Gambling control denies changes, publishes rules
Pub Date: 7/1/2007
The Montana Department of Justice Gambling Control Division published and distributed draft rules meant to implement new laws passed by the just completed session of the Legislature, then conducted a May 31 hearing in Helena to hear testimony from interested parties.
Rich Miller, executive director of the Gaming Industry Association submitted written comments while Ronda Wiggers of the Montana Coin Machine Operators Association presented oral testimony.
The rules dealt with the new law allowing limited sales of antique gambling devices and aspects of the new live card games statute.
The published rules and changes filled seven standard pages and the Montana Tavern Times won't devote the space to publishing them here in their entirety, but the complete text can be found at .
The department then published a summary of the comments received and its responses to them. In every case Gambling Control defended its proposed rule and opted to not make any changes related to the comments.
Regarding the antique gaming devices law, the Division stated:
"Oral testimony was received at the hearing from Ronda Wiggers, representing the Montana Coin Machine Operators Association. Ms. Wiggers stated that she supported the proposed amendments to ARM 23.16.209 relating to the display of antique gambling devices, but she stated that the legislation which prompted the amendments conflicts with the federal Johnson Act.
"Ms. Wiggers suggested the division develop an informational flyer advising the public that possession and transportation of gambling devices may be prohibited by federal law.
"Response: The division will consider producing an informational flyer to send to Montana antiques dealers regarding the Johnson Act, and the availability of a license to sell antique gambling devices in Montana."
GIA's comments and objections, submitted over Miller's signature, were focused on the card game revision act. For example, he protested draft rules that dealt with 23.16.406 TEMPORARY DEALER LICENSE.
"GIA is disappointed at the inflexibility of this proposed rule.
"During discussions with the sub committee of the Gaming Advisory Council leading up to the changes adopted with the passage of HB 190, the industry had proposed the department consider allowing potential dealers to work for a limited time provided the operator or card room contractor notified the department.
"GIA believes that the problem voiced by the department with the current system relating to the excessive number of licenses that the applicant has apparently lost interest in obtaining would be better addressed were the department to incorporate some form of this option into the current rules.
"The department must take into consideration the nature of our businesses. I and many others in this business have hired dealers on less than four hours notice. We hire personnel based on interpersonal skills as much or more than mechanical skills. We also find out very quickly whether a person has the mechanical skills necessary to do a job as complex as poker dealer. A large proportion of persons wanting to be poker dealers do not possess those necessary skills.
"Therefore, allowing the industry to screen potential employees with a short trial period before requiring them to be licensed seems a much better solution than the converse as proposed by this rule.
"GIA would also make the point that not all potential licensees are within one or two hours driving distance of a gambling control office or local motor vehicle division office. The process proposed would itself require several hours to complete, provided all the necessary personnel were at their desks."
The division responded:
"The proposed rule amendments were drafted to conform the rules to the legislative mandate of HB 190. The new legislation requires these rules to allow temporary licenses for card dealers only upon submission of the application, payment of the license fees, and proof of an offer of employment.
"The new law is designed to ensure temporary licenses are issued to applicants who are suitable, who have paid the license fees, and who actually need a license issued on a temporary, expedited basis. There is no change to the law which requires card dealers to be licensed.
"Furthermore, the division anticipates that changes to drivers services business practices will allow card dealer license applications to be processed in approximately 20 to 30 days, or less. These proposed procedures are not significantly more burdensome than under current law.
"Applicants had previously been required to appear at a drivers services station to have photos taken and to submit fingerprints'; the applicant was then required to mail the completed application and required fees to the division prior to using the temporary license attached to the application.
"Experience reveals the majority of card dealer license applications come from Montana s larger urban areas where GCD field offices are located. Additionally, the division plans to utilize Local Workforce Service Centers located in certain areas of the state to assist in handling temporary card dealer license applications, which should limit travel distances for some applicants."
GIA's Miller also commented on 23.16.1224 DEALER RESTRICTIONS:
"The proposed language does nothing to clarify a rule that may already be a bit murky.
"This rule was originally adopted to prevent a dealer from being paid a percentage of the rake. It was also directed at prohibiting a dealer from bankrolling players or from participating in the game themselves by playing a hand.
"The entire rule should be rewritten to reflect that a dealer, who is an employee of an operator or a card room contractor and not the operator or a card room contractor themselves, may not receive a percentage of the rake as wages, may not bankroll players and may not take a hand in the game. "
The division responded:
"The division has recently encountered many operators who pay their card dealers a percentage of the rake. These operators and card dealers were unaware that this practice results in a prohibited undisclosed ownership interest in the license. The division believes the proposed amendment will serve to clarify this point."
GIA's final comment was on 23.16.1231 RAKE:
"This language should not be added. The language is redundant of 23.16.1224 as the rule now stands or as it is proposed to be amended.
"Insertion of this proposed language at this point in the ARM is inconsistent with the subject, intent or focus of the existing rule. Rule 23.16.1224 deals with the mechanics of operating a poker game and should not be clutter with an employment matter."
The division responded:
"While this amendment may be redundant to the rake restriction expressed in the proposed amendment to ARM 23.16.1224, the division believes it should be included in the rule addressing rakes.
"Investigators for the division have recently discovered numerous situations where card dealers are paid a percentage of the rake, and neither the dealer nor the operator understood this to be a prohibited undisclosed ownership interest in the license."
Source: The Montana Tavern Times, July, 2007, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.