Gambling Control readies poker discussion for council
Pub Date: 9/1/2005
At the last meeting of the Gaming Advisory Council, Gambling Control Division Administrator Gene Huntington noted that the surging popularity of live poker in Montana as well as across the nation has introduced some regulatory challenges that might need to be addressed with new rules.
Whereas the division had been tracking just over 200 card dealer licenses in the past, as many as 800 dealers have now applied for licenses. In addition, tournaments for charity and competition are on the rise, and some tournament rules may need clarification.
Finally, pot limits, a perennial subject for discussion, has once again been brought to the attention of the council for further consideration.
In preparation for the scheduled Sept. 23 Gaming Advisory Council meeting, the division prepared for the council the following discussion paper on these issues.
Gaming Advisory Council Issue Paper
Updating of Statutes and Rules Related to Poker
Background
The popularity of the game of Texas Hold em has created new life for Montana s poker games. The number of dealer applications has increased from 230 in fiscal year 2003 to over 800 in fiscal year 2005. The number of licensed card tables has increased from 163 in fiscal 2003 to 359 for the most recent fiscal year. Montana is not alone as many states and provinces attempt to deal with the popularity of Hold em tournaments.
Montana s card game act was revised in 1989 as part of the comprehensive review of gambling laws that led to the creation of the Gambling Control Division and the consolidation of gambling regulation at the state level.
The statute provides for taverns to license tables to offer limited stakes games of poker. In addition, card game dealers and card room contractors must be licensed. A card room contractor is a party who leases space or tables in a bar to operate card tables.
Revenue collected on card games consists of licensing fees charged for tables, dealers and card room contractors. The fee on tables is $250 for the first table and $500 for each additional table. The Division retains $100 and the balance of each fee goes to the local government where the game is located.
In fiscal year 2005, the Division collected $124,000 and paid out $88,000 to local governments. The license fee for card dealers is $75 for the first year and $25 for renewals.
Issues and Options
I. Dealer Licenses-
The current law allows someone to initiate the license application by going to the Driver s License station to be photographed but no fee is required and the application form provides part of a temporary license.
A. The statute has made it very easy for people to apply to be licensed as a card dealer, however the easy application has led to a number of problems:
1. People can get a temporary license and go to work before we have had an opportunity to conduct even the most basic background investigation.
2. Many people apply and get the temporary license and never send in the application that would tell us who they are. The result is that people can have what appears to be a temporary dealer s license and we may never find out who they are.
3. Applicants who do not get an acceptable photo or provide adequate information with their application can use up a great deal of time and attention from licensing and legal staff. Often the Division cannot locate these people to provide them with the notice that their application is being denied.
4. The licensing process does not require any demonstration of knowledge or experience.
5. The licensing fee does not start to cover the costs of processing the license application.
A . Options The process in the current law was drafted to assure that the licensing process would not keep someone from taking an immediate job as a dealer. Advances in technology may now allow for collecting and processing the application much faster.
1. Eliminate the temporary license process and make everyone submit all material and fees before they can be approved.
2. Establish two processes for obtaining a dealers license - an expedited process for people with verifiable offers of immediate employment that would require submission of fingerprints, payment of the licensing fee'; and submission of the application prior to getting a license. Those who want a license but have no verifiable offer of employment would need to submit the application, the fee and fingerprints and wait until their background investigation was complete before being issued a license.
3. Licenses could be obtained at GCD Offices by having equipment in each office that would allow for taking the application on line, paying the fee, testing and taking a photo. Offices are available in Helena, Billings, Missoula, Great Falls, Kalispell, Bozeman and Glasgow.
I. Tournaments-
Current law provides for card tournaments but is directed at making tournaments a limited activity and not something that is ongoing. The law limits tournaments in number to 12 a year and in duration to five consecutive days. A permit for a card tournament costs $10.
A. Some issues related to tournaments include:
1. Charitable Tournaments The Division has had requests or discovered that groups are conducting card tournaments to raise money for charity. Under the law only a bar with a gambling operator's license can conduct a card tournament. Nonprofit groups can have casino nights that allow card games, however, card tournaments are not authorized. This has led to issues both with the way casino nights are conducted and frustration on the part of some nonprofit groups.
2. The Continuing Tournament Montana law envisioned each card tournament as a separate tournament. However, the popular version of tournaments is a tournament where part of the prize is to continue on to another tournament. To make state law fit with the popular tournament format, it needs to be clear that the chance to win money in another tournament can be awarded without exceeding the pot limit.
3. The Multiple Location Tournament The current law envisions one gambling operator sponsoring a tournament. The popular tournament format for Hold em often has several locations involved in one tournament.
4. Calculating the Maximum Prize In a card tournament the top prize allowed for each tournament is calculated using a formula for the anticipated number of games to be played multiplied times the $300 pot limit allowed by state law. This calculation can be confusing and has never been widely understood. This calculation could be replaced by a formula or a schedule in statute or rules that is more easily understood.
I. Pot Limits-
The current law limits pots to $300 per hand and the value of any prize in a promotional game of cards cannot be more than $300. In recent years the Division has heard from gambling operators and players that this limit is restrictive. Others have pointed out that the lower limit keeps card games going and higher limits will cause players to loose their stake and they will actually play less, making it harder to keep a game going in a location.
Source: The Montana Tavern Times, Sept., 2005, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.