NEW MEXICO GAMING CONTROL BOARD

One-Day Regular Board Meeting

January 16, 2008

 

MINUTES

 

The Board of Directors of the New Mexico Gaming Control Board (Board) conducted a one-day Regular Board meeting at Gaming Control Board Headquarters, 4900 Alameda Blvd. NE.  Chairman David Norvell called the meeting to order at approximately 9:00 a.m., on Wednesday, January 16, 2008.  Due notice was published in accordance with the Gaming Control Act and the New Mexico Gaming Control Board Open Meetings Resolution and Chairman David Norvell  declared a quorum.    Present were:  Commissioner Arnold Rael, Commissioner Don Dutton, Commissioner Demesia Padilla and Chairman David Norvell. Commissioner James Peterson was not present.  Executive Director John Monforte and General Counsel Frank Baca were also in attendance.

 

·             Approval of Agenda

Chairman Norvell presented the agenda for approval.  Executive Director Monforte noted there was one slight revision under Section C2e, Renewal Key Persons, Ahmad M. Mughni will move to C1i under New Key Persons.  Chairman Norvell entertained a motion to approve the agenda as amended:  D. Dutton.  Second:  A. Rael.   Vote: 4-0.  All voted in favor of the motion:  A. Rael, D. Dutton D. Norvell and D. Padilla.

 

1          Closed Executive Session.  Chairman Norvell entertained a motion to go into closed executive session until 1:30 p.m., for the purpose of discussing tribal matters, licensing matters, issuance of finding of suitability on key and affiliated persons, pending administrative and enforcement matters, pending and threatened litigation and limited personnel matters as enumerated in detail on the agenda. (Closed pursuant to section 10-15-1(H), NMSA 1978):  D. Padilla. Second:                                   A. Rael. Vote: 4-0.  A roll call vote was taken and all voted to go into closed executive session:  A. Rael, D. Dutton D. Norvell and D. Padilla.

 

2          On Wednesday January 16, 2008 at approximately 1:37 p.m., a motion was made to go back into open session: D. Padilla.  Second:  D. Dutton.   Vote: 4-0.  A roll call vote was taken and all voted in favor of the motion:  A. Rael, D. Dutton, D. Norvell and D. Padilla.  Chairman Norvell certified the only matters that were discussed in closed executive session were tribal matters, licensing matters, issuance of finding of suitability on key and affiliated persons, pending administrative and enforcement matters, pending and threatened litigation and limited personnel matters as enumerated in detail on the agenda.

 

3          Approval of Minutes.  Chairman Norvell presented the One Day Regular Board Meeting minutes of December 11, 2007 for approval: Commissioner Rael moved to approve the Board minutes as stated.  Second:  D. Dutton.  Vote:  4-0.  All voted in favor of the motion:  A. Rael, D. Dutton D. Norvell and D. Padilla.

 

4          Board Chairman Announcements.   

·         Swearing in of Audit Staff:  Craig S. Telle

·         Board Meeting Schedule:

February 20, 2008 – Sunland Park Racetrack & Casino, Sunland Park, NM

March 19, 2008 – Albuquerque, NM

April 15, 2008 – Albuquerque, NM

 

5          Pending Administrative and Enforcement Actions

 

·         Approval of Settlement Agreement; Loyal Order of Moose #2016.  Commissioner Padilla moved to approve the Settlement Agreement with the Loyal Order of Moose #2016 and Order to dismiss the complaint.  Second:  D. Dutton.  Vote:  4-0.  All voted in favor of the motion:  A. Rael, D. Dutton, D. Norvell and D. Padilla.

·         Approval of Settlement Agreement; Veterans of Foreign Wars #7686.  Commissioner Dutton moved to approve the Settlement Agreement with the Veterans of Foreign War #7686 and Order to dismiss the Complaint.  Second:  A. Rael.  Vote:  4-0.  All voted in favor of the motion:  A. Rael, D. Dutton, D. Norvell and D. Padilla.

·         Notice of Exclusion for Patricia Richards.  Commissioner Rael moved to accept the recommendation of staff to exclude Patricia Richards from all New Mexico Gaming Establishments and this notice be circulated pursuant to the rule and be posted on the website.  Second:  D. Padilla.  Vote:  4-0.  All voted in favor of the motion:  A. Rael, D. Dutton, D. Norvell and D. Padilla.

 

6         Licensing

1. New Application:

 

            American Veterans Post #14, Clovis, NM

 

·         Assistant Manager, Mildred Dorsey and Cashier, Mary Ellen Lovato were present to address the Board regarding this matter and requested to appear in closed executive session.  Chairman Norvell entertained a motion to go into closed executive session for the purpose of hearing from the applicants for American Veterans Post #14.  D. Dutton.  Second:  D. Padilla.  Vote:  4-0.  All voted in favor of the motion:  A. Rael, D. Dutton, D. Norvell and D. Padilla.  Commissioner Dutton moved to go back into open session.  Second:  A. Rael.  Vote:  4-0. All voted in favor of the motion:  A. Rael, D. Dutton, D. Norvell and D. Padilla.  Chairman Norvell certified the only matters that were discussed in closed executive session was the new application for American Veterans Post #14 who appeared by representatives in person and discussed the matter with the Board.  Commissioner Padilla moved to table the application until the next regularly scheduled Board meeting.  Second:  D. Dutton.  Vote:  4-0.  All voted in favor of the motion:  A. Rael, D. Dutton, D. Norvell and D. Padilla.

