- Grand Falls Casino February Online Contest 2020
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There's always something new and exciting happening at Grand Falls! Find out about upcoming gaming promotions, dining specials, entertainment and more! Grand Falls Casino & Golf Resort® - Larchwood, Iowa - Grand Falls Casino & Golf Resort®.
The Kehl family business started in the 1960’s when Bob and Ruth Kehl bought and ran a café in downtown Dubuque, Iowa. By the 1970’s they were also in the catering business and had purchased a 150-passenger steamwheeler, “River Rogue” for dinner cruises.
In 1977, the Kehls commissioned a 377-passenger “Spirit of Dubuque.” The Mississippi Belle and Mississippi Belle II followed in the 80’s. In 1986, the business expanded to West Virginian with the West Virginia Belle, a 1000-passenger boat.
Hard work creates success. Bob and Ruth Kehl received the National Small Business of the Year Award from President Reagan in 1986, beating out Microsoft for the honor.
It’s no secret the Kehls were opposed to the idea of gambling on the rivers when the idea was floated in the Iowa Legislature in the late 1980’s because of the threat to their riverboat business. They soon figured out gambling was likely coming. No one was in a better position to be part of this new industry.
The Kehl family has been involved in gaming since its inception in the state of Iowa. On March 8, 1990, the Dubuque Casino Belle, Inc. owned and operated by Robert and Ruth Kehl, was granted the first riverboat gaming operator’s license in Iowa and the license was issued on April 1, 1990. The Dubuque Casino Belle became the first American-flagged vessel to offer gambling cruises in the United States.
The Kehls received their second license in 1991 for the Mississippi Belle II, which started riverboat gaming operation on June 1 in Clinton, Iowa.
The Kehl’s had interest in and operated a total of four riverboat casinos in the Midwest; Dubuque Casino Belle, the Mississippi Belle II, Catfish Bend Casino, Fort Madison/Burlington, Iowa and Saint Joe Frontier Casino, St. Joe, Missouri.
Today, the Kehl’s have majority ownership in Elite Casino Resorts, LLC, which owns and operates Riverside Casino and Golf Resort® in Washington County which opened in 2006, Grand Falls Casino Resort® in Lyon County, Iowa, which opened in 2011, and Rhythm City Casino Resort®, which reopened in 2016. Riverside received one of only four new Iowa gaming licenses awarded by the Iowa Racing and Gaming Commission out of ten applications in 2005. Grand Falls was the only license awarded by the Iowa Racing and Gaming Commission of four applications in 2010. In 2014, the Kehl’s became owners of the existing Rhythm City Casino in Davenport and opened a land-based casino resort to replace the existing riverboat in June 2016.
