Idaho Lottery
Commission
Meeting Minutes
Time, Date and Place:
The 131st meeting of the Idaho Lottery Commission
convened on Tuesday, March
13, 2007, 10:00 a.m. (MDT) at the Idaho Lottery, 1199 Shoreline Lane, Boise, Idaho, 83702.
Attendance:
Commissioners Present:
Chairman, Roger Jones;
Commissioner, Mel Fisher;
Commissioner, Scott Mcleod;
Commissioner, David Keyes;
Commissioner Lydia Justice-Edwards (via teleconference)
Lottery Staff Present:
Director, Jeff Anderson;
Deputy Director, Steve Woodall;
Deputy Director, Mike Helppie;
Deputy Director, Becky Schroeder;
Management Assistant, Gennefer
Gonzales;
Public Relations Officer, David Workman;
Product Manager, Becky Arte-Howell;
Advertising Manager, Sherie
Moody-St.Clair
Others Present:
Attorney General’s Office, Jeremy Chou;
Attorney General’s Office, Kay Christensen;
M & M Court Reporting, Deann
Morris;
Intralot, Patt
Tatarski;
ES/Drake, Sara Chase;
Oberthur Gaming Technology, Geneva McCaffrey;
Oberthur Gaming Technology, Naomi
Mejia;
1. MEETING
CALLED TO ORDER:
Meeting called to order by Chairman Jones at 10:04
a.m.
2. APROVAL OF
MINUTES FROM JANUARY
16, 2007 AND
FEBRUARY 20, 2007 COMISSION MEETINGS:
A motion was made by Commissioner Keyes, and seconded by
Commissioner
McLeod to approve the minutes from the January 16, 2007 and
February 20, 2007 Commission Meetings.
Voting was unanimous for approval.
3. REQUEST FOR
APPROVAL FOR RELEASE OF THE INSTANT SCRATCH TICKET RFP:
Mike Helppie provided the
Commission with a “draft” copy of the Instant Scratch Ticket RFP to
review. He stated that our current
contract is with Oberthur Gaming Technologies (OGT), San Antonio, Texas.
The contract went into effect July 1, 2003 and will expire September 30, 2007. It was a two-year contract period with a
one-year option to extend. The
Lottery would like to ask the Commission for approval for issuance of a new
RFP. The new RFP will have a longer
term. A two-year
initial term with two, three-year extended options, a total of eight years. The Instant Ticket RFP would be issued
Friday, March 23,
2007. At this time,
final adjustments are being made with our Contract Division Attorney General,
Tim Davis and Special Attorney General, Brad Frazer.
Commissioner Fisher made a motion to approve the 2007
issuance of the Instant Scratch Ticket RFP with an issuance on Friday, March 23,2007, and seconded by Commissioner Keyes. Voting was
unanimous for approval.
4. REQUEST FOR
APPROVAL FOR PRINTING INSTANT SCRATCH TICKETS:
At the May 24, 2005 Commission Meeting, Mike Helppie asked for approval to print scratch games #722 to
#773 for FY06. There is no
state statute or lottery rule that requires the Commission to approve game
numbers.
It has always been a formality by the lottery for the commission’s
approval. Mike Helppie
asked the Commission for approval to print scratch games 774–900 for FY07
& FY08, 126 future game numbers.
Game #’s 800 - 830 have been printed.
A motion was made by Commissioner Fisher to approve the
printing of games 774-900, and seconded by Commissioner Keyes. Voting was unanimous for approval.
5. MARKETING
UPDATE:
New $10 game “Ten X the Luck”:
Mike Helppie introduced the new
scratch game “Ten X the Luck”.
He provided them with a VOID scratch ticket and explained how the game
is played. This is the
Lottery’s second $10 ticket.
The game is on the market at this time.
How To Play Instructions: If any
LUCKY NUMBERS matches a number in any of the 10 sections, multiply the prize by
the number in the arrow for that section.
Overall odds are 1:2.49. The player has a chance to win up to
$100,000.
Power Play Promotion “Power Play 10X”
Mike Helppie introduced the
Power Play Promotion, “Power Play 10x”.
PowerPlay is a way to multiply
your prize by 2, 3, 4 or 5 for an extra $1 per play.
All Powerball states are
participating in this promotion.
The player would buy any Powerball
PowerPlay ticket at any Idaho Lottery Retailer. To buy a Powerball
PowerPlay ticket, the player would need to mark the
“PowerPlay” box indicated on the play
slip, or ask the clerk to add it to your quick pick ticket. Then the player will check their tickets
after the Powerball drawing to see if they have
won. In the month of April, if they
win a non-jackpot prize, they have played the PowerPlay
and the number 10 multiplier is selected, the player could win up to 10 times
the prize won, up to $2 million.
The promotion lasts for eight draws until it gets hit, if
it does not get hit, it keeps going until it does.
