February 7, 1997
SMOKE SIGNALS
Fourth Quarter 1 996
During the fourth quarter of 1 996, the Commissions workload
was dominated by the preparation of an audit plan for an upcom
ing compliance audit in the first quarter of 1997, drafting of a
proposed TribeState Compact, and continuing with the licens
ing of new employees and renewing the licenses of existing Ca
sino staff. Additionally, the Commission began drafting regula
tions governing the conduct of new games which are anticipated
to be an outcome of the Compact. During the quarter, the Com
mission acted on 149 new employee gaming licenses and 129 gam
ing license renewals. Of the applications for renewal, all were ap
proved; however, the Commission did impose or'continue condi
tions on 13 licensees and discontinue previously approved, 6 de
nied and 5 referred back to staff for additional investigation. To
address the heavy workload during the second quarter, the Com
mission continued to meet at least twice monthly.
In addition to agenda items pertaining to personnel licensing
applications, the Commission's agenda also included die follow
ing items relating to the licensure of Major, Minor and Sensitive
Procurement Contractors:
OCTOBER 18, 1996
GENERAL SESSION MEETING
1) Aristocrat, Inc., Reno, NY Approved an application for renewal
of a Major Procurement Contractor license until the regularly scheduled
Commission meeting in October 1997, subject to the following condi
tions: 1. Aristocrat, Inc. Is to supply the Grand Ronde Gaming Commission
with copies of all future filings with the Nevada State Gaming Control
Board; and
2. Unaudited internal financial statements are to be submitted to the
Grand Ronde Gaming Commission for each quarter.
2) Paul-Son Gaming, Las Vegas, NV. Approved an application for
renewal of a Sensitive Procurement Contractor License until the regularly
scheduled Commission meeting in October 1 997.
3) Wallace Business Products, Portland, OR. Approved an applica
tion for a Sensitive Procurement Contractor License until the Commis
sion regularly scheduled meeting in January 1 997.
NOVEMBER 15, 1996
GENERAL SESSION MEETING
1) Summit Casino Products, Colorado Springs, CO. Denied an
application seeking licensure as a Sensitive Procurement Contractor due
to the applicant's failure to pay required licensing fees and file requested
documentation.
2) ZDI Gaining, Inc., Vancouver, WA. Approved an application for
a Major Procurement Contractor License until the Commission's regu
larly scheduled meeting in November 1 997, subject to the following con
ditions: 1. If a family members and or employees obtain a fifteen percent (15)
or more ownership interest in ZDI Gaming, Inc., the licensee must com
plete a personal disclosure questionnaire and supply all required attach
ments to the Grand Ronde Gaming Commission; and
2. Failure by the licensee to comply with Regulation 5.01 1,12. will
result in disciplinary action by the Grand Ronde Gaming Commission.
3) Innovative Gaming, Inc., Reno, NV. Approved an application
seeking temporary licensure as a Sensitive Procurement Contractor untd
the Commission's regularly scheduled meeting in February 1 997.
4) Mikohn Gaming, Inc., Las Vegas, NV In compliance with their
licensing conditions, the licensee provided an update to the Commission
ers on the status of their efforts to correct certain deficiencies in their
centralized accounting system. The next update is to be presented at the
Commission's regularly scheduled meeting in February 1 997.
DECEMBER) 1996
GENERAL SESSION MEETING
1) Shuffle Master Gaming, Las Vegas, NV Approved an application
seeking temporary licensure as a Sensitive Procurement Contractor. Said
licensure is to expire at the Commission's regularly scheduled meeting in
March 1997.
2) Internal GarneTechnologies, Inc., dba IGT, Las Vegas, NV Re
ferred back to staff Application for licensure as a Major Procurement
Contractor to be rescheduled for the Commission's next regularly meeting
in January 1997.
3) Sodak Gaming, Inc., Native American Wide Area Progressive
System Contract. Referred back to staff Application for licensure as a
Major Procurement Contractor to be rescheduled for the Commission's
next regularly scheduled meeting in January 1 997.
