After rounds of golf, poker, trade show and socializing, the Gaming Industry Association (GIA) of Montana got down to business during a May 24 annual convention session at Fairmont Hot Springs.
But first, a fitting moment of silence was observed for departed founding member Pius "Ole" Ehli who passed away in February. Ole's son, Mark Ehli, of Big B Bingo and daughter, Dee Dorman, of King's Corner Casino and Billiards, both of Billings, were in attendance.
GIA President Marc Wass noted Ehli and his valuable input would be missed, extending condolences to the family.
GIA Executive Director Rich Miller said he was "the lucky recipient of Ole's knowledge" and noted Ehli was the "force behind much of the legislation that got us where we are today. Ole was a tireless supporter of GIA. He showed us how to work on legislation, elections and communications. I'm going to miss him a great deal."
Wass then steered the group to its business agenda, starting with a Gambling Control Division (GCD) push to limit abuse of credit card cash advances for gambling purposes.
Miller noted some credit card merchant agreements prohibited cash advances and to handle cash advance transactions any other way would be illegal and would leave an operator no collection recourse if the card holder defaulted on the debt.
He said a GCD notion to prohibit credit card use in licensed premises is "impractical" since these businesses offer a multitude of legitimate products and merchandise in additional to gaming.
Miller said Gambling Control was working on fleshing out their proposal but would have to fully address all the practical problems with it. Better yet, he said, is for licensees to be more diligent in spotting potential abuses and heading them off.
Miller reported the division's efforts to develop web-based automated tax reporting were making substantial progress, and that draft rules (a public hearing was conducted June 8) to implement the system contained only a few minor areas of concern including reporting frequency requirements, which GIA prefers to be every two weeks as opposed to the GCD's suggested weekly reporting.
The group discussed the components of the system and administrative apparatus at length, but dwelt extensively on the "reporting tiers." Proposed Tier One licensees would use system interface boards (SIBs) to hard-wire machines to on-site computers to automatically collect, collate and reconcile data before it is forwarded to the state, whereas Tier Two reporting would use manual data collection and entry (including wand meter readers).
It was noted anyone operating upgraded multi-game machinery would have to use one of the automated reporting methods or be forced back into solitary game programs which may no longer be available from manufacturers.
GIA member and industry representative to the Gaming Advisory Council John Tooke noted the council may yet want to have some say regarding the final version of the rules.
Steve Arntzen of Century Gaming suggested the rules needed a time-line–preferably six months–specifying when implementation and full compliance would be required after approval of a system.
Miller credited the diligence of GCD administrator Gene Huntington and system developer Al Arvish, as well as the entire Gaming Advisory Council, for the apparently substantial strides made.
Before the mid-morning break, Mark Ehli briefed the group on live bingo updates regarding card designs that will be worked into the GCD "housekeeping" legislation.
Upon reconvening, Miller led the group in a discussion on rule and statute changes sought by Gambling Control to modernize live poker regulations in the wake of the resurgence of the game, particularly Texas Hold 'Em.
Primarily, GCD and the industry agree that dealer licensing standards need to be improved and revamped to accommodate the flood of license applications, up at least three-fold from just a few years ago.
Miller said the industry backs proposals to make dealer licensing standards more stringent and permits more expensive to assure only serious, professional dealers would apply. The annual fee would increase from $75 to $250 with renewal set at $200; a five-year license could be obtained for $550 with renewal at $500.
Tooke said, "Live poker needs stricter enforcement and Gambling Control needs the money to pay for it."
In addition, tournament formats and prizes will be revised.
Miller said Washington state just passed a law making internet gambling a felony, and noted Montana's policy should be to discourage internet gambling with it's questionable fairness and regulation and lack of tax collection and, instead, get players into Montana's well regulated and taxed "bricks and mortar" environment.
Miller said a GAC live poker subcommittee has done yeoman's work, as have industry representatives, in the proposed regulation updates. Wass thanked participants for their "outstanding and hard work."
Wass noted the Montana Council on Problem Gambling (MCPG) has been projecting potential operating deficits as its treatment programs for problem gamblers have been widely publicized and now increasingly utilized.