6. SET SPECIAL
MEETING OR TELECONFERENCE FOR JUNE 28, 2007 TO APPROVE THE SCRATCH TICKET
VENDOR RECOMMENDATION:
A Teleconference for Thursday, June 28th, 2007
at 10:00 a.m. was set for approval of the Instant Ticket Vending Machine (ITVM) RFP and approval of the FY07
Dividend.
10:30 a.m. – Break
10:42 a.m. - Meeting back in session
7. 10:30 a.m.
– ORAL ARGUMENT IN THE MATTER OF THE PETITION OF KUNA BOXING CLUB, INC.
DOCKET NO.: ISLC 2006-1:
Kay Christensen, with the Idaho Attorney General’s
Office; called the proceeding in matter of Kuna Boxing Club Incorporated to
order.
Pursuant to notice of January30, 2007 establishing a
10:30 a.m. hearing time, March 13, 2007 at the Idaho Lottery Commission Office, 1199 Shoreline Lane, Suite 100, Boise, Idaho 83702. Here pursuant to the appeal of Kuna
Boxing Incorporated. Following an extensive
search of the premises, there was no on in attendance from the Kuna Boxing
Club.
Jeremy Chou, Deputy Attorney General for the State of Idaho, stated the case
is related to several past license revocation proceedings, all involving Big
Bucks Bingo. Two organizations have
been operating at Big Bucks Bingo for several years. One, Sons & Daughters, owned by Bill
Tway and Bob Ford, two, Snake River Boxing owned by Phill Whiting.
The Commission revoked Sons & Daughters Bingo license
because Mr. Tway and Mr. Ford, the directors at that
time, were indirectly receiving funds from the Bingo operations. The Commission revoked the Snake River
Boxing License because they failed to keep financial records in accordance with
the Bingo statute. Those decisions
were recently upheld by the Idaho Supreme Court. In addition to what the Commission
found, the court determined the business relationship between the non-profits
and Z & J Service, Incorporated, a for-profit company, were also run by Mr.
Tway and Mr. Ford. Bingo statutes prohibit private
businesses to conduct Bingo.
Jeremy provided the Commission with a copy of the Supreme
Court’s decision for their review to be appended in the transcript. During the litigation with Snake River
Boxing and Sons & Daughters, Kuna Boxing approved Mr. Whiting for a license
to conduct Bingo on November
5, 2004. The Idaho
Lottery denied the application based on his connections with Snake River Boxing
and Sons & Daughters. A hearing
officer was appointed and a hearing date was set for May 17, 2005. Before the hearing occurred, the parties
agreed to stay the proceedings pending the outcome of Sons & Daughters and
Snake River Boxing case.
On February 6, 2006, Kuna Boxing again, submitted another
application for a Bingo License.
The application still listed Mr. Whiting the president and Mr. Tway and Bob Ford as person responsible for managing
Bingo.
On February 23, 2006, the Lottery denied the second license
application based on it’s connection with
individuals that violated the Bingo statutes. Specifically,
Mr. Whiting, the president of Kuna Boxing was also the president of Snake River
Boxing at the time Snake River Boxing’s license
was revoked.
Mr. Whiting admitted during his
testimony that he was associated with Snake River Boxing and was still the
president. During the hearing, Mr.
Whiting also testified that Kuna Boxing would be holding its bingo operations at
Big Bucks Bingo, the same location as Snake River Boxing and Sons &
Daughters and that Kuna Boxing intended to agree with Z & J to operate the
facility. Mr. Tway
and Mr. Ford owns Z & J.
I.C. 67-7712 says that any license “issued pursuant to
this chapter shall be suspended or revoked by the state lottery. If it is found that the licensee has
violated any provision of this chapter or any rule of the lottery commission. ” The
Lottery denied the application because of Mr. Whiting’s
connection with Snake River Boxing.
The hearing officer determined
that the lottery could revoke a license on that basis, but couldn’t deny
the application of the license. In
order to address the legal issues raised by the hearing officer, the Commission
granted the license, immediately suspended it and then revoked.
It is within the
Commission’s discretion to do both.
With respect to the denial of Kuna Boxing’s
application, the statutes can be read together to allow the Commission not only
the ability to revoke a license because of Mr. Whiting’s
connection with Snake River Boxing, but also to deny the license application
because of Mr. Whiting’s connection with Snake
River Boxing. Generally, you need
more reason to revoke a license to deny. The Hearing officer’s recommendation
is the opposite. In addition, the
statutes should be interpreted to avoid an absurd result. The Commission should
have the power to deny applications on the same grounds that it can revoke
applications. Any other
interpretation would require the Commission to grant, to suspend and revoke
which is not the most efficient process.