4) Spirit Mountain Casino, Due Diligence Committee - Status Re
port to Commissioners. Testimony was presented by Bruce Lattin, Secu
rity Manager, and member of the gaming facility's Due Diligence Com
mittee. Committee policies and procedures governing the review and ap
proval of non-gaming vendors were presented to the Commission.
Regulation Changes
The Gaming Commission is continuing to refine the Regulations. The
following modifications, amendments and additions were approved by
the Commissioners during the third quarter of 1 996:
OCTOBER 18, 1996
REG. 3.020 Tribal class III gaming license.
4. Tribal class III gaming license shall be reviewed on the third anniver
sary date from original licensure. An updated investigation will be per
formed by the Director and an investigative report rendered which will
address, at a minimum, the following issues:
(a)The licensee's compliance with the gaming regulations and mini
mum internal control standards; (b) The licensee's compliance with all
applicable federal and state regulations and statutes; (c) An analysis of
the licensee's financial position; and (d) Any other issues which may re
flect on the suitability of the gaming enterprise to remain licensed.
5. A gaming license shall be issued within ten days of licensure or
license renewal and such license shall be conspicuously displayed and be
available for public inspection. Said license shall identify the licensee, the
authority by which the Commission has to issue such licenses and the
license's expiration date.
REG. 4.030, 2., c. and d.
Director petitioned the Commissioners to render guidance and inter
pretation of the referenced regulation as same applies to the permanent
licensure of Student Intern Employees.
Commission Consensus: It shall be the policy of the Commission to
conditionally license all Low Security Employees under eighteen (1 8) years
of age in such a way as to restrict their exposure to gaming activities. The
employee identification badge of all such individuals will be color coded
in such a way as to identify them as minors under the age of eighteen
(18). Furthermore, such individuals will be precluded from licensure as
High Security Employees and Primary Management Officials.
REG. 4.030, 2., c. and d.
Director petitioned the Commissioners to render guidance and inter
pretation of the referenced regulation as same applies to the licensure of
maintenance personnel as High Security Employees.
Commission Consensus: It shall be the policy of the Commission not
to license a class of employees at a level of licensure inconsistent with
Regulations 3 and 4. However, Commission staf f was directed to assist
Casino management in obtaining background information on any em
ployee whenever such an inquiry is deemed by management to be perti
nent to the maintenance of the Casino's integrity and security.
REG. 24.050 Maximum table bet limits.
(d) All employees hired on or before January 22, 1 996, in a supervi
sory capacity over table games, including pit bosses, shift supervisors, floor
supervisors and table games managers, must have a minimum of 240
hours of dealing experience in a live game environment, or a combination
of a minimum of forty (40) hours of dealing experience in a live gaming
environment with the remaining hours consisting of supervisor training
(one supervisor training hour will equal two hours of live dealing experi
ence), before December 31, 1996,
(e) All employees hired after January 22, 1 996, in a supervisory capac
ity over table games, including pit bosses, shift supervisors, floor supervi
sors and table games managers, must have a minimum of 240 hours deal
ing experience in a live gaming environment, or a combination of a mini
mum of forty (40) hours of dealing experience in a live gaming environ
ment with the remaining hours consisting of supervisor training (one
supervisor training hour will equal two hours of live dealing experience).
NOVEMBER 15, 1996
REG. 5.050 Prohibiting against sharing in gaming profits.
Director petitioned the Commissioners to waive the above regulation
as same applies to International GameTechnology, Inc. and Sodak Gam
ing, Inc. receiving a percentage of gaming revenue. Specifically, the waiver
is intended to facilitate an agreement between the gaming facility and the
referenced entities linking certain VLT's located within the gaming facil
ity to the Native American Wide Area Progressive System.
Commission Decision: Approved; Vote: 5 - 0.
