats and floating facilities
gt June 9 1994 -- Commission prioritizes Aztar Missouri Corporation Boyd Kansas City Inc and Harrahs North Kansas City as companies to be investigated for licensure pursuant to 11 CSR 45-4060
gt June 22 1994 -- Gaming Commission issues licenses to St Joseph Riverboat Partners in St Joseph and The Missouri Gaming Company in Riverside
~ September 20 1994 -- Commission issues a fmding ofpreliminary suitability to Harrahs North Kansas City Corporation
gt September 20 1994 -- Commission authorizes Harrahs North Kansas City Corporation and st Charles Riverfront Stationl to operate excursion gamblillg boats as continuously docked vessels In both cases the commission found that operating a cruising vessel from the proposed site would cause danger to the boats passengers and the project will generate permanent job creation and land-based development
gt September 22 1994 -- Harrahs North Kansas City Corporation is issued an excursion gambling boat license
gt September 28 1994 - Public hearing regarding Capitol Queen and Casino Jncs application for an excursion gambling boat license results in the commission denying CQCs license and prohibiting them from reapplying for two years
gt October 7 1994 - Commission places William D Cammisano Jr and John Termini on its list of excluded persons
gt November 8 1994 -- Voters approve games ofchance
~ December 9 1994 - Games ofchance are allowed on riverboats
gt December 27 1994 - St Charles Riverfront Station is issued a license to operate the St Charles II as an excursion gambling boat This marks the fIrSt time the commission has licensed a second excursion gambling boat for a single development
The approval was for St Charles Riverfront Stations second boat The flTSt boat continued to cruise until April 16 1996
Missouri Gaming Commission 1996 Annual Report - Page 18
Brief Timeline of Riverboat Gaming in Missouri 1995
)gt- February 22 1995 -- Commission announces it will begin background investigation on Hilton Kansas City Corporation for an excursion gambling boat license
~ March 30 1995 - State Auditor releases final audit report of the Missouri Gaming Commission No major deficiencies are noted
~ April 20 1995 - Commission repays $3 million start-up loan to state general revenue fund
)gt- April 25 1995 - Commission approves continuous docking petitions for Boyd Kansas City Inc and Hilton Kansas City Corporation
~ April 25 1995 -- The commission issues a finding ofpreliminary suitability to Aztar Missouri Gaming Corporation
~ April 26 1995 -- The commission issues an excursion gambling boat license to Aztar Missouri Gaming Corporation in Caruthersville Missouri
)gt- May 24 1995 - The commission announces it will begin background investigations on the following companies Harrahs Maryland Heights Corporation Kansas City Station Inc Players Maryland Heights Inc
gt August 28 1995 - Pursuant to House Bill 574 the duties of the Missouri Horse Racing Commission are transferred to the Gaming Commission
~ September 12 1995 - The commission issues a fmding of preliminary suitability to Boyd Kansas City Inc
September 13 1995 - The commission grants the petition ofHarrahs Maryland Heights Corporation and Players Maryland Heights Inc to operate continuously docked excursion gambling boats at their joint venture in Maryland Heights
)gt- September 13 1995 - The commission issues an excursion gambling boat license to Boyd Kansas City Inc
)gtshy November 16 1995 shy The commission fines the following companies for associating with either socially or in business affairs persons with felony police records or persons with a notorious or unsavory reputation Boyd Kansas City Inc Harrahs North Kansas City Corporation The Missouri Gaming Company
1996
)gtshy February 15 1996 - The commission grants continuous docking rights to Aztar Missouri Gaming Corporation for a second boat in Caruthersville Harrahs North Kansas City for a second boat and Kansas City Station Corporation for two boats in Kansas City
~ April 16 1996 - The commission grants continuous docking rights to Argosy in Riverside Missouri S1 Joseph Riverboat Partners and 81 Charles Riverfront Station
~ May 15 1996 - The commission issues a license to Harrahs North Kansas City for the Lucky Star This is the second boat at the Harrahs North Kansas City mcility Included in the project is a 200-room hotel expanded parking and meeting space
~ June 19 1996 -- The commission places William Canunisano Jr on Exclusion List
~ June 27 1996 - The commission places Peter Simone and Anthony T Civella on Exclusion List
August 28 1996 - The commission takes disciplinary action against Boyd Kansas City Inc for periodic failure to take and report turnstile readings
~ October II 1996 - The commission issues a finding of prel iminary suitability to Hilton Kansas City Corporation and Flamingo Hilton Riverboat Casino LoP
October 18 1996 - TIle commission issues a Class B riverboat gambling license 10 HUlon KlIlIStIS City Corporation and a CltlSs A riverboat gambling license 10 Flamingo Hillon Riverboat CtlSino LP
Missouri Gaming Commission 1996Annual Report - Page 19
Outline of a Background Investigation
Review Application fin Completeneiis
~ Establish number ofkey people
~ Check disclosure forms for completeness
gt Check tax release forms
City Selection Process
~ Contact city to determine how the gaming operator was selected
gt Interview Mayor and City Council members
~ Ifa steering committee was used interview members of that committee
Determine ifany city officials own stock in the selected gaming company
~ Obtain minutes ofcouncil meetings that pertain to riverboat issues (a)selection (b) resolution and (c) ordinance
gt Contact city attorney who handled negotiations with gaming company and obtain correspondence between city and gaming company
~ Contact City Economic Development Director (if applicable)
Docksite
gt- Land selected for gaming operation
J Who was it purchased from (how long have they owned the property) J Price (copy ofcontract)J Copy of plat map and legal description J Determine ifany ofcity officials or selection committee members have
ownership interest in docksite
gt Corps ofEngineers Permit
J Status
J Any concerns by Corps J Wetlands involved
~ Contact DNR for any known concerns in area
gt Check with city for any known dwnpsites with possible hazardous material
gt Developmental agreement between city and gaming operator (obtain copy from city)
gt Detennine if development is feasible
J Is support facility land based or floating J Projected nwnber ofjobs economic aid to area J Traffic flow to area - what improvements are needed - who will pay
for improvements
Riverboat
gt Locate boat and obtain all infonnation about boat (cruise schedule liability carrier)
gt Establish design ofriverboat
gt Determine emergency medical plan for boat
gt Determine ifCoast Guard and other safety requirements have been met
Gaming Operator (Public Corporation Partnership Private Company)
gt Establish contact person with operator
J Determine attorney of record for gaming company J Any missing items from application advise contact person
gt Establish home office (Financial Headquarters)
J Determine a good date and location where all key people can be contacted for a personal interview
J Where can financial record be located
Missouri Gaming Commission 1996Annual Report - Page 20
~
Outline of a Background Investigation
J Breakdown ofmanagement (corporate Board ofDirectors major stockholders)
J Establish flow chart of key people and companies owned by gaming operator
~ Investigation ofKey People will include but not be limited to the following
J Check previous employment work records J Check state local and federal intelligence files J Check for other gaming licenses ifapplicable (check with appropriate
regulators)J Check state federal and local courts for any civil litigation J Check for any arrest record J Check personal and business credit J Check state and local tax status IRS will handle federal taxes
gt Other locations ofgaming operations (currently operating and pending locations)
J Contact gaming regulators for respective locations J Travel to sites to view operations
Establish a file for all key people investigated with summaries establish a file for financial records with summary offinancial viability ofcompany and ability to complete obligations to the city and State ofMissouri Establish a file for other locations of licensure along with summary
Associated Investigations
gt All allegations of Any nature must be investigated and a file established with a written summary
~ Associated investigations must be done in a complete and thorough manner and all reports written accurately
gt Upon completion ofall investigations complete reports and summaries a separate press releasable summary must be written This summary must be approved by Gaming Commission legal staff
Missouri Gaming Commission 1996 Annual Report - Page 21
------------
--------
-----
------
---
---------
----------
Missouri Gaming Commission Compliance Audit Objectives for Licensees
ObjectiveAudit Area ~~~~~~~~~
To ensure accuracy of ticket and turnstile counts reported to MGC including compsIVlPs stayovers and promotions
Table Games
Ticketffurnstile
To ensure accuracy of AGR for table games reported to MGC
Electronic Games To ensure accuracy of AGR for electronic games reported to MGC
Cage Accowltability To ensure accuracy ofcage accountability forms and compliance with internal controls and tax reporting regulations
Observations Cage Main Bank Pit Area Slot Area Turnstile Ticketing
PurchaselRedemptions
$500 Loss Limit
Stayover Procedures
To determine that cashiers are complying with internal controls for chips tokens gaming scrip and cash
To determine compliance with MO statutes and internal controls
To determine compliance with MGC regulations and internal controls
To ensure that manual jackpot payouts are properly handled and the required tax fomIS are completed Manual Jackpot Payouts
To ensure that hopper fills are properly handled and comply with internal controls Hopper Fills
To ensure that table fills are properly handled and comply with internal cootrols Table Fills
To ensure that table credits are properly handled and comply with internal controls Table Credits
To ensure that tracking procedures comply with internal controls and the currency transactions are properly completed Patron TrackingCurrency Transaction Reporting
Imprest Bank Balancing To ensure that proper balancing and accountability is performed during a shift change
Coin Vault To ensure proper maintenance of coin chip and token inventory
Satellite CageSSlot Booths To ensure compliance with internal controls and consistency with main cage procedures
TipsGratuities To ensure compliance with MGC regulations and internal controls
Cage AccessSecurity To ensure compliance with internal controls
Turnstile To ensure accuracy of turnstile count for admissions tax calculation
Ticketing To ensure comp Hance with internal controls and proper handling of stubs voids and issuance
MiscellaneousOther
Surveillance Tapes To review activity for hard soft and tip counts and drops to verify compliance with internal controls
Workpaper Preparation and To establish standardized procedures for MGC audit workpapers and audit reports Audit Reports
-
Missouri Gaming Commission 1996 AnnualReport - Page 22
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Audit Area
Monthly Financial Statement Review
Engagement Letters
Objective --shy
To perform a preliminary review ofmonthly financial statement information for proper completion of fmandal statement templates verification ofadjusted gross receipts to MGC reports and to detect any unusual items which justifY further review when conducting on-site audit
To give advance notification to each boat of the date and scope ofaudit being performed
Financial Statement Verification To determine consistency ofmonthly financial statement information submitted to MGC with boats general ledger system
Balance Sheet Accounts
CashCash Reserve Balance
Cash Receipts
Cash Disbursements
shy -- shy
To determine the existence consistency and fair presentation of the cash balance on the monthly fmancial statements
To determine the consistency and filir presentation of the cash balance on the monthly financial statements and the source of large cash receipts other than gaming revenue
___I
To determine the consistency and fair presentation of the cash balance on the monthly fmancial statements and to trace the outflow of large cash disbursements
i
I
--
AccountslN Notes Receivable
Accrued Admission and Gaming Tax Liability
Chip and Token Liability
Progressive Jackpot Liability
To determine the consistency and fair presentation of the accounts receivable andor notes receivable balance in the monthly fmancial statements
To determine the consistency and fair presentation of the accrued admissiongaming tax liability balance in the monthly financial statements
To determine the consistency and fair presentation of the chip and token liability balance in the monthly financial statements
To determine the consistency and fair presentation of the progressive jackpot liability balance in the monthly fmancial statements
---shy
Tips and Gratuities (Accrued Liability)
Customer Deposit Liability
Accounts Payable
Income Statement Accounts
Revenne - Table Games
To determine the consistency and fair presentation of the accrued tips and gratuities liability in the monthly fmancial statements
-lt ---- shy
To determine the consistency and fair presentation of the customer deposit liabilities in the monthly fiscal statements To determine the consistency and fair presentation ofaccounts payable balance in the monthly fmancial statements
--shy
To determine the consistency and fair presentation of table games revenue as reported to MGC daily and in the monthly fmandal statements
Revenue - Electronic Games To determine the consistency and fair presentation of electronic games revenue as reported to MGC daily and in the monthly financial statements
Missouri Gaming Commission 1996 Annual Report - Page 23
------------
---------
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Revenue - Admissions To detennine the consistency and fair presentation ofadmissions revenue as reported to MGC daily and in the monthly fmancial statements
Promotional Expense To determine that comps are properly recorded as expenses and not deducted from revenue in accordance with GAAP
Pre-Opening Costs To determine whether certain pre-opening and licensing costs are properly expensed or amortized over future periods in accordance with GAAP
Workpaper Preparation and Audit Reports To establish standardized procedures for MGC audit workpapers and audit reports
AissOllri Gamillg Commission 1996 Anllual Report - Page 24
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AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
c
Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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I IAztar Missouri Corporation
r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
~
Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
removed from the Exclusion List Currentlyone individual has appealed to the Western District of Missouri and two otbers are pending hearings by the Missouri Gaming Commission
MISSOURI GAMING COMMISSIONS DISCIPLINARY ACTIONS AGAINSTOCCUPATIONAL LICENSEES
The Missouri Gaming Commission has taken disciplinary action against twenty-eight occupational licensees as of September 30 1996 Preliminary
Orders for Disciplinary Action set forth statements of fact that support the proposed disciplinary action and the regulatory and statutory sections involved Individuals may request a hearing by serving such a request on the Commissions Executive Director Currently four individuals have sought hearings before the Commission one ofwhich is stm pending
Occupational License Denials 1994-1996
40
l 30
lt0 c Q)
0 lt5 20 i-Q) 0 E ~ 10
o Year Licenses 1994 1995 1996 IiiI Licenses Denials 1 13 35
Voluntary Exclusions On December 30 1996 after six months of research and consultation the
commission established a unique program to combat problem gambling The List of Disassociated Persons is the result of many months ofconsultation with treatment professionals that help problem gamblers The program allows problem gamblers to exclude themselves from Missouri riverboat casinos under the threat ofarrest for trespassing
In exchange for agreeing not to patronize Missouri riverboat casinos the problem gambler is removed from all casino mailing lists and direct marketing promotions In addition the operators are required to deny persons on the List check cashing privileges and must take away their VIP or players club card
Treatment professionals have advised the commission that the only way for a problem gambler to get help is to admit that heshe has a problem and to accept personal responsibility for that problem by seeking treatment
The Disassociated Persons program is a valuable tool in addressing problem gambling because it requires the individual to admit to having a gambling problem to agree to seek treatment and stay away from gambling casinos Furthermore it includes severe consequences if the problem gambler succumbs to the temptation to gamble Moreover it offers some protection to the problem gambler from the marketing promotions that encourage people to visit the casino properties
The program operates in the following manner
~ The problem gambler must obtain an application for placement on the List ofDisassociated Persons from the commission
~ the application contains various information about the individual an admission that the person is a problem gambler and agrees to stay off Missouri riverboats and seek treatment an authorization to release this information to riverboat operators as well as a Waiver releasing the commission and the licensee from any liability associated with enforcing the rules of the program
~ the application must be personally presented to a commission agent at which time the information is verified and the rules of the program are explained
~ the application is a closed record and its contents may only be disclosed to necessary commission and riverboat personnel
~ the commission considers all applications in closed session
~ once a person is placed on the List heshe cannot petition for removal After consulting with treatment professionals the commission concluded that problem gambling requires lifetime treatment and therefore there is no procedure for removal from the List
Missouri is the frrst jurisdiction in the world to propose a program such as this We will continue to monitor and refme the program and look forward to reporting to you on its impact in next years annual report
ft-Iissouri Gaming CommissiOil 1996 Annual Report - Page 16
Brief Timeline of Riverboat Gaming in Missouri ~ May 13 1991 - General Assembly passes House Bill 149 which authorized
referendum to be submitted to the voters in the November 1992 election to determine whether the State Tourism Commission shall have the power to issue riverboat gambling licenses
gt November 31992 - Missouri voters pass referendum allowing riverboat gaming with a majority ofnearly 63
gt January 1993 - Governor Carnahan announces intentions to push legislation creating an independent Gaming Commission to oversee riverboat gambling
April 29 1993 -- SBs 10 amp 11 creating the Missouri Gaming Commission are signed into law by Governor Carnahan and five Commissioners are appointed Robert Wolfson Chairman Robert Clayton William Quinn Dr Jenice Stewart and Avis Tucker
gt April 30 1993 -- Troy Harris et al v The Missouri Gaming Commission amended petition is filed The petition challenges the constitutionality of Senate Bills 10 amp II
gt- May 17 1993 -- The Missouri Gaming Commission holds its first meeting
~ September 1 1993 -- Proposed Rules and EmergencY Rules are adopted
gt September 20 1993 - 19 riverboat gaming license applications are filed with the commission
gt September 20 1993 - Clarence E Mel Fisher hired as Deputy Director for Enforcement
gt September 24 1993 - Commission contracts with the Internal Revenue Service to perform fmancial investigations for the commission Four IRS agents are assigned to the commission
~ September 28 1993 - Commissions enters into and inter-agency agreement with the Missouri State Highway Patrol to provide enforcement services for the commission
~ October I 1993 - Debbie Ferguson joins the commission as Deputy Director for Administration
November 3 1993 - Commission hires Tom Irwin as Executive Director and Kevin Mullally as Deputy Director for Legal amp Legislative Affairs
November 30 1993 -- Commission announces that it will begin background investigations on the following companies President Riverboat Casino-Missouri St Charles Riverfront Station Inc S1 Joseph Riverboat Partners The Missouri Gaming Company GDC (Supplier) IGT (Supplier) Casino Tokens (Supplier) Paul-Son Dice amp Card Company (Supplier)
gt December 22 1993 - Governor Carnahan signs Executive Order 93-50 designating the enforcement section ofthe Missouri Gaming Commission as a criminal justice agency
1994
gt January 25 1994 -- Missouri Supreme Court in Troy Harris v Missouri Gaming Commission strikes down games of chance including slot machines The court ruled that the Commission did have the authority to issue licenses to riverboat where games ofskill are played Specifically mentioned as games ofskill are poker and blackjack The Court remanded six games to lower court for determination as to whether they are games of skill or chance baccarat craps roulette wheel klondike table faro layout and video games ofchance
~ February 1 1994 -- Rules and Regnlations become effective