1. APPROVE AGENDA
2. APPROVE MINUTES – From March 24, 2020 and April 7, 2020 Commission Meetings
3. ANNOUNCEMENTS
A. May 2020 – No Meeting
B. June 4, 2020 – Grand Falls Casino Resort, Larchwood (Submissions due by May 20, 2020)
C. Proposed Meeting Dates for Fiscal Year 2021
4. ELDORADO RESORTS, INC. – Request for Approval of Shelf Application for Debt Financing
5. IOC BLACK HAWK COUNTY, INC. – Request for Approval of Revised Security Plan
6. DRAFTKINGS, INC. – Request for Approval of Esports as a Contest Authorized Pursuant to 491-14.9(1)
7. IOWA GAMING ASSOCIATION – Request for Administrator Approval of 491-5.4(8)a(2) Agreements
8. CONTRACT APPROVALS (OSV – OUT OF STATE VENDOR; RP – RELATED PARTY)
A. SCE Partners, LLC
1. Avery Outdoor – Billboard Advertising
2. Leroy Hanson Co., Inc. d/b/a Creative Embroidery – Apparel with Hard Rock Logo
3. Loffredo Fresh Produce Co., Inc.
4. S & S Healthcare Strategies – Third Party Claims Administrator (OSV)
5. Shift4 Payments, LLC – Credit Card Processing (OSV)
6. US Foods, Inc. – Food Supplier
B. Wild Rose Emmetsburg, L.L.C.
1. Mediacom Business Solutions – High Speed Internet Services
2. Midstates Builders – Construction Project Phase 1
3. Liebl Marketing Group – Marketing Agency for Advertisement
C. HGI-Lakeside, LLC
1. Brooner & Associates – Construction for Sports Book and Other Areas (OSV)
2. King Food Service – Food and Supplies
3. Liberty Fruit Co., Inc. – Fresh Produce (OSV)
4. Loffredo Fresh Produce Co., Inc. – Fresh Produce
5. Sierra Health & Life Insurance – Health Insurance for Employees (OSV)
6. Sysco Iowa, Inc. – Food and Supplies
7. The Waldinger Corporation – Repairs and Maintenance Work on Property
D. IOC Black Hawk County, Inc. – Altofer – Scheduled Maintenance Plan for Power Generation System
E. Grand Falls Casino Resort, LLC
1. American Direct – Hotel Addition: Doors and Hardware
2. Bonilla Masonry – Hotel Addition: Masonry Material and Labor (OSV)
3. Centurion Stone of Iowa – Hotel Addition: Masonry Material and Labor
4. Harris Golf Cars – Golf Cart Fleet Replacement
5. JC Toland Painting – Hotel Addition: Painting and Wallcoverings
6. Lange Sign Group – Main Entrance Pylon Display Repair and Pool Display Purchase
7. Peska Construction, Inc. – Hotel Addition: Countertops and Sills (OSV)
8. Sands Drywall, Inc. – Renovation Project: Sportsbook Drywall and Framing (OSV)
F. Riverside Casino & Golf Resort, LLC
1. BetWorks (US), LLC – Sports Betting Technology and Services Agreement (OSV)
2. Disabled American Veterans (DAV) – National Veterans TEE Tournament Revenue Agreement (OSV)
3. Kluesner Construction, Inc. – Asphalt Repair and Overlay on Parking Area and Driveway
G. Harveys Iowa Management Co., Inc. - NYX Digital Gaming, LLC – Revenue Sharing Agreement for Sportsbook Equipment (OSV)
H. Iowa West Racing Association d/b/a Horseshoe Casino
1. All Star Premium Products – Promotional Items (OSV)
2. DirecTV d/b/a Sports Direct LLC – Sports Programming
3. Eagle Promotions – Promotional Items (OSV)
4. Milner Marketing Corporation – Promotional Items (OSV)
5. NYX Digital Gaming, LLC – Revenue Sharing Agreement for Sportsbook Equipment (OSV)
6. Road Show Logistics – Promotional Items
7. The Aaron Group – Promotional Items
I. Prairie Meadows Racetrack & Casino, Inc.
1. Global Payments – Casino Guest Check Cashing/Guarantee Service (OSV)
2. ODS Technologies d/b/a TVG Network – Horse Race Advance Deposit Wagering Service and Televising Horse Races and Marketing Ventures (OSV)
3. United Tote Company – Pari-Mutuel Wagering Totalisator Services (OSV)
9. PUBLIC COMMENT
10. ADMINISTRATIVE BUSINESS – Approval of Horse Racing Promotion Fund
11. ADJOURN
The Iowa Racing and Gaming Commission (IRGC) conducted a Zoom Online meeting on April 16, 2020 from the IRGC Office located in Des Moines, Iowa. Commission members present were Kris Kramer, Chair; Carl Heinrich, Vice Chair; and members Julie Andres, Pennie Gonseth Cheers and Jeff Lamberti.
APPROVE AGENDA: Chair Kramer called the meeting to order at 8:30 AM, and requested a motion to approve the agenda. Commissioner Heinrich moved to approve the agenda. Commissioner Andres seconded the motion, which carried unanimously.
APPROVE MINUTES: Chair Kramer requested a motion on the minutes from the special Commission meetings held on March 24, 2020 and April 7, 2020. Commissioner Gonseth Cheers moved to approve the minutes as submitted. Commissioner Andres seconded the motion, which carried unanimously.
ANNOUNCEMENTS: Chair Kramer called on Brian Ohorilko, IRGC Administrator. Mr. Ohorilko advised there would be no meeting in May. The next Commission meeting will be held June 4th at Grand Falls Casino Resort in Larchwood; submissions for the agenda are due in the Commission office by May 20th.