DECEMBER SO, 1996
REG. 4.404 Application, notices, statements and reports; con
tents; amendments; incorporation by reference; proceedings not to have
substantive implications.
6. In all licensing matters or issues of suitability, the director will trans
mit a letter of notification informing the applicant of the Commissions
determination in accordance with the following:
(a)The director shall cause a letter of notification to be forwarded to
the applicant within ten (10) working days when the determination is to
grant an unconditional approval, (b) In all other licensing decisions, the
director will cause a letter of notification to be forwarded to the applicant
within three (3) working days.
REG. 5.01 1 Grounds for disciplinary action.
1 2. Failure to prompdy communicate any information in which the
licensee becomes aware of that may reflect upon the suitability of a per
son to be licensed under the criteria of Regulation 3.030(a) through (g)
and Regulation 3.040 (a) through (j),
REG. 5.050 Prohibition against sharing in gaming profits.
It is prohibited for any person to share in the profits of any approved
game, except for:
1. IGT and Sodak Gaming, Inc.'s Native American Wide Area Progres
sive System.
REG. 23.075 Dealer training requirements.
2. The Spirit Mountain Dealer Training Program curriculum is to be
approved by the director before implementation. Any changes to the cur
riculum also require director approval.
3. The curriculum should be designed to provide students with the
knowledge and skills necessary to satisfy entry level requirements estab
lished by the gaming fiictlify and the Commission.
4. The instructor of the Dealer Training Program shall be an autho
rized or certified instructor.
5. Card game trainers, at a minimum, shall demonstrate sufficient skills
and meet minimum requirements that are consistent with industry stan
dards in the area of card games. Trainers shall have graduated from a
training school, academy or college recognized by the industry as having
expertise in the areas of casino management and card games, or have an
acceptable substitute of actual experience and references and demonstrated
ability to teach card game skills and or card game theory and grimes pro
tection. REG. 24.050 Maximum table bet limits.
(g)The Spirit Mountain Dealer Training Program curriculum is to be
approved by the director before implementation. Any changes to the cur
riculum also require director approval, (h) 1 he curriculum should be
designed to provide students with the knowledge and skills necessary to
satisfy entry level requirements established by the gaming facility and the
Commission. (I)The instructor of the Dealer Training Program shall he
an authorized or certified instructor, (j) Card game trainers, at a mini
mum, shall demonstrate sufficient skills and meet minimum requirements
that are consistent with industry standards in the area of card games.
Trainers shall have graduated from a training school, academy or college
recognized by the industry as having expertise m the areas of casino man
agement and card games, or have an acceptable substitute of actual expe
rience and references and demonstrated ability to teach card game skills
and or card game theory and games protection.
Minimum Internal Control Standards.
Recommended MinimumTraining Standards for Class III Table Gaines,
DELETED.
Minimum Internal Control Standards.
Jackpot Payouts, Slot Fill and Short Pays.
52. For jackpot payouts and slot fills, the three part payout form
documentation includes the following information: a. Date andTime; b.
Machine number; c. Dollar amount of payout or slot fill (both alpha and
numeric). Note: Alpha is optional if another unalteredable method is
used for evidencing the amount of jackpot of rill; d. Game outcome (in
cluding reel symbols, card values and suits, etc.) for jackpot payouts only;
e. Signatures of at least two employee (one employee and patron for loca
tions with less than 20 machines) verifying and witnessing the payout or
slot fill. Note: On graveyard shifts (eight hour maximum) payoutsfills
less than $100 can be made without the payoutfill being witnessed if
the second person signing can reasonably verify that a payoutfill is justi
fied ; f Preprinted on concurrently-printed sequential numbers. Note:
Except for jackpot payouts in excess of $1,200, licensees that use Video
Lottery Terminals (VLT's) in which jackpot payouts are validated may
utilize the VLT payout slip to document the jackpot payout transaction.
53. Jackpot payouts over $1 ,200 require the signature and verification
of a supervisory or management employee independent of the VLT department.