February 7 1994 -- Legislature passes resolution to place constitutional amendment on the ballot which would allow the legislature to approve games of chance (slot machines) on riverboats and floating facilities on the Missouri and Mississippi Rivers
gt- April 5 1994 -- Voters defeat constitutional amendment allowing games of chance (slot machines) by an unofficial count of 1263 votes
~ April 29 1994 - Finding of Preliminary Suitability issued to President Riverboat Casino S1 Charles Riverfront Station St Joseph Riverboat Partners and The Missouri Gaming Company
Missouri Gaming Commission 1996 AnnualReport - Page 17
Brief Timeline of Riverboat Gaming in Missouri ~ May 20 1994 -- Governor signs into law SB 740 which defmes games of
chance and enacts more stringent ethics provisions The bill also allows the commission to license a barge in an artificial basin as an excursion gambling boat if it can be demonstrated that safely concerns prevent an operator from cruising from that location
~ May 27 1994 - Commission authorizes as games of skin the following Blackjack Caribbean Stud Poker Poker Double Down Stud Poker Pia Gow Poker Poker Texas Hold Em the video representations ofthese games and Craps
gt May 27 1994 -- Commission authorizes President Riverboat Casino-Missouri to operate the Admiral as a continuously docked excursion gambling boat because cruising would cause danger to the boats passengers
gt May 27 1994 -- Gaming Commission issues first two excursion gambling boat licenses to President Riverboat Casino in st Louis and St Charles Riverfront Station in st Charles
gt May 27 1994 -- Initiative petition tbat would allow voters to approve games ofchance is submitted to the Secretary of State for approval of the form ofthe petition
~ June 6 1994 -- Secretary ofState notifies referendum petitioners that the Attorney General has approved the form of their petition The Secretary of State prepared the following petition title that was approved by the Attorney General
Shall the General Assembly be authorized to permit only upon the Mississippi River and the Missouri River lotteries gift enterprises and games ofchance to be conducted on excursion gambling boats and floating facilities
gt June 9 1994 -- Commission prioritizes Aztar Missouri Corporation Boyd Kansas City Inc and Harrahs North Kansas City as companies to be investigated for licensure pursuant to 11 CSR 45-4060
gt June 22 1994 -- Gaming Commission issues licenses to St Joseph Riverboat Partners in St Joseph and The Missouri Gaming Company in Riverside
~ September 20 1994 -- Commission issues a fmding ofpreliminary suitability to Harrahs North Kansas City Corporation
gt September 20 1994 -- Commission authorizes Harrahs North Kansas City Corporation and st Charles Riverfront Stationl to operate excursion gamblillg boats as continuously docked vessels In both cases the commission found that operating a cruising vessel from the proposed site would cause danger to the boats passengers and the project will generate permanent job creation and land-based development
gt September 22 1994 -- Harrahs North Kansas City Corporation is issued an excursion gambling boat license
gt September 28 1994 - Public hearing regarding Capitol Queen and Casino Jncs application for an excursion gambling boat license results in the commission denying CQCs license and prohibiting them from reapplying for two years
gt October 7 1994 - Commission places William D Cammisano Jr and John Termini on its list of excluded persons
gt November 8 1994 -- Voters approve games ofchance
~ December 9 1994 - Games ofchance are allowed on riverboats
gt December 27 1994 - St Charles Riverfront Station is issued a license to operate the St Charles II as an excursion gambling boat This marks the fIrSt time the commission has licensed a second excursion gambling boat for a single development
The approval was for St Charles Riverfront Stations second boat The flTSt boat continued to cruise until April 16 1996
Missouri Gaming Commission 1996 Annual Report - Page 18
Brief Timeline of Riverboat Gaming in Missouri 1995
)gt- February 22 1995 -- Commission announces it will begin background investigation on Hilton Kansas City Corporation for an excursion gambling boat license
~ March 30 1995 - State Auditor releases final audit report of the Missouri Gaming Commission No major deficiencies are noted
~ April 20 1995 - Commission repays $3 million start-up loan to state general revenue fund
)gt- April 25 1995 - Commission approves continuous docking petitions for Boyd Kansas City Inc and Hilton Kansas City Corporation
~ April 25 1995 -- The commission issues a finding ofpreliminary suitability to Aztar Missouri Gaming Corporation
~ April 26 1995 -- The commission issues an excursion gambling boat license to Aztar Missouri Gaming Corporation in Caruthersville Missouri
)gt- May 24 1995 - The commission announces it will begin background investigations on the following companies Harrahs Maryland Heights Corporation Kansas City Station Inc Players Maryland Heights Inc
gt August 28 1995 - Pursuant to House Bill 574 the duties of the Missouri Horse Racing Commission are transferred to the Gaming Commission
~ September 12 1995 - The commission issues a fmding of preliminary suitability to Boyd Kansas City Inc
September 13 1995 - The commission grants the petition ofHarrahs Maryland Heights Corporation and Players Maryland Heights Inc to operate continuously docked excursion gambling boats at their joint venture in Maryland Heights
)gt- September 13 1995 - The commission issues an excursion gambling boat license to Boyd Kansas City Inc
)gtshy November 16 1995 shy The commission fines the following companies for associating with either socially or in business affairs persons with felony police records or persons with a notorious or unsavory reputation Boyd Kansas City Inc Harrahs North Kansas City Corporation The Missouri Gaming Company
1996
)gtshy February 15 1996 - The commission grants continuous docking rights to Aztar Missouri Gaming Corporation for a second boat in Caruthersville Harrahs North Kansas City for a second boat and Kansas City Station Corporation for two boats in Kansas City
~ April 16 1996 - The commission grants continuous docking rights to Argosy in Riverside Missouri S1 Joseph Riverboat Partners and 81 Charles Riverfront Station
~ May 15 1996 - The commission issues a license to Harrahs North Kansas City for the Lucky Star This is the second boat at the Harrahs North Kansas City mcility Included in the project is a 200-room hotel expanded parking and meeting space
~ June 19 1996 -- The commission places William Canunisano Jr on Exclusion List
~ June 27 1996 - The commission places Peter Simone and Anthony T Civella on Exclusion List
August 28 1996 - The commission takes disciplinary action against Boyd Kansas City Inc for periodic failure to take and report turnstile readings
~ October II 1996 - The commission issues a finding of prel iminary suitability to Hilton Kansas City Corporation and Flamingo Hilton Riverboat Casino LoP
October 18 1996 - TIle commission issues a Class B riverboat gambling license 10 HUlon KlIlIStIS City Corporation and a CltlSs A riverboat gambling license 10 Flamingo Hillon Riverboat CtlSino LP
Missouri Gaming Commission 1996Annual Report - Page 19
Outline of a Background Investigation
Review Application fin Completeneiis
~ Establish number ofkey people
~ Check disclosure forms for completeness
gt Check tax release forms
City Selection Process
~ Contact city to determine how the gaming operator was selected
gt Interview Mayor and City Council members
~ Ifa steering committee was used interview members of that committee
Determine ifany city officials own stock in the selected gaming company
~ Obtain minutes ofcouncil meetings that pertain to riverboat issues (a)selection (b) resolution and (c) ordinance
gt Contact city attorney who handled negotiations with gaming company and obtain correspondence between city and gaming company
~ Contact City Economic Development Director (if applicable)
Docksite
gt- Land selected for gaming operation
J Who was it purchased from (how long have they owned the property) J Price (copy ofcontract)J Copy of plat map and legal description J Determine ifany ofcity officials or selection committee members have
ownership interest in docksite
gt Corps ofEngineers Permit
J Status
J Any concerns by Corps J Wetlands involved
~ Contact DNR for any known concerns in area
gt Check with city for any known dwnpsites with possible hazardous material
gt Developmental agreement between city and gaming operator (obtain copy from city)
gt Detennine if development is feasible
J Is support facility land based or floating J Projected nwnber ofjobs economic aid to area J Traffic flow to area - what improvements are needed - who will pay
for improvements
Riverboat
gt Locate boat and obtain all infonnation about boat (cruise schedule liability carrier)
gt Establish design ofriverboat
gt Determine emergency medical plan for boat
gt Determine ifCoast Guard and other safety requirements have been met
Gaming Operator (Public Corporation Partnership Private Company)
gt Establish contact person with operator
J Determine attorney of record for gaming company J Any missing items from application advise contact person
gt Establish home office (Financial Headquarters)
J Determine a good date and location where all key people can be contacted for a personal interview
J Where can financial record be located
Missouri Gaming Commission 1996Annual Report - Page 20
~
Outline of a Background Investigation
J Breakdown ofmanagement (corporate Board ofDirectors major stockholders)
J Establish flow chart of key people and companies owned by gaming operator
~ Investigation ofKey People will include but not be limited to the following
J Check previous employment work records J Check state local and federal intelligence files J Check for other gaming licenses ifapplicable (check with appropriate
regulators)J Check state federal and local courts for any civil litigation J Check for any arrest record J Check personal and business credit J Check state and local tax status IRS will handle federal taxes
gt Other locations ofgaming operations (currently operating and pending locations)
J Contact gaming regulators for respective locations J Travel to sites to view operations
Establish a file for all key people investigated with summaries establish a file for financial records with summary offinancial viability ofcompany and ability to complete obligations to the city and State ofMissouri Establish a file for other locations of licensure along with summary
Associated Investigations
gt All allegations of Any nature must be investigated and a file established with a written summary
~ Associated investigations must be done in a complete and thorough manner and all reports written accurately
gt Upon completion ofall investigations complete reports and summaries a separate press releasable summary must be written This summary must be approved by Gaming Commission legal staff
Missouri Gaming Commission 1996 Annual Report - Page 21
------------
--------
-----
------
---
---------
----------
Missouri Gaming Commission Compliance Audit Objectives for Licensees
ObjectiveAudit Area ~~~~~~~~~
To ensure accuracy of ticket and turnstile counts reported to MGC including compsIVlPs stayovers and promotions
Table Games
Ticketffurnstile
To ensure accuracy of AGR for table games reported to MGC
Electronic Games To ensure accuracy of AGR for electronic games reported to MGC
Cage Accowltability To ensure accuracy ofcage accountability forms and compliance with internal controls and tax reporting regulations
Observations Cage Main Bank Pit Area Slot Area Turnstile Ticketing
PurchaselRedemptions
$500 Loss Limit
Stayover Procedures
To determine that cashiers are complying with internal controls for chips tokens gaming scrip and cash
To determine compliance with MO statutes and internal controls
To determine compliance with MGC regulations and internal controls
To ensure that manual jackpot payouts are properly handled and the required tax fomIS are completed Manual Jackpot Payouts
To ensure that hopper fills are properly handled and comply with internal controls Hopper Fills
To ensure that table fills are properly handled and comply with internal cootrols Table Fills
To ensure that table credits are properly handled and comply with internal controls Table Credits
To ensure that tracking procedures comply with internal controls and the currency transactions are properly completed Patron TrackingCurrency Transaction Reporting
Imprest Bank Balancing To ensure that proper balancing and accountability is performed during a shift change
Coin Vault To ensure proper maintenance of coin chip and token inventory
Satellite CageSSlot Booths To ensure compliance with internal controls and consistency with main cage procedures
TipsGratuities To ensure compliance with MGC regulations and internal controls
Cage AccessSecurity To ensure compliance with internal controls
Turnstile To ensure accuracy of turnstile count for admissions tax calculation
Ticketing To ensure comp Hance with internal controls and proper handling of stubs voids and issuance
MiscellaneousOther
Surveillance Tapes To review activity for hard soft and tip counts and drops to verify compliance with internal controls
Workpaper Preparation and To establish standardized procedures for MGC audit workpapers and audit reports Audit Reports
-
Missouri Gaming Commission 1996 AnnualReport - Page 22
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Audit Area
Monthly Financial Statement Review
Engagement Letters
Objective --shy
To perform a preliminary review ofmonthly financial statement information for proper completion of fmandal statement templates verification ofadjusted gross receipts to MGC reports and to detect any unusual items which justifY further review when conducting on-site audit
To give advance notification to each boat of the date and scope ofaudit being performed
Financial Statement Verification To determine consistency ofmonthly financial statement information submitted to MGC with boats general ledger system
Balance Sheet Accounts
CashCash Reserve Balance
Cash Receipts
Cash Disbursements
shy -- shy
To determine the existence consistency and fair presentation of the cash balance on the monthly fmancial statements
To determine the consistency and filir presentation of the cash balance on the monthly financial statements and the source of large cash receipts other than gaming revenue
___I
To determine the consistency and fair presentation of the cash balance on the monthly fmancial statements and to trace the outflow of large cash disbursements
i
I
--
AccountslN Notes Receivable
Accrued Admission and Gaming Tax Liability
Chip and Token Liability
Progressive Jackpot Liability
To determine the consistency and fair presentation of the accounts receivable andor notes receivable balance in the monthly fmancial statements
To determine the consistency and fair presentation of the accrued admissiongaming tax liability balance in the monthly financial statements
To determine the consistency and fair presentation of the chip and token liability balance in the monthly financial statements
To determine the consistency and fair presentation of the progressive jackpot liability balance in the monthly fmancial statements
---shy
Tips and Gratuities (Accrued Liability)
Customer Deposit Liability
Accounts Payable
Income Statement Accounts
Revenne - Table Games
To determine the consistency and fair presentation of the accrued tips and gratuities liability in the monthly fmancial statements
-lt ---- shy
To determine the consistency and fair presentation of the customer deposit liabilities in the monthly fiscal statements To determine the consistency and fair presentation ofaccounts payable balance in the monthly fmancial statements
--shy
To determine the consistency and fair presentation of table games revenue as reported to MGC daily and in the monthly fmandal statements
Revenue - Electronic Games To determine the consistency and fair presentation of electronic games revenue as reported to MGC daily and in the monthly financial statements
Missouri Gaming Commission 1996 Annual Report - Page 23
------------
---------
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Revenue - Admissions To detennine the consistency and fair presentation ofadmissions revenue as reported to MGC daily and in the monthly fmancial statements
Promotional Expense To determine that comps are properly recorded as expenses and not deducted from revenue in accordance with GAAP
Pre-Opening Costs To determine whether certain pre-opening and licensing costs are properly expensed or amortized over future periods in accordance with GAAP
Workpaper Preparation and Audit Reports To establish standardized procedures for MGC audit workpapers and audit reports
AissOllri Gamillg Commission 1996 Anllual Report - Page 24
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AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
c
Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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I IAztar Missouri Corporation
r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
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~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
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~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
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$lot Machines 349
Voluntary Exclusions On December 30 1996 after six months of research and consultation the
commission established a unique program to combat problem gambling The List of Disassociated Persons is the result of many months ofconsultation with treatment professionals that help problem gamblers The program allows problem gamblers to exclude themselves from Missouri riverboat casinos under the threat ofarrest for trespassing
In exchange for agreeing not to patronize Missouri riverboat casinos the problem gambler is removed from all casino mailing lists and direct marketing promotions In addition the operators are required to deny persons on the List check cashing privileges and must take away their VIP or players club card
Treatment professionals have advised the commission that the only way for a problem gambler to get help is to admit that heshe has a problem and to accept personal responsibility for that problem by seeking treatment
The Disassociated Persons program is a valuable tool in addressing problem gambling because it requires the individual to admit to having a gambling problem to agree to seek treatment and stay away from gambling casinos Furthermore it includes severe consequences if the problem gambler succumbs to the temptation to gamble Moreover it offers some protection to the problem gambler from the marketing promotions that encourage people to visit the casino properties
The program operates in the following manner
~ The problem gambler must obtain an application for placement on the List ofDisassociated Persons from the commission
~ the application contains various information about the individual an admission that the person is a problem gambler and agrees to stay off Missouri riverboats and seek treatment an authorization to release this information to riverboat operators as well as a Waiver releasing the commission and the licensee from any liability associated with enforcing the rules of the program
~ the application must be personally presented to a commission agent at which time the information is verified and the rules of the program are explained
~ the application is a closed record and its contents may only be disclosed to necessary commission and riverboat personnel
~ the commission considers all applications in closed session
~ once a person is placed on the List heshe cannot petition for removal After consulting with treatment professionals the commission concluded that problem gambling requires lifetime treatment and therefore there is no procedure for removal from the List
Missouri is the frrst jurisdiction in the world to propose a program such as this We will continue to monitor and refme the program and look forward to reporting to you on its impact in next years annual report
ft-Iissouri Gaming CommissiOil 1996 Annual Report - Page 16
Brief Timeline of Riverboat Gaming in Missouri ~ May 13 1991 - General Assembly passes House Bill 149 which authorized
referendum to be submitted to the voters in the November 1992 election to determine whether the State Tourism Commission shall have the power to issue riverboat gambling licenses
gt November 31992 - Missouri voters pass referendum allowing riverboat gaming with a majority ofnearly 63
gt January 1993 - Governor Carnahan announces intentions to push legislation creating an independent Gaming Commission to oversee riverboat gambling
April 29 1993 -- SBs 10 amp 11 creating the Missouri Gaming Commission are signed into law by Governor Carnahan and five Commissioners are appointed Robert Wolfson Chairman Robert Clayton William Quinn Dr Jenice Stewart and Avis Tucker
gt April 30 1993 -- Troy Harris et al v The Missouri Gaming Commission amended petition is filed The petition challenges the constitutionality of Senate Bills 10 amp II
gt- May 17 1993 -- The Missouri Gaming Commission holds its first meeting
~ September 1 1993 -- Proposed Rules and EmergencY Rules are adopted
gt September 20 1993 - 19 riverboat gaming license applications are filed with the commission
gt September 20 1993 - Clarence E Mel Fisher hired as Deputy Director for Enforcement