Miller said the shortfall had been looked at by a number of entities including legislators, government agencies and regulators, but that gaming businesses would rather step up to address the problem than see the program co-opted by government with all the attendant administrative and oversight costs.
It was noted in May the Montana Coin Machine Operators Association agreed to increase their funding for the MCPG by about one-third, and GIA voted to do the same. It was hoped the Montana Tavern Association would follow suit at its June 21 board meeting (which it did) and Miller reported Town Pumps, the other chief supporter of MCPG, indicated it was ready to up its ante as well.
Miller also noted gaming machine manufacturers had expressed a preliminary willingness to come on board for an annual contribution, meaning the potential total increase in funding could amount to over $60,000 annually, a boost of almost two-thirds.
That increase would cover the Council's potential shortfall and would also finance some future growth, Miller said. GIA also voted to continue to fund its share of problem gambler treatment advertising and the toll-free help hotline.
Wass asked the group to then consider news coming out of the gaming compact negotiations between the state and the Confederated Salish and Kootenai Tribes. The tribes opening position in essence proposed the tribe regulate all on-reservation gambling, including non-tribal operations now licensed, regulated and taxed by the state. In addition, the tribe suggested it be the authority to determine what types of games would be allowed, what limits–if any–would be set and what tax policy would be.
In the second round of negotiations, the state said it found those far-reaching proposal untenable, and would not countenance giving up regulation of non-tribal licensees.
Wass reminded members Gov. Brian Schweitzer is on record–and has reiterated his position–that he opposes the expansion of gambling anywhere in the state, but noted state regulated operators have no standing in state/tribal negotiations.
On the legislative front, Miller noted MTA will be taking the lead when it comes to liquor issues but GIA will be vigilant and participate when necessary. Some horse racing issues are being discussed and monitored, he said.
The group adjourned at mid-day, just after setting August 24 as the date for the next GIA board meeting. It will take place, as usual, at the Best Bet in Helena.
After rounds of golf, poker, trade show and socializing, the Gaming Industry Association (GIA) of Montana got down to business during a May 24 annual convention session at Fairmont Hot Springs.
But first, a fitting moment of silence was observed for departed founding member Pius "Ole" Ehli who passed away in February. Ole's son, Mark Ehli, of Big B Bingo and daughter, Dee Dorman, of King's Corner Casino and Billiards, both of Billings, were in attendance.
GIA President Marc Wass noted Ehli and his valuable input would be missed, extending condolences to the family.
GIA Executive Director Rich Miller said he was "the lucky recipient of Ole's knowledge" and noted Ehli was the "force behind much of the legislation that got us where we are today. Ole was a tireless supporter of GIA. He showed us how to work on legislation, elections and communications. I'm going to miss him a great deal."
Wass then steered the group to its business agenda, starting with a Gambling Control Division (GCD) push to limit abuse of credit card cash advances for gambling purposes.
Miller noted some credit card merchant agreements prohibited cash advances and to handle cash advance transactions any other way would be illegal and would leave an operator no collection recourse if the card holder defaulted on the debt.
He said a GCD notion to prohibit credit card use in licensed premises is "impractical" since these businesses offer a multitude of legitimate products and merchandise in additional to gaming.
Miller said Gambling Control was working on fleshing out their proposal but would have to fully address all the practical problems with it. Better yet, he said, is for licensees to be more diligent in spotting potential abuses and heading them off.
Miller reported the division's efforts to develop web-based automated tax reporting were making substantial progress, and that draft rules (a public hearing was conducted June 8) to implement the system contained only a few minor areas of concern including reporting frequency requirements, which GIA prefers to be every two weeks as opposed to the GCD's suggested weekly reporting.
The group discussed the components of the system and administrative apparatus at length, but dwelt extensively on the "reporting tiers." Proposed Tier One licensees would use system interface boards (SIBs) to hard-wire machines to on-site computers to automatically collect, collate and reconcile data before it is forwarded to the state, whereas Tier Two reporting would use manual data collection and entry (including wand meter readers).