The granting of the application
is within the Commission’s discretion. The suspension of a license can be had
if there is an emergency and revocation if there is support for
revocation. In this case, there is
no real argument that the Commission has a basis for suspension and
revocation.
Kuna Boxing raised the issue of
suspension without a hearing. It’s fair to declare an emergency here
because Mr. Whiting testified that Kuna Boxing would operate under the same
conditions at Big Bucks Bingo under Mr. Tway and Mr.
Ford as Snake River Boxing and Sons & Daughters. That presents an immediate danger to the
public welfare.
Mr. Tway
and Mr. Ford have been indicted for conspiracy to defraud and filing false tax
reports in relationship to the bingo games at Big Bucks Bingo.
Regardless of the denial of
application for Kuna Boxing or the granting, suspension and revocation route,
the Commission in its conclusions of law should make both analysis.
The proceeding will again be appealed.
Making an analysis in both situations will give the District Court an
opportunity to address both denial and revocation.
The hearing was scheduled for 10:30 a.m., pertaining to
both the indictment and the decision of the Sons & Daughters case. The Commission will take the matter
under advisement. The decision will
be issued under both parties.
Commissioner Fisher recommended to accept the report from Kay
Christensen and to move forward with the recommendation, Commissioner Keyes
seconded. The motion was passed
unanimously.
Kay Christensen adjourned the proceeding in the matter of
Kuna Boxing Club Incorporated at the Idaho Lottery Commission Office, 1199 Shoreline Lane, Suite 100, Boise, Idaho 83702 at 10:53 a.m.
8. SCHEDULING
OF NEXT TWO COMMISSION MEETINGS – MAY 15TH AND JULY (TBA):
The next scheduled Commission Meetings were set for May 15, 2007 at
10:00 a.m. The July 2007 Commission Meeting is to be
announced. Genn will be in
touch with each Commissioner to confirm the meetings. Commissioner Fisher motioned to approve
the set meeting dates, Commissioner Keyes seconded. The motion was passed unanimously.
9. NEW
BUSINESS:
Sales Report: See attached report for sales prepared by
Steve Woodall, Diputy Director of Administration.
Deputy Director for Administration, Steve Woodall,
presented the Commission with comparative fiscal-year-to-date sales reports for
the periods ended February
28, 2007 and 2006 showing that we were $4 million behind last
fiscal year’s sales. A
similar report for the periods ended March 10, 2007 and 2006, indicated that the sales were catching up and we
were $3.4 million behind last year.
Deputy Director Woodall also presented the Commission with a
month-by-month sales breakdown for Fiscal year’s 2007 and 2006 which
illustrated the fact that the record sales for fiscal year 2006 included two
months-October and February-which were the only two $15 million sales months in
the Lottery’s history.
Mr. Woodall stated that with two $100 million plus jackpots in the
remaining four months of the fiscal year 2007, the projected sales goal of $135
million can still be met.
11:12 a.m. -
Commission took break to bring in visitors and lunch early.
Commissioner
Justice-Edwards left the meeting (via teleconference)
11:22 a.m. -
Commission meeting back in session.
10. 12:30 p.m.
WORKING LUNCH – INFORMATIONAL SESSION FOR NEW COMMISSIONERS AND DIRECTOR
WITH RANDY SITTON WITH NATIONAL INDIAN GAMING COMMISSION:
Randy Sitton with National
Indian Gaming (NIGC) presented the Commission with
information on Indian Gaming Regulatory Act and Indian Gaming in Idaho. Mr. Sitton
explained the role of NIGC, classes of gaming, gaming
compacts, and the history of Tribal Gaming in the United States.
Commissioner McLeod asked who runs the casinos. Mr. Sitton
responded it was the tribes. They
can run them themselves, hire professionals to run the casino, or contract out
to management companies with specialty in the area.
Commissioner Fisher says it is the Lottery’s responsibility
to monitor Class III gaming on tribal lands, including tribal video gaming
machines per Proposition One (2002).
He added the Lottery is under staffed for this purpose.
Director Anderson wanted to know if there is a data base
that shows the number of machines. Mr.
Sitton responded that the data is with the Idaho
Secretary of State and that the federal Johnson Act requires video gaming
machine vendors be registered in order to track authorization to ship the
machines.
At approximately 12:30 p.m. representatives from Kuna
Boxing arrived for the hearing.
They were informed the hearing had already taken place and left the
premises.
11. ADJOURNMENT:
There being no other business to discuss, Commissioner
McLeod made a motion to adjourn and Commissioner Keyes seconded. With the vote being unanimous, the
meeting adjourned at 12:45 a.m.
CERTIFICATION:
I hereby certify that the foregoing minutes are a true
and correct record of the actions and decisions made by the Lottery Commission
on February 20,
2007.
__________________________________ ___________________
Jeff Anderson
Date
Director
$32 MILLION!
$1
MILLION
$1,615,000