gt September 24 1993 - Commission contracts with the Internal Revenue Service to perform fmancial investigations for the commission Four IRS agents are assigned to the commission
~ September 28 1993 - Commissions enters into and inter-agency agreement with the Missouri State Highway Patrol to provide enforcement services for the commission
~ October I 1993 - Debbie Ferguson joins the commission as Deputy Director for Administration
November 3 1993 - Commission hires Tom Irwin as Executive Director and Kevin Mullally as Deputy Director for Legal amp Legislative Affairs
November 30 1993 -- Commission announces that it will begin background investigations on the following companies President Riverboat Casino-Missouri St Charles Riverfront Station Inc S1 Joseph Riverboat Partners The Missouri Gaming Company GDC (Supplier) IGT (Supplier) Casino Tokens (Supplier) Paul-Son Dice amp Card Company (Supplier)
gt December 22 1993 - Governor Carnahan signs Executive Order 93-50 designating the enforcement section ofthe Missouri Gaming Commission as a criminal justice agency
1994
gt January 25 1994 -- Missouri Supreme Court in Troy Harris v Missouri Gaming Commission strikes down games of chance including slot machines The court ruled that the Commission did have the authority to issue licenses to riverboat where games ofskill are played Specifically mentioned as games ofskill are poker and blackjack The Court remanded six games to lower court for determination as to whether they are games of skill or chance baccarat craps roulette wheel klondike table faro layout and video games ofchance
~ February 1 1994 -- Rules and Regnlations become effective
February 7 1994 -- Legislature passes resolution to place constitutional amendment on the ballot which would allow the legislature to approve games of chance (slot machines) on riverboats and floating facilities on the Missouri and Mississippi Rivers
gt- April 5 1994 -- Voters defeat constitutional amendment allowing games of chance (slot machines) by an unofficial count of 1263 votes
~ April 29 1994 - Finding of Preliminary Suitability issued to President Riverboat Casino S1 Charles Riverfront Station St Joseph Riverboat Partners and The Missouri Gaming Company
Missouri Gaming Commission 1996 AnnualReport - Page 17
Brief Timeline of Riverboat Gaming in Missouri ~ May 20 1994 -- Governor signs into law SB 740 which defmes games of
chance and enacts more stringent ethics provisions The bill also allows the commission to license a barge in an artificial basin as an excursion gambling boat if it can be demonstrated that safely concerns prevent an operator from cruising from that location
~ May 27 1994 - Commission authorizes as games of skin the following Blackjack Caribbean Stud Poker Poker Double Down Stud Poker Pia Gow Poker Poker Texas Hold Em the video representations ofthese games and Craps
gt May 27 1994 -- Commission authorizes President Riverboat Casino-Missouri to operate the Admiral as a continuously docked excursion gambling boat because cruising would cause danger to the boats passengers
gt May 27 1994 -- Gaming Commission issues first two excursion gambling boat licenses to President Riverboat Casino in st Louis and St Charles Riverfront Station in st Charles
gt May 27 1994 -- Initiative petition tbat would allow voters to approve games ofchance is submitted to the Secretary of State for approval of the form ofthe petition
~ June 6 1994 -- Secretary ofState notifies referendum petitioners that the Attorney General has approved the form of their petition The Secretary of State prepared the following petition title that was approved by the Attorney General
Shall the General Assembly be authorized to permit only upon the Mississippi River and the Missouri River lotteries gift enterprises and games ofchance to be conducted on excursion gambling boats and floating facilities
gt June 9 1994 -- Commission prioritizes Aztar Missouri Corporation Boyd Kansas City Inc and Harrahs North Kansas City as companies to be investigated for licensure pursuant to 11 CSR 45-4060
gt June 22 1994 -- Gaming Commission issues licenses to St Joseph Riverboat Partners in St Joseph and The Missouri Gaming Company in Riverside
~ September 20 1994 -- Commission issues a fmding ofpreliminary suitability to Harrahs North Kansas City Corporation
gt September 20 1994 -- Commission authorizes Harrahs North Kansas City Corporation and st Charles Riverfront Stationl to operate excursion gamblillg boats as continuously docked vessels In both cases the commission found that operating a cruising vessel from the proposed site would cause danger to the boats passengers and the project will generate permanent job creation and land-based development
gt September 22 1994 -- Harrahs North Kansas City Corporation is issued an excursion gambling boat license
gt September 28 1994 - Public hearing regarding Capitol Queen and Casino Jncs application for an excursion gambling boat license results in the commission denying CQCs license and prohibiting them from reapplying for two years
gt October 7 1994 - Commission places William D Cammisano Jr and John Termini on its list of excluded persons
gt November 8 1994 -- Voters approve games ofchance
~ December 9 1994 - Games ofchance are allowed on riverboats
gt December 27 1994 - St Charles Riverfront Station is issued a license to operate the St Charles II as an excursion gambling boat This marks the fIrSt time the commission has licensed a second excursion gambling boat for a single development
The approval was for St Charles Riverfront Stations second boat The flTSt boat continued to cruise until April 16 1996
Missouri Gaming Commission 1996 Annual Report - Page 18
Brief Timeline of Riverboat Gaming in Missouri 1995
)gt- February 22 1995 -- Commission announces it will begin background investigation on Hilton Kansas City Corporation for an excursion gambling boat license
~ March 30 1995 - State Auditor releases final audit report of the Missouri Gaming Commission No major deficiencies are noted
~ April 20 1995 - Commission repays $3 million start-up loan to state general revenue fund
)gt- April 25 1995 - Commission approves continuous docking petitions for Boyd Kansas City Inc and Hilton Kansas City Corporation
~ April 25 1995 -- The commission issues a finding ofpreliminary suitability to Aztar Missouri Gaming Corporation
~ April 26 1995 -- The commission issues an excursion gambling boat license to Aztar Missouri Gaming Corporation in Caruthersville Missouri
)gt- May 24 1995 - The commission announces it will begin background investigations on the following companies Harrahs Maryland Heights Corporation Kansas City Station Inc Players Maryland Heights Inc
gt August 28 1995 - Pursuant to House Bill 574 the duties of the Missouri Horse Racing Commission are transferred to the Gaming Commission
~ September 12 1995 - The commission issues a fmding of preliminary suitability to Boyd Kansas City Inc
September 13 1995 - The commission grants the petition ofHarrahs Maryland Heights Corporation and Players Maryland Heights Inc to operate continuously docked excursion gambling boats at their joint venture in Maryland Heights
)gt- September 13 1995 - The commission issues an excursion gambling boat license to Boyd Kansas City Inc
)gtshy November 16 1995 shy The commission fines the following companies for associating with either socially or in business affairs persons with felony police records or persons with a notorious or unsavory reputation Boyd Kansas City Inc Harrahs North Kansas City Corporation The Missouri Gaming Company
1996
)gtshy February 15 1996 - The commission grants continuous docking rights to Aztar Missouri Gaming Corporation for a second boat in Caruthersville Harrahs North Kansas City for a second boat and Kansas City Station Corporation for two boats in Kansas City
~ April 16 1996 - The commission grants continuous docking rights to Argosy in Riverside Missouri S1 Joseph Riverboat Partners and 81 Charles Riverfront Station
~ May 15 1996 - The commission issues a license to Harrahs North Kansas City for the Lucky Star This is the second boat at the Harrahs North Kansas City mcility Included in the project is a 200-room hotel expanded parking and meeting space
~ June 19 1996 -- The commission places William Canunisano Jr on Exclusion List
~ June 27 1996 - The commission places Peter Simone and Anthony T Civella on Exclusion List
August 28 1996 - The commission takes disciplinary action against Boyd Kansas City Inc for periodic failure to take and report turnstile readings
~ October II 1996 - The commission issues a finding of prel iminary suitability to Hilton Kansas City Corporation and Flamingo Hilton Riverboat Casino LoP
October 18 1996 - TIle commission issues a Class B riverboat gambling license 10 HUlon KlIlIStIS City Corporation and a CltlSs A riverboat gambling license 10 Flamingo Hillon Riverboat CtlSino LP
Missouri Gaming Commission 1996Annual Report - Page 19
Outline of a Background Investigation
Review Application fin Completeneiis
~ Establish number ofkey people
~ Check disclosure forms for completeness
gt Check tax release forms
City Selection Process
~ Contact city to determine how the gaming operator was selected
gt Interview Mayor and City Council members
~ Ifa steering committee was used interview members of that committee
Determine ifany city officials own stock in the selected gaming company
~ Obtain minutes ofcouncil meetings that pertain to riverboat issues (a)selection (b) resolution and (c) ordinance
gt Contact city attorney who handled negotiations with gaming company and obtain correspondence between city and gaming company
~ Contact City Economic Development Director (if applicable)
Docksite
gt- Land selected for gaming operation
J Who was it purchased from (how long have they owned the property) J Price (copy ofcontract)J Copy of plat map and legal description J Determine ifany ofcity officials or selection committee members have
ownership interest in docksite
gt Corps ofEngineers Permit
J Status
J Any concerns by Corps J Wetlands involved
~ Contact DNR for any known concerns in area
gt Check with city for any known dwnpsites with possible hazardous material
gt Developmental agreement between city and gaming operator (obtain copy from city)
gt Detennine if development is feasible
J Is support facility land based or floating J Projected nwnber ofjobs economic aid to area J Traffic flow to area - what improvements are needed - who will pay
for improvements
Riverboat
gt Locate boat and obtain all infonnation about boat (cruise schedule liability carrier)
gt Establish design ofriverboat
gt Determine emergency medical plan for boat
gt Determine ifCoast Guard and other safety requirements have been met
Gaming Operator (Public Corporation Partnership Private Company)
gt Establish contact person with operator
J Determine attorney of record for gaming company J Any missing items from application advise contact person
gt Establish home office (Financial Headquarters)
J Determine a good date and location where all key people can be contacted for a personal interview
J Where can financial record be located
Missouri Gaming Commission 1996Annual Report - Page 20
~
Outline of a Background Investigation
J Breakdown ofmanagement (corporate Board ofDirectors major stockholders)
J Establish flow chart of key people and companies owned by gaming operator
~ Investigation ofKey People will include but not be limited to the following
J Check previous employment work records J Check state local and federal intelligence files J Check for other gaming licenses ifapplicable (check with appropriate
regulators)J Check state federal and local courts for any civil litigation J Check for any arrest record J Check personal and business credit J Check state and local tax status IRS will handle federal taxes
gt Other locations ofgaming operations (currently operating and pending locations)
J Contact gaming regulators for respective locations J Travel to sites to view operations
Establish a file for all key people investigated with summaries establish a file for financial records with summary offinancial viability ofcompany and ability to complete obligations to the city and State ofMissouri Establish a file for other locations of licensure along with summary
Associated Investigations
gt All allegations of Any nature must be investigated and a file established with a written summary
~ Associated investigations must be done in a complete and thorough manner and all reports written accurately
gt Upon completion ofall investigations complete reports and summaries a separate press releasable summary must be written This summary must be approved by Gaming Commission legal staff
Missouri Gaming Commission 1996 Annual Report - Page 21
------------
--------
-----
------
---
---------
----------
Missouri Gaming Commission Compliance Audit Objectives for Licensees
ObjectiveAudit Area ~~~~~~~~~
To ensure accuracy of ticket and turnstile counts reported to MGC including compsIVlPs stayovers and promotions
Table Games
Ticketffurnstile
To ensure accuracy of AGR for table games reported to MGC
Electronic Games To ensure accuracy of AGR for electronic games reported to MGC
Cage Accowltability To ensure accuracy ofcage accountability forms and compliance with internal controls and tax reporting regulations
Observations Cage Main Bank Pit Area Slot Area Turnstile Ticketing
PurchaselRedemptions
$500 Loss Limit
Stayover Procedures
To determine that cashiers are complying with internal controls for chips tokens gaming scrip and cash
To determine compliance with MO statutes and internal controls
To determine compliance with MGC regulations and internal controls
To ensure that manual jackpot payouts are properly handled and the required tax fomIS are completed Manual Jackpot Payouts
To ensure that hopper fills are properly handled and comply with internal controls Hopper Fills
To ensure that table fills are properly handled and comply with internal cootrols Table Fills
To ensure that table credits are properly handled and comply with internal controls Table Credits
To ensure that tracking procedures comply with internal controls and the currency transactions are properly completed Patron TrackingCurrency Transaction Reporting
Imprest Bank Balancing To ensure that proper balancing and accountability is performed during a shift change
Coin Vault To ensure proper maintenance of coin chip and token inventory
Satellite CageSSlot Booths To ensure compliance with internal controls and consistency with main cage procedures
TipsGratuities To ensure compliance with MGC regulations and internal controls
Cage AccessSecurity To ensure compliance with internal controls
Turnstile To ensure accuracy of turnstile count for admissions tax calculation
Ticketing To ensure comp Hance with internal controls and proper handling of stubs voids and issuance
MiscellaneousOther
Surveillance Tapes To review activity for hard soft and tip counts and drops to verify compliance with internal controls
Workpaper Preparation and To establish standardized procedures for MGC audit workpapers and audit reports Audit Reports
-
Missouri Gaming Commission 1996 AnnualReport - Page 22
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Audit Area
Monthly Financial Statement Review
Engagement Letters
Objective --shy
To perform a preliminary review ofmonthly financial statement information for proper completion of fmandal statement templates verification ofadjusted gross receipts to MGC reports and to detect any unusual items which justifY further review when conducting on-site audit
To give advance notification to each boat of the date and scope ofaudit being performed
Financial Statement Verification To determine consistency ofmonthly financial statement information submitted to MGC with boats general ledger system
Balance Sheet Accounts
CashCash Reserve Balance
Cash Receipts
Cash Disbursements
shy -- shy
To determine the existence consistency and fair presentation of the cash balance on the monthly fmancial statements
To determine the consistency and filir presentation of the cash balance on the monthly financial statements and the source of large cash receipts other than gaming revenue
___I
To determine the consistency and fair presentation of the cash balance on the monthly fmancial statements and to trace the outflow of large cash disbursements
i
I
--
AccountslN Notes Receivable
Accrued Admission and Gaming Tax Liability
Chip and Token Liability
Progressive Jackpot Liability
To determine the consistency and fair presentation of the accounts receivable andor notes receivable balance in the monthly fmancial statements
To determine the consistency and fair presentation of the accrued admissiongaming tax liability balance in the monthly financial statements
To determine the consistency and fair presentation of the chip and token liability balance in the monthly financial statements
To determine the consistency and fair presentation of the progressive jackpot liability balance in the monthly fmancial statements
---shy
Tips and Gratuities (Accrued Liability)
Customer Deposit Liability
Accounts Payable
Income Statement Accounts
Revenne - Table Games
To determine the consistency and fair presentation of the accrued tips and gratuities liability in the monthly fmancial statements
-lt ---- shy
To determine the consistency and fair presentation of the customer deposit liabilities in the monthly fiscal statements To determine the consistency and fair presentation ofaccounts payable balance in the monthly fmancial statements
--shy
To determine the consistency and fair presentation of table games revenue as reported to MGC daily and in the monthly fmandal statements
Revenue - Electronic Games To determine the consistency and fair presentation of electronic games revenue as reported to MGC daily and in the monthly financial statements
Missouri Gaming Commission 1996 Annual Report - Page 23
------------
---------
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Revenue - Admissions To detennine the consistency and fair presentation ofadmissions revenue as reported to MGC daily and in the monthly fmancial statements
Promotional Expense To determine that comps are properly recorded as expenses and not deducted from revenue in accordance with GAAP
Pre-Opening Costs To determine whether certain pre-opening and licensing costs are properly expensed or amortized over future periods in accordance with GAAP
Workpaper Preparation and Audit Reports To establish standardized procedures for MGC audit workpapers and audit reports
AissOllri Gamillg Commission 1996 Anllual Report - Page 24
--raquo
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AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
c
Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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I IAztar Missouri Corporation
r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
~
Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
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$lot Machines 349
Brief Timeline of Riverboat Gaming in Missouri ~ May 13 1991 - General Assembly passes House Bill 149 which authorized
referendum to be submitted to the voters in the November 1992 election to determine whether the State Tourism Commission shall have the power to issue riverboat gambling licenses
gt November 31992 - Missouri voters pass referendum allowing riverboat gaming with a majority ofnearly 63
gt January 1993 - Governor Carnahan announces intentions to push legislation creating an independent Gaming Commission to oversee riverboat gambling
April 29 1993 -- SBs 10 amp 11 creating the Missouri Gaming Commission are signed into law by Governor Carnahan and five Commissioners are appointed Robert Wolfson Chairman Robert Clayton William Quinn Dr Jenice Stewart and Avis Tucker
gt April 30 1993 -- Troy Harris et al v The Missouri Gaming Commission amended petition is filed The petition challenges the constitutionality of Senate Bills 10 amp II
gt- May 17 1993 -- The Missouri Gaming Commission holds its first meeting
~ September 1 1993 -- Proposed Rules and EmergencY Rules are adopted
gt September 20 1993 - 19 riverboat gaming license applications are filed with the commission
gt September 20 1993 - Clarence E Mel Fisher hired as Deputy Director for Enforcement
gt September 24 1993 - Commission contracts with the Internal Revenue Service to perform fmancial investigations for the commission Four IRS agents are assigned to the commission
~ September 28 1993 - Commissions enters into and inter-agency agreement with the Missouri State Highway Patrol to provide enforcement services for the commission
~ October I 1993 - Debbie Ferguson joins the commission as Deputy Director for Administration
November 3 1993 - Commission hires Tom Irwin as Executive Director and Kevin Mullally as Deputy Director for Legal amp Legislative Affairs
November 30 1993 -- Commission announces that it will begin background investigations on the following companies President Riverboat Casino-Missouri St Charles Riverfront Station Inc S1 Joseph Riverboat Partners The Missouri Gaming Company GDC (Supplier) IGT (Supplier) Casino Tokens (Supplier) Paul-Son Dice amp Card Company (Supplier)
gt December 22 1993 - Governor Carnahan signs Executive Order 93-50 designating the enforcement section ofthe Missouri Gaming Commission as a criminal justice agency
1994
gt January 25 1994 -- Missouri Supreme Court in Troy Harris v Missouri Gaming Commission strikes down games of chance including slot machines The court ruled that the Commission did have the authority to issue licenses to riverboat where games ofskill are played Specifically mentioned as games ofskill are poker and blackjack The Court remanded six games to lower court for determination as to whether they are games of skill or chance baccarat craps roulette wheel klondike table faro layout and video games ofchance