It was noted anyone operating upgraded multi-game machinery would have to use one of the automated reporting methods or be forced back into solitary game programs which may no longer be available from manufacturers.
GIA member and industry representative to the Gaming Advisory Council John Tooke noted the council may yet want to have some say regarding the final version of the rules.
Steve Arntzen of Century Gaming suggested the rules needed a time-line–preferably six months–specifying when implementation and full compliance would be required after approval of a system.
Miller credited the diligence of GCD administrator Gene Huntington and system developer Al Arvish, as well as the entire Gaming Advisory Council, for the apparently substantial strides made.
Before the mid-morning break, Mark Ehli briefed the group on live bingo updates regarding card designs that will be worked into the GCD "housekeeping" legislation.
Upon reconvening, Miller led the group in a discussion on rule and statute changes sought by Gambling Control to modernize live poker regulations in the wake of the resurgence of the game, particularly Texas Hold 'Em.
Primarily, GCD and the industry agree that dealer licensing standards need to be improved and revamped to accommodate the flood of license applications, up at least three-fold from just a few years ago.
Miller said the industry backs proposals to make dealer licensing standards more stringent and permits more expensive to assure only serious, professional dealers would apply. The annual fee would increase from $75 to $250 with renewal set at $200; a five-year license could be obtained for $550 with renewal at $500.
Tooke said, "Live poker needs stricter enforcement and Gambling Control needs the money to pay for it."
In addition, tournament formats and prizes will be revised.
Miller said Washington state just passed a law making internet gambling a felony, and noted Montana's policy should be to discourage internet gambling with it's questionable fairness and regulation and lack of tax collection and, instead, get players into Montana's well regulated and taxed "bricks and mortar" environment.
Miller said a GAC live poker subcommittee has done yeoman's work, as have industry representatives, in the proposed regulation updates. Wass thanked participants for their "outstanding and hard work."
Wass noted the Montana Council on Problem Gambling (MCPG) has been projecting potential operating deficits as its treatment programs for problem gamblers have been widely publicized and now increasingly utilized.
Miller said the shortfall had been looked at by a number of entities including legislators, government agencies and regulators, but that gaming businesses would rather step up to address the problem than see the program co-opted by government with all the attendant administrative and oversight costs.
It was noted in May the Montana Coin Machine Operators Association agreed to increase their funding for the MCPG by about one-third, and GIA voted to do the same. It was hoped the Montana Tavern Association would follow suit at its June 21 board meeting (which it did) and Miller reported Town Pumps, the other chief supporter of MCPG, indicated it was ready to up its ante as well.
Miller also noted gaming machine manufacturers had expressed a preliminary willingness to come on board for an annual contribution, meaning the potential total increase in funding could amount to over $60,000 annually, a boost of almost two-thirds.
That increase would cover the Council's potential shortfall and would also finance some future growth, Miller said. GIA also voted to continue to fund its share of problem gambler treatment advertising and the toll-free help hotline.
Wass asked the group to then consider news coming out of the gaming compact negotiations between the state and the Confederated Salish and Kootenai Tribes. The tribes opening position in essence proposed the tribe regulate all on-reservation gambling, including non-tribal operations now licensed, regulated and taxed by the state. In addition, the tribe suggested it be the authority to determine what types of games would be allowed, what limits–if any–would be set and what tax policy would be.
In the second round of negotiations, the state said it found those far-reaching proposal untenable, and would not countenance giving up regulation of non-tribal licensees.
Wass reminded members Gov. Brian Schweitzer is on record–and has reiterated his position–that he opposes the expansion of gambling anywhere in the state, but noted state regulated operators have no standing in state/tribal negotiations.
On the legislative front, Miller noted MTA will be taking the lead when it comes to liquor issues but GIA will be vigilant and participate when necessary. Some horse racing issues are being discussed and monitored, he said.
The group adjourned at mid-day, just after setting August 24 as the date for the next GIA board meeting. It will take place, as usual, at the Best Bet in Helena.
Source: The Montana Tavern Times, July, 2006, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.