 

2. Renewals of Gaming Licenses for 2008

a.  American Legion Post #72 (Albuquerque, NM)

b.  Bally Gaming (Las Vegas, NV)

c.  IGT, Inc. (Las Vegas, NV)

d. Loyal Order of Moose #2152 (Artesia, NM)

e. My Way Holdings (Sunland Park, NM)

 

Commissioner Dutton read the renewals listed above and moved to grant the renewals of the gaming licenses for 2008 with no conditions.  Second:  A. Rael.  Vote:  4-0.  All voted in favor of the motion:  A. Rael, D. Dutton, D. Norvell and D. Padilla.

 

 

1. New Application

a.  M. Dewayne Glaze – Gaming Manager – American Veterans of   Foreign Wars #14 (Clovis, NM)

b. Mildred C. Dorsey – Assistant Gaming Manager – American Veterans of Foreign Wars #14 (Clovis, NM)

c. Christopher L. Pacheco – Gaming Accountant – American Veterans of Foreign Wars #14 (Clovis, NM)

d. Elizabeth M. Knight – Assistant Gaming Accountant – American Veterans of Foreign Wars #14 (Clovis, NM)

 

Commissioner Dutton read the four applications listed above for American Veterans of Foreign Wars #14 and moved to table these new application requests until the next regularly scheduled Board meeting.  Second:  D. Padilla.  Vote:  4-0.  All voted in favor of the motion:  A. Rael, D. Dutton, D. Norvell and D. Padilla.

 

Director John Monforte read the following remaining new applications for issuance of findings of suitability on key and affiliated persons:

e. Colin A. Pearman – Gaming Accountant – B.P.O. Elks #863 (Albuquerque, NM)   With Condition:  That the only duty permitted by Mr. Pearman is verification of daily gaming forms.

f. Philip C. Peckman, Outside Board Director – Shuffle Master, Inc. (Las Vegas, NV)

g. James D. Slagowski – Gaming Accountant & Quartermaster – Veterans of Foreign Wars post #3015 (Clovis, NM)

h. Georgene Knecht – Gaming Accountant – Veterans of Foreign Wars #7686 (Alamogordo, NM)

                        i.  Ahmad M. Mughni – Slot Manager – Zia Park, L.L.C. (Hobbs, NM)

 

Commissioner Rael moved to accept the findings of suitability on key and affiliated persons as read by Director John Monforte.  Second:  D. Dutton.  Vote:  4-0.  All voted in favor of the motion:  A. Rael, D. Dutton, D. Norvell and D. Padilla.

 

 

2.  Renewal Key Persons

a.   Cody R. Stinson – Manager – Aries Gaming, Inc. (Albuquerque, NM)

b.  Paul A. Montoya – Gaming Accountant – Fraternal Order of Police #3 (Santa Fe, NM)

c.  Rosalie Ortiz – Manager – New Mexico Gaming, L.L.C. (Albuquerque, NM)

d.  Vincent J. Aragona – Commander – Veterans of Foreign Wars #10124 (Las Cruces, NM)

 

Commissioner Padilla moved to accept the renewal key persons without conditions.  Second:  A. Rael.  Vote:  4-0.  All voted in favor of the motion:  A. Rael, D. Dutton, D. Norvell and D. Padilla.

           

3.      Key Person Title Changes

a.  Taurino J. Trevino – Gaming Manager – American Legion Post #7

 

Commissioner Dutton moved to grant the key person title change with regard to Taurino J. Trevino American Legion Post #7, Carlsbad, NM.  Second:  A. Rael.  Vote: 4-0.  All voted in favor of the motion:  A. Rael, D. Dutton, D. Norvell and D. Padilla.

 

 

 

7        Policy and Rulemaking Matters:

Frank Baca, General Counsel stated that a bingo policy meeting was scheduled to be held on Wednesday, January 30, 2008 at 1:30 p.m. at the Gaming Control Office and that a letter with a copy of the bingo policy regarding this meeting had been sent to all licensees and other interested persons.