~ February 1 1994 -- Rules and Regnlations become effective
February 7 1994 -- Legislature passes resolution to place constitutional amendment on the ballot which would allow the legislature to approve games of chance (slot machines) on riverboats and floating facilities on the Missouri and Mississippi Rivers
gt- April 5 1994 -- Voters defeat constitutional amendment allowing games of chance (slot machines) by an unofficial count of 1263 votes
~ April 29 1994 - Finding of Preliminary Suitability issued to President Riverboat Casino S1 Charles Riverfront Station St Joseph Riverboat Partners and The Missouri Gaming Company
Missouri Gaming Commission 1996 AnnualReport - Page 17
Brief Timeline of Riverboat Gaming in Missouri ~ May 20 1994 -- Governor signs into law SB 740 which defmes games of
chance and enacts more stringent ethics provisions The bill also allows the commission to license a barge in an artificial basin as an excursion gambling boat if it can be demonstrated that safely concerns prevent an operator from cruising from that location
~ May 27 1994 - Commission authorizes as games of skin the following Blackjack Caribbean Stud Poker Poker Double Down Stud Poker Pia Gow Poker Poker Texas Hold Em the video representations ofthese games and Craps
gt May 27 1994 -- Commission authorizes President Riverboat Casino-Missouri to operate the Admiral as a continuously docked excursion gambling boat because cruising would cause danger to the boats passengers
gt May 27 1994 -- Gaming Commission issues first two excursion gambling boat licenses to President Riverboat Casino in st Louis and St Charles Riverfront Station in st Charles
gt May 27 1994 -- Initiative petition tbat would allow voters to approve games ofchance is submitted to the Secretary of State for approval of the form ofthe petition
~ June 6 1994 -- Secretary ofState notifies referendum petitioners that the Attorney General has approved the form of their petition The Secretary of State prepared the following petition title that was approved by the Attorney General
Shall the General Assembly be authorized to permit only upon the Mississippi River and the Missouri River lotteries gift enterprises and games ofchance to be conducted on excursion gambling boats and floating facilities
gt June 9 1994 -- Commission prioritizes Aztar Missouri Corporation Boyd Kansas City Inc and Harrahs North Kansas City as companies to be investigated for licensure pursuant to 11 CSR 45-4060
gt June 22 1994 -- Gaming Commission issues licenses to St Joseph Riverboat Partners in St Joseph and The Missouri Gaming Company in Riverside
~ September 20 1994 -- Commission issues a fmding ofpreliminary suitability to Harrahs North Kansas City Corporation
gt September 20 1994 -- Commission authorizes Harrahs North Kansas City Corporation and st Charles Riverfront Stationl to operate excursion gamblillg boats as continuously docked vessels In both cases the commission found that operating a cruising vessel from the proposed site would cause danger to the boats passengers and the project will generate permanent job creation and land-based development
gt September 22 1994 -- Harrahs North Kansas City Corporation is issued an excursion gambling boat license
gt September 28 1994 - Public hearing regarding Capitol Queen and Casino Jncs application for an excursion gambling boat license results in the commission denying CQCs license and prohibiting them from reapplying for two years
gt October 7 1994 - Commission places William D Cammisano Jr and John Termini on its list of excluded persons
gt November 8 1994 -- Voters approve games ofchance
~ December 9 1994 - Games ofchance are allowed on riverboats
gt December 27 1994 - St Charles Riverfront Station is issued a license to operate the St Charles II as an excursion gambling boat This marks the fIrSt time the commission has licensed a second excursion gambling boat for a single development
The approval was for St Charles Riverfront Stations second boat The flTSt boat continued to cruise until April 16 1996
Missouri Gaming Commission 1996 Annual Report - Page 18
Brief Timeline of Riverboat Gaming in Missouri 1995
)gt- February 22 1995 -- Commission announces it will begin background investigation on Hilton Kansas City Corporation for an excursion gambling boat license
~ March 30 1995 - State Auditor releases final audit report of the Missouri Gaming Commission No major deficiencies are noted
~ April 20 1995 - Commission repays $3 million start-up loan to state general revenue fund
)gt- April 25 1995 - Commission approves continuous docking petitions for Boyd Kansas City Inc and Hilton Kansas City Corporation
~ April 25 1995 -- The commission issues a finding ofpreliminary suitability to Aztar Missouri Gaming Corporation
~ April 26 1995 -- The commission issues an excursion gambling boat license to Aztar Missouri Gaming Corporation in Caruthersville Missouri
)gt- May 24 1995 - The commission announces it will begin background investigations on the following companies Harrahs Maryland Heights Corporation Kansas City Station Inc Players Maryland Heights Inc
gt August 28 1995 - Pursuant to House Bill 574 the duties of the Missouri Horse Racing Commission are transferred to the Gaming Commission
~ September 12 1995 - The commission issues a fmding of preliminary suitability to Boyd Kansas City Inc
September 13 1995 - The commission grants the petition ofHarrahs Maryland Heights Corporation and Players Maryland Heights Inc to operate continuously docked excursion gambling boats at their joint venture in Maryland Heights
)gt- September 13 1995 - The commission issues an excursion gambling boat license to Boyd Kansas City Inc
)gtshy November 16 1995 shy The commission fines the following companies for associating with either socially or in business affairs persons with felony police records or persons with a notorious or unsavory reputation Boyd Kansas City Inc Harrahs North Kansas City Corporation The Missouri Gaming Company
1996
)gtshy February 15 1996 - The commission grants continuous docking rights to Aztar Missouri Gaming Corporation for a second boat in Caruthersville Harrahs North Kansas City for a second boat and Kansas City Station Corporation for two boats in Kansas City
~ April 16 1996 - The commission grants continuous docking rights to Argosy in Riverside Missouri S1 Joseph Riverboat Partners and 81 Charles Riverfront Station
~ May 15 1996 - The commission issues a license to Harrahs North Kansas City for the Lucky Star This is the second boat at the Harrahs North Kansas City mcility Included in the project is a 200-room hotel expanded parking and meeting space
~ June 19 1996 -- The commission places William Canunisano Jr on Exclusion List
~ June 27 1996 - The commission places Peter Simone and Anthony T Civella on Exclusion List
August 28 1996 - The commission takes disciplinary action against Boyd Kansas City Inc for periodic failure to take and report turnstile readings
~ October II 1996 - The commission issues a finding of prel iminary suitability to Hilton Kansas City Corporation and Flamingo Hilton Riverboat Casino LoP
October 18 1996 - TIle commission issues a Class B riverboat gambling license 10 HUlon KlIlIStIS City Corporation and a CltlSs A riverboat gambling license 10 Flamingo Hillon Riverboat CtlSino LP
Missouri Gaming Commission 1996Annual Report - Page 19
Outline of a Background Investigation
Review Application fin Completeneiis
~ Establish number ofkey people
~ Check disclosure forms for completeness
gt Check tax release forms
City Selection Process
~ Contact city to determine how the gaming operator was selected
gt Interview Mayor and City Council members
~ Ifa steering committee was used interview members of that committee
Determine ifany city officials own stock in the selected gaming company
~ Obtain minutes ofcouncil meetings that pertain to riverboat issues (a)selection (b) resolution and (c) ordinance
gt Contact city attorney who handled negotiations with gaming company and obtain correspondence between city and gaming company
~ Contact City Economic Development Director (if applicable)
Docksite
gt- Land selected for gaming operation
J Who was it purchased from (how long have they owned the property) J Price (copy ofcontract)J Copy of plat map and legal description J Determine ifany ofcity officials or selection committee members have
ownership interest in docksite
gt Corps ofEngineers Permit
J Status
J Any concerns by Corps J Wetlands involved
~ Contact DNR for any known concerns in area
gt Check with city for any known dwnpsites with possible hazardous material
gt Developmental agreement between city and gaming operator (obtain copy from city)
gt Detennine if development is feasible
J Is support facility land based or floating J Projected nwnber ofjobs economic aid to area J Traffic flow to area - what improvements are needed - who will pay
for improvements
Riverboat
gt Locate boat and obtain all infonnation about boat (cruise schedule liability carrier)
gt Establish design ofriverboat
gt Determine emergency medical plan for boat
gt Determine ifCoast Guard and other safety requirements have been met
Gaming Operator (Public Corporation Partnership Private Company)
gt Establish contact person with operator
J Determine attorney of record for gaming company J Any missing items from application advise contact person
gt Establish home office (Financial Headquarters)
J Determine a good date and location where all key people can be contacted for a personal interview
J Where can financial record be located
Missouri Gaming Commission 1996Annual Report - Page 20
~
Outline of a Background Investigation
J Breakdown ofmanagement (corporate Board ofDirectors major stockholders)
J Establish flow chart of key people and companies owned by gaming operator
~ Investigation ofKey People will include but not be limited to the following
J Check previous employment work records J Check state local and federal intelligence files J Check for other gaming licenses ifapplicable (check with appropriate
regulators)J Check state federal and local courts for any civil litigation J Check for any arrest record J Check personal and business credit J Check state and local tax status IRS will handle federal taxes
gt Other locations ofgaming operations (currently operating and pending locations)
J Contact gaming regulators for respective locations J Travel to sites to view operations
Establish a file for all key people investigated with summaries establish a file for financial records with summary offinancial viability ofcompany and ability to complete obligations to the city and State ofMissouri Establish a file for other locations of licensure along with summary
Associated Investigations
gt All allegations of Any nature must be investigated and a file established with a written summary
~ Associated investigations must be done in a complete and thorough manner and all reports written accurately
gt Upon completion ofall investigations complete reports and summaries a separate press releasable summary must be written This summary must be approved by Gaming Commission legal staff
Missouri Gaming Commission 1996 Annual Report - Page 21
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Missouri Gaming Commission Compliance Audit Objectives for Licensees
ObjectiveAudit Area ~~~~~~~~~
To ensure accuracy of ticket and turnstile counts reported to MGC including compsIVlPs stayovers and promotions
Table Games
Ticketffurnstile
To ensure accuracy of AGR for table games reported to MGC
Electronic Games To ensure accuracy of AGR for electronic games reported to MGC
Cage Accowltability To ensure accuracy ofcage accountability forms and compliance with internal controls and tax reporting regulations
Observations Cage Main Bank Pit Area Slot Area Turnstile Ticketing
PurchaselRedemptions
$500 Loss Limit
Stayover Procedures
To determine that cashiers are complying with internal controls for chips tokens gaming scrip and cash
To determine compliance with MO statutes and internal controls
To determine compliance with MGC regulations and internal controls
To ensure that manual jackpot payouts are properly handled and the required tax fomIS are completed Manual Jackpot Payouts
To ensure that hopper fills are properly handled and comply with internal controls Hopper Fills
To ensure that table fills are properly handled and comply with internal cootrols Table Fills
To ensure that table credits are properly handled and comply with internal controls Table Credits
To ensure that tracking procedures comply with internal controls and the currency transactions are properly completed Patron TrackingCurrency Transaction Reporting
Imprest Bank Balancing To ensure that proper balancing and accountability is performed during a shift change
Coin Vault To ensure proper maintenance of coin chip and token inventory
Satellite CageSSlot Booths To ensure compliance with internal controls and consistency with main cage procedures
TipsGratuities To ensure compliance with MGC regulations and internal controls
Cage AccessSecurity To ensure compliance with internal controls
Turnstile To ensure accuracy of turnstile count for admissions tax calculation
Ticketing To ensure comp Hance with internal controls and proper handling of stubs voids and issuance
MiscellaneousOther
Surveillance Tapes To review activity for hard soft and tip counts and drops to verify compliance with internal controls
Workpaper Preparation and To establish standardized procedures for MGC audit workpapers and audit reports Audit Reports
-
Missouri Gaming Commission 1996 AnnualReport - Page 22
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Audit Area
Monthly Financial Statement Review
Engagement Letters
Objective --shy
To perform a preliminary review ofmonthly financial statement information for proper completion of fmandal statement templates verification ofadjusted gross receipts to MGC reports and to detect any unusual items which justifY further review when conducting on-site audit
To give advance notification to each boat of the date and scope ofaudit being performed
Financial Statement Verification To determine consistency ofmonthly financial statement information submitted to MGC with boats general ledger system
Balance Sheet Accounts
CashCash Reserve Balance
Cash Receipts
Cash Disbursements
shy -- shy
To determine the existence consistency and fair presentation of the cash balance on the monthly fmancial statements
To determine the consistency and filir presentation of the cash balance on the monthly financial statements and the source of large cash receipts other than gaming revenue
___I
To determine the consistency and fair presentation of the cash balance on the monthly fmancial statements and to trace the outflow of large cash disbursements
i
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AccountslN Notes Receivable
Accrued Admission and Gaming Tax Liability
Chip and Token Liability
Progressive Jackpot Liability
To determine the consistency and fair presentation of the accounts receivable andor notes receivable balance in the monthly fmancial statements
To determine the consistency and fair presentation of the accrued admissiongaming tax liability balance in the monthly financial statements
To determine the consistency and fair presentation of the chip and token liability balance in the monthly financial statements
To determine the consistency and fair presentation of the progressive jackpot liability balance in the monthly fmancial statements
---shy
Tips and Gratuities (Accrued Liability)
Customer Deposit Liability
Accounts Payable
Income Statement Accounts
Revenne - Table Games
To determine the consistency and fair presentation of the accrued tips and gratuities liability in the monthly fmancial statements
-lt ---- shy
To determine the consistency and fair presentation of the customer deposit liabilities in the monthly fiscal statements To determine the consistency and fair presentation ofaccounts payable balance in the monthly fmancial statements
--shy
To determine the consistency and fair presentation of table games revenue as reported to MGC daily and in the monthly fmandal statements
Revenue - Electronic Games To determine the consistency and fair presentation of electronic games revenue as reported to MGC daily and in the monthly financial statements
Missouri Gaming Commission 1996 Annual Report - Page 23
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Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Revenue - Admissions To detennine the consistency and fair presentation ofadmissions revenue as reported to MGC daily and in the monthly fmancial statements
Promotional Expense To determine that comps are properly recorded as expenses and not deducted from revenue in accordance with GAAP
Pre-Opening Costs To determine whether certain pre-opening and licensing costs are properly expensed or amortized over future periods in accordance with GAAP
Workpaper Preparation and Audit Reports To establish standardized procedures for MGC audit workpapers and audit reports
AissOllri Gamillg Commission 1996 Anllual Report - Page 24
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AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
c
Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
----shy
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o
Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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I IAztar Missouri Corporation
r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
j i
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
~
Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
Brief Timeline of Riverboat Gaming in Missouri ~ May 20 1994 -- Governor signs into law SB 740 which defmes games of
chance and enacts more stringent ethics provisions The bill also allows the commission to license a barge in an artificial basin as an excursion gambling boat if it can be demonstrated that safely concerns prevent an operator from cruising from that location
~ May 27 1994 - Commission authorizes as games of skin the following Blackjack Caribbean Stud Poker Poker Double Down Stud Poker Pia Gow Poker Poker Texas Hold Em the video representations ofthese games and Craps
gt May 27 1994 -- Commission authorizes President Riverboat Casino-Missouri to operate the Admiral as a continuously docked excursion gambling boat because cruising would cause danger to the boats passengers
gt May 27 1994 -- Gaming Commission issues first two excursion gambling boat licenses to President Riverboat Casino in st Louis and St Charles Riverfront Station in st Charles
gt May 27 1994 -- Initiative petition tbat would allow voters to approve games ofchance is submitted to the Secretary of State for approval of the form ofthe petition
~ June 6 1994 -- Secretary ofState notifies referendum petitioners that the Attorney General has approved the form of their petition The Secretary of State prepared the following petition title that was approved by the Attorney General
Shall the General Assembly be authorized to permit only upon the Mississippi River and the Missouri River lotteries gift enterprises and games ofchance to be conducted on excursion gambling boats and floating facilities
gt June 9 1994 -- Commission prioritizes Aztar Missouri Corporation Boyd Kansas City Inc and Harrahs North Kansas City as companies to be investigated for licensure pursuant to 11 CSR 45-4060
gt June 22 1994 -- Gaming Commission issues licenses to St Joseph Riverboat Partners in St Joseph and The Missouri Gaming Company in Riverside
~ September 20 1994 -- Commission issues a fmding ofpreliminary suitability to Harrahs North Kansas City Corporation
gt September 20 1994 -- Commission authorizes Harrahs North Kansas City Corporation and st Charles Riverfront Stationl to operate excursion gamblillg boats as continuously docked vessels In both cases the commission found that operating a cruising vessel from the proposed site would cause danger to the boats passengers and the project will generate permanent job creation and land-based development
gt September 22 1994 -- Harrahs North Kansas City Corporation is issued an excursion gambling boat license
gt September 28 1994 - Public hearing regarding Capitol Queen and Casino Jncs application for an excursion gambling boat license results in the commission denying CQCs license and prohibiting them from reapplying for two years
gt October 7 1994 - Commission places William D Cammisano Jr and John Termini on its list of excluded persons
gt November 8 1994 -- Voters approve games ofchance
~ December 9 1994 - Games ofchance are allowed on riverboats
gt December 27 1994 - St Charles Riverfront Station is issued a license to operate the St Charles II as an excursion gambling boat This marks the fIrSt time the commission has licensed a second excursion gambling boat for a single development
The approval was for St Charles Riverfront Stations second boat The flTSt boat continued to cruise until April 16 1996
Missouri Gaming Commission 1996 Annual Report - Page 18
Brief Timeline of Riverboat Gaming in Missouri 1995
)gt- February 22 1995 -- Commission announces it will begin background investigation on Hilton Kansas City Corporation for an excursion gambling boat license
~ March 30 1995 - State Auditor releases final audit report of the Missouri Gaming Commission No major deficiencies are noted
~ April 20 1995 - Commission repays $3 million start-up loan to state general revenue fund
)gt- April 25 1995 - Commission approves continuous docking petitions for Boyd Kansas City Inc and Hilton Kansas City Corporation