Mr. Ohorilko read the list of meeting dates and locations for FY 2021, which are:
July 9, 2020 Prairie Meadows Racetrack & Casino, Altoona
August 27, 2020 Riverside Casino & Golf Resort, Riverside
October 15, 2020 Hard Rock Hotel & Casino, Sioux City
November 19, 2020 Isle of Capri Bettendorf, Bettendorf
January 21, 2021 Prairie Meadows Racetrack & Casino, Altoona
March 4, 2021 Prairie Meadows Racetrack & Casino, Altoona
April 15, 2021 Harrah’s, Council Bluffs
June 3, 2021 Catfish Bend Casino, Burlington
ELDORADO RESORTS, INC.: Brett Yunker, Chief Financial Officer, stated Eldorado is taking prudent steps to preserve their liquidity during this time, but is well situated to work through the impact of the virus and is not concerned about the long-term impact to their business. Mr. Yunker stated the transaction with Caesars is progressing; they are working through the FTC approval process and remaining state regulatory approvals. Mr. Yunker requested approval of the Shelf Application for Debt Financing.
Hearing no comments or questions, Chair Kramer requested a motion. Commissioner Lamberti moved to approve the Shelf Application for Debt Financing as submitted. Commissioner Heinrich seconded the motion, which carried unanimously.
IOC BLACK HAWK COUNTY, INC.: Thomas Roberts, General Manager, requested approval of the revised security plan as submitted.
Hearing no comments or questions, Chair Kramer requested a motion. Commissioner Andres moved to approve the revised security plan as submitted. Commissioner Gonseth Cheers seconded the motion, which carried unanimously.
DRAFTKINGS, INC.: Chris Cipolla, requested the Commission approve electronic sports (esports) as a permissible sport on which fantasy sports contests may be offered. He stated esports are individual or team competitions in which participants exhibit elite physical talent and skill. Esports athletes undergo intensive training and practice regimens, practicing as a team 6-12 hours per day with coaches and physical trainers, and consult with nutritionists to insure peak competitive performance. Mr. Cipolla state professional esports teams and organizations exist across the globe; professional players receive lucrative salaries, endorsements and prize money and teams are sponsored by Fortune 500 companies. He noted the most popular esports events have massive followings. It is estimated more than 350 million individuals around the world watched esports both online and in person in 2018. Based on these facts, DraftKings believes esports are no different than any other sport that has been approved by the Commission and is a permissible sport on which fantasy sports contests may be offered. He advised that of the states where fantasy sports contests are offered, Iowa is the only state in the nation that does not allow any form of paid esports fantasy sports contests. It is DraftKing’s goal to offer their customers innovative contests that allow them to apply their knowledge and skills in new and engaging ways and feel esports will provide the opportunity in Iowa as is the case in every other regulated state in which DraftKings operates.
Grand Falls Casino February Online Contest 2020
Chair Kramer asked Jeff Peterzalek, Assistant Attorney General, if there were any legal issues related to this matter. Mr. Peterzalek advised esports does fit within the definition of fantasy sports contests and could be allowed. He stated that just because something can be allowed, it does not mean it must be allowed. He recommended that if the Commission allows esports, they should consider each esport application individually on a case-by-case basis to determine if it meets staff approval.
Wes Ehrecke, President of the Iowa Gaming Association, concurred that esports are a sanctioned sporting event with professional, collegiate, and international teams, and would fit within the definition of Iowa Code Section 99F.1. He requested that should the Commission approve esports for the fantasy sports operators that they would also allow the casino sportsbooks to allow wagers on the esport teams. He noted fantasy wagers are typically on the players that form the teams, however, 99F states an authorized sporting event means a professional sporting event, collegiate sporting event, or an international sporting event.
Mr. Cipolla stated DraftKing’s request, and the agenda item, is specifically limited to daily fantasy sports. He noted DraftKings submitted a legal analysis and policy justification as to why esports daily fantasy sports contests should be approved. He requested the agenda item be entertained on its own merits without any ancillary issues being rolled into the matter.
Mr. Ehrecke expressed his understanding that some of the casino sportsbooks had submitted requests to include esports. He requested the Commission include the approval for the casino sportsbooks in any motion.
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Chair Kramer thanked both individuals for providing information concerning esports. She noted the Commission had only learned the day before that there might be a problem. Due to the pandemic and the short time the Commission has had to review information, Chair Kramer stated the Commission would like the ability to review this matter in more detail.
IOWA GAMING ASSOCIATION: Mr. Ehrecke requested the Commission grant Administrator Ohorilko temporary authority to approve Requests for Transactions that come forward with regard to financial transactions in response to Covid-19 matters and the shut-down of the facilities. He stated the facilities would need the ability to react quickly and would not have the ability to wait until the June Commission meeting for approval.