 

8                    Public Comments.    

Dr. Guy Clark, Executive Director for the NM Coalition against Gambling and Chairman for the National Coalition against Legalized Gambling:  We would like to present some evidence and basically a formal complaint about and some accusations the need for growing consumer protection from outrageous behavior of gambling profiteers.  In February of 2007 the Ontario Lottery and Gaming Commission pulled 87 video lottery machines, they call them BLT’s or VGM’s video gaming machines because the machines had been programmed to produce subliminal perception, what they do with these machines is that every 2 seconds a 1/20th of a second message comes across the screen that says jackpot, that’s too fast to be picked up in the conscience mind but it’s slow enough for the unconscious mind to pick it up.  There has been some research recently in Norway that indicates that such subliminal messages actually change behavior.  Those machines were pulled they were produced of Konami and those of you that have slot machines might start looking at your manufacturer.   Konami protested that this was just an accident, that it was just a programming error by their computer designers.  These computers were being programmed to mislead and misrepresent the odds or the possibility of winning to the people that were playing those slot machines.  Konami manufacturers slot machines for casinos and other venues all over the world, there is at least one Tribal gambling venue in this State, Rt. 66 Casino has Konami gambling machines in it.   I’m sure that Isleta does as well and I wouldn’t be surprised that several of the other Tribal gambling and some of the racetrack casinos but it would be good to check because it’s obvious that they aren’t concerned about consumer protection, that they are more interested in gluing people to the machine, giving them a false representation of the outcome than they are in protecting consumers.  That’s one step and it’s just not Konami that we need to look at because all of the major slot machine manufacturers seem to at this time do some processes or build processes into slot machines that are called mapping and unbalanced reel, basically virtual unbalanced reel.  The most common mapping and unbalanced reel outcome that they do is near misses.  If a person plays a reel or some other type of slot machine that shows a certain outcome, maybe a cherry and bar but right above it or right below is a near miss that has an impact on the person and it’s been shown that many of these machines bring up these near misses 10 to 15 times more often than would occur if they were being generated randomly.  That’s not what the public expects the most graphic parallel to this is loaded dice in a craps game basically virtual unbalanced reels are to slot machine what loaded dice are to a craps game.  These processes are being used to deceive the public, the people playing those slot machines.  Last year there was a professor of cultural anthropology that came up to Santa Fe and made a presentation at the Indian School.  Her presentation was on “addiction by design”; she mentioned that in slot machine manufacturer the goal is to get the player to play more games per minute and to play a longer extended period of time.  With the old slot machines, the hand crank ones, the maximum for a really experienced player was about 300 an hour, with the push button it’s like 600 an hour some of them with the touch screen at 900.  There is a certain sort of zone  the industry calls it a playing zone where people get engaged to the degree that they lose contact with outside interferences or stimuli, time disappears, money, interpersonal relations disappear.  Some of the manufacturers talked to her about playing to extinction and its sort of a hideous sort of thought sort of addictive mechanisms that are brought to play.   Actually with unbalanced reels and mapping and subliminal perception with zoning the slot machine manufacturers have made the huge technological leap to develop about the most addictive machine that’s ever been developed by mankind.  The New Mexico Coalition against Gambling feels that the New Mexico Gaming Control Board has the responsibility to the public to protect against consumer fraud and deception; it’s without question that that sort of thing is going on with many if not all of the slot machines.  We would strongly recommend that you do some testing and that you bring measures into play to get rid of subliminal perception.  Like I say you have a manufacturer that has machines here in this state today and all of the manufacturers do mapping and virtual reels, they can be pressured to develop and to deliver.  People know they’re going to get cheated when they go to a casino but a least they don’t expect it to be unfair cheating this is just unfair so we would strongly recommend that.  I’m setting up an appointment with the attorney general, the attorney general also has the responsibility and he may be contacting you about what needs to be done to try to get more consumer protection built in.  There’s a major class action law suit going on in Ontario, Canada related to the unbalanced reels and the mapping and that I think is the forecast of things to come wouldn’t it be great if the New Mexico Gaming Control Board could lead the way in trying to protect its consumers from fraudulent gambling machines that would really be a spectacular and marvelous thing.  If I get an e-mail I can send you all the corroborating information that we’ve researched. 

Chairman Norvell asks for the e-mail address:  guy@clarks.com

Commissioner Dutton:  I would simply suggest that you go our web-site and you can contact our administrator that way and I think if you have some questions that our IT department can visit with you and tell you exactly what it is that we do so that we can ensure that there’s honesty and integrity in the gaming industry in New Mexico.

Mr. Clark:   That’s what we’re hoping to achieve.

Chairman Norvell:  Thank you Dr. Clark we appreciate you coming.

 

There were no further public comments.

 

9          Chairman Norvell entertained a motion to go into execution session for the purpose of hearing the Penn National Acquisition Presentation.  D. Sutton.  Second:  D. Padilla.  Vote:  4-0.  All voted in favor of the motion:  A. Rael, D. Dutton, D. Norvell and D. Padilla.  A motion was made to go back into open session: D. Padilla.  Second:  D. Dutton.   Vote: 4-0.  A roll call vote was taken and all voted in favor of the motion:  A. Rael, D. Dutton, D. Norvell and D. Padilla.  Chairman Norvell certified the only matters that were discussed in closed executive session was the presentation by Penn National.

 

 

10        Adjournment.  There being no other business to come before the Board, Chairman David Norvell entertained a motion to adjourn. A. Rael.   Second: D. Padilla.  Vote:  4-0.  All voted in favor of the motion:  A. Rael, D. Dutton, D. Norvell and D. Padilla.

 

                                               

/s/David Norvell, Esq.                                                                     Approved:  03-07-08

    Chairman