~ April 25 1995 -- The commission issues a finding ofpreliminary suitability to Aztar Missouri Gaming Corporation
~ April 26 1995 -- The commission issues an excursion gambling boat license to Aztar Missouri Gaming Corporation in Caruthersville Missouri
)gt- May 24 1995 - The commission announces it will begin background investigations on the following companies Harrahs Maryland Heights Corporation Kansas City Station Inc Players Maryland Heights Inc
gt August 28 1995 - Pursuant to House Bill 574 the duties of the Missouri Horse Racing Commission are transferred to the Gaming Commission
~ September 12 1995 - The commission issues a fmding of preliminary suitability to Boyd Kansas City Inc
September 13 1995 - The commission grants the petition ofHarrahs Maryland Heights Corporation and Players Maryland Heights Inc to operate continuously docked excursion gambling boats at their joint venture in Maryland Heights
)gt- September 13 1995 - The commission issues an excursion gambling boat license to Boyd Kansas City Inc
)gtshy November 16 1995 shy The commission fines the following companies for associating with either socially or in business affairs persons with felony police records or persons with a notorious or unsavory reputation Boyd Kansas City Inc Harrahs North Kansas City Corporation The Missouri Gaming Company
1996
)gtshy February 15 1996 - The commission grants continuous docking rights to Aztar Missouri Gaming Corporation for a second boat in Caruthersville Harrahs North Kansas City for a second boat and Kansas City Station Corporation for two boats in Kansas City
~ April 16 1996 - The commission grants continuous docking rights to Argosy in Riverside Missouri S1 Joseph Riverboat Partners and 81 Charles Riverfront Station
~ May 15 1996 - The commission issues a license to Harrahs North Kansas City for the Lucky Star This is the second boat at the Harrahs North Kansas City mcility Included in the project is a 200-room hotel expanded parking and meeting space
~ June 19 1996 -- The commission places William Canunisano Jr on Exclusion List
~ June 27 1996 - The commission places Peter Simone and Anthony T Civella on Exclusion List
August 28 1996 - The commission takes disciplinary action against Boyd Kansas City Inc for periodic failure to take and report turnstile readings
~ October II 1996 - The commission issues a finding of prel iminary suitability to Hilton Kansas City Corporation and Flamingo Hilton Riverboat Casino LoP
October 18 1996 - TIle commission issues a Class B riverboat gambling license 10 HUlon KlIlIStIS City Corporation and a CltlSs A riverboat gambling license 10 Flamingo Hillon Riverboat CtlSino LP
Missouri Gaming Commission 1996Annual Report - Page 19
Outline of a Background Investigation
Review Application fin Completeneiis
~ Establish number ofkey people
~ Check disclosure forms for completeness
gt Check tax release forms
City Selection Process
~ Contact city to determine how the gaming operator was selected
gt Interview Mayor and City Council members
~ Ifa steering committee was used interview members of that committee
Determine ifany city officials own stock in the selected gaming company
~ Obtain minutes ofcouncil meetings that pertain to riverboat issues (a)selection (b) resolution and (c) ordinance
gt Contact city attorney who handled negotiations with gaming company and obtain correspondence between city and gaming company
~ Contact City Economic Development Director (if applicable)
Docksite
gt- Land selected for gaming operation
J Who was it purchased from (how long have they owned the property) J Price (copy ofcontract)J Copy of plat map and legal description J Determine ifany ofcity officials or selection committee members have
ownership interest in docksite
gt Corps ofEngineers Permit
J Status
J Any concerns by Corps J Wetlands involved
~ Contact DNR for any known concerns in area
gt Check with city for any known dwnpsites with possible hazardous material
gt Developmental agreement between city and gaming operator (obtain copy from city)
gt Detennine if development is feasible
J Is support facility land based or floating J Projected nwnber ofjobs economic aid to area J Traffic flow to area - what improvements are needed - who will pay
for improvements
Riverboat
gt Locate boat and obtain all infonnation about boat (cruise schedule liability carrier)
gt Establish design ofriverboat
gt Determine emergency medical plan for boat
gt Determine ifCoast Guard and other safety requirements have been met
Gaming Operator (Public Corporation Partnership Private Company)
gt Establish contact person with operator
J Determine attorney of record for gaming company J Any missing items from application advise contact person
gt Establish home office (Financial Headquarters)
J Determine a good date and location where all key people can be contacted for a personal interview
J Where can financial record be located
Missouri Gaming Commission 1996Annual Report - Page 20
~
Outline of a Background Investigation
J Breakdown ofmanagement (corporate Board ofDirectors major stockholders)
J Establish flow chart of key people and companies owned by gaming operator
~ Investigation ofKey People will include but not be limited to the following
J Check previous employment work records J Check state local and federal intelligence files J Check for other gaming licenses ifapplicable (check with appropriate
regulators)J Check state federal and local courts for any civil litigation J Check for any arrest record J Check personal and business credit J Check state and local tax status IRS will handle federal taxes
gt Other locations ofgaming operations (currently operating and pending locations)
J Contact gaming regulators for respective locations J Travel to sites to view operations
Establish a file for all key people investigated with summaries establish a file for financial records with summary offinancial viability ofcompany and ability to complete obligations to the city and State ofMissouri Establish a file for other locations of licensure along with summary
Associated Investigations
gt All allegations of Any nature must be investigated and a file established with a written summary
~ Associated investigations must be done in a complete and thorough manner and all reports written accurately
gt Upon completion ofall investigations complete reports and summaries a separate press releasable summary must be written This summary must be approved by Gaming Commission legal staff
Missouri Gaming Commission 1996 Annual Report - Page 21
------------
--------
-----
------
---
---------
----------
Missouri Gaming Commission Compliance Audit Objectives for Licensees
ObjectiveAudit Area ~~~~~~~~~
To ensure accuracy of ticket and turnstile counts reported to MGC including compsIVlPs stayovers and promotions
Table Games
Ticketffurnstile
To ensure accuracy of AGR for table games reported to MGC
Electronic Games To ensure accuracy of AGR for electronic games reported to MGC
Cage Accowltability To ensure accuracy ofcage accountability forms and compliance with internal controls and tax reporting regulations
Observations Cage Main Bank Pit Area Slot Area Turnstile Ticketing
PurchaselRedemptions
$500 Loss Limit
Stayover Procedures
To determine that cashiers are complying with internal controls for chips tokens gaming scrip and cash
To determine compliance with MO statutes and internal controls
To determine compliance with MGC regulations and internal controls
To ensure that manual jackpot payouts are properly handled and the required tax fomIS are completed Manual Jackpot Payouts
To ensure that hopper fills are properly handled and comply with internal controls Hopper Fills
To ensure that table fills are properly handled and comply with internal cootrols Table Fills
To ensure that table credits are properly handled and comply with internal controls Table Credits
To ensure that tracking procedures comply with internal controls and the currency transactions are properly completed Patron TrackingCurrency Transaction Reporting
Imprest Bank Balancing To ensure that proper balancing and accountability is performed during a shift change
Coin Vault To ensure proper maintenance of coin chip and token inventory
Satellite CageSSlot Booths To ensure compliance with internal controls and consistency with main cage procedures
TipsGratuities To ensure compliance with MGC regulations and internal controls
Cage AccessSecurity To ensure compliance with internal controls
Turnstile To ensure accuracy of turnstile count for admissions tax calculation
Ticketing To ensure comp Hance with internal controls and proper handling of stubs voids and issuance
MiscellaneousOther
Surveillance Tapes To review activity for hard soft and tip counts and drops to verify compliance with internal controls
Workpaper Preparation and To establish standardized procedures for MGC audit workpapers and audit reports Audit Reports
-
Missouri Gaming Commission 1996 AnnualReport - Page 22
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Audit Area
Monthly Financial Statement Review
Engagement Letters
Objective --shy
To perform a preliminary review ofmonthly financial statement information for proper completion of fmandal statement templates verification ofadjusted gross receipts to MGC reports and to detect any unusual items which justifY further review when conducting on-site audit
To give advance notification to each boat of the date and scope ofaudit being performed
Financial Statement Verification To determine consistency ofmonthly financial statement information submitted to MGC with boats general ledger system
Balance Sheet Accounts
CashCash Reserve Balance
Cash Receipts
Cash Disbursements
shy -- shy
To determine the existence consistency and fair presentation of the cash balance on the monthly fmancial statements
To determine the consistency and filir presentation of the cash balance on the monthly financial statements and the source of large cash receipts other than gaming revenue
___I
To determine the consistency and fair presentation of the cash balance on the monthly fmancial statements and to trace the outflow of large cash disbursements
i
I
--
AccountslN Notes Receivable
Accrued Admission and Gaming Tax Liability
Chip and Token Liability
Progressive Jackpot Liability
To determine the consistency and fair presentation of the accounts receivable andor notes receivable balance in the monthly fmancial statements
To determine the consistency and fair presentation of the accrued admissiongaming tax liability balance in the monthly financial statements
To determine the consistency and fair presentation of the chip and token liability balance in the monthly financial statements
To determine the consistency and fair presentation of the progressive jackpot liability balance in the monthly fmancial statements
---shy
Tips and Gratuities (Accrued Liability)
Customer Deposit Liability
Accounts Payable
Income Statement Accounts
Revenne - Table Games
To determine the consistency and fair presentation of the accrued tips and gratuities liability in the monthly fmancial statements
-lt ---- shy
To determine the consistency and fair presentation of the customer deposit liabilities in the monthly fiscal statements To determine the consistency and fair presentation ofaccounts payable balance in the monthly fmancial statements
--shy
To determine the consistency and fair presentation of table games revenue as reported to MGC daily and in the monthly fmandal statements
Revenue - Electronic Games To determine the consistency and fair presentation of electronic games revenue as reported to MGC daily and in the monthly financial statements
Missouri Gaming Commission 1996 Annual Report - Page 23
------------
---------
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Revenue - Admissions To detennine the consistency and fair presentation ofadmissions revenue as reported to MGC daily and in the monthly fmancial statements
Promotional Expense To determine that comps are properly recorded as expenses and not deducted from revenue in accordance with GAAP
Pre-Opening Costs To determine whether certain pre-opening and licensing costs are properly expensed or amortized over future periods in accordance with GAAP
Workpaper Preparation and Audit Reports To establish standardized procedures for MGC audit workpapers and audit reports
AissOllri Gamillg Commission 1996 Anllual Report - Page 24
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AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
c
Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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I IAztar Missouri Corporation
r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
~
Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
Brief Timeline of Riverboat Gaming in Missouri 1995
)gt- February 22 1995 -- Commission announces it will begin background investigation on Hilton Kansas City Corporation for an excursion gambling boat license
~ March 30 1995 - State Auditor releases final audit report of the Missouri Gaming Commission No major deficiencies are noted
~ April 20 1995 - Commission repays $3 million start-up loan to state general revenue fund
)gt- April 25 1995 - Commission approves continuous docking petitions for Boyd Kansas City Inc and Hilton Kansas City Corporation
~ April 25 1995 -- The commission issues a finding ofpreliminary suitability to Aztar Missouri Gaming Corporation
~ April 26 1995 -- The commission issues an excursion gambling boat license to Aztar Missouri Gaming Corporation in Caruthersville Missouri
)gt- May 24 1995 - The commission announces it will begin background investigations on the following companies Harrahs Maryland Heights Corporation Kansas City Station Inc Players Maryland Heights Inc
gt August 28 1995 - Pursuant to House Bill 574 the duties of the Missouri Horse Racing Commission are transferred to the Gaming Commission
~ September 12 1995 - The commission issues a fmding of preliminary suitability to Boyd Kansas City Inc
September 13 1995 - The commission grants the petition ofHarrahs Maryland Heights Corporation and Players Maryland Heights Inc to operate continuously docked excursion gambling boats at their joint venture in Maryland Heights
)gt- September 13 1995 - The commission issues an excursion gambling boat license to Boyd Kansas City Inc
)gtshy November 16 1995 shy The commission fines the following companies for associating with either socially or in business affairs persons with felony police records or persons with a notorious or unsavory reputation Boyd Kansas City Inc Harrahs North Kansas City Corporation The Missouri Gaming Company
1996
)gtshy February 15 1996 - The commission grants continuous docking rights to Aztar Missouri Gaming Corporation for a second boat in Caruthersville Harrahs North Kansas City for a second boat and Kansas City Station Corporation for two boats in Kansas City
~ April 16 1996 - The commission grants continuous docking rights to Argosy in Riverside Missouri S1 Joseph Riverboat Partners and 81 Charles Riverfront Station
~ May 15 1996 - The commission issues a license to Harrahs North Kansas City for the Lucky Star This is the second boat at the Harrahs North Kansas City mcility Included in the project is a 200-room hotel expanded parking and meeting space
~ June 19 1996 -- The commission places William Canunisano Jr on Exclusion List
~ June 27 1996 - The commission places Peter Simone and Anthony T Civella on Exclusion List
August 28 1996 - The commission takes disciplinary action against Boyd Kansas City Inc for periodic failure to take and report turnstile readings
~ October II 1996 - The commission issues a finding of prel iminary suitability to Hilton Kansas City Corporation and Flamingo Hilton Riverboat Casino LoP
October 18 1996 - TIle commission issues a Class B riverboat gambling license 10 HUlon KlIlIStIS City Corporation and a CltlSs A riverboat gambling license 10 Flamingo Hillon Riverboat CtlSino LP
Missouri Gaming Commission 1996Annual Report - Page 19
Outline of a Background Investigation
Review Application fin Completeneiis
~ Establish number ofkey people
~ Check disclosure forms for completeness
gt Check tax release forms
City Selection Process
~ Contact city to determine how the gaming operator was selected
gt Interview Mayor and City Council members
~ Ifa steering committee was used interview members of that committee
Determine ifany city officials own stock in the selected gaming company
~ Obtain minutes ofcouncil meetings that pertain to riverboat issues (a)selection (b) resolution and (c) ordinance
gt Contact city attorney who handled negotiations with gaming company and obtain correspondence between city and gaming company
~ Contact City Economic Development Director (if applicable)
Docksite
gt- Land selected for gaming operation
J Who was it purchased from (how long have they owned the property) J Price (copy ofcontract)J Copy of plat map and legal description J Determine ifany ofcity officials or selection committee members have
ownership interest in docksite
gt Corps ofEngineers Permit
J Status
J Any concerns by Corps J Wetlands involved
~ Contact DNR for any known concerns in area
gt Check with city for any known dwnpsites with possible hazardous material
gt Developmental agreement between city and gaming operator (obtain copy from city)
gt Detennine if development is feasible
J Is support facility land based or floating J Projected nwnber ofjobs economic aid to area J Traffic flow to area - what improvements are needed - who will pay
for improvements
Riverboat
gt Locate boat and obtain all infonnation about boat (cruise schedule liability carrier)
gt Establish design ofriverboat
gt Determine emergency medical plan for boat
gt Determine ifCoast Guard and other safety requirements have been met
Gaming Operator (Public Corporation Partnership Private Company)
gt Establish contact person with operator
J Determine attorney of record for gaming company J Any missing items from application advise contact person
gt Establish home office (Financial Headquarters)
J Determine a good date and location where all key people can be contacted for a personal interview
J Where can financial record be located
Missouri Gaming Commission 1996Annual Report - Page 20
~
Outline of a Background Investigation
J Breakdown ofmanagement (corporate Board ofDirectors major stockholders)
J Establish flow chart of key people and companies owned by gaming operator
~ Investigation ofKey People will include but not be limited to the following
J Check previous employment work records J Check state local and federal intelligence files J Check for other gaming licenses ifapplicable (check with appropriate
regulators)J Check state federal and local courts for any civil litigation J Check for any arrest record J Check personal and business credit J Check state and local tax status IRS will handle federal taxes
gt Other locations ofgaming operations (currently operating and pending locations)
J Contact gaming regulators for respective locations J Travel to sites to view operations
Establish a file for all key people investigated with summaries establish a file for financial records with summary offinancial viability ofcompany and ability to complete obligations to the city and State ofMissouri Establish a file for other locations of licensure along with summary
Associated Investigations
gt All allegations of Any nature must be investigated and a file established with a written summary
~ Associated investigations must be done in a complete and thorough manner and all reports written accurately
gt Upon completion ofall investigations complete reports and summaries a separate press releasable summary must be written This summary must be approved by Gaming Commission legal staff
Missouri Gaming Commission 1996 Annual Report - Page 21
------------
--------
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----------
Missouri Gaming Commission Compliance Audit Objectives for Licensees
ObjectiveAudit Area ~~~~~~~~~
To ensure accuracy of ticket and turnstile counts reported to MGC including compsIVlPs stayovers and promotions
Table Games
Ticketffurnstile
To ensure accuracy of AGR for table games reported to MGC
Electronic Games To ensure accuracy of AGR for electronic games reported to MGC
Cage Accowltability To ensure accuracy ofcage accountability forms and compliance with internal controls and tax reporting regulations
Observations Cage Main Bank Pit Area Slot Area Turnstile Ticketing
PurchaselRedemptions
$500 Loss Limit
Stayover Procedures
To determine that cashiers are complying with internal controls for chips tokens gaming scrip and cash
To determine compliance with MO statutes and internal controls
To determine compliance with MGC regulations and internal controls
To ensure that manual jackpot payouts are properly handled and the required tax fomIS are completed Manual Jackpot Payouts
To ensure that hopper fills are properly handled and comply with internal controls Hopper Fills
To ensure that table fills are properly handled and comply with internal cootrols Table Fills
To ensure that table credits are properly handled and comply with internal controls Table Credits
To ensure that tracking procedures comply with internal controls and the currency transactions are properly completed Patron TrackingCurrency Transaction Reporting
Imprest Bank Balancing To ensure that proper balancing and accountability is performed during a shift change
Coin Vault To ensure proper maintenance of coin chip and token inventory
Satellite CageSSlot Booths To ensure compliance with internal controls and consistency with main cage procedures
TipsGratuities To ensure compliance with MGC regulations and internal controls
Cage AccessSecurity To ensure compliance with internal controls