Hearing no comments or questions, Chair Kramer requested a motion. Commissioner Lamberti moved to allow the administrator or administrator’s designee to approve 491-5.4(8)a(2) qualifying agreements for certain types of debt transactions until June 3, 2020. Commissioner Gonseth Cheers seconded the motion, which carried unanimously.
CONTRACT APPROVALS: Chair Kramer advised the Commission would consider all of the contracts submitted by the facilities as set forth below:
- SCE Partners, LLC
- Avery Outdoor – Billboard Advertising
- Leroy Hanson Co., Inc. d/b/a Creative Embroidery – Apparel with Hard Rock Logo
- Loffredo Fresh Produce Co., Inc.
- S & S Healthcare Strategies – Third Party Claims Administrator (OSV)
- Shift4 Payments, LLC – Credit Card Processing (OSV)
- US Foods, Inc. – Food Supplier
- Wild Rose Emmetsburg, L.L.C.
- Mediacom Business Solutions – High Speed Internet Services
- Midstates Builders – Construction Project Phase 1
- Liebl Marketing Group – Marketing Agency for Advertisement
- HGI-Lakeside, LLC
- Brooner & Associates – Construction for Sports Book and Other Areas (OSV)
- King Food Service – Food and Supplies
- Liberty Fruit Co., Inc. – Fresh Produce (OSV)
- Loffredo Fresh Produce Co., Inc. – Fresh Produce
- Sierra Health & Life Insurance – Health Insurance for Employees (OSV)
- Sysco Iowa, Inc. – Food and Supplies
- The Waldinger Corporation – Repairs and Maintenance Work on Property
- IOC Black Hawk County, Inc. – Altofer – Scheduled Maintenance Plan for Power Generation System
- Grand Falls Casino Resort, LLC
- American Direct – Hotel Addition: Doors and Hardware
- Bonilla Masonry – Hotel Addition: Masonry Material and Labor (OSV)
- Centurion Stone of Iowa – Hotel Addition: Masonry Material and Labor
- Harris Golf Cars – Golf Cart Fleet Replacement
- JC Toland Painting – Hotel Addition: Painting and Wallcoverings
- Lange Sign Group – Main Entrance Pylon Display Repair and Pool Display Purchase
- Peska Construction, Inc. – Hotel Addition: Countertops and Sills (OSV)
- Sands Drywall, Inc. – Renovation Project: Sportsbook Drywall and Framing (OSV)
- Riverside Casino & Golf Resort, LLC
- BetWorks (US), LLC – Sports Betting Technology and Services Agreement (OSV)
- Disabled American Veterans (DAV) – National Veterans TEE Tournament Revenue Agreement (OSV)
- Kluesner Construction, Inc. – Asphalt Repair and Overlay on Parking Area and Driveway
- Harveys Iowa Management Co., Inc. - NYX Digital Gaming, LLC – Revenue Sharing Agreement for Sportsbook Equipment (OSV)
- Iowa West Racing Association d/b/a Horseshoe Casino
- All Star Premium Products – Promotional Items (OSV)
- DirecTV d/b/a Sports Direct LLC – Sports Programming
- Eagle Promotions – Promotional Items (OSV)
- Milner Marketing Corporation – Promotional Items (OSV)
- NYX Digital Gaming, LLC – Revenue Sharing Agreement for Sportsbook Equipment (OSV)
- Road Show Logistics – Promotional Items
- The Aaron Group – Promotional Items
- Prairie Meadows Racetrack & Casino, Inc.
- Global Payments – Casino Guest Check Cashing/Guarantee Service (OSV)
- ODS Technologies d/b/a TVG Network – Horse Race Advance Deposit Wagering Service and Televising Horse Races and Marketing Ventures (OSV)
- United Tote Company – Pari-Mutuel Wagering Totalisator Services (OSV)
Hearing no comments or questions concerning any of the submitted contracts, Chair Kramer requested a motion. Commissioner Heinrich moved to approve all of the contracts as listed on the agenda. Commissioner Andres seconded the motion, which carried unanimously.
PUBLIC COMMENT/ADMINISTRATIVE BUSINESS: As there was no Public Comment, Chair Kramer called on Mr. Ohorilko for Administrative Business. Mr. Ohorilko advised there is $2,507.90 available for distribution in the Horse Racing Promotion Fund. He stated the Iowa Thoroughbred Owners and Breeders Association (ITBOA) has submitted the necessary information to receive the funds. He recommended approval of the distribution of the funds to the ITBOA.