Turnstile To ensure accuracy of turnstile count for admissions tax calculation
Ticketing To ensure comp Hance with internal controls and proper handling of stubs voids and issuance
MiscellaneousOther
Surveillance Tapes To review activity for hard soft and tip counts and drops to verify compliance with internal controls
Workpaper Preparation and To establish standardized procedures for MGC audit workpapers and audit reports Audit Reports
-
Missouri Gaming Commission 1996 AnnualReport - Page 22
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Audit Area
Monthly Financial Statement Review
Engagement Letters
Objective --shy
To perform a preliminary review ofmonthly financial statement information for proper completion of fmandal statement templates verification ofadjusted gross receipts to MGC reports and to detect any unusual items which justifY further review when conducting on-site audit
To give advance notification to each boat of the date and scope ofaudit being performed
Financial Statement Verification To determine consistency ofmonthly financial statement information submitted to MGC with boats general ledger system
Balance Sheet Accounts
CashCash Reserve Balance
Cash Receipts
Cash Disbursements
shy -- shy
To determine the existence consistency and fair presentation of the cash balance on the monthly fmancial statements
To determine the consistency and filir presentation of the cash balance on the monthly financial statements and the source of large cash receipts other than gaming revenue
___I
To determine the consistency and fair presentation of the cash balance on the monthly fmancial statements and to trace the outflow of large cash disbursements
i
I
--
AccountslN Notes Receivable
Accrued Admission and Gaming Tax Liability
Chip and Token Liability
Progressive Jackpot Liability
To determine the consistency and fair presentation of the accounts receivable andor notes receivable balance in the monthly fmancial statements
To determine the consistency and fair presentation of the accrued admissiongaming tax liability balance in the monthly financial statements
To determine the consistency and fair presentation of the chip and token liability balance in the monthly financial statements
To determine the consistency and fair presentation of the progressive jackpot liability balance in the monthly fmancial statements
---shy
Tips and Gratuities (Accrued Liability)
Customer Deposit Liability
Accounts Payable
Income Statement Accounts
Revenne - Table Games
To determine the consistency and fair presentation of the accrued tips and gratuities liability in the monthly fmancial statements
-lt ---- shy
To determine the consistency and fair presentation of the customer deposit liabilities in the monthly fiscal statements To determine the consistency and fair presentation ofaccounts payable balance in the monthly fmancial statements
--shy
To determine the consistency and fair presentation of table games revenue as reported to MGC daily and in the monthly fmandal statements
Revenue - Electronic Games To determine the consistency and fair presentation of electronic games revenue as reported to MGC daily and in the monthly financial statements
Missouri Gaming Commission 1996 Annual Report - Page 23
------------
---------
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Revenue - Admissions To detennine the consistency and fair presentation ofadmissions revenue as reported to MGC daily and in the monthly fmancial statements
Promotional Expense To determine that comps are properly recorded as expenses and not deducted from revenue in accordance with GAAP
Pre-Opening Costs To determine whether certain pre-opening and licensing costs are properly expensed or amortized over future periods in accordance with GAAP
Workpaper Preparation and Audit Reports To establish standardized procedures for MGC audit workpapers and audit reports
AissOllri Gamillg Commission 1996 Anllual Report - Page 24
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AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
c
Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
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I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
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rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
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10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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I IAztar Missouri Corporation
r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
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Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
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gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
Outline of a Background Investigation
Review Application fin Completeneiis
~ Establish number ofkey people
~ Check disclosure forms for completeness
gt Check tax release forms
City Selection Process
~ Contact city to determine how the gaming operator was selected
gt Interview Mayor and City Council members
~ Ifa steering committee was used interview members of that committee
Determine ifany city officials own stock in the selected gaming company
~ Obtain minutes ofcouncil meetings that pertain to riverboat issues (a)selection (b) resolution and (c) ordinance
gt Contact city attorney who handled negotiations with gaming company and obtain correspondence between city and gaming company
~ Contact City Economic Development Director (if applicable)
Docksite
gt- Land selected for gaming operation
J Who was it purchased from (how long have they owned the property) J Price (copy ofcontract)J Copy of plat map and legal description J Determine ifany ofcity officials or selection committee members have
ownership interest in docksite
gt Corps ofEngineers Permit
J Status
J Any concerns by Corps J Wetlands involved
~ Contact DNR for any known concerns in area
gt Check with city for any known dwnpsites with possible hazardous material
gt Developmental agreement between city and gaming operator (obtain copy from city)
gt Detennine if development is feasible
J Is support facility land based or floating J Projected nwnber ofjobs economic aid to area J Traffic flow to area - what improvements are needed - who will pay
for improvements
Riverboat
gt Locate boat and obtain all infonnation about boat (cruise schedule liability carrier)
gt Establish design ofriverboat
gt Determine emergency medical plan for boat
gt Determine ifCoast Guard and other safety requirements have been met
Gaming Operator (Public Corporation Partnership Private Company)
gt Establish contact person with operator
J Determine attorney of record for gaming company J Any missing items from application advise contact person
gt Establish home office (Financial Headquarters)
J Determine a good date and location where all key people can be contacted for a personal interview
J Where can financial record be located
Missouri Gaming Commission 1996Annual Report - Page 20
~
Outline of a Background Investigation
J Breakdown ofmanagement (corporate Board ofDirectors major stockholders)
J Establish flow chart of key people and companies owned by gaming operator
~ Investigation ofKey People will include but not be limited to the following
J Check previous employment work records J Check state local and federal intelligence files J Check for other gaming licenses ifapplicable (check with appropriate
regulators)J Check state federal and local courts for any civil litigation J Check for any arrest record J Check personal and business credit J Check state and local tax status IRS will handle federal taxes
gt Other locations ofgaming operations (currently operating and pending locations)
J Contact gaming regulators for respective locations J Travel to sites to view operations
Establish a file for all key people investigated with summaries establish a file for financial records with summary offinancial viability ofcompany and ability to complete obligations to the city and State ofMissouri Establish a file for other locations of licensure along with summary
Associated Investigations
gt All allegations of Any nature must be investigated and a file established with a written summary
~ Associated investigations must be done in a complete and thorough manner and all reports written accurately
gt Upon completion ofall investigations complete reports and summaries a separate press releasable summary must be written This summary must be approved by Gaming Commission legal staff
Missouri Gaming Commission 1996 Annual Report - Page 21
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Missouri Gaming Commission Compliance Audit Objectives for Licensees
ObjectiveAudit Area ~~~~~~~~~
To ensure accuracy of ticket and turnstile counts reported to MGC including compsIVlPs stayovers and promotions
Table Games
Ticketffurnstile
To ensure accuracy of AGR for table games reported to MGC
Electronic Games To ensure accuracy of AGR for electronic games reported to MGC
Cage Accowltability To ensure accuracy ofcage accountability forms and compliance with internal controls and tax reporting regulations
Observations Cage Main Bank Pit Area Slot Area Turnstile Ticketing
PurchaselRedemptions
$500 Loss Limit
Stayover Procedures
To determine that cashiers are complying with internal controls for chips tokens gaming scrip and cash
To determine compliance with MO statutes and internal controls
To determine compliance with MGC regulations and internal controls
To ensure that manual jackpot payouts are properly handled and the required tax fomIS are completed Manual Jackpot Payouts
To ensure that hopper fills are properly handled and comply with internal controls Hopper Fills
To ensure that table fills are properly handled and comply with internal cootrols Table Fills
To ensure that table credits are properly handled and comply with internal controls Table Credits
To ensure that tracking procedures comply with internal controls and the currency transactions are properly completed Patron TrackingCurrency Transaction Reporting
Imprest Bank Balancing To ensure that proper balancing and accountability is performed during a shift change
Coin Vault To ensure proper maintenance of coin chip and token inventory
Satellite CageSSlot Booths To ensure compliance with internal controls and consistency with main cage procedures
TipsGratuities To ensure compliance with MGC regulations and internal controls
Cage AccessSecurity To ensure compliance with internal controls
Turnstile To ensure accuracy of turnstile count for admissions tax calculation
Ticketing To ensure comp Hance with internal controls and proper handling of stubs voids and issuance
MiscellaneousOther
Surveillance Tapes To review activity for hard soft and tip counts and drops to verify compliance with internal controls
Workpaper Preparation and To establish standardized procedures for MGC audit workpapers and audit reports Audit Reports
-
Missouri Gaming Commission 1996 AnnualReport - Page 22
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Audit Area
Monthly Financial Statement Review
Engagement Letters
Objective --shy
To perform a preliminary review ofmonthly financial statement information for proper completion of fmandal statement templates verification ofadjusted gross receipts to MGC reports and to detect any unusual items which justifY further review when conducting on-site audit
To give advance notification to each boat of the date and scope ofaudit being performed
Financial Statement Verification To determine consistency ofmonthly financial statement information submitted to MGC with boats general ledger system
Balance Sheet Accounts
CashCash Reserve Balance
Cash Receipts
Cash Disbursements
shy -- shy
To determine the existence consistency and fair presentation of the cash balance on the monthly fmancial statements
To determine the consistency and filir presentation of the cash balance on the monthly financial statements and the source of large cash receipts other than gaming revenue
___I
To determine the consistency and fair presentation of the cash balance on the monthly fmancial statements and to trace the outflow of large cash disbursements
i
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--
AccountslN Notes Receivable
Accrued Admission and Gaming Tax Liability
Chip and Token Liability
Progressive Jackpot Liability
To determine the consistency and fair presentation of the accounts receivable andor notes receivable balance in the monthly fmancial statements
To determine the consistency and fair presentation of the accrued admissiongaming tax liability balance in the monthly financial statements
To determine the consistency and fair presentation of the chip and token liability balance in the monthly financial statements
To determine the consistency and fair presentation of the progressive jackpot liability balance in the monthly fmancial statements
---shy
Tips and Gratuities (Accrued Liability)
Customer Deposit Liability
Accounts Payable
Income Statement Accounts
Revenne - Table Games
To determine the consistency and fair presentation of the accrued tips and gratuities liability in the monthly fmancial statements
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To determine the consistency and fair presentation of the customer deposit liabilities in the monthly fiscal statements To determine the consistency and fair presentation ofaccounts payable balance in the monthly fmancial statements
--shy
To determine the consistency and fair presentation of table games revenue as reported to MGC daily and in the monthly fmandal statements
Revenue - Electronic Games To determine the consistency and fair presentation of electronic games revenue as reported to MGC daily and in the monthly financial statements
Missouri Gaming Commission 1996 Annual Report - Page 23
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Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Revenue - Admissions To detennine the consistency and fair presentation ofadmissions revenue as reported to MGC daily and in the monthly fmancial statements
Promotional Expense To determine that comps are properly recorded as expenses and not deducted from revenue in accordance with GAAP
Pre-Opening Costs To determine whether certain pre-opening and licensing costs are properly expensed or amortized over future periods in accordance with GAAP
Workpaper Preparation and Audit Reports To establish standardized procedures for MGC audit workpapers and audit reports
AissOllri Gamillg Commission 1996 Anllual Report - Page 24
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AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
c
Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
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Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
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$lot Machines 349
Outline of a Background Investigation
J Breakdown ofmanagement (corporate Board ofDirectors major stockholders)
J Establish flow chart of key people and companies owned by gaming operator
~ Investigation ofKey People will include but not be limited to the following
J Check previous employment work records J Check state local and federal intelligence files J Check for other gaming licenses ifapplicable (check with appropriate
regulators)J Check state federal and local courts for any civil litigation J Check for any arrest record J Check personal and business credit J Check state and local tax status IRS will handle federal taxes
gt Other locations ofgaming operations (currently operating and pending locations)
J Contact gaming regulators for respective locations J Travel to sites to view operations
Establish a file for all key people investigated with summaries establish a file for financial records with summary offinancial viability ofcompany and ability to complete obligations to the city and State ofMissouri Establish a file for other locations of licensure along with summary
Associated Investigations
gt All allegations of Any nature must be investigated and a file established with a written summary
~ Associated investigations must be done in a complete and thorough manner and all reports written accurately
gt Upon completion ofall investigations complete reports and summaries a separate press releasable summary must be written This summary must be approved by Gaming Commission legal staff
Missouri Gaming Commission 1996 Annual Report - Page 21
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Missouri Gaming Commission Compliance Audit Objectives for Licensees
ObjectiveAudit Area ~~~~~~~~~
To ensure accuracy of ticket and turnstile counts reported to MGC including compsIVlPs stayovers and promotions
Table Games
Ticketffurnstile
To ensure accuracy of AGR for table games reported to MGC
Electronic Games To ensure accuracy of AGR for electronic games reported to MGC
Cage Accowltability To ensure accuracy ofcage accountability forms and compliance with internal controls and tax reporting regulations
Observations Cage Main Bank Pit Area Slot Area Turnstile Ticketing
PurchaselRedemptions
$500 Loss Limit
Stayover Procedures
To determine that cashiers are complying with internal controls for chips tokens gaming scrip and cash
To determine compliance with MO statutes and internal controls
To determine compliance with MGC regulations and internal controls
To ensure that manual jackpot payouts are properly handled and the required tax fomIS are completed Manual Jackpot Payouts
To ensure that hopper fills are properly handled and comply with internal controls Hopper Fills
To ensure that table fills are properly handled and comply with internal cootrols Table Fills
To ensure that table credits are properly handled and comply with internal controls Table Credits
To ensure that tracking procedures comply with internal controls and the currency transactions are properly completed Patron TrackingCurrency Transaction Reporting
Imprest Bank Balancing To ensure that proper balancing and accountability is performed during a shift change
Coin Vault To ensure proper maintenance of coin chip and token inventory
Satellite CageSSlot Booths To ensure compliance with internal controls and consistency with main cage procedures
TipsGratuities To ensure compliance with MGC regulations and internal controls
Cage AccessSecurity To ensure compliance with internal controls
Turnstile To ensure accuracy of turnstile count for admissions tax calculation
Ticketing To ensure comp Hance with internal controls and proper handling of stubs voids and issuance
MiscellaneousOther
Surveillance Tapes To review activity for hard soft and tip counts and drops to verify compliance with internal controls
Workpaper Preparation and To establish standardized procedures for MGC audit workpapers and audit reports Audit Reports
-
Missouri Gaming Commission 1996 AnnualReport - Page 22
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Audit Area
Monthly Financial Statement Review
Engagement Letters
Objective --shy
To perform a preliminary review ofmonthly financial statement information for proper completion of fmandal statement templates verification ofadjusted gross receipts to MGC reports and to detect any unusual items which justifY further review when conducting on-site audit
To give advance notification to each boat of the date and scope ofaudit being performed
Financial Statement Verification To determine consistency ofmonthly financial statement information submitted to MGC with boats general ledger system
Balance Sheet Accounts
CashCash Reserve Balance
Cash Receipts
Cash Disbursements
shy -- shy
To determine the existence consistency and fair presentation of the cash balance on the monthly fmancial statements
To determine the consistency and filir presentation of the cash balance on the monthly financial statements and the source of large cash receipts other than gaming revenue
___I
To determine the consistency and fair presentation of the cash balance on the monthly fmancial statements and to trace the outflow of large cash disbursements
i
I
--
AccountslN Notes Receivable
Accrued Admission and Gaming Tax Liability
Chip and Token Liability
Progressive Jackpot Liability
To determine the consistency and fair presentation of the accounts receivable andor notes receivable balance in the monthly fmancial statements
To determine the consistency and fair presentation of the accrued admissiongaming tax liability balance in the monthly financial statements
To determine the consistency and fair presentation of the chip and token liability balance in the monthly financial statements
To determine the consistency and fair presentation of the progressive jackpot liability balance in the monthly fmancial statements
---shy
Tips and Gratuities (Accrued Liability)
Customer Deposit Liability
Accounts Payable
Income Statement Accounts
Revenne - Table Games
To determine the consistency and fair presentation of the accrued tips and gratuities liability in the monthly fmancial statements
-lt ---- shy
To determine the consistency and fair presentation of the customer deposit liabilities in the monthly fiscal statements To determine the consistency and fair presentation ofaccounts payable balance in the monthly fmancial statements
--shy
To determine the consistency and fair presentation of table games revenue as reported to MGC daily and in the monthly fmandal statements
Revenue - Electronic Games To determine the consistency and fair presentation of electronic games revenue as reported to MGC daily and in the monthly financial statements
Missouri Gaming Commission 1996 Annual Report - Page 23
------------
---------
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Revenue - Admissions To detennine the consistency and fair presentation ofadmissions revenue as reported to MGC daily and in the monthly fmancial statements
Promotional Expense To determine that comps are properly recorded as expenses and not deducted from revenue in accordance with GAAP
Pre-Opening Costs To determine whether certain pre-opening and licensing costs are properly expensed or amortized over future periods in accordance with GAAP
Workpaper Preparation and Audit Reports To establish standardized procedures for MGC audit workpapers and audit reports
AissOllri Gamillg Commission 1996 Anllual Report - Page 24
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AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
c
Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
----shy
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o
Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
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Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
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gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
------------
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Missouri Gaming Commission Compliance Audit Objectives for Licensees
ObjectiveAudit Area ~~~~~~~~~
To ensure accuracy of ticket and turnstile counts reported to MGC including compsIVlPs stayovers and promotions
Table Games
Ticketffurnstile
To ensure accuracy of AGR for table games reported to MGC
Electronic Games To ensure accuracy of AGR for electronic games reported to MGC
Cage Accowltability To ensure accuracy ofcage accountability forms and compliance with internal controls and tax reporting regulations
Observations Cage Main Bank Pit Area Slot Area Turnstile Ticketing
PurchaselRedemptions
$500 Loss Limit
Stayover Procedures
To determine that cashiers are complying with internal controls for chips tokens gaming scrip and cash
To determine compliance with MO statutes and internal controls
To determine compliance with MGC regulations and internal controls
To ensure that manual jackpot payouts are properly handled and the required tax fomIS are completed Manual Jackpot Payouts
To ensure that hopper fills are properly handled and comply with internal controls Hopper Fills
To ensure that table fills are properly handled and comply with internal cootrols Table Fills
To ensure that table credits are properly handled and comply with internal controls Table Credits
To ensure that tracking procedures comply with internal controls and the currency transactions are properly completed Patron TrackingCurrency Transaction Reporting
Imprest Bank Balancing To ensure that proper balancing and accountability is performed during a shift change
Coin Vault To ensure proper maintenance of coin chip and token inventory
Satellite CageSSlot Booths To ensure compliance with internal controls and consistency with main cage procedures
TipsGratuities To ensure compliance with MGC regulations and internal controls
Cage AccessSecurity To ensure compliance with internal controls
Turnstile To ensure accuracy of turnstile count for admissions tax calculation
Ticketing To ensure comp Hance with internal controls and proper handling of stubs voids and issuance
MiscellaneousOther
Surveillance Tapes To review activity for hard soft and tip counts and drops to verify compliance with internal controls
Workpaper Preparation and To establish standardized procedures for MGC audit workpapers and audit reports Audit Reports
-
Missouri Gaming Commission 1996 AnnualReport - Page 22
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Audit Area
Monthly Financial Statement Review
Engagement Letters
Objective --shy
To perform a preliminary review ofmonthly financial statement information for proper completion of fmandal statement templates verification ofadjusted gross receipts to MGC reports and to detect any unusual items which justifY further review when conducting on-site audit
To give advance notification to each boat of the date and scope ofaudit being performed
Financial Statement Verification To determine consistency ofmonthly financial statement information submitted to MGC with boats general ledger system
Balance Sheet Accounts
CashCash Reserve Balance
Cash Receipts
Cash Disbursements
shy -- shy
To determine the existence consistency and fair presentation of the cash balance on the monthly fmancial statements
To determine the consistency and filir presentation of the cash balance on the monthly financial statements and the source of large cash receipts other than gaming revenue
___I
To determine the consistency and fair presentation of the cash balance on the monthly fmancial statements and to trace the outflow of large cash disbursements
i
I
--
AccountslN Notes Receivable
Accrued Admission and Gaming Tax Liability
Chip and Token Liability
Progressive Jackpot Liability
To determine the consistency and fair presentation of the accounts receivable andor notes receivable balance in the monthly fmancial statements
To determine the consistency and fair presentation of the accrued admissiongaming tax liability balance in the monthly financial statements
To determine the consistency and fair presentation of the chip and token liability balance in the monthly financial statements
To determine the consistency and fair presentation of the progressive jackpot liability balance in the monthly fmancial statements
---shy
Tips and Gratuities (Accrued Liability)
Customer Deposit Liability
Accounts Payable
Income Statement Accounts
Revenne - Table Games
To determine the consistency and fair presentation of the accrued tips and gratuities liability in the monthly fmancial statements
-lt ---- shy
To determine the consistency and fair presentation of the customer deposit liabilities in the monthly fiscal statements To determine the consistency and fair presentation ofaccounts payable balance in the monthly fmancial statements
--shy
To determine the consistency and fair presentation of table games revenue as reported to MGC daily and in the monthly fmandal statements
Revenue - Electronic Games To determine the consistency and fair presentation of electronic games revenue as reported to MGC daily and in the monthly financial statements
Missouri Gaming Commission 1996 Annual Report - Page 23
------------
---------
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Revenue - Admissions To detennine the consistency and fair presentation ofadmissions revenue as reported to MGC daily and in the monthly fmancial statements
Promotional Expense To determine that comps are properly recorded as expenses and not deducted from revenue in accordance with GAAP
Pre-Opening Costs To determine whether certain pre-opening and licensing costs are properly expensed or amortized over future periods in accordance with GAAP
Workpaper Preparation and Audit Reports To establish standardized procedures for MGC audit workpapers and audit reports
AissOllri Gamillg Commission 1996 Anllual Report - Page 24
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AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
c
Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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I IAztar Missouri Corporation
r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
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Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Audit Area
Monthly Financial Statement Review
Engagement Letters
Objective --shy
To perform a preliminary review ofmonthly financial statement information for proper completion of fmandal statement templates verification ofadjusted gross receipts to MGC reports and to detect any unusual items which justifY further review when conducting on-site audit
To give advance notification to each boat of the date and scope ofaudit being performed
Financial Statement Verification To determine consistency ofmonthly financial statement information submitted to MGC with boats general ledger system
Balance Sheet Accounts
CashCash Reserve Balance
Cash Receipts
Cash Disbursements
shy -- shy
To determine the existence consistency and fair presentation of the cash balance on the monthly fmancial statements
To determine the consistency and filir presentation of the cash balance on the monthly financial statements and the source of large cash receipts other than gaming revenue
___I
To determine the consistency and fair presentation of the cash balance on the monthly fmancial statements and to trace the outflow of large cash disbursements
i
I
--
AccountslN Notes Receivable
Accrued Admission and Gaming Tax Liability
Chip and Token Liability
Progressive Jackpot Liability
To determine the consistency and fair presentation of the accounts receivable andor notes receivable balance in the monthly fmancial statements
To determine the consistency and fair presentation of the accrued admissiongaming tax liability balance in the monthly financial statements
To determine the consistency and fair presentation of the chip and token liability balance in the monthly financial statements
To determine the consistency and fair presentation of the progressive jackpot liability balance in the monthly fmancial statements
---shy
Tips and Gratuities (Accrued Liability)
Customer Deposit Liability
Accounts Payable
Income Statement Accounts
Revenne - Table Games
To determine the consistency and fair presentation of the accrued tips and gratuities liability in the monthly fmancial statements
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To determine the consistency and fair presentation of the customer deposit liabilities in the monthly fiscal statements To determine the consistency and fair presentation ofaccounts payable balance in the monthly fmancial statements
--shy
To determine the consistency and fair presentation of table games revenue as reported to MGC daily and in the monthly fmandal statements
Revenue - Electronic Games To determine the consistency and fair presentation of electronic games revenue as reported to MGC daily and in the monthly financial statements
Missouri Gaming Commission 1996 Annual Report - Page 23
------------
---------
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Revenue - Admissions To detennine the consistency and fair presentation ofadmissions revenue as reported to MGC daily and in the monthly fmancial statements
Promotional Expense To determine that comps are properly recorded as expenses and not deducted from revenue in accordance with GAAP
Pre-Opening Costs To determine whether certain pre-opening and licensing costs are properly expensed or amortized over future periods in accordance with GAAP
Workpaper Preparation and Audit Reports To establish standardized procedures for MGC audit workpapers and audit reports
AissOllri Gamillg Commission 1996 Anllual Report - Page 24
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AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
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Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
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~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
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~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
------------
---------
Missouri Gaming Commission Semi-Annual Financial Audit Objectives for Licensees
Revenue - Admissions To detennine the consistency and fair presentation ofadmissions revenue as reported to MGC daily and in the monthly fmancial statements
Promotional Expense To determine that comps are properly recorded as expenses and not deducted from revenue in accordance with GAAP
Pre-Opening Costs To determine whether certain pre-opening and licensing costs are properly expensed or amortized over future periods in accordance with GAAP
Workpaper Preparation and Audit Reports To establish standardized procedures for MGC audit workpapers and audit reports
AissOllri Gamillg Commission 1996 Anllual Report - Page 24
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AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
c
Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
----shy
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o
Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
j i
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
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Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
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AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
c
Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
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ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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I IAztar Missouri Corporation
r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
~
Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
AROGSY RIVERSIDE CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
5569796 3952937 4340064 3155461 4019051 2896091 5072086 2642929 6646054 3131076 7060288 3054165 7277275 2868629 7464955 2924611 7370780 2743438
Fiscal Year Ended June 30 1996
yent~d~f~~~IFiTTAI7 JUI-95 7517957 2473575
Mar-OO 8363429 2623687 1
Apr-96 I 8044985 2585832 May-96 7246000 2254593 Jun-96 1 6598201 1983280
- iii-EL78770498amiddot2821s820
7097 7271 7206 5605 4711 4326 3942 3907 3722
3137 3214 3111 3006
lt
1616860 2903 1164603 i 2729
1122960 1 2794 2229157 4395 3514978 5289 4006123 5674 4408645 6058 4560343 6093 4627342 6278
i~cm~middotXikikfl~~ O~ 6710 6698 6693 6655 6717 6647 6892 6764 6863 6786 6889 6994
S9l-28162 r ~671So
177635 136613 133330 184526 226934 244881 253449 239045 259045
173374 133933 127022 155436 171191 184877 156841 165232 149997
139987 1
146014 143118 136147 127750 128913 111539 141295 145923 148611 121215 110182
17497 18132 17738 16585 16287 15651 15024 1
18745 19388 19055 16863 16108
Aug-95 7813226 2580067 Sep-95 7401526 2447319 Ocl-95 7192284 2405716
Nov-95I 6771690 2222842 Dec-95 I 69124441 2317863 Jan-96 6453260 2005465 Feb-OOI 73890191 2376581
3290 3302 3307 3345 3283 3353 3108 3216
5044382 5233159 4954206 4786568 4548848 4594581 4447795 5012438 5739743 5459154 4992367 4614921
Fiscal Year 1997 (July thru December 1996)
GRAND TOTALS ~il31ttiiiH13i393i2i5i~middotgt 38401-middotmiddot 119t6$ii id 6200ifUi1ii96L gt25821 j gt c i il
bullbull December 1994 figures refiect the first month of operations with legalized slot machines
CASINO AlTAR PERFORMANCE SUMMARY
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Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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I IAztar Missouri Corporation
r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
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Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
CASINO AlTAR PERFORMANCE SUMMARY
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Fiscal year ended June 30 1995
I ~
Fiscal Year Ended June 30 1996
JuI-95 Aug-95 Sep-95 Oct-95 Nov-95 Oec-95 Jan-96 Fab-96 Mar-96 Apr-96
May-96 Jun-96
2060334 2053105 2052035 1865419 1739459 1845824 1594982 2032111 2532115 2060136 2048919 1907848
c~~ ~~7
756858 662744 742378 610572 646056 668943 599874 647506 721792 594712 673295 533178
Fiscal Year 1997 (July thru December 199B)
middotmiddoti~middot~Hmiddotfiff ~3
~ ~ LlAlLYWitt ~ p
12432 1
12428 12019 105~86
11618 10400
GRAND TOTALS middoti38i1Jtf3litVt21338Dtlgt ~~niG ( ~ 25J75i4H6816$ ~ ariMOlsgt ~29fsect51el ~ middotmiddotmiddotmiddot1 ~ icc ~ ~ ~ i ~ j
bull Casino Aztar began operations April 27 1995
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
j i
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
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Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
FLAMINGO HILTON PERFORMANCE SUMMARY
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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I IAztar Missouri Corporation
r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
j i
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
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Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
HARRAHS NORTH KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 3D 1995
1126040 492716 l 5388329 3330347 i 6480151 4340856 i 8151618 4524567 1 9742487 4n4337i 9673001 43468061
11214361 4687797 1 11512912 4527022
111608026 4217210 11156513 4121
43761 61811 6699 5551 4901 4494 4180 3932 3633
6333241 5624 40845 2757 58241 1 8720 10123 20579831 3819 183842 2931 114288
1 8226 14063
2139295 1 3301 236233 2743 153931 8836 17476 3627051 4449 318614 2558 180190 1 12773 20721 4968150 5099 365433 2666 187818 17420 24591 5326194 5506 342466 2825 180515 20542 26513 6526564 5820 386215 2904 175836 1 23393 27678 6985889 6068 398085 2892 175466 25147 29452 7390816 6367deg 418495 2774 1581851 25747 28738
Fiscal Year Ended June 30 1996
Jul-95 I 12627258 Aug-95 12848930 Sap-95 11631477 Oct-95 11541331 Nov-95 10998088 Dec-95 10682578 Jan-OO 10426800
11258825Feb-OO 11865383Mar-98
4575856 4497003 3959481 3998771 4152884 3805706 3795468 3713909 3738002
Apr-98 10647073 1 3159818 -May-98 13549089 1 4401740
Jun-96 13815785 4472145
Fiscal Year 1997 (July thro December 1996)
3624 3558 3404 3465 3776 3563 3640 3299 3205 2968 3249 3237
8051402 461737 8150007 466772 7671996 403842 7542560 401155 6845224 371682 6876871 371500 6631332 354003 7544916 390226 7926421 430581 7487255 395103 9147349 578214 9343640 622371
GRAND
Hamlhs North Kanau City began operations September 22 1994 Second docblde casino began operaUona1Iay 15 1998
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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I IAztar Missouri Corporation
r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
~
Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
PRESIDENT CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 1
Sep-94 Oct-94i Nov-94 I middotmiddotDec-~
Jan-95 Feb-95 Mar-95 Apr-95
May-95 Jun-95
TOT
2831841 3217222 3284483 3108986 6912438 6518413 6686708 6959047 6542134 1962729 2298535
114916 i 183987 1 182234 168980 357481 333385 327301 368055 350754 98899
114214
1618 1
1749 1 1802 1840 1934 1973 2043 1891 1865 1985 2012
73636 60501 --10252 130 86000 7189 12036 153 86030 6897 1 11891 151 84416 6694 11631 148
125481 9311 13241 329 108157 9417 12601 313 124028 10483 12809 341 118065 10715 14181 331
97708 10391 13004 312 98612 8922 11704 280 99629 12000 14520 328
Fiscal Year Ended June 30 1996
736 Aug-95 Sep-95 Oct-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-96
middotMay-96
6902419 6465755 6293618 5619370 5728799 5265155 6046134 6948426 6000213 4444151
2248331 1937487 1927209 1733302 1749022 1546791 1683484 1844709 1735343 1184350
3257 2997 3062 3052 3053 2938 2784 2655 2892 2665
4654088 4528269 4366409 3946068 3979777 3718364 4362650 5103718 4264871 3259802
6743 7003 6938 6948 6947 7062 7216
7345 7108 7335
354493 332730 310350 279353 290000 263177 306771 350550 298476 232081
1947 1943 2028 2033 1975 2001 1971 1982 2010 1915 1
102150 90962 86344 80245 78361 69301 80627 82648 85066 561841
11047 11115 9919 9672 9079 8483 1
11019 11643 12492 9557 1
13804 13370 12135 11729 11112 10213 12537 13478 13885 10291
318 308 290 270 264 251 298 320 345 247
Fiscal Year 1997 (July thru December 1996)
~C~imiddotUI~foLfZl~JJQ 39655541 7566 4125509 7331 4038438 7544 4197193 7418 4110056 7396 4056009 7493
)jmiddot1818l9tlJ fifbullbull
GRAND TOTALS 153-1 Jjli1i1i3iIiWlL i1WPlk 1019ITJl51F h~66U5kh~~ 31228161 gtmiddotmiddotgt(UJt1k CiciO imiddotrjmiddot gt (V ]0) )4bull
December 1994 flgu reflect the first month of operations with legalized slot machines
Operations were shut down May 16 and 31 1996 and June 1 thm 71996 due to flooding on the Mississippi River
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
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Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
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$lot Machines 349
ST CHARLES RIVERFRONT STATION PERFORMANCE SUMMARY Fiscal year ended June 30 1995
fABEt ifmiddot
1553910 1741073 2105013 2493408 2981408 3776549 3648031 3803675 3913418 2103138 2849776
4103 4061 3791 5848 6137 6263 6309 6477 6509
101583 124559 159403 189796 322567 460944 433639 438813 457914 245870 321584
7211 7624
14111 11556 13607 13066 11720 15563 13900
Fiscal Year Ended June 30 1996
Jul-95 Aug-OS Sep-95 OGt-95 Nov-95 Dec-95 Jan-96 Feb-96 Mar-96 Apr-OO
May-96 Jun-96
9730086 10330991 11102935 10869615 11066912 11215389 10430817 11466121 12419412 11326274 12138328 13233564
6345931 6889295 7414689 7126131 7140573 7228558 6983839 8110098 6744323 7914672 8568333 9972715
6522 8669 6678 6556 6452 6445 6695 7073 7041 I 6988 7059 7536
middot92il1Iti~II imiddotmiddotmiddot middotmiddot jtlPt4ltIL
440462 467024 500288 454503 451897 456191 428435 478862 526589 479712 522070 586 888
JIClraquoOraquo1
2209 2212 2219 2392 2449 2458 2435 2394 2358 2361 2325 2255
104968 106752 118213 116113 125844 123661 106916 111274 113992 109346 110732 104514
12362 13166 14642 13610 13936 13636 13175 16250 16390 15330 16042 19226
Fiscal Year 1997 (July thm December 1996)
Jul-96 Aug-OO Sep-96 Oct-96 Nov-96 Dec-96
021
GRAND TOTALS mu6imjrc3882jWr -c- Hjlpfifv89Swr i- iicenttiSF~ 1f1j1f 2301y~middottmiddot y T 1- ~ ~J 1j 1
December 1 figures reflect the tim month of operations with legalized slot machines Operations were shut down May 18 thru May 31 1996 and June 1 thru 8 1995 due to flooding on the Mlnourl RIver
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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I IAztar Missouri Corporation
r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
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Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