Hearing no comments or questions, Chair Kramer requested a motion. Commissioner Gonseth Cheers moved to approve distribution of the Horse Racing Promotion Fund to the ITBOA. Commissioner Andres seconded the motion, which carried unanimously.
Chair Kramer noted this is the last meeting for Commissioners Jeff Lamberti and Carl Heinrich. She stated the loss of the knowledge and experience of these two will be a great loss to the Commission. She indicated she has enjoyed the ability to meet different people and creating lifetime friendships. She thanked them for their friendship.
Mr. Ohorilko stated both individuals have had a positive impact on the gaming industry, having served on the Commission for nine years guiding the agency and gaming industry through a number of challenging issues including, but not limited to: implementation of sports wagering and fantasy sports contests – both retail and online; significant disputes between non-profit and operator partners; three different license application periods for eight separate proposals filed by potential applicants; the facilitation of the greyhound cessation program; implementation of advanced deposit wagering for pari-mutuel racing; casino stock purchases; casino bankruptcies; Commission studies created in-house for internet poker and internet exchange wagering and Request for Proposals for Commission studies for the casino markets, greyhound cessation fund, and socio-economic impact of gambling. Mr. Ohorilko stated their patience, vision, integrity, perspective, fairness and impeccable judgement have resulted in sound, thoughtful, consistent decisions, which have generated universal respect regardless of the outcome. He stated he recalls working through many of these decisions with the Commission members, and knows how difficult it must have been for them. After observing Commissioners Heinrich and Lamberti, Mr. Ohorilko noted that the answers to the most difficult questions can be found not by yielding to the most vocal individual or group but by applying the leadership traits previously mentioned when working and spending time with stakeholders and studying the issues at hand. He stated Commissioners Heinrich and Lamberti put in countless hours in meetings, meeting prep, deliberating, meeting with media, operators, non-profit license holders, other current and potential stakeholders, and the general public all while serving on other local boards in their respective communities in addition to careers. Mr. Ohorilko stated both are true examples of public servants, and he is honored to have worked for both of them. He expressed his gratitude for them taking a chance on him when they hired him to become the Administrator in 2012 upon the retirement of Jack Ketterer. He thanked them for their friendship and leadership on behalf of the Commission staff. He noted the Commission has a small token of appreciation, which hopefully will be presented at the July 9th Commission meeting.
Mr. Ehrecke, on behalf of all of the casinos, thanked Commissioners Heinrich and Lamberti for upholding the integrity of gaming every day, and their efforts in all the ways set forth by Mr. Ohorilko. He stated the Iowa Gaming Association has a recognition piece for each of them, and hope to be able to present that at the July meeting.
Dan Kehl, Chief Executive Officer of Elite Casinos, noted he has been attending meetings for 30 years, and the last nine with Commissioners Heinrich and Lamberti have been very interesting and the industry is very appreciative of their leadership and how they have helped the industry move forward with stability and foresight. He stated he has enjoyed conversations with both individuals and getting to know them on a personally, and has learned a lot from them.
Commissioner Lamberti stated it is difficult to have the last meeting be a telephonic meeting, but is appreciative of everyone’s comments. He stated he made the comment a month or so ago that as he looks back on his nine years on the Commission that he felt he had seen everything, but then the coronavirus hit and the casinos were shut down. He is now confident in saying he has seen everything in the world. He stated he had enjoyed his time on the Commission and the friendships.
Commissioner Heinrich thanked everyone for their comments. He stated it has been an extreme pleasure to serve on the Commission; but admitted he was apprehensive when he was first appointed as he didn’t have much knowledge of the industry. He expressed appreciation for the experience, but has also enjoyed meeting new people and creating new friendships.
Chair Kramer stated she feels bad this is their last meeting, but is hopeful the Commission will be able to meet in person in July.
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Commissioner Gonseth Cheers expressed her gratitude to Commissioners Heinrich and Lamberti for their guidance when she joined the Commission.
ADJOURN: As there was no further business to come before the Commission, Chair Kramer requested a motion to adjourn. Commissioner Gonseth Cheers so moved. Commissioner Heinrich seconded the motion, which carried unanimously.