ST JO FRONTIER CASINO PERFORMANCE SUMMARY Fiscal year ended June 30 1995
Aug-94 Sep-94 1
Oct-94 Nov-94 Dec-s4j Jan-95 Feb-95 Mar-95 Apr-95 May-95 Jun-95
(WINPER~ i--c
598 12580 11554 i 99801
13102 12828 14796 15285 15711 15858 14030
453 452 416 359 562 551 635 656 676 680 607
T~~EOF SLOtmiddotmiddot i
~TOTAtAGR A~R~middot
Jul-951 1965365 550141 2802 1414617 Aug-95 2068104 602677 2914 1465427 Sep-95 1960137 562600 2870 1397537 Oct--95 1830524 543398 2969 1287126 Nov--95 1800448 617730 3431 1182718 Dec-95 1852255 557290 30091 1294966 Jan-96 1633473 547436 3351 1086038 Feb-96 1776841 474307 26691 1302534 Mar-96 2082362 611353 2936 1471010 Apr--96 1837256 483278 2630 1353978 May-96 1838296 493741 2686 1344556 Jun-96 1541847 377 745 2450 1164102
Fiscal Year 1997 (July thru December 1996)
SLOTOfmiddotmiddotfmAiAGRlt
7198 7086 7130 7031 6569 6991 8649 7331 7064 7370 7314 7550 7
Fiscal Year Ended June 30 1996
f~~i~~rWli [)fdLYVN bull FOOT
65915131 1
15922 15594 14263 14496 14432 12728 14800 16225 14793 14324 12414
693 679 614 624 621 548 637 698 637 616 534
~~~middot0middotgtTA~~~imiddotmiddotlT~~eHoqfr~Imiddot~middotrmiddotmiddotSiTT AGR middot AORmiddot ToTALAGRmiddot ibullcAGRmiddot
16080441 433119 2694 1174865 1644434 411765 2504 1232669 16715971 444675 2660 1226922 15739451 3294891 2093 1244456 1501775 398194 1 2651 1103582 1543255 413620 2680 I 1129635
921) 24181middot middoti
GRANO TOTAlSiii49a21i1iA h16361M5t~middot f 3314middotcijiOJiO I cmiddotii83ih~~ 196A291 F middotf2SZJ H ~JI sectlmiddotr f u~1
bull December 1994 figree reflect the flnd monUl of operations with legalized Iot machi_
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
j i
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
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Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
SAMS TOWN KANSAS CITY PERFORMANCE SUMMARY Fiscal year ended June 30 1996
middotSep-9S 3932981 1 28761131170 1 Oct-95 I 5847163 1 1990066 3403
1959245 1796034 1754743 1903623 2343721 2001387 1718824
3760 3601 3532 2647 3180 3220 2863
2801810 3857097 3252181 3190969 3213241 4782174 5027075 4213145 4285303
7124 65970 6240 6399 6468 7153deg 6820 6780 7137
161426 294213 207776 227438 213537 338927 388316 333820 329676
16265 12442 10873 11176 11267 16913 16581 13891 13592
18208 1 780 15273 674 135401 620Nov-95I
Dec-95 i Jan-96 I Feb-96 Mar-96jApr-96
May-96 Jun-OO
5211425 4987002 4967984 6685796 7370796 6214532 6004127 5618826
24361 1987 1
2508 1 21931
~2711973 1898 1862 1821 1
112219 112624
98952 62767 80864 93775
109571 102635
85301
13090 13050 18039 18722 16184 15072
575 572 823 849 740 692
Fiscal Year 1997 (July thru December)
JuI-96 Aug-OO Sep-OO Oct-96 Nov-96 Dec-OO
5378168 6046466 4715996 5223606 4470486 4374596
1419286 1788327 1537891 1456335 1298341 1371924
2639 2958 3261 2788 2904 3136
3958883 4258139 3178106 3767271 3172145 3002672
7361 7042 6739 7212 7000 6864
324618 287555 268180 246639 200616 187013
1657 2103 1759 2118 2228 2339
72784 91709 76666 74684 66582 70355
13316 1
14323 15971 10690 12456
1379712672 1 10670 11806 101001 11555
14205 640 720 561 622 532 521
GRAND TOTALS iU(iiiiiiti~xitMJtltP1i1~filit iii1wtmiddotmiddot~middot_middotf i i_its i l i j bull il 1 I
bull Sams Town - Kansas City began operations September 13 1995
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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I IAztar Missouri Corporation
r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
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Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
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$lot Machines 349
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF ADMISSIONS FEES BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
IG~m~1Hmiddot~middot bullbull 1 middot~~middotI~[~~i2Imiddotj~51ipoundEI)z~~11f~~il~~~~~middot~I~middotimiddotmlQ~f1~)c Jul-94 34937400 33734800- 24796000 12258600 105726800 Aug-94 36392600 ------ 34995200 20316600 12269800 103974200 Sep-94 35527000 8169000 36797400 24911800 11287600 116692800 Oct-94 27322600 3676a4CJQ 36146800 31880600 1017860~~ 142597000 Nov-94 26666000 47246600 33796000 37959200 8967200 154635000 Dec-94 36905200 637221Hio 71496200 6451340013032400249670000 Jan-95 45386800 730866~OO 66617000 92188800 13289800 290629000 Feb-95 4897620068493200 65460200 8672780013448400 283105800 Mar-95 50689800 77243000--736Ho])O 8t7~2sectCJQ 1447~00_ ~3()iiJ~~QL APi-95 47809000 1618400 79617000 70150800
u 91582800 14436000 305214000
May-95 51809000 10705400 836990~00 19779800 ~49tl4000 1~96~00_ ~3()1310]jO-----Junmiddot95 48843200 9932000 82iJ~6oo~fI42800 64316800 13855000 242524400
1- 1middot ------shy
mIAL 491264800 222~5800Ju 000 I 620780200 I 565788000 I 676113~oOr-152467000 2528686200
ASCALYEARENDEDJUNE3~1996
1-____Jul-95 55992000 13727200---shy 923414])0 71863000 8809240015814000-shy ----a37836000 Aug-95 584i6CJQ__ 15010600 933544CJQ _______ 10898600 93404800 15530400 348344400 Sep-95 53132400 1~Ji1I3CIOm -m852oo 80728400 66548o~m 100057600 14772800 362177200
J Qctmiddot95 50225800 12594400 58842600 B02310CJQ __ Ji20JCIO00 90900600 13259200 368123600 Nov-95 49363800 10838800 41555200 74336400 55870600 90379400 12859600 335203800 --middotmiddotmiddotDec95 51617800 11258600 45487600 74300000 58000000 91238200 13554400 345456800 I-- Jan-96 51389600 10926000 ~()I400 ---=0800600 52635400 ~~87000J22034CIO 326349400
Feb-96 65000600 13124000 67785400 78045200 61354200 95772400 14212000 395293800------- ----c --- _shy
8 Mar-96 71578400 18511800 77663200 86116200 70110000 105317800 15662600 444960000 APr-96 66019800 13752600 66764000 79020600 59695200 95942400 13582600 394777200 I
MaY96612580oo 12653800 65935200 11564280046416200 1Q4414Ooo 14149200 420469200 Jun-96 fj5810000 _g157400 70885000 _ 12441200 41267000 117377600 125504004~fl216oo
~--- --I-----~-- I -----I
f--- nlJAL--t__ 689533800mb595~1oooo 569910100 -1O49397200T 716726200 [1~585~200 I 168150600 4511112SDiJ
GRAND TOTALS 1180798600 181765800 569910800 1670177400 1282514200 1834714600 320617600 7040499000
I
MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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r Boyd Gaming Company Sams Town I
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~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
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Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
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MISSOURI GAMING COMMISSION MONTHLY SUMMARY OF GAMING TAX BY OPERATOR FISCAL YEAR ENDED JUNE 30 1995
STATErQlAJ middotijA~Hs(middotmiddotmiddotmiddotmiddotmiddoth~i~iCE~p~amp~~tE~middotmiddotmiddotImiddotmiddot~~middotmiddotmiddotmiddotmiddot sect~j()bullbull
I
I
II
Imiddot
I--- Jul-94 87738957 58997572 583Jj26~30 22450538 227489697 Aug94 107337238 56636810 50640255 27024721 241639025 Sep-94 111395928 22520802 64344440 50049245 middotmiddotmiddotmiddotmiddot26115396 283425811 Oct-94 868 01285 107766584 65689660 70891522 24785965 355935(116
J--- Nov~94 803B10p middotJ2960301~ 621793g~ __ B0310933 20718799~I3193OJIIl [)eQ94 101441717 163032360 138248764 143618537 33547899 579889277 Jan-95 132921075__ 19484974L~ 1315694~ 195538869 32847794 687726945 Feb-95 141205757 193460011 133734162 195263684 34220702 697884316 Mar-95 145545493 224287220 139180939 206098095 ~lI~92oo__ -IL5g~()947 Apr-95 1496990J~~_ 5322460 230258234 130842686 222144700 3902~~1l3 7 m 94077 Mav-95147415607 30841010 232180516 39254572 120501968 39392197 609565870 Jun-95139587251 29956555 223130267 45970693 154549381 35018158 628212305
- ~
rom 1431470417 I 66120025 000 I 17210~6j~=J 11)~49087 I 1556909819 I 374288272 I 6216506367
FISCAL YEAR ENDED JUNE 30 1996
Juf-~ 150359149 41206680 252545150 133114721 1bull 94601715 393072928111341007 l Aug-95 156264528 41062102 2529l~05 138048372 nm20661~~~__~ 41362(LlO 836335497 Sep-95 148030518 41Q4069~ 78650012 232629~~~~31~LQ~ 222058698 392()~L43 890936907 ~ Oct-95 143845673 37308385 116943258 230826611 125872351 217392293__ 1- 3661 10489 908799060 Nov-95 135433804 34789175 104228506 ~961754 113587392 221338242 36008955 865347828 Dec-95 138248880 36916480 ~~~oo~ 213651558 114575984 224307781 3705109 864485842 Jan-OO ___ 129065198 31899635_ 99350074 208536006 105303108 208616345 32669463 815449429 Feb-96 147780384 40642225 133715928 225176491 120922671 229322419 35536828 933000946 Msr-96 167268587 50642305 147415925 233307667 138968525 248388237 41647246 1027638492
nApr_96 160899709 41202715 124290ti43 212941461 120004268 226525487 36745115 1-922609398 May-96 144939200 40978380 120082544 ~7b981780 88883026 242766Sj33 36765921 94539~~ Jun-96 131964021 38156960 112376513 276315I07 72126950 26467gt14 30836935 926448371
n
10IAL I 1754099652 I 475845j~37 middotmiddotmiddotmiddot1 111~6~t2I53=1n2~ft52326 I 14oo72247 12706608884 14~738167nnt~~~~
GRAND TOTALS 3185570069 541965762 1136812653 4550921073 2467371561 4263518703 818026439 16964186259
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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I IAztar Missouri Corporation
r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
~
Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
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MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
----shy
_ gtlt
o
Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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I IAztar Missouri Corporation
r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
~
Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
MISSOURI GAMING COMMISSION SURVEY OF GAMING TAXES REVENUES AND REGULATIONS
Casino Typa NoQfL~ ~TuesampF GantkS-Iinita
Nevada Landbased Current 416 Monthly on gross gaming revenue 3 unrestricted 1879 for first $50K 4 of the next $84K restrictedlUnlimited 625 exceeding 134K1effecllve tax
rate to unrestricted licensees 725 New Jersey Landbased Current 13IUnlimited 8 on gross gaming revenue
Louisiana CruiselLandbased 14 Riverboat amp 1 185 of net gaming proceeds or LandbasedlLimit 15 $100000 per year whichever is greater
riverboats
Mississippi Dockside Current 29IUnlimited 8 state tax 4 tax split between city and county where gaming Is legal
Iowa CruiselDockside Current 12 (9 Annually on AGR 5 for first $1 MM paramutual-slots only 1010 of the next $2MM 20 exceeding 9 riverboats)No limit $3MM
Illinois Cruise Current 10ILimit 10 20ofAGR
Missouri Simulated Cruise- Current 7Unlimited- 20ofAGR
Indiana CruiseSimulated Cruise on Current 4lLimit 11 20ofAGR Lake MiChigan
Colorado Umited StakeslLandbased Current 61IUnlimited Annually on AGR 2 for first $2MM 8 for next $2MM 15 for next $1
MM 18 above $5MM South Dakota Umited StakesILandbased Current 116IUnlimited 8ofAGR
---shy
ImiddotRequired 10 cruise one crUse a day fur 100 days during April - Odober l - PeSUI11pIion IhaI boats ClUise but allows procedure fur dockside if necessmy 10 ensure safely of I passengtIS AI boats dockside except Azjr in Carulhersvile
- WhDe Ihent Is no lirriloolicenslng legislation was II1successfu11y introduced in 1995 10 Umillhe I number at riverboats 10 nine
- The gaming tax serves as a a-edil against stale inaIme laX
I
Slot license fee of $250 per year I $7368580000I
$500 per year per slot machine $3748576000 investment alternative tax 125 of
est gross revenues $250 - $350 $340899209 per admission
optional in local jurisdictions
Application Fee $5000 Gaming $1724301405 Device tax $100Ooolyr
Enforcement Cost 65 + Removed $455935892 Commission costs divided equally In 1994 between boats on a weekly basis
Application fee $40000 Annual fee $5 per passenger to capacity Annual
license fee $1000 occupational license amp fingerprinting fees
Various licensee and application fees $2 per ~o Poker Allowed $1178311827 ranging from $50 to $50000 admission fee
Boat to pay for full cost of $2 per Lossimit $467577788 enforcement Avg $50000 per admission fee of$500
month various license and per2hour applications fees cruIse
$3 per person $6400000 per cruise
admission fee State fee of $75 per device per year Bet limit of $5 on $348342946 Local fee of $750-$1265 per device slots blackjack
per year and poker only A $2000 per device per year fee Bel limit of $5 $48535113
various license application and investigation fees I
----shy
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Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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I IAztar Missouri Corporation
r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
j i
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
~
Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
_ gtlt
o
Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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I IAztar Missouri Corporation
r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
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Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
Gaming Commission Fund Balance Report Fiscal Year 1995
AMOUNT SUBTOTAL TOTAL I AMOUNT SUBTOTAL TOTAL
BEGINNING BALANCE 711194 5252406233
REVENUE
EXPENDITURE-GAMING (coni)Fees
Office amp Comm Equip Purchase $6606200
Level I Occup Application $5070000
AampB Application $94211772
Communications Expense $10235700
Level nOccup Application $55818085 Inst amp Phys Plant Expense $18736600
Supplier Application $15573966 Inst amp Phys Plant Equip Purchase $4922100
Level nOccup Annual Fee $36798201 Data Processing Exp amp Equip $16026300
Supplier Annual Fee $2000000 Professional Services $34766200
Penalties $22500000 Other Expense $15544400
Level nSupplier Application $292500 Retimd Appropriation $931500
Level nSupplier Annual Fee $110000 Debt Retirement $300000000
Admissions $1260826000 $1493200524 Rounding Adjustment $200 $431952500
Licenses Total Gaming 58 79772452
AampBAnnual $17500000 EXPENDITUREmiddotOTHER
Liquor License $400000 517900000 Personal Services
Other rX)R Salaries $1402522 $1402522
Administrative Income $79629641 Expense amp Equipment
Interest $26024042 $105653683 MSHP Gasoline $10205924
Total 51616754207 MSHP Auto Maintenance amp Repair
EXPENDITURE-GAMING $5524688 Personal Service MSHP Automobiles $50093526 Gaming Salaries $77950557
Transfer to General Revenue (UPC) $1347100 $67171238 MSHP Salaries $225413740
Total Other 568573760 MSHP Fringe Benefit $108071637
roND BAlANCE 920814228 Gaming Fringe Benefit $36384018 $447819952
Penalty Reserve $22500000 Expense amp Equipment
Interest Through $809824 523309824 523309824 Travel amp Vehicle Exp $17287900
roND BALANCE Office Equipment $6895400 WILITIGATION 5897504404
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
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Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
Gaming Commission Jlund Balance Report Fiscal Year 1996 - As of 08-31-96
BEGINNING BALANCE 711195
REVENUE
Fees
AampB Application
Level I Occup Application
Level nOccup Application
Supplier Application
Level I Occup Annual Fee
Level nOccup Annual Fee
Supplier Annual Fee
Penalties
Level nSupplier Application
Level II Supplier Annual Fee
Admissions
Licenses
AampBAnnual
Liquor License
Other
Administrative Income
Enforcement Reimbursements
Interest
Outlawed Check
Total
EXPENDITURE-GAMING
Personal Service
Gaming Salaries
MSHP Salaries
MSHP Fringe Benefit
Gaming Fringe Benefit
Expense amp Equipment
Travel amp Vehicle Exp
AMOUNT SUBTOTAL TOTAL 5920814228
$107390766
$9120000
$52665000
$8800749
$100000
$65262399
$4000000
$734960
$180000
5103686
$2229739400 52478006960
$22500000
$550000 $23050000
530525774
5615515678
589904228
5999900 5736945580
$4158906768
5103977995
$307575633
$144850405
550929228 5607333261
$15955912
Office Equipment
Office amp Comm Equip Pur
Communications Expense
Inst amp Phys Plant Expense
Inst amp Phys Plant Equip Pur
Data Processing Exp amp Equip
Professional Services
Other Expense
Refund Appropriation
Lease Payment
Total Gaming
EXPENDITURE-OTHER
Personal Services
OOR Salaries
Attorney General Salaries
AuditorS Office Salaries
Expense amp Equipment
MSHP Gasoline
MSHP Auto Maintenance amp Repair
MSHP Vehicle Purchase
Auditors Office Expenses
Div of Youth Services
Miscellaneous Transfers
Total Other
FUND BAlANCE
Penalty Reserve - From FY 96
Interest Through 6-30-96 Est
Penalty Reserve - From FY95
Interest Through 6-30-95 Est
flfND BALANCEWLITIGATION
AMOUNT SUBTOTAL TOTAL
$5370854
$8210521
$10387384
$4656750
$1051262
$11500121
$61395232
$1901562
$31450
$16894104 $137355152
53414218355
$2187600
$3120000
52885097 $8192697
$11613300
58418872
550824900
5222142
$49185528
$842195897 $962460639
5970653336
52443565019
$734960
$43100
$22500000
51530200 524808260
52418756759
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r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
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Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
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$lot Machines 349
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r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
~
Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
I IAztar Missouri Corporation
r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
~
Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
r Boyd Gaming Company Sams Town I
tclMissi(jnle~s gt bullbull Stilte lfLoca1PortiQn~2849554
~djustedGrsSRe~ipt~$5684()6JJ sectaIllj~gTtl- Sll3g8 ii7 Esti~1i~pr9jelttCost bullbull $147)17343 ~ClJi1ingIax rfcaIP)rtimi State~Qftio~ Table Garnes $19tM~chiIies
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
~
Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
Harrahs Nortb Kansas City Corporation
Quick Facts
License Dates North Star September 22 1994 Lucky Star May 15 1996 Total Gaming Positions 2306 Gambling Space 61600 Employees 1890
Harrahs North Kansas City One Riverboat Drive North Kansas City Missouri 64116 Tel (816) 889-7078
Local Goverrunent City of North Kansas City
Quick Stats
Admissions 5246986 Admissions Fees $10493972 Admission Fees State amp toeal Portion $5246986 Adjusted Gross Receipts$141492616 Gaining Taxmiddot $2829852~ Estimated Project Cost$142700000 Gaming Tax
Local Portion $2829852 State Portion $25468671 Table Gaples 109 Slot Machines 1890
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
~
Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
I IHilton Kansas City Corporation
Qui~kFaCts
FluningoCasino 1800 E Front Str~t Kansas City Missouri 64120 Tel (816)857777
Local Government City of Kansas City
Quick Stats
Due to licensure date of this casino complete data is not yet available
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
~
Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
I 1Kansas City Station Corporation
Licen~eDateJanuarY 181997 TptalGmrtintrPosilions3816 GamblingSpaceJ40OOO sqft ~mpl()yees3216
Station CasiJloKansas City 711iNEBirrtungharii Road KaIiSasCityMissoiirl64161 bull Tel (816) 4147000
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
~
Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
Missouri Gaming Company Argosy
Quick Fads
LicenseD~t~ June 1994 Total GamingPositions l190 Gambling Space 30000 Employees 1144
Argosy Riverside Casino 777 NW Argosy Parkway Riverside Missouri 64150middot Tel (816)746-3100
Local GovemmeI)t City of Riverside
Quick Stats
Admissions 3447669 Admissions Fees $6895338 Admission Fees State amp Local Portion $3447669 Adjusted Gross Reqeipts$877()4983 ltnuningT~x $17540991 EstimatedgtProject Cost $92597042 Gaming l)x Local Portion $1754lQO bull
State Portion $15 786897gtmiddot
Table Games 60i Slot Machines 9~j
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
~
Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
President Riverboat Casino - Missouri Inc
License Date May 271994 Total Gaming Positions 1393 Gambling Space 58000 Employees 1115
President Riverboat Casino~~Missouri Inc on the Admiral 600 North Leonor K SulIivanBIvd St Louis Missouri 63102 Tel (314) 8622middot3000
3583631 Admissions Fees $7167262 AdmIssion Fees State ampLocal portion $3583631
Adjusted Gross Receipts $70036124 Gaming Tax bull $14007225 Estimated ProJeetCost $60204248 Gaming Tax
LOcal Portionmiddot $1400722 State Portion $12604502
Table Games 68 Slot Machines 1137
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I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
~
Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
I St Charles Riverfront Station J
Quick Facts
License Dates Casino S1 Charles May 27 1994 Dockside facility December 28 1994shyTotal Gaming Positions 2141 Gambling Space 47000 Employees 1859
Casino S1 Charles 1260 S Main St Charles Missouri 63302 Tel (314) 940middot4300
Local Govcrnrtlent City of S1 Charles
Quick Stat
Admissions 5792921 Admissions Fees $11585842 Admission Fees
State amp LOCdl Portion $5792921 Adjusted Gross Receipts $135330444 Gaming Tax $27066089 Estimated Proicct Cost $153969488 Gaming Tax
Local Portion $2706609 State Portion $24359480
TabJeGames 104 Slot Machines 1729
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
~
Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349
[I St Joseph Riverboat Partne-shy I -
LitenIJate bullbull JJnemiddot12 1994 TdegtilpanungPoitidegIlSlA14 G~blillgSPilce9620 ~nipioY~es364middot bull
~liE~~~~in~n st)osej)lI~ss~Uri 64501 ~el(81~)i~~2~8634 bull
~~calmiddotGOve~erit~middot Gitji ofStJosephmiddotmiddotmiddot - --
~
Aahli$~ionsmiddotmiddot AdlJli~si~nsEegs Admission Fees ~tat~~I()q~middot~6ttiollbullbull ~djust~~(]~R$~R~c~iptsmiddotmiddot
~~~j~middotmiddotmiddotCmiddot~middotmiddotmiddotmiddotmiddotmiddotmiddot~1gt437382Esti~te(lProjeCrCost$22OOO()oo (jafuingtaxmiddotr~ LocaIphItiorl $443738
i-_-_-__raquo-lt~_gt _ shy - _shy
gtSta~ell0t1i0il $3 993~43gtTalJleGanibs middot18
$lot Machines 349